2025 Township of The Archipelago Asset Management Plan
The Archipelago, Ontario
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Asset
Management
Plan
Township of the Archipelago
APRIL 2025
Township of the Archipelago
Asset Management Plan 2025
i
This Asset Management Plan was prepared by:
Empowering your organization through advanced asset
management, budgeting & GIS solutions
Township of the Archipelago
Asset Management Plan 2025
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Key Statistics
$43.8 m
2023 Replacement Cost of Asset
Portfolio
90%
Percentage of Assets in Fair or Better
Condition
88%
Percentage of Assets with Assessed
Condition Data
$52,831
Annual Capital Infrastructure Deficit
3.65%
Target Investment Rate
3.53%
Actual Investment Rate
0.1%
($3.68)
Tax Increase per Household per Year
(for 5 Years) to Fully Fund Proposed
Levels of Service
Township of the Archipelago
Asset Management Plan 2025
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Table of Contents
1
Executive Summary ............................................................................ 1
2
Introduction & Context ........................................................................ 4
Portfolio Overview ................................................................................ 25
3
State of the Infrastructure ................................................................. 26
4
Proposed Levels of Service Analysis ..................................................... 36
Category Analysis: Core Assets ............................................................ 47
5
Bridges & Structural Culverts .............................................................. 48
6
Road Network .................................................................................. 62
Category Analysis: Non-Core Assets ..................................................... 81
7
Buildings ......................................................................................... 82
8
Land Improvements .......................................................................... 98
9
Machinery & Equipment .................................................................... 112
10
Vehicles ......................................................................................... 125
Strategies ........................................................................................... 140
11
Growth .......................................................................................... 141
12
Financial Strategy ............................................................................ 143
13
Recommendations & Key Considerations ............................................. 155
Appendices ......................................................................................... 158
Appendix A - Infrastructure Report Card ................................................... 159
Township of the Archipelago
Asset Management Plan 2025
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Appendix B - 10-Year Capital Requirements ............................................... 160
Appendix C - Level of Service Maps & Photos ............................................. 164
Appendix D - Risk Rating Criteria ............................................................. 198
Appendix E - Data Quality Dimensions ...................................................... 201
Township of the Archipelago
Asset Management Plan 2025
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Executive Summary
1
Executive Summary
Municipal infrastructure delivers critical services that are foundational to the
economic, social, and environmental health and growth of a community. The goal of
asset management is to enable infrastructure to deliver an adequate level of service
in the most cost-effective manner. This involves the ongoing review and update of
infrastructure information and data alongside the development and implementation
of asset management strategies and long-term financial planning.
1.1
Scope
This Asset Management Plan (AMP) identifies the current practices and strategies
that are in place to manage public infrastructure and makes recommendations
where they can be further refined. Through the implementation of sound asset
management strategies, the Township of the Archipelago can ensure that public
infrastructure is managed to support the sustainable delivery of municipal services.
Figure 1 outlines the asset categories included in this AMP:
Figure 1 Core and Non-Core Asset Categories
1.2
Compliance
With the development of this AMP, the Township of the Archipelago has achieved
compliance with July 1, 2025, requirements under O. Reg. 588/17. This includes
requirements for levels of service and inventory reporting for all asset categories.
-
Buildings
-
Land Improvements
-
Vehicles
-
Machinery & Equipment
Non-Core Assets
-
Road Network
-
Bridges & Structural
Culverts
Core Assets
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Executive Summary
1.3
Findings
The overall replacement cost of the asset categories included in this AMP totals
$43.8 million. Weighted by replacement cost, 90% of all assets analyzed in this
AMP are in fair or better condition and assessed condition data was available for
88% of assets. For the remaining 12% of assets, assessed condition data was
unavailable, and asset age was used to approximate condition - a data gap that
persists in most municipalities. Generally, age misstates the true condition of
assets, making assessments essential to accurate asset management planning, and
a recurring recommendation in this AMP.
The development of a long-term, sustainable financial plan requires an analysis of
whole lifecycle costs. This AMP uses a combination of proactive lifecycle strategies
(HCB and LCB roads) and replacement only strategies (all other assets) to
determine the lowest cost option to maintain the current level of service.
To meet capital replacement and rehabilitation needs for existing infrastructure,
prevent infrastructure backlogs, and achieve long-term sustainability, the
Township's average annual capital requirement totals $1,599,610. Based on a
historical analysis of sustainable capital funding sources, the Township is
committing approximately $1,546,779 towards capital projects or reserves per
year. As a result, there is currently an annual funding gap of $52,831.
It is important to note that this AMP represents a snapshot in time and is based on
the best available processes, data, and information at the Township. Strategic asset
management planning is an ongoing and dynamic process that requires continuous
improvement and dedicated resources.
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Asset Management Plan 2025
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Executive Summary
1.4
Recommendations
A financial strategy was developed to address the annual capital funding gap. The
following graphic shows annual tax change required to eliminate the Township's
infrastructure deficit based on a 5-year plan:
Figure 2 Proposed Tax Change
Average Annual
Tax Change
0.1%
Years to Full
Sustainability
5 Years
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
Develop and regularly review short- and long-term plans to meet capital
requirements
Continue to measure current levels of service and verify sustainability of
proposed levels of service
Tax-Funded
ASSETS
Township of the Archipelago
Asset Management Plan 2025
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Introduction & Context
2
Introduction & Context
2.1
Community Profile
Table 1 Township of the Archipelago Community Profile
The Township of The Archipelago is a small Township of 979 permanent residents
(2021 Census) located in Georgian Bay, Ontario. The Township consists of two non-
contiguous parts along the coast and was created pursuant to the District of Parry
Sound Local Government Act as a result of the Province's policy to extend,
consolidate, and strengthen local governments in the District of Parry Sound. The
Township of The Archipelago was incorporated on April 1, 1980, via the
amalgamation of the former townships of Georgian Bay South Archipelago and
Georgian Bay North Archipelago.
Prior to the incorporation of the Township, the land on which The Archipelago now
sits was composed entirely of geographic townships, with almost no prior local
government activity. The Township of the Archipelago makes up a large part of the
Thirty Thousand Islands, a UNESCO-designated site known for being the largest
freshwater archipelago in the world. The Thirty Thousand Islands area has been
long acclaimed for its natural beauty, providing inspiration to artists such as those
in the Group of Seven.
1 As per 2021 Census from Statistics Canada.
Census Characteristic
Township of the
Archipelago1
Ontario
Population 2021
979
14,223,942
Population Change 2016-2021
84.4%
5.8%
Total Private Dwellings
2,863
5,929,250
Population Density
1.7 / km2
15.9 / km2
Land Area
592.14 km2
892,411.76 km2
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Asset Management Plan 2025
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Introduction & Context
The Township is home to several thousand islands, bays, and lakes that attract a
large seasonal population. The Township estimates that there is a seasonal
population of approximately 12,800, which would increase the Township's total
population to 13,332. The local economy for the Township is based on the natural
resources from the area, as well as recreational, and tourism-based businesses.
The Township of The Archipelago is self-described as remote, although it is not
unreasonably far from urban amenities, with Sudbury about 125km to the North
and Toronto about 280km to the South.
2.2
Asset Management Overview
Municipalities are responsible for managing and maintaining a broad portfolio of
infrastructure assets to deliver services to the community. The goal of asset
management is to minimize the lifecycle costs of delivering infrastructure services,
manage the associated risks, while maximizing the value ratepayers receive from
the asset portfolio.
The acquisition of capital assets accounts for only 10-20% of their total cost of
ownership. The remaining 80-90% comes from operations and maintenance. This
AMP focuses its analysis on the capital costs to maintain, rehabilitate and replace
existing municipal infrastructure assets.
Figure 3 Total Cost of Asset Ownership
These costs can span decades, requiring planning and foresight to ensure financial
responsibility is spread equitably across generations. An asset management plan is
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Asset Management Plan 2025
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Introduction & Context
critical to this planning, and an essential element of broader asset management
program. The industry-standard approach and sequence to developing a practical
asset management program begins with a Strategic Plan, followed by an Asset
Management Policy and an Asset Management Strategy, concluding with an Asset
Management Plan.
This industry standard, defined by the Institute of Asset Management (IAM),
emphasizes the alignment between the corporate strategic plan and various asset
management documents. The strategic plan has a direct, and cascading impact on
asset management planning and reporting.
2.2.1
Foundational Asset Management Documentation
The industry-standard approach and sequence to developing a practical asset
management program begins with a Strategic Plan, followed by an Asset
Management Policy and an Asset Management Strategy, concluding with an Asset
Management Plan.
Figure 4 Foundational Asset Management Documents
This industry standard, defined by the Institute of Asset Management (IAM),
emphasizes the alignment between the corporate strategic plan and various asset
management documents. The strategic plan has a direct, and cascading impact on
asset management planning and reporting.
Strategic Plan
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
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Asset Management Plan 2025
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Introduction & Context
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 municipal staff on their
roles and responsibilities as part of the asset management program.
The Township of the Archipelago adopted their Strategic Asset Management Policy
in June of 2019. The purpose of the policy "is to establish consistent standards and
guidelines for management of the Township's assets."
The general policy states that asset management planning will be aligned with the
Township's Official Plan, acknowledging projected changes and the resulting
impacts within the community. The potential costs of climate change vulnerabilities
will balance the impacts of such events and other risk management approaches will
also be embedded in local asset management planning methods.
The statutory requirements and key principles the Township strives to incorporate
are as follows:
Environmentally conscious
Forward looking
Budgeting and planning
Prioritizing
Transparency
Consistency
Health and safety
Community focused
Innovation
Standards
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.
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Asset Management Plan 2025
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Introduction & Context
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the Township's asset
management program and identifies the resource requirements needed to achieve a
defined level of service. The AMP typically includes the following content:
State of Infrastructure
Asset Management Strategies
Levels of Service
Financial Strategies
The AMP is a living document that should be updated regularly as additional asset
and financial data becomes available. This will allow the Township to re-evaluate
the state of infrastructure and identify how the organization's asset management
and financial strategies are progressing.
2.2.2
Key Concepts in Asset Management
Effective asset management integrates several key components, including lifecycle
management, risk & criticality, and levels of service. These concepts are applied
throughout this asset management plan and are described below in greater detail.
Lifecycle Management Strategies
The condition or performance of most assets will deteriorate over time. This process
is affected by a range of factors including asset characteristics, location, utilization,
maintenance history and environment. Asset deterioration has a negative effect on
the ability of an asset to fulfill its intended function, and may be characterized by
increased cost, risk and even service disruption.
To ensure that municipal assets are performing as expected and meeting the needs
of customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
There are several field intervention activities that are available to extend the life of
an asset. These activities can be generally placed into one of three categories:
maintenance, rehabilitation, and replacement. The following table provides a
description of each type of activity and the general difference in cost.
Depending on initial lifecycle management strategies, asset performance can be
sustained through a combination of maintenance and rehabilitation, but at some
point, replacement is required. Understanding what effect these activities will have
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Introduction & Context
on the lifecycle of an asset, and their cost, will enable staff to make better
recommendations.
Table 2 Lifecycle Management: Typical Lifecycle Interventions
Lifecycle Activity
Cost
Typical Associated Risks
Maintenance
Activities that prevent
defects or
deteriorations from
occurring
$
Balancing limited resources between
planned maintenance and reactive,
emergency repairs and interventions;
Diminishing returns associated with
excessive maintenance activities, despite
added costs;
Intervention selected may not be optimal
and may not extend the useful life as
expected, leading to lower payoff and
potential premature asset failure;
Rehabilitation/
Renewal
Activities that rectify
defects or deficiencies
that are already
present and may be
affecting asset
performance
$$$
Useful life may not be extended as
expected;
May be costlier in the long run when
assessed against full reconstruction or
replacement;
Loss or disruption of service, particularly
for underground assets;
Replacement/
Reconstruction
Asset end-of-life
activities that often
involve the complete
replacement of assets
$$$$$
Incorrect or unsafe disposal of existing
asset;
Costs associated with asset retirement
obligations;
Substantial exposure to high inflation and
cost overruns;
Replacements may not meet capacity
needs for a larger population;
Loss or disruption of service, particularly
for underground assets;
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Introduction & Context
The Township's approach to lifecycle management is described within each asset
category outlined in this AMP. Staff will continue to evolve and innovate current
practices for developing and implementing proactive lifecycle strategies to
determine which activities to perform on an asset and when they should be
performed to maximize useful life at the lowest total cost of ownership.
Risk & Criticality
Quantitative Risk
Asset risk and criticality are essential building blocks of asset management, integral
in prioritizing projects and distributing funds where they are needed most based on
a variety of factors. Assets in disrepair may fail to perform their intended function,
pose substantial risk to the community, lead to unplanned expenditures, and create
liability for the Township. In addition, some assets are simply more important to
the community than others, based on their financial significance, their role in
delivering essential services, the impact of their failure on public health and safety,
and the extent to which they support a high quality of life for community
stakeholders.
Risk is a product of two variables: the probability that an asset will fail, and the
resulting consequences of that failure event. It can be a qualitative measurement,
(i.e. low, medium, high) or quantitative measurement (i.e. 1-5), that can be used
to rank assets and projects, identify appropriate lifecycle strategies, optimize short-
and long-term budgets, minimize service disruptions, and maintain public health
and safety.
Figure 5 Risk Equations
The approach for quantitative risk used in this AMP relies on a calculable
measurement of risk associated with each asset. The probability and consequence
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Asset Management Plan 2025
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Introduction & Context
of failure are each scored from one to five, producing a minimum risk index of one
for the lowest risk assets, and a maximum risk index of 25 for the highest risk
assets.
Probability of Failure
Several factors can help decision-makers estimate the probability or likelihood of an
asset's failure, including its condition, age, previous performance history, and
exposure to extreme weather events, such as flooding and ice jams--both a
growing concern for municipalities in Canada.
Typically, a model is selected for a group of similar assets (e.g. all roads, water
distribution system etc.). Often, parameters for estimating probability of failure
include asset condition, service life remaining, and/or asset material.
For each risk model, probability of failure (PoF) is determined through the following
steps:
1. Identification of available attribute data suitable for determining the
probability of failure for selected assets. In some instances, available asset
data may be limited requiring a more simplified PoF model, at least initially.
This process often identifies opportunities for asset data enhancements
and/or data collection. Asset enhancement considerations commonly
relate to data quality dimensions which are outlined in - Data Quality
Dimensions.
2. Determination of the type of risk that applies to the selected attribute.
Condition, Design Capacity, Economic, Environmental, Health and
Safety, Operational, Social, Strategic
3. Where there are multiple parameters included in the PoF model, determine
suitable weighting of each parameter.
Weighting allows the model to recognize that each factor may impact
the probability of failure to a different degree. Where the weight is
higher, the impact that factor has on the model increases too.
Consequence of Failure
Estimating criticality also requires identifying the types of consequences that the
organization and community may face from an asset's failure, and the magnitude of
those consequences. Consequences of asset failure will vary across the
infrastructure portfolio; the failure of some assets may result primarily in high
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Introduction & Context
direct financial cost but may pose limited risk to the community. Other assets may
have a relatively minor financial value, but any downtime may pose significant
health and safety hazards to residents.
Table 3 illustrates the various types of consequences that can be integrated in
developing risk and criticality models for each asset category and segments within.
We note that these consequences are common, but not exhaustive.
Table 3 Risk Analysis: Types of Consequences of Failure
Type of
Consequence
Description
Direct Financial
Direct financial consequences are typically measured as
the replacement costs of the asset(s) affected by the
failure event, including interdependent infrastructure.
Economic
Economic impacts of asset failure may include disruption
to local economic activity and commerce, business
closures, service disruptions, etc. Whereas direct
financial impacts can be seen immediately or estimated
within hours or days, economic impacts can take weeks,
months and years to emerge, and may persist for even
longer.
Socio-Political
Socio-political impacts are more difficult to quantify and
may include inconvenience to the public and key
community stakeholders, adverse media coverage, and
reputational damage to the community and the
Township.
Environmental
Environmental consequences can include pollution,
erosion, sedimentation, habitat damage, etc.
Public Health and
Safety
Adverse health and safety impacts may include injury or
death, or impeded access to critical services.
Strategic
These include the effects of asset failure on the
community's long-term strategic objectives, including
economic development, business attraction, etc.
Township of the Archipelago
Asset Management Plan 2025
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Introduction & Context
This AMP includes a preliminary evaluation of asset risk and criticality. Each asset
has been assigned a probability of failure score and consequence of failure score
based on available asset data. These risk scores can be used to prioritize
maintenance, rehabilitation, and replacement strategies for critical assets.
These models have been built in Citywide for continued review, updates, and
refinements.
Qualitative Risk
Qualitative risk assessments in municipal asset management go beyond numbers
and statistics to capture the broader picture of potential vulnerabilities. This
approach recognizes that not all risks can be easily quantified, especially when
dealing with factors that involve human judgment, institutional knowledge, and
unpredictable external conditions. Here's a deeper look at how and why qualitative
risk is vital:
Understanding the Nuances
Human Expertise and Experience: Rather than solely relying on historical
data or mathematical models, qualitative risk assessments tap into the
insights of experienced staff and stakeholders. Their first-hand knowledge
can highlight emerging issues--such as gaps in asset data or unanticipated
maintenance challenges--that might be overlooked in quantitative reviews.
Contextual Factors: Municipalities face a range of unique challenges
including aging infrastructure, rapid growth, and climate change impacts.
Qualitative assessments take into account the specific context of the
community, such as local environmental conditions, regulatory landscapes,
and historical performance of assets.
Methodological Approach
Workshops and Interviews: Facilitated risk workshops and structured
interviews are key methods used in qualitative assessments. These sessions
encourage open dialogue among staff from various departments, ensuring
that diverse perspectives are considered. Through guided questions--
covering topics from asset data confidence to lifecycle management
strategies--municipalities can identify risks that are not immediately obvious
from a numerical analysis.
Identifying Hidden Vulnerabilities: The qualitative process allows teams
to explore risks that are dynamic and interrelated. For instance, while data
might show a certain asset has reached the end of its useful life, qualitative
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Introduction & Context
insights might reveal that a lack of proactive maintenance, compounded by
extreme weather conditions, poses a more immediate risk to service delivery.
Strategic Benefits
Informed Decision-Making: By combining qualitative insights with
quantitative data, municipal planners can develop more holistic asset
management strategies. This integrated approach enables better
prioritization of capital investments, ensuring that both the immediate and
long-term needs of the community are addressed.
Proactive Risk Management: Qualitative risk assessments foster a
forward-looking mindset. Rather than simply reacting to failures after they
occur, this methodology encourages the development of proactive
measures--such as enhanced maintenance programs and updated lifecycle
strategies--that can mitigate risks before they escalate.
Adaptability to Change: As external conditions evolve, qualitative
assessments provide the flexibility needed to capture new risks. Whether it's
the onset of climate change-related events or shifts in funding availability,
qualitative methods allow municipal asset managers to continuously refine
their strategies in response to real-world developments.
By grounding the assessment process in real-world expertise and contextual
analysis, qualitative risk evaluation becomes an essential tool for developing
resilient, adaptive, and well-informed asset management strategies. This ensures
that municipalities are not only prepared to handle current challenges but are also
equipped to navigate the uncertainties of the future.
Levels of Service
A level of service (LOS) is a measure of the services that the Township is providing
to the community and the nature and quality of those services. Within each asset
category in this AMP, technical metrics and qualitative descriptions that measure
both technical and community levels of service have been established and
measured as data is available.
The Township measures the level of service provided at two levels: Community
Levels of Service, and Technical Levels of Service.
Community Levels of Service
Community levels of service are a simple, plain language description or measure of
the service that the community receives. For core asset categories as applicable (, )
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Introduction & Context
the province, through O. Reg. 588/17, has provided qualitative descriptions that are
required to be included in this AMP.
Technical Levels of Service
Technical levels of service are a measure of key technical attributes of the service
being provided to the community. These include mostly quantitative measures and
tend to reflect the impact of the Township's asset management strategies on the
physical condition of assets or the quality/capacity of the services they provide.
For core asset categories as applicable the province, through O. Reg. 588/17, has
also provided technical metrics that are required to be included in this AMP. For all
categories where not already prescribed by the province, the Township has opted to
include the average condition, percentage of the category in fair or better condition,
percentage of the category in poor or lower condition, and a ratio of the AAR
against the amount budgeted towards each category.
Current and Proposed Levels of Service
Current levels of service are the past performance metrics of an asset category up
until present day. In contrast, proposed levels of service look toward the
Township's goal for asset performance by a defined future date.
Once current levels of service have been measured, proposed levels of service over
a 10-year period should be established, 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 by 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.
It is important to note that O. Reg 588/17 does not dictate which proposed LOS
metrics municipalities need to strive for. A proposed level of service will be very
specific to each community's resident desires, political goals, and financial capacity.
This can range from increasing service levels and costs, to maintaining or even
reducing current performance to mitigate future cost increases. Regardless of the
proposed LOS chosen, O. Reg 588/17 requires municipalities to demonstrate the
achievability of their selected metrics
Both current and proposed levels of service for all included asset categories are
outlined in this AMP.
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Introduction & Context
2.3
Scope & Methodology
2.3.1
Asset Categories for this AMP
This asset management plan for the Township is produced in compliance with O.
Reg. 588/17. The July 2025 deadline under the regulation--the third of three
AMPs--requires analysis of core and non-core asset categories, as well as proposed
service levels and the financial strategy to fund them.
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 metrics, outlines lifecycle strategies for optimal asset
management and performance, and provides financial strategies to reach
sustainability for the asset categories listed below.
