Service Area Asset Management Plan - Town of Whitby · approximately $2 billion, with Fleet...

Town of Whitby Service Area Asset Management Plan

Fleet DECEMBER 2017

FINANCIAL CAPACITY GRADE

C

ASSET HEALTH GRADE

B

KEY PERFORMANCE INDICATOR

=

Town of Whitby Fleet Service Area Asset Management Plan

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Contents Executive Summary 6

1. Introduction 8 1.1 What is Asset Management? 10 1.2 Goals of the Municipality 10 1.3 Asset Management Vision 11

1.3.1 Asset Management Objectives 11 1.4 Purpose of the SAAMP 11 1.5 Contents of the SAAMP 12 1.6 Growth and Demand 13

2. State of Local Infrastructure 15 2.1 Asset Hierarchy 16 2.2 Asset Inventory 19 2.3 Replacement Cost Valuation 21 2.4 Asset Condition and Remaining Useful Life 23

2.4.1 Asset Condition Distribution 23 2.4.2 Infrastructure Report Card 29

2.5 Asset Age 31 2.5.1 Installation Profile: Infrastructure Investment in Whitby 33

2.6 Useful Life Consumption 43

3. Levels of Service 49 3.1 Overview of Performance Management 49 3.2 Risk Management & Prioritization 50

3.2.1 Project Prioritization 50 3.3 Key Performance Indicators and Targets 65 3.4 Future Performance 66 3.5 Monitoring, Updating and Actions 66 3.6 Non-Infrastructure Solutions and Requirements 66

4. Asset Maintenance & Renewal Strategies 68 4.1 Condition Assessment Programs 73 4.2 Lifecycle Framework 73 4.3 Monitoring, Updating and Action 74

5. Financial Strategy 75 5.1 General Overview of Financial Plan Requirements 75


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5.2 Current Financial Profile 78 5.3 Forecasting Replacement Needs 80 5.4 Financial Sustainability 90

6. Recommendations 92

7. Appendix: Condition Rating Scale 93

List of Tables Table 1-1 Contents of the SAAMP 13 Table 2-1 Asset Inventory 19 Table 2-2 Estimated 2017 Asset Valuation by Component 22 Table 2-3 Infrastructure Report Card – Asset Health Grading Scale 29 Table 2-4 Infrastructure Report Card - Asset Health 30 Table 2-5 Asset Useful Life in Years 31 Table 3-1 Consequence of Failure 52 Table 3-2 Probability of Failure 53 Table 3-3 Key Performance Indicators (KPIs) 65 Table 4-1 Lifecycle Activities - Fleet: Lawn Care and Forestry 69 Table 4-2 Lifecycle Activities - Fleet: Shop Equipment 69 Table 4-3 Lifecycle Activities - Fleet: Snow Equipment 70 Table 4-4 Lifecycle Activities - Fleet: Refuse Trucks 70 Table 4-5 Lifecycle Activities - Fleet: Trailers 70 Table 4-6 Lifecycle Activities - Fleet: Construction 71 Table 4-7 Lifecycle Activities - Fleet: Arena Equipment 72 Table 4-8 Lifecycle Activities - Fleet: Fire Trucks 72 Table 4-9 Lifecycle Activities - Fleet: Passenger (Pickups, Cars, SUV, Van) 72 Table 5-1 Total Capital Requirements by Asset Class 78 Table 5-2 Average Annual Capital Requirements by Asset Class 79 Table 5-3 Financial Capacity Grading Scale 91

List of Figures Figure 1-1 Distribution of Net Stock of Core Public Infrastructure 8 Figure 1-2 Asset Portfolio by Service Area – Based on 2017 Replacement Value 9 Figure 1-3 Whitby's Population Trend 14 Figure 2-1 Asset Hierarchy and Breakdown 16 Figure 2-2 Fleet Asset Hierarchy (Continued) 17 Figure 2-3 Fleet Asset Hierarchy (Continued) 18 Figure 2-4 Estimate 2016 Asset Valuation by Level 3 21 Figure 2-5 Fleet Replacement Values Per Household - 2017 21 Figure 2-6 Condition Distribution – All Fleet Assets 24


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Figure 2-7 Asset Condition – Arena Equipment 24 Figure 2-8 Asset Condition – Construction Equipment 25 Figure 2-9 Asset Condition – Fire Trucks 25 Figure 2-10 Asset Condition – Garage & Shop Equipment 26 Figure 2-11 Asset Condition – Lawn Care & Forestry 26 Figure 2-12 Asset Condition – Passenger Vehicles 27 Figure 2-13 Asset Condition - Refuse Trucks 27 Figure 2-14 Asset Condition - Snow Equipment 28 Figure 2-15 Asset Condition - Trailers 28 Figure 2-16 Aggregate Installation Profile 33 Figure 2-17 Asset Installation Profile – Arena Equipment 34 Figure 2-18 Asset Installation Profile – Construction Equipment 35 Figure 2-19 Asset Installation Profile – Fire Trucks 36 Figure 2-20 Asset Installation Profile – Garage & Shop Equipment 37 Figure 2-21 Asset Installation Profile – Lawn Care & Forestry 38 Figure 2-22 Asset Installation Profile – Passenger Vehicles 39 Figure 2-23 Asset Installation Profile - Refuse Trucks 40 Figure 2-24 Asset Installation Profile - Snow Equipment 41 Figure 2-25 Asset Installation Profile - Trailers 42 Figure 2-26 Aggregate Useful Life Consumption - All Fleet Assets 43 Figure 2-27 Useful Life Consumption – Arena Equipment 44 Figure 2-28 Useful Life Consumption – Construction Equipment 44 Figure 2-29 Useful Life Consumption – Fire Trucks 45 Figure 2-30 Useful Life Consumption – Garage & Shop Equipment 45 Figure 2-31 Useful Life Consumption – Lawn Care & Forestry 46 Figure 2-32 Useful Life Consumption – Passenger Vehicles 46 Figure 2-33 Useful Life Consumption - Refuse Trucks 47 Figure 2-34 Useful Life Consumption - Snow Equipment 47 Figure 2-35 Useful Life Consumption - Trailers 48 Figure 3-1 Risk Factors and Consequence of Failure 51 Figure 3-2 Risk Prioritization Matrix 54 Figure 3-3 Aggregate Risk Matrix – All Fleet Assets 55 Figure 3-4 Risk Matrix – Arena Equipment 56 Figure 3-5 Risk Matrix – Construction Equipment 57 Figure 3-6 Risk Matrix – Fire Trucks 58 Figure 3-7 Risk Matrix – Garage & Shop Equipment 59 Figure 3-8 Risk Matrix – Lawn Care & Forestry 60 Figure 3-9 Risk Matrix – Passenger Vehicles 61 Figure 3-10 Risk Matrix – Refuse Trucks 62 Figure 3-11 Risk Matrix – Snow Equipment 63 Figure 3-12 Risk Matrix – Trailers 64


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Figure 5-1 Cost Elements 76 Figure 5-2 Forecasting Aggregate Replacement Needs 80 Figure 5-3 Forecasting Replacement Needs – Arena Equipment 81 Figure 5-4 Forecasting Replacement Needs – Construction Equipment 82 Figure 5-5 Forecasting Replacement Needs – Fire Trucks 83 Figure 5-6 Forecasting Replacement Needs – Garage & Shop Equipment 84 Figure 5-7 Forecasting Replacement Needs - Lawn Care Forestry 85 Figure 5-8 Forecasting Replacement Needs – Passenger Vehicles 86 Figure 5-9 Forecasting Replacement Needs – Refuse Trucks 87 Figure 5-10 Forecasting Replacement Needs – Snow Equipment 88 Figure 5-11 Forecasting Replacement Needs – Trailers 89


