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Asset
Management
Plan
Township of Tehkummah
2023
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This Asset Management Program was prepared by:
Empowering your organization through advanced
asset management, budgeting & GIS solutions
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Key Statistics
Replacement cost of
asset portfolio
$196.8 million
Replacement cost of
infrastructure per
household
$534,711 (2021)
Percentage of assets in fair
or better condition
82%
Percentage of assets with
assessed condition data
-
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Table of Contents
Executive Summary .............................................................................. 1
Scope ..................................................................................................... 1
Findings .................................................................................................. 2
Recommendations .................................................................................... 3
1
Introduction & Context ..................................................................... 4
Tehkummah Community Profile .......................................................... 5
An Overview of Asset Management ...................................................... 6
Key Concepts in Asset Management ..................................................... 8
Ontario Regulation 588/17 ............................................................... 11
2
Scope and Methodology ................................................................. 13
Asset Categories Included in this AMP ................................................ 14
Deriving Replacement Costs ............................................................. 14
Estimated Useful Life and Service Life Remaining ................................. 15
Reinvestment Rate ......................................................................... 15
Deriving Asset Condition .................................................................. 16
3
Portfolio Overview ......................................................................... 17
Total Replacement Cost of Asset Portfolio ........................................... 18
Condition of Asset Portfolio .............................................................. 19
Service Life Remaining .................................................................... 20
Forecasted Capital Requirements ...................................................... 20
4
Analysis of Tax-funded Assets ......................................................... 21
Road Network ................................................................................ 22
Bridges & Culverts .......................................................................... 30
Storm Water Network ..................................................................... 36
Buildings ....................................................................................... 42
Vehicles ........................................................................................ 49
Machinery & Equipment ................................................................... 56
5
Analysis of Rate-funded Assets ........................................................ 64
Sewer & Water Network .................................................................. 65
6
Impacts of Growth ......................................................................... 73
Description of Growth Assumptions ................................................... 74
Impact of Growth on Lifecycle Activities ............................................. 75
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7
Appendices ................................................................................... 76
Appendix A: Infrastructure Report Card.............................................. 77
Appendix B: 10-Year Capital Requirements ......................................... 78
Appendix C: Level of Service Maps .................................................... 81
Appendix D: Risk Rating Criteria ....................................................... 82
Appendix E: Condition Assessment Guidelines ..................................... 83
1
Executive Summary
Municipal infrastructure provides the foundation for the economic, social,
and environmental health and growth of a community through the delivery
of critical services. The goal of asset management is to deliver an adequate
level of service in the most cost-effective manner. This involves the
development and implementation of asset management strategies and long-
term financial planning.
Scope
This AMP identifies the current practices and strategies that are in place to
manage public infrastructure and makes recommendations where they can
be further refined. Through the implementation of sound asset management
strategies, the Township can ensure that public infrastructure is managed to
support the sustainable delivery of municipal services.
This AMP include the following asset categories:
Asset Category
Road Network
Storm Water Network
Sewer Network
Vehicles
Bridges & Culverts
Water Network
Buildings
Machinery & Equipment
2
Findings
The overall replacement cost of the asset categories included in this AMP
totals $196.8 million. Based on asset age, 82% of all assets analysed in this
AMP are in fair or better condition and as assessed condition data was
unavailable - 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.
To meet capital replacement and rehabilitation needs for existing
infrastructure, prevent future infrastructure backlogs, and achieve long-term
sustainability, the Township's average annual capital requirement totals $3.7
million.
It is important to note that this AMP represents a snapshot in time and is
based on the best available processes, data, and information at the
Township. Strategic asset management planning is an ongoing and dynamic
process that requires continuous improvement and dedicated resources.
With the development of this AMP the Town has achieved
compliance with O. Reg. 588/17 to the extent of the
requirements that must be completed by July 1, 2022. There
are additional requirements concerning proposed levels of
service and growth that must be met by July 1, 2024 and
2025.
3
Recommendations
Recommendations to guide continuous refinement of the Township's asset
management program. These include:
- Review data to update and maintain a complete and accurate dataset
- Develop a condition assessment strategy with a regular schedule
- Review and update lifecycle management strategies
- Development and regularly review short- and long-term plans to meet
capital requirements
- Measure current levels of service and identify sustainable proposed
levels of service
4
Key Insights
1 Introduction & Context
- The Township of Tehkummah is a single-tier municipality
located on the southern portion of Manitoulin Island within the
District of Manitoulin, Ontario
- The goal of asset management is to minimize the lifecycle
costs of delivering infrastructure services, manage the
associated risks, while maximizing the value ratepayers receive
from the asset portfolio
- The Township's asset management policy provides clear
direction to staff on their roles and responsibilities regarding
asset management
- An asset management plan is a living document that should be
updated regularly to inform long-term planning
- Ontario Regulation 588/17 outlines several key milestone and
requirements for asset management plans in Ontario between
July 1, 2022 and 2025
5
Tehkummah Community Profile
Census Characteristic
Township of Tehkummah
Ontario
Population 2021
450
14,223,942
Population Change 2016-2021
3.2
5.8
Total Private Dwellings
368
5,929,250
Population Density
3.4/km2
15.9/km2
Land Area
131.70 km2
892,411.76 km2
The Township of Tehkummah is a single-tier municipality located on the southern
portion of Manitoulin Island within the District of Manitoulin, Ontario. Established in
1881, the Township encompasses an area of approximately 132 km² and had a
recorded population of 450 residents in the 2021 Census. This results in a low
population density of roughly 3.4 persons per square kilometre, reflecting its
predominantly rural character.
The Township includes several small communities, with South Baymouth serving as
a key settlement. South Baymouth is the northern ferry terminal for the MS Chi-
Cheemaun, which connects Manitoulin Island to the Bruce Peninsula, making it an
important transportation link for both residents and visitors. The community of
Tehkummah hosts the municipal office, community hall, and public library, serving
as the administrative centre. The Township also contains the former mill town of
Michael's Bay and the historic site of Snowville, which today are largely
unpopulated but remain part of its geographic footprint.
Demographically, Tehkummah has an aging population, with a significant
proportion of residents over the age of 55. Median household incomes are below
provincial averages, though housing costs are comparatively lower, contributing to
long-term affordability. These demographic and economic characteristics influence
demand for municipal services and the long-term sustainability of infrastructure
investments.
The Township's economy is supported by seasonal tourism, agriculture, and small-
scale service activities. Tourism is concentrated in South Baymouth during the ferry
operating season, which increases temporary demand on roads, water, and
emergency services. Agricultural activity and rural residential uses are more
dispersed throughout the Township.
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Municipal services are limited, with residents relying on nearby communities for
higher-order healthcare, education, and commercial amenities. The Township
maintains core infrastructure such as roads, bridges, culverts, water systems, and
community facilities. A volunteer fire department provides local emergency
response, supported by regional partnerships when required.
Tehkummah's natural environment also plays an important role in shaping
infrastructure needs. The Township is traversed by the Manitou River and Blue Jay
Creek, both of which have been the focus of rehabilitation efforts to maintain
ecological health. Rural roads, culverts, and drainage infrastructure are particularly
important in this context, as they support both daily transportation needs and
environmental stewardship.
An Overview of Asset Management
Municipalities are responsible for managing and maintaining a broad portfolio of
infrastructure assets to deliver services to the community. The goal of asset
management is to minimize the lifecycle costs of delivering infrastructure services,
manage the associated risks, while maximizing the value ratepayers receive from
the asset portfolio.
The acquisition of capital assets accounts for only 10-20% of their total cost of
ownership. The remaining 80-90% derives from operations and maintenance. This
AMP focuses its analysis on the capital costs to maintain, rehabilitate and replace
existing municipal infrastructure assets.
These costs can span decades, requiring planning and foresight to ensure financial
responsibility is spread equitably across generations. An asset management plan is
critical to this planning, and an essential element of broader asset management
program. The industry-standard approach and sequence to developing a practical
asset management program begins with a Strategic Plan, followed by an Asset
Management Policy and an Asset Management Strategy, concluding with an Asset
Management Plan.
Build
20%
Operate, Maintain, and Dispose
80%
Total Cost of Ownership
7
This industry standard, defined by the Institute of Asset Management (IAM),
emphasizes the alignment between the corporate strategic plan and various asset
management documents. The strategic plan has a direct, and cascading impact on
asset management planning and reporting.
1.2.1
Asset Management Policy
An asset management policy represents a statement of the principles guiding the
Township's approach to asset management activities. It aligns with the
organizational strategic plan and provides clear direction to Township staff on their
roles and responsibilities as part of the asset management program.
The Township adopted its Strategic Asset Management Policy in 2019 in accordance
with Ontario Regulation 588/17. The objectives of the policy include:
-
Prioritizing the need for existing and future assets to effectively deliver
services
-
Supporting sustainability and economic development
-
Maintaining prudent financial planning and decision making
1.2.2
Asset Management Strategy
An asset management strategy outlines the translation of organizational objectives
into asset management objectives and provides a strategic overview of the
activities required to meet these objectives. It provides greater detail than the
policy on how the Township plans to achieve asset management objectives through
planned activities and decision-making criteria.