Figure 6 Tax Funded Asset Categories
- Road Network
- Bridges & Structural
Culverts
- Buildings
- Land Improvements
- Vehicles
- Machinery & Equipment
2.3.2
Data Effective Date
It is important to note that this plan is based on data as of December 2023;
therefore, it represents a snapshot in time using the best available processes, data,
and information at the Township. Strategic asset management planning is an
ongoing and dynamic process that requires continuous data updates and dedicated
data management resources.
Tax-Funded Assets
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Introduction & Context
2.3.3
Defining Replacement Costs
There are a range of methods to determine the replacement cost of an asset, and
some are more accurate and reliable than others. This AMP relies on two
methodologies:
User-Defined Cost and Cost Per Unit
Based on costs provided by municipal staff which could include average costs
from recent contracts; data from engineering reports and assessments; staff
estimates based on knowledge and experience.
Cost Inflation / CPI Tables
Historical costs of the assets are inflated based on Consumer Price Index or
Non-Residential Building Construction Price Index.
User-defined costs based on reliable sources are a reasonably accurate and reliable
way to determine asset replacement costs. Cost inflation is typically used in the
absence of reliable replacement cost data. It is a reliable method for recently
purchased and/or constructed assets where the total cost is reflective of the actual
costs that the Township incurred. As assets age, and new products and
technologies become available, cost inflation becomes a less reliable method.
2.3.4
Estimated Service Life & Service Life Remaining
The estimated useful life (EUL) of an asset is the period over which the Township
expects the asset to be available for use and remain in service before requiring
replacement or disposal. The EUL for each asset in this AMP was assigned according
to the knowledge and expertise of municipal staff and supplemented by existing
industry standards when necessary.
By using an asset's in-service data and its EUL, the Township can determine the
service life remaining (SLR) for each asset. Using condition data and the asset's
SLR, the Township can more accurately forecast when it will require replacement.
The SLR is calculated as follows:
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Introduction & Context
Figure 7 Service Life Remaining Calculation
2.3.5
Average Annual Requirement
The Average Annual Requirement (AAR) is the estimated amount of money the
Township would need to set aside each year to ensure sufficient funds are available
to carry out major rehabilitation or replacement work when it is due. It is a long-
term financial planning tool used to support sustainable asset management and
service delivery.
In essence, it treats infrastructure investment like a savings plan: "If we spread the
total lifecycle cost of this asset over its useful life, how much do we need to reserve
each year to be ready when major costs arise?"
Why the AAR matters:
Long-Term Planning: Encourages proactive financial planning rather than
reactive crisis spending.
Sustainability: Ensures assets are properly maintained and replaced
without burdening future budgets.
Transparency: Helps identify whether current funding levels are sufficient--
or if there is a funding gap.
Optimized Investment: Supports lifecycle strategies that lower total costs
and extend asset life.
Lifecycle interventions (e.g., resurfacing a road, relining a pipe) may require
upfront investment, but they can extend the life of the asset, which means the cost
is spread out over a longer period. This often results in a lower AAR, because the
asset is delivering value for a longer time before needing full replacement.
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Introduction & Context
Table 4 Average Annual Requirement Example
In the example outlined in Table 4, the life of the road would be extended by 15
years if a $500K mid-life rehabilitation was performed, thus reducing the annual
amount that must be reserved. The $25,000 that would have been put aside for the
road can now be reallocated to another project.
2.3.6
Reinvestment Rate
As assets age and deteriorate they require additional investment to maintain a
state of good repair. The reinvestment of capital funds, through asset renewal or
replacement, is necessary to sustain an adequate level of service. The reinvestment
rate is a measurement of available or required funding relative to the total
replacement cost.
By comparing the actual vs. target reinvestment rate the Township can determine
the extent of any existing funding gap. The reinvestment rate is calculated as
follows:
Figure 8 Target Reinvestment Rate Calculation
Figure 9 Actual Reinvestment Rate Calculation
Scenario
Total Lifecycle Cost
Useful Life
AAR
No Rehab
$2.5M (replace at Year 25)
25 years
$100,000/year
With Rehab
$2.5M + $500K rehab at Year 15
40 years
$75,000/year
Township of the Archipelago
Asset Management Plan 2025
20
Introduction & Context
2.3.7
Establishing 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.
Table 5 Standard Condition Rating Scale
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
Township of the Archipelago
Asset Management Plan 2025
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Introduction & Context
The analysis in this AMP is based on assessed condition data only as available. In
the absence of assessed condition data, asset age is used as a proxy to determine
asset condition.
2.3.8
Evaluating Quantitative Risk
As outlined in Risk & Criticality, risk ratings are derived from the total probability of
failure multiplied by the total consequence of failure. In this model, risk ratings may
range from 0-25. The table below provides ranges of Very Low, Low, Moderate,
High, and Very High dependent on the risk rating value.
Table 6 Probability of Failure, Consequence of Failure, and Overall Risk Ratings
Additionally, risk ratings can be displayed as a matrix with the probability of failure
from 1-5 along the bottom and the consequence of failure from 1-5 along the side.
Probability of Failure
Consequence of Failure
Risk Rating
1 - Rare
1 - Insignificant
1 - 4 - Very Low
2 - Unlikely
2 - Minor
5 - 7 - Low
3 - Possible
3 - Moderate
8 - 9 - Moderate
4 - Likely
4 - Major
10 - 14 - High
5 - Almost Certain
5 - Severe
15 - 25 - Very High
Township of the Archipelago
Asset Management Plan 2025
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Introduction & Context
Table 7 Example of Risk Matrix
Consequence of Failure
5
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
4
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
3
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
2
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
1
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
# Assets
Quantity
Cost
1
2
3
4
5
Probability of Failure
2.4
Ontario Regulation 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario
government introduced Regulation 588/17 - Asset Management Planning for
Municipal Infrastructure (O. Reg 588/17)2. Along with creating better performing
organizations, more livable and sustainable communities, the regulation is a key,
mandated driver of asset management planning and reporting. It places substantial
emphasis on current and proposed levels of service and the lifecycle costs incurred
in delivering them. Figure 10 below outlines key reporting requirements under O.
Reg 588/17 and the associated timelines.
2 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure
https://www.ontario.ca/laws/regulation/170588
Township of the Archipelago
Asset Management Plan 2025
23
Introduction & Context
Figure 10 O. Reg. 588/17 Requirements and Reporting Deadlines
2.4.1
O. Reg. 588/17 Compliance Review
Requirement
O. Reg.
588/17
Section
AMP
Section
Reference
Status
Summary of assets in each
category
S.5(2), 3(i)
5.1 - 10.1
Complete
Replacement cost of assets in
each category
S.5(2), 3(ii)
5.1 - 10.1
Complete
Average age of assets in each
category
S.5(2), 3(iii)
5.3 - 10.3
Complete
Township of the Archipelago
Asset Management Plan 2025
24
Introduction & Context
Requirement
O. Reg.
588/17
Section
AMP
Section
Reference
Status
Condition of core assets in each
category
S.5(2), 3(iv)
5.2 - 10.2
Complete
Description of municipality's
approach to assessing the
condition of assets in each
category
S.5(2), 3(v)
5.4 - 10.4
Complete
Current levels of service in each
category
S.5(2), 1(i-ii)
5.7 - 10.7
Complete
Current performance measures
in each category
S.5(2), 2
5.7 - 10.7
Complete
Lifecycle activities needed to
maintain current levels of
service for 10 years
S.5(2), 4
5.4 - 10.4
Complete
Costs of providing lifecycle
activities for 10 years
S.5(2), 4
Appendix B
Complete
Growth assumptions
S.5(2), 5(i-ii)
S.5(2), 6(i-vi)
11.1
Complete
Township of the Archipelago
Asset Management Plan 2025
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Introduction & Context
Portfolio Overview
Township of the Archipelago
Asset Management Plan 2025
26
State of the Infrastructure
3
State of the
Infrastructure
The state of the infrastructure (SOTI) summarizes the inventory, condition, age
profiles, and other key performance indicators for the Township's infrastructure
portfolio. These details are presented for all core and non-core asset categories.
3.1
Asset Hierarchy & Data Classification
Asset hierarchy shows how individual assets, and their components, relate to the
broader system. The structure influences how data is interpreted. Assets are
organized to support clear, efficient reporting, with key details summarized at the
segment level.
Figure 11 Asset Hierarchy and Data Classification
-Bridges
-Structural Culverts
Bridges &
Culverts
-HCB Roads
-LCB Roads
-Signs
-Small Culverts
-Gravel Roads
Road Network
-Community and
Culture
-General Government
-Health
-Public Works
-Washrooms
-Waste Management
Buildings
-Cemetery
-Marine
-Parking Lots
-Recreation
-Towers
-Waste Management
Land
Improvements
-Furniture and Fixtures
-Public Works
-Waste Management
Machinery &
Equipment
-Heavy Duty
-Light Duty
-Marine
Vehicles
Township of the Archipelago
Asset Management Plan 2025
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State of the Infrastructure
3.2
Portfolio Overview
3.2.1
Total Replacement Cost of Asset Portfolio
The six asset categories analyzed in this Asset Management Plan have a total
current replacement cost of $43.8 million. This estimate was calculated using user-
defined costing, as well as inflation of historical or original costs to current date.
This estimate reflects the replacement of historical assets with similar, not
necessarily identical, assets available for procurement today. Table 8 provides a
detailed breakdown of replacement cost and average annual requirement3 by asset
category. Figure 12 illustrates the replacement cost of each asset category; at 42%
of the total portfolio, buildings form the largest share of the Township's asset
portfolio, followed by closely by the road network at 38%.
Table 8 Detailed Asset Inventory Valuation: Portfolio Overview
3For further clarification on Average Annual Requirement (AAR), see section 2.3.5 Average Annual Requirement.
4 Weighted by replacement cost.
Category
Replacement
Cost
Replacement
Cost Method
% of Total4
AAR3
Bridges &
Structural
Culverts
$2,000,000
User-Defined
5%
$24,020
Road Network
$16,463,995
Cost per Unit
38%
$782,543
Buildings
$18,405,705
User-Defined
42%
$289,445
Land
Improvements
$1,858,544
User-Defined
4%
$69,963
Machinery &
Equipment
$3,330,307
User-Defined
8%
$285,370
Vehicles
$1,738,350
User-Defined
4%
$148,270
TOTAL
$43,796,901 User-Defined
100%
$1,599,609
Township of the Archipelago
Asset Management Plan 2025
28
State of the Infrastructure
Figure 12 Current Replacement Cost: Portfolio Overview
3.2.2
Target vs. Actual Reinvestment Rate
The graph below depicts funding gaps by comparing the target to the current
reinvestment rate. To meet the existing long-term capital requirements, the
Township requires an annual capital investment of $1,599,610, for a target portfolio
reinvestment rate of 3.65%. Currently, annual investment from sustainable
revenue source is $1,546,779, for a current portfolio reinvestment rate of 3.53%.
This leads to an annual infrastructure budget deficit of $52,831. Target and current
re-investment rates by asset category are detailed below.
$1.7m
$1.9m
$2.0m
$3.3m
$16.5m
$18.4m
Vehicles
Land
Improvements
Bridges and
Structural Culverts
Machinery and
Equipment
Road Network
Buildings
Township of the Archipelago
Asset Management Plan 2025
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State of the Infrastructure
Figure 13 Current Vs. Target Reinvestment Rate: Portfolio Overview
3.2.3
Condition of Asset Portfolio
Figure 14 Asset Condition: Portfolio Overview
Figure 14 and Figure 15 summarize asset condition at the portfolio and category
levels, respectively. Based on both assessed condition and age-based analysis,
1.20%
1.57%
3.76%
8.57%
4.75%
8.53%
1.20%
1.57%
3.76%
8.57%
4.43%
8.53%
0%
2%
4%
6%
8%
10%
Bridges and
Structural
Culverts
Buildings
Land
Improvements
Machinery and
Equipment
Road Network
Vehicles
Target Reinvestment Rate
Actual Reinvestment Rate
Very Poor,
$1,952,715
(4%)
Poor,
$3,183,649
(7%)
Fair,
$3,696,899
(8%)
Good,
$14,498,050
(33%)
Very Good,
$20,465,587
(47%)
Township of the Archipelago
Asset Management Plan 2025
30
State of the Infrastructure
90%5 of the Township's infrastructure portfolio is in fair or better condition, with the
remaining 10%5 in poor or lower condition, and an overall condition rating of 77%5.
Typically, assets in poor or lower condition may require replacement or major
rehabilitation in the immediate or short-term. Targeted condition assessments may
help further refine the list of assets that may be candidates for immediate
intervention, including potential replacement or reconstruction.
Similarly, assets in fair condition should be monitored for disrepair over the medium
term. Keeping assets in fair or better condition is typically more cost-effective than
addressing assets needs when they enter the latter stages of their lifecycle or
decline to a lower condition rating, e.g., poor or lower.
Figure 15 Asset Condition: Portfolio Overview by Category
Condition data was available for the majority of the bridges and structural culverts,
road network, and buildings, and most of the machinery and equipment and
vehicles. For all remaining assets, including the majority of the land improvements
assets, age was used as an approximation of condition for these assets. Age-based
5 Average weighted by replacement cost.
$303k
$7.3m
$610k
$719k
$11.5m
$558k
$8.0m
$227k
$182k
$4.4m
$1.2m
$570k
$490k
$146k
$756k
$1.7m
$125k
$691k
$746k
$125k
$697k
$800k
$182k
$31k
$1.6m
$77k
$62k
0%
20%
40%
60%
80%
100%
Vehicles
Road Network
Machinery and
Equipment
Land Improvements
Buildings
Bridges and
Structural Culverts
Value and Percentage of Asset Segments by
Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of the Archipelago
Asset Management Plan 2025
31
State of the Infrastructure
condition estimations can skew data and lead to potential under- or overstatement
of asset needs.
Further, when assessed condition data was available, it was projected to current
year-end (2023). This 'projected condition' can generate lower condition ratings
than those established at the time of the condition assessment. The rate of this
deterioration will also depend on lifecycle curves used to project condition over
time.
As further illustrated in Figure 15 at the category level, the majority of
infrastructure categories are in fair or better condition, based primarily on assessed
condition. See Table 10 for details on how condition data was derived for each asset
segment.
Table 9 Detailed Asset Condition: Portfolio Overview
Asset
Category
≤ Poor $
≤ Poor
%
≥ Fair $
≥ Fair
%
Average
Condition
Bridges &
Structural
Culverts
$800,000
40%
$1,200,000
60%
Good (74%)
Road Network
$721,221
4%
$15,742,774
96%
Good (78%)
Buildings
$758,972
4%
$17,646,733
96%
Very Good
(87%)
Land
Improvements
$202,000
11%
$1,656,544
89%
Good (65%)
Machinery &
Equipment
$2,347,171
70%
$983,136
30%
Poor (36%)
Vehicles
$307,000
18%
$1,431,350
82%
Fair (53%)
TOTAL
$5,136,364
12%
$38,660,536
88%
Good (77%)
Source of Condition Data
This AMP relies on assessed condition for 88% of assets, based on and weighted by
replacement cost. For the remaining assets, age is used as an approximation of
condition. Assessed condition data is invaluable in asset management planning as it
Township of the Archipelago
Asset Management Plan 2025
32
State of the Infrastructure
reflects the true condition of the asset and its ability to perform its functions. Table
10 below identifies the source of condition data used throughout this AMP.
Table 10 Source of Condition Data: Portfolio Overview
Asset Category
% Assessed6
Source of Condition Data
Bridges & Structural Culverts
100%
OSIMs Report
Road Network
95%
2021 Project Tenders
Buildings
96%
Township Staff
Land Improvements
7%
Township Staff
Machinery & Equipment
66%
Township Staff
Vehicles
72%
Township Staff
3.2.4
Risk & Criticality
Using the risk equation and preliminary risk models, Figure 16 shows how assets
across the different asset categories are stratified within the 1-25 risk rating ranges
while Table 11 provides a breakdown of the probability of failure, consequence of
failure, and risk ratings by asset category.
Figure 16 Risk Ratings: Portfolio Overview
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$16,361,000
$14,893,000
$3,860,000
$6,294,000
$2,390,000
(37%)
(34%)
(9%)
(14%)
(5%)
6 Percentage of the assets within the category with condition assessment data, weighted by replacement cost.
Township of the Archipelago
Asset Management Plan 2025
33
State of the Infrastructure
Table 11 Probability of Failure, Consequence of Failure, and Risk Rating: Portfolio
Overview by Category
The analysis shows that based on current risk models, approximately 5% of the
Township's assets, with a current replacement cost of approximately $2.4 million,
carry a risk rating of 15 or higher (red) out of 25. Assets in this group may have a
high probability of failure based on available condition data and age-based
estimates and were considered to be most essential to the Township.
As new asset attribute information and condition assessment data are integrated
with the asset register, asset risk ratings will evolve, resulting in a redistribution of
assets within the risk ranges. Staff should also continue to calibrate risk models.
We caution that since risk ratings rely on many factors beyond an asset's physical
condition or age, assets in a state of disrepair can sometimes be classified as low-
risk, despite their poor condition rating. In such cases, although the probability of
failure for these assets may be high, their consequence of failure ratings were
determined to be low based on the attributes used and the data available.
Similarly, assets with very high condition ratings can receive a moderate to high-
risk rating despite a low probability of failure. These assets may be deemed as
highly critical to the Township based on their costs, economic importance, social
significance, and other factors. Continued calibration of an asset's criticality and
regular data updates are needed to ensure these models more accurately reflect an
asset's actual risk profile.
Asset Category
Probability of
Failure
Consequence
of Failure
Risk Rating
Bridges & Structural Culverts
1.8 / 5
3.2 / 5
4.8 / 25
Road Network
1.67 / 5
3.95 / 5
6.2 / 25
Buildings
1.6 / 5
3.6 / 5
5.3 / 25
Land Improvements
2.28 / 5
2.67 / 5
5.95 / 25
Machinery & Equipment
3.75 / 5
3.48 / 5
13.06 / 25
Vehicles
2.61 / 5
3.55 / 5
8.68 / 25
TOTAL
1.85 / 5
3.65 / 5
6.35 / 25
Township of the Archipelago
Asset Management Plan 2025
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State of the Infrastructure
3.2.5
Forecasted Capital Requirements
Figure 17 Capital Replacement Needs: Portfolio Overview 2025-2074
$1.6m
$4.4m
$8.8m
$8.1m $8.2m
$8.2m
$9.1m
$8.2m
$8.3m
$8.9m
$8.6m
$0
$1m
$2m
$3m
$4m
$5m
$6m
$7m
$8m
$9m
$10m
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
2070 -
2074
Bridges and Structural Culverts
Buildings
Land Improvements
Machinery and Equipment
Road Network
Vehicles
Annual Requirement
Township of the Archipelago
Asset Management Plan 2025
35
State of the Infrastructure
Aging assets require maintenance, rehabilitation, and replacement. Figure 17 below
illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for all asset categories analyzed in this AMP over a 50-year time
horizon. To achieve and maintain the capital replacement needs for the proposed
levels of service, an average of $1.6 million is required each year (red dotted line).
Although actual spending may fluctuate substantially from year to year, this figure
is a useful benchmark for annual capital expenditure targets (or allocations to
reserves) to ensure projects are not deferred and replacement needs are met as
they arise. This figure relies on age and available condition data. Figure 17
illustrates relatively consistent capital requirements for each five-year segment
through the forecast period.
Additionally, there is currently an approximate $890,000 backlog comprised of
assets that remain in service beyond their estimated useful life. The 10-year capital
requirements expanded in Appendix B have accounted for removing this
accumulation and continuing to rehabilitate or replace assets in alignment with the
proposed levels of service. It is unlikely that all such assets are in a state of
disrepair, requiring immediate replacements. This makes continued and expanded
targeted and consistent condition assessments integral. Risk frameworks, proactive
lifecycle strategies, and levels of service targets should continue to be used to
prioritize projects, continuously refining estimates for ongoing capital needs, and
helping to select the right treatment for each asset.
Township of the Archipelago
Asset Management Plan 2025
36
Proposed Levels of Service Analysis
4
Proposed Levels of
Service Analysis
4.1
Overview
4.1.1
O. Reg. 588/17 Proposed Levels of Service
Requirements
The third iteration of municipal Asset Management Plans required under O. Reg.
588/17 requires the evaluation of levels of service (LOS) that includes:
Proposed LOS options (i.e. increase, decrease, or maintain current LOS) and
the risks associated with these options
How the proposed LOS may differ from current LOS.
Whether the proposed LOS are achievable; and
The municipality's ability to afford proposed LOS.
Additionally, a lifecycle management and financial strategy to support the proposed
LOS must be identified for a period of 10 years with specific reporting on:
Identification of lifecycle activities needed to provide the proposed LOS.
