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FINAL June 2024
This
ASSET
MANAGEMENT
PLAN
TOWNSHIP OF WARWICK
2
This Asset Management Plan was prepared by Infralevel Inc. All Rights Reserved.
2024 Township of Warwick.
3
Table of Contents
1.
Acknowledgements .............................................................................................................................. 5
2.
ExecuƟve Summary .............................................................................................................................. 6
3.
IntroducƟon ........................................................................................................................................ 11
3.1
Purpose ....................................................................................................................................... 11
3.2
ObjecƟves ................................................................................................................................... 11
3.3
Regulatory Environment ............................................................................................................ 12
3.4
Line of Sight ................................................................................................................................ 13
3.5
Strategic Alignment .................................................................................................................... 13
4.
Scope and Methodology .................................................................................................................... 17
4.1
Scope of Work for Compliance ................................................................................................... 17
4.2
Assets included in the Scope of Work ........................................................................................ 17
4.3
Methodology .............................................................................................................................. 18
5.
State of Local Infrastructure ............................................................................................................... 20
5.1
Asset Summary ........................................................................................................................... 20
5.2
Asset Inventory, Age and Replacement Cost ............................................................................. 20
5.3
Asset CondiƟon .......................................................................................................................... 27
6.
Levels of Service ................................................................................................................................. 40
6.1
Current Levels of Service ............................................................................................................ 40
6.2
Proposed Levels of Service ......................................................................................................... 40
6.3
Levels of Service Tables .............................................................................................................. 42
7.
Risk Management Strategy ................................................................................................................ 52
7.1
Emerging Risks and Challenges .................................................................................................. 52
7.2
Climate Change ........................................................................................................................... 54
7.3
Risk Management Process ......................................................................................................... 55
7.4
Risk Assessment ......................................................................................................................... 56
7.5
Current Risks ............................................................................................................................... 60
7.6
Risk Treatment ............................................................................................................................ 61
7.7
Risk-Based PrioriƟzaƟon ............................................................................................................ 61
8.
Lifecycle Management Strategy ......................................................................................................... 64
8.1
Lifecycle AcƟvity Categories ....................................................................................................... 64
8.2
Lifecycle AcƟvity OpƟons and Risks ........................................................................................... 64
4
8.3
Asset Class Lifecycle Strategies - OperaƟng Budget ................................................................. 66
8.4
Asset Class Lifecycle Strategies - Capital Budget ...................................................................... 67
9.
Growth Impacts .................................................................................................................................. 82
9.1
Impact of Growth on Lifecycle AcƟviƟes ................................................................................... 82
9.2
Impact of Growth on the Financial Strategy .............................................................................. 83
9.3
Growth Management Plan ......................................................................................................... 84
10. Financial Strategy ............................................................................................................................... 86
10.1
Tax-Supported Assets ................................................................................................................. 86
10.2
Rate-Supported Assets ............................................................................................................... 91
11. Advancing Asset Management Maturity ........................................................................................... 94
11.1
Strategies .................................................................................................................................... 94
11.2
IniƟaƟves .................................................................................................................................... 95
Appendix A .............................................................................................................................................. 96
Appendix B .............................................................................................................................................. 99
Appendix C ............................................................................................................................................ 116
Appendix D ............................................................................................................................................ 118
5
1. Acknowledgements
The development of this Asset Management Plan was a significant corporate-wide
initiative involving staff across the organization. Infralevel would like to acknowledge the
efforts of the Township of Warwick staff in the various service areas who participated in
facility tours, information gathering and preparation of the asset management plan,
providing their time, expertise and support in developing this plan.
This Asset Management Plan reflects a collaborative effort and a shared commitment to
building resilient infrastructure and fostering sustainable growth in the Township of
Warwick.
We acknowledge that the Township of Warwick is located on the traditional lands of the
Anishnabe as well as the many Indigenous nations in Ontario whose footsteps have
marked them for centuries. We also wish to acknowledge that we are situated on Treaty
29 and Treaty 25 territories signed by Chippewa Chiefs and offer our respect and gratitude
for these lands.
Warwick Township Council and staff will strive to educate residents about our history
through programming and events. We pledge to our First Nations neighbours that we will
not tolerate systemic racism and commit to advancing reconciliation by building trusting
relationships and fostering ideas for future consultation and partnership opportunities.
6
2. ExecuƟve Summary
This asset management plan serves as a strategic, tactical and financial document
ensuring the activities, resources and timelines required for municipal infrastructure are
met, while balancing costs, opportunities and risks against the desired performance of
assets. Infrastructure plays an essential role in supporting the Township's mission:
The Township of Warwick fosters responsible Þnancial and environmental
stewardship as the foundation of a vibrant community, meeting the needs of
residents of all ages and abilities today and into the future.
The asset management plan is integrated with the Township's Strategic Plan (2023-2026)
to support the desired service outcomes and the Township's vision:
The Township of Warwick is an empowering community that provides
residents with the services and amenities they need, while providing
abundant opportunities for growth.
The Township's Strategic Asset Management Policy includes six guiding principles:
-
Service delivery
-
Long-term sustainability and resilience
-
Holistic 'big picture' approach
-
Fiscal responsibility and asset management decision-making
-
Innovation and continual improvement
This asset management plan has been developed to support these principles and
address the July 1, 2024 and July 1, 2025 requirements of O. Reg. 588/17. It utilizes the
best information available to the Township at this time and advances asset management
maturity through a diligent process.
The plan includes all Township assets. As detailed in the following table, the Township's
infrastructure has a replacement value of approximately $317.2 Million and the overall
condition is Good.
Mission
Vision
7
Asset Class
Replacement Cost
(2024$)
Condition
Roads
$141,079,620
Good
Bridges and culverts
$27,175,000
Good
Water
$46,747,035
Good
Wastewater
$24,441,576
Fair
Stormwater
$15,961,323
Fair
Buildings
$43,496,233
Good
Land improvements
$5,265,606
Poor
Fleet
$10,776,720
Poor
Machinery & Equipment
$2,252,230
Fair
Total:
$317,195,343
Good Overall
Level of service is a key component of asset management decision-making that describes
the planned outcome from the use of the Township's assets, from a customer and
technical performance perspective. The Township's current and proposed level of service
statements describe the asset outputs that the Township intends to deliver to the
community and can be represented in terms of attributes such as availability, cost-
effectiveness, reliability, responsiveness, safety, suitability and sustainability.
The Township's lifecycle management strategy details the use of a combination of
lifecycle activities that maintain these levels of service while planning for growth and
striving to optimize costs based on defined risk. The following chart summarizes the total
operating and capital lifecycle expenditure forecast for the next ten years, separated
between tax-supported expenditures and rate-supported expenditures.
8
A detailed risk assessment process has been completed that identifies the likelihood and
consequence of risk and provides mitigation recommendations to ensure the effective
management, resilience, and sustainability of public assets. The risk assessment allows
for the strategic prioritization of lifecycle activities. The assets identified to be at the
highest risk level are typically those that deliver essential services and are beyond their
expected service life. The condition of these assets should be assessed and monitored,
with capital projects prioritized as required.
A financing strategy has been prepared to outline the recommended use of various
funding sources to finance the required lifecycle activities that achieve the current and
proposed levels of service recommendations. The strategy is separated for tax-supported
assets and rate-supported assets. The following table shows the funding gap for tax-
supported assets and the funding surplus for rate-supported assets.
10-Year Funding Analysis
Tax-Supported Assets
Funding Need
$33,223,535
Funding Available
$29,600,000
Funding Gap
$3,623,535
Rate-Supported Assets
Funding Need
$4,839,000
Funding Available
$7,507,000
Funding Surplus
$2,668,000
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Operating and Capital Expenditure Forecast
Tax Supported Capital
Rate Supported Capital
Tax Supported Operating
Rate Supported Operating
9
The funding gap identified for tax-supported assets is based on current levels of own-
source revenues. Projected future increases of own-source funding are expected to be
sufficient to fully address the identified funding gap.
For rate-supported assets, it is recommended that the annual funding surplus identified
over the 10-year evaluation period be contributed to water/wastewater reserves. It is also
recommended that the 5% annual rate increase for both the water and wastewater
systems be continued to prepare for the increased long-term lifecycle cost projections.
10
Purpose
Objectives
Regulatory Environment
Line of Sight
Strategic Alignment
INTRODUCTION
11
3. IntroducƟon
3.1 Purpose
Municipal asset management planning is the process of making the best possible
decisions regarding the building, operating, maintaining, renewing, replacing and
disposing of public infrastructure assets. The purpose is to maximize benefits, manage
risk, and provide satisfactory levels of service to residents in a sustainable manner.
Asset management requires a thorough understanding of the characteristics and
condition of infrastructure assets, as well as the service levels expected from them. It also
involves setting strategic priorities to optimize decision making about when and how to
proceed with investments. Finally, it requires the development of a financial plan, which
is the most critical step in putting the plan into action.
Because it takes a long-term perspective, good asset management can maximize the
benefits provided by infrastructure. It also affords the opportunity to achieve cost savings
by detecting deterioration early on and taking action to rehabilitate or renew assets.
3.2 ObjecƟves
There are several objectives that this Asset Management Plan will fulfill to enable the
Township to achieve the full extent of benefits derived from a diligent infrastructure
planning process. The key objectives are to:
Achieve regulatory compliance: A comprehensive asset management plan
provides compliance with Ontario Regulation 588/17, mitigating the risk of legal
and regulatory issues, and ensuring eligibility for ongoing Provincial funding.
Engage with stakeholders: Transparency and accountability are achieved by
engaging with stakeholders and seeking their input to ensure that the asset
management planning process contributes to enhancing residents' quality of life.
Maintain a long-term focus: Financial sustainability over the long term is of
primary importance. Significant contributing factors will be weighed, including the
implications of climate change, population and employment growth, and future
levels of service.
Utilize data-driven decision-making: The asset management plan relies on data
collection and analysis, enabling informed decision-making. Data gained through
supporting projects, such as Building Condition Assessments, informs this process
and enhances the efficiency of asset management.
12
Manage the municipality's risk: The asset management plan's risk assessment
and prioritization process enable the Township to identify vulnerabilities and take
proactive measures to enhance the resilience of its infrastructure.
Foster continuous improvement: Preparation of an asset management plan
contributes to a culture of continuous improvement, ensuring that asset
management
practices
evolve
with
changing
circumstances,
emerging
technologies, and lessons learned from past experiences.
3.3 Regulatory Environment
In January 2018, the province of Ontario enacted O.Reg. 588/17: Asset Management
Planning for Municipal Infrastructure, which was created under the 2015 Federal
Infrastructure for Jobs and Prosperity Act. The regulation was created because the
province recognized that many Ontario municipalities were facing similar issues with
existing infrastructure deteriorating faster than it was being repaired or replaced. The
goals of the regulation were to standardize asset management plans, spread best
practices among municipalities, and improve infrastructure planning in municipalities.
O. Reg. 588/17 prescribed timelines and scope requirements that municipalities were to
adhere to for the preparation of a Strategic Asset Management Policy (SAMP), and Asset
Management Plans (AMPs). The regulation separated the AMP requirements into core
and non-core assets and current and proposed levels of service.
Core assets are those supporting the delivery of the following services: roads, bridges &
culverts, water, wastewater, and stormwater. Non-core assets are any other assets
supporting all other municipal services.
Levels of service are the means of defining the outcomes and outputs that customers can
expect from asset-based activities, measured through a combination of customer values,
customer performance measures and technical performance measures.
The timelines and requirements of O. Reg. 588/17 are summarized in the following table.
13
Schedule
Regulatory Requirement
Warwick Status
July 1, 2019
Completion of an Asset Management Policy
that outlines asset management principles,
commitments to best practices and
continuous improvement
Completed in January
2019
July 1, 2022
Completion of an Asset Management Plan for
core assets, including current levels of
service
Completed in 2020
July 1, 2024
Completion of an Asset Management Plan for
all assets, including current levels of service
This document
provides compliance
July 1, 2025
Completion of an Asset Management Plan for
all assets, including current and proposed
levels of service, assessment of achievability
and affordability, and preparation of a
financial strategy
This document
provides compliance
3.4 Line of Sight
The concept of Line of Sight in municipal asset management is crucial for aligning the
organization's strategic goals with the value expected from the assets. It ensures a clear
connection between all activities performed within an organization and the achievement
of the organization's overall objectives.
In the context of municipal infrastructure, having a line of sight from asset information to
organizational objectives enables an organization to be agile if circumstances, such as
extreme weather events and the consequences of climate change, require organizational
objectives to change.
Line of sight in asset management achieves two important things:
1. People doing the physical work on the infrastructure can see how the work they
do supports the strategic goals of the Township.
2. People setting the strategic goals of the Township can see how their decisions
change how infrastructure is managed. Asset Management at the Township
enables this line of sight, connecting the service outcomes down to the assets
that support them.
3.5 Strategic Alignment
The Township's strategic goals and objectives are shaped by internal drivers such as
Council-approved strategies and plans, as well as external forces such as resident
expectations, and legislative and regulatory requirements. Asset Management supports
14
the strategic objectives of Council, the delivery of services to the public, and the
sustainability of the Township.