The Township's Strategic Asset Management Policy contains many of the key
components of an asset management strategy and may be expanded on in future
revisions or as part of a separate strategic document.
1.2.3
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the Township's asset
management program and identifies the resource requirements needed to achieve a
defined level of service. The AMP typically includes the following content:
-
State of Infrastructure
-
Asset Management Strategies
-
Levels of Service
-
Financial Strategies
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The AMP is a living document that should be updated regularly as additional asset
and financial data becomes available. This will allow the Township to re-evaluate
the state of infrastructure and identify how the organization's asset management
and financial strategies are progressing.
Key Concepts in Asset Management
Effective asset management integrates several key components, including lifecycle
management, risk management, and levels of service. These concepts are applied
throughout this asset management plan and are described below in greater detail.
1.3.1
Lifecycle Management Strategies
The condition or performance of most assets will deteriorate over time. This process
is affected by a range of factors including an asset's characteristics, location,
utilization, maintenance history and environment. Asset deterioration has a
negative effect on the ability of an asset to fulfill its intended function, and may be
characterized by increased cost, risk and even service disruption.
To ensure that Township assets are performing as expected and meeting the needs
of customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
There are several field intervention activities that are available to extend the life of
an asset. These activities can be generally placed into one of three categories:
maintenance, rehabilitation and replacement. The following table provides a
description of each type of activity and the general difference in cost.
Lifecycle
Activity
Description
Example
(Roads)
Cost
Maintenance
Activities that prevent defects or
deteriorations from occurring
Crack Seal
$
Rehabilitation/
Renewal
Activities that rectify defects or
deficiencies that are already
present and may be affecting
asset performance
Mill & Re-
surface
$$
Replacement/
Reconstruction
Asset end-of-life activities that
often involve the complete
replacement of assets
Full
Reconstruction
$$$
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Depending on initial lifecycle management strategies, asset performance can be
sustained through a combination of maintenance and rehabilitation, but at some
point, replacement is required. Understanding what effect these activities will have
on the lifecycle of an asset, and their cost, will enable staff to make better
recommendations.
The Township's approach to lifecycle management is described within each asset
category outlined in this AMP. Developing and implementing a proactive lifecycle
strategy will help staff to determine which activities to perform on an asset and
when they should be performed to maximize useful life at the lowest total cost of
ownership.
1.3.2
Risk Management Strategies
Municipalities generally take a 'worst-first' approach to infrastructure spending.
Rather than prioritizing assets based on their importance to service delivery, assets
in the worst condition are fixed first, regardless of their criticality. However, not all
assets are created equal. Some are more important than others, and their failure or
disrepair poses more risk to the community than that of others. For example, a
road with a high volume of traffic that provides access to critical services poses a
higher risk than a low volume rural road. These high-value assets should receive
funding before others.
By identifying the various impacts of asset failure and the likelihood that it will fail,
risk management strategies can identify critical assets, and determine where
maintenance efforts, and spending, should be focused.
This AMP includes a high-level evaluation of asset risk and criticality. Each asset has
been assigned a probability of failure score and consequence of failure score based
on available asset data. These risk scores can be used to prioritize maintenance,
rehabilitation and replacement strategies for critical assets.
1.3.3
Levels of Service
A level of service (LOS) is a measure of what the Township is providing to the
community and the nature and quality of that service. Within each asset category in
this AMP, technical metrics and qualitative descriptions that measure both technical
and community levels of service have been established and measured as data is
available.
These measures include a combination of those that have been outlined in O. Reg.
588/17 in addition to performance measures identified by the Township as worth
measuring and evaluating. The Township measures the level of service provided at
two levels: Community Levels of Service, and Technical Levels of Service.
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Community Levels of Service
Community levels of service are a simple, plain language description or measure of
the service that the community receives. For core asset categories (roads, bridges
and culverts, water, wastewater, storm water) the Province, through O. Reg.
588/17, has provided qualitative descriptions that are required to be included in
this AMP. For non-core asset categories, the Township has determined the
qualitative descriptions that will be used to determine the community level of
service provided. These descriptions can be found in the Levels of Service
subsection within each asset category.
Technical Levels of Service
Technical levels of service are a measure of key technical attributes of the service
being provided to the community. These include mostly quantitative measures and
tend to reflect the impact of the Township's asset management strategies on the
physical condition of assets or the quality/capacity of the services they provide.
For core asset categories (roads, bridges and culverts, water, wastewater, storm
water) the Province, through O. Reg. 588/17, has provided technical metrics that
are required to be included in this AMP. For non-core asset categories, the
Township has determined the technical metrics that will be used to determine the
technical level of service provided. These metrics can be found in the Levels of
Service subsection within each asset category.
Current and Proposed Levels of Service
This AMP focuses on measuring the current level of service provided to the
community. Once current levels of service have been measured, the Township plans
to establish proposed levels of service over a 10-year period, in accordance with O.
Reg. 588/17.
Proposed levels of service should be realistic and achievable within the timeframe
outlined by the Township. They should also be determined with consideration of a
variety of community expectations, fiscal capacity, regulatory requirements,
corporate goals and long-term sustainability. Once proposed levels of service have
been established, and prior to July 2025, the Township must identify a lifecycle
management and financial strategy which allows these targets to be achieved.
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Ontario Regulation 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario
government introduced Regulation 588/17 - Asset Management Planning for
Municipal Infrastructure (O. Reg 588/17). Along with creating better performing
organizations, more liveable and sustainable communities, the regulation is a key,
mandated driver of asset management planning and reporting. It places substantial
emphasis on current and proposed levels of service and the lifecycle costs incurred
in delivering them.
The diagram below outlines key reporting requirements under O. Reg 588/17 and
the associated timelines.
Strategic Asset Management
Policy
Asset Management Plan for Core
Assets with the following
components:
1. Current levels of service
2. Inventory analysis
3. Lifecycle activities to
sustain LOS
4. Cost of lifecycle activities
5. Population and employment
forecasts
6. Discussion of growth
impacts
Asset Management Plan for All
Assets with the following
additional components:
1. Proposed levels of service
for next 10 years
2. Updated inventory analysis
3. Lifecycle management
strategy
4. Financial strategy and
addressing shortfalls
5. Discussion of how growth
assumptions impacted
lifecycle and financial
Asset Management Plan for Core and
Non-Core Assets (same components
as 2022) and Asset Management
Policy Update
2019
2024
2022
2025
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1.4.1
O. Reg. 588/17 Compliance Review
The following table identifies the requirements outlined in Ontario Regulation
588/17 for municipalities to meet by July 1, 2022. Next to each requirement a page
or section reference is included in addition to any necessary commentary.
Requirement
O. Reg.
Section
AMP
Section
Reference
Status
Summary of assets in each
category
S.5(2), 3(i)
4.1.1 - 5.1.1
Complete
Replacement cost of assets in each
category
S.5(2), 3(ii)
4.1.1 - 5.1.1
Complete
Average age of assets in each
category
S.5(2), 3(iii)
4.1.3 - 5.1.3
Complete
Condition of core assets in each
category
S.5(2), 3(iv)
4.1.2 - 5.1.2
Complete
Description of municipality's
approach to assessing the
condition of assets in each
category
S.5(2), 3(v)
4.1.2 - 5.1.2
Complete
Current levels of service in each
category
S.5(2), 1(i-ii)
4.1.5 - 5.1.5
Complete for
Core Assets
Only
Current performance measures in
each category
S.5(2), 2
4.1.5 - 5.1.5
Complete for
Core Assets
Only
Lifecycle activities needed to
maintain current levels of service
for 10 years
S.5(2), 4
4.1.3 - 5.1.3
Complete
Costs of providing lifecycle
activities for 10 years
S.5(2), 4
Appendix B
Complete
Growth assumptions
S.5(2), 5(i-ii)
S.5(2), 6(i-
vi)
6.1 - 6.2
Complete
13
Key Insights
2 Scope and Methodology
- This asset management plan is divided between tax-funded
and rate-funded categories
- The source and recency of replacement costs impacts the
accuracy and reliability of asset portfolio valuation
- Accurate and reliable condition data helps to prevent
premature and costly rehabilitation or replacement and
ensures that lifecycle activities occur at the right time to
maximize asset value and useful life
14
Asset Categories Included in this
AMP
This asset management plan for the Township of Tehkummah is produced in
compliance with Ontario Regulation 588/17. The July 2022 deadline under the
regulation--the first of three AMPs--requires analysis of only core assets (roads,
bridges and culverts, water, wastewater, and storm water).