Annual costs over the next 10 years to achieve the proposed LOS; and
Identification of proposed funding projected to be available
4.1.2
Considerations
Proposed LOS for the Township have been developed through comprehensive
engagement with Township staff. In order to achieve any target LOS goal, careful
consideration should be given to the following:
Financial Impact Assessments
Assess historical expenditures/budget patterns to gauge feasibility of
increasing budgets to achieve increased service levels
Consider implications of LOS adjustments on other services and other
infrastructure programs (i.e. trade-offs)
Township of the Archipelago
Asset Management Plan 2025
37
Proposed Levels of Service Analysis
Infrastructure Condition Assessments
Regularly assess the condition of critical infrastructure components
Use standardized condition assessment protocols (where possible) to quantify
the state of the infrastructure
Identify non-critical components where maintenance could potentially be
deferred without causing severe degradation
Use current condition metrics as benchmarks to gauge feasibility of large
adjustments to LOS
Service Metrics
Measure user satisfaction, response times, and other relevant indicators for
specific services
Service Impact Assessments
Evaluate potential impacts on user satisfaction and service delivery due to
changes in infrastructure condition
Key Lifecycle Activities
Implement routine maintenance and inspections to ensure infrastructure
reaches its optimal useful life
Monitor and optimize operational processes for efficiency
Regularly review and update preventive maintenance schedules
Prioritize critical infrastructure components for maintenance
Implement cost-saving measures without compromising safety or compliance
Develop strategies for managing and communicating service impacts to
stakeholders
Invest in technology and process improvements to enhance maintenance
efficiency
Upgrade critical infrastructure components to improve overall reliability
Explore opportunities for innovation and efficiency gains
Township of the Archipelago
Asset Management Plan 2025
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Proposed Levels of Service Analysis
Risk Management
Identify potential risks to infrastructure and service quality resulting from
adjusted service levels
Develop contingency plans to address unforeseen challenges without
compromising service quality
Monitor performance closely to ensure that the target investment translates
to the desired infrastructure condition
Infrastructure Condition Enhancements
Identify areas for improvement and increased maintenance to enhance
overall infrastructure condition
Timelines
Although O. Reg. 588/17 requires evaluation of expenditures for a 10-year
period in pursuit of proposed LOS, it does not require municipalities to
achieve the LOS within this 10-year timeframe (ex. a municipality may have
a goal to reach X% condition by 2050, the AMP is required to review the first
10 years of the strategy to reach this goal)
Careful consideration should be given to setting realistic targets for when
proposed service levels can be achieved.
Stakeholder Engagement
It is recommended to ensure adjustments to LOS are not made in isolation
and without consultation of various stakeholders. This could include, but is
not limited to:
-
Department Heads/Infrastructure Managers
-
Residents
-
Service Users
-
Council
Efforts should be made to communicate changes to LOS transparently to all
affected stakeholders
Flexibility
Priorities may change over time due to a variety of factors, such as:
Township of the Archipelago
Asset Management Plan 2025
39
Proposed Levels of Service Analysis
-
Financial state of the municipality
-
Availability of grants
-
Significant increases or decreases in population
-
Changes in political priorities
-
Changes in resident priorities
-
New technologies
-
Changes in legislation
Any proposed changes to LOS should be flexible and able to adapt to changes
listed above, and other unforeseen circumstances
4.2
Proposed Levels of Service Scenarios
The three scenarios outlined in the following section were analyzed as options for
proposed service levels for all categories included in this Asset Management Plan.
Although all three scenarios were considered, the Township adopted a
segment-by-segment approach in determining its path forward. In most
cases, the baseline condition was maintained, while a 5% reduction from
the baseline was applied to select segments.
4.2.1
Scenario Development & Selection
The Township adopted a practical and data-informed approach to determine its
proposed LOS for each segment within the six asset categories. This process
ensures that service delivery remains reliable over the long term while also
balancing affordability and infrastructure needs
To begin, the Township used the current average condition of each asset group
(such as roads, buildings, and other municipal infrastructure) as a reference point
to help determine appropriate baseline condition targets. However, these current
conditions were used as a guide rather than a fixed rule. In some cases, a more
consistent and strategic target was applied--for instance, setting a 70% condition
target for all Township buildings rather than creating a separate target for each
facility.
Once these baseline condition targets were confirmed (see Table 12 below), the
Township used the Decision Support (DS) module within the Citywide Asset
Management software to model different asset management scenarios over a 50-
Township of the Archipelago
Asset Management Plan 2025
40
Proposed Levels of Service Analysis
year period. These scenarios were built to maintain the selected baseline condition
as the service level goal and determine the resulting AAR7.
Table 12 Baseline Conditions: PLOS
7 For further clarification on Average Annual Requirement (AAR), see section 2.3.5 Average Annual Requirement.
Category
Segment
Baseline Condition
Bridges & Structural
Culverts
Bridges
83%
Structural Culverts
55%
Road Network
HCB + Culverts
70%
LCB + Culverts
69%
Signs
17%
Buildings
Community and Culture
70%
General Government
70%
Health
70%
Public Works
70%
Washrooms
70%
Waste Management
70%
Land Improvements
Cemetery
59%
Marine
74%
Parking Lots
39%
Recreation
43%
Towers
82%
Waste Management
47%
Machinery & Equipment
Furniture and Fixtures
28%
Public Works
40%
Waste Management
91%
Heavy Duty
49%
Township of the Archipelago
Asset Management Plan 2025
41
Proposed Levels of Service Analysis
The DS tool helps predict when assets will need major rehabilitation or
replacement. When an asset reaches the point where work is recommended, the
software checks whether completing that work would cause the overall average
condition of all assets in the scenario to fall below the target. If the target
would still be met without immediate action, the work is deferred to the following
year and reviewed again. This method reduces unnecessary spending by allowing
the Township to postpone work that is not yet critical--without lowering the overall
quality of service.
To fully explore options and potential impacts, the Township also modeled three
alternative scenarios:
A 5% reduction in the average condition target to see how a lower standard
might reduce costs or affect service quality
A 5% increase to explore the cost and benefit of delivering a higher service
level
A no-target scenario, where assets are replaced immediately once they reach
their end-of-life, with no consideration for overall system condition or
available budget. This approach results in the highest annual cost and is
generally considered less sustainable
These four scenarios--maintaining, lowering, raising, or removing the condition
target--were compared side by side. They provided insight into how different
strategies would affect long-term costs, asset performance, and service reliability.
Following this analysis, and after receiving feedback from both Township staff and
the community, the most suitable proposed LOS were selected. These reflect a
balance between public expectations, financial responsibility, and long-term
sustainability.
Table 13 provides the AAR for each of the scenarios outlined above. The final
selection for each segment is highlighted in green.
Category
Segment
Baseline Condition
Vehicles
Light Duty
50%
Marine
32%
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Asset Management Plan 2025
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Proposed Levels of Service Analysis
Table 13 AAR for Scenarios: PLOS
Category
Segment
Average Annual Requirement
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Bridges &
Structural
Culverts
Bridges
-
-
-
$16,000
Structural Culverts
$24,020
$24,020
$24,020
$30,825
Total
$24,020
$24,020
$24,020
$46,825
Road Network
HCB + Culverts
$331,491
$361,957
$365,038
$432,002
LCB + Culverts
$399,490
$416,806
$416,806
$409,274
Signs
$2,985
$3,780
$4,576
$4,056
Total
$733,966
$782,544
$786,420
$845,332
Buildings
Community and
Culture
$118,919
$125,685
$126,285
$216,452
General Government
$66,090
$68,717
$68,717
$102,951
Health
$21,852
$22,058
$22,058
$37,203
Public Works
$66,285
$66,505
$66,593
$95,903
Washrooms
$3,627
$3,627
$3,627
$4,625
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Proposed Levels of Service Analysis
Category
Segment
Average Annual Requirement
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Waste Management
$10,044
$10,044
$10,044
$13,822
Total
$286,817
$296,637
$297,326
$470,955
Land
Improvements
Cemetery
$1,510
$1,510
$1,510
$1,540
Marine
$25,629
$25,629
$25,629
$26,751
Parking Lots
$4,706
$4,706
$4,706
$4,500
Recreation
$17,745
$18,627
$18,627
$23,375
Towers
$5,294
$5,294
$5,294
$8,083
Waste Management
$13,882
$14,196
$14,824
$15,660
Total
$68,766
$69,963
$70,590
$79,909
Machinery &
Equipment
Furniture and Fixtures
$48,941
$60,922
$72,764
$120,072
Public Works
$195,682
$221,742
$244,918
$249,766
Waste Management
$2,706
$2,706
$2,706
$3,067
Total
$247,329
$285,370
$320,388
$369,838
Vehicles
Heavy Duty
$83,662
$83,662
$83,662
$90,372
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Proposed Levels of Service Analysis
Category
Segment
Average Annual Requirement
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Light Duty
$48,745
$48,745
$48,745
$57,250
Marine
$14,157
$15,863
$18,353
$25,192
Total
$146,564
$148,270
$150,760
$172,814
TOTAL
$1,507,462
$1,606,802
$1,649,503
$1,988,740
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Proposed Levels of Service Analysis
4.2.2
Lifecycle Changes
The current lifecycle strategy remains appropriate, as it is based on the overall
average condition of the Township's assets. No immediate changes to the strategy
are necessary.
However, to better align with target condition levels, it is recommended to adjust
the timing of specific maintenance and renewal activities to follow the 10-year
capital requirements as outlined in Appendix B. By scheduling these interventions
during optimal periods--when they are most effective and cost-efficient--the
Township can enhance asset performance and extend their service life.
This proactive approach will allow the Township to maintain high service standards
and fiscal responsibility while following the existing strategy. Regular monitoring
will ensure that these timing adjustments continue to meet the Township's evolving
infrastructure needs.
4.2.3
Affordability/Achievability
As the AAR closely corresponds to the Township's current capital budget, the
selected proposed LOS are achievable.
For a more in-depth breakdown, see Section 12.
4.2.4
Changes to Community and Technical Levels of
Service
The Township does not anticipate any changes to qualitative community levels of
services for any of the asset categories included within this AMP. All asset
categories will see adjustments to their technical levels of service over time,
particularly relating to the average condition of assets. Refer to each asset category
for more details
4.2.5
Proposed LOS Risks
The majority of the proposed LOS are designed to maintain existing, or baseline,
asset conditions. As a result, the implementation of these scenarios does not
introduce any new or additional risks to service delivery.
The risk profile associated with each asset category remains unchanged. Previously
identified risks--such as those related to aging infrastructure and environmental
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Asset Management Plan 2025
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Proposed Levels of Service Analysis
factors--continue to apply under the proposed approach. These risks have already
been evaluated and documented as part of the Township's overall asset
management planning.
By focusing on maintaining current asset conditions rather than improving or
reducing service levels, the Township can continue to deliver consistent service
without increasing exposure to unforeseen operational or financial risks. This also
allows for more predictable long-term planning and resource allocation.
Ongoing monitoring and regular updates to the risk register will ensure that any
changes in asset performance or external conditions are promptly addressed.
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Asset Management Plan 2025
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Proposed Levels of Service Analysis
Category Analysis:
Core Assets
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Bridges & Structural Culverts
5
Bridges & Structural
Culverts
The Township's transportation network includes bridges and structural culverts,
with a current replacement cost of $2.0 million.
5.1
Inventory & Valuation
Table 14 summarizes the quantity and current replacement cost of bridges and
structural culverts. The Township owns and manages one bridge and two structural
culverts.
Table 14 Detailed Asset Inventory: Bridges & Structural Culverts
8 Average Annual Capital Requirement (AAR). For further detail, see section 2.3.5 Average Annual Requirement.
9 Bridge replacement is scheduled for 2080, which is outside of the 50-year assessment window used for this AMP.
Segment
Quantity
Unit of
Measure
Replacement
Cost (RC)
Primary RC
Method
AAR8
Bridges9
1
Assets
$1,200,000
User-Defined
-
Structural
Culverts
2
Assets
$800,000
User-Defined
$24,020
TOTAL
3
Assets
$2,000,000 User-Defined $24,020
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Bridges & Structural Culverts
Figure 18 Portfolio Valuation: Bridges & Structural Culverts
5.2
Asset Condition
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Township's current approach:
Condition assessments of all culverts with a span greater than or equal to 3
meters are completed every 2 years in accordance with the Ontario Structure
Inspection Manual (OSIM). OSIM reports are completed by external
consultants
Internal staff conduct monthly drive-by condition assessments to ensure
there are no safety hazards
In this AMP, the following rating criteria, in alignment with the industry standard
Bridge Condition Index (BCI), is used to determine the current condition of bridge
and structural culvert assets and forecast future capital requirements:
Bridges,
$1,200,000,
(60%)
Structural
Culverts,
$800,000,
(40%)
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Bridges & Structural Culverts
Table 15 Bridge Condition Index (BCI) Ranges
Condition
Ranges (BCI)
Description
Very Good
(90 - 100)
New or recently rehabilitated structure, with no significant
defects.
Deck, beams, bearings, and abutments in excellent
condition, with no visible wear.
Efficient drainage, minimal surface wear, and no corrosion
issues.
Meets or exceeds all safety and design standards.
Minimal maintenance required beyond routine inspections.
Good
(70 - 90)
Minor surface wear and some cosmetic deterioration, such
as light scaling or superficial cracking.
Deck, joints, and bearings in good working condition, with
no major structural concerns.
Minimal corrosion or wear on steel and concrete elements.
Routine inspections and preventive maintenance needed to
extend lifespan.
No major rehabilitation required in the near future.
Fair
(60 - 70)
Moderate wear and surface deterioration, including minor
cracking, spalling, and some exposed reinforcing steel.
Deck and joints in functional condition, but requiring
increased maintenance.
Bearings, beams, and abutments showing early signs of
corrosion or wear.
No immediate safety concerns, but planning for future
rehabilitation needed.
Regular maintenance and potential repairs required to
maintain serviceability.
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Bridges & Structural Culverts
Figure 19 summarizes the replacement cost-weighted condition of the Township's
bridges and structural culverts. Based on the Township's recent Ontario Structures
Inspection Manual (OSIM) assessments, 100% of bridges and structural culverts
are in fair or better condition. Some elements or components of these structures
may be candidates for replacement or rehabilitation in the medium term and should
be monitored for further degradation in condition. While none of the bridges and
structural culverts portfolio is currently in poor or lower condition, assets
components reaching this condition rating in the future may require replacement in
the immediate or short term.
Condition
Ranges (BCI)
Description
Poor
(40 - 60)
Advanced deterioration of structural components, with
noticeable concrete scaling, cracking, or steel corrosion.
Deck, beams, or bearings showing significant wear,
affecting bridge performance.
Localized section loss on steel or concrete elements,
requiring close monitoring.
Possible minor load restrictions, but structure remains
functional.
Major rehabilitation or strengthening required in the near
term.
Very Poor
(0 - 40)
Severe structural deterioration, including major section
loss, deep cracking, and exposed or corroded reinforcing
steel.
Significant deck and beam damage, with failing expansion
joints, delaminated concrete, and spalling.
Major safety concerns, including load restrictions or risk of
failure.
Frequent water leakage and erosion, undermining
abutments or footings.
Immediate rehabilitation or full replacement required.
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Bridges & Structural Culverts
Figure 19 Asset Condition: Bridges & Structural Culverts
As further detailed in Table 16, based on in-field condition assessments from the
most recent OSIMs report, all assets were identified as being in fair or better
condition. Bridges and structures with a poor or lower rating (i.e., a bridge
condition index of less than 60) are not necessarily unsafe for regular use. The
OSIM ratings are designed to identify repairs needed to elevate condition ratings to
a fair or higher.
Table 16 Asset Condition: Bridges & Structural Culverts by Segment
Asset
Category
≤ Poor $
≤ Poor
%
≥ Fair $
≥ Fair
%
Average
Condition10
Bridges
-
0%
$1,200,000
100%
Good (85%)
Structural
Culverts
-
0%
$800,000
100%
Poor (57%)
TOTAL
-
0%
$2,000,000 100%
Good (74%)
5.3
Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or
design life; and the percentage of EUL consumed. The EUL is the serviceable
lifespan of an asset during which it can continue to fulfil its intended purpose and
10 Weighted by replacement cost.
$1.2m
$800k
0%
20%
40%
60%
80%
100%
Structural
Culverts
Bridges
Value and Percentage of Asset Segments by
Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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Bridges & Structural Culverts
provide value to users, safely and efficiently. As assets age, their performance
diminishes, often more rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential
replacement spikes.
Table 17 summarizes and Figure 20 illustrates the average current age of each
asset type and its estimated useful life. Both values are weighted by the
replacement cost of individual assets.
Table 17 Detailed Asset Age: Bridges & Structural Culverts
Figure 20 Estimated Useful Life vs. Asset Age: Bridges & Structural Culverts
Age analysis reveals that on average, bridges have consumed the majority of their
estimated useful life, with an average age of 59 years against an average EUL of 75
years. On average, structural culverts are about three quarters through the latter
stages of their lifecycle, with an average age of 26 years, against an average EUL of
40 years.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
59
26
75
40
0
20
40
60
80
Bridges
Structural Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
Segment
Weighted Average EUL Weighted Average Age
Bridges
75
59
Structural Culverts
40
26
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Bridges & Structural Culverts
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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
OSIM assessments should continue to be used in conjunction with age and asset
criticality to prioritize capital and maintenance expenditures.
5.4
Current Approach to Lifecycle
Management
The condition or performance of most assets will deteriorate over time. To ensure
that the Township's bridges and structural culverts 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
for bridges and structural culverts assets.
Table 18 Lifecycle Management Strategy: Bridges & Structural Culverts
Activity Type
Description of Current Strategy
Maintenance
Biennial OSIM inspection reports include a list of recommended
maintenance activities that the Township considers and
completes according to cost and urgency.
Rehabilitation /
Replacement
All lifecycle activities are driven by the results of mandated
structural inspections completed according to the Ontario
Structure Inspection Manual (OSIM). Major repairs and
replacements are subject to budget constraints, condition
ratings, health and safety concerns, and other risks to prioritize
work.
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Bridges & Structural Culverts
5.5
Forecasted Long-Term Replacement
Needs
Figure 21 illustrates the cyclical short-, medium- and long-term infrastructure
rehabilitation and replacement requirements for the Township's bridges and
structural culverts. This analysis was run from 2025 until 2074 (a 50-year
timespan) for assets included in Citywide Assets, the Township's primary asset
management system and asset register. As the replacement of the Township's
bridge is not scheduled until 2080, it is outside of the date ranges shown in the
Figure.
The Township's average annual requirements (red dotted line) for bridges and
structural culverts total $24,020. Although actual spending may fluctuate
substantially from year to year, this figure is a useful benchmark value for annual
capital expenditure targets (or allocations to reserves) to ensure projects are not
deferred and replacement needs are met as they arise.
Although no major replacements are anticipated for the next 5 years, capital needs
spike in 2030-2034, 2040-2044, and 2060-2064 as structural culvert assets reach
the end of their useful life. These projections and estimates are based on asset
replacement costs, age analysis, and condition data. They are designed to provide a
long-term, portfolio-level overview of capital needs and should be used to support
improved financial planning over several decades.
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Bridges & Structural Culverts
Figure 21 Forecasted Capital Replacement Needs: Bridges & Structural Culverts
2025-2074
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be
replaced. However, quantifying and monitoring these spikes is essential for long-
term financial planning, including establishing dedicated reserves. OSIM condition
assessments and a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B.
5.6
Risk Analysis
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.
5.6.1
Quantitative Risk
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the bridges and
structural culverts assets based on 2023 inventory data. See Appendix D for the
criteria used to determine the risk rating of each asset.
$24k
$425k
$400k
$400k
$0
$150k
$300k
$450k
Bridges
Structural Culverts
Annual Requirement
Total
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Bridges & Structural Culverts
Figure 22 Risk Matrix: Bridges & Structural Culverts
Consequence of Failure
5
4
1 Assets
$1,200,000
3
2
2 Assets
$800,000
1
1
2
3
4
5
Probability of Failure
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from
1-25. Assets with the highest criticality and likelihood of failure receive a risk rating
of 25; those with lowest probability of failure and lowest criticality carry a risk
rating of 1. As new data and information is gathered, the Township may consider
integrating relevant information that improves confidence in the criteria used to
assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database
(Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section
2.3.8 Evaluating Quantitative Risk for further details on the approach used to
determine asset risk ratings and classifications.
The following risk ratings are first shown for the overall category and then by
segment for the bridges and structural culverts assets.
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Bridges & Structural Culverts
Figure 23 Risk Rating Ranges: Bridges & Structural Culverts
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$1,200,000
$800,000
-
-
-
(60%)
(40%)
(0%)
(0%)
(0%)
Table 19 Probability of Failure, Consequence of Failure, Risk Ratings: Bridges &
Structural Culverts by Segment
Overall, the average risk rating for bridges and structural culverts is 4.8, which is
considered Very Low.
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.
5.6.2
Qualitative Risk
In addition to asset level risk, the Township may also face risk associated with not
executing key lifecycle activities, including repairs, rehabilitation, and replacement
of critical assets. These include:
Missed opportunities for cost savings and increases in lifecycle costs
Deferral of vital projects, or further lending and borrowing
Accelerated asset deterioration and premature failure, which may lead to
public health and safety hazards, and disruption of services to the Township's
residential and commercial base
Asset Category
Probability of
Failure
Consequence of
Failure
Risk Rating
Bridges
1 / 5
4 / 5
4 / 25
Structural Culverts
3 / 5
2 / 5
6 / 25
TOTAL
1.8 / 5
3.2 / 5
4.8 / 25
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Bridges & Structural Culverts
A decline in public satisfaction with the Township's service standards and the
resulting reputational damage
Bridges are inherently vital to the Township's transportation infrastructure,
and their failures can disconnect communities, lead to public health and
safety incidents, and can impede the efficient flow of residential and
commercial traffic
An asset's criticality rating, determined by the nature and magnitude of the
consequences of its potential failure should be used to prioritize projects,
particularly lifecycle management strategies. Using risk in conjunction with levels of
service, and the recommended workplans in OSIM inspections, can assist in
optimizing limited funds.
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Aging Infrastructure and Growth
The Township recently completed a significant bridge revitalization
project, which included the installation of a new bridge deck and
associated concrete repairs. This investment reflects the Township's
proactive approach to managing aging infrastructure, particularly
structures built prior to municipal incorporation. To support safety
and longevity, consultants have been engaged to assess bridge
capacities and identify any emerging concerns. With ongoing growth
and increased traffic--particularly from heavy-duty vehicles--these
structures are being continuously monitored to ensure their
continued safe operation.