Numerous relevant planning and governance documents have been prepared by and for
the Township. The following documents have been reviewed and considered for
alignment purposes in the preparation of this Asset Management Plan.
Document Title
Date
Capital and Operating Budget
2022, 2023 & 2024
Water/Sewer Rates By-Law
Effective 2024
20-year Capital Expenditure Forecast
2023
Reserve Balance Summary
2023
Watford Wastewater Lagoons Operations Report - Fourth
Quarter 2023
2023
Township of Warwick Distribution System Operations
Report - Fourth Quarter 2023
2023
Strategic Plan and Balanced Scorecard
2023
Development Charges Background Study
2022
Official Plan
2010 (updated 2021)
Watford Urban Area Sanitary Sewer Study
2021
Parks, Recreation, Tourism and Culture Master Plan
2021
10-Year Water Master Plan - Fire Flow Data
2021
Strategic Asset Management Policy
2019
Water and Wastewater Rate Study
2019
Water Ontario Regulation 453/07 Financial Plan
2019
Fire Master Plan
2017
Infralevel reviewed a number of relevant regulations, industry standards and guiding
documents in order to adhere to best practices and ensure regulatory compliance. These
documents are listed in the following table.
15
Document Title
Date
MFOA Asset Management Framework
2021
O. Reg. 588/17 (amended by O. Reg. 193/21)
2017 / 2021
Building Together: Guide for Municipal Asset Management
Plans
2016
Infrastructure for Jobs and Prosperity Act
2015
ISO 55000 Series
2014
16
Scope of Work for Compliance
Assets included in the Scope of Work
Methodology
SCOPE AND
METHODOLOGY
17
4. Scope and Methodology
4.1 Scope of Work for Compliance
The scope of work for this asset management plan has been developed to address the
July 1, 2024 and July 1, 2025 requirements of O. Reg. 588/17. It utilizes the best
information available to the Township at this time and advances asset management
maturity through a diligent process. The regulatory requirements of O. Reg. 588/17 for
2024 and 2025 are detailed in the following table.
2024 Requirements
2025 Requirements
Asset management plan for all assets with
the following scope:
Current levels of service
State of local infrastructure
Lifecycle activities and costs
Growth impacts
Asset management plan for all assets with the
following additional scope:
Proposed levels of service
Updated state of local infrastructure
Lifecycle management strategy
Financial strategy to manage funding
gaps
Impact of growth on lifecycle and
financial strategies
4.2 Assets included in the Scope of Work
The Township of Warwick is a lower tier municipality located within the County of Lambton.
Resident services are provided by both levels of government, with asset ownership and
responsibility split accordingly. In accordance with the requirements of O.Reg. 588/17,
the scope of this document includes all assets owned by the Township. Ownership and
responsibility for each asset class are summarized in the following table.
Asset Class
Asset Ownership & Responsibility
Township of Warwick
County of Lambton
Roads
Local roads
County roads
Bridges and Culverts
Local road bridges and
culverts
County road bridges and
culverts
Water
Drinking water supplied by Lambton Area Water Supply
System (LAWSS)
Wastewater
All wastewater assets
None
Stormwater
Point assets and local road
storm sewers
County road storm sewers
18
Buildings
Township buildings
County buildings, including
waste management facilities
Land Improvements
Township land
improvements
County land improvements
Fleet
Township fleet
County fleet
Machinery & Equipment
Township machinery and
equipment
County machinery and
equipment
As noted above, drinking water is provided to the Township by the Lambton Area Water
Supply System (LAWSS). LAWSS is jointly owned by the Township of Warwick and five
other local municipalities. In 2012, LAWSS entered a 20-year contract with Ontario Clean
Water Agency to operate and maintain the facilities owned by LAWSS.
Of note, Highway 402 is the responsibility of the Province with the exception of fire
services which are provided by the Township.
4.3 Methodology
The objectives of the asset management plan are met through the completion of the main
report sections detailed in the following table.
Report Section
Content
State of Local Infrastructure
What assets the Township has, what condition they
are in, and what they are worth.
Levels of Service
How the Township's assets should perform to meet
the needs of residents and other stakeholders.
Proposed Levels of Service
Asset performance objectives that are the future
target state, in 10 years time.
Risk Management Strategy
How the Township minimizes risk exposure by
focusing the limited available funding on critical
assets that have a high level of consequence.
Lifecycle Management
Strategy
A set of actions that should be undertaken on the
right assets at the right time to ensure they continue
to meet their levels of service over the long term.
Growth Impacts
How changes in population and economic activity
impact lifecycle management and financial
strategies.
Financial Strategy
A forecast for the spending required to support the
Lifecycle Management Strategy, and a plan to fund
and prioritize the work.
Advancing Asset Management
Maturity
Recommendations for actions that can be
undertaken to improve the maturity of asset
management practices in the Township.
19
Asset Summary
Asset Inventory, Age and Replacement Cost
Asset Condition
STATE OF LOCAL
INFRASTRUCTURE
20
5. State of Local Infrastructure
O. Reg. 588/17 requires Asset Management Plans to include the following information for
each asset category:
-
Summary of the assets
-
Replacement cost of the assets
-
Average age of the assets
-
Information available on the condition of assets
-
The municipality's approach to condition assessments
This information is detailed in the following report sections.
5.1 Asset Summary
As required by O. Reg. 588/17, this asset management plan includes all Township assets.
The assets are categorized as follows.
Roads
Buildings
Bridges and culverts
Land improvements
Water
Fleet
Wastewater
Machinery & Equipment
Stormwater
Some of the Township's green infrastructure assets are included within these asset
categories:
Land Improvements: this category includes parks and features such as trees,
natural drainage features and parkland.
Buildings: this category includes site features such as natural drainage features,
engineered drainage and trees.
Over time, the Township will continue to add green infrastructure assets to the asset
register and incorporate these assets into lifecycle management planning, documented
levels of service and the risk management strategy.
5.2 Asset Inventory, Age and Replacement Cost
Asset inventory, age and replacement cost data was sourced from the Township's asset
register or from condition assessment reports where available. Average ages have been
calculated based on weighting of replacement costs.
21
Asset replacement values represent the cost the Township would have to pay to acquire
an equivalent new asset with the same service potential at the time of reporting.
Replacement costs are derived from user-defined costs and, as appropriate, the
application of historical cost inflation. The non-residential building construction price
index in metropolitan areas of Canada has been utilized. Over the past few years, the
inflation rate has been significant and has resulted in a large increase in the value of the
Township's assets since the date of the previous asset management plan.
5.2.1 Roads
The Township's road network consists of gravel roads and paved roads, as well as related
right-of-way infrastructure including road signs, guardrails, sidewalks, culverts and
streetlights.
Asset
Quantity
Average Age
(years)
Replacement
Cost
Gravel roads
131.8 km
66.5
$19,886,589
Paved roads
Surface
87.6 km
23.4
$97,936,592
Base
87.6 km
26.7
$18,240963
Road signs and
guardrails
5
12.0
$152,912
Sidewalks
12.532 km
29.0
$3,670,866
Culverts
5
4.0
$16,446
Streetlights
434
19.8
$1,175,252
Total:
$141,079,620
5.2.2 Bridges and Culverts
The Township has jurisdiction over a total of 11 bridges and 48 culverts that are more than
3 meters in length. Structure types include concrete rigid frames, concrete box culverts,
corrugated steel pipe arches, corrugated steel round pipe, precast hollow core
prestressed, concrete deck on steel beams and concrete slab on steel girders.
Asset
Quantity
Average Age
(years)
Replacement
Cost
Bridges
11
52.7
$10,940,000
Culverts
48
31.2
$16,235,000
Total:
$27,175,000
22
5.2.3 Water
Lambton Area Water Supply System (LAWSS) supplies drinking water to the Township.
Ontario Clean Water Agency (OCWA) inspects, operates and maintains the Township's
drinking water distribution system. Township water assets include hydrants, valves, water
equipment and watermains.
Asset
Quantity
Average Age
(years)
Replacement
Cost
Hydrants & valves
121
34.7
$732,104
Water equipment
4
5.0
$134,892
Watermains
98,350 m
32.6
$45,880,039
Total:
$46,747,035
5.2.4 Wastewater
OCWA inspects, operates and maintains the Township's wastewater collection and
treatment system. Township water assets include sewage lagoons, manholes, sanitary
equipment and sanitary sewer mains.
Asset
Quantity
Average Age
(years)
Replacement
Cost
Lagoons
3
11.5
$3,022,800
Manholes
245
39.6
$2,425,500
Sanitary equipment
8
13.1
$1,475,449
Sanitary mains
15,948 m
44.9
$17,517,828
Total:
$24,441,576
5.2.5 Stormwater
The Township's stormwater management system provides for conveyance and control of
stormwater. Stormwater conveyance assets include storm mains, manholes and
catchbasins. Control assets include stormwater management ponds.
23
Asset
Quantity
Average Age
(years)
Replacement
Cost
Catchbasins
142
19.4
$562,320
Manholes
97
34.9
$1,019,700
Storm mains
16,811 m
43.5
$14,277,120
Stormwater
management ponds
1
13.0
$102,183
Total:
$15,961,323
5.2.6 Buildings
The Township's buildings, their age and replacement cost are summarized in the following
table. Of note, the salt shed building is planned to be retired and replaced in 2024. As
such, the building's age is considered to be zero and the replacement cost is the
anticipated construction cost of the new building.
Building Name
Building Age (years)
Replacement Cost
Watford Arena
52
$13,142,183
BMX Park Building
12
$76,829
East Lambton Community Centre
(ELCC)
3
$13,000,000
Watford Museum
139
$1,065,125
Public Works Office and Garage
42
$2,469,195
Salt Shed
0
$1,300,000
Warwick Soccer Club
15
$762,030
Warwick Ball Park
57
$745,800
Warwick Community Centre
11
$2,334,930
Warwick Fire Station
71
$980,758
Watford Cemetery
53
$124,348
Watford Fire Station
111
$2,642,004
Watford Public Works Garage
57
$687,193
Watford Library
139
$1,352,908
24
Watford Park
39
$2,773,980
Chemical Treatment Lagoon
Buildings
13
$135,457
Sewage Pumping Station
13
$282,140
Auto Sampler Building
13
$20,500
Booster Pump Station
5
$900,851
Total:
$43,496,233
5.2.7 Land Improvements
Land improvements include lighting and fencing, parking lots, parks and features,
playgrounds and splash pads, and sports structures.
Asset
Quantity
Average Age
(years)
Replacement
Cost
Lighting & Fencing
15
19.1
$1,478,553
Parking lots
12
37.6
$1,347,966
Parks & Features
4
21.8
$605,031
Playgrounds &
Splash pads
3
16.6
$376,200
Sports structures
8
10.9
$1,457,856
Total:
$5,265,606
5.2.8 Fleet
Fleet assets are utilized by Protection Services, Recreation Services and Transportation
Services. The fleet includes tandem axle trucks used for winter maintenance, pick-up
trucks used for parks and road maintenance, and fire department vehicles used to provide
emergency services. Protection Services fleet replacement costs have increased
significantly over the past few years. As such, the replacement costs have been updated
based on recently published purchase prices of similar vehicles.
25
Asset
Quantity
Average Age
(years)
Replacement
Cost
Protection Services
6
16.2
$5,700,000
Recreation Services
6
7.0
$304,920
Transportation
Services
16
9.9
$4,771,800
Total:
$10,776,720
5.2.9 Machinery & Equipment
Machinery and equipment assets are utilized by Protection Services, Recreation Services
and Transportation Services. Examples of machinery and equipment include computers
and other information technology equipment, exercise equipment, landscaping tools and
equipment, and fire/life safety equipment.
Asset
Quantity
Average Age
(years)
Replacement
Cost
Protection services
18
16.7
$279,865
Recreation services
38
9.1
$1,481,112
Transportation
services
8
8.0
$491,253
Total:
$2,252,230
5.2.10 Asset Replacement Cost Summary
Total replacement cost for each asset class is summarized in the following table and pie
charts.
26
Asset Class
Replacement Cost
(2024$)
Roads
$141,079,620
Bridges and culverts
$27,175,000
Water
$46,747,035
Wastewater
$24,441,576
Stormwater
$15,961,323
Buildings
$43,496,233
Land improvements
$5,265,606
Fleet
$10,776,720
Machinery & Equipment
$2,252,230
Total:
$317,195,343
Roads
Bridges and
culverts
Water
Wastewater
Stormwater
Buildings
Land
improvements
Fleet Machinery &
Equipment
ASSET REPLACEMENT COSTS
27
5.3 Asset CondiƟon
Assessed condition is the preferred measurement for planning lifecycle activities to
ensure assets deliver the agreed-upon levels of service and reach their expected useful
life.
Although the Township considers condition as the ideal basis for infrastructure planning,
some assets do not yet have a process to determine condition. For assets with no known
condition information, the condition was assumed based on the asset's age, expected
useful life and remaining service life. In the future, the Township is investigating
completing condition assessments for assets where no program currently exists. For
some assets, condition assessments are not economical, but for many assets, regular
inspections provide strategic value to the municipality.