The AMP summarizes the state of the infrastructure for the Township's asset
portfolio, establishes current levels of service and the associated technical and
customer oriented key performance indicators (KPIs), outlines lifecycle strategies
for optimal asset management and performance, and provides financial strategies
to reach sustainability for the asset categories listed below.
Asset Category
Source of Funding
Road Network
Tax Levy
Bridges & Culverts
Storm Water Network
Buildings
Vehicles
Machinery & Equipment
Sewer & Water Network
User Rates
Deriving Replacement Costs
There are a range of methods to determine the replacement cost of an asset, and
some are more accurate and reliable than others. This AMP relies on two
methodologies:
-
User-Defined Cost and Cost/Unit: Based on costs provided by municipal
staff which could include average costs from recent contracts; data from
engineering reports and assessments; staff estimates based on knowledge
and experience
-
Cost Inflation/CPI Tables: Historical cost of the asset is inflated based on
Consumer Price Index or Non-Residential Building Construction Price Index
User-defined costs based on reliable sources are a reasonably accurate and reliable
way to determine asset replacement costs. Cost inflation is typically used in the
absence of reliable replacement cost data. It is a reliable method for recently
15
purchased and/or constructed assets where the total cost is reflective of the actual
costs that the Township incurred. As assets age, and new products and
technologies become available, cost inflation becomes a less reliable method.
Estimated Useful Life and Service
Life Remaining
The estimated useful life (EUL) of an asset is the period over which the Township
expects the asset to be available for use and remain in service before requiring
replacement or disposal. The EUL for each asset in this AMP was assigned according
to the knowledge and expertise of municipal staff and supplemented by existing
industry standards when necessary.
By using an asset's in-service data and its EUL, the Township can determine the
service life remaining (SLR) for each asset. Using condition data and the asset's
SLR, the Township can more accurately forecast when it will require replacement.
The SLR is calculated as follows:
𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐿𝑖𝑓𝑒 𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 (𝑆𝐿𝑅) = 𝐼𝑛 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐷𝑎𝑡𝑒+ 𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒(𝐸𝑈𝐿) −𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑌𝑒𝑎𝑟
Reinvestment Rate
As assets age and deteriorate they require additional investment to maintain a
state of good repair. The reinvestment of capital funds, through asset renewal or
replacement, is necessary to sustain an adequate level of service. The reinvestment
rate is a measurement of available or required funding relative to the total
replacement cost.
By comparing the actual vs. target reinvestment rate the Township can determine
the extent of any existing funding gap. The reinvestment rate is calculated as
follows:
𝑇𝑎𝑟𝑔𝑒𝑡 𝑅𝑒𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒= 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑚𝑒𝑛𝑡
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡
𝐴𝑐𝑡𝑢𝑎𝑙 𝑅𝑒𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒= 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐹𝑢𝑛𝑑𝑖𝑛𝑔
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡
16
Deriving Asset Condition
An incomplete or limited understanding of asset condition can mislead long-term
planning and decision-making. Accurate and reliable condition data helps to prevent
premature and costly rehabilitation or replacement and ensures that lifecycle
activities occur at the right time to maximize asset value and useful life.
A condition assessment rating system provides a standardized descriptive
framework that allows comparative benchmarking across the Township's asset
portfolio. The table below outlines the condition rating system used in this AMP to
determine asset condition. This rating system is aligned with the Canadian Core
Public Infrastructure Survey which is used to develop the Canadian Infrastructure
Report Card. When assessed condition data is not available, service life remaining is
used to approximate asset condition.
Condition
Description
Criteria
Service
Life
Remaining
(%)
Very Good
Fit for the
future
Well maintained, good condition, new
or recently rehabilitated
80-100
Good
Adequate for
now
Acceptable, generally approaching
mid-stage of expected service life
60-80
Fair
Requires
attention
Signs of deterioration, some
elements exhibit significant
deficiencies
40-60
Poor
Increasing
potential of
affecting
service
Approaching end of service life,
condition below standard, large
portion of system exhibits significant
deterioration
20-40
Very Poor
Unfit for
sustained
service
Near or beyond expected service life,
widespread signs of advanced
deterioration, some assets may be
unusable
0-20
The analysis in this AMP is based on assessed condition data only as available. In
the absence of assessed condition data, asset age is used as a proxy to determine
asset condition. Appendix E includes additional information on the role of asset
condition data and provides basic guidelines for the development of a condition
assessment program.
17
Key Insights
3 Portfolio Overview
- The total replacement cost of the Township's asset portfolio is
$196.8 million
- 82% of all assets are in fair or better condition
- Average annual capital requirements total $3.7 million per year
across all assets
18
Total Replacement Cost of Asset
Portfolio
The asset categories analyzed in this AMP have a total replacement cost of $196.8
million based on inventory data from 2021. This total was determined based on a
combination of user-defined costs and historical cost inflation. This estimate reflects
replacement of historical assets with similar, not necessarily identical, assets
available for procurement today.
The following table identifies the methods employed to determine replacement
costs across each asset category:
$118.3m
$62.0m
$10.1m
$3.7m
$2.1m
$489k
$159k
$0
$40m
$80m
$120m
Road Network
Buildings
Sewer & Water Networks
Bridges & Culverts
Vehicles
Machinery & Equipment
Storm Water Network
Total Current Replacement Cost: $196,773,573
Road Network,
$118,302,731,
60%
Buildings,
$61,974,025,
32%
Sewer & Water Networks,
$10,093,343, 5%
Bridges & Culverts,
$3,693,362, 2%
Vehicles, $2,062,562, 1%
Machinery & Equipment,
$488,756, <1%
Storm Water Network,
$158,793, <1%
19
Asset Category
Notes
Road Network
CPI inflation of 2016 AMP replacement cost
values
Bridges & Culverts
CPI inflation of 2016 AMP replacement cost
values
Storm Water Network
CPI inflation of historical data
Buildings
CPI inflation of 2016 AMP replacement cost
values
Vehicles
CPI inflation of 2016 AMP replacement cost
values
Machinery & Equipment
CPI inflation of historical data
Sewer & Water Networks
CPI inflation of historical data
Condition of Asset Portfolio
The current condition of the assets is central to all asset management planning.
Collectively, 82% of assets in Tehkummah are in fair or better condition. This
estimate relies solely on age-based condition data.
While age can be 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.
$95.1m
$3.7m
$226k
$21k
$1.9m
$94k
$895k
$67k
$58.1m
$289k
$15k
$53k
$312k
$67k
$278k
$23.2m
$18k
$1.4m
$39k
$875k
$10.1m
0%
25%
50%
75%
100%
Road Network
Bridges &
Culverts
Storm Water
Network
Buildings
Machinery &
Equipment
Vehicles
Sewer & Water
Networks
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
20
Service Life Remaining
Capital requirements over the next 10 years are identified in Appendix B.
Forecasted Capital Requirements
The development of a long-term capital forecast should include both asset
rehabilitation and replacement requirements. With the development of asset-
specific lifecycle strategies that include the timing and cost of future capital events,
the Township can produce an accurate long-term capital forecast. The following
graph identifies capital requirements over the next 75 years. This projection is used
as it ensures that every asset has gone through one full iteration of replacement.
The forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
$35.4m
$607k $1.1m$1.7m$1.4m
$59.7m
$11.2m
$1.5m$3.0m$5.3m
$1.1m
$36.0m
$1.1m$1.7m$1.4m
$154.8m
$18.5m
$0
$20m
$40m
$60m
$80m
$100m
$120m
$140m
$160m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
Forecasted Capital Replacements
Road Network
Bridges & Culverts
Storm Water Network
Buildings
Machinery & Equipment
Vehicles
Sewer & Water Networks
5-Year Capital Requirement
21
\
Key Insights
4 Analysis of Tax-funded
Assets
- Tax-funded assets are valued at $186.7 million
- 86% of tax-funded assets are in fair or better condition
- The average annual capital requirement to sustain the current
level of service for tax-funded assets is approximately $3.3
million
- Critical assets should be evaluated to determine appropriate
risk mitigation activities and treatment options
22
Road Network
The road network is a critical component of the provision of safe and efficient
transportation services and represents the highest value asset category in the
Township's asset portfolio.
4.1.1
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's road network inventory.
Asset Segment
Quantity
Replacement
Cost
Annual Capital
Requirement
Surfaces
76 km
$118,303,000
$1,732,000
Total
$118,303,000
$1,732,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.1.2
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost.
Age data is currently unavailable. Compiling age data from records may be a
consideration for the next iteration of the AMP.
Asset Segment
Estimated
Useful Life
(Years)
Average Age
(Years)
Average
Condition
Surfaces
50
TBD
78% (Good)
Average
TBD
78% (Good)
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
23
To ensure that the Township's road network continues to provide an acceptable
level of service, the Township should monitor the average condition of all assets. If
the average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation, and
replacement activities is required to increase the overall condition of the roads.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
-
Roads are vital for transportation and economic activity and are assessed
informally throughout the daily activity of Township staff. Any issues
identified during these daily assessments are documented for attention.