Climate Change & Extreme Weather Events
Flooding and extreme weather events are becoming increasingly
frequent, posing a risk to key structural elements such as culverts.
Intense precipitation accelerates the deterioration of these
components, reducing their lifespan and effectiveness. The
Township continues to apply proactive asset management strategies
to address these impacts, integrating climate adaptation
considerations into maintenance planning and future capital
investments.
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Bridges & Structural Culverts
5.7
Current Levels of Service
The tables that follow summarize the Township's current levels of service with
respect to prescribed KPIs under Ontario Regulation 588/17 as well as any
additional performance measures that the Township has selected for this AMP.
5.7.1
Community Levels of Service
Table 20 O. Reg. 588/17 Community Levels of Service: Bridges & Structural
Culverts
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description of the traffic that is
supported by Township bridges
(e.g., heavy transport vehicles,
motor vehicles, emergency
vehicles, pedestrians, cyclists)
The traffic supported by municipal
bridges is aligned with the
dimensional load limits of Class
5/6 roadways. Municipal bridges
have no sidewalks.
Quality
Description or images of the
condition of bridges & culverts
and how this would affect use
of the bridges & culverts
See Appendix C. Bridges and
culverts are in generally fair or
better condition and full use is
allowed.
5.7.2
Technical Levels of Service
Table 21 O. Reg. 588/17 Technical Levels of Service: Bridges & Structural Culverts
Service
Attribute
Technical Metric
Current LOS
(2023)
Scope
% of bridges in the Township with loading or
dimensional restrictions
0%
Quality
Average bridge condition index value for
bridges in the Township
Good (85%)
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Bridges & Structural Culverts
Service
Attribute
Technical Metric
Current LOS
(2023)
Average bridge condition index value for
structural culverts in the Township
Poor (57%)
Performance
% of assets in fair or better condition
60%
% of assets in poor or lower condition
40%
Actual annual capital budget : average
required annual capital requirements
$24,020 : $24,020
(1 : 1)
5.8
Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider
proposed levels of service (LOS), discuss the associated risks and long-term
sustainability of these service levels, and explain the Township's ability to afford the
proposed LOS.
Table 22 outlines the proposed LOS scenarios that were analyzed for bridges and
structural culverts. Further explanation and proposed LOS analysis at the portfolio
level can be found in Section 4 Proposed Levels of Service Analysis.
Table 22 Proposed LOS: Bridges & Structural Culverts
Segment
Average Annual Requirement
Selection
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Bridges
78%
83%
88%
-
Maintain
-
-
- $16,000.00
Structural
Culverts
50%
55%
60%
-
Maintain
$24,020
$24,020
$24,020
$20,000
TOTAL
$24,020
$24,020
$24,020
$36,000
$24,020
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Road Network
6
Road Network
The Township's road network has a current replacement cost of $16.5 million,
distributed primarily between HCB11 and LCB12 roads. The Township also owns and
manages other supporting infrastructure and capital assets, including small culverts
and signage.
6.1
Inventory & Valuation
Table 23 summarizes the quantity and current replacement cost of the Township's
various road network assets as managed in its primary asset management register,
Citywide.
Table 23 Detailed Asset Inventory: Road Network
11 HCB refers to High Class Bituminous paved surfaced, meaning asphalt.
12 LCB refers to Low Class Bituminous paved surface, meaning asphalt emulsion and chip--commonly known as tar
and chip.
13 Average Annual Capital Requirement (AAR). For further detail, see section 2.3.5 Average Annual Requirement.
14 The AAR for small culverts has been distributed between HCB and LCB roads dependent upon location.
Segment
Quantity
Unit of
Measure
Replacement
Cost (RC)
Primary RC
Method
AAR13
HCB
26.3
KM
$9,775,980
Cost per Unit
$361,957
LCB
30.6
KM
$5,916,732
Cost per Unit
$416,806
Signs
3
Assets
$40,560
CPI
$3,780
Small
Culverts14
4,605
Feet
$730,722
Cost per Unit
-
TOTAL
$16,463,995 Cost per Unit $782,544
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Road Network
Figure 24 Portfolio Valuation: Road Network
6.2
Asset Condition
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Township's current approach:
A street scan was completed by external consultants in 2018-2019 that
included a detailed assessment of the condition of each road segment
Municipal staff conduct bi-weekly visual inspections to assess the overall
condition and presence of defects for all road assets including asphalt,
surface treated, and gravel roads
In the winter months, municipal staff complete additional road patrols based
on their Winter Maintenance Policy and legal requirements
Mostly, road patrols are used to gauge the condition of the roads and
determine whether mid-life activities or replacement are required. If there is
nearby work taking place, then the Township may capitalize to complete road
repairs while the area is closed
In this AMP, the following rating criteria is used to determine the current condition
of road network assets and forecast future capital requirements:
HCB,
$9,775,980,
(59%)
LCB,
$5,916,732,
(36%)
Small Culverts,
$730,722, (4%)
Signs, $40,560, (<1%)
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Road Network
Table 24 Condition Ranges: Paved Roads - Road Network
Condition
Ranges
Description
Very Good
(80% -
100%)
New or recently rehabilitated pavement, with no significant
defects.
Smooth surface with no visible cracks, rutting, or
deterioration.
Excellent drainage and stable shoulders.
Minimal maintenance required beyond routine inspections.
Long expected service life with preventive maintenance.
Good
(70% - 80%)
Minor cracking and minimal surface distress, with good ride
quality.
No significant rutting or potholes.
Drainage functioning well, with stable shoulders and
ditches.
Periodic crack sealing or surface treatment can maintain
condition.
No major rehabilitation required in the near future.
Fair
(65% - 70%)
Moderate cracking, surface wear, and minor rutting, but
road remains serviceable.
Some patched areas and minor potholes, but no immediate
safety risks.
Drainage mostly functional, with some minor erosion or
edge distress.
Surface treatments or overlays needed to extend pavement
life.
Routine maintenance required to slow further deterioration.
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Road Network
As illustrated in Figure 25, the majority of the Township's road network asset
categories are in fair or better condition; however, the majority of the signs are in
very poor condition.
Condition
Ranges
Description
Poor
(45% - 65%)
Major cracking and moderate to severe rutting, affecting
ride quality.
Widespread patching and pothole formation, requiring
frequent repairs.
Drainage issues and edge failures, leading to erosion and
shoulder deterioration.
Structural integrity weakened, with potential load
restrictions.
Requires resurfacing or deep rehabilitation to restore
function.
Very Poor
(0% -45%)
Severe pavement failures, including large potholes, deep
rutting, and widespread alligator cracking.
Significant surface distortion and heaving, making travel
unsafe.
Extensive base failure, with visible pumping, settlement,
and subgrade exposure.
Frequent maintenance required, but rehabilitation is no
longer cost-effective.
Requires full-depth reconstruction or major rehabilitation.
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Road Network
Figure 25 Asset Condition: Road Network
Table 63 summarizes the replacement cost-weighted condition of the Township's
road network portfolio. Based primarily on assessed condition data, 93% of road
network portfolio is in good or better condition, with the remaining 7% in fair or
lower condition. However, the majority of the signs are in very poor condition (less
than 1% of the total road network portfolio). These assets may be candidates for
replacement in the short term; similarly, assets in fair condition may require
rehabilitation or replacement in the medium term and should be monitored for
further degradation in condition.
Table 25 Asset Condition: Road Network by Segment
Asset
Category
≤ Poor $
≤ Poor
%
≥ Fair $
≥ Fair
%
Average
Condition15
HCB
-
0%
$9,775,980
100%
Very Good (81%)
LCB
$421,420
7%
$5,495,312
93%
Good (76%)
Signs
$30,560
75%
$10,000
25%
Very Poor (19%)
Small Culverts
$269,241
37%
$461,482
63%
Good (62%)
TOTAL
$721,221
4%
$15,742,774
96%
Good (78%)
15 Weighted by replacement cost.
$293k
$7.0m
$138k
$10k
$5.0m
$2.8m
$31k
$460k
$269k
$421k
$31k
0%
20%
40%
60%
80%
100%
Small Culverts
Signs
LCB
HCB
Value and Percentage of Asset Segments by
Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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Road Network
Condition data was available for 95% of road network, based on replacement costs;
age was used to estimate condition for the remaining 5% of assets.
6.3
Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or
design life; and the percentage of EUL consumed. The EUL is the serviceable
lifespan of an asset during which it can continue to fulfil its intended purpose and
provide value to users, safely and efficiently. As assets age, their performance
diminishes, often more rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential long-
term replacement spikes.
Table 26 summarizes and Figure 26 illustrates the average current age of each
asset type and its estimated useful life. Both values are weighted by the
replacement cost of individual assets.
Table 26 Detailed Asset Age: Road Network
Segment
Weighted Average EUL Weighted Average Age
HCB
20
15
LCB
15
7.3
Signs
10
17.6
Small Culverts
20
9.5
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Road Network
Figure 26 Estimated Useful Life vs. Asset Age: Road Network
Age analysis shows that the majority of HCB roads have entered the latter stages of
their expected useful life, with an average age of 15 years against a design life of
20 years. LCB roads and small culverts are around the midpoint of their design lives
while signs continue to remain in service well beyond their expected useful life.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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. Further, useful life estimates established
as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
6.4
Current Approach to Lifecycle
Management
The condition or performance of most assets will deteriorate over time. This process
is affected by a range of factors including asset characteristics, location, utilization,
maintenance history and environment.
The following lifecycle strategies have been developed as a proactive approach to
managing the lifecycle of HCB and LCB roads. Instead of allowing the roads to
15
7.3
17.6
9.5
20
15
10
20
0
5
10
15
20
25
HCB
LCB
Signs
Small Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
Township of the Archipelago
Asset Management Plan 2025
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Road Network
deteriorate until replacement is required, strategic rehabilitation is expected to
extend the service life of roads at a lower total cost.
Table 27 Lifecycle Management Strategy: Road Network (HCB Roads)
Table 28 Lifecycle Management Strategy: Road Network (LCB Roads)
Asphalt Roads (HCB)
Event Name
Event Class
Event Trigger
Crack Sealing
Preventative Maintenance
Every 2 Years, 4 times
Patching
Maintenance
Every 5 Years, 4 times
Full Reconstruction
Replacement
40 Condition
Surface Treated Roads (LCB)
Event Name
Event Class
Event Trigger
Cold Patch & Slurry Seal
Preventative Maintenance
Every 5 Years, 2 times
Full Reconstruction
Replacement
30 to 40 Condition
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Road Network
Note that it is assumed approximately 15% of the road asset will be patched or
sealed during maintenance activities.
The following table outlines the Township's current lifecycle management strategy
for road network assets.
Table 29 Lifecycle Management Strategy: Road Network
Surface Treated Roads (LCB)
Activity
Type
Description of Current Strategy
Maintenance
Maintenance activities for roads include winter maintenance such
as snow removal and salt/sand for ice removal as needed. Frost
heave excavations take place when needed on a planned basis.
Gravel roads are graded annually and dust suppressant is applied
during the spring. Re-gravelling occurs as-needed, approximately
every 3-5 years.
Pothole patching, shoulder grading, shoulder breakage
resurfacing, line painting, and crack sealing are all carried out
according to the conditions determined by internal route patrols.
Rehabilitation
Rehabilitation activities are not carried out.
Replacement
Replacement activities are prioritized based on condition
assessments. Currently, the Township's approach is proactive.
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Road Network
6.5
Forecasted Long-Term Replacement
Needs
Figure 13 illustrates the cyclical short-, medium- and long-term infrastructure
rehabilitation and replacement requirements for the Township's road network. This
analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in
Citywide Assets, the Township's primary asset management system and asset
register. The Township's average annual requirements (red dotted line) total
$782,543 for all assets in the road network category. Although actual spending may
fluctuate substantially from year to year, this figure is a useful benchmark value for
annual capital expenditure targets (or allocations to reserves) to ensure projects
are not deferred and replacement needs are met as they arise.
Figure 27 Forecasted Capital Replacement Needs: Road Network 2025-2074
$783k
$1.4m
$5.5m
$4.3m
$3.3m
$4.8m
$5.8m
$2.4m
$1.9m
$5.5m
$4.8m
$0
$1m
$2m
$3m
$4m
$5m
$6m
$7m
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
2070 -
2074
HCB
LCB
Signs
Small Culverts
Annual Requirement
Total
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Road Network
The chart illustrates substantial capital needs through the forecast period with
fluctuations ranging from $1.4 million to $5.8 million capital requirements for each
five-year segment.
Additionally, there is currently an approximate $30,560 backlog for sign assets that
remain in service beyond their estimated useful life. The 10-year capital
requirements expanded in Appendix B have accounted for removing this
accumulation and continuing to rehabilitate or replace assets in alignment with the
proposed levels of service.
These projections are based on asset replacement costs, age analysis, and
condition data when available, as well as lifecycle modeling (roads only). They are
designed to provide a long-term, portfolio-level overview of capital needs and
should be used to support improved financial planning over several decades.
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be
replaced. However, quantifying and monitoring these spikes is essential for long-
term financial planning, including establishing dedicated reserves. Regular
pavement condition assessments and a robust risk framework will ensure that high-
criticality assets receive proper and timely lifecycle intervention, including
replacements.
A summary of the 10-year replacement forecast can be found in Appendix B.
6.6
Risk Analysis
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
6.6.1
Quantitative Risk
The following risk matrices provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the road
network assets based on 2023 inventory data. See Appendix D for the criteria used
to determine the risk rating of each asset.
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Road Network
Figure 28 Risk Matrix: Road Network (HCB Roads)
Consequence of Failure
5
3 Assets
12,572 m
$4,666,778
1 Asset
4,066 m
$1,509,139
4
3 Assets
5,065 m
$1,879,982
1 Asset
1,991 m
$739,121
3
1 Asset
862 m
$319,953
1 Asset
1,003 m
$372,234
2
1 Asset
335 m
$124,395
1
3 Assets
380 m
$140,912
1 Asset
63 m
$23,466
1
2
3
4
5
Probability of Failure
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Road Network
Figure 29 Risk Matrix: Road Network (LCB Roads)
Consequence of Failure
5
1 Asset
11,667 m
$2,253,395
4
1 Asset
3,187 m
$615,454
3
1 Asset
1,993 m
$384,945
1 Asset
1,320 m
$254,888
1 Asset
2,182 m
$421,420
2
1 Asset
567 m
$109,527
2 Assets
1,518 m
$293,114
6 Assets
4,588 m
$886,069
1
1 Asset
170 m
$32,901
1 Asset
109 m
$21,047
15 Assets
3,334 m
$643,972
1
2
3
4
5
Probability of Failure
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Road Network
Figure 30 Risk Matrix: Road Network (Remaining Assets)
Consequence of Failure
5
1 Asset
$30,560
4
3
2
1 Asset
$7,000
1
31 Assets
$292,706
22 Assets
$141,010
3 Assets
$30,766
38 Assets
$269,241
1
2
3
4
5
Probability of Failure
The matrices stratify assets based on their individual probability and consequence
of failure, each scored from 1 to 5. Their product generates a risk index ranging
from 1-25. Assets with the highest criticality and likelihood of failure receive a risk
rating of 25; those with lowest probability of failure and lowest criticality carry a
risk rating of 1. As new data and information is gathered, the Township may
consider integrating relevant information that improves confidence in the criteria
used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database
(Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section
2.3.8 Evaluating Quantitative Risk for further details on the approach used to
determine asset risk ratings and classifications.
The following risk ratings are first shown for the overall category and then by
segment for the road network assets.
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Road Network
Figure 31 Risk Rating Ranges: Road Network
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$4,756,452
$6,138,454
$1,354,575
$4,183,955
$30,560
(29%)
(37%)
(8%)
(25%)
(<1%)
Table 30 Probability of Failure, Consequence of Failure, Risk Ratings: Road Network
by Segment
Overall, the average risk rating for road network assets is 6.2, which is considered
Low.
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
6.6.2
Qualitative Risk
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Climate Change
In recent years, Township staff have observed a noticeable increase
in frost heaving, which is affecting the condition of the road
Asset Category
Probability of
Failure
Consequence of
Failure
Risk Rating
HCB
1.28 / 5
4.49 / 5
5.7 / 25
LCB
2.22 / 5
3.41 / 5
7.41 / 25
Signs
4.26 / 5
4.19 / 5
19.67 / 25
Small Culverts
2.38 / 5
1 / 5
2.38 / 25
TOTAL
1.67 / 5
3.95 / 5
6.2 / 25
Township of the Archipelago
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Road Network
network. Winter weather has also resulted in more frequent snow
plowing, which places additional stress on road surfaces. Heavy
rainfall events have caused issues such as shoulder washouts and
sections of roadway being undermined. In some cases, water levels
during extreme storms have risen above road surfaces. Given the
Township's location near Georgian Bay, it is important to consider
the increasing impact of climate-related events when planning for
road maintenance and infrastructure upgrades.
Past Design Concerns and Aging Infrastructure
Some parts of the road network are reaching the end of their
expected service life, which means the Township may face higher
costs for replacements over the coming years. That said, there is a
replacement and rehabilitation schedule in place that spreads out
this work over time. Township staff are confident they can manage
these infrastructure needs effectively with the current plan.
Growth
Growth in the Township has led to more vehicles on the road, which
is especially challenging for narrower roads that were not originally
designed for high traffic volumes. Staff have also noticed an
increase in heavy vehicles such as delivery trucks and concrete
mixers, which are contributing to deeper rutting and faster wear on
certain roads. This type of traffic often exceeds what the roads were
built to handle and may require future upgrades or reinforcements.
Infrastructure Reinvestment
The Township's current reinvestment in infrastructure is generally
sufficient to meet ongoing maintenance needs and keep roads in
good condition. However, some road improvement projects rely on
external grant funding. This means that the timing and completion
of certain projects may be affected by the availability of these
funds.
Other
In past incidents, the Township has been held financially responsible
for damages, even when only partially liable. As a result, staff
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Road Network
remain cautious and proactive when planning road maintenance and
rehabilitation, taking potential legal and financial risks into account.
6.7
Current Levels of Service
The tables that follow summarize the Township's current levels of service with
respect to prescribed KPIs under Ontario Regulation 588/17, as well as any
additional performance measures that the Township selected for this AMP.
6.7.1
Community Levels of Service
Table 31 O. Reg. 588/17 Community Levels of Service: Road Network
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description, which may
include maps, of the road
network in the Township
and its level of
connectivity
See Appendix C for maps.
Quality
Description or images that
illustrate the different
levels of road class
pavement condition
The Township completes a Road Needs
Study annually with internal staff.
Every road section received a
pavement condition index, rating the
condition of the surface of the road on
a scale of 0-100.
Different condition ranges can indicate
the following:
0 to <45 = Very Poor
45 to <65 = Poor
65 to <70 = Fair
70 to <80 = Good
80 to 100 = Excellent
The above scale is based on the PCI
Decision Matrix found in Appendix C.
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Road Network
6.7.2
Technical Levels of Service
Table 32 O. Reg. 588/17 Technical Levels of Service: Road Network
Service
Attribute
Technical Metric
Current LOS (2023)
Scope
Lane-km of arterial roads (MMS
classes 1 and 2) per land area
(km/km2)
0 km/km2
Lane-km of collector roads (MMS
classes 3 and 4) per land area
(km/km2)
0 km/km2
Lane-km of local roads (MMS classes 5
and 6) per land area (km/km2)
0.2756 km/km2
Quality
Average pavement condition index for
paved roads in the Township
HCB: 81%
LCB: 76%
Average surface condition for unpaved
roads in the Township (e.g. excellent,
good, fair, poor)
Very Good
Performance
% of road network assets in fair or
better condition
96%
% of road network assets in poor or
lower condition
4%
Actual annual capital budget : average
required annual capital requirements
($729,713 : $782,543)
(0.93 : 1)
6.8
Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider
proposed levels of service (LOS), discuss the associated risks and long-term
sustainability of these service levels, and explain the Township's ability to afford the
proposed LOS.
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Road Network
Table 33 outlines the proposed LOS scenarios that were analyzed for the road
network. Further explanation and proposed LOS analysis at the portfolio level can
be found in Section 4 Proposed Levels of Service Analysis.
Table 33 Proposed LOS: Road Network
16 Lifecycle strategies as outlined in Section 6.4.
Segment
Average Annual Requirement
Selection
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
(With
LC16)
No Target
(Without
LC)
HCB +
Small
Culverts
65%
70%
75%
-
-
Maintain
$331,491
$361,957
$365,038
$442,320
$512,270
LCB +
Small
Culverts
64%
69%
74%
-
-
Maintain
$399,490
$416,806
$416,806
$398,956
$407,514
Signs
12%
17%
22%
-
-
Maintain
$2,985
$3,780
$4,576
$4,056
$4,056
TOTAL
$733,966 $782,544 $786,420 $845,332
$923,840 $782,544
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Road Network
Category Analysis:
Non-Core Assets
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Buildings
7
Buildings
The Township owns and maintains several buildings and recreation centers that
provide key services to the community. These include administrative offices,
healthcare facilities, a community center, Public Works shop and sheds, as well as
wharfs. The total current replacement of buildings is $18.4 million.