A summary of available asset condition data is included in the following table:
Assets with Available Condition
Data
Assets with No Available Condition Data
(condition is based on age)
Roads
Water
Bridges and culverts
Wastewater*
Buildings
Stormwater
Land Improvements
Fleet
Machinery & Equipment
* Limited condition information is included in a report prepared by Spriet Associates titled Watford
Urban Area Sanitary Sewer Study 2021. The report assesses sewer capacity to accommodate growth,
and also provides an estimated repair cost of $46,000 to address observed calcite deposits. The
report does not provide condition ratings for the sanitary sewer network; therefore age will be used as
a determinant of condition.
The following report sections provide detailed information regarding the condition of each
asset class. Using a weighted average, the overall condition of the Township's assets
falls within the 'Good' category.
5.3.1 CondiƟon Based on InspecƟon Data
Asset condition data is available for roads, bridges, culverts, and buildings. The following
table details the condition assessment reports that were reviewed for these asset classes
to inform the asset management plan.
28
Asset Class
Report Title
Prepared By
Report
Date
Roads
Gravel Road Study
Spriet Associates
2020
Paved Road Study
Spriet Associates
2021
Bridges and culverts
Ontario Structure
Inspection Manual
(OSIM) Report
Spriet Associates
2023
Buildings
Building Condition
Assessments
Infralevel Inc.
2024
5.3.1.1 Roads
Detailed road condition data is included in the Paved Road Study and Gravel Road Study
prepared by Spriet Associates. Condition ratings from the Spriet reports have been
mapped to the condition grading methodology of the asset management plan as follows.
Condition
Grading
Condition Description
Pavement
Condition Index
Very Good
No noticeable defects
80 - 100
Good
Minor deterioration
70 - 79
Fair
Deterioration evident, function is affected
60 - 69
Poor
Serious deterioration, function is inadequate
50 - 59
Very Poor
No longer functional, general or complete failure
< 50
Paved roads are in good condition overall, with an average pavement condition index of
73. Gravel roads are also in good condition overall, with an average pavement condition
index of 79. The percentage of paved and gravel roads in each condition grading
category is summarized in the following table. The average pavement condition index is
a weighted value based on road segment length.
29
Asset
Condition
Grading
% of Assets
Average Pavement
Condition Index
Paved Roads
Very Good
20%
Good (73)
Good
48%
Fair
23%
Poor
7%
Very Poor
2%
Gravel Roads
Very Good
50%
Good (79)
Good
33%
Fair
10%
Poor
3%
Very Poor
4%
5.3.1.2 Bridges and Culverts
The condition of Township bridges and culverts was assessed in a report titled 'Bridge
and Culvert - 2023 Inspection and Assessment Report' by Spriet Associates. The
assessment was completed as part of the inspections required to be completed every two
years by O. Reg. 104/97. The assessment follows the Ontario Structure Inspection
Manual (OSIM).
Bridge condition index ratings from the Spriet report have been mapped to the condition
grading methodology of the asset management plan as follows.
Condition
Grading
Condition Description
Bridge Condition
Index
Very Good
Minimal short-term work required
80 - 100
Good
Some maintenance required
70 - 79
Fair
Repair or renewal work is required in the short
term
60 - 69
Poor
Major renewal work is required in the short term
50 - 59
Very Poor
Nearing the end of its service life, load limits
may be required
< 50
30
The Spriet report assigned a Bridge Condition Index (BCI) score to each bridge and
culvert. The average condition and the percentage of bridges and culverts in each
condition grading category are summarized in the following table. The average bridge
condition index is a weighted value based on replacement cost.
Asset
Condition
Grading
% of Assets
Average Bridge
Condition Index
Bridges
Very Good
39%
Good (77%)
Good
38%
Fair
14%
Poor
9%
Very Poor
0%
Culverts
Very Good
40%
Good (77%)
Good
29%
Fair
16%
Poor
5%
Very Poor
10%
5.3.1.3 Buildings
Comprehensive condition assessments are typically performed on a five-year cycle and
additional interim assessments are completed as required. Infralevel completed Building
Condition Assessments for all Township facilities in 2024.
Condition can be assessed at the asset level, as well as at the facility level using the
industry standard Facility Condition Index (FCI). This value represents the ratio between
repair and renewal costs and the replacement value of the asset.
Condition ratings from the Infralevel Building Condition Assessment reports have been
mapped to the condition grading methodology of the asset management plan as follows.
31
Condition
Grading
Condition Description
Facility Condition
Index (%)
Very Good
Minimal maintenance required
91 - 100
Good
Some maintenance and renewal required
81 - 90
Fair
Moderate level of wear and tear
71 - 80
Poor
Building requires significant repair and renewal
51 - 70
Very Poor
Major deferred maintenance impacts building
operations and user experience
< 51
The Infralevel reports assigned a Facility Condition Index score to each building, as
summarized in the following table.
Building Name
Facility Condition Index (%)
Watford Arena
Fair (79%)
BMX Park Building
Very Good (98%)
East Lambton Community Centre (ELCC)
Very Good (100%)
Watford Museum
Fair (73%)
Public Works Office and Garage
Fair (79%)
Salt Shed (new structure)
Very Good (100%)
Warwick Soccer Club
Very Good (97%)
Warwick Ball Park
Poor (51%)
Warwick Community Centre
Very Good (96%)
Warwick Fire Station
Fair (72%)
Watford Cemetery
Very Poor (28%)
Watford Fire Station
Poor (58%)
Watford Public Works Garage
Poor (65%)
Watford Library
Good (81%)
Watford Park
Good (90%)
Chemical Treatment Lagoon Buildings
Very Good (100%)
32
Sewage Pumping Station
Very Good (100%)
Auto Sampler Building
Very Good (100%)
Booster Pump Station
Very Good (100%)
Township buildings are in good condition overall. The average Facility Condition Index is
86; this is a weighted value based on replacement cost. The average facility condition
index and the percentage of buildings in each condition grading category are summarized
in the following table:
Asset
Condition
Grading
% of Assets
Average Facility
Condition Index
Buildings
Very Good
46%
Good (88%)
Good
39%
Fair
6%
Poor
8%
Very Poor
1%
5.3.2 CondiƟon Based on Asset Age
Asset age, expected useful life and remaining useful life are used to determine the
condition of assets that have no assessed condition data available. The following table
maps the percentage of remaining useful life to the standard condition grading categories
used in this report.
Condition
Grading
Condition Description
Remaining Useful
Life (%)
Very Good
The asset is new, recently rehabilitated, or very
well maintained. Only preventative maintenance
is required.
80 - 100
Good
The asset is adequate and has slight defects
and shows signs of some deterioration that has
no significant impact on asset's usage.
Minor/preventative maintenance may be
required.
60 - 80
Fair
The asset is sound but has minor defects.
Deterioration has some impact on asset usage.
Minor to significant maintenance is required.
40 - 60
33
Poor
The asset has significant defects and
deterioration. Deterioration has an impact on
asset usage. Rehabilitation or major
maintenance is required in the next year.
20 - 40
Very Poor
The asset has serious defects and deterioration,
rendering it unfit for use. Urgent rehabilitation or
closure is required.
0 - 20
5.3.2.1 Roads - Miscellaneous Assets
The age-based condition of miscellaneous road assets is summarized in the following
table. The average condition is a weighted value based on replacement cost.
Asset
Expected
Useful Life
(years)
Average Age
(years)
Condition
Grading
Average
Condition
(%)
Road signs and
guardrails
25
12
Fair
54
Sidewalks
35
29
Poor
30
Culverts
50
4
Very Good
92
Streetlights
40
20
Fair
50
The percentage of miscellaneous road assets in each condition grading category is
summarized in the following table.
Asset
Condition
Grading
% of Assets
Average Condition
Roads -
Miscellaneous
Assets
Very Good
13%
Poor (36%)
Good
10%
Fair
22%
Poor
24%
Very Poor
31%
5.3.2.2 Water
The age-based condition of water assets is summarized in the following table. The
average condition is a weighted value based on replacement cost.
34
Asset
Expected
Useful Life
(years)
Average Age
(years)
Condition
Grading
Average
Condition
(%)
Hydrants & valves
40 - 80
34.7
Poor
25
Water equipment
10
5.0
Fair
50
Watermains
80 - 100
32.6
Good
66
The percentage of water assets in each condition grading category is summarized in the
following table.
Asset
Condition
Grading
% of Assets
Average Condition
Water
Very Good
5%
Good (65%)
Good
85%
Fair
2%
Poor
1%
Very Poor
7%
5.3.2.3 Wastewater
The age-based condition of wastewater assets is summarized in the following table. The
average condition is a weighted value based on replacement cost.
Asset
Expected
Useful Life
(years)
Average Age
(years)
Condition
Grading
Average
Condition
(%)
Lagoons
20 - 75
11.5
Good
78
Manholes
60
39.6
Poor
34
Sanitary equipment
25 - 35
13.1
Fair
48
Sanitary Mains
80 - 100
44.9
Fair
55
The percentage of wastewater assets in each condition grading category is summarized
in the following table:
35
Asset
Condition
Grading
% of Assets
Average Condition
Wastewater
Very Good
10%
Fair (55%)
Good
21%
Fair
62%
Poor
2%
Very Poor
5%
5.3.2.4 Stormwater
The age-based condition of stormwater management assets is summarized in the
following table. The average condition is a weighted value based on replacement cost.
Asset
Expected
Useful Life
(years)
Average Age
(years)
Condition
Grading
Average
Condition
(%)
Catchbasins
60
19.4
Good
68
Manholes
60
34.9
Fair
48
Storm mains
85
43.5
Fair
49
Stormwater
management ponds
75
13.0
Very Good
83
The percentage of stormwater management assets in each condition grading category is
summarized in the following table:
Asset
Condition
Grading
% of Assets
Average Condition
Stormwater
Very Good
21%
Fair (50%)
Good
27%
Fair
13%
Poor
14%
Very Poor
25%
36
5.3.2.5 Land Improvements
The age-based condition of land improvement assets is summarized in the following
table. The average condition is a weighted value based on replacement cost.
Asset
Expected
Useful Life
(years)
Average Age
(years)
Condition
Grading
Average
Condition
(%)
Lighting & Fencing
20 - 50
19.1
Poor
35%
Parking lots
30
37.6
Fair
43%
Parks & Features
25 - 100
21.8
Poor
39%
Playgrounds &
Splash pads
15 - 25
16.6
Poor
20%
Sports structures
7 - 30
10.9
Fair
56%
The percentage of land improvement assets in each condition grading category is
summarized in the following table:
Asset
Condition
Grading
% of Assets
Average Condition
Land
Improvements
Very Good
25%
Poor (36%)
Good
1%
Fair
27%
Poor
4%
Very Poor
43%
5.3.2.6 Fleet
The age-based condition of fleet assets is summarized in the following table. The average
condition is a weighted value based on replacement cost.
37
Asset
Expected
Useful Life
(years)
Average Age
(years)
Condition
Grading
Average
Condition
(%)
Protection Services
10 - 25
16.2
Poor
29%
Recreation Services
12 - 15
7.0
Fair
45%
Transportation
Services
10 - 20
9.9
Poor
38%
The percentage of fleet assets in each condition grading category is summarized in the
following table:
Asset
Condition
Grading
% of Assets
Average Condition
Fleet
Very Good
2%
Poor (32%)
Good
12%
Fair
36%
Poor
20%
Very Poor
30%
5.3.2.7 Machinery & Equipment
The age-based condition of machinery and equipment assets is summarized in the
following table. The average condition is a weighted value based on replacement cost.
Asset
Expected
Useful Life
(years)
Average Age
(years)
Condition
Grading
Average
Condition
(%)
Protection services
10 - 25
16.7
Poor
21%
Recreation services
10 - 50
9.1
Fair
58%
Transportation
services
15 - 50
8.0
Good
68%
The percentage of machinery and equipment assets in each condition grading category
is summarized in the following table:
38
Asset
Condition
Grading
% of Assets
Average Condition
Machinery &
Equipment
Very Good
27%
Fair (56%)
Good
39%
Fair
2%
Poor
13%
Very Poor
19%
5.3.3 Asset CondiƟon Summary
A summary of average condition for each asset class is provided in the following table:
Asset Class
Average Condition
Roads
Good
Bridges & Culverts
Good
Water
Good
Wastewater
Fair
Stormwater
Fair
Buildings
Good
Land improvements
Poor
Fleet
Poor
Machinery & Equipment
Fair
39
Current Levels of Service
Proposed Levels of Service
Levels of Service Tables
LEVELS OF SERVICE
40
6. Levels of Service
6.1 Current Levels of Service
Levels of service is a key component of asset management decision-making that describe
the planned outcome from the use of an asset, from a customer and technical
performance perspective.
The Township's current level of service statements describe the asset outputs that the
Township intends to deliver to the community and can be represented in terms of
attributes such as availability, cost-effectiveness, reliability, responsiveness, safety,
suitability and sustainability. Current levels of service measures for each service area are
established through discussions with Township staff or are prescribed metrics included in
O. Reg. 588/17.
In addition to the measures required by O. Reg. 588/17, the Township has developed
other foundational asset service measures which assist the Township in defining its
performance levels and identifying areas of improvement. The levels of service inform the
planned actions required to deliver the expected service levels and this link enables the
Township to gain an understanding of the costs associated with delivering its services to
the community.