-
Regular maintenance, like resurfacing and patching, can extend road life and
reduce costs. Integrated planning can ensure that underground utilities are
repaired at the same time as roadwork, minimizing disruption and making
efficient use of resources.
In this AMP the following rating criteria is used to determine the current condition of
road segments and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
$95.1m
$23.2m
0%
25%
50%
75%
100%
Surfaces
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
24
4.1.3
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. The life
expectancy of paved roadways is influenced by the design and quality of materials,
construction practices, traffic volumes, and local environmental conditions.
Typically, surface-treated roads have a lifespan of about 10 years. Gravel and earth
roads typically have a lifespan of 60 to 75 years, provided they are regularly
maintained. Maintenance activities like grading, ditching, and adding gravel are
essential to preserve road quality.
Surface treated road projects or gravel road upgrades often present opportunities
to coordinate the renewal or replacement of underground utilities such as water and
sewer lines, storm drains, and utility conduits (hydro, gas, and
telecommunications). This integrated approach minimizes future disruptions and
maximizes cost efficiency.
The condition of paved roads can be assessed using the Pavement Condition Index
(PCI), a scale from 0 (impassable) to 10 (excellent). Roads with a PCI of 5 typically
require resurfacing, while those rated between 3 and 5 may need rehabilitation.
Roads rated below 3 generally require full reconstruction. The Gravel Condition
Index (GCI), rated from 0 to 100, can be used to assess road conditions. Roads
with a GCI of 5 or below may require rehabilitation or reconstruction to restore
acceptable service levels.
The Township should consider implementing a formalized assessment program
which could then be used in conjunction with the following rehabilitation and
replacement strategies.
The Township could employ a variety of strategies based on road classification,
condition, and cost-effectiveness:
-
Full pavement reconstruction with 80mm-120mm of hot mix asphalt (HMA)
-
Milling and resurfacing with 50mm-75mm of HMA
-
Surface treatment and crack sealing to extend life
-
Pulverizing deteriorated pavement and resurfacing
-
Spot repairs for localized defects
For gravel roads, options include replacing the upper gravel layer (50mm-100mm)
or full reconstruction of the granular base and surface, depending on the severity of
deterioration.
Delays in pavement rehabilitation can accelerate deterioration, leading to higher
long-term repair costs and reduced service levels, increasing risks to road users
and potential liability for the Township. Failure to maintain gravel roads can lead to
25
rapid degradation, higher maintenance costs, and a drop in service quality,
increasing the risk of unsafe driving conditions.
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 75 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
It should be noted that data confidence in the current inventory is low and should
be a primary focus for the next iteration of the Township's AMP.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
$23.2m
$23.2m
$95.1m
$8.7m
$0
$10m
$20m
$30m
$40m
$50m
$60m
$70m
$80m
$90m
$100m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
2073-
2077
2078-
2082
2083-
2087
2088-
2092
2093-
2097
Forecasted Capital Replacements
Surfaces
5-year Capital Requirement
26
4.1.4
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2021 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that Township staff utilize to define and prioritize the
criticality of the road network are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
27
4.1.5
Levels of Service
The following tables identify the Township's current level of service for the road
network. These metrics include the technical and community level of service
metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the road network.
Service
Attribute
Qualitative
Description
Current LOS (2021)
Scope
Description, which
may include maps,
of the road network
in the municipality
and its level of
connectivity
See Appendix C
Quality
Description or
images that
illustrate the
different levels of
road class
pavement condition
The condition of paved roads can be assessed
using the Pavement Condition Index (PCI), a
scale from 0 (impassable) to 10 (excellent).
Roads with a PCI of 5 typically require
resurfacing, while those rated between 3 and 5
may need rehabilitation. Roads rated below 3
generally require full reconstruction.
The Gravel Condition Index (GCI), rated from 0
to 100, can be used to assess road conditions.
Roads with a GCI of 5 or below may require
rehabilitation or reconstruction to restore
acceptable service levels.
28
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the road network.
Service
Attribute
Technical Metric
Current LOS
(2021)
Scope
Lane-km of arterial roads (MMS classes 1 and 2)
per land area (km/km2)
TBD
Lane-km of collector roads (MMS classes 3 and 4)
per land area (km/km2)
TBD
Lane-km of local roads (MMS classes 5 and 6) per
land area (km/km2)
TBD
Quality
Average pavement condition index for paved
roads in the municipality
TBD
Average surface condition for unpaved roads in
the municipality (e.g. excellent, good, fair, poor)
TBD
Performance
Capital reinvestment rate
1.87%
Currently, the Township's inventory does not differentiate between surface types.
This means the average condition of 78% is for all road surface assets.
29
4.1.6
Recommendations
Asset Inventory
-
Review the inventory to determine whether all Township road network assets
have been accounted for.
-
Work towards documenting road surface types and gathering updated
replacement costs from any recent projects or tenders.
Condition Assessment Strategies
-
Consider completing a comprehensive condition assessment of all roads
within the next 1-2 years.
Lifecycle Management Strategies
-
Implement the identified lifecycle management strategies where possible to
realize potential cost avoidance and maintain a high quality of road condition.
-
Evaluate the efficacy of the Township's lifecycle management strategies at
regular intervals to determine the impact cost, condition and risk.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Township believes to
provide meaningful and reliable inputs into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
30
Bridges & Culverts
Bridges and culverts represent a critical portion of the transportation services
provided to the community.
4.2.1
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's bridges and culverts
inventory.
Asset
Segment
Quantity
Replacement Cost
Annual Capital
Requirement
Bridges
1
$3,693,000
$74,000
Total
$3,693,000
$74,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.2.2
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average Condition
Bridges
50
9
86% (Very Good)
Average
9
86% (Very Good)
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
$3.7m
0%
25%
50%
75%
100%
Bridges
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
31
To ensure that the Township's Bridges & Culverts continue to provide an acceptable
level of service, the Township should monitor the average condition of all assets. If
the average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation, and
replacement activities is required to increase the overall condition of the bridges
and culverts.
Each asset's Estimated Useful Life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
-
Bi-annual visual inspections are conducted, and if necessary, detailed bridge
condition surveys are performed to more accurately assess the conditions
-
Bridge components are individually assessed to document the severity,
degree of deterioration, and overall condition
In this AMP, the following rating criteria is used to determine the current condition
of bridges and culverts and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
4.2.3
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
Bridges and culverts have life spans of 40 to 75 years, depending on construction
materials and environmental exposure. Newer concrete structures generally last up
to 75 years, while older or steel structures may have shorter service lives. These
32
assets are typically rehabilitated independently but may be coordinated with
roadwork, such as widening or resurfacing projects, to enhance cost-effectiveness.
Bridge assessments focus on safety, service level, and structural condition, with
visual inspections conducted every two years. Each bridge receives a Bridge
Condition Index (BCI) score to determine priority.
Standard strategies that could be implemented include resurfacing asphalt decks
around 15 years of age, patching and waterproofing decks at 30 years, and full
deck replacement at 50 years, depending on inspection results. Failure to maintain
bridges and culverts can compromise public safety and reduce service levels,
potentially resulting in costly emergency repairs.
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 45 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
It should be noted that data confidence in the current inventory is low and should
be a primary focus for the next iteration of the Township's AMP.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
$3.7m
$369k
$0
$1m
$2m
$3m
$4m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
Forecasted Capital Replacements
Bridges
5-year Capital Requirement
33
4.2.4
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2021 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that Township staff utilize to define and prioritize the
criticality of bridges and culverts are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
4.2.5
Levels of Service
The following tables identify the Township's current level of service for bridges and
culverts. These metrics include the technical and community level of service metrics
34
that are required as part of O. Reg. 588/17 as well as any additional performance
measures that the Township has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by bridges and culverts.
Service
Attribute
Qualitative Description
Current LOS (2021)
Scope
Description of the traffic that is supported by
municipal bridges (e.g. heavy transport
vehicles, motor vehicles, emergency vehicles,
pedestrians, cyclists)
TBD
Quality
Description or images of the condition of
bridges and culverts and how this would
affect use of the bridges and culverts
The bridge is
currently in very good
condition which will
not negatively impact
its use
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by bridges and culverts.
Service
Attribute
Technical Metric
Current
LOS (2021)
Scope
% of bridges in the Township with loading or
dimensional restrictions
TBD
Quality
Average bridge condition index value for bridges in the
Township
86%
Average bridge condition index value for structural
culverts in the Township
N/A
35
4.2.6
Recommendations
Data Review/Validation
-
Continue to review and validate inventory data, assessed condition data and
replacement costs for all bridges and structural culverts upon the completion
of OSIM inspections every 2 years.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Lifecycle Management Strategies
-
This AMP only includes capital costs associated with the reconstruction of
bridges and culverts. The Township should work towards identifying
projected capital rehabilitation and renewal costs for bridges and culverts and
integrating these costs into long-term planning. Consider implementing the
life cycle strategies outlined within this AMP.
