Corporate Asset Management Plan · 2019-07-05 · As an example, the following figure shows network...

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11116907 | 00 | Final | May 2017

Corporate Asset Management Plan 2016 Region of Niagara

GHD | Niagara AM Plan 2016 | 11116907 | Page i

Table of Contents 1 1.

2.

Executive Summary

Introduction 9

2.1 Overview 9

2.2 AM Plan Methodology 10

3. State of the Local Infrastructure 15

3.1 Public Works 20

3.2 Health & Community 30

3.3 General Government 35

4. Levels of Service 41

4.1 Introduction 41

4.2 LOS Framework 41

4.3 Current Performance 46

4.4 External Trends Affecting Levels of Service and Performance 50

4.5 Level of Service and Cost of Service Relationship 51

5. Asset Management Strategy 53

5.1 Future Growth 53

5.2 Asset Lifecycle Management Strategies 58

5.3 Procurement Methods 81

5.4 Risks Associated with the Strategies 82

6. Financing Strategy 83

6.1 Actual Expenditures 83

6.2 10-Year Capital Budget and Funding Sources 83

6.3 Future Renewal Investment Needs Projections 84

6.4 Funding Shortfalls 90

7. Monitoring & Improvement 95

7.1 Overview 95

7.2 Recommended Improvements 95

GHD | Niagara AM Plan 2016 | 11116907 | Page ii

1. Executive Summary

What do we own?

The Region owns a wide variety of assets to enable it to deliver services. These assets are organized in portfolios in this Asset Management (AM) Plan as follows:

PUBLIC WORKS HEALTH & COMMUNITY GENERAL GOVERNMENT

Transportation

Water & Wastewater

Waste Management

Public Health (including EMS)

Social & Community Services

Niagara Regional Housing

Facilities (Gov’t & Police)

Information Technology

Police (Fleet & IT)

What are our assets worth?

The estimated replacement value of assets owned by the Region is $7.39 billion, expressed in 2016 dollars. The value and proportion of each asset portfolio are shown below.

GHD | Niagara AM Plan 2016 | 11116907 | Page 1

What condition are our assets in?

The majority of the Region’s assets are in fair to very good physical condition. The condition grades of assets in each portfolio, by replacement value, are shown below. The condition summary does not include 4.4% of assets for which condition could not be estimated based on available data. $884 million of assets (13%), mostly in the transportation, water and wastewater portfolios, are in poor or very poor condition.

What strategies do we use to manage our assets over time?

For each asset portfolio, the Region has developed AM strategies: the activities over the lifecycle of the assets that the Region will undertake to sustain the assets to best enable delivery of services to current and future customers. These lifecycle activities include creation or acquisition, maintenance, rehabilitation, disposal, and replacement. Activities related to network expansion have not been included in this AM Plan.

As an example, the following figure shows network level AM strategies for arterial urban and suburban pavement. Rural roads follow a similar lifecycle strategy but have different per unit ($/m2) rehabilitation and replacement costs based on the 2015 Pavement Management Update Report by Applied Research Associates, Inc.


The lifecycle activities in the arterial (urban and suburban) pavement AM strategy are as follows:

• Create in year 0, at a cost of $250/m2

• Maintain through its life, at costs which vary by condition

• Resurface in years 21 and 42, at costs of $45/m2 each time

• Dispose and replace at year 66, at a cost of $250/m2.

What are the required renewal investments?

Continuing with the AM strategy example above, determining the costs to sustain the Region’s asset portfolios is then basic arithmetic:

• the sum of the renewal treatments divided by the life of the asset.

The average annual renewal investment (AARI) required to sustain the arterial (urban and suburban) pavement asset is:

• ($250/m2 + $45/m2 + $45/m2) ÷ 66 years = $5.15/m2 per year.

This means that, on average, the Region must invest $5.15 per year to sustain each square metre of arterial (urban and suburban) pavement that it owns (capital renewal, not including maintenance). The Region currently (2016) owns 5,265,587 m2 of arterial pavement, which means that it must invest $27.1 million per year in capital renewal funds to sustain this asset type.

The Region “optimizes” the lifecycle activities by searching out and testing various renewal activity and timing options (in conjunction with various maintenance techniques), and then evaluating the benefits against the costs of each option over time to determine the lowest cost option for the required benefits. Optimization is an ongoing process as evolving maintenance and renewal materials and techniques are applied in an effort to reduce costs and/or increase benefits (e.g., life extension).

The Region may choose to vary from the calculated renewal investment rate for a time due to factors such as the age of the infrastructure, accumulated backlog of work, the level of maintenance, risk tolerance, and available infrastructure renewal funding. However, eventually, asset renewal must be undertaken to avoid accumulation of large backlogs of work over time, and associated risk to service delivery.

Based on the AM strategies defined in this AM Plan, for all asset portfolios, the following figure shows the capital renewal investment amounts required for each year (as solid pink bars), the forecast average annual renewal investment (AARI) needed over the 50-year analysis period (dashed red line at $185.9M/yr), and the forecast average annual renewal investment needed over the first 10 years (solid red line at $225.1M/yr). Note that the significant “backlog” of work that is “due” in the first year ($546 million) drives the 10-year AARI higher than the 50-year AARI.


Using a simplistic methodology, although taxes are allocated based on assessed value and utility rates are based on consumption, each of the approximately 200,000 households in the Region would need to contribute on average $1,125 per year ($3.08 per day) in the short term and $929 per year ($2.55 per day) in the longer term to renew the current asset portfolios that enable delivery of the services for which the Region is responsible. This excludes services provided by the local area municipalities and other levels of government, and contributions from other sources of funding.

How will we fund the required renewal investments?

The Region programs asset renewal works through the 10-year capital budget which is funded through taxes and utility rates, debt, reserves, federal gas taxes, and other sources. The following figure focuses on the next ten year period. It shows the same 10-year forecast capital renewal needs as in the previous graph, with the forecast required capital renewal investment amounts shown as solid pink bars, and the average annual renewal investment over the 10 year period shown as a solid red line at $225.1 million per year.

In addition, the Region’s 10-year capital renewal budget (2016 to 2025) plus the 2015 and prior already approved budget for work-in-progress projects in the backlog is shown as a series of black outline bars. The Region’s current capital renewal program averages $151.8 million per year (excluding growth assets), leaving an average annual shortfall of $73.3 million per year. This shortfall is the difference between the solid red line and solid black line in Figure 6-13. The dashed black line shows the cumulative gap between the 10-year AARI (solid red line at $225.1M/yr) and each of the capital renewal budget amounts (black outline bars) over time.


Based on the Region’s current 10-year (2016 to 2025) capital renewal program, at the end of the ten year period shown, the current (2016) backlog of $546 million will grow to $733 million (2025). To eliminate the current backlog and contribute to those assets in need of renewal over the next ten years, the average of the current 10-year capital renewal program must be equal to the forecast 10-year average annual renewal investment amount (i.e., no gaps). Note that the "gap" is between the 10-year AARI and the 10-year capital renewal program. As the Region does not always deliver the entire 10-year capital renewal program due to unavailability of resources, the "gap" may be larger than stated.

As outlined previously, each household in the Region would need to contribute $1,125 per year ($3.08 per day) in the short term to renew the current asset portfolios but, based on the current capital renewal plan, each household is only contributing $759 per year ($2.08 per day). At the end of the ten year period, each household will owe an additional $3,665 to pay down the backlog.

The following figure shows the 10-year capital renewal budget expressed as an annual average (solid coloured bar) by asset area, compared to the forecast 10-year AARI (solid black outline) and the forecast 50-year AARI (dashed black outline).


For transportation assets, the above figure demonstrates that the Region is investing adequately over the next 10 years to both sustain its assets and to reduce the current backlog of work. The 2017 Master Transportation Plan will establish a long-term transportation vision for the Region and guide future capital plans for all travel modes.

For water and wastewater assets, the Region’s current plans for renewal investment are less than both the short and long term requirements. The Region is currently completing an updated Water and Wastewater Master Servicing Plan and will review the current 10-year capital renewal plan in conjunction with the recommendations of that Plan. Note that there is a substantial backlog of renewal works for both water and wastewater treatment facilities, and a review of the condition for these same assets shows significant proportions of assets in poor and very poor condition.

For both transportation and water / wastewater assets, the Region will have to balance the requirements for additional and upgraded assets, as outlined in the forthcoming master plans, against the needs to sustain the current asset portfolios as outlined in this AM Plan.

For Niagara Regional Housing, the 10-year AARI is shaped by the condition assessments from over four years ago (2011 and 2012). The Region’s current capital renewal investment plans take into account more recent information on the status of housing, and therefore reflect higher spending than the 10-year AARI. As the facilities age, this expenditure will need to continue to increase in the long-term as indicated by the higher 50-Year AARI.

How do we improve AM Plan development in the future?

Recommended improvements for future revisions of the AM Plan include:

• Develop and Implement an AM Governance Model: As part of the AM Road Map, it is recommended that the Region develop a corporate AM governance model to establish consistency of AM processes and practices across the organization.

• Tangible Capital Asset (TCA) Policy: The Region is currently revising a TCA policy that will formalize the process for creating, renewing, and disposing of assets in the fixed asset registry, including recording betterments, asset value, installation year and useful life.

• Asset Inventory: Generally, the Region should maintain a central asset inventory rather than multiple sources with duplicated and sometimes conflicting information. Inventories may be refined with planned future condition assessments.

• Buildings Inventory: For facilities, long term care and NRH buildings, the Region should improve its understanding of the asset portfolio through more detailed building condition assessments that assign a condition score and replacement value at the same level in the asset hierarchy. Standardizing the asset hierarchy used for all Region facilities will facilitate knowledge sharing, including development of optimal lifecycle strategies for various facility elements.


• Water & Wastewater Vertical Infrastructure Inventory: Similar to facilities, the Region should refine these replacement values over time to further improve the overall condition estimates.

• Condition: An accurate condition assessment date should be maintained for all condition assessments, such that the condition information can be used accurately in subsequent analysis.

• Refinements to the estimated service life and treatment strategies: As the Region better understands the costs and benefits of various renewal and maintenance treatments and timings, asset service life values and maintenance and renewal strategies should be reviewed and updated to reflect observed deterioration rates and benefits.

• Planned Growth: The Region is currently developing Master Plans for transportation and water/wastewater, and should include growth assets in future updates to this AM Plan.

The Region has recently undertaken a review of its AM practices and laid out a roadmap of AM improvement initiatives over the next five years. The recommendations provided above are specific to the production of this AM Plan and complement those included in the AM Gap Analysis and Road Map.



2. Introduction

2.1 Overview

The current (2014-2018) Region of Niagara Council, with senior Regional management, has developed a focused action plan to support a new economic path for Niagara, outlined in the report titled “Looking Out to Focus In – Fostering an Environment for Economic Prosperity”. From the introductory section:

“Economic prosperity emerges as the prominent theme throughout the national, provincial and local agendas. And, while it is the private sector that generates wealth for the economy and creates jobs, governments can play a key role in fostering the conditions for economic competitiveness through investments in sound infrastructure, seamless transportation networks, highly skilled labour markets and favourable trade conditions. The research suggests that a narrow focus on supporting economic prosperity in Niagara is our best opportunity to deliver the greatest community impact over the next few years.”

This Asset Management Plan (AM Plan) is a medium to long range planning document that supports the Region’s vision and immediate priorities by strategically building Niagara’s infrastructure based on sound economic principles to support economic growth and sustainability, while also balancing other economic, social and environmental goals.

This AM Plan provides a guide to understanding key items such as:

• The size, replacement value, and condition of the Region’s asset portfolio

• Expected levels of service and the Region’s performance relative to them

• Lifecycle management to prolong asset life and minimize lifecycle costs

• Funding forecasts to sustain the Region’s asset portfolio and support optimal decision making

• Key asset management practice improvement actions.

AM planning is a key tactical (medium term) planning activity that relies on input from strategic (long term) planning activities and informs operational (short term) decision-making. The AM Plan relies on input from the Region’s vision and official plan, and provides a framework to assist the Region in developing appropriate budget forecasts and annual capital and operating programs.

Key stakeholders of this AM Plan include:

• External Stakeholders

− The Region of Niagara community

− Regulatory agencies (Federal and Province of Ontario)

• Internal Stakeholders


− Regional Council − Chief Administrative Officer and departmental senior management − Departmental staff.

2.2 AM Plan Methodology

The body of this AM Plan is presented in a consistent manner based on the “Guide for Municipal Asset Management Plans”, 2012, originally issued by the Ontario Ministry of Infrastructure. For ease of benchmarking with other municipalities in Canada, the asset hierarchy breakdown is generally consistent with the Ministry of Municipal Affairs Financial Information Return (FIR) database and the 2016 Canadian Infrastructure Report (CIRC).

The AM Plan was developed by GHD Limited in collaboration with Region staff through:

• Review of background materials available on the Region’s web site and provided by the Region’s project team

• Workshops with internal stakeholders held from September to December 2016 including kick-off, state of local infrastructure, levels of service, AM strategies, and financing strategies

• Numerous data and information transfers

• Review of interim outputs by the Region’s project team and other stakeholders, and incorporation of comments into the AM Plan.

2.2.1 State of Infrastructure

Asset inventories are taken from various sources as outlined in Table 2-1 below.

Financial accounting valuation uses historical costs and depreciation assumptions to determine the book value of capital assets in accordance with the PSAB. Policies and procedures relating to the development of net book values for accounting purposes have been developed by the Finance Department to comply with PSAB 3150 Tangible Capital Assets reporting. The replacement cost valuations are presented in current (2016) dollars. This valuation does not account for technology improvements.

In this AM Plan, the term “condition” refers to the degree of physical deterioration of a group of assets, an asset or an asset element. “Performance” is a more general term that typically describes an asset’s ability to achieve levels of service, and can refer to: (i) the state of physical condition, (ii) the capacity relative to demand, and/or (iii) the ability to perform intended functions. An ongoing condition assessment program evaluates current physical condition, determines rate of deterioration over time, enables forecasts of future condition, and informs the most beneficial type and timing of treatment. Condition assessment methods and rating systems have become relatively standard for many assets but vary depending on the type of asset. For those assets with no condition data, age-based “condition” is estimated as % Life Remaining = (Expected Useful Life – Age) / Expected Useful Life. Using age data as a surrogate for


condition data is widely used in municipal organizations, but it can be misleading as age does not directly reflect condition.

The sources of inventory and replacement value are as outlined in Table 2-1 below.

