Asset Management Plan 2021-2030
Thessalon, Ontario
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Project No. 21-116
Asset Management Plan
2021-2030
The Town of Thessalon
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Limitations and Disclosure
This document has been prepared by Infrastructure Solutions Inc. ("ISI") for the
exclusive use of The Town of Thessalon (the "Client"). The information, opinions,
recommendations, conclusions and/or analysis contained within this document are
based upon observations and information made available to ISI as at the time of the
preparation of the document. Any information provided to ISI by the Client on any third
party is assumed to be correct.
The information, opinions, recommendations, conclusions and/or analysis contained
within this document are given based upon observations made by ISI and using
generally accepted professional judgment and principles. Any use which a third party
makes of this document, or any reliance or decisions or actions taken by any such third
party based upon this document are the sole responsibility of any such third party and
ISI accepts no responsibility, liability or risk for any damages, loss, or claims, if any,
suffered by any such third party or any related party of such third party as a result of
any reliance, or decisions made or actions taken, based upon this document.
The preparation of this project was carried out with assistance from the Government of Canada
and the Federation of Canadian Municipalities. Notwithstanding this support, the views expressed
are the personal views of the authors, and the Federation of Canadian Municipalities and the
Government of Canada accept no responsibility for them.
Infrastructure Solutions (Software) Inc. assigns all rights, title and interest, including all intellectual
property rights, in and to this document titled "Asset Management Plan 2021-2030, Town of
Thessalon" to the Town of Thessalon, providing sole and exclusive rights to its use, as well as a
waiver of all non-assignable rights including moral rights.
© 2021, The Corporation of the Town of Thessalon. All Rights Reserved.
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TABLE OF CONTENTS
1
EXECUTIVE SUMMARY ...................................................................................................................... 4
2
ONTARIO ASSET MANAGEMENT REGULATION ............................................................................ 5
2.1
HISTORICAL OVERVIEW .................................................................................................................................... 5
2.2
REQUIREMENTS OF ONTARIO REGULATION 588/17 ............................................................................................ 6
3
SCOPE AND METHODOLOGY ........................................................................................................... 9
4
STATE OF THE INFRASTRUCTURE ................................................................................................ 10
4.1
ASSET INVENTORY ........................................................................................................................................ 10
4.2
REPLACEMENT COST ..................................................................................................................................... 10
4.3
CONDITION ASSESSMENT APPROACH .............................................................................................................. 11
4.4
LEVELS OF SERVICE ...................................................................................................................................... 12
4.5
CLIMATE CHANGE AND ADAPTION MEASURES .................................................................................................. 22
5
COMPREHENSIVE ANALYSIS BY ASSET TYPE ............................................................................ 23
5.1
ROAD NETWORK ........................................................................................................................................... 24
5.2
BRIDGES ...................................................................................................................................................... 36
5.3
WATERLINES ................................................................................................................................................ 48
5.4
HYDRANTS ................................................................................................................................................... 55
5.5
SEWERLINES ................................................................................................................................................. 59
5.6
PUMPING STATIONS (SEWER) ......................................................................................................................... 65
5.7
LAGOONS ..................................................................................................................................................... 69
5.8
BUILDINGS .................................................................................................................................................... 73
5.9
VEHICLES ..................................................................................................................................................... 78
5.10
EQUIPMENT .................................................................................................................................................. 83
5.11
BALL FIELD DIAMONDS .................................................................................................................................. 88
5.12
SIDEWALKS .................................................................................................................................................. 92
5.13
CURBS & GUTTERS ....................................................................................................................................... 97
5.14
SIGNS (NOT TRAFFIC) .................................................................................................................................. 100
5.15
STORMLINES ............................................................................................................................................... 103
5.16
STREETLIGHTS ............................................................................................................................................ 109
5.17
WATER TREATMENT PLANT .......................................................................................................................... 113
6
CAPITAL INVESTMENT PLAN ........................................................................................................ 118
6.1
BACKGROUND............................................................................................................................................. 118
6.2
OVERVIEW .................................................................................................................................................. 118
6.3
METHODOLOGY ........................................................................................................................................... 119
7
ASSET MANAGEMENT PLAN RESULTS ...................................................................................... 120
8
FINANCIAL PROJECTIONS ............................................................................................................ 122
8.1
CONSUMER PRICE INDEX: OUR PERSPECTIVE ................................................................................................ 123
8.2
FINANCIAL STRATEGY ASSUMPTIONS ............................................................................................................ 124
8.3
FUNDING REQUIREMENTS ............................................................................................................................. 124
9
FINANCIAL STRATEGIES - THE INFRASTRUCTURE GAP ........................................................ 126
9.1
STRATEGY 1: SPECIAL LEVY ........................................................................................................................ 126
9.2
STRATEGY 2: RETHINKING INFRASTRUCTURE SERVICES................................................................................. 127
9.3
STRATEGY 3: STRATEGIC USE OF DEBT ....................................................................................................... 128
9.4
STRATEGY 4: USE OF GRANTS .................................................................................................................... 129
10
RECOMMENDATIONS ..................................................................................................................... 131
10.1
SOTI RECOMMENDATIONS ........................................................................................................................... 131
10.2
CAPITAL PLAN RECOMMENDATIONS .............................................................................................................. 132
10.3
LEVEL OF SERVICE RECOMMENDATIONS ........................................................................................................ 133
10.4
FINANCIAL STRATEGY RECOMMENDATIONS ................................................................................................... 133
11
CONCLUSION .................................................................................................................................. 134
APPENDIX A - DETAILED LIST OF CAPITAL PROJECTS ................................................................... 136
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1 EXECUTIVE SUMMARY
The Town of Thessalon is undertaking a detailed evaluation of all its existing infrastructure in
order to update their long-term Asset Management Plan, put the municipality in a position to
receive the Federal Canada Community-Building Fund (formerly Gas Tax Fund) and other grants,
and build a fully implementable program for its residents which aims to further strengthen
municipal asset management practices.
Infrastructure Solutions Inc. was well supported by the Town's Asset Manager to accumulate the
geometric and condition assessment data, where available. We based the Asset Management
Plan on all asset types and their current replacement costs. Asset lifespans, condition and project
requirements were determined by engineering assessments and degradation curves. Where
condition assessments were unavailable, ISI applied an age-based analysis. Our objective was
to build a practical asset management plan based on optimizing the capital spend and taking
corrective action to address the Town of Thessalon's infrastructure deficit.
The Municipality's infrastructure deficit is defined as the added investment that would be required
to maintain a Municipality's infrastructure at appropriate service levels and in a good state of
repair today. Based on our calculations, Thessalon's infrastructure deficit is calculated to be
$2,866,434. The Town's infrastructure deficit is quite significant and eliminating it within a 10-
year period will be challenging with the Town's current financial capability. We have analyzed
the Town's assets in detail with the objective of optimizing how capital is expended.
We have reviewed the Town's current/projected capital contributions in relation to its
current/projected needs. For the primarily tax funded assets, the Town currently has an operating
deficit of $436,227, resulting in a negative contribution of ($436,227) per annum to its capital
program with a contribution requirement of $1,396,166 per annum. Therefore, with an annual
funding gape of #1.83 million, the Town of Thessalon does not have sufficient funds available to
fund capital projects and to eliminate its deficit within the 10-year plan period.
For the user fee funded water and wastewater assets, the Town currently is contributing $290,326
per annum to its capital program with a requirement to contribute $282,676 per annum.
Therefore, the Town of Thessalon has sufficient funds available to fund water and wastewater
capital projects and to eliminate its deficit within the 10-year plan period.
As highlighted in the SOTI Report within this document, the Town's most valuable assets by
replacement cost are the Facilities (25.9%), the Roads (24.7%), Water (21.8%) and Wastewater
(16.4%). The Facilities, Water and Wastewater assets are in Fair condition overall, while Roads
are in Good condition. All the other asset types are in Fair, Good or Excellent condition. Only
the Sidewalks and Playgrounds are in Poor condition overall, based on an age-based analysis,
and need attention. To improve the accuracy of the capital planning, it is recommended to
establish periodic condition assessments for the key assets.
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2 ONTARIO ASSET MANAGEMENT REGULATION
2.1 HISTORICAL OVERVIEW
Municipal infrastructure is the foundation that the daily life of Canadians is built upon. The strength
of this foundation enables our communities and local businesses to grow and it ensures that
Canadians have a high quality of life. Municipalities own the core infrastructure assets that are
critical to the quality of life of Canadians and the competitiveness of our country. Almost 60% of
Canada's core public infrastructure is owned and maintained by municipal governments.
According to survey results, the total value of core municipal infrastructure assets is estimated at
$1.1 trillion dollars or about $80,000 per household.
The Town of Thessalon is not alone in dealing with an infrastructure deficit. According to the
Canadian Infrastructure Report Card (CIRC), one-third of our Canadian municipal infrastructure
is in fair, poor or very poor condition, increasing the risk of service disruption. Assets in fair, poor
and very poor conditions represent a call for action. Survey results demonstrate that roads,
municipal buildings, sport and recreation facilities and public transit are the asset classes most in
need of attention. Figure 1 provides a summary of the physical condition ratings for all municipal
asset categories across the country.
Figure 1: Physical Condition Ratings by Asset Category
Source: 2019 Canada Infrastructure Report Card
Increasing reinvestment rates will stop the deterioration of municipal infrastructure. The 2019
CIRC report found that rates of reinvestment are lower than targets recommended by asset
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management practitioners. The rate can vary based on factors such as the age of the
infrastructure, the level of service and risk tolerance. The values provided are based on the
experience of municipal asset management practitioners and are intended to be informative in
nature. Roads and sidewalks, storm water, and sport and recreation infrastructure presented the
largest gaps in terms of current and target rates of reinvestment. Figure 2 demonstrate the gap
between current and target reinvestment levels. Continuing down this path will result in a gradual
decline of physical condition levels that will impact municipal services. When contrasted with
target reinvestment rates it becomes clear that current levels of reinvestment in municipal
infrastructure are inadequate.
Target Reinvestment Rates vs Current Reinvestment Rate
Infrastructure
Lower Target
Reinvestment Rate
Upper Target
Reinvestment Rate
Current
Reinvestment Rate
Potable Water (linear)
1.0%
1.5%
0.9%
Potable Water non-linear)
1.7%
2.5%
1.1%
Wastewater (linear)
1.0%
1.3%
0.7%
Wastewater (non-linear)
1.7%
2.5%
1.4%
Stormwater (linear)
1.0%
1.3%
0.3%
Stormwater (non-linear)
1.7%
2.0%
1.3%
Roads and Sidewalks
2.0%
3.0%
1.1%
Buildings
17.0%
2.5%
1.7%
Sport and Recreation
1.7%
2.5%
1.3%
Figure 2: Target Reinvestment Rates vs Current Reinvestment Rate
Under the Ontario MIII program in 2013, for the first time Ontario municipalities were required to
develop an Asset Management Plan in order to qualify for certain grants and to receive federal
Canada Community-Building Fund (formerly Gas Tax Fund) revenue. This first round of Asset
Management Planning focused primarily on the core assets, and to assemble inventory data,
identify the condition state, quantify the infrastructure deficit, and determine the required capital
expenditures based on expected service life.
2.2 REQUIREMENTS OF ONTARIO REGULATION 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario government introduced
Regulation 588/17 - Asset Management Planning for Municipal Infrastructure (O. Reg 588/17).
Along with creating better performing organizations, more liveable and sustainable communities,
the mandated regulation is a key driver of asset management planning and reporting. It places
substantial emphasis on current and proposed levels of service and the lifecycle costs incurred
in delivering them.
The Requirements of O.Reg.588/17 will progressively come into effect in three phases until July
1, 2025. This comprehensive Asset Management Plan addresses the requirements of all three
phases. The regulation requirements are summarized as follows:
1. General
The municipality shall prepare an asset management plan in respect of its core
municipal infrastructure assets by July 1, 2022 (Phase 1), and in respect of all of its
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other municipal infrastructure assets by July 1, 2024 (Phase 2). The municipality shall
prepare a revised asset management plan for July 1, 2025 (Phase 3, to include
proposed levels of service, financial strategy, and asset lifecycle management
strategy). Please note that the implementation deadlines of the 3 phases shown have
been adjusted to reflect that they each have been moved forward by one year due to
Covid 19.
The municipality must post its current strategic asset management policy by July 1,
2019 and asset management plan on a website that is available to the public, and
shall provide a copy of the policy and Plan Governance plan to any person who
requests it.
The municipality shall review and update its asset management plan at least five
years after the year in which the plan is completed and at least every five years
thereafter.
Every asset management plan prepared or updated, must be endorsed by the
executive lead of the municipality, and Plan Governance, and must be approved by a
resolution passed by the municipal council.
Every municipal council shall conduct an annual review of its asset management
progress on or before July 1 in each year, starting the year after the municipality's
asset management plan is completed.
The annual review must address the municipality's progress in implementing its asset
management plan, any factors impeding the municipality's ability to implement its
asset management plan; and Plan Governance, and a strategy to address the factors
impeding municipalities' ability to implement its asset management plan.
2. Level of Service
Current Level of Service is required for Phase 1 for core assets, Phase 2 for non-core
assets: For each asset category, the current levels of service being provided,
determined in accordance with qualitative descriptions and technical metrics, based
on data within the past two calendar years; With respect to core municipal
infrastructure assets, the qualitative descriptions and the technical metrics set out in
the Regulation; With respect to all other municipal infrastructure assets, the
qualitative descriptions and technical metrics established by the municipality. The
current performance of each asset category, determined in accordance with the
performance measures established by the municipality, based on data within the past
two calendar years.
Proposed Level of Service Is required for Phase 3: For each asset category, the levels
of service that the municipality proposes to provide for each of the 10 years following,
is included in the asset management plan, determined in accordance with the
following qualitative descriptions and technical metrics: With respect to core municipal
infrastructure assets, the qualitative descriptions and the technical metrics set out in
the Regulation; With respect to all other municipal infrastructure assets, the
qualitative descriptions and technical metrics established by the municipality.
A discussion of the proposed versus current Level of Service is required for Phase3:
An explanation of why the proposed levels of service are appropriate for the
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municipality, based on an assessment of the following: The options for the proposed
levels of service and the risks associated with those options to the long-term
sustainability of the municipality; How the proposed levels of service differ from the
current levels of service; Whether the proposed levels of service are achievable; The
municipality's ability to afford the proposed levels of service.
Required for Phase 3): The proposed performance of each asset category for each
year of the 10-year period, determined in accordance with the performance measures
established by the municipality, such as those that would measure energy usage and
operating efficiency.
3. State of local infrastructure
Required for Phase 1 for core assets, Phase 2 for non-core assets: For each asset
category: A summary of the assets in each category; The replacement costs of the
assets in the category; The average age of the assets in the category; The information
available on the condition of the assets in the category; A description of the
municipality's approach to assessing the condition of the assets in the Category.
4. Asset Lifecycle Management Strategy
Required for Phase 3: For each asset category, the lifecycle activities that would need
to be undertaken to maintain the current levels of service for the next 10 years and
the costs of providing those activities based on an assessment of the following: The
full lifecycle of the assets; The options for which lifecycle activities could potentially
be undertaken to maintain the current levels of service; The risks associated with the
options for lifecycle activities; The lifecycle activities defend that can be undertaken
for the lowest cost to maintain the current levels of service.
5. Financial Strategy
Required for Phase 3: For each of the 10 years following the year for which the current
levels of service are determined, the estimated capital expenditures and significant
operating costs related to the lifecycle activities required to maintain the current levels
of service in order to accommodate projected increases in demand caused by growth,
including estimated capital expenditures and significant operating costs related to
new construction or to upgrading of existing municipal infrastructure assets.
Required for Phase 3: An identification of the annual funding projected to be Financial
Strategy available to undertake lifecycle activities and an explanation of the options
examined by Cambridge Appendices to maximize the funding projected to be
available.
Required for Phase 3: If, based on the funding projected to be available, the
municipality identifies a funding shortfall for the lifecycle activities; An identification of
the lifecycle activities that the municipality will undertake, and if applicable, an
explanation of how the municipality will manage the risks associated with not
undertaking any of the lifecycle activities.
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3 SCOPE AND METHODOLOGY
The scope of this project is to undertake a detailed evaluation of all the Town's existing
infrastructure in order to update a long-term Asset Management Plan in accordance with Ontario
Reg 588/17, give the municipality continued eligibility to receive the Federal Canada Community-
Building Fund (formerly Gas Tax Fund) and other grants, and build a fully implementable program
for its residents which aims to further strengthen municipal asset management practices.
Asset management planning requires that the most cost effective and realistic decisions are
made regarding the building, operating, maintaining, renewing, replacing and disposing of
infrastructure assets. The prime goal of the Asset Management Plan is to maximize benefits,
manage risk, and offer satisfactory, safe and sustainable service levels to the public. Asset
management planning requires that the Town of Thessalon has an in-depth understanding of the
characteristics and condition of infrastructure assets, as well as the service levels they are
expected to meet. Asset management planning also involves strategic prioritization and
optimization to obtain the best decision-making concerning the timing and utilization of
investments, which includes a comprehensive and achievable financial strategy.
ISI and the Town are using the DOTTM (Decision Optimization Technology) software), a leading-
edge asset management and investment planning software to assist in establishing that the most
cost-effective and realistic decisions are made regarding the replacement, maintenance,
rehabilitation, and reconstruction of the Town's assets. DOT™ will give you a plan that is flexible,
easy to update, credible, defensible, and implementable.