Levels of Service
-
Continue to measure current levels of service in accordance with the metrics
identified in O. Reg. 588/17 and those metrics that the Township believe to
provide meaningful and reliable inputs into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
36
Storm Water Network
4.3.1
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's storm water network
inventory.
Asset Segment
Quantity
Replacement
Cost
Annual Capital
Requirement
Drains
26 km
$159,000
$3,000
Total
$159,000
$3,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.3.2
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost.
Asset Segment
Estimated
Useful Life
(Years)
Average Age
(Years)
Average
Condition
Drains
50
30.5
41% (Fair)
Average
30.5
41% (Fair)
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Township's storm water network continues to provide an
acceptable level of service, the Township should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
$21k
$67k
$53k
$18k
0%
25%
50%
75%
100%
Drains
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
37
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the storm water network.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
-
Municipal drains are reviewed based on useful life and visual inspections,
with adjustments made as new data becomes available.
In this AMP the following rating criteria is used to determine the current condition of
road segments and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
4.3.3
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
Stormwater infrastructure, including manholes and trunk sewers, can generally
have a service life of 30 to 100 years. With proper maintenance, stormwater ponds
and treatment structures can extend their operational lifespan to 75 years, ensuring
effective stormwater management. Stormwater upgrades should be aligned with
roadwork and other utility replacements (such as water, wastewater, hydro, and
telecommunications) to optimize project costs and minimize disruption.
Condition assessments should involve CCTV inspections to identify deterioration,
blockages, or structural issues. Climate change impacts, such as more frequent and
38
intense storms, should also be increasingly factored into planning. Assessments are
recommended every 20 years or as needed when failures occur.
The current strategy is reactive replacement deteriorated or collapsed pipes,
although minor repairs may also be feasible depending on inspection results. While
stormwater failures are typically less disruptive than sanitary sewer failures, they
can still lead to flooding, property damage, and reduced flow capacity. Ongoing
maintenance is vital to preserve system performance.
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 35 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
It should be noted that data confidence in the current inventory is low and should
be a primary focus for the next iteration of the Township's AMP.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
$13k
$19k
$38k
$58k
$10k
$21k
$16k
$0
$20k
$40k
$60k
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
Forecasted Capital Replacements
Drains
5-year Capital Requirement
39
4.3.4
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2021 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that Township staff utilize to define and prioritize the
criticality of the storm water network are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
40
4.3.5
Levels of Service
The following tables identify the Township's current level of service for the storm
water network. These metrics include the technical and community level of service
metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the storm water network.
Service
Attribute
Qualitative Description
Current LOS (2021)
Scope
Description, which may include map, 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 system
TBD
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the storm water network.
Service
Attribute
Technical Metric
Current LOS
(2021)
Scope
% of properties in municipality resilient to a
100-year storm
TBD1
% of the municipal storm water management
system resilient to a 5-year storm
TBD%1
1 The Township 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.
41
4.3.6
Recommendations
Asset Inventory
-
The Township's storm water network inventory remains at a basic level of
maturity and staff do not have a high level of confidence in its accuracy or
reliability. The development of a comprehensive inventory of the storm water
network should be priority.
Condition Assessment Strategies
-
The development of a comprehensive inventory should be accompanied by a
system-wide assessment of the condition of all assets in the storm water
network through CCTV inspections.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Lifecycle Management Strategies
-
Document and review lifecycle management strategies for the storm water
network on a regular basis to achieve the lowest total cost of ownership while
maintaining adequate service levels.
Levels of Service
-
Continue to measure current levels of service in accordance with the metrics
that the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
42
Buildings
4.4.1
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's buildings inventory.
Asset Segment
Quantity
Replacement
Cost
Annual Capital
Requirement
Firehall
2 assets
$2,456,000
$49,000
General Government
5 assets
$1,396,000
$28,000
Lagoon
1 asset
$3,000
$56
Marina
1 asset
$58,120,000
$1,162,000
Total
$61,974,000
$1,239,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.4.2
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition
Firehall
50
25.5
61% (Good)
General Government
50
19.6
22% (Poor)
Lagoon
50
28
44% (Fair)
Marina
50
26
48% (Fair)
Average
21.5
47% (Fair)
$3k
$1.4m
$2.5m
$58.1m
$0
$20m
$40m
$60m
Lagoon
General Government
Firehall
Marina
43
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor.
To ensure that the Township's buildings and facilities continues to provide an
acceptable level of service, the Township should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the buildings and facilities.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
-
As per the Township's 2016 AMP, the Township plans for facilities to undergo
detailed engineering and architectural inspections every five years. These
assessments would cover the entire building envelope and critical systems
such as roofs, HVAC, plumbing, and accessibility features to ensure that
public buildings remain safe, functional, and compliant with evolving
standards
In this AMP the following rating criteria is used to determine the current condition of
road segments and forecast future capital requirements:
$35k
$191k
$1.9m
$3k
$58.1m
$312k
$508k
$892k
0%
25%
50%
75%
100%
Firehall
General
Government
Lagoon
Marina
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
44
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
4.4.3
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
Municipal buildings typically have service lives of 15 to 50 years, with key
components like roofs typically lasting 25 to 30 years. Major systems, such as
HVAC and plumbing, require periodic upgrades to maintain safe and functional
facilities. While buildings are managed individually, projects should be grouped
where possible to leverage economies of scale. This approach reduces costs and
operational disruptions.
The Facility Condition Index (FCI) can help identify priorities by comparing deferred
maintenance costs to the building's replacement value. Regular assessments ensure
compliance with safety codes, accessibility standards (AODA), and modern
operational requirements. It is highly recommended to work towards
componentizing building assets as different asset types have different lifespans and
maintenance requirements which, along with a condition assessment, would allow
for more accurate capital forecasting.
Rehabilitation should be scheduled based on the building's lifecycle stage and
condition. Work may include energy efficiency upgrades, accessibility
improvements, and modernization of mechanical systems. Neglected maintenance
can lead to rising operational costs, potential safety issues, and premature asset
failure, underlining the importance of routine inspections and upgrades.
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
45
identifies capital requirements over the next 50 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
It should be noted that data confidence in the current inventory is low and should
be a primary focus for the next iteration of the Township's AMP. Additionally,
further componentization of building assets would improve capital forecasting
accuracy.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
$1.2m
$167k
$312k
$58.1m
$1.9m
$155k
$71k
$6.2m
$0
$10m
$20m
$30m
$40m
$50m
$60m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
2053-
2057
2058-
2062
2063-
2067
2068-
2072
Forecasted Capital Replacements
Firehall
General Government
Lagoon
Marina
5-year Capital Requirement
46
4.4.4
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2021 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that Township staff utilize to define and prioritize the
criticality of buildings and facilities are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
47
4.4.5
Levels of Service
The following tables identify the Township's current level of service for the buildings
assets. These metrics include the performance measures that the Township has
selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the buildings assets.
Service
Attribute
Qualitative Description
Current LOS (2021)
Scope
A brief description of the
types of assets included in
this category
Buildings assets include firehalls, a
marina, a municipal garage, office, and
library, the town hall and community
hall
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the buildings assets.
Service
Attribute
Technical Metric
Current LOS
(2021)
Scope
Average condition of assets weighted by
replacement cost
47% (Fair%)
% of assets in fair or better condition
97%
% of assets in poor or lower condition
3%
48
4.4.6
Recommendations
Asset Inventory
-
The Township's asset inventory contains a single record for all buildings.
Facilities consist of several separate capital components that have unique
estimated useful lives and require asset-specific lifecycle strategies. Staff
should work towards a component-based inventory of all buildings to allow
for component-based lifecycle planning.
Replacement Costs
-
Gather accurate replacement costs and update on a regular basis to ensure
the accuracy of capital projections.
Condition Assessment Strategies
-
The Township should implement regular condition assessments for all
facilities to better inform short- and long-term capital requirements.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Begin measuring current levels of service in accordance with the metrics that
the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
49
Vehicles
4.5.1
Asset Inventory & Costs
The table below includes the quantity, replacement cost method and total
replacement cost of each asset segment in the Township's vehicles.
Asset Segment
Quantity
Replacement
Cost
Annual Capital
Requirement
Fire
4
$185,000
$18,000
Machinery
4
$779,000
$78,000
Plows
2
$619,000
$62,000
Trucks
4
$480,000
$48,000
Total
$2,063,000
$206,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
$185k
$480k
$619k
$779k
$0
$200k
$400k
$600k
$800k
Fire
Trucks
Plows
Machinery
Total Current Replacement Cost: $2,062,562
Fire, $184,994, 9%
Trucks,
$479,784,
23%
Plows, $618,799,
30%
Machinery,
$778,985, 38%
50
4.5.2
Asset Condition & Age
The table below identifies the current average condition and source of available
condition data for each asset segment. The average condition (%) is a weighted
value based on replacement cost.