The service levels and performance reporting in this asset management plan are
compliant with O. Reg. 588/17. Through each update of the plan, the Township will
continue to develop and refine service levels, performance measurements and targets.
The Township will also consider impacts of external factors affecting levels of service,
such as changing regulations, population growth, customer expectations and trends,
demographic changes, and climate change impacts. Internal and external factors may
lead to changes in the current levels of service provided by the Township; proposed levels
of service address these changes.
6.2 Proposed Levels of Service
The Township is evolving over time and resident needs and expectations also change
due to numerous internal and external factors. Strategic corporate documents such as
the Strategic Plan, Official Plan, DC Background Study, master plans and annual budget
present and propose new initiatives and projects that represent changes to current levels
of service.
These proposed changes to the current levels of service are referred to as 'proposed
levels of service' and for the purposes of asset management planning and in relation to
O. Reg. 588/17, they are considered the future target state, in 10 years' time. Proposed
levels of service are often categorized as impacting capacity and use, function, quality or
affordability.
41
Service Attribute
Strategic Theme
Description
Capacity and Use
Capacity
Convenient and accessible to
the community
Availability
Consistent readiness for use
Function
Regulatory Compliance
Conforms with appropriate
legislation and other standards
Enhanced Safety
Safe for community use
Resilience
Withstands stresses and
continues to perform as
expected
Enhanced Environment
Contributes positively to a
sustainable environment
Quality
Reliability
Continued function without
failure
Customer Satisfaction
The community is informed and
needs are met
Affordability
Financial Sustainability
Value is achieved for the
community now and into the
future
O. Reg. 588/17 requires an assessment of the appropriateness of the proposed levels of
service for the municipality, including a review of achievability, affordability, available
options, the risks associated with the options, and the differences between the current
and proposed levels of service.
Differences Between Current and Proposed Levels of Service
The differences between the current and proposed levels of service pertain mainly to
higher standards for asset condition and reliability, improved environmental performance
and enhanced due diligence for asset condition assessments.
Achievability
The proposed levels of service are driven by community needs and expectations. They
are determined to be achievable based on a review of resource availability, including
personnel, equipment, technology and funding. Infrastructure capacity and regulatory
compliance have also been considered as part of the achievability assessment.
Affordability
The Township's finite budget resources have been taken into account when developing
its proposed levels of service. A long-term perspective has been applied to forecast and
42
plan for operating, maintenance, rehabilitation and replacement costs over the lifecycle
of each asset.
Options & Risks
Options have been reviewed for each proposed level of service and a cost-benefit
analysis has been utilized to distinguish between and prioritize the various available
options. Costs and benefits have been adjusted for the potential impacts of risk, providing
decision makers with a realistic understanding of the potential outcomes of a service level
change and informing decisions that seek long-term sustainability for the Township.
6.3 Levels of Service Tables
The levels of service tables in this section follow the same structure for each service area.
They include components such as identifying customer values, customer- and Council-
focused performance measures, and technical-focused performance measures. Each
table contains the following components:
-
Service Attribute - Summarizes the type of service being provided to residents,
businesses and the wider community.
-
Performance Measures:
Community Levels of Service - Communicates service outcomes from the
perspective of the customer, for both current and proposed levels of service.
Technical Levels of Service - Communicates service outcomes in technical
terms, for both current and proposed levels of service.
-
Current Performance - The current performance of the metric quantified through
the best available information.
-
Performance Target - The future performance of the metric representing the
target state, in 10 years' time.
Where appropriate, proposed levels of service have been included in the tables for each
asset class.
6.3.1 Roads
Community and technical levels of service for the roads asset class are included in the
following tables.
Service
Attribute
Community Levels of Service
Current
Performance
Scope
Maps of the road network and its level of
connectivity
Refer to maps in
Appendix A
Quality
Images that illustrate the different levels of road
class pavement condition
Refer to images in
Appendix A
43
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
Lane kilometres of arterial roads per Township
land area
0 lane km/km2
Lane kilometres of collector roads per Township
land area
0 lane km/km2
Lane kilometres of local roads per Township
land area
1.51 lane km/km2
Quality
Average pavement condition index for paved
roads
Good (73)
Average surface condition for unpaved roads
Good (79)
Centreline kilometres of paved roads with
pavement condition index less than 50
1.4
Centreline kilometres of gravel roads with
Average Annual Daily Traffic count over 100 and
surface condition less than 50
0
Service
Attribute
Proposed Levels of Service
Performance
Target
Quality
% of paved roadway assets in fair or better
condition
85%
% of gravel roadway assets in fair or better
condition
85%
6.3.2 Bridges and Culverts
Community and technical levels of service for the bridges and culverts asset class are
included in the following tables.
Service
Attribute
Community Levels of Service
Current Performance
Scope
Description of the traffic that is
supported by municipal bridges
Municipal bridges provide passage
for heavy transport vehicles, motor
vehicles, emergency vehicles,
pedestrians and cyclists
Quality
Images of the condition of bridges
and how this affects use
Refer to images in Appendix A
Images of the condition of culverts
and how this affects use
Refer to images in Appendix A
44
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
Percentage of bridges with loading or
dimensional restrictions
2%
Quality
Average bridge condition index for bridges
77
Average bridge condition index for structural
culverts
77
Service
Attribute
Proposed Levels of Service
Performance
Target
Quality
% of bridges in fair or better condition
80%
% of culverts in fair or better condition
80%
6.3.3 Stormwater
Community and technical levels of service for the stormwater asset class are included in
the following tables.
Service
Attribute
Community Levels of Service
Current
Performance
Scope
Maps of areas that are protected from flooding,
including the extent of protection provided by the
municipal stormwater management system
Refer to maps in
Appendix A
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
Percentage of properties that are resilient to a
100-year storm
0
Percentage of the stormwater management
system resilient to a 5-year storm
1%; system is
mainly designed
for a 2-year storm
Service
Attribute
Proposed Levels of Service
Performance
Target
Quality
CCTV condition inspection program
Completion every
10 years
45
6.3.4 Water
Community and technical levels of service for the water asset class are included in the
following tables.
Service
Attribute
Community Levels of
Service
Current Performance
Scope
Maps of areas that are
connected to the municipal
water system
Refer to maps in Appendix A
Maps of areas that have fire
flow
Refer to maps in Appendix A
Reliability
Description of boil water
advisories and service
interruptions
The Township is committed to
ensuring a consistent supply of safe
drinking water. The Township's
drinking water systems operate under
a Quality Management System as
legislated under the Safe Drinking
Water Act, 2002, and regulated by
MECP. Water quality is tested as
required, and the results of this
testing are reported annually. The
Township reports any incidents to
MOH, follows Ministry direction and
communicates to stakeholders as
required.
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
Percentage of properties connected to the
municipal water system
79.6%
Percentage of properties with available fire flow
69.3%
Reliability
Number of connection-days per year where a
boil water advisory notice is in place compared
to the total number of properties connected to
the municipal water system
0
Number of connection-days lost per year due to
watermain breaks compared to the total number
of properties connected to the municipal water
system
1
46
Service
Attribute
Proposed Levels of Service
Performance
Target
Quality
Number of drinking water non-compliances
0
6.3.5 Wastewater
Community and technical levels of service for the wastewater asset class are included in
the following tables.
Service
Attribute
Community Levels of Service
Current Performance
Scope
Maps of areas that are connected to the
municipal wastewater system
Refer to maps in Appendix
A
Reliability
Description of how combined sewers in the
municipal wastewater system are designed
with overflow structures in place which
allow overflow during storm events to
prevent backups into homes
The Township does not
have combined sewers
Description of the frequency and volume of
overflows in combined sewers in the
municipal wastewater system that occur in
habitable areas or beaches
The Township does not
have combined sewers
Description of how stormwater can get into
sanitary sewers in the municipal
wastewater system, causing sewage to
overflow into streets or backup into homes
Township sanitary sewers
are subject to inflow and
infiltration (I&I) via sump
pumps, downspouts, and
holes/cracks in the pipes.
I&I reduces available
sewer capacity and
increases risk of overflow
and backup.
Description of how sanitary sewers in the
municipal wastewater system are designed
to be resilient to avoid events described
above
Design of the sanitary
sewers varies due to the
wide range of sewer
construction dates,
however the sewers have
generally been designed
for watertightness and use
of durable materials.
Description of the effluent that is
discharged from sewage treatment plants
in the municipal wastewater system
Effluent may include
nutrients such as nitrogen
and phosphorus, and
suspended solids.
47
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
Percentage of properties connected to the
municipal wastewater system
50%
Reliability
The number of events per year where combined
sewer flow in the municipal wastewater system
exceeds system capacity compared to the total
number of properties connected to the municipal
wastewater system.
0
The number of connection-days lost per year
due to wastewater backups compared to the
total number of properties connected to the
municipal wastewater system.
0.005
The number of effluent violations per year due to
wastewater discharge compared to the total
number of properties connected to the municipal
wastewater system.
0
Service
Attribute
Proposed Levels of Service
Performance
Target
Quality
CCTV condition inspection program
Completion every
10 years
Quality
Effluent quality for sewage lagoons
CBOD
concentration
< 7mg/L
6.3.6 Buildings
Community and technical levels of service for building assets are included in the following
tables.
48
Service
Attribute
Community Levels of Service
Current Performance
Scope
Number of community centres
per 1,000 residents
0.52
Number of fire stations per
1,000 residents
0.52
Reliability
Description of backup power
provisions
Emergency generators are
provided at the Watford Arena and
ELCC, Watford Fire Station,
Warwick Fire Station, Booster
Pumping Station, Public Works
Office and Garage and Sewage
Pumping Station
Description of activities
undertaken to plan for climate
change impacts
Planning for climate change is a
key component of the Township's
Strategic Plan and was
incorporated into the 2024 Building
Condition Assessment project
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
Number of capital projects identified that will
have climate change considerations included in
the scope of work
10
Quality
Average facility condition index (FCI)
80%
Service
Attribute
Proposed Levels of Service
Performance
Target
Quality
% of buildings in fair condition or better
85%
Environment
Reduce energy consumption in public and
recreation facilities
2% annual
reduction
Resilience
% of buildings with climate change adaptation
projects identified
50%
6.3.7 Land Improvement
Community and technical levels of service for the land improvement asset class are
included in the following tables.
49
Service
Attribute
Community Levels of Service
Current Performance
Scope
Number of ball diamonds per 1,000
residents
0.79
Number of soccer pitches per 1,000
residents
1.05
Number of parks
6
Description of the mission of the
Parks and Recreation Department
Working in collaboration with
community partners to
provide parks, recreation,
tourism and cultural
opportunities that are
inclusive, accessible and
responsive to local needs
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
Area of parkland and area of parkland per 1,000
residents
13.8 hectares (3.5
hectares per 1,000
residents)
Number of trees planted in 2023
20
Service
Attribute
Proposed Levels of Service
Performance
Target
Environmental
Annual tree planting
Plant 100 trees in
the next 10 years
6.3.8 Fleet
Community and technical levels of service for the fleet asset class are included in the
following tables.
Service
Attribute
Community Levels of Service
Current Performance
Scope
Number of vehicles in the fleet
28
Quality
Description of common lifecycle
activities
Inspections, regulatory
maintenance, oil change, tire
rotation, collision repair,
component replacement such
as breaks, transmission and
shocks, etc.
50
Service
Attribute
Technical Levels of Service
Current
Performance
Scope
% of fleet beyond their expected useful life
18%
Service
Attribute
Proposed Levels of Service
Performance
Target
Reliability
% of fleet within expected useful life
> 70%
6.3.9 Machinery & Equipment
Community and technical levels of service for the machinery and equipment asset class
are included in the following tables.
Service
Attribute
Community Levels of Service
Current Performance
Scope
Contribution to a safe, equitable and
sustainable municipality
Machinery and equipment
support the delivery of
services across the
organization
Description of healthy lifestyle options
supported with machinery and
equipment
The Township provides indoor
and outdoor fitness
equipment for resident use
Service
Attribute
Technical Levels of Service
Current
Performance
Quality
Average condition of assets
Fair (56%)
Service
Attribute
Proposed Levels of Service
Performance
Target
Quality
% of machinery and equipment in fair condition
or better
70%
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Emerging Risks and Challenges
Climate Change
Risk Management Process
Risk Assessment
Current Risks
Risk Treatment
Risk-Based Prioritization
RISK MANAGEMENT
STRATEGY
52
7. Risk Management Strategy
Risk is defined as the effect of uncertainty on objectives. In the context of a municipal
asset management plan, risk presents uncertainty in the Township's objective to
effectively manage its infrastructure and assets to ensure sustainability, functionality, and
longevity. Risk is often expressed as the consequences of an event in combination with
the associated likelihood of that event occurring.
Risk management is an essential component of effectively managing infrastructure
assets. The Township is maturing to a state where it will manage risk and opportunities
through a formal risk analysis process. Through continuous application and expansion of
the risk process, the Township will ensure that it explicitly and continually considers risks
to its objectives. This process will be completed as part of the asset management planning
process and will enable the Township to address risk proactively versus reactively.