Table 2-1 Sources of AM Plan Data


Asset Portfolio Inventory Replacement Value

Public Works

Transportation

Pavement Excel file: 510_Transportation

Engineering_2016_Road_Database Sept 2016

Unit Construction Costs

Structures Excel file: 510_Transportation

Engineering_2016_Structure_DataBa se Sept 2016


Signals Excel file: Niagara - Traffic Signals Costs and Service Life


Illumination Excel file: Transp Reg Streetlights Energy and Maintenance Costs V2


Patrol Yards

List of facilities: Facilities Working_Niagara_BCA_Data_20151 029

Assets: Standardized Uniformat hierarchy

Overall facility value: Ongoing DC study (SS Cap Sheet); Standardized proportioning of costs to asset level

Storm Sewers GIS exported file Unit Construction Costs

Fleet GIS exported file Unit Construction Costs

Retaining Walls GIS exported file Unit Construction Costs

Culverts (Cross and Driveway) GIS exported file Unit Construction Costs

Guide Rails GIS exported file Unit Construction Costs

Water & Wastewater

Mains Excel file exported from GIS Unit Construction Costs

Overall facility value: Excel file - Asset

Treatment Plants Excel file: Department Report Cards

Replacement Costs- Summary Tables

December 9th 2016 Standardized

Proportioning of costs by Region

Support Facilities & Other Excel file: Department Report Cards See above

Waste Management Individual costs in

Recycling Centre Excel file: Asset Inventory Master List – Final

inventory Excel file; Overall facility value:

insurance valuation

Asset Portfolio Inventory Replacement Value

Individual costs in Landfills and HHW

Excel file: Asset Inventory Master List – Final

inventory Excel file; Capacity evaluation based on tipping fee

Health & Community

Public Health

Public Health Service Facilities

List of facilities: Facilities Working_Niagara_BCA_Data_20151 029

Assets: Standardized Uniformat hierarchy

Overall facility value: Ongoing DC study (SS Cap Sheet); Standardized proportioning of costs to asset level

Ambulance Services Excel file: Fleet Schedule EMS Unit purchase costs

Social & Community Services Daycare & General Refer to Public Health Service

Refer to Public Health Service Facilities

Assistance Facilities facilities

Long Term Care

Facilities: Standardized Uniformat hierarchy and Building Condition and

Energy Assessment Reports (2015) Equipment and beds: Excel files based on CMMS inventories

LTC facilities: Refer to Public Health Service Facilities

Equipment and beds: Unit costs in same excel

files/provided by Region


List of facilities and unit inventory: Insurance NRH 2016-17

Assets: Standardized Uniformat hierarchy and NRH Building Condition Assessments

Overall facility value: Insurance values; Standardized

proportioning of costs to asset level

General Government

Information Technology Excel file: IT - 2016 EDP Region Hardware revised -May 18

Individual costs in same Excel file

Excel file: Application replacement Software Costs_version1 Unit costs in same Excel

file Facilities

Government and Refer to Public Health Service Refer to Public Health Police Facilities Service Facilities

Police Excel file: Region LOS Master Fleet Inventory List OCT 2016

Individual costs in same Excel file

Excel file: EDP NRPS Final - June IT 2016 Unit costs in same Excel

file


2.2.2 Levels of Service

GHD Limited reviewed the Region’s strategic plans to guide the establishment of the Region’s corporate level objectives and connection to detailed levels of service. The methodologies and data sources for calculating KPIs are described below:

• Asset Condition State: The physical condition state of the Region’s assets.

• Renewal Reinvestment Rate: The annual Capital Renewal Expenditure is calculated from the Region’s “2016 Capital Budget and 9 year Forecast - Basic FINAL” file. Only amounts assumed to be for renewal and rehabilitation (not new construction) were summed to determine the total expenditures for 2016.

2.2.3 AM Strategy

Renewal strategies are generally based on typical rehabilitation and replacement treatments, applied at the appropriate time in an asset’s lifecycle, given its current condition. The typical asset lifecycle strategies were adjusted by Region staff based on knowledge of asset construction variations, current asset condition, and operating environments.

2.2.4 Financing Strategy

The Region’s Capital Budget and Forecast is a prioritized list of projects and budgets for each of the next ten years to support development, upgrade and renewal of the Region’s asset portfolios. Due to resource constraints, the Region prioritizes the program of identified needs to ensure an equitable allocation of resources and to “best” achieve the Region’s objectives.

To understand the longer term investment needs of the Region’s asset portfolios, this AM Plan analysis covers a 50 year period, to accommodate the replacement cycle of most assets. This more strategic level analysis is based on a schedule of work activities and associated costs applied to groups of assets for the purpose of determining required levels of funding.

The forecast future investment needs are compared to the Region’s planned capital renewal investments to assess the financial sustainability of the Region’s asset portfolio.



3. State of the Local Infrastructure

This section of the AM Plan is organized around answering the following ques tions:

• What do we own?

• What is it worth?

• What condition is it in?

• What is the remaining service life?

The state of infrastructure information has been structured at a high level by program area; General Government, Publics Works, and Health & Community. Within each of these areas, the infrastructure is broken down into the asset hierarchy summarized in Table 3-1. The table also includes the valuation of the asset portfolio, compared to the TCA historical (2015 Financial Statement) and Net Book Values.

Table 3-1 AM Plan Asset Hierarchy

Asset Portfolio Current

Replacement Value ($M)

TCA (Historical

Value $M)

TCA (Net Book Value

$M) Public Works $6,520 $2,010 $1,133

Transportation $1,786.9 $845.1 $527.7 Pavement $1,136.0 $607.8 $378.6

Structures $389.2 $152.1 $102.7

Signals $67.5

Illumination $9.9 $75.6 $37.7

Patrol Yards $15.0

Storm Sewers $71.9 $9.5 $8.7

Fleet $18.2

Retaining Walls $9.9

Culverts (Cross and Driveway) $56.4

Guide Rails $12.9

Captured with signals,

illumination (traffic

operations)

Captured with signals,

illumination (traffic

operations)


Asset Portfolio Current

Replacement Value ($M)

TCA TCA (Net (Historical Book Value

Value $M) $M) Water & Wastewater 4,401.5 1,088.2 570.1

Water 1,539.2 404.4 218.0 Mains 689.1 186.4 138.1

Treatment Plants 670.4 218.0 79.9

Support Facilities & Other 179.7 With treatment plants Wastewater 2,862.3 683.7 352.0

Mains 914.4 279.8 182.0

Treatment Plants 1,527.8 403.9 170.0

Support Facilities & Other 420.1 With treatment plants

Waste Management 331.5 76.9 34.9 Recycling Centre 31.8 30.2 19.4

Landfills and HHW 299.7 46.7 15.5

Health & Community 679.1 304.4 191.4 Public Health 36.7 23.8 12.8

Public Health Service Facilities 8.9 2.0 0.8

Ambulance Services 27.7 21.8 12.0

Social & Community Services 225.7 104.4 63.6 Daycare 9.1 3.4 2.0

General assistance facilities 16.1 2.8 1.8

Long Term Care 200.4 98.1 59.8

Niagara Regional Housing 416.7 176.1 115.0 General Government $194.3 $139.7 $69.8

Information Technology 26.8 32.9 5.8 Hardware 11.4 15.3 4.2

Software 15.4 17.7 1.6

Facilities 134.7 37.0 24.8

Government

Police

60.9

73.8 Summarized at higher level

Police 32.8 69.7 39.2 Fleet

IT

10.5

22.2 Summarized at higher level

Total $7,393.3 $2,454.2 $1,393.8

To enable comparison of condition and condition trends over time between different asset types, a generic condition grading scale is often used to translate detailed engineering data about assets into information that the public and council can compare


across asset groups. For this purpose, an industry standard general condition grading system was used based on the International Infrastructure Management Manual (IIMM), summarized in the table below.

Table 3-2 General Condition Grading System (from IIMM)

Grade Description Condition Criteria

Asset is physically sound and is performing its function as

VG Very Good originally intended. Required maintenance costs are well within standards and norms. Typically, asset is new or recently

rehabilitated.

Asset is physically sound and is performing its function as originally intended. Required maintenance costs are within

G Good acceptable standards and norms but are increasing. Typically, asset has been used for some time but is still within early to mid-

stage of its expected life.

Asset is showing signs of deterioration and is performing at a lower level than originally intended. Some components of the

asset are becoming physically deficient and component F Fair replacement may be necessary. Maintenance requirements and

costs are continuing to increase. Typically, asset has been used for a long time and is within the mid- to later stage of its expected

life.

Asset is showing significant signs of deterioration and is performing to a much lower level than originally intended. A

P Poor major portion of the asset is physically deficient. Required maintenance costs exceed acceptable standards and norms.

Typically, asset is approaching the end of its expected life.

Asset is physically unsound and/or not performing as originally intended. Asset has higher probability of failure or failure is

VP Very Poor imminent. Maintenance costs are unacceptable and rehabilitation is not cost effective. Replacement / major refurbishment are

required.

Details relating to the condition of each asset are currently maintained in various databases and spreadsheets. The conversion to industry standard condition rating systems to the above IIMM standard is provided in the table below. Details on the use of the pavement condition index, bridge condition index, facility condition index, and use of % life remaining for age-based “condition” are provided in the various sections below.


Table 3-3 Conversion of Industry Standard Condition to IIMM 5-Point Scale

IIMM GENERAL CONDITION

GRADING SYSTEM

PAVEMENT CONDITION

INDEX (PCI)

BRIDGE CONDITION

INDEX (BCI)

FACILITY CONDITION

INDEX (FCI)

% LIFE REMAINING FOR AGE

BASED “CONDITION”

% LIFE REMAINING FOR

AGE-BASED “CONDITION” for

FLEET & IT

Very Good 85 to 100 80 to 100 Over 20% 90 to 100 90 to 100

Good 70 to 85 70 to 80 10 to 20% 50 to 90 50 to 90

Fair 50 to 70 60 to 70 5 to 10% 25 to 50 0 to 50

Poor 30 to 50 40 to 60 2 to 5% 10 to 25 Up to 20% past service life

Very Poor 0 to 30 0 to 40 0 to 2% 0 to 10 More than 20% past service life

Table 3-4 below provides the replacement value for the Region’s assets and indicates how the condition estimate was developed for each asset group. A dash indicates that a condition estimate was not developed due to lack of condition information and/or installation date information. The total replacement value for the Region’s assets is estimated to be $7.39 billion.

Table 3-4 Summary of Basis of Condition Estimates

Asset Portfolio

Public Works $6,520 Transportation $1,786.9

Pavement $1,136.0

Structures $389.2

Signals $67.5

Illumination $9.9

Patrol Yards $15.0

Storm Sewers $71.9

Fleet $18.2

Retaining Walls $9.9

Culverts (Cross and Driveway) $56.4

Guide Rails $12.9 Water & Wastewater 4,401.5

Water 1,539.2 Mains 689.1

Current Replacement

Value ($M) Basis of Condition

Estimate

Condition Assessment



-

FCI

-

Age

-

-

-

Age


Asset Portfolio

Treatment Plants

Current Replacement

Value ($M) 670.4

Basis of Condition Estimate


Support Facilities & Other Wastewater

179.7 2,862.3


Mains 914.4 CCTV ratings

Treatment Plants 1,527.8 Condition Assessment

Support Facilities & Other

Waste Management

Recycling Centre

Landfills and HHW

Health & Community

Public Health

420.1

331.5

31.8

299.7

679.1 36.7



(2009) Condition Assessment

(2009)

Public Health Service Facilities 8.9 FCI

Ambulance Services

Social & Community Services Daycare

27.7

225.7 9.1

Age

FCI

General assistance facilities 16.1 FCI

Long Term Care

Niagara Regional Housing General Government

200.4

416.7 $194.3


Information Technology Hardware

26.8 11.4

-

Software

Facilities 15.4

134.7 Age (maturity)

Government 60.9 FCI

Police 73.8 FCI

Police 32.8 Fleet 10.5 Age

IT 22.2 -

Total $7,393.3

The following f igure shows the overall summary of the proportion of Regional assets within each condition grade – both the replacement cost in Billions of dollars and the percentage. The majority of the Region’s assets are in good or very good condition. The condition grade for $0.32 Billion of assets is unknown as the condition could not be estimated with the available data. Landfill capacity, estimated at $253 million, is not


evaluated in terms of condition, and is not included in the condition summary in Figure 3-1.

Figure 3-1 Niagara Region Overall Asset Condition (2016$Billion)

3.1 Public Works

3.1.1 Transportation

Niagara Region’s Transportation infrastructure consists of urban and rural road surfaces, bridges, culverts, traffic signals, street lighting, storm sewers, fleet and equipment. The Region’s Transportation group also operates five patrol yards, and manages other assets such as retaining walls, cross culverts, driveway culverts, and guide rails. The group manages all of these assets and is responsible for maintaining, rehabilitating, and replacing the assets as required.


3.1.1.1 Value of Existing Assets

The estimated overall transportation portfolio replacement value is $1.79 billion, broken down by asset class in the following figure:

Figure 3-2 Transportation Assets – Replacement Value (2016$M)

$1,500

$1,136.0

$1,000

$500 $389.2

$67.5 $71.9 $56.4 $9.9 $15.0 $18.2 $9.9 $12.9 $0

Pavement Structures Signals Illumination Patrol Storm Fleet Minor Retaining Guide Rails Yards Sewers Culverts Walls

Rep

lace

men

t Val

ue (2

016

$M)

Asset Class

The inventory of transportation assets is summarized in Table 3-5. Some asset portfolios, such as illumination assets, are in the process of growing or have incremental demands as a result of Council decisions. It is expected that an additional $5 million in luminaires will be transferring ownership from local area municipalities (LAMs) to the Region.

Table 3-5 Transportation Asset Inventory


ASSET QUANTITY VALUE ($M)

REPLACEMENT

Pavement 749 km $1,136.0 Structures 128 Bridges, 54 Large Culverts $389.2 Signals 270 signals $67.5 Illumination 1169 luminaires $9.9 Patrol Yards 5 $15.0 Storm Sewers 79.8 km $71.9 Fleet 205 Vehicles, 241 Pieces of Equipment $18.2 Minor Culverts 1680 Cross Culverts, 6839 Driveway Culverts $56.4 Retaining Walls 7.7km $9.9 Guide Rails 80 km $12.9

Total $1,786.9


3.1.1.2 Asset Age Distribution

The majority of the Region’s pavement was constructed within the last 25 years, as shown in Figure 3-3. 25 years ago, only 30% of the network had been constructed (cumulative green area of Figure 3-3).

Figure 3-3 Pavement Asset Age Distribution (2016$M)

3.1.1.3 Asset Condition

Overall, 89% of transportation assets are in fair or better condition. The following figure summarizes the condition profile across the transportation portfolio:

Figure 3-4 Transportation Asset Condition (2016$M)

C

ondi

tion

(as

% o

f Val

ue)

100%

80%

60%

40%

20%

0%

Very Good

Good

Fair

Poor

Very Poor

Pavement Structures Signals Patrol Yards Fleet Total $1136M $389.2M $67.5M $15M $18.2M $1583.9M

Transportation Services

Pavement

The Region completes an annual monitoring program to assess the current condition of the Regional road network and develop a priority listing of roadways that are candidates for maintenance and rehabilitation treatments. To consolidate the pavement

management system (PMS) data and enable consistency and comparison of PMS data with other municipalities, the monitoring program is consistent with the Ontario Ministry of Transportation Pavement Condition Rating Guidelines for Municipalities and procedures recommended by the Ontario Good Roads Association.

Each year, pavement condition inspections are completed for one third of the Regional road network. Historical condition inspection ratings are used in the PMS to develop performance prediction models for the deterioration of the pavements. Condition ratings for sections that are not inspected in a particular year are developed from the last available rating using prediction models to estimate the current condition rating for all sections in the Regional pavement database each year. The deterioration models are used in conjunction with the pavement segment construction history to determine when the pavements will reach a critical condition rating that would trigger maintenance, rehabilitation or reconstruction activities. For purposes of aligning with the corporate 5point condition scale, a “Very Poor” classification was added to the analysis for road elements with a PCI (Pavement Condition Index) less than 30 (refer to Table 3-3).

The following table summarizes the pavement condition profile historically since 2004. The condition profile for pavement has remained relatively stable over the last five years.

Figure 3-5 Niagara Region Overall Pavement Condition Index (PCI) (2016$M)

Structures

Every Regional bridge is inspected at least every second calendar year under the direction of a professional engineer and in accordance with the Ontario Structure Inspection Manual (OSIM). The structure conditions are determined as per the OSIM and the following guidelines:

• Very Good – Overall the components of the structure are in very good condition. Generally the structure has been constructed within the last 10 years and does not require any work within the next 10 years. Bridge Condition Index (BCI) Range 80 to 100.


• Good – Overall the components of the structure are in good condition. Generally the structure is adequate or requires only minor maintenance within the next 10 years. BCI Range 70 to 80.

• Fair – Overall the components of the structure are in fair condition. Generally the structure requires major rehab or replacement within the next 10 years, or requires Deck Condition Surveys (DCS), Load Capacity Evaluation (LCE) or Rehabilitation / Replacement Analysis (RRA). BCI Range 60 to 70.

• Poor – Overall the components of the structure are in poor condition. Generally the structure requires replacement within the next 5 years. BCI less than 60.

For purposes of aligning with the corporate 5-point condition scale, a “Very Poor” classification was added to the analysis for structures with a BCI less than 40 (refer to Table 3-3).