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Executive Summary Infrastructure is directly linked to the economic, social and environmental advancement of a community. Municipalities own and manage nearly 60% of the public infrastructure stock in Canada. The Town of Whitby’s infrastructure portfolio comprises seven distinct Service Areas: Road Right-of-Way, Facilities, Fire, Municipal Information Systems (MIS) Equipment, Parks, Library Resource and Fleet. Together, these assets have a total valuation of approximately $2 billion, with Fleet comprising $34.7 million of this portfolio. Strategic asset management is critical in extracting the highest total value from public assets at the lowest lifecycle cost. In this regard, the Town of Whitby has developed a Service Area Asset Management Plan (SAAMP) for each of its seven asset categories. This SAAMP details the state of infrastructure of the Town’s Fleet Service Area and provides asset management and financial strategies designed to facilitate the Town’s pursuit of developing an advanced asset management program and mitigate long-term funding gaps. The Town has provided observed data for Fleet assets. Based on replacement cost, nearly 60% of the municipality’s fleet assets are in good to very good condition, based on observed data and replacement cost. However, approximately 13%, with a valuation of $4 million, is in poor condition. As such, an Asset Health Grade of ‘B’ has been assigned to the Fleet assets. The Asset Health Grade is a snapshot in time (December 31, 2016) – and does not look at future asset assumptions or future funding needs to continue to adequately maintain our assets. It is also important to note that the Asset Health Grade is an average of all the Service Area’s assets, and some individual assets have a condition higher or lower than what the average grade indicates. While current asset health is an imperative indicator of the Town’s asset management maturity, equally important is the municipality’s ability to fund the long-term replacement needs of each of its asset classes. The average annual investment requirement for Whitby’s Fleet assets is $4,227,633. Annual revenue currently allocated to these assets for capital purposes is $2,065,060. As such the Town is not sustainably funding its annual requirements. As a result, the municipality received a ‘C’ for its financial sustainability grade. Whitby currently has in place a robust condition assessment program and detailed condition rating scales for its Fleet classes. This is a vital component of a sustainable asset management program, and we recommend its continuation with a portion of capital funding dedicated to the initiative. Establishment of a risk prioritization framework will further augment the Town’s ability to prioritize future projects related to Fleet, and more optimally allocate available funding. The Town should review on an annual basis its levels of service (LOS) and condition-related key performance indicators (KPIs). The LOS and KPIs should reflect the short- and long-term demand that will be placed on the


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infrastructure. This is the Town’s second SAAMP for its Fleet assets. The Town should continue to update this report on an annual basis. This SAAMP is a living document and will continually be updated and built upon. To ensure that future versions are meaningful documents that support the Town’s ability to continue to build a strong asset management program, the following items are recommended:

1. The municipality continue its robust Fleet condition assessment program and that a portion of capital funding is dedicated to this. Research should be conducted to investigate available preventative maintenance techniques with pilot projects to test their effectiveness.

2. The Town should update its SAAMP on an annual basis. 3. The Town should undertake a cost-benefit analysis for the selling-off of fleet

assets to maximize the resale value while minimizing overall maintenance costs. 4. The Town should continue to investigate alternative vehicles to service new

infrastructure needs and perform jobs which current vehicles cannot efficiently service.

5. The Town should include in its asset inventory the tasks that each asset performs to account for any cost savings made available by retiring and selling certain fleet assets should their use prove unnecessary in the future.

6. The Town should investigate and develop other rehabilitation strategies.


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1. Introduction Ontario’s municipalities own more of the province’s infrastructure assets than both the provincial and federal government combined. Across Canada, the municipal share of public infrastructure increased from 22% in 1955 to nearly 60% in 2013. Figure 1-1 Distribution of Net Stock of Core Public Infrastructure

The asset portfolios managed by Ontario’s municipalities are also highly diverse. The Town of Whitby owns approximately $2 billion of these public assets in seven distinct Service Areas:

1. Road Right-of-Way 2. Facilities 3. Fire 4. Municipal Information Systems (MIS) Equipment 5. Parks 6. Library Resources 7. Fleet

Figure 1-2 illustrates the breakdown of the Town’s asset portfolio by Service Area.

Municipal, $216.9B

57%

Provincial, $158.4B

41%

Federal, $6.7B

2%

Total: $382B Year: 2013


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Figure 1-2 Asset Portfolio by Service Area – Based on 2017 Replacement Value

Road Right of Way $1,471.5 M

75.0%

Facilities $366.2 M

18.7%

Parks $72.3 M

3.7% Library Resources $10.7 M

0.5% Fire $4.1 M 0.2%

MIS Equipment $2.9 M 0.1%

Fire Trucks $11.3 M

0.6%

Construction Equipment

$7.7 M 0.4%

Refuse Trucks $6.3 M 0.3%

Passenger Vehicles $2.8 M 0.1%

Lawn Care & Forestry $2.7 M 0.1%

Snow Equipment $2.2 M 0.1%

Arena Equipment $0.9 M 0.0%

Trailers $0.5 M 0.0%

Garage & Shop Equipment

$0.3 M 0.0%

Fleet $34.7 M

1%


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Whitby relies on these assets to provide residents, businesses, employees and visitors with safe access to important services, such as transportation, recreation, culture, economic development and much more. As such, it is critical that the Town manage these assets by making the right decisions, at the right time, for the right reasons, and for the right costs. This Municipal Asset Management Plan (MAMP) will assist the municipality in this pursuit of judicious asset management for its seven service areas.

1.1 What is Asset Management? Asset Management (AM) can be best defined as an integrated business approach within an organization that sustainably manages the lifecycle costs of owning, operating, and maintaining assets, at an acceptable level of risk, while continuously delivering expected levels of service for present and future customers. AM includes the planning, design, construction, operation and maintenance of infrastructure used to provide services. Infrastructure needs can be prioritized over time by utilizing AM processes, while also ensuring timely investments to minimize repair and rehabilitation costs and maintain municipal assets. Asset Management establishes an evidence-based framework for sustainable financial management of municipal assets and empowers municipalities to plan for future needs with respect to growth. Key questions municipalities must ask themselves today as they develop their AMPs and programs are the following:

• What is the asset worth? • What is the asset’s condition and expected remaining service life? • What is the level of service expectation, and what needs to be done? • When do you need to do the preventative maintenance, rehabilitation, or

replacement? • How much will the remedial works cost and what is the acceptable level of

risk(s)? • What are the overall life cycle needs and costs? • What are the long-term sustainable financing needs?

1.2 Goals of the Municipality The 2014-18 Goals of Whitby Council lists specific objectives that contribute to the vision of an inclusive, thriving and sustainable community. Asset Management is related to four of the goals:

3. To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability to a healthy, balanced community.

4. To ensure Whitby is clearly seen by all stakeholders to be business- and investment-friendly and supportive; and to strive to continuously improve the effectiveness and efficiency of service delivery.


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7. To remain the community of choice for families and become the community of choice for seniors and job creators; and to focus new growth around the principles of strong, walkable and complete neighbourhoods that offer mobility choices.

Achievement of these objectives depends on a wide range of assets that support the Town’s services, including transportation, parking, solid waste collections, fire protection, parks, recreation and culture. Delivery of these services depends on the availability of suitable and reliable infrastructure assets. Maintaining, renewing, expanding and disposing of these assets can be costly, so it is essential to understand what level of service is required by the community, and how different asset maintenance and capital improvement strategies will impact the service delivered. Through increased understanding of how infrastructure assets and management of those assets affects its services, the Town will be able to more efficiently deliver services and achieve its vision of being a ‘Community of Choice’.

1.3 Asset Management Vision The Town of Whitby’s Asset Management vision is: Providing the framework for responsibly managing all Town owned infrastructure.

1.3.1 Asset Management Objectives The Town works as a collaborative team to comprehensively and consistently undertake the following objectives for all Town owned assets. These asset management objectives help to inform the implementation of the Town’s asset management vision:

• Inventory: Capture all asset types, inventories and historical data. • Current Valuation: Calculate current condition ratings and replacement values. • Life Cycle Analysis: Identify Maintenance and Renewal Strategies & Life Cycle

Costs. • Service Level Targets: Define measurable Levels of Service Targets • Risk & Prioritization: Integrates all asset categories through risk and

prioritization strategies. • Sustainable Financing: Identify sustainable Financing Strategies for all asset

categories. • Continuous Processes: Provide continuous processes to ensure asset

information is kept current and accurate. • Decision Making & Transparency: Integrate asset management information

into all corporate purchases, acquisitions and assumptions. • Monitoring & Reporting: At defined intervals, assess the assets and report on

progress and performance.