The purpose of infrastructure risk management is to document the findings and
recommendations resulting from the periodic identification, assessment and treatment of
risks associated with providing services from infrastructure, using the fundamentals of
International Standard ISO 31000:2018 Risk management - Principles and guidelines.
The risk management strategy outlined in this report will allow the Township to minimize
its risk exposure by focusing the available funding on critical assets that have high
financial, social or environmental consequences. By continuously monitoring risk, the
Township can:
Prioritize maintenance and upgrade work
Optimize resource allocation
Mitigate unexpected costs, service interruptions and downtime
Enhance resilience and sustainability
Comply with regulatory requirements
Make informed, fact-based decisions
7.1 Emerging Risks and Challenges
The Township is dynamic, thriving community that is facing a changing and dynamic
environment especially as it continues the recovery stage of COVID-19. There are several
challenges and unknown conditions underlying the asset portfolio that result in increased
service pressures and create infrastructure risks for which the municipality must be
prepared.
53
Major trends which are resulting in increased service pressures and more complex
community challenges include:
Growing and Rapidly Aging Population
A growing and aging population increases service demands
and places stress on existing infrastructure, creating more
demand for new infrastructure investment.
Aging Infrastructure
Warwick's infrastructure is aging, requiring increased levels
of investment to keep it in a state of good repair.
Climate Change
Climate change leading to extreme weather events presents
risks for effective and long-lasting infrastructure.
Changing Economy
Changes to economic conditions including inflation, energy
costs, grants and subsidies may adversely affect the
Financing Strategy. Impacts of COVID-19 on the economy
will have a long-term effect on financial sustainability.
Rapidly Changing Technology
Rapidly changing technology in a changing and uncertain
macro environment challenges how quickly we adapt in the
way we connect with residents and deliver services.
Changing Legislative Environment
Constantly evolving legislation and regulations impact
infrastructure decisions.
Continued Pandemic Recovery
Continued COVID-19 pandemic recovery can have multi-
year implications on how the Township operates and
maintains assets. COVID-19 may also cause permanent
impacts on asset design and delivery of capital programs.
54
7.2 Climate Change
Ontario municipalities are experiencing the impacts of climate change. Anticipated future
impacts, including severe heat waves, threats to the water supply, extreme storms, and
adverse health effects, could disrupt society and the economy. Integrating climate change
into asset management means taking stock of the physical and financial impacts climate
change will have on the condition, performance, and longevity of assets and service
delivery, and using this information to identify and prioritize investment needs, both in the
near and long-term.
O. Reg. 588/17 requires the Township to consider climate change in the development of
its asset management policy and asset management plan. In order to improve the
maturity of its asset management program, the Township contracted Infralevel to inspect
all municipal facilities and prepare a climate change adaptation plan including
recommendations and costs to adapt Township facilities for climate change
considerations over the long term. The associated costs of the work have been included
in the building condition assessments, which in turn have been included in the lifecycle
costs included in this asset management plan. Climate change performance metrics have
also been included in the proposed levels of service outlined herein. This represents a
significant step forward for the municipality in advancing its asset management maturity.
The recommendations made in the climate change adaptation plan are as follows.
Climate Change Adaptation Actions for Municipal Facilities:
Rising extreme and average summer temperatures strain the cooling systems
provided in Township facilities. It is recommended that summer air conditioning
demand be monitored to identify where capacity issues may be a concern as
summer temperatures rise. Cooling system capacity should be upgraded as
required, typically when lifecycle replacement is completed, to meet future cooling
demands.
When designing new or replacement cooling systems, include increased demand
associated with future higher temperatures.
Prior to replacement of HVAC systems, assess and upgrade the electrical system
as required based on increased maximum cooling loads. Energy efficiency
opportunities can be leveraged through the design process.
Replacement of old cooling systems with energy efficient units has the additional
benefit of reducing emissions; low carbon heating and cooling options should be
prioritized.
The Township may consider designating central facilities for use as community
cooling stations. Facilities utilized by vulnerable populations may be prioritized,
including the library and community centres.
55
To address increasing storm intensity and resulting power outages, provide backup
power generation where feasible; prioritize facilities that are critical for safe
gathering/sheltering and maintaining essential services during power outages, as
was recently completed at the Warwick Community Centre.
Install lightning protection systems. Although difficult to predict, lightning strikes
may become more frequent in the future. This could damage electrical systems in
buildings and potentially cause power outages. Critical buildings should be
prepared for extended power outages in the future. This is particularly important
for facilities that are designated for use as emergency shelters or gathering
locations.
Continue to inspect and maintain roof systems regularly and after extreme wind
events. Proactively repair signs of material distress to avoid roof failure.
As part of lifecycle activities, replace roofs with reflective roofing. This will reduce
the heat island effect, mitigate the impact of heat waves, reduce energy demand
for cooling buildings and lower maintenance costs.
Monitor air quality for key municipal facilities. When lifecycle replacement is
completed, consider upgrading HVAC systems to accommodate improved filters
to address poor air quality events related to wildfires and increased temperatures.
Extreme heat can lead to increased deterioration and wear on hardscaping.
Continue to inspect parking lots and hardscaping regularly to identify heat-related
deterioration and complete repairs early on to avoid further degradation and higher
repair costs.
Monitor internal drainage systems in facilities and prepare for a projected increase
in precipitation events.
Increase the capacity of the storm sewer system through the lifecycle replacement
process and as part of the design process for new developments.
Store electrical and mechanical equipment above grade where possible to avoid
damage from flooding.
7.3 Risk Management Process
This report presents an infrastructure-based risk process to ensure that all assets will be
reviewed utilizing a standardized approach. This will ensure that the Township is able to
measure and compare risks consistently across a broad spectrum of assets and services.
The risk assessment process seeks to identify credible risks, the likelihood of the risk
event occurring, the consequences should the event occur, development of a risk rating,
evaluation of the risk and development of a risk treatment plan for non-acceptable risks.
An assessment of risks associated with service delivery identifies risks that will result in
56
loss or reduction in service, personal injury, environmental impacts, financial setbacks,
reputational impacts, or other consequences.
7.4 Risk Assessment
To ensure a consistent approach to risk, this report standardizes scales for both
consequence and likelihood.
7.4.1 Risk Consequence Matrix
Standardized risk consequence categories can be applied municipality-wide with respect
to assets and services. The risk categories are:
Interruption/reduction of services
Financial
Human safety
Reputational
Environmental
The risk consequence categories are assigned values from 1 (minimal) to 5
(catastrophic). Descriptions of the consequences of risk along this scale, for each risk
category, are included in the following Risk Consequence Matrix.
Service
Financial
Safety
Reputation
Environmental
1
Negligible
Little to no
service
interruption
< $2.5K
Potential
for minor
injury
Minimal
concern
Negligible
impact
(restored within
1 week)
2
Minor
Minor service
interruption (<
4 hr of
downtime)
$2.5K -
$25K
Lost time
incident,
minor injury
to few
people
Internal
concerns
Minor impact
(restored within
1 month)
3
Moderate
Moderate
service
interruption (4
- 24 hrs
downtime)
$25K -
$250K
Permanent
injury
Public
concerns,
phone calls,
Council
questions
Significant
short-term
impact
(restored within
2 months)
4
Major
Major service
interruption (1
day to 1 week
downtime)
$250K -
$2.5M
Disabling
injury or
casualty
Local news,
TV, social
media
Significant
long-term
impact (up to 1
year)
5
Catastrophic
Catastrophic
interruption of
service (>1
week of
downtime)
> $2.5M
Multiple
casualties
National/
international
news
coverage
Major long-
term impact (>
1 year/
permanent)
57
Every Township asset has been assigned a risk consequence score based on the above
matrix. The risk consequence score for each asset category is provided in the following
table:
Asset Class
Asset
Risk
Consequence
Roads
Gravel roads
3
Paved roads
3
Subgrade
3
Road signs and guardrails
2
Sidewalks
2
Culverts
2
Streetlights
3
Bridges & Culverts
Bridges
4
Culverts
4
Stormwater
Catchbasins
2
Manholes
3
Storm mains
3
Stormwater management ponds
3
Water
Hydrants & valves
4 (hydrants)
3 (valves)
Water equipment
2
Watermains
3
Wastewater
Lagoons
4
Manholes
3
Sanitary equipment
3
Sanitary Mains
4
Buildings
All Township facilities
1 - 4
Land Improvements
Lighting & Fencing
2
Parking lots
2
58
Parks & Features
2
Playgrounds & Splash pads
2
Sports structures
2
Fleet
Protection Services
4
Recreation Services
2
Transportation Services
3
Machinery & Equipment
Protection Services
4
Recreation Services
2
Transportation Services
3
7.4.2 Risk Likelihood Scale
The likelihood of an asset risk event indicates how likely it is for the risk event to happen.
The likelihood can be measured through qualitative or quantitative methodologies.
Alternatively, it can be quantified as the probability or frequency within a specified
timeframe. Evaluating the likelihood of failure is done individually for each asset, utilizing
a qualitative scoring system ranging from 1 (very unlikely) to 5 (commonly occurring), as
defined in the following table.
Likelihood
Description
Condition
Grading
Remaining
Useful Life
(%)
1
Rare
Event only occurs in
exceptional
circumstances; it is not
expected.
Very Good
80 - 100
2
Unlikely
Event could occur, but
infrequently.
Good
60 - 80
3
Possible
Event is expected to occur
at some time.
Fair
40 - 60
4
Regular
Event will probably occur
regularly or in most
circumstances.
Poor
20 - 40
5
Almost certain
Event is expected to occur
very frequently.
Very Poor
0 - 20
59
7.4.3 Risk RaƟng Matrix
A quantitative risk rating is determined based on the following equation:
For example, an aging but important drinking water asset with a consequence rating of 4
and a likelihood rating of 5 would generate a risk score of 20. A high-risk score draws
attention to an asset that requires attention in the short term.
The range of risk rating scores is summarized in the following risk rating matrix.
Likelihood
Consequence
1
Negligible
2
Minor
3
Moderate
4
Major
5
Catastrophic
5
Almost
Certain
5
10
15
20
25
4
Regular
4
8
12
16
20
3
Possible
3
6
9
12
15
2
Unlikely
2
4
6
8
10
1
Rare
1
2
3
4
5
Definitions for each range of risk rating scores, ranging from 1 to 25, are included in the
following table.
60
Risk Category / Score
Definition
Extreme Risk
(20 - 25 Points)
The process/task must not occur or must cease until
actions are taken to eliminate or minimise the risk.
Very High Risk
(15 - 16 points)
Actions are to be taken to eliminate the hazard or minimise
the risk.
High Risk
(10 - 12 points)
Attention is required to plan improved controls or actions to
minimise the risk.
Moderate Risk
(4 - 9 points)
The process or activity may continue; however effort is
required to ensure that controls are effective.
Low Risk
(1 - 4 points)
The process or activity in question continues with existing
controls.
All levels of the organization should have awareness of the risks the organisation is
exposed to, even moderate and low risks. Senior management may not need to be
involved in the active management of these risks but should be aware of them -
particularly regarding common themes between minor risks and the catastrophic events
that the organization may be exposed to but is controlling with its safety systems.
7.5 Current Risks
A risk map has been prepared for all asset classes and is presented in the table below.
The risk map shows the quantity and value of assets in each risk category, as measured
by 2024 dollar value.
Likelihood
Consequence
1
Negligible
2
Minor
3
Moderate
4
Major
5
Catastrophic
5
Almost
Certain
1 asset
$134,591
65 assets
$4,037,622
190 assets
$12,164,819
73 assets
$3,653,017
0 assets
$0
4
Regular
0 assets
$0
27 assets
$2,008,823
122 assets
$13,458,352
11 assets
$6,488460
0 assets
$0
3
Possible
1 asset
$1,152,859
47 assets
$16,992,522
108 assets
$30,960,841
176 assets
$19,645,826
0 assets
$0
2
Unlikely
0 assets
$0
24 assets
$5,701,074
472 assets
$97,780,833
59 assets
$13,574,705
0 assets
$0
1
Rare
1 asset
$83,157
106 assets
$22,859,841
267 assets
$34,319,756
36 assets
$13,736,467
0 assets
$0
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7.6 Risk Treatment
A list of projects/replacements corresponding with the extreme and very high risk assets
is included in the appendices and summarized in the discussion below. It is
recommended that the Township prioritize the completion of these projects in the short
term.
An inspection plan should be put in place for assets that are nearing the end of their useful
life to identify those requiring replacement. Risk should be monitored going forward to
ensure that assets in the moderate risk category do not move to the high-risk
classification. Infralevel recommends improving condition data, thus replacing age-based
condition with assessed condition wherever possible, to improve the accuracy of the risk
assessment process; risk may be overstated when age-based condition is used.