Using any software to build an Asset Management or Capital Plan is complex. Effective planning
requires a balancing act which contemplates fluctuating annual budgets, shifting strategic
priorities, service levels objectives and public expectations, risk and safety considerations, cross-
departmental co-operation, and due consideration to political objectives. DOT™ helps with the
analytical process, best utilizing your current budget to best meet your financial and
socioeconomic objectives. It determines what your budget needs to be to manage your
infrastructure deficit and reach your levels of service objectives. It provides concrete
recommendations and an actionable plan to put your community on a solid path forward. It
generates a plan that well exceeds ISI 55000 standards and meets all Provincial and Federal
regulations.
DOT™ is unique in the industry. Firstly, for the plan to be right, the civil engineering must be right.
We have spent years in R&D working out degradation curves, lifecycle expectations, and factors
like the impact of preventive maintenance. Secondly, prioritization and cost-benefit analysis
methodologies do not have the analytical capability to manage a SAMP or Capital plan's
complexity. Instead, DOT™ utilizes state-of-the-art, multiyear, multi-constraint optimization
algorithms to create a range of scenarios to attain the best plan forward. Our flexible and
comprehensive analytical processes give you the opportunity to attain your unique objectives for
levels of service, socio-economic factors, and safety considerations. Finally, the plan you
generate is only as good as your ability to gain support from your Council and community. DOT™
uses highly visual reports, presentation, and report ready, to simplify your communication task.
With DOT™ our objective is simple. We believe that the best plans are generated by local
administrators and their public works department (and external engineering companies when
necessary), and interfacing with the community and Council to establish their political and level
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of service objectives. We will continue to expand the functionality of DOT™ as a world class
Municipal planning tool, built for Canadian governments by a Canadian company.
4 STATE OF THE INFRASTRUCTURE
4.1 ASSET INVENTORY
The Asset Repositories for all asset types have been assembled, using as much information as the
Municipality had available. The following procedure was used to assemble the Asset Inventories for
this plan:
a) All asset types, location and quantities;
b) Segmenting of linear assets into manageable sections;
c) Unique Asset ID's for each asset type;
d) Geometrics of the asset (dimensions and physical properties)
e) Current year financial accounting valuation using historical costs and depreciation
assumptions and replacement cost calculation accounting for expected inflation, changes in
technology and other factors;
f) Asset age distribution and asset age as proportion of expected useful life;
g) Identified needs for all asset types
i.
identify deficiencies
ii.
identify treatments and life cycle interventions currently used to address
deficiencies, including maintenance
iii.
determine cost of treatments and interventions
iv.
develop list of all asset needs with a multi-year listing (10-year) projects
assuming unlimited funding; and a year-by-year (10-year) listing of total costs
and capital requirements.
This section will also be supported by:
a) An inventory database of infrastructure covered by the plan, which includes basic asset
information.
b) Records of all assumptions.
c) A data verification policy and a condition assessment policy, consistent with provincial
requirements, setting out when and how asset information will be verified and when and
how assets will be assessed to determine their condition.
4.2 REPLACEMENT COST
Replacement Costs are calculated for each asset. The following hierarchy is used in calculating
Replacement Costs, depending on data availability:
1. Replacement Costs provided by client, inflated to 2020
2. Reconstruction unit costs where available, inflated to 2020
3. Initial Cost, inflated to 2020
The Municipality's Replacements costs by Asset Category is shown here:
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Asset Category
Replacement Cost
Percentage
Transportation
$23,527,777
24.7%
Bridges
$3,920,262
4.1%
Water
$20,719,799
21.8%
Wastewater
$15,591,160
16.4%
Stormwater
$3,933,588
4.1%
Facilities
$24,694,509
25.9%
Vehicles
$1,290,300
1.4%
Parks
$324,800
0.3%
Equipment
$1,251,608
1.3%
TOTAL
$95,253,804
100.0%
Figure 3: Asset Replacement Cost by Category
4.3 CONDITION ASSESSMENT APPROACH
Wherever condition assessments are available, they were utilized to determine asset conditions.
When no condition data were available, an age-based condition rating of %RSL (% Remaining
Service Life) was calculated based on predicted service life for a given asset. The condition
assessment approach used is stated for each Asset Type in Section 5.
25.9%
24.7%
21.8%
16.4%
4.1%
4.1%
1.4%
1.3%
0.3%
Buildings
Transportation
Water
Wastewater
Stormwater
Bridges
Vehicles
Equipment
Parks
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4.4 LEVELS OF SERVICE
The plan will define potential Levels of Service (LOS) for community consideration through
performance measures, targets, and timeframes to achieve them. This section provides an
overview of the Level of Service methodology used and is supported by specifications for each
asset type in Section 5, of which performance measures are associated with a given asset type,
current performance and expected performance over the planning period, as well as any
assumptions. We made recommendations, but significant input was provided by the Town to
define their desired levels of service, and these targets will be refined further with time.
4.4.1
OVERVIEW
Levels of Service (LOS) are statements of service performance delivery. LOS is established
based on Council direction, the needs or wants of the community as well as legislative and
regulatory requirements. This report includes Operating Performance Indicators (OPI's) for
current levels of service. Through the ongoing Asset Management process, LOS will be further
defined for the Municipality, the Municipality's assets, and the community. They all are
interconnected.
There is likely further effort required by the Municipality to address and formally define levels of
service from a customer perspective. Asset management, at its root, is really about balancing
the full life cycle costs of various services and the levels of service being provided. It is about
knowing what levels of service customers expect and what they are willing to pay. The level of
service is a reflection of the quality, function, and capacity of the services being provided. As a
Municipality, you might consider:
-
The level of service you are currently providing to users
-
The annual cost to continue to provide the current level of service
-
How the level of service is expected to change in the future given current funding levels
-
If you are meeting the level of service expectations of your users given the costs to provide
current and desired levels of service
As a rough generalization, the higher the level of service provided, the higher the life cycle costs
of providing that service. Levels of service drive the expected treatments in the management of
infrastructure. Customer levels of service outline the overall quality, function, capacity, and safety
of the service being provided. Technical levels of service outline the operating, maintenance,
rehabilitation, renewal and upgrade activities expected to occur within the Municipality. When
practicing asset management, it is important to first document the current level of service being
provided. As asset management becomes more established within your Municipality, levels of
service may be set through consultation with the community. However, it is critical that prior to
consulting with the public, the current levels of service along with associated life cycle costs are
understood.
It is also important to discuss how various levels of service may have different risks associated
with them. These risks may play an important role in determining if certain levels of service are
acceptable. As with all economic analysis, a sensitivity analysis should be carried out on those
parameters which are more likely to be beyond the control of the organization, such as market
forces affecting the opportunity cost of capital, community expectations/perception on risk and
factors in the long-term, health and safety effects, community economic effects, environmental
and social effects, feasibility including public support and the Municipality's readiness.
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4.4.2
LEVEL OF SERVICE APPROACH
The implementation of a formal Maintenance Management System (MMS), among many other
items, measures the response time, lag time, total time to resolution, resources involved, and
communication logs for all issues identified internally and by customers. Going forward, this type
of information not only provides the basis for resource and program management decisions but
is key information that will provide council and the public with the service level information in
relation to the cost of service. Historically a significant portion of activities has been provided at
a 'best we can do with what we have' basis. Through a review of design guidelines, and metrics
being captured by the MMS, the Town of Thessalon can re-orientate service delivery that is driven
by service level expectations that incorporate Level of Service factors. To assist in better
establishing Levels of Service, the Town should also consider collecting technical performance
measures needed to provide information on:
-
the types of failure
-
the number of customers affected
-
the duration of the failure
-
the severity of the failure
This kind of technical performance measurement and monitoring is undertaken to support
decision-making by the asset managers within an organization. It addresses issues for
consideration in the effective management of the assets, such as:
-
Assessing the effectiveness of the operational, maintenance and capital works program
-
Review and refinement of maintenance and rehabilitation strategies and standards
-
Assistance in strategic decision-making through the definition of remaining life, based on
the measure being assessed, e.g. capacity of a pipe versus demand.
Benchmarking and other comparison management techniques are used both internally and for
external regulation and monitoring, to assess the performance of infrastructure groups and asset
owners. Each Municipality needs to consider developing rating systems to judge the assets from
both a Municipality's perspective with the values that it brings to the organization, and also from
a user's or regulator's perspective, in terms of the functionality, suitability, cost and service
performance of the asset.
4.4.3
LEVELS OF SERVICE PROCESS
Some Levels of Service (LOS) for the Municipality can be attained through documents developed
in the industry and by internally focusing on technical requirements that meet generally expected
levels of operation and safety:
-
Provincial Minimum Maintenance Standards (MMS) for roads, street lighting, water and
drainage
-
Drinking Water Quality Management System (DWQMS)
-
Engineering Standards Manuals
Operating Performance Indicators - These are the main activities within each operating budget
cost center. These activities (OPI's) link directly to the level of service provided by the Municipality.
The OPI's also include maintenance tasks that help extend asset life. A good balance between
asset replacement through capital funding and ongoing maintenance provides the best cost
efficiency and service productivity.
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4.4.4
OPERATING PERFORMANCE INDICATOR EXAMPLE
ROADS
Service
Operating
Performance
Indicators (OPI)
Current
Performance
Target
Performance
Timeframe
Examples for Roads below:
Road Maintenance &
Repairs
Complete approximately X
work orders per year for
service
requests
including
pothole repair, minor asphalt
patching,
sightline
improvement, MVA clean-up.
1500
500
3 Years
Brushing
and
Roadside Mowing
Complete approximately X
km's of brushing on roadsides
annually.
N/A
50 km
2 Years
Complete roadside mowing X
times annually
2
3
3 years
Boulevard
Maintenance
Twice per year cut every
boulevard in the RM.
2
3
3 Years
Annual weeding, cleaning,
and caulking of X km of
sidewalk and curb.
7
7
Maintain
sight
lines
at
intersections for vehicle and
pedestrian safety.
14 Days
14 Days
Timeline
Achieved
Roads Recapped ____km's -
Annual Average
8
30
2 Years
Gravel
Roads
Surface
Treated ___km's - Annual
Average
3.5
20
2 Years
Curbing/Shoulders
Annual repair, by August, of
all
curbing
damage
in
previous winter.
September
July
1 Year
Sidewalks & Walkways
Completed
Inspections
______times per year
1
1
Timeline
Achieved
Sidewalks / Walkways swept
_____ times per year
1
1
Timeline
Achieved
Vandalism
Within X hours of notification,
remove graffiti.
48
24
1 Year
Street Lighting
Service requests for street
light repair completed within X
hours.
5 days
48 hours
1 Year
Signs
Annual
inspection
and
maintenance of all X stop
signs.
1225
1225
Timeline
Achieved
Annual
inspection
of
crosswalk, pedestrian, school September
July
1 Year
15 | P A G E
and playground signs and
beacons.
Annual Upgrade of X signs to
diamond grade
12
25
1 Year
Snow and Ice Control
Major
roads
including
emergency
routes
during
winter events.
16 Hours
16 Hours
Timeline
Achieved
Residential areas - through
roads first then cul-de-sacs
and dead ends.
16 Hours
16 Hours
Timeline
Achieved
Residential
areas
will
be
plowed and maintained within
96 hours unless snow and icy
conditions return crews back
to major roads.
16 Hours
16 Hours
Timeline
Achieved
VEHICLES - FLEET
Service
Operating
Performance
Indicators (OPI)
Current
Performance
Target
Performance
Timeframe
Fleet Maintenance
Undertake
preventative
maintenance and repairs to
meet industry standards for
safety and operation.
Daily
Daily
Timeline
Achieved
Maintain fleet availability at
X%.
80
100
3 Years
Small Equipment
Inventory, maintain and repair
X pieces of small equipment
for use by all departments.
40
40
Timeline
Achieved
Preventative
Maintenance Services
X units inspected every X
months to maintain safety and
fleet efficiency.
32
Units
every
250
Hours
32
Units
every
250
Hours
Timeline
Achieved
WATER / WASTEWATER
Service
Operating Performance
Indicators (OPI)
Current
Performance
Target
Performance
Timeframe
Examples for Water/ Wastewater below:
Valves & Air Valves
Exercise all line valves
once per year with yearly
reporting
1
1
present
Main Breaks
Upon notification
emergency response and
water shut down within 45
minutes.
45
45
present
Repair completed and
service re-instated within 2
hours.
2
2
present
16 | P A G E
Currently experiencing 10
breaks per year on average
10
>8
present
Service Connection
Renewals
30 renewals completed
each year on average.
30
20
Service connections
associated with Road
Rehab Program and capital
projects are checked and
replaced as necessary.
at that time
at that time
present
Water Towers -
Reservoirs
Weekly inspections
no
every 6 months
2014
1 year cycle - drain, inspect,
clean and repair
every year
every 2 years
present
Pump Stations
Annual painting
no
yes
2014
Annual vegetation control
yes
yes
present
20 year cycle - rebuild
control valves.
as necessary
10 years
2014
20 year cycle - rebuild or
replace pumps.
as necessary
15 years
2025
Weekly trouble shooting
and repairs
yes
yes
present
5 weekly visual inspections
5
5
present
Stations
Maintain all pressure
reducing stations to operate
without failure.
as necessary
every 5 years
2013
30 year cycle - complete
replacement of each station
as necessary
as necessary
present
10 year cycle - complete
rebuild of system.
as necessary
every 10 years
2015/2020
Annual painting and
vegetation control.
n/a
n/a
n/a
Testing
100% of water samples
contain no bacteriological
contaminants.
100%
100%
present
Monthly reporting
yes
yes
present
WPC Chlorination
Disinfects 100% of City
supply
100%
100%
present
Daily data acquisition and
inspection
yes
yes
present
Daily water testing
yes
yes
present
Monthly chlorine cylinder
replacement.
as necessary
as necessary
present
Semi-annual chlorination
equipment replacement and
repairs
n/a
n/a
n/a
Annual painting and
vegetation removal
yes
yes
present
10 year cycle - replacement
of small piping and control
valves.
as necessary
every 10 years
2014
Reservoir Chlorination
Disinfects 100% of City
supply
100%
100%
present
Water Main Flushing
Twice Annually flush all
supply lines.
Twice annual
Twice annual
present
17 | P A G E
Service Call-outs
Provide 24/7 on call
coverage for emergency
response.
yes
yes
present
STORM / DRAINAGE
Service
Operating Performance Indicators
(OPI)
Current
Performance
Target
Performance
Timeframe
Examples for Drainage below:
Flushing
Annual flushing of 100 m of the 236
m storm system
50
100
2014
Video
Inspections
Annual video inspection of 10m of
the storm system.
5
10
2014
Manholes /
Cleanouts
Install and repair manholes and
cleanouts.
yearly
yearly
present
Catch Basins
Annual inspection and cleaning of all
793 catch basins
150
250
2014
Detention
Systems
Annual inspection of all X detention
systems.
N/A
Inlet / Outlet
Structures
As needed Inspect and clean all
critical inlet and outlet structures and
service before, during and post-
storm events.
yes
yes
present
Annual inspection and maintenance
of inlet and outlet structures.
yes
yes
present
Ditch
Cleaning
Annual inspection of all ditches and
clean as needed.
yes
yes
present
Culverts
Repair driveway and road crossing
culverts as assigned through work
orders.
yes
yes
present
Service Call-
outs
Provide 24/7 on call coverage for
sewer and drainage emergency
response.
yes
yes
present
4.4.5
CURRENT LEVEL OF SERVICE
The Level of Service for each asset is defined either by its condition rating, or by an age-based
rating, e.g. Percent of Remaining Service Life (%RSL). Generally, condition ratings are preferred
to age-based ratings, and are used wherever they are available. Different condition rating Indices
are used for different assets, for example PCI, PQI or PASER, etc. for roads, NCAP for pipes,
BCI for bridges, etc. Municipalities are encouraged to have conditions assessed for as many
assets as possible.
The overall Level of Service Rating is weighed in the most appropriate way, depending on the
asset. For example, linear assets like roads and utility pipes are usually weighed be length, assets
of similar cost like hydrants, park benches, etc. are weighed by Quantity or Count, and Equipment
or Fleet assets with large cost variations would typically weighed by Replacement Costs.
18 | P A G E
Thessalon's Condition Report Card is shown here:
Figure 4: State of the Infrastructure Report Card
4.4.6
LIFE CYCLE CONSIDERATION
The Life Cycle of an asset is the time span from when an asset is first put into service to when it
is replaced or discarded. Various intervention options are available during the life on an asset.
These are divided into Early-Life interventions, (preventive maintenance), Mid-Life interventions
(minor rehabilitation) and End-of-Life interventions (major rehabilitation, reconstruction,
replacement). In addition, there are operation or routine maintenance interventions. For each
asset type the suitable life cycle interventions available to the municipality are identified with the
corresponding costs. The DOTTM software, during its optimization analysis, will determine the
best possible intervention strategy, applying the right treatment at the right time, to maximize the
life cycle of each asset at minimum cost and ensuring the maximizing the asset performance
Network
Size
No. of
Assets
Sidewalks
Sewerlines
Asset Type
Network
Condition
Condition
State
Condition Distribution
Signs (Not Traffic)
Buildings
Bridges
3 Km
6 Km
Paved Area
Playgrounds
Ball Fields-Diamonds
Equipment
Vehicles
Treatment Plants (Water)
Hydrants
Stormlines
Pumping Station (Sewer)
Lagoons
Waterlines
Curbs & Gutters
Roads
Street Lights
22
68
Excellent
22 Km
89
66
Good
$251,802
295
74
Excellent
6 Km
41
19
Poor
17 Km
67
48
Fair
$225,500
4
47
Fair
$1,211,900
2
33
Fair
20 Km
72
44
Fair
$7,291,865
12
81
Good
99 ea.
99
44
Good
39
Fair
52
56
Good
30 ea.