7.1
Inventory & Valuation
Table 34 Detailed Asset Inventory: Buildings
17 Average Annual Capital Requirement (AAR). For further detail, see section 2.3.5 Average Annual Requirement.
Segment
Quantity
(Assets)
Unit of
Measure
Replacement
Cost
Primary RC
Method
AAR17
Community
and Culture
170
Assets
$8,612,494
User-Defined
$118,919
General
Government
138
Assets
$3,814,785
User-Defined
$68,717
Health
73
Assets
$1,442,742
User-Defined
$21,852
Public Works
101
Assets
$3,785,980
User-Defined
$66,285
Washrooms
1
Assets
$185,000
User-Defined
$3,627
Waste
Management
57
Assets
$564,705
User-Defined
$10,044
TOTAL
$18,405,705 User-Defined
$289,445
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Buildings
Figure 32 Portfolio Valuation: Buildings
7.2
Asset Condition
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Township's current approach:
A Building Condition Assessment study was completed on Township buildings
by ABSI in 2023. This included an assessment of each facility's general
condition, required repairs and recommended upgrades
Township staff conduct visual inspections of all buildings on an annual basis
Health and safety walkthroughs are completed by Township staff on a
monthly basis
In this AMP, the following rating criteria is used to determine the current condition
of buildings assets and forecast future capital requirements:
Community
and Culture,
$8,612,494,
(47%)
General
Government,
$3,814,785,
(21%)
Public Works,
$3,785,980,
(21%)
Health, $1,442,742, (8%)
Waste Management, $564,705, (3%)
Washrooms, $185,000, (1%)
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Buildings
Table 35 Condition Ranges: Buildings
Condition
Ranges
Description
Very Good
(80% -
100%)
Newly built or recently renovated with no visible defects.
Modern, efficient, and fully functional mechanical,
electrical, and plumbing systems.
Well-maintained structural elements, finishes, and overall
aesthetic.
Minimal maintenance required beyond routine inspections
and minor upkeep.
Good
(60% - 80%)
Structurally sound with no major defects; minor wear and
tear on finishes.
Functional and well-maintained mechanical, electrical, and
plumbing systems.
Up-to-date aesthetics, with only minor improvements
needed for modernization.
Requires only regular maintenance to keep in good
condition.
Fair
(40% - 60%)
Some visible signs of aging, such as minor wall cracks, roof
wear, or uneven flooring.
Mechanical, electrical, and plumbing systems function but
may require repairs or efficiency upgrades.
Cosmetic issues like faded paint, worn flooring, or outdated
interior elements.
Routine maintenance and moderate renovations can extend
the building's service life.
Poor
(20% - 40%)
Noticeable structural issues, such as sagging floors,
cracked walls, or roof leaks.
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Buildings
As illustrated in Figure 33 below, the majority of the Township's buildings are in
good or better condition.
Table 36 summarizes the replacement cost-weighted condition of the Township's
buildings portfolio. Based primarily on assessed condition data, 96% of buildings
are in fair or better condition, with the remaining 4% in poor or lower condition.
Condition data was available for 96% of buildings, based on replacement costs; age
was used to estimate condition for the remaining 4% of assets.
Condition
Ranges
Description
Frequent repairs needed for electrical, plumbing, or HVAC
systems due to aging components.
Significant cosmetic wear, including peeling paint,
damaged finishes, and outdated fixtures.
Requires major repairs or system upgrades to maintain
functionality.
Very Poor
(0% - 20%)
Severe structural deterioration, with major foundation
issues, roof failures, or extensive wall cracking.
Significant water damage, mold growth, or rot affecting
habitability.
Outdated or failing mechanical, electrical, and plumbing
(MEP) systems, posing safety risks.
Building is unsafe for occupancy without extensive
rehabilitation or potential demolition.
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Buildings
Figure 33 Asset Condition: Buildings
Table 36 Asset Condition: Buildings by Segment
Asset
Category
≤ Poor $
≤ Poor
%
≥ Fair $
≥ Fair
%
Average
Condition18
Community
and Culture
$266,192
3%
$8,346,302
97%
Very Good (92%)
General
Government
$330,690
9%
$3,484,095
91%
Very Good (83%)
Health
$10,550
1%
$1,432,192
99%
Very Good (94%)
Public Works
$105,750
3%
$3,680,230
97%
Very Good (80%)
Washrooms
-
0%
$185,000
100%
Good (72%)
Waste
Management
$45,790
8%
$518,915
92%
Good (74%)
TOTAL
$758,972
4%
$17,646,733
96%
Very Good (87%)
18 Weighted by replacement cost.
$159k
$1.3m
$1.2m
$2.1m
$6.8m
$176k
$185k
$1.6m
$212k
$1.0m
$1.2m
$184k
$783k
$16k
$373k
$378k
$24k
$90k
$11k
$309k
$264k
$21k
$16k
$22k
$3k
0%
20%
40%
60%
80%
100%
Waste
Management
Washrooms
Public Works
Health
General
Government
Community
and Culture
Value and Percentage of Asset Segments by
Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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Buildings
7.3
Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or
design life; and the percentage of EUL consumed. The EUL is the serviceable
lifespan of an asset during which it can continue to fulfil its intended purpose and
provide value to users, safely and efficiently. As assets age, their performance
diminishes, often more rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential
replacement spikes.
Table 37 summarizes and Age analysis reveals that, on average, buildings assets
are in the early to mid-stages of their serviceable life. It is important to note that
meaningful and accurate age analysis of building assets relies heavily on effective
componentization. Buildings are complex structures made up of many parts (e.g.,
roofs, HVAC systems, windows, and foundations), each with its own expected
lifespan and maintenance needs.
Figure 34 illustrates the average current age of each asset type and its estimated
useful life. Both values are weighted by the replacement cost of individual assets.
Table 37 Detailed Asset Age: Buildings
Age analysis reveals that, on average, buildings assets are in the early to mid-
stages of their serviceable life. It is important to note that meaningful and accurate
Segment
Weighted Average EUL Weighted Average Age
Community and Culture
48.1
23.2
General Government
50.2
26.8
Health
50
7.3
Public Works
50.2
16.2
Washrooms
40
13
Waste Management
50.4
24.3
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88
Buildings
age analysis of building assets relies heavily on effective componentization.
Buildings are complex structures made up of many parts (e.g., roofs, HVAC
systems, windows, and foundations), each with its own expected lifespan and
maintenance needs.
Figure 34 Estimated Useful Life vs. Asset Age: Buildings
A building's overall age does not always reflect the condition or serviceability of its
individual components. By breaking down each building into its key components
and tracking the age and condition of each one separately, staff can more
accurately assess where investment is needed and avoid premature or unnecessary
expenditures.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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. Further, useful life estimates established
as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
23.2
26.8
7.3
16.2
13
24.3
48.1
50.2
50
50.2
40
50.4
0
10
20
30
40
50
60
Number of Years
Weighted Average Age
Weighted Average EUL
Township of the Archipelago
Asset Management Plan 2025
89
Buildings
7.4
Current Approach to Lifecycle
Management
The condition or performance of most assets will deteriorate over time. To ensure
that the Township's buildings assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management strategy to
proactively manage asset deterioration.
Table 38 outlines the Township's current lifecycle management strategy for
buildings assets.
Table 38 Lifecycle Management Strategy: Buildings
7.5
Forecasted Long-Term Replacement
Needs
Figure 35 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Township's buildings portfolio. This analysis was
run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide
Assets, the Township's primary asset management system and asset register. The
Township's average annual requirements (red dotted line) total $289,445 for all
buildings. Although actual spending may fluctuate substantially from year to year,
Activity Type
Description of Current Strategy
Maintenance /
Rehabilitation
Municipal buildings are subject to regular inspections to identify
health & safety requirements as well as structural deficiencies
that require additional attention
Preventative maintenance activities are carried out, such as
changing pipe material to PEX from copper or cast iron so that
pipes are easier to maintain, longer lasting, and better
functioning. HVAC systems have been updated to be more
efficient and reliable in recent years.
Replacement
Assessments for replacement are completed proactively
according to the BCA. Replacement activities are planned for in
the year prior to the activity occurring.
Township of the Archipelago
Asset Management Plan 2025
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Buildings
this figure is a useful benchmark value for annual capital expenditure targets (or
allocations to reserves) to ensure projects are not deferred and replacement needs
are met as they arise.
Forecasted requirements align with the selected proposed levels of service.
Replacement needs are forecasted to rise consistently hitting peaks during 2035-
2039, 2055-2059, and 2060-2064. These projections and estimates are based on
current asset records, their replacement costs, and age analysis. They are designed
to provide a long-term, portfolio-level overview of capital needs and should be used
to support improved financial planning over several decades.
Figure 35 Forecasted Capital Replacement Needs Buildings 2025-2074
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be
$289k
$151k
$441k
$1.7m
$1.2m
$1.2m
$842k
$3.0m
$3.7m
$846k
$1.2m
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
$3.0m
$3.5m
$4.0m
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
2070 -
2074
Community and Culture
General Government
Health
Public Works
Washrooms
Waste Management
Annual Requirement
Total
Township of the Archipelago
Asset Management Plan 2025
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Buildings
replaced. However, quantifying and monitoring these spikes is essential for long-
term financial planning, including establishing dedicated reserves. In addition, a
robust risk framework will ensure that high-criticality assets receive proper and
timely lifecycle intervention, including replacements. In the case of buildings,
detailed componentization is necessary to develop reliable lifecycle forecasts that
reflect the needs of individual elements and components.
A summary of the 10-year replacement forecast can be found in Appendix B.
7.6
Risk Analysis
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.
7.6.1
Quantitative Risk
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the buildings
assets based on 2023 inventory data. See Appendix D for the criteria used to
determine the risk rating of each asset.
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from
1-25. Assets with the highest criticality and likelihood of failure receive a risk rating
of 25; those with lowest probability of failure and lowest criticality carry a risk
rating of 1. As new data and information is gathered, the Township may consider
integrating relevant information that improves confidence in the criteria used to
assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database
(Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section
2.3.8 Evaluating Quantitative Risk for further details on the approach used to
determine asset risk ratings and classifications.
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Asset Management Plan 2025
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Buildings
Figure 36 Risk Matrix: Buildings
Consequence of Failure
5
2 Assets
$4,016,912
4
7 Assets
$1,454,560
5 Assets
$1,084,000
2 Assets
$539,000
1 Asset
$130,000
3
22 Assets
$4,303,242
15 Assets
$1,823,446
2 Assets
$133,888
1 Asset
$75,000
2
106 Assets
$1,500,034
107 Assets
$1,338,629
100 Assets
$809,853
56 Assets
$380,867
8 Assets
$35,430
1
32 Assets
$279,930
17 Assets
$132,750
18 Assets
$251,990
30 Assets
$115,950
10 Assets
$12,725
1
2
3
4
5
Probability of Failure
The following risk ratings are first shown for the overall category and then by
segment for the buildings assets.
Figure 37 Risk Rating Ranges: Buildings
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$8,217,202
$7,322,328
$1,871,055
$865,121
$130,000
(45%)
(40%)
(10%)
(5%)
(<1%)
Overall, the average risk rating for buildings assets is 5.3, which is considered Low.
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.
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Buildings
Table 39 Probability of Failure, Consequence of Failure, Risk Ratings: Buildings by
Segment
Asset Category
Probability of
Failure
Consequence of
Failure
Risk Rating
Community and
Culture
1.3 / 5
4.0 / 5
4.9 / 25
General
Government
1.7 / 5
3.1 / 5
5.3 / 25
Health
1.2 / 5
2.9 / 5
3.4 / 25
Public Works
1.9 / 5
3.3 / 5
6.5 / 25
Washrooms
2.0 / 5
4.0 / 5
8.0 / 25
Waste Management
2.2 / 5
2.6 / 5
5.5 / 25
TOTAL
1.6 / 5
3.6 / 5
5.3 / 25
7.6.2
Qualitative Risk
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Organizational Cognizance/Capacity
Historically, knowledge related to Township-owned buildings has
varied depending on the frequency of use by staff. This created
challenges in maintaining a comprehensive understanding of the full
facility portfolio. The recent completion of a Building Condition
Assessment has significantly improved organizational awareness,
providing staff with a holistic view of facility needs and enabling
more effective participation in evidence-based asset management
planning.
Climate Change
Climate change continues to impact municipal buildings, particularly
through prolonged heat waves and more frequent freeze/thaw
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Buildings
cycles. These conditions can stress building systems, especially
HVAC equipment, and contribute to foundational wear. These risks
are being actively monitored and considered in long-term
maintenance and renewal plans.
Other
The Township continues to work toward compliance with the
Accessibility for Ontarians with Disabilities Act (AODA). While some
buildings have accessible entrances, structural limitations--such as
ramp steepness--have prevented full compliance in certain cases.
Additional building modifications will be required to meet
accessibility standards, which may involve capital investment. Staff
remain committed to improving accessibility across all public
facilities as part of ongoing planning efforts.
7.7
Current Levels of Service
The tables that follow summarize the Township's current levels of service. There are
no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core
assets, therefore the KPIs below represent performance measures that the
Township has selected for this AMP.
7.7.1
Community Levels of Service
Table 40 Community Levels of Service: Buildings
Service
Attribute
Qualitative Description
Current LOS
(2023)
Scope
Description of the availability of the recreational
and cultural services supported by municipal
buildings to residents
See Appendix C
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Buildings
7.7.2
Technical Levels of Service
Table 41 Technical Levels of Service: Buildings
Service
Attribute
Technical Metric
Current LOS
(2023)
Scope
Square meters of indoor recreation facilities
300 m2
Quality&
Performance
Average condition of buildings assets in the
Township
Very Good (87%)
% of buildings that are in fair or better
condition
96%
% of buildings that are in poor or lower
condition
4%
Actual annual capital budget : average
required annual capital requirements
$289,445 : $289,445
(1 : 1)
7.8
Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider
proposed levels of service (LOS), discuss the associated risks and long-term
sustainability of these service levels, and explain the Township's ability to afford the
proposed LOS.
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Buildings
Table 42 outlines the proposed LOS scenarios that were analyzed for buildings.
Further explanation and proposed LOS analysis at the portfolio level can be found in
Section 4 Proposed Levels of Service Analysis.
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Buildings
Table 42 Proposed LOS: Buildings
Segment
Average Annual Requirement
Selection
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Community
and Culture
65%
70%
75%
-
-5%
Condition
$118,919
$125,685
$126,285
$213,564
General
Government
65%
70%
75%
-
Maintain
$66,090
$68,717
$68,717
$100,223
Health
65%
70%
75%
-
-5%
Condition
$21,852
$22,058
$22,058
$36,953
Public Works
65%
70%
75%
-
-5%
Condition
$66,285
$66,505
$66,593
$93,922
Washrooms
65%
70%
75%
-
Maintain
$3,627
$3,627
$3,627
$4,625
Waste
Management
65%
70%
75%
-
Maintain
$10,044
$10,044
$10,044
$13,722
TOTAL
$286,817
$296,637
$297,326
$463,009
$289,445
Township of the Archipelago
Asset Management Plan 2025
98
Land Improvements
8
Land Improvements
The Township's land improvements portfolio includes parking lots, retaining walls,
and fencing. The total current replacement cost of land improvements assets is
$1.9 million.
8.1
Inventory & Valuation
Table 43 summarizes the quantity and current replacement cost of all land
improvements assets available in the Township's asset register.
Table 43 Detailed Asset Inventory: Land Improvements
19 Average Annual Capital Requirement (AAR). For further detail, see section 2.3.5 Average Annual Requirement.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
AAR19
Cemetery
2
Assets
$77,000
User-Defined
$1,510
Marine
19
Assets
$709,544
User-Defined
$25,629
Parking Lots
2
Assets
$75,000
User-Defined
$4,706
Recreation
4
Assets
$500,000
User-Defined
$18,627
Towers
2
Assets
$215,000
User-Defined
$5,294
Waste
Management
8
Assets
$282,000
User-Defined
$14,196
TOTAL
$1,858,544 User-Defined
$69,963
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Asset Management Plan 2025
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Land Improvements
Figure 38 Portfolio Valuation: Land Improvements
8.2
Asset Condition
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Township's current approach:
Staff complete regular visual inspections of land improvements assets to
ensure they are in state of adequate repair
Cemetery assets are inspected monthly to monitor the area and determine
cleaning priorities
Regular inspection and maintenance for playground equipment are performed
on an annual basis by external contractors to abide by the regulations. The
rubber mat surfaces of playground assets are drop tested to ensure they are
in compliance with safety regulations
Inspections for land improvements are done according to Canadian Standard
Association (CSA) guidelines
In this AMP, the following rating criteria is used to determine the current condition
of land improvements assets and forecast future capital requirements:
Marine,
$709,544,
(38%)
Recreation,
$500,000,
(27%)
Waste Management,
$282,000, (15%)
Towers, $215,000, (12%)
Cemetery, $77,000, (4%)
Parking Lots, $75,000, (4%)
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Asset Management Plan 2025
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Land Improvements
Table 44 Condition Ranges: Land Improvements
Condition
Ranges
Description
Very Good
(80% -
100%)
The asset is new, recently rehabilitated, or very well
maintained.
It functions as intended with no significant signs of
deterioration.
No immediate maintenance or repair needs are present.
Examples: A newly installed playground, freshly resurfaced
trail, or pristine fencing and landscaping in a public park.
Good
(60% - 80%)
The asset is in overall good condition, showing minor wear
from regular use.
It is fully operational and meets community expectations
for use, safety, and appearance.
Only routine or preventative maintenance is needed.
Examples: A well-maintained sports field, a dock with slight
wear on surface materials, or a parking lot with minor
surface cracking.
Fair
(40% - 60%)
The asset is functional but aging, with noticeable wear and
some minor safety or usability concerns.
It meets basic performance standards but may require
minor repairs or surface improvements to avoid
accelerated decline.
Examples: A trail with minor erosion, faded playground
surfacing, or a parking lot with cracked pavement and early
signs of edge failure.
Poor
(20% - 40%)
The asset has serious signs of deterioration and frequent
functional issues.
It may still be partially usable but fails to meet service
expectations.
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Land Improvements
As illustrated in Figure 39, the majority of the Township's land improvements are in
fair or better condition.
Table 45 summarizes the replacement cost-weighted condition of the Township's
land improvements portfolio. Using primarily age-based condition, 89% of land
improvements are in fair or better condition, with the remaining 11% in poor or
lower condition.
While most assets average a fair or better condition, this does not apply to parking
lots where only 40% of assets fall within that range. These assets may be
candidates for replacement in the short term; similarly, assets in fair condition may
require rehabilitation or replacement in the medium term and should be monitored
for further degradation in condition.
Condition data was available for 7% of land improvements, based on replacement
costs; age was used to estimate condition for the remaining 93% of assets.
Condition
Ranges
Description
Corrective maintenance or planning for replacement should
be prioritized.
Examples: A dock with unstable decking, fencing with
missing sections, or sports fields with bare patches and
poor drainage.
Very Poor
(0% - 20%)
The asset is in critical condition with extensive structural or
surface deterioration.
It is unsafe, unusable, or completely non-functional, posing
a risk to public safety or the environment.
Immediate action is required, including potential closure,
major rehabilitation, or full replacement.
Examples: A playground with broken equipment, a trail
washed out or impassable, or a parking lot with large
potholes and failing subbase.
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Land Improvements
Figure 39 Asset Condition: Land Improvements by Segment
Table 45 Asset Condition: Land Improvements by Segment
Asset
Category
≤ Poor $
≤ Poor
%
≥ Fair $
≥ Fair
%
Average
Condition20
Cemetery
-
0%
$77,000
100%
Good (61%)
Marine
$80,000
11%
$629,544
89%
Good (78%)
Parking Lots
$45,000
60%
$30,000
40%
Fair (45%)
Recreation
$45,000
9%
$455,000
91%
Fair (47%)
Towers
-
0%
$215,000
100%
Very Good (86%)
Waste
Management
$32,000
11%
$250,000
89%
Fair (52%)
TOTAL
$202,000
11%
$1,656,544
89%
Good (65%)
20 Weighted by replacement cost.
$10k
$215k
$30k
$464k
$74k
$76k
$32k
$166k
$455k
$90k
$45k
$45k
$80k
$32k
$45k
0%
20%
40%
60%
80%
100%
Waste Management
Towers
Recreation
Parking Lots
Marine
Cemetery
Value and Percentage of Asset Segments by
Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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Land Improvements
8.3
Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or
design life; and the percentage of EUL consumed. The EUL is the serviceable
lifespan of an asset during which it can continue to fulfil its intended purpose and
provide value to users, safely and efficiently. As assets age, their performance
diminishes, often more rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential
replacement spikes.
Table 46 summarizes and Age analysis reveals that, on average, parking lots and
recreation assets are in the latter stages of their expected life. Cemetery, and
waste management assets are in the mid-stages of their expected design life.
Figure 40 illustrates the average current age of each asset type and its estimated
useful life. Both values are weighted by the replacement cost of individual assets.
Table 46 Detailed Asset Age: Land Improvements
Age analysis reveals that, on average, parking lots and recreation assets are in the
latter stages of their expected life. Cemetery, and waste management assets are in
the mid-stages of their expected design life.
Segment
Weighted Average EUL Weighted Average Age
Cemetery
50
20.8
Marine
32.6
6.9
Parking Lots
17
11.6
Recreation
30.6
17.8
Towers
27.4
5.5
Waste Management
20.4
10.9
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Land Improvements
Figure 40 Estimated Useful Life vs. Asset Age: Land Improvements
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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. Further, useful life estimates established
as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
8.4
Current Approach to Lifecycle
Management
The condition or performance of most assets will deteriorate over time. To ensure
that the Township's land improvements assets are performing as expected and
meeting the needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
Table 47 outlines the Township's current lifecycle management strategy for land
improvements assets.