Signals

The Region maintains an inventory and condition record of traffic signals separated into the control cabinet, power supply, conductors, signals, junction boxes, and poles. Each asset is classified as good, fair, or poor.

Patrol Yards

For each facility, the Region manages a database with a record of deferred maintenance and Facility Condition Index (FCI) which is the deferred maintenance and renewal work divided by replacement value. The FCI is used to estimate the overall condition according to the 5-point condition scale. A facility with less deferred maintenance is in better condition than a facility with a high value required in maintenance work (refer to FCI to IIMM scale mapping in Table 3-3).

Fleet

The condition of vehicles and equipment are assessed twice per year as part of Niagara Region’s Phase 1 and Phase 2 Replacement Schedule Reports. Units are assessed based on mileage, maintenance / repair costs, condition, and necessity.

Condition ratings for transportation fleet and equipment are estimated based on age and expected life (refer to percentage of remaining life mapping to IIMM scale in Table 3-3).

Other Assets

For storm sewers, driveway culverts, cross culverts, retaining walls, and guide rails, the Region performs assessments as needed and is working on improving installation date records and tracking of condition scores.

3.1.2 Water and Wastewater

The Region provides wholesale potable water and wastewater services to 11 area municipalities across the region through the operation and maintenance of water and


wastewater treatment plants and transmission networks, as well as various support facilities such as pump stations, reservoirs, and elevated water tanks. In 2013, 57 billion litres of potable water was produced, and 80 billion litres of wastewater was treated.


The water and wastewater network consists of watermains and sewers, treatment plants, and support facilities. The support facilities include reservoirs, elevated tanks, and pump stations. The network is valued at $4.40 billion, as summarized in the following figure:

Figure 3-6 Water and Wastewater Asset Valuation (2016$Billion)

$4.40

$4.0

$3.0

$2.0

$1.0

$0.0

$2.20 $1.60

$0.60

Mains Treatment Plants Support Facilities Water & WW & Other Total

Asset Class

Rep

lace

men

t Val

ue (2

016

$B) $5.0

The inventory of water and wastewater assets is summarized in Table 3-6 and Table 3-7.

Table 3-6 Water Asset Inventory


ASSET QUANTITY REPLACEMENT

VALUE ($M)

Mains 308.7 km $689.1 Treatment Plants 6 treatment plants $670.4

Support Facilities & Other 30 reservoirs, tanks, booster stations, etc.

$179.7

Total $1,539.2

Table 3-7 Wastewater Asset Inventory


VALUE ($M)

Mains 284.1 km $914.4

Treatment Plants 10 Treatment plants, 1 Biosolids Facility, 1 Lagoon

$1,527.8

Support Facilities & Other 117 Pump stations, CSO, Odour Control

$420.1

Total $2,862.3


The majority of linear water and wastewater infrastructure in Niagara Region was built in the 1960s and onward, with the largest decade of construction being the 1970s. Much of this construction was driven by growth in the Region, thereby leading to the increased length and size of the network to service more areas. Provincial and Federal legislation was a driving force for new and improved water and wastewater infrastructure during this time. There was also an impact as the Region constructed systems to address combined sewer systems and to reinforce water system redundancy as a result of provincial and federal legislation changes. This construction history is summarized in Figure 3-7.

Figure 3-7 Water and Wastewater Main Asset Age Distribution (2016$M)

$600

) $M $500

e (

ual

$400

Vten $300

acem $200

epl

R $100

$0 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s

Decade of Construction


Overall, 84.5% of water and wastewater assets are in fair or better condition. The following f igure summarizes the condition profile across each of the water and wastewater portfolios:


Figure 3-8 Water Asset Condition (2016$M)

100%

Con

ditio

n (a

s %

of V

alue

) 80%

60%

40%

20%

0% Mains Treatment Plants Support Facilities Water Total

Very Good Good Fair Poor Very Poor

Service Area

Figure 3-9 Wastewater Asset Condition (2016$M)

100%

Con

ditio

n (a

s %

of V

alue

)

80%

60%

40%

20%

0% Mains Treatment Plants Support Facilities Wastewater Total


Service Area

Mains

Water and wastewater mains are assigned a condition rating based on the likelihood of failure calculation. For water mains, the calculation is age-based. For wastewater gravity mains, the structural grade recorded from CCTV inspections is used for the likelihood. Structural grades range from 1 to 5. Scores of 1 to 5 are transferred straight into the likelihood score. For sanitary forcemains and watermains, t he table below is used to calculate the likelihood of failure based on age.


Table 3-8 W&WW Mains Likelihood of Failure & Condition Mapping (Age-Based)

IIMM General Condition Grading System

Likelihood of Failure

Remaining Life

Very Good 1 31 to 200 years

Good 2 21 to 30 years

Fair 3 11 to 20 years

Poor 4 6 to 10 years

Very Poor 5 <= 5 years

Treatment Plants and Supporting Facilities

The Region assesses the condition of vertical infrastructure to confirm rehabilitation and renewal needs when the asset’s remaining life approaches approximately five years. A record is maintained of condition ratings for each treatment plant by process and building asset category. The condition profile in this AM Plan is developed by proportioning the condition scores for each building asset category according to each asset’s estimated replacement cost.

3.1.3 Waste Management

Waste Management is responsible for the planning, management and operations of waste management facilities, programs and services throughout the Region, including:

• Operating and maintaining two Regional landfills (Humberstone and Niagara Road12), a Recycling Centre, three Municipal Household Hazardous Waste (HHW) facilities, three Residential Waste and Recycling Drop-off depots (at Humberstone, Niagara Rd 12, Bridge Street), and one waste transfer facility (Bridge Street).

• Providing residential and commercial curbside, waste, recycling and organics collection programs, and special diversion events.

• Perpetual care of 12 closed landfills.


The most current study completed on the replacement value of Waste Management Assets was conducted on behalf of Niagara Region by Stantec in 2007. In 2007, the evaluation was based on five open and nine closed landfills. Building on that report, the Region has developed and maintained a detailed waste management database that is updated and refined on an ongoing basis. This inventory contains asset level information for each landfill and the recycling centre. Table 3-9 summarizes the valuation of waste management assets currently documented. As part of upcoming condition assessments, the inventory is expected to be improved and completed. Included in the valuation is the estimated value of the remaining capacity at the two open landfills, based on the following assumptions:


• Humberstone: 248,190 m3 of waste capacity remaining, plus an additional 2.4 million m3 of capacity approved in 2016

• Niagara Road 12: 834,050 tonnes of waste capacity remaining

• Waste to cover ratio: 6:1

• Waste density: 800 kg/m3

• Assumed tipping fee of incoming waste: $100/tonne

Table 3-9 Waste Management Asset Valuation

ASSET CLASS WM ASSET OPERATION REPLACEMENT

VALUE

Landfill

Environmental Monitoring $4.7 Process & Operations $17.5 Site Features $19.5 Stormwater Management $2.7 Cell Capacity (Niagara & Humberstone) $253.1

Landfill Total $297.4

Recycling Centre

Environmental Monitoring $0.2 Process & Operations $14.1 Site Features $0.3 Building & Site $17.1

Recycling Centre Total $31.8 HHW $2.3 Total $331.5


In the 2007 Stantec Report, conditions were graded in a report card format with an overall “B” grade for the Recycling Centre and “C” grade for landfills. The report provided a high-level assessment at general process categories on a 5-point rating scale (A, B, C, D, E, and F). For this AM Plan, these alphabetic cores are assigned respective numeric 1 to 5 scores, and assigned to each asset in the Region’s inventory based on the process category (90% of assets, excluding the landfill capacity value, are assigned a condition score through this mapping). The resulting condition profile, based on the 2007 Stantec report, is provided in Figure 3-10.



Figure 3-10 Waste Management Asset Condition (2016$M)

100%

Con

ditio

n (a

s %

of V

alue

)80%

Very Good 60% Good

Fair 40% Poor

Very Poor 20%

0% Waste Management

The Region is currently engaging external parties to provide updated data, including CCTV inspections. HVAC upgrades and roofing repairs at the Recycling Centre are also being completed based on previous Building Condition Assessment recommendations.

3.2 Health & Community

3.2.1 Public Health Services

Public Health Service assets at the Region consist of Ambulance Services (EMS fleet) and Public Health Service Facilities, mainly Ambulance Base stations.


The Region’s Public Health Service assets estimated replacement value is $36.7 million, as summarized in the following figure:

Figure 3-11 Public Health Services Asset Valuation (2016$M)

R

epla

cem

ent V

alue

(201

6 $M

) $40 $36.67 $35

$27.72

$8.94

Public Health Service Amublance Services Total Facilities (3 Facilities) (Fleet and 13 Facilities)

Public Health Services Portfolio

$30 $25 $20 $15 $10 $5 $0

The following table provides an overview of the inventory:

Table 3-10 Public Health Services Asset Inventory

ASSET SUB-ASSET QUANTITY REPLACEMENT

VALUE ($M)

Public Health Service Facilities 3 facilities $8.94 Ambulance Services Ambulance Bases 13 facilities $16.6

Fleet 64 vehicles, two trailers

$7.1

Cardiac Monitor 65 $1.23 Computer Grouped assets $0.61 Power Lift 38 $1.00 Power Stretcher 33 $0.60 Manual Stretcher 43 $0.23 Miscellaneous 7 $0.32

Ambulance Services Total $27.72

Total $36.7


Overall, 85% of public health service assets are in fair or better condition. The condition is summarized in Figure 3-12.

Figure 3-12 Public Health Services Asset Condition (2016$M)

Public Health Service Amublance Services Total Facilities (3 Facilities) (Fleet and 13 Facilities)

Public Health Services Portfolio

Con

ditio

n (a

s %

of V

alue

)

100%

80%

60%

40%

20%

0%


Public Health Facilities

For each facility, the Region summarizes the deferred maintenance from Building Condition Assessments and calculates a Facility Condition Index (FCI). The FCI is used to estimate the overall building condition in terms of the 5-point condition scale. The FCI score mapped to the IIMM 5-point condition scale is provided in Table 3-3.


Ambulance Services

The condition for ambulance fleet and equipment is estimated based on age according to Table 3-3. Fleet are typically replaced based on age or mileage (refer to upcoming AM Strategy chapter). “Very Poor” assets for fleet (based on age) do not necessarily indicate an imminent condition failure. The “Very Poor” assets have simply been identified as being past 20 percent of its lifecycle and are therefore past its scheduled replacement based on time-based renewal. Similar to Public Health Facilities, Ambulance Bases have an FCI score mapped to the IIMM 5-point condition scale in Table 3-3.

3.2.2 Social & Community Services

The Region’s Social & Community Services encompasses Day Care, Long Term Care, and General Assistance Facilities, such as Employment Offices.


These facilities are estimated to be valued at $225.67 million, with $200.44 million for Long Term Care facilities and equipment/beds:

Figure 3-13 Social & Community Services Asset Valuation (2016$M)


94% of social and community facilities are in fair or better condition, as shown in Figure 3-14.


Figure 3-14 Social & Community Services Asset Condition (2016$M)

Daycare and General Assistance Facilities

The Region carries out Building Condition Assessments (BCAs) for each daycare and general assistance facility. The deferred maintenance is divided by the replacement value of the facility to calculate the Facility Condition Index (FCI) for each facility. This FCI is used to estimate the overall building condition, and is translated to the 5-point condition scale, as previously provided in Table 3-3.

Long Term Care Facilities

BCAs were carried out for the eight Long Term Care facilities in 2015. The assessments provided a condition score from 0 to 50 for each main building asset category. To determine an overall condition on the 5-point scale for each Long Term Care facility, the 0 to 50 score is assigned an equivalent score based on Table 3-11. Based on the definitions of the BCA scores, it was determined that a “Very Good” equivalent was not reasonable.

Table 3-11 Long Term Care Facility BCA Score Mapping to IIMM Scale

IIMM SCORE DEFINITION DESCRIPTION

Good 0 Acceptable - No action required.

No further criteria assessment provided.

Fair 15 Moderate - Below acceptable standard.

Obvious, but minor aesthetic, functional or operational deficiency.

Poor 25 Poor - Well below acceptable standard.

Requiring frequent maintenance, adjustment, reset, etc. Serious

aesthetic annoyance.

Very Poor 35 Very Poor - Imminent failure.

Unable to Function reliably, requires major operator intervention.

Very Poor 50 Failed Failed - System or component nonfunctional, missing.


Replacement values are estimated for each building component such that condition and cost information are available at the same component level.

3.2.3 Niagara Regional Housing

Niagara Region has designated Niagara Regional Housing (NRH) as the Administrator of social housing. NRH is accountable for the ownership and management of the former public housing portfolio of 2,761 units and, although not part of this AM Plan, NRH has legislative oversight of an additional 4,000 units owned by non-profit and co-operative housing providers.


Total replacement value for NRH assets is estimated at $416.7 million, with 62% of the inventory accounted for by houses. The valuation is shown graphically in Figure 3-15 and housing units are summarized in Table 3-12.

Figure 3-15 Niagara Regional Housing Asset Valuation (2016$M)

$500

$400

$300

$200

$100

$0

$416.7

$258.4

$158.3

Apartments Houses Total Rep

lace

men

t Val

ue (2

016

$M)

Table 3-12 Niagara Regional Housing Asset Inventory


VALUE ($M) Apartments 35 buildings, 1849 units $158.3

Houses 320 buildings, 912 units $248.4

Total 2761 units $416.7


The NRH portfolio consists of older units with the majority ranging in age from 31 to 61 years. Just over half of the current stock (55%) was built over 40 years ago, having been constructed between 1952 and 1973. These units were fairly evenly distributed between apartments and houses. From 1974 onwards, the majority of units that were constructed were apartment buildings for seniors, with very little development of family houses.



In 2011 and 2012, BCAs were conducted for all housing assets. An FCI score was estimated by totaling the maintenance identified over the next five year period in each assessment, and dividing by the current replacement value of the facility. Following the methodology for other facilities, this FCI is translated to the 5-point condition scale as per Table 3-3. Additional input on recent work for some facilities was provided by the Region to adjust some FCI scores. Based on this analysis, no facility, when evaluated as a whole, is in poor or very poor condition, as shown in Figure 3-16.

Figure 3-16 Niagara Regional Housing Asset Condition (2016$M)

100%

80%

Very Good 60% Good

Fair 40% Poor

Very Poor 20%

0%

Con

ditio

n (a

s %

of V

alue

)

NRH

3.3 General Government

3.3.1 Facilities

The Facilities Department manages government buildings and police stations. The department also manages the Daycare, General Assistance, and Public Health facilities already discussed under Social & Community Services.


The Region owns 13 Government and Police stations which represent a total replacement value of $134.7 million.


Figure 3-17 Facilities Asset Valuation (2016$M)

$150 $134.69 R

epla

cem

ent V

alue

(201

6 $M

)

$100 $73.78

$60.91

$50

$0 Government (3 Police (10 Facilities) Total (13 Facilities)

Facilities)


80.2% of facilities are in fair or better condition. The high value of police “Very Poor” assets is due to the high FCI at St. Catharines #1 District Police Station. The condition profile for the Government and Police buildings is summarized in Figure 3-18.

Figure 3-18 Facilities Condition (2016$M)

C

ondi

tion

(as

% o

f Val

ue)

80%

60% Very Good Good

40% Fair Poor 20% Very Poor

0% Government (3 Police (10 Facilities) Total (13 Facilities)

Facilities)

100%

For each facility, the Region summarizes the deferred maintenance from Building Condition Assessments and calculates a Facility Condition Index (FCI). The FCI is used to estimate the overall building condition in terms of the 5-point condition scale. The FCI score mapped to the IIMM 5-point condition scale is provided in Table 3-3.

3.3.2 Niagara Regional Police

Niagara Regional Police maintains both fleet and IT assets.


Police fleet and IT are evaluated at a replacement value of $32.8 million (see Figure 3-19). An inventory of fleet and IT assets is provided in Table 3-13 and Table 3-14.