4
98
Excellent
$86,400
1
63
Excellent
$135,000
3
5
Poor
15
$1,290,300
$12,389,655
19
40
Fair
$3,674,458
80
70.5
Good
3 ea.
3
24
Fair
$1,182,108
38
47
Good
19 | P A G E
throughout the asset's lifecycle, while satisfying the Level of Service, risk tolerance and budget
constraints at the same time.
4.4.7
RISK METHODOLGY
The Concept of Risk
In an ideal case, Risk can be determined using the formula below based on the Probability of
Failure and the Consequence of Failure in monetary terms. Formulations can be more complex
using concepts such as risk mitigation and vulnerability.
Risk = Pf × Cf
Pf = probability of failure
Cf = consequence of failure in monetary terms
Quantification of Pf and Cf, however, is not an easy task and requires major research and
development in addition to data collection by experts at municipalities. In practice, a variation of
the above formula is used to determine a Risk Index based on the combination of Criticality
(instead of the monetized consequence of failure) and Likelihood of Failure (instead of detailed
probability functions and values). Criticality is typically determined based on the properties of
various assets. Physical attributes or Community Impact factors can contribute to the criticality
level. As an example, a large size sewer pipe with potential environmental impact has a higher
criticality as compared to a small residential pipe. Likelihood of failure is determined based on the
condition assessment protocol and determination models. In the software, you can create various
functional relationships between condition index and LoF as part of your CI settings.
Figure 5: Concept of Risk
Risk Matrix Settings
Likelihood of Failure is calculated from the Level of Service for each asset. A typical relation of
Asset Condition and Likelihood of Failure for a specific asset type is shown in Figure 6:
20 | P A G E
Figure 6: Likelihood of Failure Setting
Consequence of Failure is calculated from the Criticality value calculated for each asset. A
typical relation of Criticality and Consequence of Failure is shown in Figure 7:
Figure 7: Consequence of Failure Setting
The combination of Criticality and Likelihood of Failure represents different risk levels. This
combination is usually presented using a Risk Exposure Matrix and shown below.
Figure 8: Risk Exposure Matrix
The DOTTM software utilizes your Criticality and Likelihood of Failure settings to automatically
calculate and produce Risk Matrix results to identify assets at different risk levels. Each point on
the Risk Matrix below represents one asset such as a road segment or sewer pipe.
21 | P A G E
Figure 9: Risk Exposure Matrix of Assets
Risk matrix and risk level ranges can be set on the settings page of the software.
Figure 10: Risk Settings in DOTTM
Risk Tolerance
As part of LoS settings, Risk Tolerance can be set to determine allowable risk thresholds for
various Performance Classes and asset types. The following example shows a risked-based
optimization scenario with the objective of maintaining the network risk level at low and moderate
levels. In other words, the optimization process allocates available funding to eliminate all events
exhibiting high and extreme risk levels over the planning horizon.
22 | P A G E
Figure 11: Risk-based Analysis Before/After Results in DOTTM
4.5 CLIMATE CHANGE AND ADAPTION MEASURES
Municipalities are encouraged to address climate change, both by adopting measures to mitigate
the effects and risks of climate change to the municipality, and by looking for ways to reduce the
carbon footprint. Municipalities have the ability to force change through by-laws and zoning. The
Town of Thessalon is a designated Green Community and committed to addressing climate
change.
Carbon Footprint
Municipalities can have a positive impact on reducing the carbon footprint. These include
improving the energy efficiency of municipal facilities, buildings and fleet. Municipalities can also
work with utility providers to facilitate the installation of public and private electric vehicle charging
stations, wind generators, etc. through by-laws, zoning or even by just making public land
available for installations. For new construction, the use of sustainable energy can be mandated,
for example through photovoltaic installation on roofs, as well as requiring provisions for EV
charging, for example.
The municipality should engage in the development of a Climate Change Action Plan (CCAP).
The objectives of the Plan are to:
1. Understand and address climate change at the municipal level (infrastructure, operations,
service delivery) using Infrastructure Canada's two Climate Lens assessment frameworks for
greenhouse gas (GHG) mitigation and climate resilience.
2. Provide a municipality-wide baseline and forecast of greenhouse gas (GHG) emissions using
the Broader Public Sector: Energy Reporting and Conservation and Demand Management Plan
required under Ontario Regulation 507/18.
3. Complete a climate change risk assessment for critical municipal infrastructure that is in
accordance with Ontario Regulation 588/17 Asset Management Planning for Municipal
Infrastructure.
4. Establish specific targets for reducing GHG emissions using a scenario planning approach.
These benchmarks should align with the federal GHG reduction target of 40-45 percent below
2005 levels by 2030 under the Canadian Net-Zero Emissions Accountability Act and outlined in
Canada's Climate Actions for a Healthy Environment and a Healthy Economy.
23 | P A G E
5. Compliance (see PCP compliant plans) with FCM's Partners for Climate Protection (PCP)
program's Milestones One, Two, and Three requirements.
6. Compliance with ICLEI Building Adaptive & Resilient Communities (BARC) Milestones One,
Two, and Three requirements.
Mitigation:
Climate change, also referred to as global warming, results in more extreme and more frequent
severe weather events. This includes strong winds, tornados and hurricanes, heat waves and
intense rain or snow falls. The municipality should assess its infrastructure to minimize the risk
of damage/loss to life and property, and to be prepared to deal with these extreme weather events.
Examples of climate change mitigation include upgrading infrastructure to minimize flooding, for
example improving storm water run-off into waterways, doing a flood plain analysis and minimize
development in low lying areas with higher flood risk, LID's (Low Impact Developments) like rain
gardens, bioswales, infiltration trenches, permeable pavement or rainwater harvesting, and
minimizing storm water from entering the wastewater system to prevent the release of untreated
wastewater into the environment.
Measures to mitigate draught include minimizing the run-off of rainwater into the storm system,
for example by disconnecting roof drains from the storm system and discharging downpipes into
permeable landscape, permeable pavement driveways, minimizing water consumption through
metering and rate structures, and to ensure sufficient water supply. Another aspect is to deal with
the increased likelihood of fires, in particular wildfires, by strictly enforcing seasonal fire bans and
other activities that could start a fire, providing sufficient water reservoirs for firefighting.
Mitigation measures also include an effective early warning system and having clearly defined
emergency procedures and periodic training in place.
5 COMPREHENSIVE ANALYSIS BY ASSET TYPE
Our DOT (Decision Optimization Technology)™ capital planning tool provides a robust decision-
making process, identifies the best possible course of action, and considers both the short-term
needs and the long-term goals of a municipality. It includes an advanced decision-making
process called optimization or prescriptive modeling, which is the most powerful and effective way
of finding the best possible solution to a decision-making problem. A capital planning tool with
optimization capability can maximize the overall performance of a network in terms of physical
condition (or any other criteria) over a multi-year analysis horizon and provides municipalities with
the best possible course of action in terms of timing and selection of different maintenance,
rehabilitation, or reconstruction treatments considering all municipal goals and constraints. The
improvements achieved through an optimized solution, which inevitably highlights the critical
importance of preventive maintenance, can be translated into substantial savings and increased
socio-economic benefit (Figure 5).
24 | P A G E
Figure 12: Optimized vs. Conventional Capital Planning
Combining advanced optimization capabilities with robust engineering models and socio-
economic consideration provides municipalities with a fully implementable and defensible capital
plan. The analytical models used in the system are flexible, able to adjust to regional variances
and reflect the behavior of assets verified through a rigorous analysis.
5.1 ROAD NETWORK
The Town of Thessalon has a total of 21.8 km of roads in with Hot Mix Asphalt, Surface Treated,
Gravel surfaces.
5.1.1
ROAD GEOMETRICS AND ATTRIBUTES
The following summarizes the road surface types within the Municipality, weighed by length:
Surface Type
Length (km)
Percentage
Hot Mix Asphalt
15.0
68.8%
Surface Treated
6.6
30.3%
Gravel
0.2
0.9%
25 | P A G E
Figure 13: Roads by Surface Types
5.1.2
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for roads is determined through a condition based analysis. The
five (5) Condition States are defined as follows:
Figure 14: Road Condition State Ranges
The most recent Roads condition assessment was done by the Municipality's Public Works
department in 2020. This condition assessment was a windshield inspection, assessing the road
surface visually and taking into account the ride comfort to assign condition ratings. The
Municipality's condition ratings were then converted to a PCI scale from 0 to 100. Since the
assessment is current, the DOTTM feature to calculate estimated current condition ratings by
applying all road maintenance projects since the most recent assessment, and built-in
degradation curves, are not utilized. The 2020 Overall Network Condition (PCI) of the roads is
66. This represents an overall "Good" condition state.
26 | P A G E
The following summarizes the Network Pavement Condition States, weighted by section length:
Figure 15: Road Network Condition States
The Condition States by Surface Type are shown in Figure 16:
Figure 16: Road Network Condition by Surface Type
Title
Condition
Condition State
Network Overall Condition
66
Good
27 | P A G E
The Map view of the condition state is shown in Figure 17.
Figure 17: Road Network Condition Map
5.1.3
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on Surface Type
and Traffic ( AADT). Socio-economic factors were not included at this time.
Criticality Settings
Surface Type
4
Gravel
10
Hot Mix Asphalt
100
Surface Treated
60
AADT
10
1 - 50
0
50 - 200
20
200 - 400
40
> 400
100
28 | P A G E
Figure 18 shows the Criticality states of the various road sections:
Figure 18: Road Network Criticality Map
Risk
The Risk settings for Roads are done as described in section 4. Figure 19 shows the Risk levels
of the road system:
Figure 19: Road Network Risk Map
Due to the nature of the Roads assets, there are no risk targets set in the planning.
29 | P A G E
5.1.4
LEVEL OF SERVICE REQUIREMENTS
The Town targets to maintain the Network condition for roads at the current Network PCI of 66,
which is just within the "Good" condition state, during the entire 10-year plan period. In addition,
the Municipality does not want to have more than 15% of their roads in poor condition, i.e. below
a condition rating of 50. The Level of Service Settings are as follow:
LOS Constraints
Acceptable Performance
Name
Perf. Class
Perf. Attribute
Constraint
Violation
Penalty
Minimum Performance
Network
PCI
>= 66 by 2021
Soft
Normal
Max Percentage at Performance Threshold
Name
Perf. Class
Perf. Attribute
Constraint
Violation
Penalty
Max PCI < 50
Network
PCI
15.0% <= 50 by
2030
Hard
NA
5.1.5
LIFECYCLE MANAGEMENT STRATEGY
A number of treatment options are available for all surface types, including Routine Maintenance,
Preventive Maintenance, Minor and Major Rehabilitation and Reconstruction treatments. The
treatment costs are based on contractor costs for the region and cost data provided by the
municipality. The treatment options and their unit costs are summarized here:
Treatment Methods
Treatment
Description
Unit Cost
ST-Slurry
Slurry Seal
3.50 $/m²
ST-SST
Single Surface Treatment (Chip Seal)
4.00 $/m²
ST-DST
Double Surface Treatment (Chip Seal)
6.50 $/m²
ST-DST SAMI
Double Surface Treatment (Chip Seal) & SAMI
8.50 $/m²
ST-FDR & DST
Full Depth Reclamation (FDR) + Double Surface Treatment
10.00 $/m²
ST-FDR & DST & SAMI
Full Depth Reclamation (FDR) + Double Surface Treatment + SAMI
12.00 $/m²
ST-FDR & Ovly
Full Depth Reclamation (FDR) + One lift Overlay
27.50 $/m²
ST-FDR & 2Ovly
Full Depth Reclamation (FDR) + Two Lift Overlay
51.50 $/m²
ST-Recon & Ovly
Full Depth Reconstruction (350 Gran B, 150 Gran A, 90 HMA)
198.20 $/m²
ST-Recon &2 Ovly
Full Depth Reconstruction (350 Gran B, 150 Gran A, 140 HMA)
222.20 $/m²
HMA-Crack Seal
Crack Sealing
0.25 $/m²
HMA-Slurry
Slurry Seal
3.50 $/m²
HMA-ST
Single Surface Treatment (Chip Seal)
4.00 $/m²
HMA-DST
Double Surface Treatment (Chip Seal)
6.50 $/m²
HMA-DST SAMI
Double Surface Treatment with SAMI
8.50 $/m²
HMA-EnhSurf
Enhanced Thin Surfacings (Microsurfacing, Thin HMA Overlay)
4.00 $/m²
HMA-Enh2Surf
Enhanced Double Thin Surfacings (Cape Seal, Double Microsurfacing)
6.50 $/m²
30 | P A G E
HMA-Ovly
One Lift Overlay / Mill and One Lift Overlay
24.00 $/m²
HMA-2Ovly
Two Lift Overlay / Mill and Two Lift Overlay
48.00 $/m²
HMA-FDR & 2Ovly
Full Depth Reclamation (FDR) + Two Lift Overlay
51.50 $/m²
HMA-FDARR & 2Ovly
Full depth asphalt removal and replacement (Two Lifts HMA)
53.00 $/m²
HMA-FDARR & 3Ovly
Full depth asphalt removal and replacement (Three Lifts HMA)
77.00 $/m²
HMA-Recon 90HMA
Full Depth Reconstruction (350 Gran B, 150 Gran A, 90 HMA)
198.20 $/m²
HMA-Recon 140HMA
Full Depth Reconstruction (350 Gran B, 150 Gran A, 140 HMA)
222.20 $/m²
Re-Gravelling (50 mm or 2 in)
Re-Gravelling (50 mm or 2 in)
6400.00 $/Km
Re-Gravelling (100 mm or 4
in)
Re-Gravelling (100 mm or 4 in)
8200.00 $/Km
Rehabilitation
Rehabilitation
10000.00 $/Km
Grading
Grading
120.00 $/Km
Drainage Maintenance
Drainage Maintenance
1200.00 $/Km
Dust Control
Dust Control
1000.00 $/Km
Upgrade to ST
Upgrade to ST
31500.00 $/Km
Re-Gravelling HT (100 mm or
4 in)
Re-Gravelling in High Traffic (100 mm or 4 in)
8200.00 $/Km
Rehabilitation HT
Rehabilitation in High Traffic
10000.00 $/Km
Grading-2Times
Grading-2Times
240.00 $/Km
Grading-3Times
Grading-3Times
360.00 $/Km
Grading-4Times
Grading-4Times
480.00 $/Km
Utilization of Preventive Maintenance Treatments
In 2018 Infrastructure Solutions Inc. conducted the most comprehensive Canadian survey of
municipal road maintenance practices ever undertaken. The 171 survey participants represented
45,000 km of paved road, 15% of Canada's population, and a wide range of municipalities by
region and population. The survey was designed to identify the extent to which municipalities
apply preventive maintenance treatments, to attain practical observations about treatment options
and lifecycle gains and clarify user perceptions about what constitutes best road maintenance
practices. The results are truly disturbing.
Figure 20: Current Application of Preventive Maintenance Across Canadian Municipalities
31 | P A G E
The survey established that 98% of respondents perceive preventive maintenance as an
important and cost-effective approach to extend the service life of their pavements and to save
the municipality significant capital investment in the long run. The survey further establishes that
a majority of the municipalities do not apply preventive maintenance treatments (Figure 3) and
have a widely-varied understanding of when these treatments should be applied.
Respondents were asked what percentage of their municipality they believe is currently being
maintained according to best practices. Figure 4 shows the survey's cumulative response on the
application of chip seal, micro-surfacing, and slurry seal to paved roads. For every major surface
treatment type, less than 20% of municipal road networks are maintained in accordance with what
respondents believe to be best practice.
Figure 21: Application of Preventive Treatments According to Best Practices
This contradiction between the clearly appreciated benefits of preventive maintenance and the
inadequate application of preventive treatments in practice has deep roots. Municipalities may be
overly reactive to community requests. Councils surely follow the advice of Roads Needs Studies,
where engineering companies recommend repairing worst roads first for safety and other
reasons, assuming an unlimited municipal budget. Deteriorated water or wastewater lines might
necessitate road reconstruction for line replacement and take precedence over maintenance.
Smaller municipalities often use Excel or simplistic pavement management programs which
typically recommend projects based on a simple ranking process. Finally, many municipalities
still operate on an ad hoc basis, arbitrarily selecting roads which need rehabilitation or
reconstruction work without undertaking any analytical process whatsoever. Whatever the
circumstance, tax dollars are being poured into potholes unnecessarily.
5.1.6
BUDGET CONSTRAINTS
A Target Scenario was run to establish required funding levels to maintain a PCI of 66 to the
end of the 10-year plan. An annual Capital budget of $110k and a Routine Maintenance Budget
of $10,000 is required to achieve this goal.
32 | P A G E
Budget Constraints
Total Capital Budget
Name
Subset
Settings
From
To
AGF
Network Capital Budget
NA
<= $110,000
2021
2030
0.0%
Total Routine Maintenance Budget
Name
Subset
Settings
From
To
AGF
Maintenance Budget
NA
<= $10,000
2021
2030
0.0%
The $110k capital budget is fully utilized each year. The Capital Expenditures are shown here:
Figure 22: Roads Capital Expenditures
The recommended routine maintenance Budget is shown here.
Figure 23: Roads Routine Maintenance Expenditures
33 | P A G E
5.1.7
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Road network to produce a workable capital
plan considering municipal constraints and objectives, while maximizing network overall
performance to achieve the highest possible investment efficiency.
The Optimization Analysis Settings are as follows:
Scenario
Name:
AMP Budget 110k/year
Description:
Budget 110k/yr, Maintenance $10k/yr
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current Condition
True
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 24 shows the network overall network performance throughout the plan period:
Figure 24: Roads Overall Network Performance
Over the next 10 years, the performance of the Road network is maintained at the current
condition of 66.