7.7 Risk-Based PrioriƟzaƟon
The results of the Risk Assessment and the Current Risks table provide direction as to
which projects the Township may choose to prioritize in the near term. The list is not
exhaustive and should also be weighed in consideration of resident input, non-
infrastructure requirements, broader priorities and the Financial Strategy presented in this
report. High priority infrastructure projects, categorized as extreme or very high risk,
include the following:
Asset Class
High Priority Projects
Replacement/
Project Cost
Roads
Various road safety items and
rehabilitation of deteriorated paved
and gravel roads, as outlined in the
Road Study reports
$1,348,550
Bridges & Culverts
Various repairs to address safety
issues as outlined in the OSIM report
$1,875,000
Water
Repair/replacement of aged fire
hydrants and fire hydrant leads
$3,401,618
Wastewater
Replacement of aged manholes
$1,257,300
Stormwater
Replacement of aged stormwater
mains and manholes
$4,042,752
Buildings
Repair of critical facilities, including
fire stations
$615,000
Land improvements
None
-
Fleet
Replacement of aged fire and roads
vehicles
$4,829,200
Machinery & Equipment
Replacement of aged fire department
and roads equipment
$272,843
62
A more detailed list of priority projects is included in Appendix C.
Note that many assets in the very high and extreme risk categories have conditions
determined by age and should have their condition verified prior to prioritizing lifecycle
activities. For example, aged stormwater mains and manholes have a high priority
replacement value of over $4M. Completion of CCTV condition assessment of the storm
sewer system is likely to reveal that only a portion of the network requires attention in the
short term.
63
Lifecycle Activity Categories
Lifecyle Activity Options and Risks
Asset Class Lifecycle Strategies
- Operating Budget
Asset Class Lifecycle Strategies
- Capital Budget
LIFECYCLE MANAGEMENT
STRATEGY
64
8. Lifecycle Management Strategy
8.1 Lifecycle AcƟvity Categories
The Township's lifecycle management strategy details the use of a combination of
lifecycle activities that maintain current levels of service while striving to optimize costs
based on defined risk. This strategy includes activities for maintenance, rehabilitation and
replacement, and regular investments in planning studies, while continuing to prepare for
population change and introduce service improvements. The standard lifecycle activity
categories are defined in the following table.
Lifecycle Activity
Definition
Acquisition
Adding new assets or improving an existing asset through
purchasing, design and construction, or assumption.
Operations &
Maintenance
The ongoing management of deterioration, including all
actions necessary for retaining or returning an asset as near
as practicable to an appropriate service condition including
regular ongoing day-to-day work necessary to keep assets
operating.
Rehabilitation
Significant treatment intended to restore an asset to its
former condition, thus extending its useful life.
Replacement
Activities that are expected to occur once an asset has
reached the end of its service life and rehabilitation is no
longer an option.
Disposal
Activities associated with the disposal of a decommissioned
asset including sale, closure, decommissioning or
relocation.
Non-infrastructure
solutions
Activities that consider how to influence, plan and manage
assets, including planning studies, process improvements
and technology implementation
When feasible, the Township strives to optimize asset lifecycle activities by coordinating
and synchronizing work across multiple assets or asset categories, which can result in
cost and service efficiencies.
8.2 Lifecycle AcƟvity OpƟons and Risks
O. Reg. 588/17 requires the identification of the lifecycle activities required to be
undertaken for each asset category to maintain the current levels of service over a ten-
year period. Options for lifecycle activities are to be considered along with associated
costs and risks. Asset-specific lifecycle activity options are included in the following report
sections, however there are two general approaches that are relevant to all asset classes:
65
Proactive maintenance of assets; or,
Reactive repair and replacement of assets.
A proactive approach to asset maintenance is utilized by the Township for most assets.
The benefits of this approach include:
Extended Asset Lifespan: Proactive maintenance involves timely interventions
to address minor issues before they escalate into major problems. By identifying
and addressing potential infrastructure issues early on, the overall lifespan of the
assets is extended. This aligns with the overarching goal of lifecycle activity
analysis, ensuring that assets remain in optimal condition for as long as possible.
Cost Savings: Early identification and remediation of maintenance issues can
lead to significant cost savings in the long run. Proactive maintenance is more cost-
effective than reactive measures, as it prevents the need for extensive repairs or,
in some cases, full-scale replacements.
Enhanced Safety and Performance: Proactive maintenance contributes to
improved infrastructure safety and performance. Regular inspections and
interventions help identify and address potential safety hazards, ensuring that
infrastructure meets or exceeds established levels of service.
Optimized Capital Planning: By systematically maintaining assets, the Township
can better plan and allocate their capital budgets. Proactive maintenance allows
for a more predictable expenditure pattern, enabling better financial planning and
resource allocation.
Community Satisfaction: Well-maintained municipal assets contribute to overall
community satisfaction. Proactive maintenance measures, such as timely repairs
and improvements, have a positive impact on the quality of life for residents.
The risks associated with a reactive approach to asset lifecycle activities include:
Asset deterioration and reduced lifespan
Increased repair costs
Service disruptions and operational inefficiencies
Public safety concerns
Environmental degradation
Negative community perception
Inefficient resource allocation
The Regulation requires similar information and analysis for the lifecycle activities
required to achieve the Township's proposed levels of service. This information is
included in the following sections.
66
8.3 Asset Class Lifecycle Strategies - OperaƟng Budget
The majority of the asset lifecycle activities outlined in Section 8.1 are funded through the
capital budget, including acquisition, rehabilitation, replacement and disposal.
Operations and maintenance activities are funded from the operating budget, while non-
infrastructure solutions can be funded through capital or operating.
Infralevel completed a line-by-line review of all operating expenditures included in the
Township's 2024 Operating Budget and determined which expenditures, or portions of
expenditures, are attributable to asset management functions. These functions mainly
relate to operations and maintenance activities.
The review process also yielded an understanding of the lifecycle activities undertaken
within each department and for each asset class. The following table and chart outline
the 2024 operating expenditures related to asset management.
Asset Class
2024 Asset Management Operating
Expenditure
Roads
$1,060,508
Bridges & Culverts
$9,201
Stormwater
$98,141
Water
$541,849
Wastewater
$199,860
Buildings
$706,119
Land Improvements
$102,268
Fleet
$126,971
Machinery & Equipment
$23,420
Total
$2,868,336
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It is understood that the Township's operations and maintenance expenditures, while
controlled through a diligent budget process, are adequate to maintain current levels of
service. Therefore, no funding gap has been identified in relation to actual operating
expenditures versus the operating expenditures required to achieve the current levels of
service.
A review of the impact of proposed levels of service on the operating budget was
completed to determine the adequacy of funding and the potential need to increase the
operating budget over the 10-year period over which proposed levels of service are
phased in. The only proposed level of service that impacts the operating budget is the
increased planting of trees. The cost of this initiative is estimated at $5,000 annually,
which can be accommodated within the existing operating budget and planned increases
over the next 10 years.
8.4 Asset Class Lifecycle Strategies - Capital Budget
The capital budget includes tax-supported and rate-supported expenditures required to
rehabilitate, renew and replace Township assets, as detailed in the following report
sections.
8.4.1 Roads
8.4.1.1 Lifecycle Model
For illustration purposes, a typical lifecycle model for the management of road pavements
is provided below.
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Operations & Maintenance Expenditures
by Asset Class
68
Inspection, operation and maintenance activities typically occur throughout the life of the
asset. They ensure that the asset is functioning as intended and is safe for users.
Early life interventions like crack sealing, minor repairs and minor resurfacing over a
localized area or small section of pavement are some of the treatment options considered
when an asset is in the first quarter of its life.
Mid-life intervention activities are considered when an asset is in the second or third
quarter of its life. For road pavement assets, these interventions would include larger
section resurfacing and full roadway rehabilitation. These actions reset the degradation
curve.
As indicated in the lifecycle model above, later life intervention activities such as
reconstruction can be deferred significantly through diligent rehabilitation. In some cases,
reconstruction is only considered for road widening, underground infrastructure
replacement or change of use.
69
8.4.1.2 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to road assets:
Asset
Lifecycle Activity
Description
Paved roads
Maintenance
Crack sealing, overlay, pothole filling,
patch repairs
Rehabilitation
Surface treatment, mill and pave, pulverize
and pave
Replacement
Road reconstruction, including full granular
replacement
Gravel roads
Maintenance
Localized repair, dust suppression
Rehabilitation
Gravel top-up and grading
Upgrade
Surface treatment, asphalt treatment and
gravel road reconstruction and widening
Streetlights,
Sidewalks,
Culverts, Signs
& Guardrails
Maintenance
Reflectivity testing, cleaning, debris clean
out/flushing
Rehabilitation
Component replacement, localized repair
Replacement
Full replacement
The gravel road study prepared by Spriet Associates identifies that site-specific
restoration such as gravel top-up and grading is much less costly than upgrading a road
from gravel to asphalt or surface treated. Similarly, for asphalt paved roads, maintenance
and rehabilitation works are more cost effective than full replacement. Therefore,
maintenance and rehabilitation activities are preferred as the methodology to maintain
the current levels of service for the lowest cost.
8.4.1.3 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for roads is summarized in the following figure.
It provides an estimate of the costs associated with maintaining all of the Township's
paved and gravel roads, and other transportation assets, at their current levels of service.
Costs are based on information included in the Paved Road Study and Gravel Road
Study, and for other transportation assets, from the Town's asset management software.
70
The average annual expenditure for road assets over the next 10 years is $1,086,612.
Proposed levels of service for roads include metrics for the percentage of assets in fair
condition or better. The proposed levels of service do not impact the lifecycle expenditure
forecast, as the proposed performance levels will be met through the completion of the
lifecycle activities identified through the detailed paved and gravel road condition
assessments.
8.4.2 Bridges and Culverts
8.4.2.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to bridge and culvert assets:
Asset
Lifecycle Activity
Description
Bridges
Maintenance
Erosion protection, joint cleaning, end
treatment repairs
Rehabilitation
Concrete repairs, road surface repaving
Replacement
Full bridge removal and replacement
Culverts
Maintenance
Vegetation removal, clean-out
Rehabilitation
Lining, partial replacement
Replacement
Full culvert replacement
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Roads
Paved
Gravel
Streetlights/
Sidewalks/
Culverts/Signs
71
The maintenance and rehabilitation activities outlined above represent an efficient means
of minimizing the cost of ownership over the life of the assets.
8.4.2.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for bridges and culverts is summarized in the
following figure. It provides an estimate of the costs associated with maintaining all of the
Township's bridges and culverts at their current levels of service. Costs are obtained from
the most recent OSIM report. The report presents short term costs in specific years from
year 1 to year 5, whereas longer term costs are lumped into a 'year 6 to year 10' category.
The longer-term costs have been spread evenly over these years.
The average annual expenditure for bridges and culverts over the next 10-years is
$337,710.
Proposed levels of service for bridges and culverts include metrics for the percentage of
assets in fair condition or better. The proposed levels of service do not impact the lifecycle
expenditure forecast.
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Bridges & Culverts
Bridges
Culverts
72
8.4.3 Stormwater
8.4.3.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to stormwater assets:
Asset
Lifecycle Activity
Description
Catchbasins,
manholes &
storm mains
Maintenance
CCTV inspections, storm main flushing,
catchbasin cleanout
Rehabilitation
Concrete repairs
Replacement
End of life replacement
Stormwater
management
ponds
Maintenance
Outlet cleaning, vegetation removal
Rehabilitation
Pond dredging/cleanout
Replacement
Not typically required
8.4.3.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for stormwater assets is summarized in the
following figure. It provides an estimate of the costs associated with maintaining all of the
Township's stormwater assets at their current levels of service. Costs are obtained from
the Township's asset management software. The projection reflects backlog work in 2024
and future needs for the relatively new infrastructure residing beyond the 10-year
forecast.
73
The average annual expenditure for stormwater assets over the next 10-years is
$127,128.
Proposed levels of service for stormwater assets include the implementation of a CCTV
condition assessment program to include the assessment of all stormwater mains on a
10-year cycle. The associated costs have been included in the lifecycle expenditure
forecast.
8.4.4 Water
8.4.4.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to water assets:
Asset
Lifecycle Activity
Description
Hydrants,
valves &
equipment
Maintenance
Valve turning, hydrant flushing
Rehabilitation
Component repair and replacement
Replacement
Full asset replacement
Watermains
Maintenance
Flushing, water quality testing, pressure
testing
Rehabilitation
Swabbing, relining, localized
repair/replacement
Replacement
Full replacement for end of life or upsizing,
coordinated with road and water projects
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Stormwater
Stormwater
74
8.4.4.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for water assets is summarized in the following
figure. It provides an estimate of the costs associated with maintaining all of the
Township's water assets at their current levels of service. Costs are obtained from the
Township's asset management software.
The average annual expenditure for water assets over the next 10-years is $384,986.
Proposed levels of service for water assets include metrics for the number of drinking
water non-compliances. The proposed levels of service do not impact the lifecycle
expenditure forecast.
8.4.5 Wastewater
8.4.5.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to wastewater assets:
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Water
Water
75
Asset
Lifecycle Activity
Description
Lagoons
Maintenance
Inspection, grit removal, embankment
maintenance, removal of material from
inlets and outlets
Rehabilitation
Sludge removal
Replacement
Replacement of lagoons and
appurtenances
Manholes,
equipment &
mains
Maintenance
CCTV inspection, flushing
Rehabilitation
Localized main and lateral repairs,
concrete manhole repairs
Replacement
Full replacement for end of life or upsizing,
coordinated with road and water projects
8.4.5.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for wastewater assets is summarized in the
following figure. It provides an estimate of the costs associated with maintaining all of the
Township's wastewater assets at their current levels of service. Costs are obtained from
the Township's asset management softwarstorme.