Figure 3-19 Niagara Regional Police Asset Valuation (2016$M)

$40.0

$32.79

$30.0

$22.25

$20.0

$10.55 $10.0

$0.0 Police Fleet Police IT Total

Rep

lace

men

t Val

ue (2

016

$M)

3.3.2.2 Asset Inventory

Table 3-13 Niagara Regional Police Fleet Inventory

VEHICLE CLASS REPLACEMENT

VALUE NUMBER OF VEHICLES

Admin $1,641,986 66 Invest $1,181,427 91 Patrol $4,254,154 136 Specialty $3,059,839 62 Utility $409,467 16 Total $10,546,873 371

Table 3-14 Niagara Regional Police IT Inventory

ASSET REPLACEMENT VALUE

Desktops/Laptops/Tablets $580,900 Firewall System $187,175 Miscellaneous Equipment $79,000 Mobile Laptop MDT $799,000 Monitors $166,500 Motorola P25 700 MHZ Voice Radio System $12,900,000 Network Equipment $2,118,000 New HQ Network/Server/Phone Equipment $3,948,000 Tech Crime/ICE Infrastructure $100,000 Versaterm Servers $185,000 Miscellaneous Systems $1,182,370 Total $22,245,945



Over 91% of Police fleet is in fair or better condition. As indicated for Ambulance Services (EMS fleet), poor condition for fleet is not necessarily an indication of imminent failure. It is an indication of vehicles that have past expected renewal based on scheduled replacement.

Figure 3-20 Police Fleet Condition (2016$M)

100%

80% Very Good Good

60% Fair Poor

40% Very Poor

20%

Con

ditio

n (a

s %

of V

alue

)

0% Police Fleet

3.3.3 Information Technology

The Information Technology department is responsible for corporate IT assets, except for Police IT.


IT assets have a replacement value of $26.8 million. An inventory of IT assets is provided in Table 3-15 (“purchase-only” software cost) and Table 3-16 (hardware cost). The actual total software replacement cost, incorporating soft costs such as Region staff labour and implementation costs, is estimated to be approximately $30 million.

Table 3-15 IT Asset Inventory (Software)

DEPARTMENT REPLACEMENT VALUE

Corporate Services $2,828,500 Public Works $204,984 Public Health $4,865,365 Community Services $402,500 NRH $47,500 ICP $397,000 Planning $125,000 Department Not specified $6,558,590

$15,429,439


Table 3-16 IT Asset Inventory (Hardware)

ASSET CATEGORY

ASSET REPLACEMENT

VALUE Desktop Personal Computers (PC) $1,284,500

Computers Workstations $122,500 Servers $1,793,000

Mobile Computing Laptop Computers $1,671,800 iPads $225,400

Telecommunication Desktop Phone equipment $886,800 Phone & Voice Mail System $702,000

Networking equipment

Storage $675,000 Wireless access point $121,500 Network Switches $1,164,500

Peripheral devices Audio/visual Equipment (Video projectors) $215,000 Printers $1,069,600

Other $1,426,800 Total $11,358,400


IT hardware and software assets were not evaluated for condition due to lack of purchase date information. Information on lifecycle state (initiation, growth, maturity, and retirement stage) for each software application is maintained by the Region.



4. Levels of Service

4.1 Introduction

Levels of Service (LOS) are key business drivers that influence decisions about managing assets. LOS statements describe the quality of service the Region is striving to provide to customers and other stakeholders, and commonly relate to service attributes such as availability, reliability, suitability, health and safety, affordability, environmental sustainability, and responsiveness. Performance indicators and targets are used to describe, quantify and communicate the services that customers and other stakeholders expect to receive and to determine whether the Region is delivering as expected.

For municipal service providers, LOS are guided by a combination of customer and other stakeholder expectations, regulatory and legislated requirements, and internal policies, strategies and procedures. In many cases, LOS are also implied based on past performance and system design. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, targets, and timeframes to achieve targets, and that the costs to deliver the documented LOS be understood.

The following section describes Regional LOS framework under the following categories:

• Customer LOS: Understanding the Region’s customers and other stakeholders and their expectations is a key input into LOS. Customer LOS are typically balanced against legislative requirements and the customer’s ability/willingness to pay.

• Legislated LOS: Legislated requirements define the standards by which the Region is obligated to provide services. Legislative requirements are a significant business driver for most municipal services.

• Technical LOS: The Region must translate customer expectations and legislative requirements into technical objectives, performance measures, and targets. Technical levels of service define what the Region must do to deliver services that meet customer and legislated LOS.

The three sections that follow the LOS Framework section describe current Region performance benchmarked against other Canadian municipalities, external trends affecting performance, and the LOS and cost of service relationship.

4.2 LOS Framework

4.2.1 Customer LOS

Over the past five years, the Greater Niagara Chamber of Commerce, through a broad-based regional approach, has articulated how the foundations of Niagara’s economy



have shifted and has mapped out a blueprint to create a new economic path for the 21st century.

In 2013, the Greater Niagara Chamber of Commerce initiated the work outlined in the report titled “Blueprint for Economic Growth and Prosperity: Launching A Report Card for Niagara”, which sets out the strengths, weaknesses and challenges that are facing Niagara – and formally sets in place a practical mechanism that can be used by the business community to hold Niagara’s leadership accountable while identifying critical areas in need of improvement through concrete measures.

Five areas of action have been identified that are directly linked to Niagara’s economic growth potential:

• Creating an efficient and effective “Open For Business” culture at both orders of government in Niagara.

• Strategically building Niagara’s infrastructure based on sound economic principles to support economic growth and diversity.

• Fostering a culture of innovation, incubation and entrepreneurship within the business community that leads to increased productivity, exports and new market developments.

• Building a 21st century workforce through workplace training, skilled trades, youth retention and attraction, and utilizing the skills of newcomers.

• Supporting Niagara’s economic clusters through strategically targeted investments and initiatives.

The current (2014-2018) Region of Niagara Council, with senior Regional management, has developed a focused action plan to support the new economic path for Niagara, outlined in the report titled “Looking Out to Focus In – Fostering an Environment for Economic Prosperity”. From the introductory section:

“Economic prosperity emerges as the prominent theme throughout the national, provincial and local agendas. And, while it is the private sector that generates wealth for the economy and creates jobs, governments can play a key role in fostering the conditions for economic competitiveness through investments in sound infrastructure, seamless transportation networks, highly skilled labour markets and favourable trade conditions. The research suggests that a narrow focus on supporting economic prosperity in Niagara is our best opportunity to deliver the greatest community impact over the next few years.”

To better understand what investments might be necessary to support a more competitive local economy, a preliminary economic prosperity dashboard has been developed that tracks Niagara’s progress towards fostering an environment for economic growth and prosperity. The following metrics have been established to ensure that Regional Council and staff focus on the best measures to strengthen the Niagara community.

• Community: Social services and health programs have a direct link to economic prosperity in Niagara.

• Employment: Measures of employment are commonly used as a sign of economic prosperity within a community.

• Growth: Community growth relates to a number of factors including population and construction.

• Infrastructure: Assets such as roads, bridges, water and wastewater infrastructure, and facilities are essential for the movement of people and goods and the delivery of services to Niagara residents, businesses and visitors.

• Investment: Public and private investment has the capacity to drive the economy, with every $1 million invested in infrastructure increasing Gross Domestic Product by approximately $1.6 million.

• Taxation: Niagara Region strives for taxpayer affordability by ensuring that the amount of Regional and municipal taxes paid by residents is an affordable part of their household income.

The Infrastructure outcome is of prime importance to this AM Plan. Although not all assets required to improve economic competitiveness in the Region are managed by Niagara Region, the Region manages close to $7.39 billion in assets that support the community. Maintenance, rehabilitation and replacement of this infrastructure consume a significant proportion of the Region’s resources.

The following measures of infrastructure performance are included in the Region’s Performance Outcome Indicators.

• Infrastructure Deficit: Projected 10-year difference between capital requirements and available funding

• Pavement Condition Rating: Average condition, or Pavement Condition Index, of the regional road network.

• Bridge Condition Rating: Percentage of structures that are rated ‘good’ to ‘very good’, by surface area.

• Growth-Related Capital Funding: Percentage of capital budget funded from development charges.



4.2.2 Legislated LOS

Legislated requirements define the standards according to which the Region is legally obligated to provide services to the community, and these standards typically relate to service and asset safety and reliability. The Region delivers services in adherence to applicable legislative requirements, including required compliance monitoring and reporting. Examples of legislated LOS are provided in the following bullet lists.

Water and Wastewater

• Safe Drinking Water Act (SDWA)

• Environmental Protection Act (EPA)

• Ontario Water Resource Act (OWRA)

• Clean Water Act (CWA)

• Water Opportunities Act

• Nutrient Management Act (NMA)

• Fisheries Act

• Wastewater System Effluent Regulations (WSER)

Waste Management


• Ontario Water Resource Act (OWRA)

• Niagara Escarpment Planning and Development Act

• Waste Diversion Transition Act

• Environmental Assessment Act (EAA)

Transportation

• Highway Traffic Act

• Environmental Assessment Act (EAA)


Facilities

• Ontario Building Code

• Ontario Electrical Safety Code

• Workplace Safety and Insurance Act

• Fire Prevention and Protection Act 1997 (FPPA)

• Long Term Care Act (LTCA).

Information on regulatory inspections is contained within various databases and maintained by Region staff at the operational level to ensure legislative compliance. It is

typical that details of compliance be held at the operational level, but that reporting that confirms that the Region complies is reported at a higher level.

4.2.3 Technical LOS

The Region must translate the preceding customer expectations and legislative requirements into technical objectives, performance measures, and targets. Technical LOS define what the Region must do to deliver services that meet customer and legislated LOS.

Compliance with legislated requirements has always been a primary driver for the Region, with changes to legislation driving continuous update of associated technical LOS over time. Technical LOS to support customer and other stakeholder requirements are more dynamic than those defined to support legislative requirements – they must be adapted to changes in the local, regional and global business environments.

The basis for technical LOS to support customer and other stakeholder requirements is the current (2014-2018) Region of Niagara Council’s strategy and action plan to support the new economic path for Niagara report titled “Looking Out to Focus In – Fostering an Environment for Economic Prosperity”. Metrics have been developed to ensure that Regional Council and staff focus on the best measures to strengthen the Niagara community, including the Infrastructure performance measures identified under the Customer LOS subsection above.

The 2016 Canadian Infrastructure Report Card (CIRC) provides an assessment of the health of municipal infrastructure as reported by cities and communities across Canada. The following two industry standard metrics included in the 2016 CIRC are related to the Infrastructure performance measures identified in “Looking Out Focusing In”.

• The 2016 Canadian Infrastructure Report Card (CIRC) summarizes the Physical Condition State of Canadian municipal infrastructure, as qualitatively assessed by the study participants using a generic five point condition grading scale (Very Good, Good, Fair, Poor and Very Poor). This metric is similar to the Pavement and Bridge Condition Rating metrics described in the Region’s Infrastructure performance measures. To adequately meet service levels and manage risk while minimizing whole-of-life costs, most assets should generally be preserved in FAIR or better condition. Section 3 in this AM Plan indicates that the majority, but not all, of Regional assets are currently rated in good and very good condition.

• The Renewal Reinvestment Rate is a standard metric for evaluating the rate at which assets are rehabilitated and/or replaced, with shortfalls potentially shortening asset useful life and likely increasing long-term costs. This metric is similar to the Infrastructure Deficit metric described in the Region’s Infrastructure Performance Measures, but provides a rate (typically expressed as a percentage) rather than an absolute amount, enabling benchmarking with other municipalities and over time.

The following table summarizes the technical LOS that support the Region of Niagara Council’s strategy and action plan for Niagara and enable benchmarking with other municipalities.


Table 4-1 Key Technical KPIs

Service Attribute Performance Objective Performance

Measure KPI Derivation

Reliable Assets are maintained in Physical Physical Condition State = % of good condition to enable Condition State assets in Fair or Better Condition, reliable / continuous by Current Replacement Value provision of services

Affordable Assets are provided at the Renewal Renewal Reinvestment Rate (%) = lowest possible cost for Reinvestment Annual Capital Renewal

both current & future Rate Expenditure* / Current customers Replacement Value

*Annual Capital Renewal Expenditures are typically not

consistent year over year, so an average over several years is

sometimes used

4.3 Current Performance

A description of the Region’s current performance on the two key technical KPIs to support Regional Council priorities are provided in this section. Two sets of graphs are provided, one for each of the two key technical KPIs.

4.3.1 % Condition Fair or Better

The following graph shows the proportion of Region assets in fair or better condition (solid coloured bar) and the average proportion of the same assets in fair or better condition, as reported by communities across Canada in the 2016 CIRC (dashed black outline). Where there is no Region (solid) condition bar, the data does not support estimation of condition (i.e., no condition rating and missing install year and cost data). Where there is no dashed black line, the 2016 CIRC did not report on that asset group.


Figure 4-1 % Condition Fair or Better: Region-wide

The proportion of the Region’s infrastructure in physical condition fair or better is generally similar to that reported by other Canadian municipalities in the 2016 CIRC. However, the proportion of some of the Region’s facilities in physical condition fair or better is substantially less than that reported by other Canadian municipalities in the



2016 CIRC (e.g., Treatment Plants, Wastewater Supporting Facilities, Public Health Service, and Police Facilities).

4.3.2 Renewal Reinvestment Rate

The following graphs show the following:

• The planned Renewal Reinvestment Rate for the Region, based on the 2016 to 2025 Capital Budget and Forecast plus approved funds prior to 2016 for backlog assets, as a solid coloured bar ()

• The CIRC target Renewal Reinvestment Rate range as a black outline ().

CIRC benchmarks are available only for some asset groups. Where there is no Region Renewal Reinvestment Rate bar (), there is no planned renewal investment in the next ten years (as is the case for retaining walls).

Figure 4-2 Renewal Reinvestment Rate: Public Works

Large renewal reinvestment rates are appropriate for short lived assets such as vehicles and information technology assets. As an example, a vehicle with a useful life of ten years must be replaced once every ten years or one tenth or 10% of the time. For such a vehicle, the renewal reinvestment rate target would be 10%. However, a municipality may choose to vary from the renewal reinvestment rate target for a time

due to factors such as the age of the infrastructure, the level of maintenance, the current backlog of renewal work, risk tolerance, and available infrastructure renewal funding and/or other resources.

Figure 4-3 Renewal Reinvestment Rate: Health & Community

Several of the Ambulance Bases are identified as in need of major renewal works over the next five years to extend their useful lives, including roof replacements, systems upgrades and parking lot replacements.

The discussion above regarding the appropriateness of large renewal reinvestment rates for short lived assets applies also to EMS vehicles and associated equipment. Based on the estimated lives and replacement costs for these assets, the target renewal reinvestment rate for EMS fleet and equipment is 18.8%. This reinvestment rate reduces to 13.4% overall for Ambulance Services when taking into account the Ambulance Bases, which are longer term assets.

The Region is currently developing renewal plans for the redevelopment of three of the eight Long Term Care homes representing approximately 43% of the beds operated by the Region. The renewal plans include a review of alternative service delivery models and partnerships with community partners. The renewal strategy aligns with the Province’s renewal strategy and funding for Long Term Care homes across the province. Compliance for the renewal strategy is set by the Province and must be completed by 2025.


Figure 4-4 Renewal Reinvestment Rate: General Government

The discussions above regarding the appropriateness of large renewal reinvestment rates for short lived assets also applies to the General Government vehicles and information technology assets.

4.4 External Trends Affecting Levels of Service and Performance

External trends and issues affecting expected LOS or the Region’s ability to meet the desired LOS include the following.

• Population and employment changes (e.g., growth, demographics), which will impact infrastructure use.

• Changes in expectations for programs or patterns of use from the public, which will impact infrastructure use and revenue for services.

• Potential changes in technology or methods, which may replace obsolete equipment, provide longer asset life, and/or achieve higher quality and greater efficiencies.