34 | P A G E
Figure 25 shows the condition state distribution for each year of the plan:
Figure 25: Roads Annual Network Condition Status
As shown in this figure, at the beginning of the plan 6% is in very poor, 10% in poor, 29% in fair,
37% in good, and 18% in excellent condition. At the end of the 10-year plan 13% of sections will
be in very poor, 18% in fair 57% in good, and 13% in excellent condition, a significant
improvement.
5.1.8
RECOMMENDED PROJECTS
An overview of the annual capital projects is shown in Figure 26. The road treatment costs are
based on contractor costs for the region and cost data provided by the Municipality. The detailed
capital Investment plan specifying which road section is scheduled for which suggested
treatment, in which year, and at what budgeted cost is presented in Appendix A, the Capital
Investment Plan the Municipality.
Figure 26: Roads Capital Project Overview
35 | P A G E
5.1.9
GRAVEL ROADS
DOT™ Transportation software being provided to the Municipality includes an GRMS (Gravel
Road Management System). The Gravel Road Management System is fully integrated into the
DOT™ Roads module, and the interventions are included in the capital planning results. The
GRMS was designed to meet the following criteria:
-
manage inventory, condition data, and maintenance history of the gravel roads in
conjunction with the paved roads;
-
establish refined priority policies using network-wide priority settings based on various
physical attributes, such as traffic, functional class, roadside environment, in addition to
socio-economic factors for individual road segments;
-
specify detailed routine maintenance polices based on local knowledge or pre-set
schedules;
-
identify when gravel roads should be upgraded to a hard surface;
-
compare the longer-term impacts of multiple scenarios with different policy and budget
settings; and
-
generate a 10-year capital plan with road lists, budgeted costs, annual schedules, and
map visualizations.
Decision to Upgrade to Surface Treatment
A key component of the analysis module of a GRMS is to determine if surface treating (i.e., chip
sealing, oiling or similar) a gravel road is a sensible option. A financial analysis (i.e., discounted
cash flow analysis) can be performed based on the initial cost of upgrading and the cost of
subsequent maintenance activities in both cases. Figure 15 shows an example of a financial
analysis on two gravel road segments. First segment is 476 m long with AADT of 250 and the
other segment is 973 m long with AADT of 50. The analysis uses an inflation rate of 1.5% and a
nominal discount rate of 3%. In the first case (AADT of 250), the cost of maintenance as a gravel
road (i.e., the cost of re-gravelling, drainage maintenance, grading, and dust control) over the next
20 years in today's dollars is estimated at about $69,000. By surface treating this segment the
20-year maintenance costs are reduced to about $37,000 (i.e., the initial cost of a double chip
seal with subsequent slurry seals and single chip seal treatments). It is, therefore, more cost
effective to chip seal this segment. In the second case (AADT of 50), however, the cost of
maintaining the segment with a gravel surface is around $22,000 less compared to surface
treatment.
Figure 27: Financial analysis of upgrading gravel roads to surface treated
Performing financial analysis indicates that traffic is a major determinant of the time of upgrade
for a gravel road. In addition to financial analysis, other considerations that should factor in the
decision are described below:
Segment AADT = 250
Gravel Cost = $69,476
Surface Treated Cost = $37,331
Segment AADT = 50
Gravel Cost = $55,908
Surface Treated Cost = $77,671
36 | P A G E
-
Structural Capacity: When a gravel road is upgraded, the surface treatment acts as a
sealant and reduces moisture penetration. It also prevents surface gravel loss, eliminates
dust generation, and increases user satisfaction by providing a smoother ride and better
appearance. A surface treatment, however, does not improve the structural capacity of a
gravel road. A gravel road with structural or subgrade defects, needs to be structurally
enhanced or rehabilitated before upgrading to surface treatment. The cost of rehabilitation
and stabilization should be added to the initial cost of surface treatment as part of the
financial analysis. Upgrading a gravel road with structural defects can significantly reduce
the service life of the surface treatment and result in poor performance.
-
Drainage: Similar to structural capacity, adequate drainage provision of a surface treated
road is imperative to achieving satisfactory long-term performance. Surface treated roads
are less forgiving to frost damage than gravel surfaces. Poor drainage conditions will
reduce the useful life of a surface treatment and make it expensive to maintain.
-
Traffic Characteristics: Types of traffic can significantly affect the performance of surface
treated roads. In some cases, a gravel road can be an agricultural or mining access road
that experiences heavy or overloaded trucks on a regular basis. In general, if a gravel road
serves heavy traffic, upgrading to surface treated can become an expensive decision
since heavy trucks are more damaging to a surface treated road and the cost of
rehabilitation is higher. In this case, it may be better to retain the gravel surface and
upgrade to a superior load-bearing hot mix asphalt pavement when sufficient funds are
available.
-
Road Geometry: When a gravel road is upgraded to surface treated, it encourages drivers
to drive faster and therefore operational speed increases. It may also increase traffic
volumes as more motorists decide to use it. Substandard geometric features such as
horizontal and vertical alignments, sight distances, lane widths, shoulder widths,
superelevations, in addition to lack of signage, can result in safety hazards and a higher
risk of accidents. It might be necessary to improve the geometric features of a road before
upgrading to surface treatment and the cost of these improvements should be taken into
account as part of a financial analysis.
-
Opinions of Local Residents: While it is usually assumed that local residents will support
an upgrade to surface treatment, this is not always the case. Local users may prefer to
retain a gravel road rather than encouraging more traffic, higher speeds and greater use
of the route by commuters. It should also be noted that from a context sensitivity
perspective, gravel surfacing may be more compatible with the road environment and
community setting.
5.2 BRIDGES
The Town of Thessalon has a total of 2 Bridges. Element level data was provided by the Town,
so an element-based analysis was done. There are a total of 80 Bridge Elements.
5.2.1
BRIDGE GEOMETRICS AND ATTRIBUTES
The following summarizes the Bridge Element Groups within the Municipality, weighed by
Replacement Cost:
37 | P A G E
Element Group
Replacement Cost
Percentage
Approaches
340,620
9.3%
Barriers
74,310
2.0%
Beams/Main Longitudinal Elements
480,500
13.1%
Bracing
35,000
1.0%
Coatings
442,768
12.0%
Decks
1,138,706
31.0%
Foundations
500,000
13.6%
Joints
22,060
0.6%
Sidewalks/curbs
31,920
0.9%
Trusses/Arches
242,001
6.6%
Abutments
364,070
9.9%
Accessories
2,500.0
0.1%
Figure 27: Bridge Element Groups
5.2.2
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Bridges is determined through a condition based analysis. The
five (5) Condition States are defined as follows:
38 | P A G E
Figure 28: Bridge Condition State Ranges
Bridges condition assessments done in 2015. Detailed geometric and design data with element
data is provided on the inspection sheets, together with an overall Structural Condition Rating,
and an overall Sufficiency Rating. Condition data was provided for the bridge elements, so
detailed element classification of bridges was analyzed.
Since the assessments are from 2015, DOTTM is used to calculate the estimated current condition
ratings by applying built-in degradation curves. Based on this methodology, the overall estimated
2020 condition of the Bridge Network is 48.1, with John Fullerton Bridge at 47.7, and Government
Rd. Bridge at 48.7. This represents an overall "Fair" condition state.
Title
Condition
Condition State
2020 Est. Network Condition Overall
48.1
Fair
John Fullerton Bridge
47.7
Fair
Government Rd Bridge
48.7
Fair
The following summarizes the Est. 2020 Network Bridge Element condition states, weighed by
replacement cost:
Figure 29: Bridge Network Condition
39 | P A G E
The Condition Status by Bridge Element Group are shown in Figure 30:
Figure 30: Bridge Network Condition by Bridge Element Group
The Condition States by Bridge Element Material are shown in Figure 31:
Figure 31: Bridge Network Condition by Bridge Element Material
40 | P A G E
The Map view of the condition state of the 2 Bridges is shown in Figure 32.
Figure 32: Bridge Current Network Condition Map
5.2.3
CRITICALITY AND RISK CRITERIA
Criticality
Based on the Data Attributes available, the Criticality settings were applied based on Element
Group and Traffic (AADT). Socio-economic factors were not included at this time.
Criticality Settings
Element Group
6
Abutments
40
Accessories
20
Approaches
40
Barriers
40
Beams/Main Longitudinal
Elements
90
Bracing
70
Coatings
20
Culverts
40
Decks
40
Embankments & Streams
20
Foundations
90
Joints
40
Other
20
41 | P A G E
Piers
70
Retaining walls
70
Sidewalks/curbs
20
Trusses/Arches
70
AADT
7
0 - 1000
20
1000 - 5000
40
5000 - 10000
70
10000 and over
90
Risk
The Risk settings for Bridges are done as described in Section 4. There are no risk targets set in
the planning.
5.2.4
LEVEL OF SERVICE REQUIREMENTS
The Town targets to eliminate their Bridge Backlog by the end of the plan period
5.2.5
LIFECYCLE MANAGEMENT STRATEGY
With bridge element condition data available, the available treatments are listed below:
Treatment Methods
Treatment
Description
Unit Cost
Seal Concrete (Area)
Seal Concrete (Area)
18.00 $/m²
Steel Protective Coating Repair
(Linear)
Steel Protective Coating Repair (Linear)
525.00 $/m
Repair Timber Elements (Area)
Repair Timber Elements (Area)
852.00 $/m²
Concrete Repair (Linear)
Seal/Patch/Repair Superstructure Concrete (Linear)
566.70 $/m
Crack Mitigation (Area)
Fatigue Crack Mitigation (pin-and-hanger replacement,
retrofit fracture critical members) (Area)
42622.00 $/m²
Patch/Repair Substructure Concrete
(Area)
Patch/Repair Substructure Concrete (Area)
4262.00 $/m²
Steel Member Repair (Area)
Steel Member Repair (Area)
2132.00 $/m²
Clean/Flush Drains
Clean and Flush Drains
70.00 $/m²
Clean Joints
Clean Joints
21.00 $/m
Clean/Wash Bridge
Clean/Wash Bridge
42.00 $/m²
Crack Sealing
Deck/Parapet/Rail Sealing and Crack Sealing
43.00 $/m
Polymer Overlay
Polymer Overlay
70.00 $/m²
Polymer-Modified Asphalt Overlay
Polymer-Modifed Asphalt Overlay
140.00 $/m²
Seal Concrete (Linear)
Seal Concrete (Linear)
9.00 $/m
42 | P A G E
Bearing Restoration
Bearing Restoration (cleaning, lubrication, resetting,
replacement)
3900.00 $/ea.
Channel Cleaning / Debris Removal
Channel Cleaning / Debris Removal
19500.00 $/ea.
Concrete Deck Repair
Concrete Deck Repair (see halo effect below) in
Conjunction with Overlays, CP Systems or ECE
Treatment
1399.00 $/m²
Deck Overlays
Deck Overlays (thin polymer epoxy, asphalt with
waterproof membrane, rigid overlays)
280.00 $/m²
Drains Repair/Replace
Deck Drains, Repair/Replace
650.00 $/ea.
ECE/CP
Electrochemical Extraction (ECE)/Cathodic Protection
(CP)
70.00 $/m²
Crack Mitigation (Linear)
Fatigue Crack Mitigation (pin-and-hanger replacement,
retrofit fracture critical members) (Linear)
21311.00 $/m
Joint Repair
Joint Repair/Replace/Elimination
6393.00 $/m
Joint Seal Replacement
Joint Seal Replacement
2131.00 $/m
Machinery Cleaning
Movable Bridge Machinery Cleaning/Lubrication/Repair
32500.00 $/ea.
Patch/Repair Substructure Concrete
(Linear)
Patch/Repair Substructure Concrete (Linear)
2131.00 $/m
Pile Preservation
Pile Preservation (jackets/wraps/CP)
3900.00 $/ea.
Protective Coating Elements
Protective Coat Concrete/Steel Elements
420.00 $/m²
Protective Coating Substructure
Protective Coat/Concrete/Steel Substructure
852.00 $/m
Repair/Replace Approach Slabs
Repair/Replace Approach Slabs
490.00 $/m²
Scour Countermeasure
Scour Countermeasure (installation/repair)
65000.00 $/ea.
Concrete Repair (Area)
Seal/Patch/Repair Superstructure Concrete (Area)
1889.00 $/m²
Painting Steel Elements
Spot/Zone/Full Painting Steel Elements
128.00 $/m
Painting Steel Substructure
Spot/Zone/Full Painting Steel Substructure
128.00 $/m
Steel Member Repair (Linear)
Steel Member Repair (Linear)
1066.00 $/m
Repair Timber Elements (Linear)
Patch/Repair Timber Elements (Linear)
426.00 $/m
Coating Repair
Concrete Protective Coating Repair
140.00 $/m²
Coating Patching
Concrete Protective Coating Patching
350.00 $/m²
Masonry Bridge Rail Repair
Masonry Bridge Rail Repair
107.00 $/m
Seal Concrete Column
Seal Concrete Column
975.00 $/ea.
Repair Concrete Column
Repair Concrete Colum
6500.00 $/ea.
Gusset Plate Repair
Gusset Plate Repair
3250.00 $/ea.
Steel Beam Repair
Steel Beam Repair
1066.00 $/m
Protective Coating Beams
Protective Coating Beams
213.00 $/m
Secondary Cable Replacement
Secondary Cable Replacement
32500.00 $/ea.
43 | P A G E
Pin Replacement
Pin Replacement
45500.00 $/ea.
Seal Deck
Seal Deck
28.00 $/m²
Replace Concrete Top Flange
Replace Concrete Top Flange
2099.00 $/m²
Replace Concrete Culvert
Replace Concrete Culvert
426.00 $/m
Crack Sealing Deck/Slab
Crack Sealing Deck/Slab
140.00 $/m²
Concrete Deck Replacement
Concrete Deck Replacement
910.00 $/m²
Concrete Floor Beam Repair
Concrete Floor Beam Repair
1705.00 $/m
Concrete Girder/Beam Repair
Concrete Girder/Beam Repair
1492.00 $/m
Concrete Stringer Repair
Concrete Stringer Repair
1492.00 $/m
Protective Coating Steel Column
Protective Coating Steel Column
650.00 $/ea.
Repair Steel Colum
Repair Steel Colum
6500.00 $/ea.
Replace Steel Culvert
Replace Steel Culvert
2131.00 $/m
Steel Deck Repair
Steel Deck Repair
8396.00 $/m²
Steel Deck Replacement
Steel Deck Replacement
1399.00 $/m²
Steel Protective Coating Repair
Steel Protective Coating Repair
1050.00 $/m²
Protective Coating Steel (linear)
Protective Coating Steel (linear)
852.00 $/m
Repair Timber Column
Repair Timber Column
1950.00 $/ea.
Timber Deck Repair
Timber Deck Repair
3498.00 $/m²
Timber Deck Replacement
Timber Deck Replacement
2099.00 $/m²
Animal/Pest Control
Animal/Pest Control
420.00 $/m²
Erosion Control at Bridges
Erosion Control at Bridges
84.00 $/m²
Replace Plastic Culvert
Replace Plastic Culvert
1279.00 $/m
Joint Armour Replacement
Joint Armour Replacement
1119.00 $/m²
Plastic Element Replacement
Plastic Element Replacement
2799.00 $/m²
Reslope Soil/gravel surface
Reslope Soil/gravel surface
28.00 $/m²
Channel excavation
Channel excavation (small quantity)
429.00 $/m²
Re-attachment of utilities
Re-attachment of utilities
26000.00 $/ea.
5.2.6
BUDGET CONSTRAINTS
Routine Maintenance of up to 75k/year applied as a budget constraint, but no Capital budget limit
is specified.
Total Routine Maintenance Budget
Name
Subset
Settings
From
To
AGF
RM $75k/year
NA
<= $75000
2021
2030
0.0%
44 | P A G E
5.2.7
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Bridges, on the basis of an unlimited capital
budget and with a routine maintenance of $75k/year. The Optimization Analysis Settings are as
follows:
Scenario
Name:
AMP 10-year All Elements
Description:
Unlimited Capital Budget,
Routine Maintenance $75k/yr
Year:
2021
Optimization Settings
Optimization Mode
Target Optimization
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
1
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance Attribute
Minimize Backlog
Min
1
NA
Network Optimization Results
Figure 33 shows the network overall network performance throughout the plan period:
Figure 33: Bridge Network Performance
45 | P A G E
Over the next 10 years, the performance of the Bridge network increases from 48.1 to 68.5 at the
end of plan.
Figure 34 shows the Network Performance by Bridge Element Type:
Figure 34: Bridge Network Performance by Bridge Element Type
Figure 35 shows the condition status distribution of the Bridge network for each year of the plan:
Figure 35: Bridge Annual Network Condition Status
46 | P A G E
As shown in this figure, at the beginning of the plan 43% is in good, 36% in fair, 6% in poor, and
15% in very poor condition. At the end of the 10-year plan, 40% will be in excellent, 18% in good,
41% in fair, and 1% in poor condition. Also, as per Level of Service target, none of the Bridges
are in a deficit position end the end of the plan period.
The capital expenditures for Bridges during the 10 year plan period is shown here:
Figure 36: Bridge Annual Capital Expenditures
The projected routine maintenance expenditures for Bridges are shown in Figure 37:
Figure 37: Bridge Routine Maintenance Expenditures
47 | P A G E
The deficit projection for Bridges is shown in Figure 38:
Figure 38: Bridge deficit projection
The deficit (backlog) is eliminated by the end of the plan period.
5.2.8
RECOMMENDED PROJECTS
An overview of the annual capital projects is shown in Figures 39 and 40.