1.4 Purpose of the SAAMP This SAAMP is one component of the Town of Whitby’s overarching Municipal Asset Management Plan (MAMP) and was developed to support the Town’s strategic vision for its asset management practice and programs. It provides key asset attribute data,


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including current composition, inventory, useful life etc., summarizes the physical health of the capital assets in its Fleet Service Area, assess the Town’s current capital spending framework, and enumerates financial strategies to achieve infrastructure sustainability in the long-term and mitigate any funding gaps.

1.5 Contents of the SAAMP This Service Area Asset Management Plan focuses on Fleet, one of the seven Service Areas managed by the Town. For discussion, and analysis purposes, the Fleet Service Area has been broken down into the following Primary Asset Categories:

1. Passenger Vehicles 2. Construction Equipment 3. Trailers 4. Fire Trucks 5. Lawn Care & Forestry 6. Refuse Trucks 7. Arena Equipment 8. Snow Equipment 9. Garage & Shop Equipment

This SAAMP is developed in accordance with the Province of Ontario’s Building Together: Guide for Municipal Asset Management Plans and includes the following core components:


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Table 1-1 Contents of the SAAMP

# Section Title Description

1 Introduction Explains how the goals of the municipality are dependent on infrastructure, and clarifies the relationship of the MAMP to municipal planning and financial documents.

2 State of Existing Infrastructure

Summarizes the asset hierarchy, inventory, valuation, age distribution and condition. Also discusses how and when information regarding the characteristics, value, and condition of assets will be updated.

3 Levels of Service

Defines levels of service through performance indicators and targets, and outlines current performance. Describes external trends or issues that may affect expected levels of service.

4

Asset Maintenance and Renewal Strategies

The asset maintenance and renewal strategies are the set of planned actions that will enable the assets to provide the desired levels of service in a sustainable way, while managing risk, and at the lowest life cycle cost.

5 Financial Plan This section integrates asset management planning with financial planning and budgeting.

6 Recommendations

Provides a summary of the state of the infrastructure, current level of service, and recommended asset management and funding strategies. Also summarizes recommendations for monitoring achievement of the AM objectives and for continuous improvement of the MAMP in future updates.

Appendix A Provides a summary of analytical assumptions used in the AM Plan, including benchmark costs, asset service lives, capital growth, etc.

1.6 Growth and Demand Growth is a critical infrastructure demand driver for most infrastructure services. As such, the municipality must not only account for the lifecycle cost for its existing asset portfolio, but those of any anticipated and forecasted capital projects associated specifically with growth. Whitby has experienced rapid population growth since 1980, and its infrastructure investments reflect this trend. The chart below shows how the population has evolved over time and the estimated growth increase for the next 15 years. While Whitby’s population growth rate has decreased since the mid-2000s, the forecasts used by the municipality anticipate a second wave of rapid population increase, with an expected population of 193,000 by 2031, an increase of approximately 50% from its 2013 population of 130,145.


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Figure 1-3 Whitby's Population Trend

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0

0.5

1

1.5

2

2.5

3

1950

-195

419

55-1

959

1960

-196

419

65-1

969

1970

-197

419

75-1

979

1980

-198

419

85-1

989

1990

-199

419

95-1

999

2000

-200

420

05-2

009

2010

-201

420

15-2

016

2017

-201

920

20-2

024

2025

-202

920

30-2

031

Tow

n of

Whi

tby

Popu

latio

n

Rep

lace

men

t Val

ue ($

Bill

ions

)

Time Period

Facilities

Fire

Fleet

Library Resources

MIS Equipment

Parks

Road ROW

Projected Infrastructurevalue

1951 7,267

1981 36,698

2006 111,184

Dec. 31st, 2016 134,875

2031 192,860


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2. State of Local Infrastructure In this section, we summarize key elements of the Town’s Fleet services portfolio. This includes a detailed outline of the Town’s asset inventory and the condition of assets. When observed data was not available, we relied on the age of the assets to approximate their conditions.


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2.1 Asset Hierarchy The asset hierarchy illustrates the relationship of individual assets and their components to a wider, more expansive network and system, with the ‘Town of Whitby’ as Level 1 in the hierarchy. Each level provides greater detail. Figure 2-1 Asset Hierarchy and Breakdown

Fleet Cars

Pick-up Trucks

SUVs

Vans

Dump Trucks

Water Tanker

Vacuum Truck

Level 2Service

Level 3Asset Class

Level 4Asset Type

Passenger Vehicles


Loader

Gradeall

Mobile Compressor

Backhoe

Motor Grader

Cement Mixer

Grader

Street Sweeper

Street Flusher

Asphalt Roller

Pavement Grinder

Pavement Marker

Hot Patcher

Tanker Trucksbext tg


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Figure 2-2 Fleet Asset Hierarchy (Continued)

Trailers Boat Trailers

Ice Painting Trailer

Utility Trailers

Paint Trailer

Fire Trucks Aerial Trucks

Pumper Trucks

Rescue Trucks

Squirt Trucks

Tanker Trucks

Water Tanker Trailers

Lawn Care and Forestry Litter Truck

Chipper Truck

Tractors

Turf Care Machines

Mowers

Refuse Trucks Side-loader

Rear-loader

Fleet Continued

Level 2Service

Level 3Asset Class

Level 4Asset Type

bext tg


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Figure 2-3 Fleet Asset Hierarchy (Continued)

Snow Equipment Snow Plow Truck

Sidewalk Machines

Garage & Shop Equipment Hoist

Overhead Crane

Blade Sharpener

A/C Machine

Sweeper/Scrubber

Saws

Fuel Pump

Drill Press

Compressor

Plows

Sanders

Snow Blowers

Snow Throwers

Fleet Continued

Level 2Service

Level 3Asset Class

Level 4Asset Type

Arena Equipment Zamboni

Ice Edger


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2.2 Asset Inventory Whitby’s Fleet state of the infrastructure analysis includes the following Level 3 assets:

1. Passenger Vehicles 2. Construction Equipment 3. Trailers 4. Fire Trucks 5. Lawn Care & Forestry 6. Refuse Trucks 7. Arena Equipment 8. Snow Equipment 9. Garage & Shop Equipment

Table 2-1 details the Town’s inventory for its Fleet Service Area at the component level. Table 2-1 Asset Inventory Service Area Asset Class Asset Type 2010

Quantity 2015 Quantity

Current Quantity

Fleet Passenger Vehicles Cars 5 7 7 Fleet

Passenger Vehicles Pick-up Trucks 28 41 41

Fleet Passenger Vehicles SUVs 2 7 7 Fleet Passenger Vehicles Vans 10 11 11 Fleet Construction Equipment Dump Trucks 29 35 35 Fleet Construction Equipment Loader 2 2 2 Fleet Construction Equipment Gradeall 1 1 1 Fleet Construction Equipment Backhoe 1 1 1 Fleet Construction Equipment Mobile

Compressor 1 1 1

Fleet Construction Equipment Cement Mixer 1 1 1

Fleet Construction Equipment Grader 1 1 1 Fleet Construction Equipment Street Sweeper 2 2 2 Fleet Construction Equipment Street Flusher 1 1 1 Fleet Construction Equipment Vacuum Truck 1 2 2 Fleet Construction Equipment Pavement Grinder 3 3 3 Fleet Construction Equipment Hot Patcher 1 1 1 Fleet Construction Equipment Utility 4 4 4 Fleet Trailers Boat Trailers 2 2 2 Fleet Trailers Paint Trailer 2 2 2 Fleet Trailers Ice Painting