20.8
6.9
11.6
17.8
5.5
10.9
50
32.6
17
30.6
27.4
20.4
0
10
20
30
40
50
60
Number of Years
Weighted Average Age
Weighted Average EUL
Township of the Archipelago
Asset Management Plan 2025
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Land Improvements
Table 47 Lifecycle Management Strategy: Land Improvements
Activity Type
Description of Current Strategy
Maintenance,
Rehabilitation &
Replacement
The land improvements asset category includes several unique
asset types and lifecycle requirements are dealt with on a
case-by-case basis.
Dock assets are repaired and replaced on an as-needed basis.
Regular inspections are carried out according to Canadian
Standards Association (CSA) guidelines.
8.5
Forecasted Long-Term Replacement
Needs
Figure 41 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Township's land improvements portfolio. This
analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in
Citywide Assets, the Township's primary asset management system and asset
register. The Township's average annual requirements (red dotted line) total
$69,963 for all land improvements. Although actual spending may fluctuate
substantially from year to year, this figure is a useful benchmark value for annual
capital expenditure targets (or allocations to reserves) to ensure projects are not
deferred and replacement needs are met as they arise. Replacement needs are
forecasted to fluctuate with spikes occurring in 2040-2044, 2060-2064, and 2070-
2074 as assets reach the end of their useful life.
Additionally, there is currently an approximate $32,000 backlog comprised of assets
that remain in service beyond their estimated useful life. The 10-year capital
requirements expanded in Appendix B have accounted for removing this
accumulation and continuing to rehabilitate or replace assets in alignment with the
proposed levels of service.
These projections and estimates are based on asset replacement costs and age
analysis. They are designed to provide a long-term, portfolio-level overview of
capital needs and should be used to support improved financial planning over
several decades.
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106
Land Improvements
Figure 41 Forecasted Capital Replacement Needs: Land Improvements 2025-2074
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be
replaced. However, quantifying and monitoring these spikes is essential for long-
term financial planning, including establishing dedicated reserves. In addition, a
robust risk framework will ensure that high-criticality assets receive proper and
timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B.
$70k
$262k $280k
$192k
$708k
$192k
$376k
$182k
$537k
$198k
$622k
$0
$100k
$200k
$300k
$400k
$500k
$600k
$700k
$800k
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
2070 -
2074
Cemetery
Marine
Parking Lots
Recreation
Towers
Waste Management
Annual Requirement
Total
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Land Improvements
8.6
Risk Analysis
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.
8.6.1
Quantitative Risk
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for the land
improvements assets based on 2023 inventory data. See Appendix D for the criteria
used to determine the risk rating of each asset.
Figure 42 Risk Matrix: Land Improvements
Consequence of Failure
5
4
1 Asset
$160,000
1 Asset
$300,000
3
3 Assets
$315,435
2 Assets
$270,000
2
4 Assets
$160,492
3 Assets
$112,000
3 Assets
$150,000
2 Assets
$85,000
1 Asset
$45,000
1
7 Assets
$82,616
4 Assets
$70,000
2 Assets
$36,000
2 Assets
$40,000
2 Assets
$32,000
1
2
3
4
5
Probability of Failure
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from
1-25. Assets with the highest criticality and likelihood of failure receive a risk rating
of 25; those with lowest probability of failure and lowest criticality carry a risk
Township of the Archipelago
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Land Improvements
rating of 1. As new data and information is gathered, the Township may consider
integrating relevant information that improves confidence in the criteria used to
assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database
(Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section
2.3.8 Evaluating Quantitative Risk for further details on the approach used to
determine asset risk ratings and classifications.
The following risk ratings are first shown for the overall category and then by
segment for the land improvements assets.
Figure 43 Risk Rating Ranges: Land Improvements
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$976,544
$182,000
$355,000
$345,000
-
(53%)
(10%)
(19%)
(19%)
(0%)
Table 48 Probability of Failure, Consequence of Failure, Risk Ratings: Land
Improvements by Segment
Overall, the average risk rating for land improvements assets is 5.95, which is
considered Low.
Asset Category
Probability of
Failure
Consequence of
Failure
Risk Rating
Cemetery
2.58 / 5
2 / 5
5.17 / 25
Marine
1.7 / 5
2.21 / 5
3.33 / 25
Parking Lots
3.4 / 5
2 / 5
6.8 / 25
Recreation
3.09 / 5
3.44 / 5
10.5 / 25
Towers
1 / 5
3.49 / 5
3.49 / 25
Waste Management
2.89 / 5
2.21 / 5
6.37 / 25
TOTAL
2.28 / 5
2.67 / 5
5.95 / 25
Township of the Archipelago
Asset Management Plan 2025
109
Land Improvements
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.
8.6.2
Qualitative Risk
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Aging Infrastructure
Some recreational assets, such as the outdoor rink's hockey boards,
have reached the end of their useful service life. Due to the
significant cost of replacement, the Township is currently engaging
the community to gather feedback and establish priorities. This
approach supports a broader focus on community development,
where residents play an active role in identifying and shaping future
capital projects and service improvements.
8.7
Current Levels of Service
The tables that follow summarize the Township's current levels of service. There are
no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core
assets, therefore the KPIs below represent performance measures that the
Township has selected for this AMP.
8.7.1
Community Levels of Service
Table 49 Community Levels of Service: Land Improvements
Service Attribute
Qualitative Description
Current LOS (2023)
Scope
Description, which may
include maps, of the
outdoor recreational
buildings that the Township
operates and maintains
The Township owns and operates
the Wharf Seawall in The
Archipelago, as well as the outdoor
rink connected to the Pointe Au Baril
Community Centre. See Appendix C.
Township of the Archipelago
Asset Management Plan 2025
110
Land Improvements
8.7.2
Technical Levels of Service
Table 50 Technical Levels of Service: Land Improvements
Service
Attribute
Technical Metric
Current LOS
(2023)
Scope
Square meters of outdoor recreation facility
space per 1,000 households
0.5
Quality
Average condition of municipal land
improvements
Good (65%)
Performance
% of assets that are in fair or better
condition
89%
% of assets that are in poor or lower
condition
11%
Actual annual capital budget : average
required annual capital requirements
$69,963 : $63,963
(1 : 1)
8.8
Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider
proposed levels of service (LOS), discuss the associated risks and long-term
sustainability of these service levels, and explain the Township's ability to afford the
proposed LOS.
Table 51 outlines the proposed LOS scenarios that were analyzed for land
improvements. Further explanation and proposed LOS analysis at the portfolio level
can be found in Section 4 Proposed Levels of Service Analysis.
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Land Improvements
Table 51 Proposed LOS: Land Improvements
Segment
Average Annual Requirement
Selection
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Cemetery
54%
59%
64%
-
Maintain
$1,510
$1,510
$1,510
$1,540
Marine
69%
74%
79%
-
Maintain
$25,629
$25,629
$25,629
$26,751
Parking Lots
34%
39%
44%
-
Maintain
$4,706
$4,706
$4,706
$4,500
Recreation
38%
43%
48%
-
Maintain
$17,745
$18,627
$18,627
$23,375
Towers
77%
82%
87%
-
Maintain
$5,294
$5,294
$5,294
$8,083
Waste
Management
42%
47%
52%
-
Maintain
$13,882
$14,196
$14,824
$15,660
TOTAL
$68,766
$69,963
$70,590
$79,909
$69,963
Township of the Archipelago
Asset Management Plan 2025
112
Machinery & Equipment
9
Machinery & Equipment
The Township's machinery and equipment portfolio includes landscaping equipment
to maintain public parks as well as miscellaneous equipment such as generators
and compactors to facilitate activities by the Public Works department. The total
current replacement of machinery and equipment is estimated at approximately
$3.3 million.
9.1
Inventory & Valuation
Table 52 summarizes the quantity and current replacement cost of all machinery
and equipment assets available in the Township's asset register.
Table 52 Detailed Asset Inventory: Machinery & Equipment
21 Average Annual Capital Requirement (AAR). For further detail, see section 2.3.5 Average Annual Requirement.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
AAR21
Furniture
and Fixtures
43
Assets
$836,143
User-Defined
$60,922
Public Works
37
Assets
$2,448,164
User-Defined
$221,742
Waste
Management
1
Assets
$46,000
User-Defined
$2,706
$3,330,307 User-Defined $285,370
Township of the Archipelago
Asset Management Plan 2025
113
Machinery & Equipment
Figure 44 Portfolio Valuation: Machinery & Equipment
9.2
Asset Condition
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Township's current approach:
Staff complete regular visual inspections of machinery & equipment to ensure
they are in state of adequate repair
Operators complete daily circle checks for safety before use of equipment
and machinery
There are no formal condition assessment programs in place
In this AMP, the following rating criteria is used to determine the current condition
of machinery and equipment assets and forecast future capital requirements:
Public Works,
$2,448,164,
(74%)
Furniture
and
Fixtures,
$836,143,
(25%)
Waste Management,
$46,000, (1%)
Township of the Archipelago
Asset Management Plan 2025
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Machinery & Equipment
Table 53 Condition Ranges: Machinery & Equipment
Condition
Ranges
Description
Very Good
(80% -
100%)
New or like-new condition, with no defects or performance
issues.
Highly efficient and reliable, operating at peak
performance.
No mechanical wear or cosmetic damage.
All systems fully functional, with minimal maintenance
required beyond routine servicing.
Expected to provide years of service without major
interventions.
Good
(60% - 80%)
Fully functional with minimal wear and tear.
All major components in good condition, with only minor
maintenance needed (e.g., oil changes, filter
replacements).
Efficient operation with no significant performance issues.
Regular servicing keeps the equipment in optimal working
condition.
Only minor repairs or adjustments required.
Fair
(40% - 60%)
Occasional mechanical issues but still operational with
regular maintenance.
Some worn components affecting efficiency, such as aging
hydraulics, belts, or electrical wiring.
Moderate cosmetic wear (scratches, dents, faded paint),
but no major structural damage.
Requires proactive maintenance and some parts
replacement to extend lifespan.
Township of the Archipelago
Asset Management Plan 2025
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Machinery & Equipment
As illustrated in Figure 45, all of the waste management assets are in fair or better
condition while the majority of furniture and fixtures and public works assets are in
poor or lower.
Table 54 summarizes the replacement cost-weighted condition of the Township's
machinery and equipment portfolio. Based mostly on assessed condition data, 30%
of machinery and equipment are in fair or better condition, with the remaining 70%
in poor or lower condition.
Condition
Ranges
Description
Poor
(20% - 40%)
Regular breakdowns and performance issues requiring
frequent repairs.
Noticeable mechanical wear, including worn-out bearings,
belts, hydraulic leaks, or electrical malfunctions.
Reduced efficiency and output, causing operational delays
or increased costs.
Aging components and visible deterioration, such as rust,
cracks, or faded controls.
Significant repairs or partial replacements needed to
maintain functionality.
Very Poor
(0% - 20%)
Frequent mechanical failures making the equipment
unreliable and unsafe to use.
Severe wear and tear with major structural damage,
corrosion, or missing components.
High operating costs due to excessive fuel consumption,
breakdowns, and inefficient performance.
Parts are difficult to source or no longer available, making
repairs impractical.
Requires immediate replacement as repairs would not be
cost-effective.
Township of the Archipelago
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Machinery & Equipment
These assets may be candidates for replacement in the short term; similarly, assets
in fair condition may require rehabilitation or replacement in the medium term and
should be monitored for further degradation in condition.
Figure 45 Asset Condition: Machinery & Equipment by Segment
Condition data was available for 66% of machinery and equipment, based on
replacement costs; age was used to estimate condition for the remaining 34% of
assets.
Table 54 Asset Condition: Machinery & Equipment by Segment
Asset
Category
≤ Poor $
≤ Poor
%
≥ Fair $
≥ Fair
%
Average
Condition22
Furniture and
Fixtures
$563,171
67%
$272,972
33%
Poor (33%)
Public Works
$1,784,000
73%
$664,164
27%
Poor (36%)
Waste
Management
-
0%
$46,000
100%
Very Good
(97%)
TOTAL
$2,347,171
70%
$983,136
30%
Poor (36%)
22 Weighted by replacement cost.
$46k
$418k
$147k
$198k
$30k
$49k
$97k
$608k
$138k
$1.2m
$426k
0%
20%
40%
60%
80%
100%
Waste
Management
Public Works
Furniture and
Fixtures
Value and Percentage of Asset Segments by
Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of the Archipelago
Asset Management Plan 2025
117
Machinery & Equipment
9.3
Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or
design life; and the percentage of EUL consumed. The EUL is the serviceable
lifespan of an asset during which it can continue to fulfil its intended purpose and
provide value to users, safely and efficiently. As assets age, their performance
diminishes, often more rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential
replacement spikes.
Table 55 summarizes and Age analysis reveals that, on average, with the exception
of waste management assets, most machinery and equipment assets remain in
service beyond their expected useful life.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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. Further, useful life estimates established
as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
Figure 46 illustrates the average current age of each asset type and its estimated
useful life. Both values are weighted by the replacement cost of individual assets.
Table 55 Detailed Asset Age: Machinery & Equipment
Segment
Weighted Average EUL Weighted Average Age
Furniture and Fixtures
7.1
10.5
Public Works
9.9
12.6
Waste Management
15
2
Township of the Archipelago
Asset Management Plan 2025
118
Machinery & Equipment
Age analysis reveals that, on average, with the exception of waste management
assets, most machinery and equipment assets remain in service beyond their
expected useful life.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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. Further, useful life estimates established
as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
Figure 46 Estimated Useful Life vs. Asset Age: Machinery & Equipment
9.4
Current Approach to Lifecycle
Management
The condition or performance of most assets will deteriorate over time. To ensure
that the Township's machinery and equipment 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
for machinery and equipment assets.
10.5
12.6
2
7.1
9.9
15
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
Furniture and
Fixtures
Public Works
Waste Management
Number of Years
Weighted Average Age
Weighted Average EUL
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Machinery & Equipment
Table 56 Lifecycle Management Strategy: Machinery & Equipment
9.5
Forecasted Long-Term Replacement
Needs
Figure 47 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Township's machinery and equipment portfolio.
This analysis was run from 2025 until 2074 (a 50-year timespan) for assets
included in Citywide Assets, the Township's primary asset management system and
asset register. The Township's average annual requirements (red dotted line) total
$285,370 for all machinery and equipment. Although actual spending may fluctuate
substantially from year to year, this figure is a useful benchmark value for annual
capital expenditure targets (or allocations to reserves) to ensure projects are not
deferred and replacement needs are met as they arise. Replacement needs are
forecasted to remain relatively consistent over the 50-year projection period,
ranging from $1.1-$1.8 million within each five-year segment.
Additionally, there is currently an approximate $708,500 backlog comprised of
assets that remain in service beyond their estimated useful life. The 10-year capital
requirements expanded in Appendix B have accounted for removing this
accumulation and continuing to rehabilitate or replace assets in alignment with the
proposed levels of service.
These projections and estimates are based on asset replacement costs and age
analysis. They are designed to provide a long-term, portfolio-level overview of
capital needs and should be used to support improved financial planning over
several decades.
Activity Type
Description of Current Strategy
Maintenance /
Rehabilitation
Machinery and equipment is inspected before use to identify any
maintenance or rehabilitation needs
Machinery and equipment is maintained according to
manufacturer recommended actions and supplemented by the
expertise of municipal staff
Replacement
The replacement of machinery and equipment depends on
deficiencies identified by operators that may impact their ability
to complete required tasks
Township of the Archipelago
Asset Management Plan 2025
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Machinery & Equipment
Figure 47 Forecasted Capital Replacement Needs: Machinery & Equipment 2025-
2074
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be
replaced. However, quantifying and monitoring these spikes is essential for long-
term financial planning, including establishing dedicated reserves. In addition, a
robust risk framework will ensure that high-criticality assets receive proper and
timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B.
9.6
Risk Analysis
The identification of critical assets allows the Township to determine appropriate
risk mitigation strategies and treatment options. Risk mitigation may include asset-
$285k
$1.8m
$1.3m
$1.5m
$1.2m
$1.5m
$1.4m
$1.7m
$1.1m
$1.6m
$1.5m
$0
$200k
$400k
$600k
$800k
$1.0m
$1.2m
$1.4m
$1.6m
$1.8m
$2.0m
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
2070 -
2074
Furniture and Fixtures
Public Works
Waste Management
Annual Requirement
Total
Township of the Archipelago
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121
Machinery & Equipment
specific lifecycle strategies, condition assessment strategies, or simply the need to
collect better asset data.
9.6.1
Quantitative Risk
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for machinery and
equipment assets based on 2023 inventory data. See Appendix D for the criteria
used to determine the risk rating of each asset.
Figure 48 Risk Matrix: Machinery & Equipment
Consequence of Failure
5
2 Assets
$89,364
1 Asset
$38,000
2 Assets
$420,000
2 Assets
$125,000
4
2 Assets
$310,886
1 Asset
$160,000
3 Assets
$272,000
4 Assets
$770,000
3
1 Asset
$15,000
1 Asset
$10,074
2 Assets
$32,294
1 Asset
$15,671
6 Assets
$204,000
2
4 Assets
$123,737
1 Asset
$10,000
3 Assets
$23,000
11 Assets
$326,000
1
4 Assets
$71,198
7 Assets
$47,083
5 Assets
$52,500
3 Assets
$38,000
15 Assets
$176,500
1
2
3
4
5
Probability of Failure
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from
1-25. Assets with the highest criticality and likelihood of failure receive a risk rating
of 25; those with lowest probability of failure and lowest criticality carry a risk
rating of 1. As new data and information is gathered, the Township may consider
integrating relevant information that improves confidence in the criteria used to
assess asset risk and criticality.
Township of the Archipelago
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122
Machinery & Equipment
These risk models have been built into the Township's Asset Management Database
(Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section
2.3.8 Evaluating Quantitative Risk for further details on the approach used to
determine asset risk ratings and classifications.
The following risk ratings are first shown for the overall category and then by
segment for the machinery and equipment assets.
Figure 49 Risk Rating Ranges: Machinery & Equipment
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$668,404
$298,938
$192,294
$341,671
$1,829,000
(20%)
(9%)
(6%)
(10%)
(55%)
Table 57 Probability of Failure, Consequence of Failure, Risk Ratings: Machinery &
Equipment by Segment
Overall, the average risk rating for machinery and equipment assets is 13.06, which
is considered High.
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.
Asset Category
Probability of
Failure
Consequence of
Failure
Risk Rating
Furniture and
Fixtures
3.8 / 5
3.41 / 5
12.31 / 25
Public Works
3.79 / 5
3.53 / 5
13.53 / 25
Waste Management
1 / 5
2 / 5
2 / 25
TOTAL
3.75 / 5
3.48 / 5
13.06 / 25
Township of the Archipelago
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123
Machinery & Equipment
9.7
Current Levels of Service
The tables that follow summarize the Township's current levels of service. There are
no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core
assets, therefore the KPIs below represent performance measures that the
Township has selected for this AMP.
9.7.1
Community Levels of Service
Table 58 Community Levels of Service: Machinery & Equipment
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description or images of
the types of equipment
that the Township
operates and the services
that they help to provide
to the community
See Appendix C. Machinery and
equipment assets allow the public works
department and municipal staff to
deliver safe and efficient services to the
residents, such as road maintenance
and winter maintenance activities like
snow removal.
9.7.2
Technical Levels of Service
Table 59 Technical Levels of Service: Machinery & Equipment
Service
Attribute
Technical Metric
Current LOS (2023)
Quality
Average condition of municipal
machinery and equipment
Poor (36%)
Performance
% of assets in fair or better condition
30%
% of assets in poor or lower condition
70%
Actual annual capital budget: average
required annual capital requirements
$285,370 : $285,370
(1 : 1)
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Machinery & Equipment
9.8
Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider
proposed levels of service (LOS), discuss the associated risks and long-term
sustainability of these service levels, and explain the Township's ability to afford the
proposed LOS.
Table 60 outlines the proposed LOS scenarios that were analyzed for machinery and
equipment. Further explanation and proposed LOS analysis at the portfolio level can
be found in Section 4 Proposed Levels of Service Analysis.
Table 60 Proposed LOS: Machinery & Equipment
Segment
Average Annual Requirement
Selection
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Furniture
and Fixtures
23%
28%
33%
-
Maintain
$48,941
$60,922
$72,764
$120,072
Public Works
35%
40%
45%
-
Maintain
$195,682
$221,742
$244,918
$249,766
Waste
Management
86%
91%
96%
-
-5%
Condition
$2,706
$2,706
$2,706
$3,067
TOTAL
$247,329
$285,370
$320,388
$372,905
$285,370
Township of the Archipelago
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125
Vehicles
10 Vehicles
The Township's vehicles portfolio includes boats, pick-up trucks, dump trucks, and
various other vehicles used to maintain the transportation network and respond to
Public Works service requests, including winter control operations. The total current
replacement of vehicles is $1.7 million.
10.1
Inventory & Valuation
Table 61 summarizes the quantity and current replacement cost of all vehicles
assets available in the Township's asset register.