Figure 39: Bridges Recommended Projects by Treatment Type
48 | P A G E
Figure 40: Summary of Recommended Projects by Treatment Method
The detailed capital Investment plan specifying which bridge element is scheduled for which
suggested treatment, in which year, and at what budgeted cost is presented in Appendix A, the
Capital Investment Plan the Municipality.
5.3 WATERLINES
The Town of Thessalon has a total of 19.5 km of Waterlines, with 0.4 km of Polyethylene pipes,
2.1 km of Ductile Iron pipes, 0.5 km of Asbestos Cement pipes, 12.6 km of PVC pipes, 0.2 km of
copper pipes, and 3.8 km of Cast Iron pipes.
5.3.1
WATERLINE ATTRIBUTES
The following summarizes the waterline material types within the Municipality:
Treatment
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Total
Steel P rotective Coating Repair (Linear)
48,160
4,532
0
0
0
0
0
0
0
0
52,692
Steel M ember Repair (Area)
0
0
0
0
0
76,000
106,000
60,000
0
0
242,000
Concrete Repair (Linear)
0
0
0
0
0
0
0
2,680
0
0
2,680
Seal Concrete (Area)
396,650
0
0
31,920
0
0
35,870
0
0
367,720
832,160
Clean Joints
0
6,350
5,000
6,350
5,000
0
11,350
0
11,350
0
45,400
Clean/Wash Bridge
245,160
185,340
1,021,770
414,000
15,000
1,054,110
219,660
1,203,150
230,460
1,205,310
5,793,960
Seal Concrete (Linear)
34,200
0
0
0
34,200
0
0
0
0
34,200
102,600
Bearing Restoration
5,000
0
0
4,000
0
0
5,000
0
0
0
14,000
Concrete Deck Repair
129,000
186,000
0
0
8,500
0
5,040
0
0
0
328,540
Deck Overlays
0
22,250
0
0
0
0
0
22,250
0
0
44,500
ECE/CP
0
2,160
0
0
2,160
0
0
2,160
0
0
6,480
Joint Seal Replacement
5,000
0
0
0
0
0
0
0
0
0
5,000
P atch/Repair Substructure Concrete (Linear)
480,000
0
0
0
0
0
0
0
0
0
480,000
P ainting Steel Substructure
277,001
0
0
0
0
0
0
0
0
0
277,001
Steel M ember Repair (Linear)
470,750
16,700
0
12,000
12,560
17,750
500
21,585
0
409,000
960,845
Repair Timber Elements (Linear)
6,400
0
0
6,400
0
0
6,400
0
0
6,400
25,600
Crack Sealing Deck/Slab
0
0
10,380
14,220
0
0
10,380
0
661,050
0
696,030
Steel P rotective Coating Repair
0
0
0
195,175
0
0
0
0
0
194,900
390,075
P rotective Coating Steel (linear)
10,500
13,060
0
0
17,200
0
0
0
0
0
40,760
Repair Timber Column
0
20,000
0
0
0
0
0
0
0
0
20,000
Timber Deck Replacement
15,000
40,500
0
0
202,500
162,000
12,960
0
0
0
432,960
Erosion Control at Bridges
1
0
0
0
0
0
0
0
0
0
1
Joint Armour Replacement
0
0
0
0
6,350
0
0
0
0
0
6,350
Reslope Soil/gravel surface
1
0
0
0
0
1
0
0
0
0
2
Total
2,122,823
496,892
1,037,150
684,065
303,470
1,309,861
413,160
1,311,825
902,860
2,217,530 10,799,636
49 | P A G E
Material
Length (km)
Percentage
Polyethylene
0.4
2.0%
Ductile Iron
2.1
10.7%
Asbestos Cement
0.5
2.6%
PVC
12.6
64.3%
Copper
0.2
1.0%
Cast Iron
3.8
19.4%
Figure 41: Waterline by Material
5.3.2
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for waterlines is determined through an age-based condition
analysis. The four (4) Condition States are defined as follows:
Figure 42: Waterline Condition State Ranges
50 | P A G E
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Waterlines is 44. This represents an overall "Fair" condition state.
Title
Condition
Condition State
Network Overall Condition
44
Fair
The following summarizes the 2020 Network Condition, weighted by section length:
Figure 43: Waterline Network Condition
The Condition States by Material are shown in Figure 44:
Figure 44: Waterline Network Condition by Material
51 | P A G E
The Map view of the Waterline condition state is shown in Figure 45.
Figure 45: Waterlines Current Network Condition Map
5.3.3
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on Asset Status
only, with in-service assets being critical. Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Diameter
10
0 - 150
10
150 - 300
40
300 - 450
70
450 and over
100
52 | P A G E
Figure 46 shows the criticality states of the various road sections:
Figure 46: Waterlines Network Criticality Map
Risk
The Risk settings for Waterlines are done as described in Section 4. Due to the lack of data,
there are no risk targets set in the planning.
This Figure 47 shows the Risk levels of the road system:
Figure 47: Waterlines Network Risk Map
53 | P A G E
5.3.4
LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace waterlines before the end of their Service life is reached. The
analysis was done based on an end-of-life replacement, with no budget constraint.
5.3.5
LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Waterlines, and it is a replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement Treatment
100.00 %
0.0%
2021
5.3.6
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Waterlines, on the basis of a straight end-of-life
replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
54 | P A G E
Network Optimization Results
Figure 48 shows the Waterline network overall network performance throughout the plan period:
Figure 48: Waterlines Network Performance
Over the next 10 years, as the pipes age, the performance of the waterline network increase from
44 to 48 at the end of plan.
Figure 49 shows the condition status distribution of the waterline network for each year of the
plan:
Figure 49: Waterlines Annual Network Condition Status
55 | P A G E
As shown in this figure, at the beginning of the plan 1% is in excellent, 30% in good, 51% in fair,
and 18% in poor condition. At the end of the 10-year plan 13% of Waterlines will be in excellent,
30% in good, 45% in the fair, and 12% in poor condition.
The projected capital expenditures for Bridges are shown in Figure 50:
Figure 50: Waterlines Capital Expenditures
The 2020 backlog of $745,683 was taken care of in the first year of the plan, and there is no deficit
throughout the plan period.
5.4 HYDRANTS
The Town of Thessalon has 99 Hydrants in its inventory. Condition data for the Hydrants were
not available, so an age-based condition (% Remaining Service Life) was calculated.
5.4.1
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Hydrants is determined through an age-based analysis. The five
(5) Condition States are defined as follows:
Figure 51: Hydrants Condition State Ranges
56 | P A G E
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) is 44. This represents an overall "Good" condition state.
Title
Condition
Condition State
Network Overall Condition
44
Good
The Map view of the condition state is shown in Figure 52.
Figure 52: Hydrants Current Network Condition Map
5.4.2
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on Asset Status
only, with in-service assets being critical. Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
57 | P A G E
Risk
The Risk settings for Hydrant are done as described in Section 4. Due to the lack of data, there
are no risk targets set in the planning.
5.4.3
LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Hydrants before the end of their Service life is reached. The analysis
was done based on an end-of-life replacement, with no budget constraint.
5.4.4
LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Hydrants, and it is a replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.4.5
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Hydrants, and it is a straight end-of-life
replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
58 | P A G E
Network Optimization Results
Figure 53 shows the Hydrant overall network performance throughout the plan period:
Figure 53: Overall Hydrant Network Condition Status
Over the next 10 years, as the assets age, the performance of the Hydrant network increases
from 44 to 53 at the end of plan.
Figure 54 shows the condition status distribution of the Hydrant network at each year of the plan:
Figure 54: Annual Network Condition State - Hydrants
As shown in this figure, at the beginning of the plan 36% is in excellent, 27% in good, 6% in fair,
29% in poor condition, and 1% in very poor condition. At the end of plan, 42% is in excellent,
18% in good, 7% in fair, and 32% in poor condition.
59 | P A G E
The projected capital expenditures for Hydrants are shown in Figure 55:
Figure 55: Hydrants Capital Expenditures
The 2020 backlog of $5,940 was taken care of in the first year of the plan, and there is no deficit
throughout the plan period.
5.5 SEWERLINES
The Town of Thessalon has a total of 17.3 km of Sewerlines, with 2.1 km of PVC pipes, 0.8 km
of High-Density Polyethylene pipes, 2.1 km of Ductile Iron pipes, and 12.5 km of Asbestos
Cement pipes.
5.5.1
SEWERLINE ATTRIBUTES
The following summarizes the Sewerline types within the Municipality:
Type
Length (km)
Percentage
Gravity
14.0
80.9%
Forced
3.3
19.1%
60 | P A G E
Figure 56: Sewerlines by Type
5.5.2
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Sewerlines is determined through an age-based condition
analysis. The four (4) Condition States are defined as follows:
Figure 57: Sewerline Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the sewerlines is 48. This represents an overall "Fair" condition state.
Title
Condition
Condition State
Network Overall Condition
48
Fair
61 | P A G E
The following summarizes the 2020 Network Condition, weighted by section length:
Figure 58: Sewerline Network Condition
The Condition States by Sewerline Type are shown in Figure 59:
Figure 59: Sewerline Network Condition by Type
62 | P A G E
The Map view of the Sewerline condition state is shown in Figure 60.
Figure 60: Condition Map View of Sewerline Network
5.5.3
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status
and pipe diameter. Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Diameter
10
0 - 125
11
125 - 250
45
250 and over
100
Risk
The Risk settings for Sewerlines are done as described in Section 4. Due to the lack of data,
there are no risk targets set in the planning.
63 | P A G E
5.5.4
LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Sewerlines before the end of their service life is reached. The
analysis was done based on an end-of-life replacement, with no budget constraint.
5.5.5
LIFECYCLE MANAGEMENT STRATEGY
Treatments based on pipe material are available for Sewerlines, and they are open trench
replacement treatments.
Treatment Methods
Treatment
Description
Unit Cost
Open Trench Replacement (Concrete)
Open Trench Replacement
100.00 %
Open Trench Replacement (Steel)
Open Trench Replacement
100.00 %
Open Trench Replacement (PE)
Open Trench Replacement
100.00 %
Open Trench Replacement (PVC)
Open Trench Replacement
100.00 %
Open Trench Replacement
Open Trench Replacement
100.00 %
5.5.6
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Sewerlines, on the basis of a straight end-of-
life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
64 | P A G E
Network Optimization Results
Figure 61 shows the Sewerline overall network performance throughout the plan period:
Figure 61: Sewerline Network Performance
Over the next 10 years, as the pipes age, the performance of the Sewerline network declines from
48 to 25 at the end of plan.
Figure 62 shows the condition status distribution of the Sewerline network at each year of the
plan:
Figure 62: Sewerlines Annual Network Condition Status
65 | P A G E
As shown in this figure, at the beginning of the plan 2% is in excellent, 17% in good, 77% in fair,
and 3% in poor condition. At the end of the 10-year plan 6% will be in excellent, 15% in good,
4% in poor, and 74% in poor condition. Despite most sections being in poor condition, none of
the Sewerline sections are in a deficit position throughout the plan period, and a total of $829,341
replacements are scheduled.
The projected capital expenditures for Sewerlines are shown in Figure 63:
Figure 63: Sewerlines Capital Expenditures
5.6 PUMPING STATIONS (SEWER)
The Municipality of Thessalon has four (4) Pumping Station assets.
5.6.1
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Pumping Stations is determined through an age-based condition
analysis. The four (4) Condition States are defined as follows:
Figure 64: Pumping Station Condition State Ranges
66 | P A G E
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Lift Stations is 48. This represents an overall "Fair" condition state.
Title
Condition
Condition State
Network Overall Condition
48
Fair
The following summarizes the % Remaining Service Life, weighted by Replacement Cost:
Figure 65: Pumping Station (Sewer) Network Condition
5.6.2
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
100
Removed
0
Unassumed
0
Risk
The Risk settings for Lift Stations are done as described in Section 4. Due to the lack of data,
there are no risk targets set in the planning.
67 | P A G E
5.6.3
LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Pumping Station assets before the end of their Service life is reached.
The analysis was done based on an end-of-life replacement, with no budget constraint. It is
recommended that more data on the components of the Lift Stations is collected, to do a more
accurate Element-based analysis.
5.6.4
LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Pumping Stations, and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation
Rate
Cost
Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.6.5
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Pumping Stations, on the basis of a straight
end-of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of the replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
68 | P A G E
Network Optimization Results
Figure 66 shows the Pumping Stations overall network performance throughout the plan period:
Figure 66: Pumping Stations Network Performance
Over the next 10 years, as the Pumping Station assets age, the network performance declines
from 47 to 23 at the end of plan.
Figure 67 shows the condition status distribution of the Pumping Station assets at each year of
the plan:
Figure 67: Annual Pumping Station Assets Condition Status
As shown in this figure, at the beginning of the plan 19% is in the excellent, and 81% is in fair
condition. At the end of the 10-year plan 54% will be in fair, and 46% will be in poor condition. No
replacements are scheduled during the plan period.
69 | P A G E
5.7 LAGOONS
The Municipality has two (2) Lagoon assets. Component data are not available.
5.7.1
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Lagoons is determined through an age-based condition analysis.
The four (4) Condition States are defined as follows:
Figure 68: Lagoons Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Lagoons is 33. This represents an overall "Fair" condition state.
The following summarizes the % Remaining Service Life, weighted by Replacement Cost:
Figure 69: Lagoon Assets Condition
Title
Condition
Condition State
Network Overall Condition
33
Fair
70 | P A G E
5.7.2
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Lagoon assets are done as described in Section 4. Due to the lack of data,
there are no risk targets set in the planning.
5.7.3
LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Lagoon assets before the end of their Service life is reached. The
analysis was done based on an end-of-life replacement, with no budget constraint
5.7.4
LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Lagoon assets, and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation
Rate
Cost
Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.7.5
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Lagoons, on the basis of a straight end-of-life
replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
71 | P A G E
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 70 shows the Lagoons overall network performance throughout the plan period:
Figure 70: Lagoons Network Performance
Over the next 10 years, as the Lagoons age, the network performance decreases from 33 to 17
at the end of plan.
72 | P A G E
Figure 71 shows the condition status distribution of the Lagoons network at each year of the plan:
Figure 71: Annual Network Condition Status
As shown in this figure, at the beginning of the plan 99% is in fair, and 1% is in poor condition. At
the end of the 10-year plan 1% will be in the good condition, and 99% will be in the poor condition.
The projected Capital expenditures for Lagoons are shown in Figure 72:
Figure 72: Lagoons Capital Expenditures
The backlog was taken care of in the first year of the plan, and no other capital projects are
scheduled during the plan period.
73 | P A G E
5.8 BUILDINGS
The Town of Thessalon has a total of 19 Building Assets. No data for Building
Elements/Components was available, so the buildings are analyzed on the whole.
5.8.1
BUILDINGS ATTRIBUTES
The following summarizes the Buildings by Department within the Municipality:
Department
Replacement Cost
Percentage
General Government
893,332.8
7.20%
Recreation Facilities
7,019,267.8
56.7%
Fire Protection
368,677.4
3.0%
Library
1,404,343.4
11.3%
Transportation services
261,593.3
2.1%
Other
2,442,440.0
19.7%
Figure 73: Buildings by Department
5.8.2
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Buildings is determined through an age-based condition
analysis. The five (5) Condition States are defined as follows:
74 | P A G E
Figure 74: Buildings Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Buildings is 40. This represents an overall "Fair" condition state.
Title
Condition
Condition State
Network Overall Condition
40
Fair
The following summarizes the 2020 Building Network Condition, weighted by replacement cost:
Figure 75: Buildings Network Condition
75 | P A G E
The Condition States by Department are shown in Figure 76:
Figure 76: Buildings Network Condition by Department
The Map view of the Building condition states is shown in Figure 77.
Figure 77: Buildings Current Network Condition Map
76 | P A G E
5.8.3
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
100
Removed
0
Risk
The Risk settings for Buildings are done as described in Section 4. Due to the lack of data, there
are no risk targets set in the planning.
5.8.4
LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Buildings before the end of their Service life is reached. The analysis
was done based on an end-of-life replacement, with no budget constraint.
5.8.5
LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Buildings, and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.8.6
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Buildings, on the basis of a straight end-of-life
replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
77 | P A G E
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 78 shows the buildings overall network performance throughout the plan period:
Figure 78: Building Network Performance
Over the next 10 years, the performance of the building network increases from 40 to 78 at the
end of plan.
Figure 99 shows the condition status distribution of the building network at each year of the plan:
Figure 79: Building Annual Network Condition Status
78 | P A G E
As shown in this figure, at the beginning of the plan 29% is in excellent, 7% in good, 6% in fair,
and 57% in poor condition. At the end of the 10-year plan 55% of the building assets will be in
excellent, 38% in good, and 7% in fair condition.
There is a backlog of $ 6,751,866 which is taken care of in the first year of the plan. The following
capital expenditures for replacements are scheduled:
Figure 80: Building Projected Capital Expenditures
These Building replacement projects are based on age triggers. Because no condition
assessment, component-based data or renovation history is available, the scheduled
replacement projects may not be required as specified. Therefore, these scheduled Building
replacements are not included in financial forecasting.
5.9 VEHICLES
The Town of Thessalon has a total of 15 Vehicles, classified by Departments Water, Fire and
Public Works . Due to the large variation in cost, the Vehicles are weighed by Replacement Cost.
5.9.1
BUILDINGS ATTRIBUTES
The following summarizes the Vehicles by Department within the Municipality:
Department
Replacement Cost
Percentage
Water
8,100.0
0.6%
Fire Department
367,200.0
28.5%
Public Works
915,000.0
70.9%
79 | P A G E
Figure 81: Vehicles by Department
5.9.2
CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Vehicles is determined through an age-based condition analysis.