Trailer 2 1 1 Fleet Trailers Utility Trailers 20 21 21 Fleet Trailers

Water Tanker Trailers 2 3 3


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Service Area Asset Class Asset Type 2010

Quantity 2015 Quantity

Current Quantity

Fleet Fire Trucks Aerial Trucks 2 2 2 Fleet Fire Trucks Pumper Trucks 5 9 9 Fleet Fire Trucks Rescue Trucks 1 1 1 Fleet Fire Trucks Tanker Trucks 1 1 1 Fleet Lawn Care & Forestry Litter Truck 2 2 2 Fleet Lawn Care & Forestry Chipper Truck 3 3 3 Fleet

Lawn Care & Forestry Tractors 4 4 4

Fleet Lawn Care & Forestry Mowers 18 24 24

Fleet Lawn Care & Forestry Turf Care Machines 13 24 24

Fleet Refuse Trucks Side-loader 17 17 17 Fleet Refuse Trucks Rear-loader 3 3 3 Fleet Refuse Trucks Hooklift 1 1 1 Fleet Arena Equipment Zamboni 7 9 9 Fleet Arena Equipment Ice Edger 7 8 8 Fleet Snow Equipment

Sidewalk Machines 12 16 16

Fleet Snow Equipment Sanders 1 2 2 Fleet Snow Equipment Snow Blowers 15 15 15 Fleet Garage & Shop Equipment Hoist 13 13 13 Fleet Garage & Shop Equipment A/C Machine 1 1 1 Fleet Garage & Shop Equipment Overhead Crane 1 1 1 Fleet Garage & Shop Equipment Blade Sharpener 1 1 1

Fleet Garage & Shop Equipment Fuel Pump 3 3 3

Fleet Garage & Shop Equipment Drill Press 2 2 2 Fleet Garage & Shop Equipment Compressor 1 1 1 Fleet Garage & Shop Equipment Sweeper/Scrubber 1 1 1 Fleet Garage & Shop Equipment Saws 2 1 1


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2.3 Replacement Cost Valuation Replacement values determined using unit costs for individual asset components will yield more reliable estimates of current market prices. However, in the absence of this detail, the historical costs were inflated to 2017. The Town has provided user-defined replacement costs for Fire Trucks, Refuse Trucks, Arena Equipment. The estimated replacement value totalled approximately $34.5 million for Whitby’s Fleet portfolio. The total cost per household is approximately $758 using 45,772 households. In this section, we detail the replacement value of all Fleet assets by asset class. Figure 2-4 Estimate 2016 Asset Valuation by Level 3

Figure 2-5 Fleet Replacement Values Per Household - 2017

Fire Trucks $11,300,000

32.8%

Construction Equipment $7,730,901

22.4%

Refuse Trucks $6,295,000

18.3%

Passenger Vehicles

$2,768,500 8.0%

Lawn Care & Forestry

$2,431,694 7.1%

Snow Equipment $2,315,148

6.7% Arena Equipment

$936,000 2.7% Trailers

$446,575 1.3%

Garage & Shop Equipment $258,149

0.7% Total: $34,481,967

$758 $247

$169 $138

$60 $59

$49 $20

$10 $6

$- $100 $200 $300 $400 $500 $600 $700 $800

Fleet TotalFire Trucks

Construction EquipmentRefuse Trucks

Passenger VehiclesLawn Care & Forestry

Snow EquipmentArena Equipment

TrailersGarage & Shop Equipment


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Table 2-2 Estimated 2017 Asset Valuation by Component Service Area Asset Class Asset Type 2016 Overall

Replacement Cost Fleet Arena Equipment Ice Edger $36,000 Fleet Arena Equipment Ice resurfacer $900,000 Fleet Construction Equipment Backhoe $135,000 Fleet Construction Equipment Cement Mixer $10,000 Fleet Construction Equipment Dump Trucks $4,863,174 Fleet Construction Equipment Gradall $350,000 Fleet Construction Equipment Grader $200,000 Fleet Construction Equipment Hot Patcher $155,000 Fleet Construction Equipment Loader $506,000 Fleet Construction Equipment Mobile Compressor $40,000 Fleet Construction Equipment Pavement Grinder $9,315 Fleet Construction Equipment Street Flusher $190,337 Fleet Construction Equipment Street Sweeper $546,000 Fleet Construction Equipment Utility $96,075 Fleet Construction Equipment Vacuum Truck $630,000 Fleet Fire Trucks Aerial $3,000,000 Fleet Fire Trucks Pumper $7,650,000 Fleet Fire Trucks Rescue $100,000 Fleet Fire Trucks Tanker Trucks $550,000 Fleet Garage & Shop Equipment A/C machine $3,000 Fleet Garage & Shop Equipment Blade Machine $3,000 Fleet Garage & Shop Equipment Compressor $40,000 Fleet Garage & Shop Equipment Drill Press $5,715 Fleet Garage & Shop Equipment Fuel Pump $19,500 Fleet Garage & Shop Equipment Hoist $99,136 Fleet Garage & Shop Equipment Overhead Crane $17,000 Fleet Garage & Shop Equipment Saw $798 Fleet Garage & Shop Equipment Sweeper Scrubber $65,000 Fleet Lawn Care & Forestry Chipper Truck $481,000 Fleet Lawn Care & Forestry Front Mount Mowers $463,500 Fleet Lawn Care & Forestry Litter Truck $320,000 Fleet Lawn Care & Forestry Push Mower $6,000 Fleet Lawn Care & Forestry Rotary Mower $482,000 Fleet Lawn Care & Forestry Tractor $320,000 Fleet Lawn Care & Forestry Turf Care Machines $614,854 Fleet Lawn Care & Forestry Turf Sweeper $9,500 Fleet

Lawn Care & Forestry Turf Topper $20,000 Fleet Passenger Vehicles Cars $214,000 Fleet Passenger Vehicles Pick-up Trucks $1,647,000 Fleet Passenger Vehicles SUVs $271,000 Fleet Passenger Vehicles Vans $636,500


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Service Area Asset Class Asset Type 2016 Overall

Replacement Cost Fleet Refuse Trucks Hooklift $135,000 Fleet Refuse Trucks Rear Loader $720,000 Fleet Refuse Trucks Side Loader $5,440,000 Fleet Snow Equipment Sanders $24,000 Fleet Snow Equipment Sidewalk Machines $1,960,400 Fleet Snow Equipment Snow Blowers $223,496 Fleet Trailers Boat Trailer $90,000 Fleet Trailers Ice Painting Trailer $10,000 Fleet Trailers Paint Trailer $30,000 Fleet Trailers Utility Trailer $346,000 Fleet Trailers Water Trailer $60,000

Total $34,744,300

2.4 Asset Condition and Remaining Useful Life Understanding the current condition of the assets and their remaining useful life can provide the Town with a more complete picture of its infrastructure portfolio and upcoming short, medium and long-term needs. The Town has developed condition scales for its Fleet assets. These are provided in the Appendix.

2.4.1 Asset Condition Distribution This section provides detail on the physical condition of the Town of Whitby’s Fleet assets. The Town has provided observed data for Fleet assets. Based on replacement cost, nearly 60% of the municipality’s fleet assets are in good to Very Good condition, based on observed data and replacement cost. However, approximately 13%, with a valuation of $4 million, is in poor condition. The overall conditions of Fleet assets are shown in Figure 2-6 Condition Distribution – All Fleet Assets.