The average annual expenditure for wastewater assets over the next 10-years is $98,896.
Proposed levels of service for wastewater assets include the implementation of a CCTV
condition assessment program to include the assessment of all wastewater mains on a
10-year cycle. The associated costs have been included in the lifecycle expenditure
forecast.
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Wastewater
Wastewater
76
8.4.6 Buildings
8.4.6.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to its building assets:
Asset
Lifecycle Activity
Description
Buildings
Maintenance
Inspections, cleaning, equipment
maintenance, minor repairs and
component replacements
Rehabilitation
Mid-life renewal of facilities and major
overhauls and modernization of
equipment, such as roof replacement,
HVAC replacement, window and door
replacement
Replacement
Building demolition and construction of
new facility, often driven by functionality
requirements
8.4.6.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for building assets is summarized in the
following figure. It provides an estimate of the costs associated with maintaining all of the
Township's building assets at their current levels of service. Costs are obtained from the
2024 Infralevel Building Condition Assessment reports.
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Buildings
Buildings
77
The average annual expenditure for building assets over the next 10-years is $827,483.
Proposed levels of service for building assets include condition metrics, energy reduction
targets and climate change adaptation projects. The associated costs have been
included in the lifecycle expenditure forecast.
8.4.7 Land Improvements
8.4.7.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to land improvement assets:
Asset
Lifecycle Activity
Description
Parks,
playgrounds,
splash pads &
sports
structures
Maintenance
Inspections, flushing, cleaning, minor
repairs
Rehabilitation
Park component replacements, major
splash pad repairs and upgrades, major
repair or partial replacement of sports
structures
Replacement
Full replacement of play structures, splash
pads and water infrastructure, replacement
of sports structures
Lighting, fencing
& parking lots
Maintenance
Inspections, pothole patching, bulb
replacements, minor fencing repairs
Rehabilitation
Localized pavement replacement, lighting
fixture replacement, fencing section
replacement
Replacement
Full replacement of light poles and fixtures,
fencing replacement, repaving of parking
lots
8.4.7.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for land improvements is summarized in the
following figure. It provides an estimate of the costs associated with maintaining all of the
Township's land improvement assets at their current levels of service. Costs are obtained
from the Township's asset management software.
78
The average annual expenditure for land improvement assets over the next 10-years is
$251,055. The chart portrays significant backlog work required in the short term.
Proposed levels of service for land improvement assets include annual tree planting
targets. The associated costs will be included in the operating budget and do not impact
the capital expenditure forecast.
8.4.8 Fleet
8.4.8.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to fleet assets:
Asset
Lifecycle Activity
Description
Fleet
Maintenance
Inspections, regulatory maintenance, oil
change, tire rotation
Rehabilitation
Collision repair, component replacement
such as breaks, transmission and shocks
Replacement
Sale of vehicle and replacement with new
vehicle
8.4.8.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for fleet is summarized in the following figure.
It provides an estimate of the costs associated with maintaining all of the Township's fleet
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Land Improvements
Land Improvements
79
assets at their current levels of service. Costs are obtained from the Township's asset
management software.
The average annual expenditure for fleet assets over the next 10-years is $607,660.
Proposed levels of service for fleet assets include a target to maintain at least 70% of the
fleet within its expected useful life. The associated costs have been included in the
lifecycle expenditure forecast.
8.4.9 Machinery & Equipment
8.4.9.1 Lifecycle Management AcƟviƟes
The Township undertakes the following lifecycle activities to maintain the current levels of
service related to machinery and equipment assets:
Asset
Lifecycle Activity
Description
Machinery &
equipment
Maintenance
Inspection, cleaning, minor repairs
Rehabilitation
Major repair or component replacement
Replacement
Full replacement of machinery and
equipment
8.4.9.2 Lifecycle Expenditure Forecast
The ten-year lifecycle expenditure forecast for machinery and equipment is summarized
in the following figure. It provides an estimate of the costs associated with maintaining all
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Fleet
Fleet
80
of the Township's machinery and equipment assets at their current levels of service.
Costs are obtained from the Township's asset management software.
The average annual expenditure for machinery and equipment assets over the next 10-
years is $84,705.
Proposed levels of service for machinery and equipment assets include metrics for the
percentage of assets in fair condition or better. The associated costs have been included
in the lifecycle expenditure forecast.
8.4.10 Total Capital Expenditure Forecast
The following chart summarizes the total capital expenditures forecast for the next ten
years, broken out between tax-supported expenditures and rate-supported expenditures.
Of note, there is a backlog of capital requirements in year one of the evaluation period.
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Lifecycle Expenditure Forecast
Machinery & Equipment
Machinery & Equipment
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Tax and Rate Supported
Expenditure Forecast
Tax Supported
Rate Supported
81
Impact of Growth on Lifecycle
Activities
Impact of Growth on the Financial
Strategy
Growth Management Plan
GROWTH IMPACTS
82
9. Growth Impacts
Future growth and development have the potential to contribute to a more economically
vibrant, healthy and sustainable Township. However, there is an impact on both capital
and operating expenditures as growth continues, since population growth changes
demographics and expectations, demand, and usage of infrastructure. Planning for
growth is primarily documented in the Township's Development Charge (DC) Background
Study, dated December 2022, and Official Plan, dated 2021 (office consolidation). Future
population and employment growth is quantified and projected as follows.
Population Growth
As of mid-2022, the Township population was approximately 3,622. The Town's
DC Background Study projects a population of 4,331 in 2032 and 4,787 in 2036.
Employment Growth
The DC Background Study indicates that total employment for the Township is
anticipated to reach approximately 1,905 by 2031 and 2,120 by 2036. This
represents an employment increase of approximately 355 for the period between
2021 and 2031, and 570 for the period between 2021 and 2036.
The demand on the Township's infrastructure assets will change over time based on
several contributing internal and external factors, including growth. One effect that growth
will have on the Township's assets is increased demand resulting in higher usage and
accelerated deterioration of some existing assets. Planning for population growth may
require expansion of the infrastructure network (e.g., roadway widening, sewer system
expansion and upsizing, etc.) to ensure the appropriate levels of service can be
maintained. Additionally, as the asset portfolio increases in size and value due to the
assumption of new developments, maintenance and renewal of the new assets will
require more resources including operations, maintenance and rehabilitation.
9.1 Impact of Growth on Lifecycle AcƟviƟes
The assumptions regarding future changes in population and economic activity inform the
Township's lifecycle management strategy. The following table summarizes the
anticipated impacts of growth on the lifecycle activity categories previously identified in
Section 8.
83
Lifecycle Activity
Growth Impacts
Acquisition
Growth triggers the expansion of municipal services, which
requires additional asset acquisition activities. Funding for
acquisition is commonly achieved through development
charges and direct developer contributions.
Operations &
Maintenance
Once acquired or assumed, new assets that accommodate
growth require standard O&M activities to ensure longevity.
A growth factor is typically applied to the current O&M
lifecycle costs to plan for expected growth.
Rehabilitation
Frequency of use of assets will increase and will require
either enhanced or more frequent rehabilitation. With
increased usage, some assets are more prone than others
to accelerated degradation.
Replacement
The effects of growth may impact the timing of implementing
replacement activities for some assets. For example,
increased wear and tear on equipment that is utilized until
failure may shorten the lifecycle of the asset.
Disposal
Disposal costs are relatively minor in relation to the other
lifecycle activities, with costs likely to increase consistent
with the Township's growth factor.
Non-infrastructure
Solutions
With growth there will be increased requirement for, and
benefit derived from, non-infrastructure solutions such as
education, usage management and master planning.
9.2 Impact of Growth on the Financial Strategy
Population and economic growth impact lifecycle management activities as noted above,
which must be factored into the Township's financial strategy. In terms of operating
budget impacts, increased revenue from taxation, user fees and other sources is
assumed to adequately address the increased costs of infrastructure operations and
maintenance.
The impacts of growth on the capital budget are partially addressed through the DC
Background Study, which identifies numerous projects to add new assets, expand or
replace facilities, improve roadway intersections, add new sanitary sewers and upsize
watermains.
84
9.3 Growth Management Plan
The Township actively manages growth through various processes including the
preparation of a DC background study, departmental master plans, annual capital and
operating budgets, and the Official Plan.
The following recommendations are made to enhance the maturity of the Township's
growth management planning, and further develop a strategic framework that guides
growth and development in a sustainable and organized manner.
The effectiveness of lifecycle activities should be monitored and analysed to
ensure that rehabilitation and replacement activities are timed in an optimized
manner. Timing may change based on increased usage associated with
population growth.
Complete and update departmental master plans on a regular basis to ensure
growth projections are accommodated and founded on current data.
Monitor the changing demographics of residents over time and plan for the
associated changes in demand for infrastructure. Seek user input through public
consultation, surveys or other means.
Monitor the advancement of technology to leverage new technologies that support
lifecycle management and the efficient and effective delivery of services.
Continue to incorporate the most up-to-date growth projections in the Township's
financial strategy to ensure change is managed proactively and in a financially
sustainable manner.
Options for achieving the current and proposed levels of service may change as
the Township grows. Complete a regular review of lifecycle activities to ensure the
lifecycle management program achieves the desired levels of service at the lowest
cost.
85
Tax-Supported Assets
Rate-Supported Assets
FINANCIAL STRATEGY
86
10. Financial Strategy
The financing strategy outlines the recommended use of various funding sources to
finance the asset management strategy and levels of service recommendations. The
strategy is separated for tax-supported assets and rate-supported assets.
The financing strategy provides a framework through which the Township can strive to
achieve long-term financial sustainability. The strategy strives to maintain a balance
between three pillars: financial sustainability, financial vulnerability and financial flexibility.
Asset Management supports all three pillars of the strategy.
10.1 Tax-Supported Assets
10.1.1 Funding Sources
The funding sources included in the financial strategy for tax-supported assets include
the following:
Financial Sustainability
The Township's ability to provide and maintain planned service
levels and infrastructure assets without unplanned increases
in rates or disruptive cuts to services.
.
Financial Vulnerability
The degree to which the Township is dependent on external
funding sources that it cannot control; it is the level of risk that
could impact the ability to meet existing financial obligations
and commitments, including the delivery of services.
Financial Flexibility
The Township's ability to change either debt levels or taxes
and utility rates to meet financial obligations and ensure
intergenerational equity.
87
Funding Sources
Taxation
Facility rentals
Payments in lieu of taxation
Wind turbine and landfill fees
User fees
Cemetery fees
Grants
Development Charges
Investment and interest income
Miscellaneous items
Over the 10-year evaluation period, these funding sources are anticipated to provide, in
a sustainable manner, a total of $29,600,000 for tax-supported asset management
funding purposes.
10.1.2 Funding Needs
The following table and chart summarize the Township's asset lifecycle funding needs for
tax-supported assets over the next 10 years, as determined by the Lifecycle Management
Strategy.
Asset Class
10-Year Funding Need
Roads
$10,866,124
Bridges & Culverts
$3,377,100
Stormwater
$1,271,282
Buildings
$8,274,828
Land improvements
$2,510,549
Fleet
$6,076,600
Machinery & Equipment
$847,052
Total Funding Need
$33,223,535
88
10.1.3 Funding Gap
Analysis of the Township's asset lifecycle needs over the next 10 years, in comparison
with the available capital funding, provides an indication of the annual funding gap for tax-
supported assets.
10-Year Funding Gap
Funding Need
$33,223,535
Funding Available
$29,600,000
Funding Gap
$3,623,535
The identified funding gap is $3,623,535 over the next ten years; or $362,353 per year.
In comparison to funding gaps identified by similar municipalities in Ontario, this gap is
considered quite small.
10.1.4 OpƟons to Bridge the Funding Gap
There are several options available for funding the infrastructure gap for tax-supported
assets. These options can be categorized into various sources of revenue and financing
mechanisms, including:
Own-Source Revenue Growth: The funding gap identified for tax-supported
assets is based on current levels of own-source revenues, however growth is
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Capital Lifecycle Expenditure Forecast (10 Years)
By Asset Class
10-Year Funding Need
89
expected from taxation and other sources. Implementation of a 1% or 2%
infrastructure levy may also be considered.
Reserve Funds: Reserves related to asset management, such as the Capital
Projects Reserve and Drainage Reserve, have been built up over time and
represent an appropriate source of funding to address the gap.
User Fees and Charges: The Township imposes user fees and charges for
specific services and facilities, such as waste collection, recreation programs, and
permits. These fees can be structured to cover the costs of providing the services
and generate revenue to support infrastructure maintenance and improvements.
Implementation of a stormwater charge may be considered as a means of
providing dedicated funding for stormwater assets.
Grants and Federal Funding: The Township receives various grants from upper
levels of government. These grants are typically earmarked for specific types of
infrastructure projects, such as transportation improvements or recreation facility
renewal. Securing additional grants and external funding can help alleviate the
financial burden on municipalities and support critical infrastructure investments.