The five (5) Condition States are defined as follows:
Figure 82: Vehicle Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Fleet Condition (%RSL)
of the Vehicles is 39. This represents an overall "Fair" condition state.
Title
Condition
Condition State
Network Overall Condition
39
Fair
The following summarizes the 2020 Vehicle Condition, weighed by replacement cost:
80 | P A G E
Figure 83: Vehicle Fleet Condition
This Figure shows the Vehicles condition State by Department:
Figure 84: Vehicles Condition by Department
5.9.3
CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on Asset Status.
Socio-economic factors were not included.
81 | P A G E
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Vehicles are done as described in Section 4. Due to the lack of data, there
are no risk targets set in the planning.
5.9.4
LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Vehicles before the end of their Service life is reached. The analysis
was done based on an end-of-life replacement, with no budget constraint.
5.9.5
LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Vehicles, and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.9.6
OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Vehicles, on the basis of a straight end-of-life
replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current Condition
True
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
82 | P A G E
Network Optimization Results
Figure 85 shows the Vehicles overall fleet performance throughout the plan period:
Figure 85: Vehicle Fleet Performance
Over the next 10 years, the performance of the Vehicles network improves from 39 to 64 at the
end of plan.
Figure 86 shows the condition status distribution of the Vehicles network at each year of the plan:
Figure 86: Annual Vehicle Fleet Condition Status
As shown in this figure, at the beginning of the plan 37% is in excellent, 3% in good, 34% in fair,
0% in poor, and 27% in very poor condition. At the end of the 10-year plan 76% will be in excellent,
7% in good, 16% in fair, and 1% will be in poor condition.
83 | P A G E
The scheduled capital expenditures are shown in Figure 87:
Figure 87: Vehicles Capital Expenditures
The backlog has been cleared in the first year of the capital plan, and there is no deficit position
throughout the plan period.
5.10 EQUIPMENT
The Town of Thessalon has a total of 38 Equipment Assets. Due to the large variation in cost,
the Equipment assets are weighed by Replacement Cost.
5.10.1 BUILDINGS ATTRIBUTES
The following summarizes the Vehicles by Department within the Municipality:
Department
Replacement Cost
Percentage
Water
13,608.0
1.2%
Arena
418,400.0
35.4%
Fire Department
113,700.0
9.6%
General Government
252,800.0
21.4%
Public Works
224,200.0
19.0%
Marina
21,600.0
1.8%
Park
23,800.0
2.0%
Community Hall
98,000.0
8.3%
Sewer
16,000.0
1.4%
84 | P A G E
Figure 88: Equipment by Department
5.10.2 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Equipment Assets is determined through an age-based condition
analysis. The five (5) Condition States are defined as follows:
Figure 89: Equipment Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Equipment Assets, weighed by replacement cost, is 47. This represents an overall
"Good" condition state.
Title
Condition
Condition State
Network Overall Condition
47
Good
85 | P A G E
The following summarizes the 2020 Network Condition States:
Figure 90: Equipment Assets Network Condition
5.10.3 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Equipment Assets are done as described in Section 4. Due to the lack of
data, there are no risk targets set in the planning.
5.10.4 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Equipment Assets before the end of their Service life is reached.
The analysis was done based on an end-of-life replacement, with no budget constraint.
5.10.5 LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Equipment Assets, and it is a full replacement treatment.
86 | P A G E
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.10.6 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Equipment Assets, on the basis of a straight
end-of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 91 shows the Equipment Assets overall network performance throughout the plan period:
87 | P A G E
Figure 91: Equipment Network Performance
Over the next 10 years, the performance of the Equipment assets declines from 47 to 43 at the
end of plan.
Figure 92 shows the condition status distribution of the Equipment Assets network at each year
of the plan:
Figure 92: Equipment Annual Network Condition Status
As shown in this figure, at the beginning of the plan 49% is in excellent, 22% in good, 1% in fair,
2% in poor and 25% in very poor condition. At the end of the 10-year plan 40% will be in excellent,
9% in good, 14% in fair, 20% in poor, and 17% in very poor condition.
88 | P A G E
The scheduled capital expenditures are shown in Figure 93:
Figure 93: Equipment Capital Expenditures
The backlog has been cleared in the first year of the capital plan, and there is no deficit position
during the plan period.
5.11 BALL FIELD DIAMONDS
The Town of Thessalon has a total of 3 Ball Field Diamonds.
5.11.1 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Ball Fields is determined through an age-based condition
analysis. The five (5) Condition States are defined as follows:
Figure 94: Ball field Diamonds Condition State Ranges
89 | P A G E
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Ball field Diamonds Assets, weighed by replacement cost, is 24. This represents
an overall "Fair" condition state.
Title
Condition
Condition State
Network Overall Condition
24
Fair
The following summarizes the 2020 Network Condition States:
Figure 95: Ball field Diamonds Assets Network Condition
5.11.2 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Ball field Diamonds are done as described in Section 4. Due to the lack of
data, there are no risk targets set in the planning.
90 | P A G E
5.11.3 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Ball field Diamonds before the end of their Service life is reached.
The analysis was done based on an end-of-life replacement, with no budget constraint.
5.11.4 LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Ball field Diamonds, and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.11.5 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Ball field Diamonds Assets, on the basis of a
straight end-of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
91 | P A G E
Network Optimization Results
Figure 96 shows the Ball field Diamonds Assets overall network performance throughout the plan
period:
Figure 96: Ball field Diamonds Network Performance
Over the next 10 years, the performance of the Ball field Diamonds Assets network improves from
24 to 85 at the end of plan.
Figure 97 shows the condition status distribution of the Ball field Diamonds Assets network at
each year of the plan:
Figure 97: Ball field Diamonds Annual Network Condition Status
92 | P A G E
As shown in this figure, at the beginning of the plan 67% is in fair, and 33% in very poor condition.
At the end of the 10-year plan 67% will be in excellent, and 33% will be in good condition.
The scheduled capital expenditures are shown in Figure 98:
Figure 98: Ball field Diamonds Capital Expenditures
The backlog has been cleared in the first year of the capital plan, and there is no deficit position
during the plan period.
5.12 SIDEWALKS
The Town of Thessalon has a total of 5.8 km of Sidewalk Assets.
5.12.1 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Sidewalks assets is determined through an age-based condition
analysis. The five (5) Condition States are defined as follows:
Figure 99: Sidewalk Condition State Ranges
93 | P A G E
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Sidewalk Assets, weighed by length, is 19. This represents an overall "Poor"
condition state.
Title
Condition
Condition State
Network Overall Condition
19
Poor
The following summarizes the 2020 Network Condition States:
Figure 100: Sidewalk Network Condition
The Map view of the Sidewalk condition states is shown in Figure 101.
Figure 101: Sidewalks Current Network Condition Map
94 | P A G E
5.12.2 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
100
Removed
0
Unassumed
0
Risk
The Risk settings for Sidewalks Assets are done as described in Section 4. Due to the lack of
data, there are no risk targets set in the planning.
5.12.3 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Sidewalks before the end of their Service life is reached. The
analysis was done based on an end-of-life replacement, with no budget constraint.
5.12.4 LIFECYCLE MANAGEMENT STRATEGY
Two treatments are available for Sidewalks, and they are full replacement and maintenance
treatments.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement Treatment
100%
0.0%
2021
Maintenance
Routine Maintenance
5000.00 $/Km
0.0%
2021
5.12.5 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Sidewalk Assets, on the basis of a straight end-
of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 Years
Description:
Year:
2021
95 | P A G E
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
0.0%
Project Size Limit
0
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 102 shows the Sidewalks Assets overall network performance throughout the plan period:
Figure 102: Sidewalks Network Performance
Over the next 10 years, the performance of the Sidewalks Assets network improves from 19 to
70 at the end of plan.
96 | P A G E
Figure 103 shows the condition status distribution of the Sidewalks Assets network at each year
of the plan:
Figure 103: Sidewalks Annual Network Condition Status
As shown in this figure, at the beginning of the plan 2% is in excellent, and 98% in poor condition.
At the end of the 10-year plan 100% will be in excellent condition.
The scheduled capital expenditures are shown in Figure 104:
Figure 104: Sidewalks Capital Expenditures
Almost all sidewalks are in a deficit position and are replaced in the first year of the plan.
97 | P A G E
5.13 CURBS & GUTTERS
The Town of Thessalon has a total of 2.6 km of Curbs & Gutters.
5.13.1 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Curbs & Gutters is determined through an age-based condition
analysis. The five (5) Condition States are defined as follows:
Figure 105: Curbs & Gutters Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Curbs & Gutters, weighed by length, is 68. This represents an overall "Excellent"
condition state.
Title
Condition
Condition State
Network Overall Condition
68
Excellent
The following summarizes the 2020 Network Condition States:
Figure 106: Curbs & Gutters Assets Network Condition
98 | P A G E
5.13.2 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on Asset Status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Curbs & Gutters are done as described in Section 4. Due to the lack of data,
there are no risk targets set in the planning.
5.13.3 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Curbs & Gutters before the end of their Service life is reached. The
analysis was done based on an end-of-life replacement, with no budget constraint.
5.13.4 LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Curbs & Gutters, and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation Year
Replacement
Replacement
100.00 %
0.0%
2020
5.13.5 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Curbs & Gutters, on the basis of a straight end-
of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current Condition
True
99 | P A G E
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance Attribute
Maximize Network Performance
Max
1
NA
Network Optimization Results
Figure 107 shows the Curbs & Gutters overall network performance throughout the plan period:
Figure 107: Curbs & Gutters Network Performance
Over the next 10 years, the performance of the Curbs & Gutters Assets network declines from 68
to 46 at the end of plan.
Figure 108 shows the condition status distribution of the Curbs & Gutters network at each year of
the plan:
Figure 108: Curbs & Gutters Annual Network Condition Status
100 | P A G E
As shown in this figure, at the beginning of the plan 87% is in excellent, and 13% is in good
condition. At the end of the 10-year plan 29% will be in excellent, 58% in fair, and 13% in poor
condition.
None of the Curbs & Gutters are in the deficit position throughout the plan and no replacements
are scheduled.
5.14 SIGNS (NOT TRAFFIC)
The Town of Thessalon has a total of 30 Signs (Not Traffic).
5.14.1 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Signs (Not Traffic) is determined through an age-based condition
analysis. The five (5) Condition States are defined as follows:
Figure 109: Signs (Not Traffic) Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Signs (Not Traffic) is 98. This represents an overall "Excellent" condition state.
Title
Condition
Condition State
Network Overall Condition
98
Excellent
The following summarizes the 2020 Network Condition States:
Figure 110: Signs (Not Traffic) Network Condition
101 | P A G E
5.14.2 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on Asset Status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Signs (Not Traffic) Assets are done as described in Section 4. Due to the
lack of data, there are no risk targets set in the planning.
5.14.3 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Signs (Not Traffic) before the end of their Service life is reached.
The analysis was done based on an end-of-life replacement, with no budget constraint.
5.14.4 LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Signs (Not Traffic), and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.14.5 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Signs (Not Traffic), on the basis of a straight
end-of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No`
Estimate Current Condition
True
102 | P A G E
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 111 shows the Signs (Not Traffic) overall network performance throughout the plan period:
Figure 111: Signs (Not Traffic) Network Performance
Over the next 10 years, the performance of the Signs (Not Traffic) declines from 98 to 48 at the
end of plan.
Figure 112 shows the condition status distribution of the Signs (Not Traffic) network at each year
of the plan:
Figure 112: Signs (Not traffic) Annual Network Condition Status
103 | P A G E
As shown in this figure, at the beginning of the plan 100% is in excellent condition. At the end of
the 10-year plan 100% will be in fair condition.
None of the Signs (Not Traffic) are in the deficit position throughout the plan and no replacements
are scheduled.
5.15 STORMLINES
The Town of Thessalon has a total of 6.1 km of Stormlines.
5.15.1 STORMLINES ATTRIBUTES
The following summarizes the Stormlines Materials within the Municipality:
Material
Length
Percentage
Concrete
1.8
29.5%
Corrugated Steel
0.9
14.8%
High-Density Polyethylene
1.6
26.2%
PVC
1.8
29.5%
Figure 113: Stormlines by Material
5.15.2 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Stormlines is determined through an age-based condition
analysis. The four (4) Condition States are defined as follows:
104 | P A G E
Figure 114: Stormlines Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Stormlines, weighed by length, is 56. This represents an overall "Good" condition
state.
The following summarizes the 2020 Network Condition States:
Figure 115: Stormlines Assets Network Condition
Title
Condition
Condition State
Network Overall Condition
56
Good
105 | P A G E
Figure 116 shows the Stormlines Network Condition State by Material:
Figure 116: Stormlines Condition by Material
The Map view of the condition state is shown in Figure 117:
Figure 117: Stormlines Current Network Condition Map
106 | P A G E
5.15.3 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Stormlines are done as described in Section 4. Due to the lack of data,
there are no risk targets set in the planning.
5.15.4 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Stormlines before the end of their Service life is reached. The
analysis was done based on an end-of-life replacement, with no budget constraint.
5.15.5 LIFECYCLE MANAGEMENT STRATEGY
The following Replacement Treatments based on pipe material are available for Stormlines:
Treatment Methods
Treatment
Description
Unit Cost
Open Trench Replacement (Concrete)
Open Trench Replacement
100.00 %
Open Trench Replacement (Steel)
Open Trench Replacement
100.00 %
Open Trench Replacement (PE)
Open Trench Replacement
100.00 %
Open Trench Replacement (PVC)
Open Trench Replacement
100.00 %
Open Trench Replacement
Open Trench Replacement
100.00 %
5.15.6 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the storm lines Assets, on the basis of a straight
end-of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
107 | P A G E
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Condition Variation
10.0%
Project Size Limit
2000
Rollover
0
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 118 shows the Stormlines Assets overall network performance throughout the plan period:
Figure 118: Stormlines Network Performance
Over the next 10 years, the performance of the storm lines Assets network increases from 56 to
82 at the end of plan.
108 | P A G E
Figure 119 shows the condition status distribution of the stormlines network at each year of the
plan:
Figure 119: Stormlines Annual Network Condition Status
As shown in this figure, at the beginning of the plan 44% is in excellent, 19% in good, 1% in fair,
and 35% in poor condition. At the end of the 10-year plan 44% will be in excellent, 41% in good,
14% in fair, condition.
The scheduled capital expenditures are shown in Figure 120:
Figure 120: Stormlines Capital Expenditures
The backlog is being cleared in the first year of the capital plan, and there is no deficit position
during the plan period.
109 | P A G E
5.16 STREETLIGHTS
The Town of Thessalon has a total of 307 Streetlights.
5.16.1 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Street Lights is determined through an age-based condition
analysis. The five (5) Condition States are defined as follows:
Figure 121: Streetlights Condition State Ranges
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Street Lights Assets, weighed by replacement cost, is 77. This represents an
overall "Excellent" condition state.
The following summarizes the 2020 Network Condition States:
Figure 122: Streetlights Network Condition
Title
Condition
Condition State
Network Overall Condition
77
Excellent
110 | P A G E
The Map view of the condition state is shown in Figure 123.
Figure 123: Streetlights Current Network Condition Map
5.16.2 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Streetlights are done as described in Section 4. Due to the lack of data,
there are no risk targets set in the planning.
5.16.3 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Streetlights before the end of their Service life is reached. The
analysis was done based on an end-of-life replacement, with no budget constraint.
111 | P A G E
5.16.4 LIFECYCLE MANAGEMENT STRATEGY
A single treatment is available for Streetlights, and it is a full replacement treatment.
Treatment Methods
Treatment
Description
Unit Cost
Inflation Rate
Cost Estimation
Year
Replacement
Replacement
100.00 %
0.0%
2020
5.16.5 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Streetlights, on the basis of a straight end-of-
life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
Network Optimization Results
Figure 124 shows the Streetlights overall network performance throughout the plan period:
112 | P A G E
Figure 124: Streetlights Network Performance
Over the next 10 years, the performance of the Streetlights Assets network declines from 77 to
29 at the end of plan.
Figure 125 shows the condition status distribution of the Streetlights network for each year of the
plan:
Figure 125: Streetlights annual Network Condition Status
As shown in this figure, at the beginning of the plan 96% is in excellent, and 4% in poor condition.
At the end of the 10-year plan 96% will be in fair, and 4% will be in poor condition
113 | P A G E
The scheduled capital expenditures are shown in Figure 126:
Figure 126: Streetlights Capital Expenditures
The backlog is cleared in the first year of the capital plan, and none of the streetlights are in the
deficit position throughout the plan.
5.17 WATER TREATMENT PLANT
The Town of Thessalon has a total of 12 Water Treatment Plant Assets.
5.17.1 CONDITION ASSESSMENT APPROACH
The state of the infrastructure for Water Treatment Plants Assets is determined through an age-
based condition analysis. The four (4) Condition States are defined as follows:
Figure 127: Treatment Plant (Water) Condition State Ranges
114 | P A G E
The age-based condition was calculated to the year 2020, and the current Network Condition
(%RSL) of the Water Treatment Plants Assets, weighed by replacement cost, is 81. This
represents an overall "Good" condition state.
The following summarizes the 2020 Network Condition States:
Figure 128: Treatment Plant (Water) Assets Network Condition
5.17.2 CRITICALITY AND RISK CRITERIA
Criticality
Based on the data attributes available, the Criticality settings were applied based on asset status.
Socio-economic factors were not included.
Criticality Settings
Asset Status
5
Abandoned
0
In-service
50
Removed
0
Unassumed
0
Risk
The Risk settings for Water Treatment Plant Assets are done as described in Section 4. Due to
the lack of data, there are no risk targets set in the planning.