Table 61 Detailed Asset Inventory: Vehicles
23 Average Annual Capital Requirement (AAR). For further detail, see section 2.3.5 Average Annual Requirement.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
AAR23
Heavy Duty
3
Assets
$1,013,350
User-Defined
$83,662
Light Duty
9
Assets
$458,000
User-Defined
$48,745
Marine
10
Assets
$267,000
User-Defined
$15,863
TOTAL
$1,738,350 User-Defined
$148,270
Township of the Archipelago
Asset Management Plan 2025
126
Vehicles
Figure 50 Portfolio Valuation: Vehicles
10.2
Asset Condition
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets
more confidently. The following describes the Township's current approach:
Staff complete regular visual inspections of vehicles to ensure they are in
state of adequate repair prior to operation
Detailed vehicle inspections are carried out annually by internal staff. Factors
like number of kilometers, number of hours used, and age are recorded
during inspections
In this AMP, the following rating criteria is used to determine the current condition
of vehicles assets and forecast future capital requirements:
Heavy Duty,
$1,013,350,
(58%)
Light Duty,
$458,000,
(26%)
Marine,
$267,000,
(15%)
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Vehicles
Table 62 Condition Ranges: Vehicles
Condition
Ranges
Description
Very Good
(80% -
100%)
Like-new condition--mechanically excellent with no defects
or major wear.
No visible exterior damage--paint, body, and glass are in
near-perfect condition.
Interior is clean and well-maintained, with no significant
wear on seats, controls, or dashboard.
Optimal performance and fuel efficiency, with all systems
(engine, brakes, electronics) fully functional.
Minimal maintenance required beyond standard servicing.
Good
(60% - 80%)
Mechanically sound with no major issues--engine,
transmission, and brakes function well.
Minor cosmetic wear (small scratches or slight fading), but
no major damage.
Interior is in good condition, with all controls, seats, and
features fully operational.
Fuel efficiency and performance remain close to original
specifications.
Routine maintenance needed to keep it in top condition.
Fair
(40% - 60%)
Some mechanical wear and tear, but still operational with
occasional minor repairs needed.
Body has some cosmetic flaws, such as scratches, small
dents, or light rust.
Interior is intact but shows signs of aging, such as worn
upholstery or faded controls.
All major systems functional, but performance is slightly
reduced compared to new.
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Vehicles
As illustrated in Figure 51, the majority of the Township's vehicles are in fair or
better condition.
Table 63 summarizes the replacement cost-weighted condition of the Township's
vehicles portfolio. Based primarily on assessed condition data, 82% of vehicles are
in fair or better condition, with the remaining 18% in poor or lower condition.
Condition
Ranges
Description
Regular maintenance required to prevent further decline.
Poor
(20% - 40%)
Noticeable mechanical problems, such as engine misfires,
transmission slipping, or weak brakes.
Frequent minor repairs needed (e.g., battery issues, fluid
leaks, suspension wear).
Significant body wear including rust spots, fading paint, or
moderate dents.
Aging interior with visible wear on seats, dashboard, and
controls.
Decreased fuel efficiency and performance issues becoming
more noticeable.
Very Poor
(0% - 20%)
Severe mechanical and structural issues--engine,
transmission, or braking system may be failing or
unreliable.
Frequent breakdowns making the vehicle unsafe or
impractical for regular use.
Extensive body damage such as severe rust, dents, or
missing panels.
Worn-out interior with torn seats, broken controls, or non-
functional components (e.g., HVAC, lights, windows).
High repair costs often exceeding the vehicle's remaining
value. Near end-of-life.
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Vehicles
Figure 51 Asset Condition: Vehicles by Segment
All of heavy duty vehicles and the majority of light duty vehicles are in fair or better
condition while only 44% of marine assets fall within that range. These assets may
be candidates for replacement in the short term; similarly, assets in fair condition
may require rehabilitation or replacement in the medium term and should be
monitored for further degradation in condition.
Condition data was available for 72% of vehicles, based on replacement costs; age
was used to estimate condition for the remaining 28% of assets.
Table 63 Asset Condition: Vehicles by Segment
Asset
Category
≤ Poor $
≤ Poor
%
≥ Fair $
≥ Fair
%
Average
Condition24
Heavy Duty
-
0%
$1,013,350
100%
Fair (57%)
Light Duty
$158,000
34%
$300,000
66%
Fair (48%)
Marine
$149,000
56%
$118,000
44%
Fair (44%)
TOTAL
$307,000
18%
$1,431,350
82%
Fair (53%)
24 Weighted by replacement cost.
$20k
$70k
$213k
$29k
$129k
$400k
$69k
$101k
$400k
$125k
$24k
$158k
0%
20%
40%
60%
80%
100%
Marine
Light Duty
Heavy Duty
Value and Percentage of Asset Segments by
Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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10.3
Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL), or
design life; and the percentage of EUL consumed. The EUL is the serviceable
lifespan of an asset during which it can continue to fulfil its intended purpose and
provide value to users, safely and efficiently. As assets age, their performance
diminishes, often more rapidly as they approach the end of their design life.
In conjunction with condition data, an asset's age profile provides a more complete
summary of the state of infrastructure. It can help identify assets that may be
candidates for further review through condition assessment programs; inform the
selection of optimal lifecycle strategies; and improve planning for potential
replacement spikes.
Table 64 summarizes and Age analysis reveals that, on average, most vehicles are
reaching or have surpassed their established useful life.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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. Further, useful life estimates established
as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
Figure 52 illustrates the average current age of each asset type and its estimated
useful life. Both values are weighted by the replacement cost of individual assets.
Table 64 Detailed Asset Age: Vehicles
Segment
Weighted Average EUL Weighted Average Age
Heavy Duty
11.5
8.4
Light Duty
8
5.8
Marine
12.1
12.8
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Age analysis reveals that, on average, most vehicles are reaching or have
surpassed their established useful life.
Although asset age is an important measurement for long-term planning, condition
assessments provide a more accurate indication of actual asset needs. An asset
may perform past the established useful life if it has been maintained and kept in
good condition. Therefore, it is important to consider asset condition when
comparing asset age to its serviceable lifespan.
However, 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. Further, useful life estimates established
as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
Figure 52 Estimated Useful Life vs. Asset Age: Vehicles
10.4
Current Approach to Lifecycle
Management
The condition or performance of most assets will deteriorate over time. To ensure
that the Township's vehicles 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
for vehicles assets.
8.4
5.8
12.8
11.5
8
12.1
0
2
4
6
8
10
12
14
Heavy Duty
Light Duty
Marine
Number of Years
Weighted Average Age
Weighted Average EUL
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Table 65 Lifecycle Management Strategy: Vehicles
Activity Type
Description of Current Strategy
Maintenance /
Rehabilitation
Visual inspections completed and documented daily by staff
Every 4-7000 km includes a detailed inspection; tires are
rotated and oil is changed
Annual preventative maintenance activities include system
components check and additional detailed inspections
Inspections are compliant with the Ontario Commercial Vehicle
Safety Requirements
Replacement
Vehicle replacements are based on the budget available for
that asset. The Township is moving towards strategic selling
practices based on value, as well as engine hours as opposed
to age.
Vehicle age, kilometers and annual repair costs are taken into
consideration when determining appropriate treatment options
10.5
Forecasted Long-Term Replacement
Needs
Figure 53 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Township's vehicles portfolio. This analysis was
run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide
Assets, the Township's primary asset management system and asset register. The
Township's average annual requirements (red dotted line) total $148,270 for all
vehicles. Although actual spending may fluctuate substantially from year to year,
this figure is a useful benchmark value for annual capital expenditure targets (or
allocations to reserves) to ensure projects are not deferred and replacement needs
are met as they arise.
Replacement needs are forecasted to remain relatively steady aside from a valley in
2035-2039 and a peak in 2040-2044, which could be balanced in future capital
planning.
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Additionally, there is currently an approximate $119,000 backlog comprised of
assets that remain in service beyond their estimated useful life. The 10-year capital
requirements expanded in Appendix B have accounted for removing this
accumulation and continuing to rehabilitate or replace assets in alignment with the
proposed levels of service.
These projections and estimates are based on asset replacement costs and age
analysis. They are designed to provide a long-term, portfolio-level overview of
capital needs and should be used to support improved financial planning over
several decades.
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Figure 53 Forecasted Capital Replacement Needs: Vehicles 2025-2074
Often, the magnitude of replacement needs is substantially higher than most
municipalities can afford to fund. In addition, most assets may not need to be
replaced. However, quantifying and monitoring these spikes is essential for long-
term financial planning, including establishing dedicated reserves. In addition, a
robust risk framework will ensure that high-criticality assets receive proper and
timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B.
$148k
$867k $889k
$283k
$1.4m
$555k
$702k
$869k
$717k
$766k
$513k
$0
$200k
$400k
$600k
$800k
$1.0m
$1.2m
$1.4m
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
2070 -
2074
Heavy Duty
Light Duty
Marine
Annual Requirement
Total
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10.6
Risk Analysis
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.
10.6.1
Quantitative Risk
The following risk matrix provides a visual representation of the relationship
between the probability of failure and the consequence of failure for vehicles assets
based on 2023 inventory data. See Appendix D for the criteria used to determine
the risk rating of each asset.
Figure 54 Risk Matrix: Vehicles
Consequence of Failure
5
1 Asset
$350,000
1 Asset
$400,000
1 Asset
$400,000
1 Asset
$350,000
4
1 Asset
$213,350
3
2
1 Asset
$70,000
4 Assets
$158,000
3 Assets
$127,000
2 Assets
$87,000
3 Assets
$158,000
1
1 Asset
$20,000
2 Assets
$43,000
2 Assets
$38,000
1 Asset
$24,000
1
2
3
4
5
Probability of Failure
The matrix stratifies assets based on their individual probability and consequence of
failure, each scored from 1 to 5. Their product generates a risk index ranging from
1-25. Assets with the highest criticality and likelihood of failure receive a risk rating
of 25; those with lowest probability of failure and lowest criticality carry a risk
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rating of 1. As new data and information is gathered, the Township may consider
integrating relevant information that improves confidence in the criteria used to
assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database
(Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section
2.3.8 Evaluating Quantitative Risk for further details on the approach used to
determine asset risk ratings and classifications.
The following risk ratings are first shown for the overall category and then by
segment for the vehicles assets.
Figure 55 Risk Rating Ranges: Vehicles
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$542,350
$151,000
$87,000
$558,000
$400,000
(31%)
(9%)
(5%)
(32%)
(23%)
Table 66 Probability of Failure, Consequence of Failure, Risk Ratings: Vehicles by
Segment
Overall, the average risk rating for vehicles assets is 8.68, which is considered
Moderate.
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.
Asset Category
Probability of
Failure
Consequence of
Failure
Risk Rating
Heavy Duty
2.18 / 5
4.79 / 5
10.71 / 25
Light Duty
3.1 / 5
2 / 5
6.21 / 25
Marine
3.39 / 5
1.53 / 5
5.2 / 25
TOTAL
2.61 / 5
3.55 / 5
8.68 / 25
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10.6.2
Qualitative Risk
The following section summarizes key trends, challenges, and risks to service
delivery that the Township is currently facing:
Climate Change
The Township's vehicle fleet is increasingly affected by the impacts
of climate change. More frequent freeze/thaw cycles and extreme
weather conditions have increased the demand for road
maintenance activities such as salting and sanding, which in turn
lead to faster wear and tear on municipal vehicles. To address this,
the Township has implemented a fleet replacement strategy to
ensure timely renewal of assets reaching the end of their service
life. However, recent supply chain disruptions have resulted in
longer lead times for new vehicle acquisitions, which has presented
operational challenges.
10.7
Current Levels of Service
The tables that follow summarize the Township's current levels of service. There are
no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core
assets, therefore the KPIs below represent performance measures that the
Township has selected for this AMP.
10.7.1
Community Levels of Service
Table 67 Community Levels of Service: Vehicles
Service
Attribute
Qualitative Description
Current LOS (2023)
Scope
Description or images of
the types of vehicles (e.g.
light, medium, and heavy-
duty) that the Township
operates and the services
that they help to provide to
the community
The Township operates light duty, heavy
duty, and marine vehicles to provide
public works services to the residents of
The Archipelago. These services include
general maintenance of Municipal assets
as well as winter maintenance such as
snow removal. See Appendix C.
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10.7.2
Technical Levels of Service
Table 68 Technical Levels of Service: Vehicles
Service
Attribute
Technical Metric
Current LOS (2023)
Scope
Average condition of municipal vehicles
Fair (53%)
Performance
% of vehicles in fair or better condition
82%
% of vehicles in poor or worse condition
18%
Actual annual capital budget: average
required annual capital requirements
$148,270 : $148,270
(1 : 1)
10.8
Proposed Levels of Service
Table 69 Proposed LOS: Vehicles
Segment
Average Annual Requirement
Selection
-5%
Condition
Maintain
Baseline
+5%
Condition
No Target
Heavy Duty
44%
49%
54%
-
Maintain
$83,662
$83,662
$83,662
$90,372
Light Duty
45%
50%
55%
-
Maintain
$48,745
$48,745
$48,745
$57,250
Marine
27%
32%
37%
-
Maintain
$14,157
$15,863
$18,353
$25,192
TOTAL
$146,564
$148,270
$150,760
$172,814
$148,270
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As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider
proposed levels of service (LOS), discuss the associated risks and long-term
sustainability of these service levels, and explain the Township's ability to afford the
proposed LOS.
Table 69 outlines the proposed LOS scenarios that were analyzed for vehicles.
Further explanation and proposed LOS analysis at the portfolio level can be found in
Section 4 Proposed Levels of Service Analysis.
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Strategies
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Growth
11 Growth
The demand for infrastructure and services will change over time based on a
combination of internal and external factors. Understanding the key drivers of
growth and demand will allow the Township to plan for new infrastructure more
effectively, and the upgrade or disposal of existing infrastructure. Increases or
decreases in demand can affect what assets are needed and what level of service
meets the needs of the community.
11.1
Growth Assumptions
11.1.1
Township of the Archipelago Official Plan
(Consolidated 2019)
The Township of The Archipelago Official Plan was approved by the Minister of
Municipal Affairs and Housing on June 1, 1983. There have been continuous
amendments adopted by Council since, with the latest version being consolidated
as of January 1, 2019. The purpose of the Official Plan is to establish land use
policies which will guide development for the whole of The Archipelago Township,
and which will provide for the long-term use of land and water for public and
private recreation in accordance with the goals and objective set out for the
Township. The Official Plan conforms to the 2011 Growth Plan for Northern Ontario
(GPNO).
The Official Plan places an importance on preserving The Archipelago's high quality
recreational character and natural environment. The Archipelago is a highly
seasonal Township. Year-round residents comprise a small proportion of the total
population of the Township and generally fulfil a service function to the recreational
users of The Archipelago or are retired. The year-round residents are concentrated
in the communities of Pointe au Baril Station, the Woods Bay Neighborhood, and
the inland Lake Neighborhoods.
The year-round population is expected to remain stable or increase marginally in
the foreseeable future. However, improvements in communication technology are
providing more people with the ability to live in remote areas. Several year-round
residents are operating professional business from dwellings originally used as
cottages. It is expected that some growth in the year-round component of the
population may be attributed to this phenomenon.
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Growth
Relative to other small Townships in the province, The Archipelago is not expected
to experience a lot of growth. The Archipelago aims to preserve the integrity of the
natural features of its landscape, first and foremost.
11.1.2
Growth Plan for Northern Ontario (2011)
The Growth Plan for Northern Ontario was released on March 3, 2011 and is a 25-
year plan that provides guidance for municipalities in Northern Ontario to align
provincial decision-making and investment for economic and population growth.
The growth management goals for the Growth Plan for Northern Ontario are as
follows:
Diversifying of traditional resource-based industries
Workforce education and training
Integration of infrastructure investments and planning
Tools for Indigenous peoples' participation in the economy
The Official Plan of the Township of The Archipelago incorporates the above growth
management goals of the Growth Plan for Northern Ontario, focusing particularly on
sustainability (economic, social, and environmental), accommodating the diverse
needs of all residents, optimizing existing infrastructure, quality of place, and a
welcoming and inclusive community that emphasizes unique local features.
11.2
Impact of Growth on Lifecycle
Activities
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.
For the near- to mid-term, the projected population growth in the Township is not
expected to significantly impact the current portfolio of assets required by the
Township to maintain acceptable service levels.
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Financial Strategy
12 Financial Strategy
For an asset management plan to be effective and meaningful, it must be
integrated with financial planning and long-term budgeting. The development of a
comprehensive financial plan will allow the Township of the Archipelago to identify
the financial resources required for sustainable asset management based on
existing asset inventories, desired levels of service, and projected growth
requirements.
This report develops such a financial plan by presenting several scenarios for
consideration and culminating with final recommendations. As outlined below, the
scenarios presented model different combinations of the following components:
The financial requirements for:
-
Existing assets
-
Existing service levels
-
Requirements of contemplated changes in service levels (none
identified for this plan)
-
Requirements of anticipated growth (none identified for this plan)
Use of traditional sources of municipal funds:
-
Tax levies
-
User fees
-
Debt
-
Development charges
Use of non-traditional sources of municipal funds:
-
Reallocated budgets
-
Partnerships
-
Procurement methods
Use of Senior Government Funds:
-
Canada Community-Building Fund (CCBF)
-
Annual grants
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Financial Strategy
Note: Periodic grants are normally not included due to Provincial requirements for
firm commitments. However, if moving a specific project forward is wholly
dependent on receiving a one-time grant, the replacement cost included in the
financial strategy is the net of such grant being received.
If the financial plan component results in a funding shortfall, the Province requires
the inclusion of a specific plan as to how the impact of the shortfall will be
managed. In determining the legitimacy of a funding shortfall, the Province may
evaluate a Township's approach to the following:
In order to reduce financial requirements, consideration has been given to
revising service levels downward.
All asset management and financial strategies have been considered. For
example:
-
If a zero-debt policy is in place, is it warranted? If not the use of debt
should be considered.
-
Do user fees reflect the cost of the applicable service? If not, increased
user fees should be considered.
12.1
Annual Requirements & Capital
Funding
12.1.1
Annual Requirements
The annual requirements represent the amount the Township should allocate
annually to each asset category to meet replacement needs as they arise, prevent
infrastructure backlogs and achieve long-term sustainability. In total, the Township
must allocate approximately $1,599,610 annually to address capital requirements
for the assets included in this AMP.
For most asset categories the annual requirement has been calculated based on a
"replacement only" scenario, in which capital costs are only incurred at the
construction and replacement of each asset.
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Financial Strategy
Figure 56 Annual Capital Funding Requirements by Asset Category
However, for the Road Network, lifecycle management strategies have been
developed to identify capital costs that are realized through strategic rehabilitation
and renewal of the Township's roads. The development of these strategies allows
for a comparison of potential cost avoidance if the strategies were to be
implemented. The following table compares scenarios for the Road Network:
Replacement Only Scenario: Based on the assumption that assets
deteriorate and - without regularly scheduled maintenance and rehabilitation
- are replaced at the end of their service life.
Lifecycle Strategy Scenario: Based on the assumption that lifecycle
activities are performed at strategic intervals to extend the service life of
assets until replacement is required.
Table 70 Lifecycle Strategies Annual Savings
The implementation of a proactive lifecycle strategy for roads leads to a potential
annual cost avoidance of $141,296. As the proposed LOS scenario including the
25 LC = Lifecycle strategy
$24k
$70k
$148k
$285k
$289k
$783k
$200k
$400k
$600k
$800k
Bridges and Structural Culverts
Land Improvements
Vehicles
Machinery and Equipment
Buildings
Road Network
Asset
Category
Average Annual Requirements
Difference
Proposed LOS
Scenario
No Target
(with LC25)
No Target
(without LC)
Road Network
$782,544
$845,332
$923,840
$141,296
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Financial Strategy
lifecycle strategy represents the lowest cost option available to the Township, we
have used these annual requirements in the development of the financial strategy.
12.1.2
Annual Funding Available
Based on a historical analysis of sustainable capital funding sources, the Township
is committing approximately $1,546,779 towards capital projects per year. Given
the annual capital requirement of $1,599,610, there is currently a funding gap of
$52,831 annually.
Figure 57 Annual Requirements vs. Capital Funding Available
12.2
Funding Objective
We have developed a scenario that would enable Township of the Archipelago to
achieve full funding within 5 years for the following assets:
$24k
$70k
$148k
$285k
$289k
$730k
$24k
$70k
$148k
$285k
$289k
$783k
$0
$200k
$400k
$600k
$800k
Bridges and Structural Culverts
Land Improvements
Vehicles
Machinery and Equipment
Buildings
Road Network
Average Annual Requirements
Actual Reinvestment Rate
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Financial Strategy
Tax Funded Assets: Road Network, Bridges & Structural Culverts,
Buildings, Land Improvements, Machinery & Equipment, Vehicles
Note: For the purposes of this AMP, we have excluded gravel roads since they are a
perpetual maintenance asset and end of life replacement calculations do not
normally apply. If gravel roads are maintained properly, they can theoretically have
a limitless service life.
For each scenario developed we have included strategies, where applicable,
regarding the use of cost containment and funding opportunities.
12.3
Financial Profile: Tax Funded Assets
12.3.1
Current Funding Position
The following tables show, by asset category, The Archipelago's average annual
asset investment requirements, current funding positions, and funding increases
required to achieve full funding on assets funded by taxes.
Table 71 Annual Available Funding for Tax Funded Assets
Asset Category
AAR
Annual Funding Available
Annual
Deficit
Taxes
CCBF
OCIF
Total
Bridges and Structural
Culverts
$24k
$24k
$24k
-
Buildings
$289k
$289k
$289k
-
Land Improvements
$70k
$70k
$70k
-
Machinery and
Equipment
$285k
$285k
$285k
-
Road Network
$783k
$483k
$34k
$213k
$730k
$53k
Vehicles
$148k
$148k
$148k
-
TOTAL
$1.6m
$1.3m
$34k
$213k
$1.5m
$53k
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Financial Strategy
The average annual investment requirement for the above categories is
$1,599,610. Annual revenue currently allocated to these assets for capital purposes
is $1,546,779 leaving an annual deficit of $52,831. Put differently, these
infrastructure categories are currently funded at 97% of their long-term
requirements.