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Figure 2-6 Condition Distribution – All Fleet Assets

The following graphs illustrate the condition distribution of each of the Town’s Fleet assets. At 48%, Garage and Shop Equipment had the largest portion of its assets in poor condition with a valuation of $124,500, while Construction Equipment had 28% in poor condition with a valuation of $2.2 million. Figure 2-7 Asset Condition – Arena Equipment

Excellent $9,847,900

29%

Good $9,961,700

29%

Fair $10,048,454

29% Poor

$4,623,913 13%

Total: $34,481,967

Good $509,000

54%

Fair $27,000

3%

Poor $400,000

43%

Total: $936,000


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Figure 2-8 Asset Condition – Construction Equipment

Figure 2-9 Asset Condition – Fire Trucks


28%

Good $2,038,442

26%

Fair $1,363,514

18%

Poor $2,158,945

28%

Total: $7,730,901


36%

Good $1,700,000

15%

Fair $4,700,000

42% Poor $850,000

7%

Total: $11,300,000


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Figure 2-10 Asset Condition – Garage & Shop Equipment

Figure 2-11 Asset Condition – Lawn Care & Forestry

Excellent $8,000

3% Good

$91,443 36%

Fair $34,206

13%

Poor $124,500

48%

Total: $258,149

Excellent $494,400

20%

Good $1,000,441

41%

Fair $559,368

23% Poor $377,484

16%

Total: $2,431,694


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Figure 2-12 Asset Condition – Passenger Vehicles

Figure 2-13 Asset Condition - Refuse Trucks

Excellent $553,500

20%

Good $1,302,500

47%

Fair $460,000

17% Poor $452,500

16%

Total: $2,768,500


24%

Good $2,160,000

34%

Fair $2,615,000

42%

Total: $6,295,000


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Figure 2-14 Asset Condition - Snow Equipment

Figure 2-15 Asset Condition - Trailers


44%

Good $899,137

39%

Fair $189,010

8%

Poor $200,000

9%

Total: $2,315,148

Excellent $25,000

6%

Good $260,735

58%

Fair $100,356

22% Poor $60,484

14%

Total: $446,575


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2.4.2 Infrastructure Report Card The asset management plan is a complex document, but one with direct implications on the public, a group with varying degrees of technical knowledge. To facilitate communications, we have developed an Infrastructure Report Card that summarizes our findings in accessible language that municipalities can use for internal and external distribution. The report card is developed using two key, equally weighted factors:

1. Asset Health: As shown in Table 2-3, using either field inspection data as available or age-based data, the asset health provide a grades for each infrastructure class based on the portion of assets in poor to Very Good condition (0-100%). We use replacement cost to determine the weight of each condition group within the asset class.

2. Financial Sustainability: As shown in Table 5-2, a municipality’s Financial Sustainability is determined by how well it is meeting the average annual investment requirements (0-100%) for each infrastructure class.

Table 2-3 Infrastructure Report Card – Asset Health Grading Scale

Letter Grade Numerical Scale Rating Description

A 4.50-5.0 Very Good Asset is new or recently rehabilitated

B 3.50-4.49 Good Asset is no longer new, but is fulfilling its function. Preventative maintenance is beneficial at this stage.

C 2.50-3.49 Fair

Deterioration is evident but asset continues to fulfill its function. Preventative maintenance is beneficial at this stage.

D 1.50-2.49 Poor Significant deterioration is evident and service is at risk.

F 1.0-1.49 Very Poor Asset is beyond expected life and has deteriorated to the point that it may no longer be fit to fulfill its function.


30

Table 2-4 Infrastructure Report Card - Asset Health

Asset Class (Level 3) Asset Health Grade

Arena Equipment B

Garage & Shop Equipment C

Trailers B

Lawn Care & Forestry B

Passenger Vehicles B

Snow Equipment B

Refuse Trucks B

Construction Equipment B

Fire Trucks B

Overall Service Area Grade B

Nearly 60% of the municipality’s fleet assets are in good to Very Good condition, based on observed data and replacement cost. However, approximately 13% are in poor condition with a valuation of $4.6 million. At 48%, Garage and Shop Equipment had the largest portion of its assets in poor condition, while Construction Equipment had 28% in poor condition with a valuation of $2.2 million. The asset health grade for each asset class was derived using weighted average of its replacement cost according to the following equation:

Asset Class Health Grade = ((5 * asset value in Very Good condition) + (4 * asset value in good condition) + (3 * asset value in fair condition) + (2 * asset value in poor condition) + (1 * asset value in very poor condition)) / total asset value.


31

2.5 Asset Age The useful life indicated for the asset types below was assigned by the municipality and obtained from the Town’s GIS data and personal geodatabases. In conjunction with observed field data, the useful life values and the associated asset life stage can guide the maintenance, rehabilitation or replacement related activities of major assets. The data is presented in the following order to provide a comprehensive summary of Whitby’s Fleet assets: Table 2-5 Asset Useful Life in Years

Service Asset Class Asset Type Useful Life Fleet Passenger Vehicles Cars 10 Fleet

Passenger Vehicles Pick-up Trucks 10

Fleet Passenger Vehicle SUVs 10 Fleet Passenger Vehicle Vans 10 Fleet Construction Equipment Backhoe 15 Fleet Construction Equipment Cement Mixer 20 Fleet Construction Equipment Dump Trucks 10 Fleet Construction Equipment Gradall 10 Fleet Construction Equipment Grader 15 Fleet Construction Equipment Hot Patcher 10

Fleet Construction Equipment Loader 10

Fleet Construction Equipment Mobile Compressor 10 Fleet Construction Equipment Pavement Grinder 5 Fleet Construction Equipment Street Flusher 10 Fleet Construction Equipment Street Sweeper 7 Fleet Construction Equipment Utility 10 Fleet Construction Equipment Vacuum Truck 9 Fleet Trailers Boat Trailers 15 Fleet Trailers Paint Trailer 15 Fleet Trailers Ice Painting Trailer 15 Fleet Trailers Utility Trailers 15 Fleet Trailers Water Tanker Trailers 10 Fleet Fire Trucks Aerial Trucks 10 Fleet Fire Trucks Pumper Trucks 10 Fleet Fire Trucks Rescue Trucks 15 Fleet Fire Trucks Tanker Trucks 10 Fleet Lawn Care & Forestry Chipper Truck 8 Fleet Lawn Care & Forestry Front Mount Mowers 7 Fleet

Lawn Care & Forestry Litter Truck 7


32

Service Asset Class Asset Type Useful Life Fleet Lawn Care & Forestry Wide Cut Mowers 8 Fleet Lawn Care & Forestry Walk Behind and Front Mount Mowers 7 Fleet Lawn Care & Forestry Turf Care Machines 20 Fleet Refuse Trucks Hooklift 7 Fleet Refuse Trucks Rear Loader 10 Fleet Refuse Trucks Side Loader 10 Fleet Arena Equipment Zamboni 6 Fleet Arena Equipment Ice Edger 10 Fleet Snow Equipment Sidewalk Machines 10 Fleet Snow Equipment Sanders 10 Fleet Snow Equipment Snow Blowers 10 Fleet Garage & Shop Equipment A/C machine 10 Fleet Garage & Shop Equipment Blade Machine 10 Fleet Garage & Shop Equipment Compressor 20 Fleet Garage & Shop Equipment Drill Press 18 Fleet

Garage & Shop Equipment Fuel Pump 15

Fleet Garage & Shop Equipment Hoist 12 Fleet Garage & Shop Equipment Overhead Crane 25 Fleet Garage & Shop Equipment Saw 20 Fleet Garage & Shop Equipment Sweeper Scrubber 15


33

2.5.1 Installation Profile: Infrastructure Investment in Whitby In this section, we provide the installation profile and asset life consumption rate using in-service data. Together, these graphs can illustrate infrastructure investment trends and upcoming needs at Whitby. Figure 2-16 illustrates the level of investment in Whitby’s Fleet infrastructure since 1970. Figure 2-16 Aggregate Installation Profile

The Town made significant investments in its Fleet assets beginning in 2001, with a total of $4 million invested between 2001 and 2005. Additionally, $13.8 million was invested between 2011 and 2015 and $2.3 million in the last 2 years. The following figures illustrate historic investment trends in each asset class.