Age data is currently unavailable. Compiling age data from records may be a
consideration for the next iteration of the AMP.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition
Fire
10
4.9
56% (Fair)
Machinery
10
15.7
14% (Very Poor)
Plows
10
5
70% (Good)
Trucks
10
8.9
23% (Poor)
Average
9.2
37% (Poor)
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Township's vehicles continue to provide an acceptable level of
service, the Township should monitor the average condition of all assets. If the
average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation and
replacement activities is required to increase the overall condition of the vehicles.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
$139k
$145k
$553k
$58k
$15k
$66k
$212k
$31k
$634k
$210k
0%
25%
50%
75%
100%
Fire
Machinery
Plows
Trucks
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
51
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
-
Assessments will be based on estimated remaining useful life. Asset condition
will be evaluated internally each year using a standardized rating scale
(good, fair, poor), derived from the percentage of useful life remaining. The
asset management plan will be updated annually to reflect any adjustments
in estimated useful life or condition to ensure timely maintenance and
replacement.
In this AMP the following rating criteria is used to determine the current condition of
road segments and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
4.5.3
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that Township assets are performing as expected and meeting the needs of
customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration. The following table outlines the Township's
current lifecycle management strategy.
Vehicle and equipment life cycles can vary by type, typically ranging from 8 to 25
years. For example, pickup trucks last around 8-10 years, graders up to 20 years,
and fire vehicles up to 25 years--although replacement schedules for fire vehicles
and equipment is regulated. Fleet replacement planning is integrated with broader
operational strategies, including environmental compliance, technological
advancements, and service-level adjustments.
Decisions should be based on lifecycle cost analysis, considering repairs, insurance,
fuel, depreciation, and downtime to determine the most cost-effective replacement
schedule. Replacement should be considered when repair costs exceed 40% of their
replacement value. Alternatives like leasing, refurbishing, or outsourcing services
may also be considered where beneficial.
52
Aging or poorly maintained vehicles can lead to higher operational costs, increased
downtime, and service interruptions, negatively impacting municipal operations and
efficiency.
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 20 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
It should be noted that data confidence in the current inventory is low and should
be a primary focus for the next iteration of the Township's AMP.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
$844k
$309k
$910k
$1.2m
$910k
$1.0m
$0
$250k
$500k
$750k
$1.00m
$1.25m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
Forecasted Capital Replacements
Fire
Machinery
Plows
Trucks
5-year Capital Requirement
53
4.5.4
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2021 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that Township staff utilize to define and prioritize the
criticality of vehicles are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
54
4.5.5
Levels of Service
The following tables identify the Township's current level of service for the vehicles
assets. These metrics include the performance measures that the Township has
selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the vehicles assets.
Service
Attribute
Qualitative
Description
Current LOS (2021)
Scope
A brief description of the
types of assets included
in this category
Vehicles assets include heavy equipment
(grader, backhoe, tractor, plow trucks,
mini excavator), trucks, and fire vehicles
(tankers, pumpers, rescue vehicles)
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the vehicles assets.
Service
Attribute
Technical Metric
Current LOS
(2021)
Scope
Average condition of assets weighted by
replacement cost
37% (Poor)
% of assets in fair or better condition
44%
% of assets in poor or lower condition
56%
55
4.5.6
Recommendations
Replacement Costs
-
Gather accurate replacement costs and update on a regular basis to ensure
the accuracy of capital projections.
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk
equipment.
-
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Begin measuring current levels of service in accordance with the metrics that
the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
56
Machinery & Equipment
4.6.1
Asset Inventory & Costs
The table below includes the quantity, total replacement cost and annual capital
requirements of each asset segment in the Township's machinery and equipment
inventory.
Asset Segment
Quantity
Replacement
Cost
Annual Capital
Requirement
Appliances
2
$18,000
$2,000
Computer Equipment
10
$161,000
$16,000
Equipment
19
$122,000
$12,000
Fire
4
$87,000
$9,000
HVAC
2
$36,000
$4,000
Playground
1
$16,000
$2,000
Streetlights
1
$44,000
$4,000
Water
1
$6,000
$1,000
Total
$489,000
$49,000
$6k
$16k
$18k
$36k
$44k
$87k
$122k
$161k
$0
$20k
$40k
$60k
$80k
$100k
$120k
$140k
$160k
$180k
Water
Playground
Appliances
HVAC
Streetlights
Fire
Equipment
Computer Equipment
Total Current Replacement Cost: $488,756
57
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
4.6.2
Asset Condition & Age
The table below identifies the current average condition and source of available
condition data for each asset segment. The average condition (%) is a weighted
value based on replacement cost.
Age data is currently unavailable. Compiling age data from records may be a
consideration for the next iteration of the AMP.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition
Appliances
10
9.3
4% (Very Poor)
Computer Equipment
10
4.8
48% (Fair)
Equipment
10 - 20
5
47% (Fair)
Fire
10
5.3
49% (Fair)
HVAC
10
5
49% (Fair)
Playground
10
19.1
0% (Very Poor)
Streetlights
10
2.5
75% (Good)
Water
10
14.1
0% (Very Poor)
Average
21.5
47% (Fair)
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
Water, $6,168, 1%
Playground,
$15,603, 3%
Appliances,
$18,104, 4%
HVAC, $35,901, 7%
Streetlights,
$44,018, 9%
Fire,
$86,680,
18%
Equipment,
$121,526, 25%
Computer
Equipment,
$160,756, 33%
58
To ensure that the Township's machinery and equipment continues to provide an
acceptable level of service, the Township should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the machinery and equipment.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
-
Assessments will be based on estimated remaining useful life. Asset condition
will be evaluated internally each year using a standardized rating scale
(good, fair, poor), derived from the percentage of useful life remaining. The
asset management plan will be updated annually to reflect any adjustments
in estimated useful life or condition to ensure timely maintenance and
replacement.
In this AMP the following rating criteria is used to determine the current condition of
road segments and forecast future capital requirements:
$21k
$29k
$44k
$1k
$127k
$38k
$87k
$36k
$13k
$54k
$17k
$16k
$6k
0%
25%
50%
75%
100%
Appliances
Computer Equipment
Equipment
Fire
HVAC
Playground
Streetlights
Water
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
59
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
4.6.3
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that Township 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.
Machinery and equipment undergo visual inspections before operation. Maintenance
and rehabilitation are performed on a case by case basis depending on the
inspections but are reactive in nature.
Replacement decisions for machinery and equipment are based on lifecycle cost
analysis, considering factors like repairs, insurance, fuel, depreciation, and
downtime costs. If repair expenses exceed 40% of the replacement cost,
replacement becomes the preferred strategy
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 20 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
It should be noted that data confidence in the current inventory is low and should
be a primary focus for the next iteration of the Township's AMP.
60
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
4.6.4
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2021 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
$39k
$298k
$152k
$336k
$152k
$244k
$0
$50k
$100k
$150k
$200k
$250k
$300k
$350k
$400k
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
Forecasted Capital Replacements
Appliances
Computer Equipment
Equipment
Fire
HVAC
Playground
Streetlights
Water
5-year Capital Requirement
61
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure.
The asset-specific attributes that Township staff utilize to define and prioritize the
criticality of machinery and equipment are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
4.6.5
Levels of Service
The following tables identify the Township's current level of service for the
machinery and equipment assets. These metrics include the performance measures
that the Township has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the machinery and equipment assets.
62
Service
Attribute
Qualitative
Description
Current LOS (2021)
Scope
A brief description
of the types of
assets included in
this category
Machinery and equipment assets include
appliances, computer equipment,
miscellaneous equipment, fire equipment,
HVAC, playground equipment, streetlights,
water equipment
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the machinery and equipment assets.
Service
Attribute
Technical Metric
Current LOS
(2021)
Scope
Average condition of assets weighted by
replacement cost
47% (Fair)
% of assets in fair or better condition
78%
% of assets in poor or lower condition
22%
63
4.6.6
Recommendations
Replacement Costs
-
All replacement costs used in this AMP were based on the inflation of
historical costs. These costs should be evaluated to determine their accuracy
and reliability. Replacement costs should be updated according to the best
available information on the cost to replace the asset in today's value.
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk
equipment.
-
Review assets that have surpassed their estimated useful life to determine if
immediate replacement is required or whether these assets are expected to
remain in-service. Adjust the service life and/or condition ratings for these
assets accordingly.
Risk Management Strategies
-
Implement risk-based decision-making as part of asset management
planning and budgeting processes. This should include the regular review of
high-risk assets to determine appropriate risk mitigation strategies.
-
Review risk models on a regular basis and adjust according to an evolving
understanding of the probability and consequences of asset failure.