12.3.2
Full Funding Requirements
In 2022, the Township of the Archipelago had budgeted annual tax revenues of
approximately $1,300,000. As illustrated in the following table, without
consideration of any other sources of revenue or cost containment strategies, full
funding would require the following tax change over time:
Table 72 Tax Increase Requirements for Full Funding
Asset Category
Tax Change Required for Full Funding
Bridges and Structural Culverts
-
Buildings
-
Land Improvements
-
Machinery and Equipment
-
Road Network
0.6%
Vehicles
-
TOTAL
0.6%
The following changes in costs and/or revenues over the next number of years
should also be considered in the financial strategy:
The Archipelago's debt payments for these asset categories will be
decreasing $140,315 by 2044.
Our scenario modeling include capturing the above changes and allocating them to
the infrastructure deficit outlined above. The table below outlines this concept and
presents several options:
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Financial Strategy
Table 73 Tax Increase Options 5-20 Years
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
$52,830
$52,830
$52,830
$52,830
Change in Debt Costs
N/A
N/A
$100,553
$140,315
Resulting
Infrastructure Deficit:
$52,830
$52,830
-$47,723
-$87,485
Tax Increase Required
0.6%
0.6%
0.6%
0.6%
Annually:
0.1%
0.1%
0.0%
0.0%
12.3.3
Financial Strategy Recommendations
Considering all the above information, we recommend the 5-year option. This
involves full funding being achieved over five years by:
Increasing tax revenues by 0.1% each year for the next five years solely for
the purpose of phasing in full funding to the asset categories covered in this
section of the AMP in alignment with the targets set out in the proposed
levels of service.
-
A 0.1% property tax increase calculates to an approximate $3.70
annual increase per household per year for five years.
-
Full sustainability will be achieved with an overall 0.6% property tax
increase resulting in an approximate $18.50 per household within the
Township.
Allocating the current CCBF and OCIF revenue as outlined previously.
Reallocating appropriate revenue from categories in a surplus position to
those in a deficit position.
Increasing existing and future infrastructure budgets by the applicable
inflation index on an annual basis in addition to the deficit phase-in.
Notes:
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Financial Strategy
1. As in the past, periodic senior government infrastructure funding will most
likely be available during the phase-in period. By Provincial AMP rules, this
periodic funding cannot be incorporated into an AMP unless there are firm
commitments in place. We have included OCIF formula-based funding, if
applicable, since this funding is a multi-year commitment26.
2. We realize that raising tax revenues by the amounts recommended above for
infrastructure purposes will be very difficult to do. However, considering a
longer phase-in window may have even greater consequences in terms of
infrastructure failure.
Although this option achieves full funding on an annual basis in 5 years and
provides financial sustainability over the period modeled, the recommendations do
require prioritizing capital projects to fit the resulting annual funding available.
Prioritizing future projects will require the current data to be replaced by condition-
based data. Although our recommendations include no further use of debt, the
results of the condition-based analysis may require otherwise.
12.4
Use of Debt
Debt can be strategically utilized as a funding source with in the long-term financial
plan. The benefits of leveraging debt for infrastructure planning include:
The ability to stabilize tax & user rates when dealing with variable and
sometimes uncontrollable factors
Equitable distribution of the cost/benefits of infrastructure over its useful life
A secure source of funding
Flexibility in cash flow management
Debt management policies and procedures with limitations and monitoring practices
should be considered when reviewing debt as a funding option. In efforts to
mitigate increasing commodity prices and inflation, interest rates have been rising.
Sustainable funding models that include debt need to incorporate the now current
realized risk of rising interest rates. The following graph shows the historical
changes to the lending rates:
26 The Township should take advantage of all available grant funding programs and transfers from other levels of
government. While OCIF has historically been considered a sustainable source of funding, the program is currently
undergoing review by the provincial government. Depending on the outcome of this review, there may be changes
that impact its availability.
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Financial Strategy
Figure 58 Historical Prime Rate
A change in 15-year rates from 5% to 7% would change the premium from 45% to
65%. Such a change would have a significant impact on a financial plan.
For reference purposes, the following table outlines the premium paid on a project
if financed by debt. For example, a $1 million project financed at 3.0%27 over 15
years would result in a 26% premium or $260 thousand of increased costs due to
interest payments. For simplicity, the table does not consider the time value of
money or the effect of inflation on delayed projects.
Table 74 Interest Premiums Paid
27 Current municipal Infrastructure Ontario rates for 15-year money is 4.03%.
0.00%
5.00%
10.00%
15.00%
Historical Prime Business Interest Rate
Interest
Rate
Number of Years Financed
5
10
15
20
25
30
7.0%
22%
42%
65%
89%
115%
142%
6.5%
20%
39%
60%
82%
105%
130%
6.0%
19%
36%
54%
74%
96%
118%
5.5%
17%
33%
49%
67%
86%
106%
5.0%
15%
30%
45%
60%
77%
95%
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Financial Strategy
The following tables outline how The Archipelago has historically used debt for
investing in the asset categories as listed. As of year-end 2023, there is currently
$1.6 million of debt outstanding for the assets covered by this AMP with
corresponding principal and interest payments of $140,315, well within its
provincially prescribed maximum of $2.7 million.
Table 75 The Archipelago Use of Debt 2020-2024
Interest
Rate
Number of Years Financed
5
10
15
20
25
30
4.5%
14%
26%
40%
54%
69%
84%
4.0%
12%
23%
35%
47%
60%
73%
3.5%
11%
20%
30%
41%
52%
63%
3.0%
9%
17%
26%
34%
44%
53%
2.5%
8%
14%
21%
28%
36%
43%
2.0%
6%
11%
17%
22%
28%
34%
1.5%
5%
8%
12%
16%
21%
25%
1.0%
3%
6%
8%
11%
14%
16%
0.5%
2%
3%
4%
5%
7%
8%
0.0%
0%
0%
0%
0%
0%
0%
Asset
Category
Current Debt
Outstanding
Use of Debt in the Last Five Years
2020
2021
2022
2023
2024
Road Network
$753,275
-
-
-
$789,498
-
Buildings
$878,525
-
-
-
$924,410
-
TOTAL
$1,631,799
-
-
- $1,713,908
-
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Financial Strategy
Table 76 The Archipelago Principal and Interest Payments
The revenue options outlined in this plan allow the Township of the Archipelago to
fully fund its long-term infrastructure requirements for the selected proposed levels
of service without further use of debt.
12.5
Use of Reserves
12.5.1
Available Reserves
Reserves play a critical role in long-term financial planning. The benefits of having
reserves available for infrastructure planning include:
The ability to stabilize tax rates when dealing with variable and sometimes
uncontrollable factors
Financing one-time or short-term investments
Accumulating the funding for significant future infrastructure investments
Managing the use of debt
Normalizing infrastructure funding requirement
There is considerable debate in the municipal sector as to the appropriate level of
reserves that a Township should have on hand. There is no clear guideline that has
gained wide acceptance. Factors that municipalities should take into account when
determining their capital reserve requirements include:
Breadth of services provided
Age and condition of infrastructure
Use and level of debt
Asset
Category
Principal & Interest Payments in the Next Ten Years
2025
2026
2027
2028
2029
2034
Road Network
$63k
$63k
$63k
$63k
$63k
$63k
Buildings
$78k
$78k
$78k
$78k
$78k
$78k
TOTAL
$140k
$140k
$140k
$140k
$140k
$140k
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Financial Strategy
Economic conditions and outlook
Internal reserve and debt policies.
As of December 31, 2021, the Township's reserves totaled an approximate $17.7
million. These reserves are available for use by applicable asset categories during
the phase-in period to full funding. This coupled with The Archipelago's judicious
use of debt in the past, allows the scenarios to assume that, if required, available
reserves and debt capacity can be used for high priority and emergency
infrastructure investments in the short- to medium-term.
12.5.2
Recommendation
In 2025, Ontario Regulation 588/17 requires The Archipelago to integrate proposed
levels of service for all asset categories in its asset management plan update. We
recommend that future planning should reflect adjustments to service levels and
their impacts on reserve balances.
The funding strategy outlined above aligns with achieving and maintaining the
proposed levels of service outlined in Section 4.
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Recommendations & Key Considerations
13 Recommendations & Key
Considerations
13.1
Financial Strategies
Review the feasibility of adopting a full-funding scenario to achieve 100% of
average annual funding requirements necessary for the proposed levels of
service outlined in Section 4. This includes increasing taxes by 0.1% per year
over a period of five years.
Continued allocation of OCIF and CCBF funding as previously outlined.
Reallocating appropriate revenue from categories in a surplus position to
those in a deficit position.
Increasing existing and future infrastructure budgets by the applicable
inflation index on an annual basis in addition to the deficit phase-in.
Continue to apply for project specific grant funding to supplement sustainable
funding sources.
13.2
Asset Data
Continuously review, refine, and calibrate lifecycle and risk profiles to better
reflect actual practices and improve capital projections. In particular:
-
The timing of various lifecycle events, the triggers for treatment,
anticipated impacts of each treatment, and costs
-
The various attributes used to estimate the likelihood and consequence
of asset failures, and their respective weightings
Asset management planning is highly sensitive to replacement costs.
Periodically update replacement costs based on recent projects, invoices, or
estimates, as well as condition assessments, or any other technical reports
and studies. Material and labor costs can fluctuate due to local, regional, and
broader market trends, and substantially so during major world events.
Accurately estimating the replacement cost of like-for-like assets can be
challenging. Ideally, several recent projects over multiple years should be
used. Staff judgement and historical data can help attenuate extreme and
temporary fluctuations in cost estimates and keep them realistic.
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Recommendations & Key Considerations
Like replacement costs, an asset's established serviceable life can have
dramatic impacts on all projections and analyses, including condition, long-
range forecasting, and financial recommendations. Periodically reviewing and
updating these values to better reflect in-field performance and staff
judgement is recommended.
Continue with condition assessments to maintain an updated inventory.
Consider collecting any additional attributes that you may find useful to track
in the future.
-
The Township should implement regular condition assessments for all
buildings to better inform short- and long-term capital requirements,
such as the recently completed BCA.
Componentize assets where possible to assess their condition, maintenance
needs, and replacement costs accurately.
13.3
Lifecycle Management Strategies
This AMP includes capital costs associated with the reconstruction of bridges
and culverts as well as projected capital rehabilitation and renewal costs.
Continue to execute OSIM inspections every 2 years and keep projected
capital rehabilitation and renewal costs up to date.
Continue implementing the identified lifecycle management strategies for
HCB and LCB roads to maintain cost avoidance and sustain a high quality of
road pavement condition.
Evaluate the efficacy of the Township's lifecycle management strategies at
regular intervals to determine the impact cost, condition, and risk. This could
be done by updating the condition assessment data whenever new data
becomes available and rerunning the capital projections and risk reports.
13.4
Risk & Levels of Service
Risk models and matrices can play an important role in identifying high-value
assets, and developing an action plan which may include repair,
rehabilitation, replacement, or further evaluation through condition
assessments. As a result, project selection and the development of multi-
year capital plans can become more strategic and objective. Initial models
have been built into Citywide for all asset groups. These models reflect
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Recommendations & Key Considerations
current data, which was limited. As the data evolves and new attribute
information is obtained, these models should also be refined and updated.
Available data on current performance should be centralized and tracked to
support any calibration of service levels on proposed levels of service in the
future.
Staff should monitor evolving local, regional, and environmental trends to
identify factors that may shape the demand and delivery of infrastructure
programs. These can include population growth, and the nature of population
growth; climate change and extreme weather events; and economic
conditions and the local tax base. This data can also be used to review
service level targets.
Consider developing a plan to address accessibility deficits for buildings
assets. Future considerations may involve retrofitting projects to address
these issues comprehensively.
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Appendices
Township of the Archipelago
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159 Appendix A - Infrastructure Report Card
Appendix A - Infrastructure
Report Card
Asset
Category
Replacement
Cost
Average
Condition
Financial Capacity
Bridges &
Structural
Culverts
$2.0 m
Good
(74%)
Annual Requirement:
$24,020
Funding Available:
$24,020
Annual Deficit:
-
Road Network
$16.5 m
Good
(78%)
Annual Requirement:
$782,543
Funding Available:
$729,713
Annual Deficit:
$52,830
Buildings
$18.4 m
Very Good
(87%)
Annual Requirement:
$289,445
Funding Available:
$289,445
Annual Deficit:
-
Land
Improvements
$1.9 m
Good
(65%)
Annual Requirement:
$69,963
Funding Available:
$69,963
Annual Deficit:
-
Machinery &
Equipment
$3.3 m
Poor
(36%)
Annual Requirement:
$285,370
Funding Available:
$285,370
Annual Deficit:
-
Vehicles
$1.7 m
Fair (53%)
Annual Requirement:
$148,270
Funding Available:
$148,270
Annual Deficit:
-
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Appendix B - 10-Year Capital Requirements
Appendix B - 10-Year Capital
Requirements
Bridges & Structural Culverts
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Bridges
-
-
-
-
-
-
-
-
-
-
Structural Culverts
-
-
-
-
-
-
$425k
-
-
-
TOTAL
-
-
-
-
-
-
$425k
-
-
-
Road Network
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
HCB
-
$47k
$103k
$53k
$74k
$54k
$116k
$127k
$192k
$1.5m
LCB
$184k
$43k
$524k
$62k
-
-
$592k
$34k
$2.3m
$527k
Signs
$31k
-
-
-
-
-
-
$3k
$7k
-
Small Culverts
-
-
-
$208k
$42k
-
-
-
$50k
-
TOTAL
$214k
$90k
$627k
$323k
$115k
$54k
$709k
$164k
$2.5m
$2.0m
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Appendix B - 10-Year Capital Requirements
Buildings
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Community and
Culture
-
-
-
-
-
-
-
-
-
-
General
Government
-
-
-
-
$134k
$98k
$67k
$77k
$43k
$14k
Health
-
-
-
-
-
-
-
-
-
-
Public Works
-
-
-
-
$10k
$57k
$35k
$1k
$3k
-
Washrooms
-
-
-
-
-
-
-
-
-
-
Waste
Management
-
-
-
$5k
$3k
$22k
$9k
$14k
$3k
-
TOTAL
-
-
-
$5k
$147k
$177k
$111k
$92k
$48k
$14k
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Appendix B - 10-Year Capital Requirements
Land Improvements
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Cemetery
-
-
-
-
-
-
-
-
-
-
Marine
-
-
-
$20k
-
$40k
$20k
$70k
-
-
Parking Lots
-
$45k
-
-
-
-
-
-
-
-
Recreation
-
-
-
$45k
$120k
-
-
-
-
-
Towers
-
-
-
-
-
-
-
-
-
-
Waste
Management
$16k
$16k
-
-
-
-
-
-
-
$150k
TOTAL
$16k
$61k
-
$65k
$120k
$40k
$20k
$70k
-
$150k
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Appendix B - 10-Year Capital Requirements
Machinery and Equipment
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Furniture and
Fixtures
$115k
$60k
$32k
$79k
$28k
$57k
$90k
$37k
$54k
$71k
Public Works
$566k
$240k
$388k
-
$250k
$284k
-
$257k
$166k
$281k
Waste
Management
-
-
-
-
-
-
-
-
-
-
TOTAL
$681k
$300k
$420k
$79k
$278k
$341k
$90k
$294k
$220k
$352k
Vehicles
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Heavy Duty
-
-
-
$400k
-
-
$613k
-
-
-
Light Duty
$158k
-
-
$101k
$59k
$70k
-
-
$158k
-
Marine
$24k
$38k
$32k
-
$55k
-
-
$24k
-
$24k
TOTAL
$182k
$38k
$32k
$501k
$114k
$70k
$613k
$24k
$158k
$24k
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Appendix C - Level of Service Maps & Photos
Appendix C - Level of Service Maps &
Photos
Road Network Maps
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
PCI Decision Matrix
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Appendix C - Level of Service Maps & Photos
Images of Bridges and Structural Culverts
Blackstone Lake Road Bridge
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
Kapikog Lake Culvert
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Appendix C - Level of Service Maps & Photos
Skerryvore Road Culvert
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Appendix C - Level of Service Maps & Photos
Buildings
Name
Type
Address
Location
Holiday Cove Marina
Marina
Rose Point Road
Township Boat Lauch
Boat Ramp
Woods Bay
Fox Back Road Boat Launch
Boat Ramp
Fox Back Road
Healey Lake Boat Launch
Boat Ramp
Healey Lake Road
Pine Bay Landing
Boat Ramp
Healey Lake Road
Crane Lake Boat Launch
Boat Ramp
Crane Lake Road
Kapikog Lake Boat Launch
Boat Ramp
Kapikog Lk
Bayfield Landing
Boat Ramp
Bayfield Harbour
Naiscoot Public Launch
Boat Ramp
Naiscoot Lk
Pointe au Baril Community Centre
Community Centre
70 South Shore Road
Georgian Cliffs Memorial Park
Cemetery
Cemetery
South Shore Road
Archipelago Township Office
Office
9 James St
Pointe Au Baril Boat Ramp
Boat Ramp
38 South Shore Road
Pointe au Baril Nursing Station
Nursing Station
70 South Shore Road
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Appendix C - Level of Service Maps & Photos
Name
Type
Address
Location
Archipelago Public Works
Public Works
45 James Bay Junction Road
Healey Lake Transfer Station
Waste Transfer Station
169 Healey Lake Rd
Bayfield Transfer Station
Waste Transfer Station
100 Highway 529A
Woods Bay Transfer Station
Waste Transfer Station
718 Healey Lake Rd
Skerryvore Transfer Station
Waste Transfer Station
449 Skerryvore Road
Pointe au Baril Lighthouse
POI
1734 Georgian Bay Water
Crane Lake Transfer Station
Waste Transfer Station
346 Blackstone-Crane Lake Rd
Pointe au Baril Transfer Station
Waste Transfer Station
27 South Shore Road
Site 9 Landfill Site
Waste Transfer Station
10 Site 9 Road
Sheep Head Transfer Station
Waste Transfer Station
378 Georgian Bay Water
Devils Elbow Transfer Station
Waste Transfer Station
137 B704 Island
Pointe Au Baril Public Library
Library
70 South Shore Road
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Appendix C - Level of Service Maps & Photos
Land Improvements
Pointe au Baril Wharf and Seawall
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
Vehicles
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
Machinery & Equipment
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix C - Level of Service Maps & Photos
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Appendix D - Risk Rating Criteria
Appendix D
- Risk Rating Criteria
Probability of Failure
Asset Category
Risk Classification
Risk Criteria
Value/Range
Probability of Failure Score
HCB/LCB Roads
Economic (100%)
Condition
80-100
1
70-79
2
65-69
3
45-64
4
0-44
5
All
(Excluding HCB/LCB
Roads)
Economic (100%)
Condition
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
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Appendix D - Risk Rating Criteria
Consequence of Failure
Asset Category
Risk Classification
Risk Criteria
Value/Range
Consequence of Failure Score
Bridges &
Culverts
Economic
(100%)
Replacement
Cost
$0-$250,000
1
$250,001-$500,000
2
$500,001-$1,000,000
3
$1,000,001-$2,000,000
4
$2,000,000+
5
Buildings
Economic
(100%)
Replacement
Cost
$0-$20,000
1
$20,001-$50,000
2
$350,001-$100,000
3
$100,001-$250,000
4
$250,000+
5
HCB/LCB Roads
Economic
(100%)
Replacement
Cost
$0-$100,000
1
$100,001-$250,000
2
$250,001-$500,000
3
$500,001-$1,000,000
4
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Appendix D - Risk Rating Criteria
Asset Category
Risk Classification
Risk Criteria
Value/Range
Consequence of Failure Score
$1,000,000+
5
Machinery &
Equipment,
Vehicles
Economic
(100%)
Replacement
Cost
$0-$25,000
1
$25,001-$75,000
2
$75,001-$150,000
3
$150,001-$300,000
4
$300,000+
5
Small Equipment
Economic
(100%)
Replacement
Cost
$0-$5,000
1
$5,001-$10,000
2
$10,001-$20,000
3
$20,001-$30,000
4
$30,000+
5
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201 Appendix E - Data Quality Dimensions
Appendix E - Data Quality
Dimensions
The quality of data affects the reliability of its outputs, and the trust organizations
have in those outputs, especially when used to inform decisions. As a best
practice, the quality of data can be evaluated based on the six data quality
dimensions. These quality dimensions are as follows:
1. Accuracy: The information collected reflects reality and can be confirmed
with a verifiable source (i.e., VIN information). An example of accuracy not
being met is the in-service year on record is 1950 and the asset model
indicates a service year of 1980. Accurate reporting assists in powerful and
trusted reporting.
2. Completeness: Data is comprehensively collected so that it can deliver
meaningful inferences and effectively inform decisions. For example, required
fields are populated for all assets.
3. Consistency: Data on the same asset is consistent across multiple sources if
applicable. For example, information in the Asset Management System
matches information in the finance system.
4. Timeliness: Data is available when it is needed. This often requires limited
lag time between the event that generates the asset data (i.e., condition
assessment) and the updates to the system to reflect the event.
5. Validity: Consistent data format that is supported by any associated
standards or structures. For example, the asset in service date is consistently
formatted YYYY-MM-DD and not sometimes YYYY-DD-MM and month value is
never greater than 12.
6. Uniqueness: Each asset appears only once in the system and there is no
data duplication or overlaps. For example, each asset has a unique asset ID,
no duplication of asset information.
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202 Appendix E - Data Quality Dimensions
Township