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Arena Equipment Construction Equipment Fire TrucksGarage & Shop Equipment Lawn Care & Forestry Passenger VehiclesRefuse Trucks Snow Equipment Trailers


34

Figure 2-17 Asset Installation Profile – Arena Equipment

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000


35

Figure 2-18 Asset Installation Profile – Construction Equipment

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000


36

Figure 2-19 Asset Installation Profile – Fire Trucks

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000


37

Figure 2-20 Asset Installation Profile – Garage & Shop Equipment

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000



38

Figure 2-21 Asset Installation Profile – Lawn Care & Forestry

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Lawn Care & Forestry


39

Figure 2-22 Asset Installation Profile – Passenger Vehicles

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000


40

Figure 2-23 Asset Installation Profile - Refuse Trucks

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000


41

Figure 2-24 Asset Installation Profile - Snow Equipment

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000


42

Figure 2-25 Asset Installation Profile - Trailers

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000


43

2.6 Useful Life Consumption In this section, we detail the extent to which each asset class has consumed its useful life based on the above, established useful life standards. Figure 2-26 Aggregate Useful Life Consumption - All Fleet Assets

Approximately 1% of the Town’s Fleet assets valued at $219,735 have more than 10 years remaining. 44%, with a valuation of $15.2 million remain in operation beyond their useful life. An additional 38%, with a valuation of $13.1 million will see their useful life expire in the next five years. The following graphs illustrate the useful life consumption distribution by asset class.

> 10 Years Remaining $219,735

1% 6-10 Years Remaining $5,933,440

17%

0-5 Years Remaining

$13,116,873 38%

Exceeded Estimated Useful Life

$15,211,919 44%

Total $34,481,967


44

Figure 2-27 Useful Life Consumption – Arena Equipment

Figure 2-28 Useful Life Consumption – Construction Equipment

0-5 Years Remaining

$13,500 1%

Exceeded Estimated Useful Life $922,500

99%

Total $936,000

6-10 Years Remaining $2,640,000

34%


36%

Exceeded Estimated Useful Life $2,343,461

30%

Total $7,730,901


45

Figure 2-29 Useful Life Consumption – Fire Trucks

Figure 2-30 Useful Life Consumption – Garage & Shop Equipment

6-10 Years Remaining $850,000

7%


36%


57%

Total $11,300,000

6-10 Years Remaining

$3,000 1%

0-5 Years Remaining

$99,538 46%


53%

Total $258,149


46

Figure 2-31 Useful Life Consumption – Lawn Care & Forestry

Figure 2-32 Useful Life Consumption – Passenger Vehicles

> 10 Years Remaining $135,000

6%


12%


46%


36%

Total $2,431,694


35%


47%


18%

Total $2,768,500


47

Figure 2-33 Useful Life Consumption - Refuse Trucks

Figure 2-34 Useful Life Consumption - Snow Equipment


65%


35%

Total $6,295,000


54%


29%


17%

Total $2,315,148


48

Figure 2-35 Useful Life Consumption - Trailers

> 10 Years Remaining

$84,735 19%


31%


25%


25%

Total $446,575


49

3. Levels of Service The two primary risks to a municipality’s financial sustainability are the total lifecycle costs of infrastructure, and establishing levels of service (LOS) that exceed its financial sustainability. In this regard, municipalities face a choice: overpromise and underdeliver; underpromise and overdeliver; or promise only that which can be delivered sustainably. Developing realistic LOS using meaningful key performance indicators (KPIs) can be instrumental in managing citizen expectations, identifying areas requiring higher investments, driving organizational performance and securing the highest value for money from public assets. However, municipalities face diminishing returns with greater granularity in their LOS and KPI framework. The objective should be to track only those KPIs that are relevant, insightful and reflect the priorities of the Town.

3.1 Overview of Performance Management Beyond meeting regulatory requirements, levels of service established should support the intended purpose of the asset and its anticipated impact on the community and the municipality. LOS generally have an overarching corporate description, a customer oriented description, and a technical measurement. Many types of LOS, e.g., availability, reliability, safety, responsiveness and cost effectiveness, are applicable across all Service Areas in a municipality. The following levels of service categories have been established as guiding principles for the LOS that “each service should strive to provide internally to the organization (Town of Whitby) and externally to customers and regulators.

• Available: Services of sufficient capacity are convenient and accessible to the entire community

• Cost Effective: Services are provided at the lowest possible cost for both current and future customers, for a required level of service, and are affordable

• Reliable: Services are predictable and continuous • Responsive: Opportunities for community involvement in decision making are

provided; and customers are treated fairly and consistently, within acceptable timeframes, demonstrating respect, empathy and integrity

• Safe: Services are delivered such that they minimize health, safety and security risks

• Suitable: Services are suitable for the intended function (fit for purpose) • Sustainable: Services preserve and protect the natural and heritage environment.

While the above categories provide broad strategic direction to council and staff, specific and measurable KPIs related to each LOS category are needed to ensure the Town remains steadfast in its pursuit of delivering the highest value for money to various internal and external stakeholders.


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3.2 Risk Management & Prioritization 3.2.1 Project Prioritization

Generally, infrastructure needs exceed municipal capacity. As such, municipalities must carefully select projects based on the state of infrastructure, economic development goals, and the needs of an evolving and growing community. These factors, along with social and environmental considerations will form the basis of a robust risk management framework. From an asset management perspective, risk is a function of:

• the consequences of failure (e.g., the negative economic, financial, and social consequences of an asset in the event of a failure); and

• the probability of failure (e.g., how likely is the asset to fail in the short- or long-term).

The consequences of failure are typically reflective of: • An asset’s importance in an overall system • The criticality of the function performed • The exposure of the public and/or staff to injury or loss of life

The probability of failure is generally a function of an asset’s physical condition, which is heavily influenced by the asset’s age and the amount of investment that has been made in the maintenance and renewal of the asset throughout its life. Risk mitigation is traditionally thought of in terms of safety and liability factors. In asset management, the definition of risk should heavily emphasize these factors but should be expanded to consider the risks to the Town’s ability to deliver targeted levels of service

• The impact that actions (or inaction) on one asset will have on other related assets

• The opportunities for economic efficiency (realized or lost) relative to the actions taken

Figure 3-1 below illustrates a range of risk factors and describes, in general terms, how the consequences of asset failure can be evaluated relative to each factor. The weightings placed on the various factors should reflect the criticality of each asset and the degree to which the public is directly exposed to risk.


51

Figure 3-1 Risk Factors and Consequence of Failure

Level of Service Other Assets Economic

Efficiency Life, Safety and Liability

High (5)

The asset will cease to function

and service will be unavailable to many users

Other assets will not be functional or

will deteriorate more quickly

Opportunities for significant life

extending/cost-saving

rehabilitation will be missed

The asset’s failure could lead directly

to loss of life or injury

Medium (3)

The asset will still function but the

quality of the service will be

reduced for many users

The functionality of other assets will be

reduced

Opportunities for moderate life

extending rehabilitation will be

missed

The asset’s failure could lead

indirectly to loss of life or injury

Low (1)

The asset will function but the

quality of the service will be

reduced for a few users

The function or condition of other assets will not be

impacted

Replacement at failure is the only

efficient option and can be easily accomplished

The potential for minor claims is

increased

Using the logic above, a risk matrix will illustrate each asset’s overall risk, determined by multiplying the probability of failure (PoF) scores with the consequence of failure (CoF) score, as illustrated in the table below. This can be completed as a holistic exercise against any data set by determining which factors (or attributes) are available and will contribute to the PoF or CoF of an asset. The probability of failure is increased as more and more factors collude to cause asset failure. In order to generate an infrastructure risk matrix, or a heat map, for Whitby’s Fleet assets, we will use the following consequence of risk scoring and probability of risk as shown below in Tables 3-1 and 3-2. The primary determinant of the probability of failure is the condition of the assets.