• Potential changes to the cost of input variables (e.g., cost of power, fuel), which will impact costs to deliver the services.

• Infrastructure failing prematurely due to environmental factors and/or construction practices requiring repair or replacement much earlier than the expected life of the asset.

• Availability of external funding (e.g., federal and provincial infrastructure programs) which may affect the infrastructure improvement activities that can be undertaken.

• Unexpected downloading of services by more senior levels of government.

• Popularity of sustainability initiatives and “greening” trends (e.g., LEEDs).

• Climate change, including changing storm events and patterns (e.g., higher frequency storms occurring more regularly), which will impact the infrastructure.

• Potential changes in Federal or Provincial legislation.


4.5 Level of Service and Cost of Service Relationship

To achieve the objectives of the Region’s vision, the Region provides services at specific levels of availability, reliability, responsiveness, safety, suitability, and sustainability. The Region strives to provide these specific levels of services cost effectively – at the lowest possible cost for both current and future customers. Willingness to pay and availability of finances will ultimately control the ability of the Region to achieve its target levels of service.

To establish the LOS and Cost of Service (COS) relationship, the Region must understand the current LOS being provided, and determine the full cost to deliver this LOS. Determining the cost to deliver the current LOS will include tracking the following:

• Direct tangible costs (i.e., those costs to the Region that can be directly traced to the specific service) such as program costs and asset lifecycle costs

• Indirect tangible costs (i.e., those costs to the Region that cannot be directly traced to the specific service) such as corporate administration and overhead

• Less tangible community costs such as road user costs and risk of environmental impacts. It is common not to consider these until direct and indirect costs are well understood.

Once the Region understands the full cost to deliver the current LOS, it can determine if current LOS are sustainable over time. This relationship is further discussed in sections 5 and 6 of this AM Plan.



5. Asset Management Strategy

5.1 Future Growth

5.1.1 Population Growth

The Region lies within the Outer Ring of the Greater Golden Horseshoe (GGH) planning area of Southern Ontario, to the south of the Greater Toronto Area and Hamilton (GTAH) which are experiencing intense urban development. Home to a population of 442,800 in 2011, the Region is large and diverse covering over 1,850 km2

and is defined by unique physical features and pattern of cities, towns and hamlets in 12 local municipalities and 27 distinct settlement areas.

The Region is forecasted to grow to a population of 577,000 by 2036, and 610,000 by 2041 as prescribed by the Province through the Growth Plan for the Greater Golden Horseshoe (Growth Plan). The historic and projected population growth in the Region is shown in the following two figures (source: Municipal Comprehensive Review, Public Information Centre presentations). Over the next 25 years, the Region will grow twice as fast as it did over the last 25 years. The population of 442,800 in 2011 will increase by 38% to reach 610,000 in 2041.

Figure 5-1 Region Historic & Projected Growth


Figure 5-2 Region Population Forecast to 2041

5.1.2 Planned Asset Portfolio Growth & Enhancements

The expected growth in Region population will place significant pressure on the capacity of existing assets and create demand for new assets. The Region has updated various master plans that outline current service levels and associated existing assets, recommend future service levels and associated assets, and identify the actions required to move from the current to future state including requirements for new, expanded and enhanced assets. Current master planning documents include the following.

• Regional Official Plan: This is the long-range, community planning document that is used to guide the physical, economic and social development of the Region. Generally, the official plan contains objectives, policies and mapping that implement the Region’s approach to managing growth, growing the economy, protecting the natural environment, resources and agricultural land, and providing infrastructure.

• Niagara 2041: Niagara Region is pro-actively planning for new growth, in conformity with Places to Grow - the Growth Plan for the Greater Golden Horseshoe. Through the Niagara 2041 study process, the Region will develop a Growth Plan to accommodate anticipated population and employment growth over the next 25 years. The plan will be urban in nature, and will involve completion of the following 3 inter-connected studies, which together form the foundation to support and foster Niagara’s growth. The Niagara 2041 Growth Strategy involves completing (3) three coordinated projects:

o Municipal Comprehensive Review (MCR) – How We Grow



o Transportation Master Plan (TMP) – How We Go

o Water and Wastewater Master Servicing Plan (MSP) – How We Flow

• Development Charge Background Study, 2012: The Regional Development Charges (DC) By–law supports Regional Council’s strategic priorities by providing funding for growth related capital. The Region is currently completing a new DC Study as the current DC By-law expires in August 2017.

• Energy Conservation & Demand Management Plan, 2014: The purpose of the Niagara Region Energy Conservation and Demand Management (ECDM) Plan is to develop a framework for the Region to understand the historical impact of its operations on GHG emissions, and to take action by setting GHG reduction targets in accordance with Ontario Regulation 397/11 under the Green Energy Act 2009.

• A Home for All: Niagara’s 10-year community action plan to help people find and keep housing, 2013: Development of this plan was carried out in three phases led by a steering committee composed of Regional staff representatives from Community Services, Public Health, Planning and Development and Niagara Regional Housing. The plan was reviewed by Niagara Regional Council in July 2013, submitted to the Ministry of Municipal Affairs and Housing f or review and comment, and presented for approval by Niagara Regional Council in November 2013.

• Biosolids Management Master Plan, 2011: This Plan reviewed the Region’s previous (2001) biosolids management strategy including current works and practices and made recommendations to ensure the continued viability of the Region’s biosolids management program.

• Water and Wastewater Master Servicing Plan, 2011 & 2017 Update: This Plan develops a long-term servicing strategy for the Region’s water and wastewater systems. The 2011 study follows the Class EA process and addresses the Region’s water and wastewater servicing needs to the year 2031 while incorporating post 2031 visioning. With an updated planning horizon to 2041 as part of Niagara 2041, the 2017 W&WW MSP update needs to reflect new growth projections. An updated Master Servicing Plan is expected to be available in the second quarter of 2017, and will validate the projects listed in Table 5-1.

• Bikeways Master Plan, 2003: This Plan establishes a long-term vision and strategy to provide programs and infrastructure to support recreational, tourism and utilization cycling.

• Transportation Strategy Update, 2012: This Plan outlines key strategic directions for transportation, identify the initiatives that support those directions, set out the objectives that each initiative should achieve and lay out the process for implementation of the strategy.

• Transportation Master Plan, 2017: As part of Niagara 2041, this Plan will establish a long-term transportation vision for the Region and how it can be improved for all travel modes, including walking, cycling, transit, automobiles and goods movement.

The following table outlines major expansion works planned over the next ten years to accommodate growth or legislated requirements.

Table 5-1 Forecast Region Asset Portfolio Growth & Enhancement


ASSET AREA GROWTH/UPGRADE PROJECTS

PUBLIC WORKS

Transportation

Pavement Capacity improvements on RR 38 Martindale Rd, RR 55 Rice Rd, RR 55 Niagara Stone Rd, RR 81 Main St, RR 89 Glendale Ave

Structures None

Signals Intersection improvements RR 20 St. Catharines St Industrial Park Rd

to Townline Rd, RR 46 Geneva St at St. Paul St, RR5 Killaly St at Mellanby Ave

Illumination Additional luminaires will be transferred from LAMs to the Region

Patrol Yards The Region is undergoing rationalization process for determining the optimal number and location of patrol yards.

Storm Sewers Region and LAMs are currently identifying ownership of individual storm sewers.

Fleet Growth/upgrades not currently planned

Water

Mains • •

New watermain across the Welland Canal from Fielden Reservoir to existing main at Chippawa Rd

Treatment Plants • •

Increase capacity of raw water supply to WTP (DeCew) Increase security of supply to WTP (Fenwick) but depends on the

recommendations of the 2017 MSP


•

•

•

•

Increase capacity of pumping stations (Stevensville, Shoalts No. 2, Lincoln)

New elevated storage (Port Colborne) is currently under construction

Increase capacity of storage reservoir (Stevensville, Grimsby, Fielden) but depends on the recommendations of the 2017 MSP

Decommission storage tanks / standpipe (King St, Crescent Park, Ridgeway) deconstruction work is planned

Wastewater

• New trunk main (Towpath line along Quaker Rd between Pelham St and Montgomery Rd) but depends on the recommendations of

the 2017 MSP

Pipes & Mains •

•

•

Increase capacity of trunk mains (Park Rd to Lake St, Victoria Ave SPS and Ontario St SPS) is currently under construction

Increase capacity of forcemain (Smithville, Foss Rd, Grassy Brook) with Smithville work currently underway and other forcemain work

pending outcomes from the 2017 MSP Decommissioning of old NOTL WWTP and Port Robinson lagoon

Treatment Plants • Increase capacity of WWTP (Baker Rd, Welland) with Welland work underway and Baker Rd work informed by the

ASSET AREA GROWTH/UPGRADE PROJECTS

recommendations of the 2017 MSP • Process improvements at WWTP (Port Weller, Niagara Falls) are

under design


• Increase capacity of pumping stations (Roberts Rd, Smithville, Victoria Ave, Jordan Valley, Foss Rd, Towpath, Alliston, Grassy Brook, Garrison Village) with some of this work underway and some pending the completion of the 2017 MSP

• Add variable frequency drives to pumping station (Carlton St) Construction is tender closes mid-January 2017

Waste Management

Recycling Centre • Growth/upgrades not currently planned

Landfills

• Humberstone Landfill site expansion and associated infrastructure upgrades

• Niagara Road 12 Landfill Site pump station upgrades • Niagara Road 12 Cell 4 construction • Niagara Road 12 and Mountain Road landfill storm water

management pond enlargements • Glenridge Quarry passive venting system installation • Glenridge leachate collection system upgrades • Mountain Road leachate collection system upgrades • Bridge Street Residential Drop-off upgrades • NR-12 Residential Drop-Off upgrades

HEALTH & COMMUNITY

Public Health

Public Health Service Facilities Growth/upgrades not currently planned

Ambulance Services

As part of Master Planning process, Region is determining the optimal number and coverage of ambulance bases. New EMS Reporting Hub central facility is planned in the capital budget (2018).

Social & Community Services

Daycare Facilities Growth/upgrades not currently planned

General Assistance Facilities Growth/upgrades not currently planned

Long Term Care Facilities

Three of the Region’s long-term care homes (Linhaven, Gilmore Lodge and Upper Canada Lodge) have been identified for redevelopment under the Long-Term Care Home Renewal Strategy in support of meeting the Ministry of Health and Long-Term Care current design standards by the end of December 2024. The framework for the redevelopment is based on input from a range of stakeholders, including other service providers (not-for-profit, for-profit providers as well as other municipal providers), government partners and residents of Niagara and includes a comprehensive review of alternative


ASSET AREA GROWTH/UPGRADE PROJECTS service delivery models.


Public Housing Facilities A new social housing complex, with up to 85 units, is planned to be building in St. Catharines to address high demand for one and two bedroom affordable housing units.

GENERAL GOVERNMENT

Information Technology

Hardware / Software

A new data centre is under construction at Regional HQ to house IT Infrastructure. Construction is slated for completion in fall 2017. The new data centre will provide increased capacity for growth and allow the Region to provide collocation opportunities with Area municipalities and ABCs.

Facilities

Government Growth/upgrades not currently planned

Police New Police Headquarters building was constructed in 2016. Property has also been acquired for new St. Catharines District 1 Station.

Police

Fleet Growth/upgrades not currently planned

IT Growth/upgrades not currently planned

5.2 Asset Lifecycle Management Strategies

Asset lifecycle management strategies are planned actions that enable assets to provide the desired LOS in a sustainable way, while managing risk, at the lowest lifecycle cost. Asset lifecycle management strategies are typically organized into the following categories:

• Non-Asset solutions are developed through the master planning process conducted by each service area.

• Expansion of the asset portfolio is developed through the master planning process conducted by each service area.

• Renewal of the asset portfolio is based on maintaining assets in condition state “fair” or better and sustaining the asset portfolio through reinvestment. Renewal activities are prioritized for higher criticality assets based on legislated and corporate requirements.

• Operations and maintenance of the asset portfolio is based on previous years expenditures with allowances for forecast growth.

As the master planning processes provide the focus for non-asset solutions and expansion of the asset portfolio, the focus in this AM Plan is the renewal of the assets once in place. The Region preserves assets through maintenance and renewal (i.e., rehabilitation and replacement) activities and investments. Maintenance and renewal activities are timed to reduce the risk of service failure from deterioration in asset


condition, and to minimize the total cost of ownership. Sufficient investment, doing the right thing to the right asset at the right time for the right reason, is crucial.

The conceptual asset lifecycle model is illustrated in the Figure 5-3 below. This conceptual model plots the cash flow associated with creating and sustaining the asset over time.

Figure 5-3 Conceptual Lifecycle Cost Model

5.2.1 Non-Asset Solutions Strategies

The Region invests in the following non-asset solutions:

• Continuing to manage demand through public education and demand reduction and other demand management programs.

• Balancing use (e.g., kilometres, hours, waste disposal cell volume) by shifting assets from higher use to lower use.

• Smoothing peaks in demand over time.

• Energy conservation and demand management initiatives such as process optimization and public education.

• Creation of shared assets to reduce the asset portfolio size (e.g., shared fleet assets)

• Integrating the planning of infrastructure renewal across asset classes (e.g., scheduling road and buried infrastructure replacements at the same time).

• Working with the cities and towns to optimize infrastructure management (e.g. data sharing agreements).

• Continuously improving an integrated set of asset management best practices.


5.2.2 Renewal Strategies

All assets physically deteriorate at different rates to eventual failure and loss of ability to deliver the required LOS. Asset condition is a measured assessment of an asset’s current position or place on the asset “decay” or deterioration curve. Many assets deteriorate slowly at first to a fair condition and, after that, there is more rapid degradation. This typical lifecycle pattern for assets such as pavement and building components is illustrated in the figure below which shows the relationship between the pavement condition index and effective life (i.e., age). A key observation is that it is far more cost effective to maintain and rehabilitate assets before they reach a condition where the only option is costly reconstruction. In Figure 5-4 below, the blue line tracks the deterioration of the original asset until year 24 when it is resurfaced (Rs1). The green line tracks the improved condition and the deterioration of the resurfaced asset until year 41 when it is again resurfaced (Rs2). The orange line tracks the improved condition and the deterioration of the resurfaced asset until year 66 when it is reconstructed (Rc). Resurfacing at years 24 and 41 (shown in green and orange) extends the life by 42 years at a fraction of the lifecycle cost to replace the asset at year 33.

Figure 5-4 Typical Asset Decay Curve

For assets where preventative maintenance and rehabilitation activities are technically feasible, understanding the asset’s current condition and place on the asset decay curve enables forecasts of future condition and determination of optimal treatment type and timing – key aspects of lowest lifecycle cost renewal decision-making. The Region invests in condition assessments to gain the critical knowledge needed to understand where the asset is on the deterioration curve and determine the lowest lifecycle strategies.

For each asset portfolio, the following AM strategy information is developed based on input from Region staff, as summarized in Table 5-2. Examples of how to interpret Table 5-2 is provided for pavement:

• What treatments are available (e.g., replace, resurface)?


• For each treatment type: − What is the cost of the treatment? (e.g., $45/m2 to resurface pavement) − Under what situations will a treatment be or not be applied? (e.g., a resurface

treatment will be applied in an Urban or Suburban environment) − What triggers a treatment to be applied? (e.g., a resurface is applied when the

age reaches 21 and 42 years (service criteria of condition (PCI for pavement) reaches 60)

− What is the benefit of the treatment? (e.g., maximum gain realized from a resurface treatment is 40 PCI points or 21 years life)

− How many times can a treatment be applied? (e.g., two resurface treatments).