Title
Condition
Condition State
Network Overall Condition
81
Good
115 | P A G E
5.17.3 LEVEL OF SERVICE REQUIREMENTS
The Town targets to replace Water Treatment Plant Assets before the end of their Service life is
reached. The analysis was done based on an end-of-life replacement, with no budget constraint.
5.17.4 LIFECYCLE MANAGEMENT STRATEGY
Three treatments are available for Water Treatment Plant Assets, and they are a full replacement,
rehabilitation and Maintenance treatments.
Treatment Methods
Treatment
Description
Unit Cost
Inflation
Rate
Cost
Estimation
Year
Replacement
Full Replacement
100.00 %
0.0%
2020
Rehabilitation
Rehabilitation
60.00 %
0.0%
2020
Maintenance
Routine Maintenance
5.00 %
0.0%
2020
5.17.5 OPTIMIZED CAPITAL PLANNING RESULTS
Optimization analysis has been performed for the Water Treatment Plants Assets, on the basis of
a straight end-of-life replacement.
The Optimization Analysis Settings are as follows:
Scenario
Name:
End of life replacement 10 years
Description:
Year:
2021
Optimization Settings
Optimization Mode
Standard
Planning Horizon (Years)
10
Include Priorities
Yes
Operational Efficiency
No
Estimate Current
Condition
True
Optimization Objective
Type
Min/Max
Weight (Sum = 1)
Performance
Attribute
Maximize Network
Performance
Max
1
NA
116 | P A G E
Network Optimization Results
Figure 129 shows the Water Treatment Plants Assets overall network performance throughout
the plan period:
Figure 129: Water Treatment Plant Network Performance
Over the next 10 years, the performance of the Water Treatment Plants Assets network declines
from 75 to 66 at the end of plan.
Figure 130 shows the condition status distribution of the Water Treatment Plant Assets at each
year of the plan:
Figure 130: Treatment Plant (Water) annual Network Condition Status
117 | P A G E
As shown in this figure, at the beginning of the plan 3% is in excellent, 88% in good, 7% in fair,
and 2% in poor condition. At the end of the 10-year plan 98% will be in good, and 2% in fair
condition.
The scheduled capital expenditures are shown in Figure 131:
Figure 131: Treatment Plant (Water) Capital Expenditures
The projected Routine Maintenance expenditures for treatment plant (water) are shown in Figure
132:
Figure 132: Treatment Plant (Water) Maintenance Expenditures
118 | P A G E
6 CAPITAL INVESTMENT PLAN
6.1 BACKGROUND
Managing the Municipality's capital assets requires an assessment of the long-term capital project
requirements and the establishment of the funding for high-priority projects in an efficient, timely
and cost-effective manner. As a result of this analysis, the Municipality will be able to more
effectively monitor, track and manage infrastructure assets, to ensure that policy makers obtain
sufficient funding in order to maintain, at a minimum, and potentially enhance future service levels.
Through capital planning, the Town of Thessalon can plan the future operating budget expenses
and reserve funds to manage the financial position over a long-term period. Capital planning also
provides the core information needed for implementing the Council's planning and fiscal policies.
An Asset Management Plan provides many benefits including:
- A systematic evaluation of all potential projects at the same time.
- The ability to stabilize the debt and consolidate projects to reduce borrowing costs.
- To serve as a public relations and economic development tool.
- A focus on preserving a municipal government's infrastructure while ensuring the efficient
use of public funds.
- An opportunity to foster cooperation among departments and the general public regarding
the Municipality's priorities.
6.2 OVERVIEW
The Capital Plan, an integral part of an Asset Management Plan, is a blueprint for planning a
community's capital expenditures and is one of the most important responsibilities of local
government officials. It coordinates community planning, financial capacity, and physical
development. It is a tool to assess the long-term capital project requirements of a Municipality and
to establish funding of high-priority projects in a timely and cost-effective fashion. The development
of a Capital Plan is intended to ensure that policy makers are responsible to residents and
businesses of the community with respect to the expenditure of public funds. It also promotes the
provision of continuous efficient services.
The Capital Plan provides a detailed understanding of anticipated investments into tangible capital
assets. These assets include basic facilities, services, and installations needed for the functioning
of the community. The development of a CIP that will ensure sound fiscal and capital planning
requires effective leadership and the involvement and cooperation of all municipal departments. A
complete, properly developed CIP has the following benefits:
- Facilitates coordination between capital needs and the operating budgets
- Enhances the community's credit rating, control of its tax rate, and avoids sudden changes
in its debt service requirements
- Identifies the most economical means of financing capital projects
- Increases opportunities for obtaining federal and provincial aid
- Relates public facilities to other public and private development and redevelopment
policies and plans
- Focuses attention on community objectives and fiscal capacity
- Keeps the public informed about future needs and projects
119 | P A G E
- Encourages careful project planning and design to avoid costly mistakes and help a
community reach desired goals
A municipal government must take care of two key responsibilities in managing its infrastructure:
- The first major responsibility is the maintenance and repair of existing infrastructure. Given
the high cost to replace linear assets and the fact that they are essential to providing
programs and services to the public, it is extremely important that regular maintenance
and periodic refurbishments be done to keep facilities and other assets in good working
condition for as long as possible.
- The second major responsibility that municipal governments have is to plan and construct
new community infrastructure. This involves several steps including deciding what
services are to be provided, identifying community needs, careful planning, determining
priority investments, figuring out how to finance projects and good management to ensure
projects are completed on time and on budget.
Although the Capital Plan is generally maintained separately from the operating budget, they do
work in unison since the debt charges on funds borrowed for capital expenditures become expense
items in the annual operating budget. In addition, operating and maintenance costs of capital
assets have an impact on the operating budget. In order to have a realistic, workable Capital Plan,
therefore, it is necessary to estimate the effect that debt service and operating costs will have on
future tax rates. In this way, non-essential capital expenditures will not be undertaken at the
expense of pending essential capital projects and the Municipality will thus be in a better position
to control future debt levels.
6.3 METHODOLOGY
The Town of Thessalon's Capital Plan addresses infrastructure deficiencies and future capital
expenditures. It includes existing service infrastructure not meeting engineering standards, the
cost of renovation or replacement of infrastructure which has exceeded its service life and which
as a consequence, is not meeting required service standards. Provision is required to renovate or
replace previously constructed infrastructure when it reaches the end of its service life. These costs
do not include on-going operational and regular maintenance (which typically represent the
greatest cost component of a facility's service life, for example). Unless informed by the Town,
requirements such as investments required to support industrial, commercial and residential
development in accordance with the growth projections required to serve the community and social
needs as well as supply the increasing population and to service to the boundaries of new
subdivisions have not been analyzed.
The Town's Capital Plan includes:
- Development of parameters for each asset class
- Development of rehabilitation and replacement unit costs
- Identifying the asset types to be included in the Capital Plan and determining and
confirming the components of each asset class
- Identification of services to be provided and the capital expenditures to be incurred
- Determination of secondary cost estimates of capital expenditures (consideration of cost
elements such as remoteness of the Town, land, architect/engineering fees, construction,
legal fees, taxes, etc.). The non-rebatable portion of HST at 1.76% has been applied, for
example
120 | P A G E
- Determination of the time periods over which the asset is to be constructed or acquired
and the costs prorated accordingly
The methodology used for building this Capital Plan was to:
1) Determine target Levels of Service for each Asset Type.
2) Identify the Town's current infrastructure deficit.
3) Determine the Town's future requirements to meet target Levels of Service.
4) Prepare a report detailing the capital required for each asset class based on current
rehabilitation and replacement unit costs
5) Establish the cost of maintaining existing infrastructure while addressing the infrastructure
deficit.
7 ASSET MANAGEMENT PLAN RESULTS
Like most other local governments in this province, Thessalon is dealing with aging infrastructure
and constrained budgets. Upon completion of the collection of all the pertinent data, the capital
plan was generated, broken down by asset class for the years 2021 to 2030. Inflation is
incorporated in the financial analysis. The results are as follows:
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Buildings
BallField Diamonds
Hydrants
Sidewalks
Lagoons
Stormlines
Vehicles
Equipment
WaterLines
Bridges(OSIM)
Roads
2020 Infrastructure Deficit
Figure 133: 2020 Infrastructure Deficit by Asset Category
The total Infrastructure deficit is $2.87 million, contributed mostly by Stormlines ($997 thousand),
Waterlines ($746 thousand), Vehicles ($342 thousand), and Equipment ($296 thousand).
121 | P A G E
The 10-year Capital Plan is summarized below, with the backlog included in the first year:
Figure 134: Summary of Capital Plan 2021-2030
Timeframe
Year
Capital
Projects
(Incl. HST)
Year 2021-2031
2021
$12,713,150
2022
$1,262,212
2023
$204,960
2024
$2,077,207
2025
$1,161,452
2026
$1,247,107
2027
$911,190
2028
$983,092
2029
$1,378,343
2030
$1,637,184
Total
$23,575,898
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Capital Plan 2021-2031
Buildings
BallField Diamonds
Hydrants
Sidewalks
Lagoons
Pumping Station (Sewer)
SewerLines
Stormlines
Vehicles
Streetlights
Equipment
Water Treatment Plant
WaterLines
Bridges(OSIM)
Roads
122 | P A G E
A detailed project-by-project breakdown of this Capital Plan and all proposed or consultant/study
recommended projects are included in the capital project list in Appendix A.
8 FINANCIAL PROJECTIONS
Our first steps in Financial Forecasting include compounding/inflating historical costs to Present
Value (2020), and then further compounding/inflating these numbers to meet future
requirements. Due to the volatility of inflationary factors, we were not able to determine a
comprehensive regional "Municipal Cost Index (MCI)" that was reliable enough to have
confidence in. We therefore used the CPI (Consumer Price Index) for the historic analysis. For
financial forecasting beyond 2020, we assumed an inflation rate of 3.5%. In recent years inflation
has been in the 2% range but has recently gone up to as much as 5%. We therefore believe that
a 3.5% inflation rate is a reasonable assumption for long range financial planning.
Our basic assumptions and calculations, included within this document, are key to the planning
process and serve as the base for the forecasting and predicting your future budgetary
requirements and needs.
Timeframe
Year
Buildings
Sidewalks
Lagoons
Pumping
Station
(Sewer)
SewerLines
StormLines
Vehicles
2021
$6,751,866
$2,556,630
$13,276
$0
$0
$1,188,358
$342,400
2022
$16,065
$0
$0
$0
$0
$0
$0
2023
$0
$0
$0
$0
$0
$0
$0
2024
$0
$0
$0
$0
$425,323
$122,659
$163,000
2025
$0
$0
$0
$0
$0
$0
$270,000
2026
$313,376
$0
$0
$0
$0
$0
$50,300
2027
$0
$0
$0
$0
$0
$0
$36,800
2028
$91,800
$0
$0
$0
$0
$0
$0
2029
$16,065
$0
$0
$0
$404,018
$0
$61,600
2030
$0
$0
$0
$0
$0
$0
$118,800
Year 2021-
2031
Timeframe
Year
StreetLights Equipment
WTP
WaterLines
Roads
Ball Field
Diamonds
Hydrants
Bridge
2021
$21,600
$296,000
$139,361
$745,683
$118,965
$17,000
$5,940
$504,059
2022
$0
$6,500
$208,413
$369,203
$109,884
$0
$0
$502,638
2023
$0
$0
$15,028
$0
$112,753
$0
$0
$62,811
2024
$0
$26,000
$15,028
$0
$117,508
$0
$77,220
$916,685
2025
$0
$16,200
$66,318
$0
$114,992
$0
$35,640
$503,531
2026
$0
$61,600
$15,847
$0
$120,326
$0
$0
$478,920
2027
$0
$6,804
$68,739
$0
$115,435
$0
$47,520
$458,620
2028
$0
$8,500
$66,909
$0
$111,192
$0
$11,880
$475,143
2029
$0
$166,204
$78,167
$0
$117,270
$86,400
$0
$71,246
2030
$0
$23,000
$6,007
$0
$117,444
$0
$0
$920,757
Year 2021-
2031
123 | P A G E
8.1 CONSUMER PRICE INDEX: OUR PERSPECTIVE
A price index measures the change in the
costs of purchasing a fixed basket of goods
and services in the current period, compared
to a base period, typically month-over-month
or year-over-year. The most widely applied
measure of inflation/price index is the
Consumer Price Index (CPI). Given its
pervasive
use
in
setting
cost-of-living
adjustments, it can be the appropriate metric
when calculating the rate of consumer
inflation at the national level. Major
components of the CPI include housing,
food, and transportation.
Extending the use of the CPI into discussions
about the appropriate level of tax and fee rate
increases becomes problematic, however,
because a government's actual experience
with inflation can differ greatly from the CPI.
This is because the largest expenditures for
governments are typically labor, materials,
and contractual services -- different factors
than those found in the CPI. Spending patterns that are different than those of other economic
sectors. A price index that does not reflect the municipal purchasing structure does not truly
reflect changes in the cost experience, and thus the purchasing power, of local governments. For
instance, the CPI reflects household spending patterns that focus on shelter (27.7 percent of the
Statistics Canada CPI basket), transportation (19.5 percent), food (15.5 percent), and recreation
(12.9 percent) -- none of which registers as leading purchase categories for local governments.
Canada GDP Growth Rate
Canada CPI
Canada GDP Deflator
124 | P A G E
There are two main parts to the MCI (Municipal Cost Index) calculation: the weightings of the
expenditure categories (showing the relative importance of items in the index), and the inflation
factor used for each component. The inflation factors for expected price changes are based on
economic data from two main sources, the Conference Board of Canada (CBOC) and Statistics
Canada. The key issue is to match an appropriate inflator from these external sources to the
types of expenditures in each budget category. MCI can be used in the following ways:
- To measure the increase in overall municipal expenditures attributed to inflation;
- To allow managers to more closely monitor the increase in spending by expenditure
category, thus making inflationary price increases or decreases more visible;
- To provide an indication of the historical, current, and future direction of prices relative
to municipal expenditures;
- To explain increased expenditures attributed to inflation when submitting annual
budgets.
As mentioned at the beginning of this section, we did not use MCI in the analysis due to the
volatility of the inflationary factors.
8.2 FINANCIAL STRATEGY ASSUMPTIONS
The following summarizes the key assumptions used in the preparation of the financial strategy
for major assets:
2.0% annual operating income increase (property taxation, base scenario)
5.0% annual increase in user fees and 3.5% increase in other revenues
3.5% annual operating expenditure increase
3.5% annual increase in capital replacement costs
2021 Canada Community-Building Fund (formerly Gas Tax Fund) of $159,988 for 2021
as per AMO allocation table. In 2021 there is a top-up amount included, but for the
financial forecasting only the base amounts as per AMO allocation table are included
for 2022 and 2023, and are extended beyond 2023 with no inflation.
Existing funding sources, as identified in the 2020 FIR or Financial Statements
No growth-related capital has been included in the analysis as the financial strategy
relates to the replacement of existing assets.
Capital replacement needs as identified in the previous section of this report.
It is important to keep in mind that assumptions may significantly change over time. In addition,
capital replacement cost estimates may vary from current projections. As such, there is a need
to monitor the financial strategy over time.
8.3 FUNDING REQUIREMENTS
In our efforts to create the best plan moving forward for the Municipality, ISI decided to create two
scenarios:
Capital Plan including infrastructure deficit (backlog)
Capital Plan (excluding infrastructure deficit)
125 | P A G E
The financial analysis separates the primarily tax funded assets from the user fee funded water
and wastewater assets, including all related revenues, capital and operating expenditures.
8.3.1
TAX FUNDED ASSETS
This section looks at all assets other than Water and Wastewater which have their own dedicated
User Fees. With the current annual Property Tax increase of 2.0%, a Capital Plan that will
eliminate the deficit over the next 10 years requires the Municipality to make an average annual
capital investment of $1,396,166 as compared to the current contribution of ($436,227), a
negative amount, resulting in an annual funding gap of $1.83 million. The Municipality is not
generating sufficient funds, not even to cover its operating expenses, and by our calculations
would have to increase the property tax annually by 12.3% from the 2.0% base rate to 14.3% per
year to cover its operating and projected capital expenditures during the 10-year plan period.
Figure 135: Tax Funded Capital Program Contributions (Required vs. Existing)
Without taking the deficit into consideration, by our calculations the average annual capital
requirement is $1,195,655. With a current contribution to the capital program of ($436,227), the
Municipality would have to set the annual property tax increases to 11.3% from the 2.0% base
rate to 13.3% per year.
8.3.2
WATER AND WASTEWATER ASSETS
This section looks at the Water and Wastewater assets which have their own dedicated User
Fees. With the current annual User Fee increase of 5.0%, a Capital Plan that will eliminate the
deficit over the next 10 years requires the Municipality to make an average annual capital
investment of $282,676 as compared to the current contribution of $290,326. The Municipality is
generating sufficient funds for its Water and Wastewater systems, and by our calculations would
be able to maintain the current annual user fee increases at 5.0% to meet its operating and
projected capital expenditures during the 10-year plan period.
($1,000,000)
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Average Required Contribution
Current Average Contribution
126 | P A G E
Figure 136: Water & Wastewater Capital Program Contributions (Required vs. Existing)
Without taking the deficit into consideration, by our calculations the average annual capital
requirement is $196,544. With a current contribution to the capital program of 290,326, the
Municipality could reduce the annual user fee increases by 1.9% from the 5.0% base rate to 3.1%
per year, less than the projected rate of inflation.
To reliably establish the funding requirements for water and wastewater, the Town should have a
50-year Water and Wastewater Rate Study done to make sure that enough reserves are available
when large renewal projects become due.