52

Table 3-1 Consequence of Failure

Asset Class Consequence of Failure Description

Fire Trucks 5

Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets

Snow Equipment 5 Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets

Construction Equipment/Vehicles 4

Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets

Refuse Trucks 4 Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets

Arena Equipment 3 Medium service criticality and low replacement cost

Passenger Vehicles 2 Medium service criticality and low replacement cost

Garage & Shop Equipment 2 Medium service criticality and low replacement cost

Lawn Care & Forestry 1 Low service criticality; replacement cost is low

and asset is easily replaced

Trailers 1 Low service criticality; replacement cost is low and asset is easily replaced


53

Table 3-2 Probability of Failure

Condition Rating Probability of Failure

0-20 Very Poor 5 – Very High

21-40 Poor 4 – High

41-60 Fair 3 – Moderate

61-80 Good 2 – Low

81-100 Very Good 1 – Very Low

The position of the assets on the risk matrix indicats their risk exposure and priority. Figure 3-2 shows how assets are categorized into their respective priority levels based on the probability of failure and the consequence of a failure event.


54

Figure 3-2 Risk Prioritization Matrix

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re

Probability of Failure

Low Priority

High Priority


55

Figure 3-3 Aggregate Risk Matrix – All Fleet Assets

0 Assets$0

0.0%

17 Assets $3,690,000

10.62%

7 Assets $509,000

1.46%

17 Assets $559,206

1.61%

8 Assets $286,000

0.82%

0 Assets$0

0.0%

0 Assets$0

0.0%

41 Assets $1,393,943

4.01%

0 Assets$0

0.0%

18 Assets$561,500

1.6%

35 Assets $1,407,318

4.05%

0 Assets$0

0.0%

14 Assets $626,500

1.80%

0 Assets$0

0.0%

29 Assets $933,036

2.69%

9 Assets $4,900,000

14.10%

21 Assets $4,198,442

12.08%

6 Assets $27,0000.08%

14 Assets $507,000

1.46%

22 Assets $2,632,696

7.58%

23 Assets $3,978,514

11.45%

4 Assets $400,000

1.15%

13 Assets $4,915,200

14.15%

15 Assets $2,158,945

6.21%

2 Assets $1,060,000

3.05%

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



56

Figure 3-4 Risk Matrix – Arena Equipment

0 Assets$0

0 Assets$0

6 Assets$27,000

0 Assets$0

0 Assets$0

0.0%

0 Assets$0

7 Assets$509,000

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

4 Assets$400,000

0 Assets$0

0.0%

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0.0%

0 Assets$0

0.0%

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



57

Figure 3-5 Risk Matrix – Construction Equipment

0 Assets$0

14 Assets$2,038,442

0 Assets$0

0 Assets$0

0 Assets$0

12 Assets$2,170,000

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

14 Assets$1,363,514

0 Assets$0

0 Assets$0

0 Assets$0

15 Assets$2,158,945

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re


0 Assets$0


58

Figure 3-6 Risk Matrix – Fire Trucks

4 Assets$4,050,000

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

2 Assets$1,700,000

0 Assets$0

0 Assets$0

0 Assets$0

6 Assets$4,700,000

0 Assets$0

0 Assets$0

1 Asset$850,000

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



59

Figure 3-7 Risk Matrix – Garage & Shop Equipment

0 Assets$0

0 Assets$0

0 Assets$0

5 Assets$124,500

0 Assets$0

0 Assets$0

0 Assets$0

3 Assets$34,206

0 Assets$0

14 Assets$91,443

0 Assets$0

2 Assets$8,000

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



60

Figure 3-8 Risk Matrix – Lawn Care & Forestry

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0.0%

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

20 Assets$735,328

0 Assets$0

22 Assets$1,000,441

12 Assets$494,400

3 Assets$201,525

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



61

Figure 3-9 Risk Matrix – Passenger Vehicles

0 Assets$0

0 Assets$0

0 Assets$0

10 Assets$452,500

0 Assets$0

0 Assets$0

0 Assets$0

13 Assets$460,000

0 Assets$0

27 Assets$1,302,500

0 Assets$0

16 Assets$553,500

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



62

Figure 3-10 Risk Matrix – Refuse Trucks

0 Assets$0

7 Assets$2,160,000

0 Assets$0

0 Assets$0

0 Assets$0

5 Assets$1,520,000

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

9 Assets$2,615,000

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



63

Figure 3-11 Risk Matrix – Snow Equipment

5 Assets$1,027,000

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

20 Assets$899,137

0 Assets$0

0 Assets$0

0 Assets$0

7 Assets$189,010

0 Assets$0

0 Assets$0

1 Assets$200,000

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



64

Figure 3-12 Risk Matrix – Trailers

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

10 Assets$100,356

0 Assets$0

13 Assets$260,735

1 Asset$25,000

5 Assets$60,484

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

0 Assets$0

1

2

3

4

5

1 2 3 4 5

Con

sequ

ence

of F

ailu

re



65

3.3 Key Performance Indicators and Targets We recommend condition related KPIs and service oriented KPIs for the Town’s Fleet assets. Condition related KPIs gauge the functionality of assets, e.g., observed condition rating and investments in maintenance. Service oriented KPIs illustrate whether assets meet community expectations. In subsequent iterations of this SAAMP, the ‘Future Level’ of KPIs for each asset class can be entered, illustrating a trend. Table 3-3 Key Performance Indicators (KPIs)

Asset Class KPI Target – Condition Related Current Level

KPI Status

Previous Level

KPI Trend

Passenger Vehicles At least 70% of assets in fair or better condition. 84% =


At least 80% of assets in fair or better condition. 72% =

Trailers At least 80% of assets in fair or better condition. 86% =

Fire Trucks At least 95% of assets in fair or better condition. 93% =

Lawn Care & Forestry At least 60% of assets in fair or better condition. 84% =

Refuse Trucks At least 80% of assets in fair or better condition. 100% =

Arena Equipment At least 80% of assets in fair or better condition. 57% =

Snow Equipment At least 95% of assets in fair or better condition. 91% =


At least 70% of assets in fair or better condition. 52% =


66

3.4 Future Performance In addition to the Financial Sustainability, and legislative requirements, e.g., the Accessibility for Ontarians with Disability Act, many factors, internal and external, can influence the establishment of LOS and their associated KPIs, both target and actual. The municipality’s overarching strategic goals as a community will determine the types of services it will provide to its residents, the associated demand on infrastructure, and the level of service it can feasibly deliver. These LOS are directly influenced by – and should reflect – not only the municipality’s financial capacity to maintain the assets, but also the current state of the infrastructure. Public expectations and opinions can also play an important part in prioritizing investments in infrastructure and service delivery standards. The public should be consulted in establishing LOS; however, the discussions should be centred on clearly outlining the lifecycle costs associated with delivering any improvements in LOS. Citizenship expectations and insights will also reflect the demographic composition of the community. Further, a growing community can place added demand on critical infrastructure, and may reduce levels of service standards. Lastly, the wider global context can have direct consequence on a municipality’s capacity to provide established levels of service. Fluctuations in macroeconomic variables such as interest rates and fuel costs, and environmental considerations such as climate change, should be considered prior to making infrastructure investments and changing the municipality’s asset portfolio.

3.5 Monitoring, Updating and Actions The Town of Whitby has not established technical and service-oriented LOS targets for its Fleet Service Area. The municipality should collect data on its current performance against the KPIs listed in section 3.2. These established targets should reflect the current fiscal capacity of the municipality, its corporate and strategic goals, and changes in demographics that may place additional demand on its Fleet assets. We also recommended that Fleet condition data be collected on an annual basis such that the results of this data can be tracked and monitored against the KPI targets set out within this SAAMP.

3.6 Non-Infrastructure Solutions and Requirements The municipality should explore, as requested through the provincial requirements, which non-infrastructure solutions should be incorporated into the budgets for its Fleet services. Non-Infrastructure solutions are such items as studies, policies, condition assessments, consultation exercises, etc., that could potentially extend the life of assets or lower total asset program costs in the future without a direct investment into the infrastructure. Typical solutions for a municipality include linking the asset management plan to the strategic plan, growth and demand management studies, infrastructure master plans, better integrated infrastructure and land use planning, public consultation on levels of service, and


67

condition assessment programs. As part of future asset management plans, a review of these requirements should take place, and a portion of the capital budget should be dedicated for these items in each programs budget. It is recommended, under this category of solutions that the municipality should continue to implement holistic condition assessment programs for its Fleet assets. This will advance the understanding of infrastructure needs, improve budget prioritization methodologies, and provide a clearer path of what is required to achieve sustainable infrastructure programs.