Table 5-2 AM Strategy Analysis Inputs

Asset Portfolio / Group Asset Sub Group Activity

Unit Cost

Activity Description

Activity Time

(Years) Activity

Cost Replace ReplacementTime (Years)

ReplacementCost

PUBLIC WORKS

Transportation

Pavement Arterial – Urban & Suburban m2 Resurface 21, 42 $45 Replace 66 $250

Arterial – Rural m2 Resurface 21, 42 $45 Replace 66 $115

Structures Bridges m2 Rehab 25, 50 $1,600 Replace 75 $5,240

Culverts m2 Rehab 25 $600 Replace 50 $4,190

Signals Underground % Replace JB's 15 2.40% Replace 30 100%

Conductors % - - - Replace 20 100%

Poles - (poles, arms, brackets) % - - - Replace 30 100%

Signals % Replace signal

indications 7 3.20% Replace 15 100%

Cabinet/Controller % Replace components 10 2.80% Replace 15 100%

Detection - (loops or aerial type) % - - - Replace 10 100%

Power Supply - (inc. - DB pole) % - - - Replace 15 100%

Illumination Luminaires ea - - - Replace 25 $700

Poles, foundation, electrical ea - - - Replace 50 $7,500

Patrol Yards Refer to Facilities

Storm Sewers Asbestos Cement % - - - Replace 70 100%

CL % - - - Replace 70 100%

Concrete % - - - Replace 90 100%



Unit Cost


Activity Time

(Years) Activity

Cost Replace Replacement Time (Years)

Replacement Cost

Corrugated Steel Pipe % - - - Replace 75 100%

PVC % - - - Replace 75 100%

Reinforced Concrete % - - - Replace 60 100%

Vitrified Clay Pipe % - - - Replace 70 100%

Fleet & Equipment % - - - Replace 2 to 50 100%

Retaining Walls % - - - Replace 50 100%

Cross and Driveway Culverts

Corrugated Steel Pipe % - - - Replace 30 100%

Concrete Box % - - - Replace 60 100%

Concrete Pipe % - - - Replace 60 100%

Other Pipe Materials (Plastic) % - - - Replace 30 100%

Guide Rails % - - - Replace 20 100%

Water

Watermains Asbestos Cement % - - - Replace 60 to 70 100%

Cast Iron % - - - Replace 60 to 100 100%

Concrete % - - - Replace 70 to 100 100%

Concrete Pressure Pipe % - - - Replace 70 to 110 100%

Ductile Iron % - - - Replace 60 to 90 100%

HDPE % - - - Replace 70 100%

Polyethylene % - - - Replace 60 to 70 100%

PVC % - - - Replace 75 100%

Stainless Steel % - - - Replace 60 to 90 100%

Steel % - - - Replace 70 100%

Steel Cement Lined % - - - Replace 90 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Copper % - - - Replace 60 100%

Undefined % - - - Replace 60 100%

Water Treatment Plants Building Arch (B & C) % localized repairs 20 20% Replace 40 100%

Building M&E (D) % - - - Replace 30 100%

Building Structural (A) % excavation, reparging,

repairs 33, 66 20% Replace 100 100%

Site Works (G) % localized repairs 10, 20 15% Replace 30 100%

Process Structural % - - - Replace 60 100%

Process Electrical % - - - Replace 30 100%

Process Instrumentation % - - - Replace 10 100%

Process Piping & Equip

Flocculation Tank % - - - Replace 20 100%

Settling Tank % - - - Replace 20 100%

Intake % - - - Replace 20 100%

Pre-Treatment Tank % - - - Replace 20 100%

Pre-Chlorination % - - - Replace 10 100%

Low Lift Pump % - - - Replace 30 100%

Reservoir (consolidated) % - - - Replace 20 100%

Travelling Screen % - - - Replace 20 100%

Gravity Shaft % - - - Replace 30 100%

Tunnel Shaft % - - - Replace 30 100%

High Lift Pump % - - - Replace 30 100%

Chlorination % - - - Replace 10 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Chlorine Contact Tank % - - - Replace 10 100%

Post-Chlorination % - - - Replace 10 100%

Coagulation % - - - Replace 10 100%

Filter % - - - Replace 30 100%

UV Disinfection % - - - Replace 20 100%

Clear Well % - - - Replace 40 100%

Backwash Pump % - - - Replace 30 100%

Oil Separator % - - - Replace 40 100%

Dechlorination % - - - Replace 10 100%

Touch-Up-Chlorination % - - - Replace 10 100%

pH Correction % - - - Replace 10 100%

Process to Waste System % - - - Replace 20 100%

Substation % - - - Replace 30 100%

Support Facilities & Other Building Arch (B & C) % localized repairs 20 20% Replace 40 100%








Process Piping & Equip % Replace 30 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Wastewater

Sanitary Mains Forcemains

Asbestos Cement % - - - Replace 60 to 70 100%

Cast Iron % - - - Replace 60 to 100 100%

Concrete % - - - Replace 70 100%

Concrete Pressure Pipe % - - - Replace 70 to 80 100%

Ductile Iron % - - - Replace 60 to 70 100%

HDPE % - - - Replace 60 to 70 100%


PVC % - - - Replace 75 100%

Stainless Steel % - - - Replace 60 to 70 100%

Gravity Mains

ABS % - - - Replace 70 100%

Asbestos Concrete % - - - Replace 60 to 80 100%

Cast Iron % - - - Replace 70 100%

Clay % - - - Replace 60 to 70 100%

Concrete % Relining 48 to 88 50% Replace 98 to 138 100%

Concrete Pressure Pipe % Relining 56 to 72 50% Replace 106 to 122 100%

Corrugated Steel Pipe % - - - Replace 60 to 90 100%

Ductile Iron % - - - Replace 60 100%

HDPE % - - - Replace 60 to 70 100%


PVC % - - - Replace 75 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Reinforced Concrete % - - - Replace 60 100%

Stainless Steel % - - - Replace 60 100%

Steel % - - - Replace 70 to 80 100%

Vitrified Clay % - - - Replace 60 to 70 100%

WWTPs Building Arch (B & C) % localized repairs 20 20% Replace 40 100%








Process Piping & Equip

Flow Distribution % - - - Replace 30 100%

Influent Chamber/ Channel % - - - Replace 30 100%

Influent PS % - - - Replace 30 100%

Grit Removal System % - - - Replace 30 100%

Bar Screens % - - - Replace 30 100%

Bypass % - - - Replace 30 100%

Chemical Treatment (Coagulation) % - - - Replace 10 100%

Chemical Treatment (SBS) % - - - Replace 10 100%

Chemical Treatment (Sodium Hypochlorite) % - - - Replace 10 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Chlorine Contact Chamber % - - - Replace 30 100%

De-Chlorination Contact Chamber % - - - Replace 30 100%

Advanced Treatment % - - - Replace 30 100%

Electrical Control (MCC) % - - - Replace 30 100%

Generated Power ( Backup) % - - - Replace 30 100%

Primary Treatment (Clarifier) % - - - Replace 30 100%

Secondary Treatment (Aeration) % - - - Replace 30 100%

Secondary Treatment (Clarifier) % - - - Replace 30 100%

Secondary Treatment (RAS/WAS) % - - - Replace 30 100%

Solids Processing (Digestion) - Primary % - - - Replace 30 100%

Solids Processing (Digestion) - Secondary % - - - Replace 30 100%

Biosolids Recycling % - - - Replace 30 100%

Solids Dewatering % - - - Replace 30 100%

Solids Thickening % - - - Replace 30 100%

Waste Gas Boiler/ Burner % - - - Replace 30 100%

Odour Control % - - - Replace 30 100%

Final Treatment % - - - Replace 30 100%

Support Facilities & Other Building Arch (B & C) % localized repairs 20 20% Replace 40 100%




Unit Cost


Activity Time

(Years) Activity


Replacement Cost







Process Piping & Equip % - - - Replace 30 100%

Waste Management

Recycling Centre

Facility Building Arch (B & C) % localized repairs 20 20% Replace 40 100%





Environmental Monitoring Monitoring Wells % - - - Replace 30 100%

Process & Operations Air Compressor System (Fibre & Container Opticals) % - - - Replace 15 100%

Container Baling System % - - - Replace 15 to 20 100%

Container Processing Line % - - - Replace 7 to 20 100%

Fibre Baling System % - - - Replace 15 to 20 100%

Fibre Optical Sorting System % - - - Replace 20 100%

Fibre Processing Line % - - - Replace 20 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Glass Processing System % - - - Replace 20 100%

Plant Rolling Stock % - - - Replace 5 100%

Polystyrene Densifier System % - - - Replace 15 100%

Site Features Scalehouse % - - - Replace 40 100%

Fencing % Replace 30 100%

Stormwater Management Berms, Ditches, Swales % - - - Replace 50 100%

Landfills

Environmental Monitoring Monitoring Wells / Gas Probes % - - - Replace 30 100%

Process & Operations Landfill Gas Collection & Flaring System (LGCFS) % - - - Replace 20 to 40 100%

Blowers % - - - Replace 20 100%

Electrical Equipment % - - - Replace 20 100%

Flare Building % - - - Replace 40 100%

Gas Flare % - - - Replace 20 100%

Header Pipe % - - - Replace 30 100%

Passive Gas Ventilation System % - - - Replace 30 100%

SCADA / PLC's % - - - Replace 30 100%

Seal Condensate Trap (SCT) % - - - Replace 30 100%

Valves, Chambers & Hickenbottom % - - - Replace 20 100%

Wellfield % - - - Replace 25 100%

Leachate Collection System (LCS) % - - - Replace 20 to 50 100%

Constructed Wetlands % - - - Replace 50 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost


Finger Drains % - - - Replace 30 100%

Forcemain % - - - Replace 40 100% Leachate Piping & Underdrain % - - - Replace 30 100%

Manholes (LCS) and Pump Stations % - - - Replace 25 100%

Pumping Wells % - - - Replace 30 100%

Pumps & Apparatuses % - - - Replace 20 100% Valves, Chambers & Hickenbottom % - - - Replace 30 100%

Site Features Facility % - - - Replace 20 to 100 100%


Office Building % - - - Replace 50 100%

P.C.B Containment Cell % - - - Replace 25 100%

Pavilion % - - - Replace 60 100% Residential Waste & Recycling Drop-Off Depot

% - - - Replace 30 100%

Re-Use Building % - - - Replace 30 100%

Scalehouse % - - - Replace 40 100%

Storage & Maintenance % - - - Replace 30 100%

Weighscales % - - - Replace 20 100%

Fencing % - - - Replace 30 100%

Material Processing % - - - Replace 25 to 30 100%

Roadway % - - - Replace 25 to 30 100%

Site Specific % - - - Replace 30 to 100 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Capping % - - - Replace 100 100%

Landscaping % - - - Replace 50 100%

Landscaping % - - - Replace 50 100% Leash Free Dog Park Structures % - - - Replace 30 100%

Playground Area % - - - Replace 30 100%

Utilities & Services % - - - Replace 30 to 60 100%

Manholes (Sanitary) % - - - Replace 30 100%

Sewers / Water Services % - - - Replace 60 100%

Walkways % - - - Replace 25 to 50 100%

Boardwalk % - - - Replace 25 100%

Interlock Walkway % - - - Replace 50 100%

Trails % - - - Replace 20 100%

Stormwater Management Berms % - - - Replace 100 100% Catchbasins, culverts, ditches, manholes, valve chambers % - - - Replace 30 100%

Storm Management Ponds % - - - Replace 50 100%

Storm sewer % - - - Replace 60 100%

Household Hazardous Waste Depot (HHW)

HHW Depots % - - - Replace 40 100%

HEALTH & COMMUNITY

Public Health

Public Health Facilities Refer to Facilities

Ambulance Services Ambulances % - - - Replace 5 100%

Emergency Service Vehicles % - - - Replace 3 100%

Admin Vehicles % - - - Replace 8 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Equipment/ Trailer % - - - Replace 10 100%

Power Stretchers % - - - Replace 7 100%

Ambulance computers % - - - Replace 7 100%

Cardiac monitors % - - - Replace 6 100%

Lift Conveyance % - - - Replace 7 100% Social & Community Services Daycare Refer to Facilities General Assistance Facilities Refer to Facilities

Long Term Care

A-Structure A10 to A50: Structural and Exterior Architectural %

Excavations, repairs,

reparging 33, 66 25% Replace 100 100%

B-Shell B10-Wall Systems (Exterior Walls) %

replace spalled

bricks, partial siding

replacement

25 20% Replace 50 100%

B20-Roof

Sloped Shingled

%

Partial replacement of shingles,

localized repairs

7 20% Replace 15 100%

Modified Bitumen 10 20% Replace 20 100%

Flat Roof with Gravel Surface 10 20% Replace 20 100%

B30-Windows (Windows and Sealants) % - 7 10% Replace 30 100%

B40-Doors (Doors and Sealants) % - - - Replace 20 100%

C-Interiors C10-Interior Construction (Partitions) % - - - Replace 30 100%

C20-Doors (Interior Doors) % - - - Replace 25 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

C30-Stairs (Stair Construction) % - - - Replace 50 100%

C40-Wall Finishes % - 1 20% Replace 15 100%

C50-Floor Finishes

Carpet % Rehab - - Replace

12 100%Sheet Vinyl 20

VCT 30

C60-Ceiling Finishes %

Localized repairs or

partial replacement (acoustic tile,

gypsum board ceiling,

etc.)

12 20% Replace 25 100%

C70-Life Safety % - - - Replace 10 100%

D-Services D10-Conveying (Elevators) % - - - Replace 35 100% D20-Plumbing (Domestic Hot Water Plant) % - - - Replace 20 100%

D30-HVAC & Refrig (Make-Up Air Units and Central heating Plant)

% - - - Replace 25 100%

D30-HVAC & Refrig (Central Cooling Plant) 20

D40-Fire Protection % - - - Replace 20 100%

D50-Electrical (Lighting) % - - - Replace 20 100%

D50-Electrical (Generator) 25 D50-Electrical (Main Switch Gear) 40

D50-Electrical (Transformer) 30 D60-Comm & Security (Patient Communication Response System, Patient Wandering and Door Security Systems)

% - - - Replace 12 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

G-Site % localized repairs to asphalt

10, 20 15% Replace 30 100%


A-Structure A10-Foundation Walls and A20 – Footings (Footings & Foundations)

% Excavations,

repairs, reparging

33, 66 25% Replace 100 100%

A30-Floor Structures % repairs 50 10% Replace 100 100% A40-Roof Structure and A50 – Wall Structures (Structural Framing)

% refurbishment of damaged

areas 33, 66 10% Replace 100 100%

B-Shell B10-Wall Systems (Exterior Walls) %

replace spalled


replacement

25 20% Replace 50 100%

B20-Roof (Roof coverings) %


localized repairs

12 20% Replace 20 100%

B30-Windows (Exterior Window and Door Hardware) % Rehab 7 10% Replace 30 100%

B40-Doors (Exterior Doors) % - - - Replace 20 100%

C-Interiors C10-Interior Construction (Partitions, Millwork) % - - - Replace 30 100%

C20-Doors % - - - Replace 25 100%

C30-Stairs % - - - Replace 50 100%


C50-Floor Finishes % - - - Replace 20 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost


localized repairs or



etc.)