Levels of Service
-
Begin measuring current levels of service in accordance with the metrics that
the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
64
Key Insights
5 Analysis of Rate-funded
Assets
- Rate-funded assets are valued at $10.1 million
- 0% of rate-funded assets are in fair or better condition
- The average annual capital requirement to sustain the current
level of service for rate-funded assets is approximately
$404,000
- Critical assets should be evaluated to determine appropriate
risk mitigation activities and treatment options
65
Sewer & Water Network
5.1.1
Asset Inventory & Costs
As this AMP is based solely on age-based condition and the sewer and water
network inventories are currently pooled into one asset line item, all values
throughout this category are subject to significant change upon further inventory
review and refinement.
The table below includes the quantity, replacement cost method, and annual capital
requirements of each asset segment in the Township's sewer and water network
inventories.
Asset Segment
Quantity
Replacement
Cost
Annual Capital
Requirement
Sewer & Water
TBD
$10,093,000
$404,000
Total
$10,093,000
$404,000
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent realistic capital requirements.
5.1.2
Asset Condition & Age
The table below identifies the current average condition, the average age, and the
estimated useful life for each asset segment. The average condition (%) is a
weighted value based on replacement cost.
Age data for sewer and water assets requires review. Compiling age data from
records and performing a condition assessment may be a consideration for the next
iteration of the AMP.
Asset Segment
Estimated Useful
Life (Years)
Average Age
(Years)
Average
Condition
Hydrants
25
30
0% (Very Poor)
Average
30
0% (Very Poor)
$10.1m
$0
$2m
$4m
$6m
$8m
$10m
$12m
Sewer & Water
Current Replacement Cost
66
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
To ensure that the Township's sewer and water networks continue to provide an
acceptable level of service, the Township should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall condition
of the sewer and water networks.
Each asset's Estimated Useful Life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently determine the
remaining service life of assets and identify the most cost-effective approach to
managing assets. The following describes the Township's current approach:
-
Per the 2016 AMP, inspections of wastewater mains should be conducted at
least once every five years using closed-circuit television (CCTV) technology.
This approach allows the municipality to visually assess internal pipe
conditions, identifying blockages, cracks, or structural weaknesses early to
prevent failures and maintain reliable wastewater service.
In this AMP the following rating criteria is used to determine the current condition of
sewer and water network assets and forecast future capital requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
$10.1m
0%
25%
50%
75%
100%
Sewer & Water
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
67
5.1.3
Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that Township 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.
Service life ranges from 15 to 100 years for sewer assets. Main components like
wastewater trunks typically last 50 to 100 years if well maintained. Water system
components typically last 30 to 100 years, depending on their type. For instance,
watermains have a service life of 50 to 100 years, while valves and hydrants
usually require replacement every 30 to 50 years.
Sewer and water infrastructure renewal should be coordinated with road resurfacing
or reconstruction to replace aging sewer and water lines concurrently, to minimize
costs and disruption. Condition assessments for sewer should use CCTV inspections
and factors like material type, collapses, and capacity upgrades to determine
urgency. Priority for the water network should be determined based on pipe age,
material, break history, and environmental factors. Data from inspections and
maintenance records should guide decisions.
Common rehabilitation and replacement methods for sewer include full
replacement, spot repairs, joint sealing, and cured-in-place pipe (CIPP) lining to
restore functionality. Rehabilitation and replacement approaches for water network
assets include full replacement, cleaning and relining, or pipe bursting. Cathodic
protection may be added to prevent corrosion and extend lifespan.
Failure of sewer systems can lead to backups, overflows, and environmental risks,
emphasizing the need for consistent maintenance. Unexpected watermain failures
can cause significant service disruptions and damage. Proactive maintenance can
extend service life well beyond initial estimates.
Forecasted Capital Requirements
The following graph forecasts long-term capital requirements. The annual capital
requirement represents the average amount per year that the Township should
allocate towards funding rehabilitation and replacement needs. The following graph
identifies capital requirements over the next 30 years. This projection is used as it
ensures that every asset has gone through one full iteration of replacement. The
forecasted requirements are aggregated into 5-year bins and the trend line
represents the average 5-year capital requirements.
It should be noted that data confidence in the current inventory is low and should
be a primary focus for the next iteration of the Township's AMP. The capital forecast
68
is heavily affected by all assets being pooled into one line item within the inventory
and refining the data should be a high priority in the future.
The projected cost of lifecycle activities that will need to be undertaken over the
next 10 years to maintain the current level of service can be found in Appendix B.
5.1.4
Risk & Criticality
Risk Matrix
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the assets
within this asset category based on 2021 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
This is a high-level model developed for the purposes of this AMP and Township
staff should review and adjust the risk model to reflect an evolving understanding
of both the probability and consequences of asset failure. The asset-specific
attributes that Township staff utilize to define and prioritize the criticality of the
sewer and water networks are documented below:
Probability of Failure (POF)
Consequence of Failure (COF)
Condition
Replacement Cost (Economic)
$10.1m
$10.1m
$2.0m
$0
$4m
$8m
$12m
Backlog
2023-
2027
2028-
2032
2033-
2037
2038-
2042
2043-
2047
2048-
2052
Forecasted Capital Replacements
Sewer & Water
5-year Capital Requirement
69
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
5.1.5
Levels of Service
The following tables identify the Township's current level of service for the sewer
and water networks. These metrics include the technical and community level of
service metrics that are required as part of O. Reg. 588/17 as well as any additional
performance measures that the Township has selected for this AMP.
Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the sewer and water networks.
Service
Attribute
Qualitative Description
Current LOS (2021)
Scope
Description, which may include maps,
of the user groups or areas of the
municipality that are connected to the
municipal water system
TBD
Description, which may include maps,
of the user groups or areas of the
municipality that have fire flow
TBD
70
Service
Attribute
Qualitative Description
Current LOS (2021)
Description, which may include maps,
of the user groups or areas of the
municipality that are connected to the
municipal wastewater system
TBD
Reliability
Description of boil water advisories and
service interruptions
TBD
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
TBD
Description of the frequency and
volume of overflows in combined
sewers in the municipal wastewater
system that occur in habitable areas or
beaches
TBD
Description of how stormwater can get
into sanitary sewers in the municipal
wastewater system, causing sewage to
overflow into streets or backup into
homes
Stormwater can enter into
sanitary sewers due to
cracks in sanitary mains or
through indirect
connections (e.g. weeping
tiles).
In the case of heavy rainfall
events, sanitary sewers
may experience a volume
of water and sewage that
exceeds its designed
capacity. In some cases,
this can cause water and/or
sewage to overflow backup
into homes.
The disconnection of
weeping tiles from sanitary
mains and the use of sump
pumps and pits directing
storm water to the storm
drain system can help to
reduce the chance of this
occurring.
Description of how sanitary sewers in
the municipal wastewater system are
TBD
71
Service
Attribute
Qualitative Description
Current LOS (2021)
designed to be resilient to stormwater
infiltration
Description of the effluent that is
discharged from sewage treatment
plants in the municipal wastewater
system
TBD
Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the water network.
Service
Attribute
Technical Metric
Current LOS
(2021)
Scope
% of properties connected to the municipal water
system
TBD
% of properties where fire flow is available
TBD
% of properties connected to the municipal
wastewater system
TBD
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
TBD
# 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
TBD
# 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
TBD
# of connection-days per year having wastewater
backups compared to the total number of
properties connected to the municipal wastewater
system
TBD
# of effluent violations per year due to wastewater
discharge compared to the total number of
properties connected to the municipal wastewater
system
TBD
72
5.1.6
Recommendations
Asset Inventory
-
The pooled sewer and water asset requires further segmentation and length
measurements to allow for asset-specific lifecycle planning and costing.
Replacement Costs
-
Gather accurate replacement costs and update on a regular basis to ensure
the accuracy of capital projections.
Condition Assessment Strategies
-
Identify condition assessment strategies for high value and high-risk water
network assets.
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
that the Township has established in this AMP. Additional metrics can be
established as they are determined to provide meaningful and reliable inputs
into asset management planning.
-
Work towards identifying proposed levels of service as per O. Reg. 588/17
and identify the strategies that are required to close any gaps between
current and proposed levels of service.
73
Key Insights
6 Impacts of Growth
- Understanding the key drivers of growth and demand will allow
the Township to more effectively plan for new infrastructure,
and the upgrade or disposal of existing infrastructure
- Low population and employment growth is expected
- The costs of growth should be considered in long-term funding
strategies that are designed to maintain the current level of
service
74
Description of Growth Assumptions
The demand for infrastructure and services will change over time based on a
combination of internal and external factors. Understanding the key drivers of
growth and demand will allow the Township to more effectively plan for new
infrastructure, and the upgrade or disposal of existing infrastructure. Increases or
decreases in demand can affect what assets are needed and what level of service
meets the needs of the community.