Although every effort should be made to increase grant funding as a means of
reducing the infrastructure gap, increased grant funding has significant uncertainty
and as such, it is not prudent to budget for potential increases.
Borrowing and Debt Financing: The Township can issue bonds, debentures, or
other forms of debt to finance infrastructure projects. Debt financing allows
municipalities to spread the cost of infrastructure investments over time and
leverage future revenue streams to fund projects upfront. However, borrowing
entails interest costs and repayment obligations, and the current rate environment
is less favourable than recent years.
Asset Monetization and Leasing: The Township may explore opportunities to
monetize or lease existing infrastructure assets to generate revenue. This may
include selling surplus property, leasing municipal facilities to private operators, or
entering into long-term lease agreements for infrastructure assets. Asset
monetization can provide an immediate infusion of funds and unlock the value of
underutilized assets, however implications for service delivery and public
ownership must be considered.
There are other initiatives that can be undertaken that seek to minimize the funding gap
as opposed to funding its full amount. These include:
Implement Operational Efficiencies: Identify opportunities to improve
operational efficiencies within the municipality to generate cost savings and/or
additional revenue streams. This may include streamlining administrative
90
processes, optimizing resource allocation, renegotiating contracts with vendors,
and implementing technology solutions to automate tasks and reduce operational
expenses. By maximizing efficiency, the municipality can free up resources to
allocate towards addressing the funding gap.
Enhance Asset Condition Data: Invest in improving asset condition data
collection, analysis, and management systems. By enhancing the accuracy and
reliability of asset condition data, the municipality can make more informed
decisions about asset maintenance, rehabilitation, and replacement, ultimately
optimizing asset lifecycle management and minimizing long-term costs. The use
of age as a proxy for the condition of underground infrastructure such as storm
sewer mains, often results in overstated investment projections and a larger
funding gap than actual condition data may justify.
Apply Risk-Based Prioritization: The risk assessment completed as part of this
asset management plan identifies high risk assets and prioritizes projects
accordingly. By comparing the risk rating of each asset to the Township's risk
tolerance level, opportunities may be identified to adjust lifecycle activities for low-
risk assets with relatively high tolerance levels for risk.
10.1.5 Funding RecommendaƟons
Although infrastructure levies and borrowing can be implemented relatively quickly and
effectively to bridge the funding gap, the use of these tools is generally minimized where
possible at a time of affordability challenges for residents and in a fairly high interest rate
environment. Increased user fees pose a similar concern to affordability.
Asset monetization and grant increases can inject one-time funding helpful in decreasing
the funding gap, however these are unpredictable opportunities that are difficult to budget
for with certainty.
The Capital Projects reserve fund has a current balance of approximately $2.9M and is a
potential source to bridge the identified funding gap, however maintaining and growing
this reserve is considered good practice and represents pro-active planning in preparation
for future strategic projects.
Assessment of projected own-source revenue growth over the 10-year evaluation period
indicates that sufficient revenues will be generated to fully address the identified funding
gap. To minimize reliance on these funds, the following actions are recommended:
Implement operational efficiencies and enhance condition data, as noted above
Transfer any annual operating surpluses to capital reserves
Enhance operations and maintenance activities to extend the useful life of assets
and decrease overall lifecycle expenditures
Seek additional grant funding where possible
91
Consider the implementation of a stormwater charge to fully fund stormwater
assets, thus minimizing the funding gap
10.2 Rate-Supported Assets
10.2.1 Funding Sources
The primary funding source for water and wastewater infrastructure is the utility rate
charged to customers based on a fixed rate and the volume of consumption. Secondary
funding sources include miscellaneous fees for services such as connections and lagoon
land rental income.
Based on the Township's Water and Wastewater Rate Study report, The Township has
budgeted for a 5% annual rate increase for both the water and wastewater systems from
2019 to 2029. The 5% increase has been extended from 2029 to 2033 for the purposes
of the evaluation period utilized in this asset management plan.
Over the 10-year evaluation period, the water and wastewater funding sources are
anticipated to provide, in a sustainable manner, a total of approximately $7,500,000 for
rate-supported asset management funding purposes.
10.2.2 Funding Gap/Surplus
Analysis of the Township's asset lifecycle needs over the next 10 years, in comparison
with the available capital funding, provides an indication of the annual funding gap (or
surplus) for rate-supported assets.
Item
Asset Class
Amount
10-Year Funding Need
Water
$3,850,000
Wastewater
$989,000
Total
$4,839,000
10-Year Revenue
Water
$6,075,000
Wastewater
$1,432,000
Total
$7,507,000
10-Year Funding Surplus
$2,668,000
92
As indicated in the table above, the total asset lifecycle needs for water and wastewater
infrastructure for the next 10 years is $4,839,000. Based on the $7,507,000 revenue
availability, this represents a funding surplus of $266,800 annually.
10.2.3 Long-Term Funding Needs
The Town's asset management software provides a long-term assessment of the
Township's water and wastewater funding needs. These needs are higher in the long-
term because the Township's water and wastewater infrastructure is relatively new
compared to its expected useful life, and does not require extensive replacement in the
next 10 years. The following table outlines the long-term funding requirements for these
assets.
Asset Class
Long-Term Funding Needs (Annual)
Water
$609,950
Wastewater
$331,533
Total
$941,483
Assuming a requirement to begin budgeting for these long-term funding needs after the
10-year evaluation period utilized for this plan, the Township's projected rate funded
revenue has been projected for the year 2034; it is estimated at $942,688, slightly higher
than the identified long-term funding needs outlined in the table above.
It is recommended that the annual funding surplus identified over the 10-year evaluation
period be contributed to water/wastewater reserves. It is also recommended that the 5%
annual increase for both the water and wastewater systems be continued to prepare for
the increased long-term cost projections.
93
Strategies
Initiatives
ADVANCING ASSET
MANAGEMENT MATURITY
94
11. Advancing Asset Management Maturity
The Township's asset management program is guided by industry best practices and
regulatory requirements. As the Township strives to optimize the management of its
infrastructure assets and ensure long-term sustainability, it is imperative to continually
advance asset management maturity across all departments and functions. This section
outlines the key strategies and initiatives aimed at enhancing asset management
practices and increasing maturity levels within the municipality.
11.1 Strategies
The Township's asset management program has matured significantly over the past
several years. Further development of the following strategies will assist the Township in
maturing its asset management program.
Establishment of Clear Governance Structure: Effective asset management
begins with clear governance structures that define roles, responsibilities, and
decision-making processes. The Township is committed to establishing and
maintaining a robust governance framework that aligns asset management
activities with organizational goals and objectives. This includes defining
accountability structures, establishing performance metrics, and fostering a culture
of transparency and accountability.
Integration of Asset Management Principles into Planning Processes: Asset
management principles are integrated into all phases of the planning process, from
strategic planning to capital budgeting and project prioritization. By aligning
infrastructure investment decisions with asset management objectives, the
Township ensures that resources are allocated efficiently to address the most
critical needs and maximize the lifespan of assets.
Capacity Building and Training: Building internal capacity and fostering a culture
of continuous learning are essential for advancing asset management maturity.
The township is committed to providing training and professional development
opportunities for staff at all levels to enhance their asset management knowledge
and skills. This includes workshops, seminars, certifications, and knowledge-
sharing initiatives to empower staff with the tools and resources needed to
effectively manage assets.
Engagement and Collaboration: Asset management is a collaborative effort that
requires engagement and collaboration across departments, disciplines, and
stakeholders. The Township actively engages with internal and external
stakeholders to solicit input, share best practices, and foster partnerships that
enhance asset management effectiveness. This includes regular communication,
95
stakeholder consultations, and participation in municipal networks and
associations.
11.2 IniƟaƟves
Improving asset management maturity requires a holistic approach that involves various
initiatives aimed at enhancing processes, systems, skills, and collaboration within a
municipality. Several initiatives have been identified through the completion of this asset
management plan that will advance the Township's asset management maturity:
-
The Township has invested in condition assessments for its facilities, roads,
bridges and large culverts. The condition data for these assets contributes
significantly to the completion of a robust asset management plan. Condition
assessments are recommended to be completed for the remaining assets where
practical, with priority placed on stormwater and sanitary sewer mains through the
use of CCTV inspections. This will allow for informed lifecycle renewal decision
making and decreased risk of service failures.
-
Flooding events and climate change trends highlight the importance of municipal
stormwater management infrastructure. It is recommended that the Township
consider the implementation of a stormwater charge that will incentivize best
practices, distribute costs equitably, provide predictable and sustainable funding to
stormwater infrastructure and eliminate the funding gap for this service area.
-
The Town has proactively completed a Climate Change Adaptation Plan for all of
its municipal facilities. It is recommended that the plan be extended to include the
remaining asset classes.
-
Update the data register with the current list of assets and associated data sets
such as replacement value in current dollars. Conduct periodic reviews of asset
inventories to identify redundant, underutilized, or non-essential assets.
-
Implement performance monitoring systems to track the condition, performance,
and service levels (current and proposed) of infrastructure assets over time.
-
Incorporate the risk management framework into future master planning
processes.
96
Appendix A
Definitions
97
Asset - An item, thing or entity that has potential or actual value to an organization. The
value can be tangible or intangible, financial or nonfinancial, and includes consideration
of risks and liabilities.
Asset management - The combination of management, financial, economic,
engineering, operational and other practices applied to physical assets with the objective
of providing the required level of service in the most cost-effective manner.
Asset management plan - A plan developed for the management of one or more
infrastructure assets that combines multidisciplinary management techniques (including
technical and financial) over the life cycle of the asset in the most cost-effective manner
to provide a specified level of service. A significant component of the plan is a long-term
cash flow projection for the activities.
Asset management policy - A high-level statement of an organization's principles and
approach to asset management.
Asset management strategy - A strategy for asset management covering the
development and implementation of plans and programs for asset creation, operation,
maintenance, rehabilitation/replacement, disposal, and performance monitoring to ensure
that the desired levels of service and other operational objectives are achieved at
optimum cost.
Asset register - A table which documents assets owned by the Township and the required
attributes that support asset management decision making. It contains pertinent details
about each fixed asset and is used to track information such as replacement value, age,
location, condition, criticality rating, etc.
Consequence of failure - The outcome or impact of an asset failing its condition or
capacity targeted level of service.
Customer levels of service - Measures that are expressed in non-technical terms that
describe the general public's understanding of services being provided by municipal
infrastructure.
Expected Useful Life - The estimated amount of team, typically in years, that an asset
is expected to maintain its performance or function.
Levels of service - The defined service quality for a particular activity or service area
against which service performance may be measured. Service levels usually relate to
quality, quantity, reliability, responsiveness, environmental acceptability, and cost.
Lifecycle costing - A method of expressing cost, in which both capital costs and
operations and maintenance costs are considered, to compare alternatives. Present
worth is one way to express life cycle costs. The present worth represents the current
investment that would have to be made at a specific discount (or interest) rate to pay for
the initial and future cost of the works.
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Lifecycle models - Mathematical, statistical and logistic models of planned actions as
well as the behaviour or deterioration of assets over time. They are used to forecast
required asset lifecycle activities and their impacts on levels of service, risk and funding
levels.
Likelihood of failure - The likelihood or probability of an asset failing to meet its targeted
levels of service.
Line of sight - The connection between the Township's high-level strategic objectives
and detailed day-to-day activities, carried out by the Township's staff, programs and
assets. It clearly illustrates how organizational objectives link to day-to-day activities.
Rehabilitation - Works to rebuild or replace parts or components of an asset, to restore
it to a required functional condition and extend its life, which may incorporate some
modification. Generally involves repairing the asset to deliver its original level of service
without resorting to significant upgrading or renewal, using available techniques and
standards.
Replacement - The complete replacement of an asset that has reached the end of its
service life, to provide an alternative that satisfies a targeted level of service.
Reinvestment - Funds allocated to capital projects that are rebuilding the existing
municipal infrastructure asset base. New capacities and operations are excluded from
infrastructure reinvestment decisions.
Risk - The effect of uncertainty on objectives. Risk is often expressed as the
consequences of an event in combination with the associated likelihood of that event
occurring.
Service life - The period that an asset provides an acceptable level of service. The
economic service life is defined as the period when the present worth of the future
maintenance costs are equal to the present worth of its replacement.
Technical levels of service - Technical measures applied against assets and overall
systems that define the performance requirements to support customer levels of service.
The are used to determine which criteria will be used to drive business decisions.
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Appendix B
Mapping
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103
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Road Condition Images
Asphalt (left) and gravel (right) roads in Good condition - minor deterioration
Asphalt (left) and gravel (right) roads in Very Good condition - no noticeable defects
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Asphalt (left) and gravel (right) roads in Fair condition - deterioration evident, function is affected
Asphalt (left) and gravel (right) roads in Poor condition - serious deterioration, function is inadequate
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Asphalt (left) and gravel (right) roads in Very Poor condition - no longer functional, general or complete
failure
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Bridge Conditions
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Storm Sewers
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Water Infrastructure
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Sanitary Sewers
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*
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Appendix C
Risk-Based Prioritization
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Appendix D
10-Year Financial Forecast
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