12 20% Replace 25 100%

C70-Life Safety % - - - Replace 10 100%

D-Services D10-Conveying % - - - Replace 35 100%

D20-Plumbing % - - - Replace 20 100%

D30-HVAC & Refrig % - - - Replace 20 100%

D40-Fire Protection % - - - Replace 20 100%

D50-Electrical (Lighting) % - - - Replace 20 100%

D50-Electrical (Emergency Power System) % - - - Replace 25 100%

D50-Electrical (Primary Switchgear) % - - - Replace 40 100%

D50-Electrical (Primary Transformer) % - - - Replace 30 100%

D60-Comm & Security % - - - Replace 12 100%

G-Site % localized repairs to asphalt

10, 20 15% Replace 30 100%

GENERAL GOVERNMENT Information Technology

Computers Desktop Personal Computers (PC) % - - - Replace 4 100%

Workstations % - - - Replace 4 100%

Servers % - - - Replace 5 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

Mobile Computing Laptop Computers % - - - Replace 4 100%

iPads % - - - Replace 3 100%

Peripheral devices Multi-Function Copiers % - - - Replace 10 100%

LaserJet/Inkjet Printers % - - - Replace 3 100%

Monitors % - - - Replace 10 100%

Audio/visual Equipment (Video projectors) % - - - Replace 5 100%

Telecommunication Phone & Voice Mail System % - - - Replace 10 100%

Desktop Phone equipment % - - - Replace 10 100%

Smartphones, cellphones % - - - Replace 3 100%

Networking equipment Network Switches % - - - Replace 5 100%

Wireless Access Point % - - - Replace 5 100%

Twisted pair cables, fiber optic cables % - - - Replace 5 100%

Software Large Enterprise Apps % - - - Replace 10 100%

Other Applications % - - - Replace 5 100%

Facilities

Government, Police

A-Structure A10-Foundation Walls % Excavations,

repairs, reparging

33, 66 25% Replace 100 100%

A20-Footings % Replace 100 100%

A30-Floor Structures % repairs 50 10% Replace 100 100%

A40-Roof Structure % refurbishment of damaged

areas 33, 66 20% Replace 100 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

A50-Wall Structures % concrete

block repairs, crack repairs

33, 66 10% Replace 100 100%

B-Shell B10-Wall Systems %

replace spalled


replacement

25 20% Replace 50 100%

B20-Roof %


localized repairs

12 20% Replace 25 100%

B30-Windows % - 15 10% Replace 30 100%

B40-Doors % - 10 10% Replace 20 100%

C-Interiors C10-Interior Construction % - - - Replace 30 100%

C20-Doors % - 12 Replace 25 100%

C30-Stairs % - - - Replace 50 100%


C50-Floor Finishes % - 6 5% Replace 12 100%


localized repairs or



etc.)

12 20% Replace 25 100%

C70-Life Safety % - 5 20% Replace 10 100%

D-Services D10-Conveying % - 15 20% Replace 35 100%

D20-Plumbing % - - - Replace 20 100%

D30-HVAC & Refrig % - - - Replace 20 100%



Unit Cost


Activity Time

(Years) Activity


Replacement Cost

D40-Fire Protection % - 5 5% Replace 20 100%

D50-Electrical % - - - Replace 35 100%

D60-Comm & Security % - - - Replace 12 100%

G-Site %

localized repairs

asphalt, tree planting/

removals, exterior stair

repairs

10, 20 15% Replace 30 100%

Police

Fleet Admin Vehicles % - - - Replace 7 100%

Invest % - - - Replace 7 100%

Patrol % - - - Replace 5 100%

Specialty % - - - Replace 9 100%

Utility % - - - Replace 7 100%

IT Desktops/Laptops/Tablets % - - - Replace 4 100%

Firewall System % - - - Replace 5 100%

Mobile Laptop MDT % - - - Replace 5 100%

Monitors % - - - Replace 10 100%

Motorola P25 700 MHZ Voice Radio System % - - - Replace 5 100%

Network Equipment % - - - Replace 5 100%

New HQ Network/Server/Phone Equipment

% - - - Replace 10 100%

Tech Crime/ICE Infrastructure % - - - Replace 10 100%

Versaterm Servers % - - - Replace 5 100%

Miscellaneous Systems % - - - Replace 5 100%


For each asset, understanding the condition informs the asset’s position in the lifecycle, which enables application of the most appropriate next treatment at the most opportune time, and then the appropriate subsequent treatments and timings. This simple lifecycle analysis assumes that the asset strategies outlined in the above tables are optimal or have been optimised. The “optimised” asset lifecycle strategy is the lowest cost strategy for the specified levels of services. Although not economically analysed as optimal, the asset lifecycle strategies outlined in the above table are those generally applied (assuming availability of funding) by municipalities in Southern Ontario, adjusted by Region staff based on knowledge of asset construction variations, current asset condition and operating environments. The performance of the Region’s current strategies is reflected, in part, in the current condition of the assets (reference Figure 4-1).

An example of an optimized AM strategy is for pavement, which makes up a significant proportion (21.4%) of the Region’s asset portfolio. The practice of pavement management has evolved over the past 50 years to a current state where a mechanistic-empirical pavement design procedure is combined with a lifecycle cost-benefit analysis process to ensure that pavement design meets performance criteria and is optimized for lifecycle cost. The Region’s pavement management system (PMS) considers historical condition ratings to develop deterioration curves to forecast future condition and enables optimization of treatment types and timings over time. As part of the 2016 pavement inspections and analysis, the Region plans to expand the use of preservation techniques to further extend the service life of the Region’s roadway pavement. It is expected these may include full width pavement treatments such as modified chip seals, thin overlay treatments, and mill and inlay techniques, and localized maintenance activities such as shallow and deep asphalt patching, and crack sealing. The Region will track the costs and benefits (i.e., life extensions) of these preservation techniques over time for use in future AM strategy decision-making, including the ability to predict future pavement performance based on varying investment amounts. Through this additional information, the Region can improve the accuracy of the cost inputs in Table 5-2 and refine the financial forecasts in Section 6 in future updates of this AM Plan.

In summary, the above table provides a succinct list of the AM strategies for every asset portfolio: the set of capital renewal treatments that need to be undertaken to sustain the specified service criteria (i.e., condition) over time. Associated with these future renewal treatments is a forecast of costs to implement them. This cost and available funding for the asset renewal strategies is provided in Section 6, Financing Strategy. Over time, as the Region refines the AM strategies through optimization analyses, the tracking of condition against targets and the application of renewal activities within approved funding envelops to meet the LOS targets will become more routine.

5.2.3 Maintenance and Operations

Renewals and maintenance are strongly linked; maintenance strategies can hasten or delay the need for renewals, and if renewals are deferred, this can increase


maintenance needs. The distinction between renewals (which are capital works) and maintenance (which is an operational expense) is set by accounting policies and Standard Operating Procedures. Maintenance ensures the asset continues to deliver agreed LOS, while renewals extend the asset’s useful life.

Asset operations and maintenance requirements and associated resources are assessed and prioritized based on:

• Carrying out legislated operations and maintenance activities to ensure safety and environmental sustainability in accordance with the appropriate regulations.

• Conducting routine and preventative maintenance activities to ensure preservation of existing assets.

• Analysis of current operations and maintenance (O&M) contracts and known historical costs of delivering agreed LOS to forecast future O&M costs. For example, in some cases O&M costs increase at the rate of inflation, and in other cases such as energy and oil for pavement, costs have increased significantly more over time than the overall rate of inflation.

• Assessing consequential operational and maintenance requirements of significant new infrastructure planned to be added to the asset portfolio.

The level of expected population and asset portfolio growth will also place significant pressure on the capacity of existing operations and maintenance. Consequential operational expenditure is the operations and maintenance cost associated with new assets. For example, for a new facility, the costs of electricity, natural gas and routine maintenance all contribute to the consequential operational expenditure associated with that new asset. These costs will be incurred by the Region into the future for as long as the facility is in use. For most assets, a good estimate of the consequential operational expenditure required to operate and maintain the new assets is simply the existing operations and maintenance cost multiplied by the growth factor.

5.3 Procurement Methods

Defined procurement methods help to ensure the most efficient allocation of resources when executing AM strategies such as maintenance and renewals works completed by external contractors and suppliers. Procurement is the delegated authority to perform functions such as sourcing of products and services, issuance of bids, issuance of purchase orders and contracts, monitoring of the bid process, conducting public tender openings, contract award, vendor disputes, and the disposal of surplus goods.

The Region works closely with the 12 local area municipalities, the province, utility companies, and private industries to coordinate service delivery and asset management. This includes joint planning and alignment of timing for several programs and capital projects such as:

• Joint purchasing / contract delivery is used for capital projects where Regional, local, and other work can be undertaken together


• Joint program delivery between the Region and local area municipalities is used for programs such as snow clearing, traffic signal maintenance, road works and water and wastewater buried infrastructure renewal, including relining.

This coordination helps to maximize cost effectiveness and achieve economies of scale, while also minimizing the disruption in service to residents.

The Region is currently enhancing its capital delivery processes and staff capabilities to meet best in class practices and strict audit requirements. Like many municipalities, the Region has struggled to deliver the significant programs of capital projects needed to simultaneously support development, upgrade and renewal of assets.

The Region is also embracing alternative service delivery as potential model for operating assets and delivering services. Alternative service delivery looks at alternative ways to obtain infrastructure assets or deliver services other than the traditional method of building, owning and operating. From a capital or asset perspective, the traditional method for the Region is to build an asset under the Design Build approach. In addition to these, other methods may include formal partnerships or co-developments to acquire an asset. From a service perspective, alternative arrangements could include items such as an outsource arrangement, a concession arrangement, or another form of a commercial arrangement (i.e. joint venture, partnership, corporate entity).

Under Council's strategic priorities, $1 billion in corporate assets have been identified for potential alternative service delivery reviews. During the priority-setting process, Council identified long-term care home redevelopment and social housing as priority candidates for comprehensive review for applicability of alternative service delivery.

It is the objective of the Region that all goods and services are acquired on a competitive, fair and open basis in a manner that is efficient and accountable. The Region’s Purchasing Bylaw guides all procurement practices and is supported by internal policies and procedures.

5.4 Risks Associated with the Strategies

Risks relating to asset infrastructure failure are mitigated through condition and risk assessments, proactive maintenance programs that include predictive, preventative and corrective maintenance, and capital renewal programs to ensure that the work required to achieve the established LOS is identified and implemented. Annual maintenance and capital programs, and associated budgets, ensure that funding to undertake the necessary work is provided.

A significant risk is inadequate resources to undertake programmed maintenance and renewal works, including funding, business processes, staffing, and supporting technology. The Region is currently developing a comprehensive, industry standard approach to project delivery based on the Project Management Institute (PMI) project management body of knowledge to ensure effectiveness, quality and transparency.


6. Financing Strategy

This section presents a financial projection of renewal investment needs based on the data and assumptions made to support the State of the Infrastructure in Section 3 and asset renewal strategies in Section 5. The forecast renewal investment needs are then compared to planned renewal investments as outlined in the 10-year Capital Budget and Forecast 2016 to 2025 to identify funding shortfalls.

6.1 Actual Expenditures

The following table provides actual historical capital expenditures for the Region’s infrastructure. Capital funds for initial construction of assets, funded by Development Charges, are included. Therefore, a direct comparison to the future forecasts in Section 6.2 is not appropriate. Note that for multi-year construction projects, only a portion of the cost is accounted for in a specific year.

Table 6-1 Actual Capital Expenditures

Department 2011 2012 2013 2014 2015 Transportation $35.7 $53.5 $41.0 $60.9 $80.8 Water & Wastewater $35.7 $42.4 $43.9 $40.8 $76.4 Waste Management $2.5 $2.4 $4.7 $2.6 $4.3 Facilities $3.7 $3.4 $2.8 $4.6 $5.5 NRH $3.6 $16.5 $12.0 $6.6 $2.7 Long Term Care $2.7 $7.4 $2.8 $1.7 $1.4 Ambulance Services $6.8 $1.7 $1.6 $3.0 $2.3 Police $9.7 $7.7 $7.0 $35.8 $31.3 IT $3.4 $2.7 $3.6 $5.1 $8.2

Total $103.7 $137.7 $119.4 $161.2 $212.8

6.2 10-Year Capital Budget and Funding Sources

Niagara Region has a Capital Program Funding Model, the purpose of which is to balance immediate and future needs, affordability and sustainability, while minimizing risk and supporting economic growth in the Region.

Each of the Region’s departments develops a 3-year operating budget, and a 10-year capital budget forecast which lays out the requirements for each of the departments’ programs, on a project by project basis. The Region prioritizes all capital funding requests including considerations such as compliance (regulatory requirements), sustainability, risk, enhancement, and growth. Coordination of projects between departments, and with local area municipalities and other stakeholders, is also considered.


The Funding Model lays out the various forms of financing that are used to support the capital plan, and the required level of contribution from levy funds and water and wastewater rates. According to the 2016 to 2025 Capital Budget and Forecast, the following graph summarizes the funding sources for the 10-Year program, for the Region as a whole and for each of the major asset portfolios:

Figure 6-1 Funding Sources for Planned Capital Renewal Investments

The Capital Program is a prioritized list of projects and budgets for each of the next ten years. To assess the financial sustainability of these capital investments, this AM Plan determines a longer-term outlook over 50 years for each asset class (Section 6.3). This longer term analysis ensures that both short term and longer term major expenditures beyond the next ten year period are considered in sustaining assets and developing appropriate reserves for peak investment requirements.

6.3 Future Renewal Investment Needs Projections

This section summarizes the estimated 50-Year long term renewal investment needs to sustain the Region’s existing assets, valued at $7.39 billion in current (2016) dollars.

The forecasted amounts do not include the costs of new growth assets or upgrades, except for the three long term care facilities which are expected to be renewed within the Capital Budget forecast. The amounts also do not include the costs of activities related to operating and maintaining the assets throughout the asset lifecycle (activities under the Operations Budget). It is assumed that these preventative treatments are performed such that the asset’s life is sustained until the specified service life.

The forecast aligns with the levels of service (LOS) supplied by the renewal strategies outlined in Table 5-2. The forecast is determined by applying the renewal strategies across each asset portfolio based on current “condition”, either direct rated or using age as a surrogate. For most assets, the first replacement requirement is forecasted based on the current condition or installation / construction date. When this information is not available, the forecast is developed based on determining a constant AARI, calculated by dividing the replacement value by the asset service life. This is a network level


analysis based on a schedule of work activities and associated costs applied to groups of assets for the purpose of determining required levels of funding.

Note that the forecasts summarized in this section represent the first long-term financial projections produced by the Region for renewal of its infrastructure assets. AM Plans are updated regularly and future iterations will be produced using improved data and processes to build upon and refine these financial projections.

The following graphs represent the estimated investment requirements for the next 50year period associated with the renewal strategies outlined in the previous section. The vertical bars represent the asset renewal investment needs in each year, in 2016$ dollars. The horizontal line shows the 50-year AARI which is the sum of all renewal investment needs, averaged over the 50-year modeling period (2016-2065). The next section of this chapter of the AM Plan compares the next ten years of the capital renewal plan to these forecast AARI.

Note that a high bar in the first year, 2016 indicates a “backlog” of work that is “due” based on the network analysis of the renewal strategies.

Over the next 50 years, it is estimated that the Region requires an average annual renewal investment (AARI) of $185.9 million to sustain the assets included in this AM Plan (replacement and major rehabilitations). This equates to an average Renewal Reinvestment Rate of 2.5% and an average useful life across all asset portfolios of 40 years.

Figure 6-2 Future Investment Forecast - Overall

6.3.1 Transportation

For transportation assets, the AARI is $40.62 million, including $22.6 million for road pavements and $8.53 million for structures. For road pavements, the Applied Research Associates, Inc report indicates that $30 million per year over the next ten years is recommended to maintain a network PCI of 73 and to bring down some of the backlog. The 50-year $22.6 million AARI for road pavements forecasted in this AM Plan is lower because the backlog work is spread over 50 years.


For retaining walls, storm sewers, illumination, signals, culverts, and guide rails, the current condition or installation date is not available, and therefore, the AARI was determined based on the value of assets divided by the service life specified in Section 5.

Figure 6-3 Future Investment Forecast - Transportation

$160 Guide Rails Culverts (Cross & Driveway)

$140 Retaining Walls Fleet

$120 Storm Sewers Patrol Yards

$100 Illumination Signals

$80 Structures Pavement

$60

Expe

nditu

res

($M

)

$40

$20

$0 2016 2021 2026 2031 2036 2041 2046 2051 2056 2061

Year

6.3.2 Water

The 50-year AARI for water assets is $31.66 million, consisting mainly for the treatment plants. Note the backlog of work related to water treatment plants.

Figure 6-4 Future Investment Forecast - Water

6.3.3 Wastewater

For wastewater assets, not including supporting facilities, the AARI is $74.19 million, reflecting the higher value of wastewater assets compared to water assets. Note the backlog of work related to wastewater treatment plants.