9 FINANCIAL STRATEGIES - THE INFRASTRUCTURE GAP
Financial sustainability requires that a Municipality ensures that there are sufficient resources to
support the delivery of services for which the Municipality bears responsibility. Given the need
and benefit for further infrastructure investment in order to protect, sustain, and maximize the
use of the Town of Thessalon's infrastructure assets, a number of options and strategies have
been considered. Through the optimization software, for example, strategies are recommended
which allow for an increased deficit on low volume rural Bridges, while directing capital to more
critical non-transportation services. Deficit elimination is outside the financial capability of the
Municipality, but much can be done to ensure non-priority items can be put on the backburner
while critical services remain adequately funded.
9.1 STRATEGY 1: SPECIAL LEVY
For the Town's general infrastructure, with the exception of water and wastewater systems, the
current contributions fall far short. Without any grants from the Federal or Provincial governments,
the contributions are not even sufficient to meet current operating expenditures, leave alone
funding the projected capital projects over the next 10 years. One option would be to implement
a special infrastructure levy on the property taxes as a surcharge. For example, by applying a
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Average Required Contribution
Current Average Contribution
127 | P A G E
special infrastructure levy of 5% annually, the Town will increase the funds available over the 10-
year period by approximately $7 million. This reflects the significant power of compounding:
The following table is provided for illustrated purposes to help explain the significant potential
through a modest levy increase to address the infrastructure gap:
5% Special Infrastructure Levy
2021
$ 81,181
2022
$ 174,540
2023
$ 281,496
2024
$ 403,623
2025
$ 542,662
2026
$ 700,538
2027
$ 879,382
2028
$ 1,081,551
2029
$ 1,309,648
2030
$ 1,566,551
Total
$ 7,021,171
Average increase
$ 702,117
9.2 STRATEGY 2: RETHINKING INFRASTRUCTURE SERVICES
Optimization
The potential exists to reduce infrastructure costs by determining the most cost-effective options
for all capital programs on new or rehabilitated infrastructure by pursuing life cycle cost analysis
(discussed earlier in the report). The DOT (Decision Optimization Technology)™ capital planning
software will be instrumental in assisting the Town in focusing on preventive maintenance, and
optimizing the allocation of the capital budget to determine highest return on investment.
Service Reduction
Recognizing the significance of the infrastructure deficit, the Municipality should consider a
services review with the objective of re-evaluating the priorities of the community and cost of
services provided with the objective of streamlining and potentially eliminating low priority
services.
Long Range Planning
Many municipalities develop rehabilitation and replacement programs on a system-wide program
basis versus annual project by project basis. This will allow for improved prioritization and
coordination of required work.
Deferred Replacement
The infrastructure deficit can be viewed as hypothetical in some cases, applying conservative
engineering lifecycle calculations that may be overly aggressive in comparison to the real-life
experience. For example, you might project the life of a building to be 50 years, but many fully
functional buildings are more than 100 years old. Due to the limited funds available, some
consideration should be given to where the replacement of some assets may be deferred.
128 | P A G E
9.3 STRATEGY 3: STRATEGIC USE OF DEBT
In some circumstances, it makes good sense to incur debt today rather than take the
consequence and cost of allowing assets to deteriorate to a point where replacement or
reconstruction would substantially increase cost to the community. The concepts involved with
changing the oil in our cars and fixing the roof of our house also apply to preventive maintenance
on road networks, for example. Keep a road in good shape with regular maintenance and you
will never face a full reconstruction.
Due to the backlog in the tax-supported programs, there is a need to examine the cost/benefit of
addressing these needs through the issuance of debt. Using debt strategically can provide
capital funding flexibility by allowing certain infrastructure to be built and used before sufficient
revenue has accumulated to offset the needed investment. Debt is frequently issued and
considered a standard practice in Municipalities for capital projects that are long term in nature
and that benefit future taxpayers, thereby spreading the costs across future years. As such, debt
promotes inter-generational equity in that infrastructure is paid for by those who use it. With
favourable interest rates and significant backlog, the Municipality may wish to consider the need
to issue debt to expedite capital replacement.
A debt management policy improves the quality of decisions, identifies policy goals and
demonstrates a commitment to long-term financial planning, including a multi-year plan.
Adherence to a debt management plan signals to rating agencies and capital markets that the
Municipality is well managed and is well positioned to meet its obligations in a timely manner.
The Province regulates the amount of debt that Municipalities issue by setting an annual
repayment limit for each Municipality (25% of a Municipality's own source revenues). Based on
our experience, Municipalities typically establish thresholds below the Provincial limit to take into
consideration taxpayer affordability and to ensure flexibility. The Town of Thessalon has a 2020
Annual Debt Repayment limit of $663,572, of which $197,240 is utilized with existing debt.
In addition to a debt guideline, monitoring also becomes important when considering the idea of
the increased use of debt as a funding source to ensure that it is being used in a fiscally
responsible manner. Government Finance Officers Association recommends that Municipalities
adopt policies that specify appropriate uses for debt.
The following strategies are recommended to determine the most appropriate time to issue debt
Debt will be proportionate to the Town's tax base and will not put an excessive burden
on operating expenditures.
Outstanding and planned debt levels will not exceed an amount that can be supported
by the existing and projected tax revenue base. Debt policies will focus on:
o projected debt requirement
o limits and benchmarks
o term and structure of debt
o use of reserves to offset debt issuance
Long-term debt for the replacement and refurbishment of existing capital assets will be
reduced and a planned process will be developed whereby an annual contribution will
be made to meet lifecycle needs of all assets.
The following policies are recommended to manage debt within the Town:
Tax Debt Charges as a percentage of Tax Own Source Revenues will not exceed 10%.
Long-term debt financing will be restricted to specific project types:
o Increased/new services to residents for new initiatives
129 | P A G E
o New, non-recurring infrastructure requirements
o Projects which are supported by a business plan that shows revenues will cover
capital and interest costs
o Projects where the cost of deferring expenditures exceeds debt servicing costs
o Project costs not recovered from Development Charges
o Projects tied to third party matching funding
(Note: These restrictions may have to be phased in to meet short-term budget challenges.)
The length of the term of debt will not exceed the useful life of the underlying asset.
The Town will monitor and report on all forms of debt annually.
9.4 STRATEGY 4: USE OF GRANTS
It is well established that the condition of Canada's municipal infrastructure is one of the keys to
underpinning, maintaining and enhancing Canada's economic productivity and competitiveness.
It is therefore clearly in the national and provincial interests for the federal and provincial
government to institute permanent and sustainable infrastructure funding. Along with the
strategic use of debt, the Municipality can also apply for the grants available from the Provincial
and Federal governments. Some significant components of the infrastructure deficit can be dealt
with through close monitoring of grant programs and a careful expression of interest to access
these funds.
FEDERAL GOVERNMENT INVESTING IN CANADA
Across the country, people and communities are in need. The middle class and those working
hard to join it need the opportunities that come with good, well-paying jobs, and communities need
help to maintain, improve and expand the things that make Canada's Towns and cities great
places to live.
Investing in Canada's infrastructure builds strong communities and helps to strengthen and grow
the middle class, setting the stage for sustained economic growth in the future. In Budget 2016,
the government made a down payment on future growth by making immediate investments of
$11.9 billion in public transit, green infrastructure and social infrastructure. This 2016 Fall
Economic Statement strengthens the government's commitment to long-term growth for the
middle class. It proposes an additional investment of $81 billion over 11 years, starting in 2017-
18, in public transit, green infrastructure, social infrastructure, transportation that supports trade,
Canada's rural and northern communities, and smart cities. The government will also establish a
new Canada Infrastructure Bank to provide innovative financing for infrastructure projects, and
help more projects get built in Canada, where public capital can be leveraged.
130 | P A G E
Figure 137: The Province's 12-year infrastructure plan by sector (%)
Taking into account existing infrastructure programs, new investments made in Budget 2016 and
the additional investments contained in this Fall Economic Statement, the government will make
a total investment in Canada's communities of more than $180 billion.
This commitment is unprecedented in Canadian history.
ONTARIO PROVINCIAL GOVERNMENT
As announced in the 2016 Ontario Economic Outlook and Fiscal Review, the Province of
Ontario plans to invest more than $160 billion over 12 years, starting in 2014-15.
131 | P A G E
The infrastructure plan includes investments in Moving Ontario Forward for public transit,
highways and other priority infrastructure projects. The infrastructure expenditures table below
outlines all planned investments over 12 years, starting in 2014-15, and shows they touch all
key sectors.
Figure 138: Infrastructure Expenditures Table
(Source: 2016 Ontario Economic Outlook and Fiscal Review)
10 RECOMMENDATIONS
10.1 SOTI RECOMMENDATIONS
The SOTI/Capital Plan identifies a number of asset-specific recommendations. However, there
are six recurring recommendations that should be addressed in future strategic asset
management initiatives:
1. Develop, through more detailed analysis, a plan for allocating the additional funds to the
operating and/or capital budgets, as required, in order to successfully develop,
implement, and maintain an approved asset management plan;
2. Develop a policy and implement a strategy to reach long-term sustainable funding for
each of the assets covered in this SOTI Report;
3. Implement a comprehensive budget structure along service delivery lines, so that
service managers can adequately know what the true total cost of their service is
(including asset management, operations, capital, and borrowing costs).
4. Review the selection and use of rehabilitation strategies on life-cycle costing and on a
return-on-investment (ROI) basis.
5. Review operating and maintenance practices, balancing least life-cycle cost against
level of service and risk exposure, on a business-case basis using InfraGuide Best
Practices and other industry sources;
6. Provide regular updates to the SOTI Report Card and Analysis
132 | P A G E
10.2 CAPITAL PLAN RECOMMENDATIONS
1. Asset condition assessment of capital assets should be considered wherever feasible.
Age-based condition assessment has the least level of confidence for building a capital
plan.
2. The Town needs to build a definitive policy with respect to it's infrastructure deficit.
3. The Town of Thessalon should release its infrastructure policy, strategy and intention
as it pertains to the infrastructure deficit, including communications, to the general
public in order to gain stakeholder support for tough decisions.
4. The Town should proactively define organizational responsibilities to maintain the asset
inventory including proposed and actual project cost information, updating the data as
assets are acquired or betterments are added to existing assets and projects are
started and completed. In this manner, the accuracy of future Capital Plans will
increase over time.
5. The Town should consider establishing as policy the following guiding principles, that
it be:
a) Customer Focused: To have clearly defined Levels of Service and applying asset
management practices to maintain the confidence of residents in how the Town
of Thessalon assets are managed.
b) Forward Looking: To make the appropriate decisions and provisions to better
enable its assets to meet future challenges, including changing demographics and
populations, customer expectations, legislative requirements, technological and
environmental factors.
c) Integrated System Focused: Evaluate an asset in terms of its role and value
within the context of the greater system, as opposed to examining individual
assets in isolation
d) Risk-based: To manage the asset risk associated with attaining the agreed levels
of service by focusing resources, expenditures, and priorities based upon risk
assessments and the corresponding cost/benefit recognizing that public safety is
the priority.
e) Value-Based/Affordable: To choose practices, interventions, and operations that
aim at reducing the life cycle cost of asset ownership, while satisfying agreed
levels of service. Decisions are based on balancing service levels, risks, and
costs.
f) Holistic: To take a comprehensive approach that looks at the "big picture" and
considers the combined impact of managing all aspects of the asset life cycle.
g) Sustainable: The Town will make the appropriate decisions and provisions to
better enable its' assets to meet future challenges, including population growth,
people expectations, legislative requirements, technological and environmental
factors, without compromising the ability of future generations to meet their own
needs.
h) Optimal: The Town will make informed decisions between competing factors such
as service delivery, asset quality & value, cost, and risk by determining which
option will deliver the optimal lifecycle value.
6. To meet the goals and objectives of this policy, senior management could consider:
133 | P A G E
a) The creation and maintenance of a Comprehensive Asset Management (CAM)
governance structure to lead the development of AM tools and practices and to
oversee their application across the organization.
b) Adopt a Comprehensive Asset Management Strategy (AMS) to:
- Establish, document and continually adhere to industry recognized asset
management protocols;
- Develop asset management knowledge and competencies aligned with
recognized competency frameworks;
- Entrench lifecycle costing when evaluating competing asset investment needs
across the Town assets;
- Monitor the performance of the assets and track the effectiveness of AM
practices with a view to continuous improvement;
10.3 LEVEL OF SERVICE RECOMMENDATIONS
1. We recommend that the Town incorporate a Level of Service analysis prior to resolving
the infrastructure deficit in order to maximize the impact of their capital investments with
the objective to:
- Refine levels of service that balance customer expectations with risk,
affordability and timing constraints as it pertains to the Town's unique
requirements;
- Adopt risk-based decision-making processes that consider the likelihood of
asset failure and the consequence of a failure with regards to impacts on safety
and levels of service;
2. To assist in better establishing Levels of Service, the Town should consider collecting
technical performance measures required to provide information on:
- the types of failure
- the number of customers affected
- the duration of the failure
- the severity of the failure
3. To support decision-making for effective management of the assets, the Town should
consider technical performance measurement and monitoring, undertaken by the Town
such as:
- Assessing the effectiveness of the operational, maintenance and capital works
program
- Review and refinement of maintenance and rehabilitation strategies and
standards
- Assistance in strategic decision-making through definition of remaining life,
based on the measure being assessed
10.4 FINANCIAL STRATEGY RECOMMENDATIONS
A financial strategy to support the asset management plan is a dynamic document that should be
updated and re-evaluated on an ongoing basis. The Town should give due consideration to the
following points:
1. The Town has insufficient funds from existing sources to proactively manage its
infrastructure and will need to prioritize its requirements to maximizing the impact of
existing financial resources.
134 | P A G E
2. The Town has a growing infrastructure deficit which is serious considering its population
and tax base. A special infrastructure levy will help the Municipality to reduce the gap
over time and should be taken into consideration.
3. In the event that the Town implements an infrastructure levy, the excess funds should
be transferred into a reserve so that the Town has some flexibility to prioritize and
sustain future infrastructure and service level requirements and have the ability to
match funds with grant programs.
4. The Town needs to be proactive in reviewing and capitalizing on the upcoming
Provincial and Federal programs, as the Town will need financial assistance to close
its infrastructure deficit. It should seek government grants to be able to undertake the
capital projects outlined in this Asset Management Plan.
5. The Town needs to be proactive in reviewing funding options including Infrastructure
Ontario Lending Policies, Private Public Partnerships, user fees and other funding
options to have an understanding of financing options.
6. The Town needs to embrace the principles of Asset Management to formulate
assumptions, projections, and strategies going forward. The Plan should be modified
and updated on an ongoing basis.
7. The Town should track and build awareness of the results of its projections on current
operating and capital spending and funding levels with the objective of fine-tuning the
forecasting process.
8. The Town should continue the analysis and examination of key financial goals and
strategies that guide future priorities and expenditures.
11 CONCLUSION
The vast majority of smaller Canadian municipalities do not have a sufficient tax base to gain
control over their infrastructure deficit. Without corrective action over the next 10 years, these
communities will see a deterioration in the level of service being offered to its residents. Increased
taxes and/or deteriorating levels of services often trigger a migration to larger municipalities,
further undermining the smaller community's tax base. Although Provincial and Federal
governments are now committing to substantially increased investment in infrastructure, much of
it ends up in major urban centers where the greatest number of citizens are served.
At Thessalon, ISI worked with Town Superintendent Ken Seabrook, Deputy Clerk-Treasurer
Debbie Rydall and Asset Manager Julia Kluding, who were responsive in providing ISI with
information from the Town. The information we received was, by in large, accurate and well
organized. The overall state of the linear infrastructure at the Municipality is in line with other,
similarly sized municipalities in this Province. As highlighted in the Report Card, the current state
of the linear infrastructure, based on available condition rating and age analysis, presents a
picture of the Town's linear assets to require substantial work. The Town should continue to be
proactive
in
their
strategies,
to
extend
asset
useful
life
and
avoid
major
rehabilitation/reconstruction or replacement costs.
It is highly recommended that the Town of Thessalon embrace the principles of Asset
Management. Managing existing infrastructure, doing the right thing, at the right time, involves
knowing and implementing the most cost-effective maintenance, repair, rehabilitation or
replacement activity at the right time throughout the entire lifecycle of the asset. Beyond cost
savings, assets need to be viewed in terms of their ability to enhance quality, function, capacity
and safety of the service being provided.
135 | P A G E
The process of implementing Asset Management is rife with challenge. It requires clear direction
from Council, significant cross-departmental cooperation, allocating of time, energy, and resource
to assume new responsibilities, consultation with the community, and working with constrained
budgets to balance priorities. Because infrastructure management deals with assets that have
long lifespans, it may take years before a substantial financial return on investment (ROI)
becomes apparent. Still, managing existing capital-intensive public-sector infrastructure assets
could provide very significant benefits (i.e. 20 - 40% reductions in life cycle costs).
Through Asset Management, smaller municipalities have the best opportunity to build a strategy
for self-sufficiency. A municipal council's first order of business is to capitalize on the significant
cost savings and lifecycle gain associated with preventive maintenance. A second initiative would
be to use advanced analytical tools to attain the highest possible return, both from a financial and
socio-economic perspective, on capital expenditures.
Finally, the Town will likely be faced with difficult decisions over the next years, and the
infrastructure deficit will continue to widen without corrective action. Only by stakeholder buy-in
on a practical and implementable capital plan can communities stem their infrastructure deficit,
maintain a quality of life and plot a course for the future with confidence. The Council should put
together a public communication program to engage the community in discussing the true cost of
services and the assets required to provide those services. Community and stakeholder buy-in
for an implementable asset management plan and service levels in line with public expectations
and willingness to pay are critical to the success of the program.
136 | P A G E
APPENDIX A - DETAILED LIST OF CAPITAL PROJECTS
A detailed list of capital project for each asset type is provided under a separate cover.