6.1.1
District of Manitoulin Official Plan (October
2018)
The Official Plan for the District of Manitoulin provides a long-term framework to
guide growth, land use, and development across the district. It establishes policies
for land use planning, environmental protection, and sustainable economic
development while recognizing the unique geographic, cultural, and environmental
character of Manitoulin Island. The Official Plan serves as a strategic tool to balance
growth with the preservation of natural resources, rural character, and cultural
heritage. It also outlines responsibilities for municipalities within the district,
ensuring coordinated and consistent decision-making aligned with provincial
planning policies.
Within the Official Plan, the Township of Tehkummah is recognized as a rural
municipality characterized by its agricultural lands, natural areas, and small
settlement communities. Tehkummah's planning policies emphasize protecting
agricultural uses, conserving natural resources, and directing growth to existing
settlement areas to minimize sprawl and protect the rural landscape. The Official
Plan acknowledges Tehkummah's role as part of the broader district framework,
ensuring that any local growth or development aligns with the principles of
sustainability, rural preservation, and community character set out in the district-
wide plan.
The Official Plan assumes limited population and housing growth for Tehkummah
over the planning horizon. Growth is expected to be modest, reflecting the
Township's rural nature and demographic trends across Manitoulin Island, where
population increases are generally small and steady rather than large-scale. The
policies direct growth primarily toward established settlement areas within
Tehkummah to maintain efficient service delivery and protect farmland and natural
resources. The Official Plan anticipates that Tehkummah's growth will be shaped
more by gradual residential development, seasonal/recreational uses, and the
protection of agricultural and rural community values rather than significant
industrial or urban expansion.
75
Impact of Growth on Lifecycle
Activities
By July 1, 2025, the Township's asset management plan must include a discussion
of how the assumptions regarding future changes in population and economic
activity informed the preparation of the lifecycle management and financial
strategy.
Planning for forecasted population growth may require the expansion of existing
infrastructure and services. As growth-related assets are constructed or acquired,
they should be integrated into the Township's AMP. While the addition of residential
units will add to the existing assessment base and offset some of the costs
associated with growth, the Township will need to review the lifecycle costs of
growth-related infrastructure. These costs should be considered in long-term
funding strategies that are designed to, at a minimum, maintain the current level of
service.
76
Key Insights
7 Appendices
- Appendix A includes a one-page report card with an overview of
key data from each asset category
- Appendix B identifies projected 10-year capital requirements for
each asset category
- Appendix C includes maps that have been used to visualize the
current level of service
- Appendix D identifies the criteria used to calculate risk for each
asset category
- Appendix E provides additional guidance on the development of a
condition assessment program
77
Appendix A: Infrastructure Report
Card
Asset
Category
Replacement
Cost
(millions)
Asset
Condition
Financial Capacity
Road Network
$118.3
78%
Annual
Requirement:
$1,732,000
Bridges &
Culverts
$3.7
86%
Annual
Requirement:
$74,000
Storm Water
Network
$0.2
41%
Annual
Requirement:
$3,000
Buildings
$62.0
47%
Annual
Requirement:
$1,239,000
Vehicles
$2.1
37%
Annual
Requirement:
$206,000
Machinery &
Equipment
$0.5
47%
Annual
Requirement:
$49,000
Sewer & Water
Network
$10.1
0%
Annual
Requirement:
$404,000
Overall
$196.8
64%
Annual
Requirement:
$3,707,000
78
Appendix B: 10-Year Capital Requirements
The following tables identify the capital cost requirements for each of the next 10 years in order to meet projected
capital requirements and maintain the current level of service.
Road Network
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Surfaces
$23.2m
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$23.2m
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Bridges & Culverts
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Bridges
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Storm Water Network
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Drains
$0
$0
$0
$0
$0
$0
$10k
$3k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10k
$3k
$0
$0
$0
79
Buildings
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Firehall
$508k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
General
Government
$725k
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Lagoon
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Marina
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1.2m
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Vehicles
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Fire
$0
$0
$31k
$0
$0
$0
$15k
$139k
$0
$0
$0
Machinery
$634k
$0
$0
$0
$0
$0
$0
$0
$145k
$0
$0
Plows
$0
$0
$0
$66k
$0
$0
$0
$0
$553k
$0
$0
Trucks
$210k
$0
$0
$0
$212k
$0
$0
$58k
$0
$0
$0
$844k
$0
$31k
$66k
$212k
$0
$15k
$197k
$698k
$0
$0
80
Machinery & Equipment
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Appliances
$0
$0
$0
$0
$0
$1k
$0
$0
$0
$0
$0
Computer
Equipment
$0
$0
$0
$13k
$125k
$2k
$0
$21k
$0
$0
$0
Equipment
$0
$0
$0
$54k
$32k
$6k
$18k
$11k
$0
$0
$0
Fire
$0
$0
$0
$0
$52k
$34k
$0
$0
$0
$0
$0
HVAC
$0
$0
$0
$0
$21k
$15k
$0
$0
$0
$0
$0
Playground
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Streetlights
$0
$0
$0
$0
$0
$0
$0
$44k
$0
$0
$0
Water
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$39k
$0
$0
$0
$67k
$231k
$59k
$18k
$76k
$0
$0
Sewer & Water Networks
Asset Segment
Backlog
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
Sewer & Water
$10.1m
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$10.1m
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
81
Appendix C: Level of Service Maps
Road Map
82
Appendix D: Risk Rating Criteria
Probability of Failure
Asset Category
Risk
Criteria
Criteria
Weighting
Value/Range
Probability of
Failure Score
All Categories
Condition
100%
80 - 100
1
60 - 79
2
40 - 59
3
20 - 39
4
0 - 19
5
Consequence of Failure
Asset Category
Risk
Classification
Risk Criteria
Value/Range
Consequence of
Failure Score
All Categories
Economic
(100%)
Replacement
Cost
(100%)
$0 - $10,000
1
$10,001 - $50,000
2
$50,001 - $500,000
3
$500,001 - $1,000,000
4
$1,000,000+
5
83
Appendix E: Condition Assessment
Guidelines
The foundation of good asset management practice is accurate and reliable data on
the current condition of infrastructure. Assessing the condition of an asset at a
single point in time allows staff to have a better understanding of the probability of
asset failure due to deteriorating condition.
Condition data is vital to the development of data-driven asset management
strategies. Without accurate and reliable asset data, there may be little confidence
in asset management decision-making which can lead to premature asset failure,
service disruption and suboptimal investment strategies. To prevent these
outcomes, the Township's condition assessment strategy should outline several key
considerations, including:
-
The role of asset condition data in decision-making
-
Guidelines for the collection of asset condition data
-
A schedule for how regularly asset condition data should be collected
Role of Asset Condition Data
The goal of collecting asset condition data is to ensure that data is available to
inform maintenance and renewal programs required to meet the desired level of
service. Accurate and reliable condition data allows municipal staff to determine the
remaining service life of assets, and identify the most cost-effective approach to
deterioration, whether it involves extending the life of the asset through remedial
efforts or determining that replacement is required to avoid asset failure.
In addition to the optimization of lifecycle management strategies, asset condition
data also impacts the Township's risk management and financial strategies.
Assessed condition is a key variable in the determination of an asset's probability of
failure. With a strong understanding of the probability of failure across the entire
asset portfolio, the Township can develop strategies to mitigate both the probability
and consequences of asset failure and service disruption. Furthermore, with
condition-based determinations of future capital expenditures, the Township can
develop long-term financial strategies with higher accuracy and reliability.
Guidelines for Condition Assessment
Whether completed by external consultants or internal staff, condition assessments
should be completed in a structured and repeatable fashion, according to consistent
and objective assessment criteria. Without proper guidelines for the completion of
84
condition assessments there can be little confidence in the validity of condition data
and asset management strategies based on this data.
Condition assessments must include a quantitative or qualitative assessment of the
current condition of the asset, collected according to specified condition rating
criteria, in a format that can be used for asset management decision-making. As a
result, it is important that staff adequately define the condition rating criteria that
should be used and the assets that require a discrete condition rating. When
engaging with external consultants to complete condition assessments, it is critical
that these details are communicated as part of the contractual terms of the project.
There are many options available to the Township to complete condition
assessments. In some cases, external consultants may need to be engaged to
complete detailed technical assessments of infrastructure. In other cases, internal
staff may have sufficient expertise or training to complete condition assessments.
Developing a Condition Assessment Schedule
Condition assessments and general data collection can be both time-consuming and
resource-intensive. It is not necessarily an effective strategy to collect assessed
condition data across the entire asset inventory. Instead, the Township should
prioritize the collection of assessed condition data based on the anticipated value of
this data in decision-making. The International Infrastructure Management Manual
(IIMM) identifies four key criteria to consider when making this determination:
1. Relevance: every data item must have a direct influence on the output that
is required
2. Appropriateness: the volume of data and the frequency of updating should
align with the stage in the assets life and the service being provided
3. Reliability: the data should be sufficiently accurate, have sufficient spatial
coverage and be appropriately complete and current
4. Affordability: the data should be affordable to collect and maintain