Figure 6-5 Future Investment Forecast - Wastewater

6.3.4 Waste Management

The 50-year forecast for Waste Management considers the documented inventory summarized in Section 3.1.3, excluding the capacity valuation at the two open landfills (Humberstone and Niagara Road 12). The AARI is determined based on the dividing the replacement value of each asset by its service life, as well as major facility rehabilitations required for the Recycling Centre. The AARI is estimated to be $2.59 million. The declining landfill investment is modeled after the final liability year for each closed landfill according to the Region’s 2015 Landfill Liability Report.

Figure 6-6 Future Investment Forecast – Waste Management

6.3.5 Public Health Services

For Public Health Services, consisting of Public Health facilities and ambulance (EMS fleet, equipment, and ambulance base) services, the AARI is $2.79 million ($0.27 million for Public Health facilities and $2.52 million for EMS fleet, equipment, and ambulance bases.


Figure 6-7 Future Investment Forecast – Public Health Services

$8.0

Expe

nditu

res

($M

) $7.0

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

Amublance Services Public Health Service Facilities

2016 2021 2026 2031 2036 2041 2046 2051 2056 2061 Year

6.3.6 Social & Community Services

Social & Community services consist of daycares, general assistance facilities, and long term care. For long term care, renewal and redevelopment strategies have been developed for three facilities (Linhaven, Gilmore Lodge, and Upper Canada Lodge). This major expenditure is forecasted to be $97 million, shown in the forecast in year 2021. This value was derived from the Region’s 10-Year Capital Budget. Overall, the AARI for facilities in Social & Community Services is $9.21 million, with $8.53 million per year for long term care facilities.

Figure 6-8 Future Investment Forecast – Social & Community Services

$120

Expe

nditu

res

($M

)

$100

$80

$60

$40

$20

$0

Daycare General assistance facilities Long Term Care

2016 2021 2026 2031 2036 2041 2046 2051 2056 2061 Year

6.3.7 Niagara Regional Housing (NRH)

The 50-Year AAI for NRH assets is $11.31 million. The forecast was determined by assigning a cost and condition at the level of hierarchy established for the useful lives in Table 5-2. Condition was averaged at this level of the hierarchy from the 2012 building condition assessments.


Figure 6-9 Future Investment Forecast – NRH

6.3.8 Information Technology (IT)

For IT assets, hardware assets were forecasted based on the replacement value divided by the service life of each asset. For software, the initial replacement was forecasted based on the status of the asset (initiation, growth, maturity, retirement). The overall 50-year AAI for IT assets is estimated to be $3.74 million. This forecast assumes only the capital purchase cost of the software, and not the implementation costs such as Region labour. It is expected that software upgrades may be pursued to extend the life of the application and reduce the forecasted value in this AM Plan. In this Plan, the AARI is based on replacement of software every 5 years, and 10 years for larger enterprise applications.

Figure 6-10 Future Investment Forecast – IT Assets

6.3.9 Facilities (Government and Police)

The 50-Year AARI for Government and Police facilities is estimated to be $3.72 million.


Figure 6-11 Future Investment Forecast – Facilities (Government and Police)

6.3.10 Police

For Police assets, consisting of fleet and IT, the AARI is $5.70 million. IT assets were forecasted based on dividing the replacement value by the service life of each asset. IT assets accounted for $4.06 million of the AARI.

Figure 6-12 Future Investment Forecast – Police

6.4 Funding Shortfalls

The following table summarizes the 50-Year AARI needed to sustain the Region’s existing assets, compared to the Region’s current 2016 to 2025 Capital Renewal Budget. A 10-Year AARI is also shown to provide a direct comparison to the same planning horizon as the 10-Year Capital Renewal Budget. The 10-Year Capital Renewal Budget is the Regions’ 10-year Capital Budget excluding g rowth or enhancement projects and the portion of other projects that are funded through Development Charges. Funding approved in 2015 and prior years for assets identified in the AARI as backlog are also included in the Capital Renewal Budget to accurately reflect planned spending by the Region for work-in-progress projects that are in the backlog. This allows for a direct comparison to the 10-Year and 50-Year AARI. The funding shortfall in Section 6.4 will be higher when taking into account the maintenance and renewal of growth assets once they are constructed.


The backlog that exists in year 2016 is averaged over the AARI funding forecast. Therefore, for those assets with substantial backlog, based on associated risk, it may be appropriate to increase spending substantially in the short term (e.g., over the next 10 years) and to reduce spending marginally over the medium to long t erms. This short term outlook is represented by the 10-year AARI. The AARI forecast is a network-level analysis that will be refined in future AM Plans as more experience and data on asset deterioration and condition is collected.

Table 6-2 AAI Forecast and Funding Shortfalls by Service Area Shortfall Shortfall

Asset Portfolio REGION 10 Yr Budget

AARI ($M)

10 Year AARI

AARI ($M)

50 Year AARI

($M): 10 Yr

Budget vs 10 Yr

($M): 10 Yr

Budget vs 50 Yr

AARI AARI Public Works $118.9 $194.9 $149.06 -$76.07 -$30.20

Transportation $58.2 $57.3 $40.62 $0.87 $17.59 Pavement $34.67 $43.74 $22.56 -$9.08 $12.11

Structures $11.20 $4.12 $8.53 $7.08 $2.68

Signals $6.27 $3.61 $3.61 $2.66 $2.66

Illumination $0.32 $0.21 $0.21 $0.10 $0.10

Patrol Yards $1.57 $0.24 $0.42 $1.33 $1.15

Storm Sewers $0.50 $0.79 $0.79 -$0.29 -$0.29

Fleet $3.34 $2.43 $2.31 $0.91 $1.03

Retaining Walls $0.00 $0.20 $0.20 -$0.20 -$0.20 Culverts (Cross and Driveway) $0.00 $1.35 $1.35 -$1.35 -$1.35

Guide Rails $0.35 $0.64 $0.64 -$0.29 -$0.29

Water & Wastewater $57.6 $134.8 $105.84 -$77.20 -$48.22 Water $28.0 $37.7 $31.66 -$9.77 -$3.70 Mains $2.04 $2.76 $2.41 -$0.72 -$0.37

Treatment Plants $22.83 $30.07 $23.96 -$7.24 -$1.13

Support Facilities & Other $3.09 $4.90 $5.29 -$1.81 -$2.20

Wastewater $29.7 $97.1 $74.19 -$67.43 -$44.52 Mains $3.47 $11.22 $7.55 -$7.75 -$4.07

Treatment Plants $17.40 $66.40 $50.48 -$49.00 -$33.08

Support Facilities & Other $8.80 $19.48 $16.16 -$10.69 -$7.37

Waste Management $3.0 $2.8 $2.59 $0.26 $0.43 Recycling Centre $0.75 $1.41 $1.41 -$0.66 -$0.66

Landfills and HHW $2.27 $1.36 $1.19 $0.92 $1.09


Asset Portfolio REGION 10 Yr Budget

AARI ($M)

10 Year AARI

AARI ($M)

50 Year AARI

Shortfall ($M): 10 Yr

Budget vs 10 Yr

AARI

Shortfall ($M): 10 Yr

Budget vs 50 Yr

AARI Health & Community $21.8 $18.3 $23.31 $3.58 -$1.47

Public Health $3.9 $2.5 $2.79 $1.45 $1.15 Public Health Service

Facilities $0.24 $0.17 $0.27 $0.07 -$0.03

Ambulance Services $3.70 $2.32 $2.52 $1.38 $1.19

Community Services $12.2 $12.5 $9.21 -$0.32 $2.99 Daycare $0.17 $0.06 $0.23 $0.11 -$0.06 General assistance facilities $0.21 $0.27 $0.45 -$0.06 -$0.25

Long Term Care $11.82 $12.19 $8.53 -$0.36 $3.29 Niagara Regional

Housing $5.70 $3.24 $11.31 $2.45 -$5.61

General Government $11.1 $12.0 $13.48 -$0.89 -$2.41 Information Technology $3.5 $3.7 $3.74 -$0.22 -$0.22

Hardware $2.74 $2.23 $2.23 $0.50 $0.50

Software $0.78 $1.50 $1.51 -$0.72 -$0.73

Facilities $1.7 $2.5 $4.04 -$0.82 -$2.34 Government $0.61 $0.95 $1.88 -$0.33 -$1.27

Police $1.08 $1.57 $2.16 -$0.49 -$1.07

Police $5.9 $5.7 $5.70 $0.15 $0.16 Fleet $1.74 $1.65 $1.65 $0.09 $0.09

IT $4.12 $4.06 $4.06 $0.06 $0.06 Total $151.8 $225.1 $185.9 $73.3 $34.1

Figure 6-13 focuses on the next ten year period. It shows the 10-year forecast capital renewal investment amounts shown as solid pink bar by year, and the average annual renewal investment over the 10 year period shown as a solid red line at $225.1 million per year.

In addition, the Region’s 10-year capital renewal budget (2016 to 2025) as well as the 2015 and prior funding that has already been approved for assets identified for renewal in 2016 is shown as a series of black outline bars. The Region’s current capital renewal program averages $151.8 million per year (excluding growth assets), leaving an average annual shortfall of $73.3 million per year. This average shortfall is the difference between the solid red line and the solid black line in Figure 6-13. The dashed black line shows the cumulative gap between the 10-year AARI (solid red line at $225.1M/yr) and each of the capital renewal budget amounts (black outline bars) over time.


Figure 6-13 Shortfall Analysis: Region Capital Renewal Program vs 10-Year AARI

Based on a comparison of the 10-year Capital Budget to the 10-year AARI forecast, overall, the Region has a shortfall of $73.3 million per year, mainly due to insufficient budgets for water and wastewater renewal. In particular, the shortfall for treatment plants is $56.24 million per year ($7.24 million for water, $49.0 million for wastewater plants). The current condition profile shows that the vertical water and wastewater assets are in poorer condition than the Region’s overall asset portfolio, indicating that insufficient historical spending has resulted in a backlog of work. Note that the shortfall is lower when considering the 50-Year AARI, which averages the backlog over the longer 50-year forecast period.

The Region, along with other Ontario municipalities that are responsible for the delivery of water services, has developed a financial plan in accordance with the Provincial reporting r equirements in Regulations O.Reg.453/07. This plan was developed in 2014 and summarizes the revenues and expenses associated with water and wastewater services, the various funding sources, and whether these funds are sufficient to support the required expenditures. It is recommended that the Region update this Financial Plan taking into account the shortfalls identified in this AM Plan and the growth identified in the forthcoming Water and Wastewater Master Servicing Plan.

The shortfall by asset area is summarized in Figure 6-14. The 10-year capital renewal budget expressed as an annual average (solid coloured bar) by asset area is compared to both the forecast 10-year AARI (solid black outline) and the forecast 50-year AARI (dashed black outline).


Figure 6-14 Shortfall Analysis: Region Capital Renewal Program vs AARI by Asset Area

Considering all other assets collectively, which are not funded through rates, there is sufficient funding based on the Capital budget and the 10-year AARI forecast, though there are some asset areas deficient in funding while others seem to have additional funding. For transportation assets, the above figure demonstrates that the Region is investing sufficiently in the next 10 years to maintain its assets and help reduce the current backlog of work.

For Niagara Regional Housing, the 10-year AARI is shaped by the condition assessments from over 4 years ago (2011 and 2012 ). The Region’s current plans for investment take into account more recent information on the status of housing, and therefore reflect higher spending than the 10-year AARI. As the facilities age, this expenditure will need to continue to increase in the long-term as indicated by the higher 50-year AARI..

For Long Term Care, the 10-year AARI matches closely to the Capital Program. Much of the expenditure is required in the short term for the three upgraded facilities planned for construction within the 10-year horizon.

For all other facilities (classified under Public Health, Social & Community Services, Transportation (yards), and General Government), the budget appears to be underfunded for Police and other Government facilities, and sufficient for all other facilities.

For both transportation and water / wastewater assets, and in updating the Region’s corporate financial strategy, the Region will have to balance the requirements for additional and upgraded assets, as outlined in the forthcoming master plans, against the needs to sustain the current asset portfolios as outlined in this AM Plan.


7. Monitoring & Improvement

7.1 Overview

The first several versions of an AM Plan will not meet all of the long term goals of a fully developed AM Plan due to gaps in data, information and business processes. It is intended that the continual improvement of asset management practices and associated data collection by the Region will result in regular updates to this document. As such, this AM Plan is a living document that will require ongoing refinement to reflect the improvement of asset management maturity within the Region over time.

The Region has recently undertaken a review of its AM practices and laid out a roadmap of AM improvement initiatives over the next five years. The findings and recommendations provided in this section of the AM Plan are specific to the production of this AM Plan and complement those included in the AM Gap Analysis and Road Map.

7.2 Recommended Improvements

Improvements noted for future revisions of the AM Plan include:

• Develop and Implement an AM Governance Model: As part of the AM Road Map, it is recommended that the Region develop a corporate AM governance model to establish consistency of AM processes and practices across the organization.

• Tangible Capital Asset (TCA) Policy: Generally, the TCA fixed asset registry is at a much higher level in the asset hierarchy than the level at which the assets are managed. This creates difficulties in reporting betterments to partial assets over time. The Region is currently revising a TCA policy that will formalize the process for creating, maintaining, and disposing of assets in the database. Careful consideration should be given to increasing and decreasing asset value for improvement/upgrade type entries, and policies for disposed assets and updating installation year data for existing assets.

• Asset Inventory: The Region is currently undergoing improvements to asset inventories such as storm sewers and street lights, for which ownership is being established between the Region and local area municipalities. Generally, all departments should maintain a central inventory rather than multiple sources with duplicated and sometimes conflicting information. For areas such as Waste Management in which a complete asset inventory is being developed, it is recommended that opportunities for refining the inventory be captured by incorporating such work through future planned condition assessments.

• Facilities, Long Term Care, and NRH Inventory: For buildings, it is recommended that an understanding of the asset portfolio is improved through more detailed building condition assessments that assign a condition score. Standardizing the hierarchy used between facilities, long term care, and NRH will facilitate knowledge sharing between the departments in terms of developing optimal lifecycle strategies


for various facility elements. Valuation and condition were assigned to the same level in the hierarchy by aggregating condition data from building assessments to a higher level, and disaggregating the overall facility value to the same level. It is recommended that replacement values are refined by capturing asset value at the same level in the hierarchy at which the building condition assessments are performed.

• Water/Wastewater Vertical Infrastructure Inventory: Similar to facilities, a cost breakdown was developed to proportion overall treatment plant costs to the same level at which condition assessment information is documented. It is recommended that these replacement values be refined over time to further improve the overall condition estimate in Section 3.1.2 and future forecast in S ection 6.3.

• Condition: The Region maintains condition information on various assets through condition assessment studies, consultant reports, and internal assessments and databases. An accurate condition assessment date should be maintained for these assessments, such that the condition information can be used accurately in subsequent analysis. For example, driveway/cross culverts and guide rail GIS data includes condition assessment information, but without a clear assessment date, it is difficult to accurately develop a current condition estimate.

• Refinements to the estimated service life and treatment strategies: As the Region establishes the costs and benefits of preventive and maintenance treatments, asset service life values should be reviewed and updated regularly to reflect observed deterioration rates and incorporate the benefits of maintenance and renewal strategies. In future AM Plan updates, it is also recommended t hat the Region identify different lifecycle strategies at more detailed levels in the asset hierarchy as appropriate (examples: local, collector, arterial roads; facility type). The future forecasts will improve in accuracy through these refined strategies.

• Planned Growth: As part of Niagara 2041, the Region is currently developing Master Plans for transportation and water/wastewater assets. These growth assets are discussed in this AM Plan but are not included in the future investment needs analysis. It is recommended that growth and upgrade assets be included in future AM Plan updates so that the future investment needs forecast includes these assets. It is also very important that the Region understand the full lifecycle cost of growth and upgrade assets as part of the master planning decision process (i.e., initial installation or construction costs, plus future liabilities for maintenance, operations and renewal costs).

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