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4. Asset Maintenance & Renewal Strategies

The asset management and renewal strategy will develop an implementation process that can be applied to the needs identification and prioritization of renewal, rehabilitation, and maintenance activities. This will assist in the production of a 10-year plan, including growth projections, to ensure the best overall health and performance of the municipality’s infrastructure. This section includes an overview of condition assessment; the life cycle interventions required; and prioritization techniques, including risk, to determine which priority projects should move forward into the budget first. The following tables illustrate the lifecycle activities associate with each asset component within the Fleet assets.


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Table 4-1 Lifecycle Activities - Fleet: Lawn Care and Forestry

Average of Replacement Cost Replacement Schedule

Lawn Care & Forestry 7 Years 8 Years 10 Years 15 Years 20 Years

Chipper Truck $130,000 $175,500 Front Mount Mowers $42,136 Litter Truck $160,000 Push Mower $1,000 Rotary Mower $72,000 $64,667 Tractor $80,000 Turf Care Machines $50,875 $9,134 $22,274 $3,133 Turf Sweeper $9,500 Turf Topper $20,000 Table 4-1 shows the replacement costs and replacement schedule for different Lawn Care and Forestry asset types. These figures depict the average replacement value, which for asset classes such as ‘Turf Care Machines’ includes a number of asset types. All Fleet assets undergo a simple end of life replacement lifecycle with regular maintenance at intervals. Table 4-2 Lifecycle Activities - Fleet: Shop Equipment Average of Valuation Cost Replacement Schedule Garage & Shop Equipment 10 Years 15 Years 20 Years 25 Years A/C machine $3,000 Blade Machine $3,000 Compressor $40,000 Drill Press $715 $5,000 Fuel Pump $6,500 Hoist $770 $19,069 $35,000 Overhead Crane $17,000 Saw $798 Sweeper Scrubber $65,000


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Table 4-3 Lifecycle Activities - Fleet: Snow Equipment

Average of Valuation Cost Replacement Schedule

Snow Equipment 10 Years Sanders $12,000 Sidewalk Machines $122,525 Snow Blowers $14,900

Table 4-4 Lifecycle Activities - Fleet: Refuse Trucks Average of Valuation Cost Replacement Schedule Refuse Trucks 5 Years 10 Years Hooklift $135,000 Rear Loader $240,000 Side Loader $320,000

Table 4-5 Lifecycle Activities - Fleet: Trailers Average of Valuation Cost Replacement Schedule Trailers 10 Years 15 Years Boat Trailer $45,000 Ice Painting Trailer $10,000 Paint Trailer $15,000 Utility Trailer $16,476 Water Trailer $20,000


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Table 4-6 Lifecycle Activities - Fleet: Construction Average of Valuation Cost Replacement Schedule Construction Equipment 5 Years 7 Years 10 Years 15 Years 20 Years Backhoe $135,000 Cement Mixer $10,000 Dump Trucks $138,948 Gradall $350,000 Grader $200,000 Hot Patcher $155,000 Loader $253,000 Mobile Compressor $40,000 Pavement Grinder $3,105 Street Flusher $190,337 Street Sweeper $273,000 Utility $24,019 Vacuum Truck $550,000 $80,000


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Table 4-7 Lifecycle Activities - Fleet: Arena Equipment Average of Valuation Cost Replacement Schedule Arena Equipment 6 Years 10 Years Ice Edger $4,500 Ice resurfacer $100,000

Table 4-8 Lifecycle Activities - Fleet: Fire Trucks

Average of Valuation Cost Replacement Schedule

Fire Trucks 10 Years Aerial $1,500,000 Pumper $850,000 Rescue $100,000 Tanker Trucks $550,000

Table 4-9 Lifecycle Activities - Fleet: Passenger (Pickups, Cars, SUV, Van) Average of Valuation Cost Replacement Schedule Passenger Vehicles 10 Years Cars $30,571 Pick-up Trucks $40,171 SUVs $38,714 Vans $57,864


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4.1 Condition Assessment Programs When establishing the condition assessment of an entire asset class, the cursory approach (metrics such as Very Good, good, fair, poor, very poor) is used. This is a less expensive approach when applied to thousands of assets, yet still provides up to date information, and allows for detailed assessment or follow up inspections on those assets captured as poor or critical condition later. The typical approach to optimizing the maintenance expenditures of a corporate fleet of vehicles is through routine vehicle inspections, routine vehicle servicing, and an established routine preventative maintenance program. Most, if not all, makes and models of vehicles are supplied with maintenance manuals that define the appropriate schedules and routines for typical maintenance and servicing and also more detailed restoration or rehabilitation protocols. The primary goal of good vehicle maintenance is to avoid or mitigate the consequence of failure of equipment or parts. An established preventative maintenance program serves to ensure this, as it will consist of scheduled inspections and follow up repairs of vehicles and equipment in order to decrease breakdowns and excessive downtimes. A good preventative maintenance program will include partial or complete overhauls of equipment at specific periods, including oil changes, lubrications, fluid changes and so on. In addition, workers can record equipment or part deterioration so they can schedule to replace or repair worn parts before they fail. The ideal preventative maintenance program would move further and further away from reactive repairs and instead towards the prevention of all equipment failure before it occurs. It is recommended that a preventative maintenance routine is defined and established for all Fleet vehicles. A calendar of events should be developed for all existing assets and upon acquisition of new ones, detailing when fleet assets should undergo major and minor maintenance. For example, a vactor truck in heavy use during spring, summer and fall should have its major maintenance scheduled during the winter months to avoid significant downtimes when it is in high demand.

4.2 Lifecycle Framework The best approach to develop a 10-year needs list for the Town’s Fleet assets would first be through a defined preventative maintenance program as described in the previous section, and secondly, through an optimized life cycle vehicle replacement schedule. As previously described, the preventative maintenance program would serve to determine budget requirements for operating and minor capital expenditures for part renewal and major refurbishments and rehabilitations. An optimized vehicle replacement program will ensure a vehicle is replaced at the correct point in time in order to minimize overall cost of ownership, minimize costly repairs and downtime, while maximizing potential re-sale value. There is significant benchmarking information available within the fleet industry in regards to vehicle life cycles which can be used to assist in this process. Once appropriate replacement schedules are established the short and long term budgets can be funded accordingly.


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There are, of course, functional aspects of fleet management that should also be looked at in further detail as part of the long-term management plan, such as fleet utilization and incorporating green fleet, etc.

4.3 Monitoring, Updating and Action To continue to develop its asset management program, we recommend the following:

• The Town of Whitby should continue to assess the condition of its Fleet assets and dedicate a portion of its capital funding to this assessment.

• Risk should be reviewed annually to ensure assets are being maintained effectively.


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5. Financial Strategy 5.1 General Overview of Financial Plan

Requirements In order for an AMP to be effectively put into action, it must be integrated with financial planning and long-term budgeting. The development of a comprehensive financial plan is planned for 2018. This will allow The Town of Whitby to identify the financial resources required for sustainable asset management based on existing asset inventories, desired levels of service, and projected growth requirements. The following pyramid depicts the various cost elements and resulting funding levels that should be incorporated into AMPs that are based on best practices.


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Figure 5-1 Cost Elements


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This report develops such a financial plan by presenting several scenarios for consideration and culminating with final recommendations. As outlined below, the scenarios presented model different combinations of the following components:

5. the financial requirements (as documented in the State of the Infrastructure section of this report) for: • existing assets • existing service levels • requirements of contemplated changes in service levels (none identified for this plan) • requirements of anticipated growth (none identified for this plan)

If the financial plan component of the 2016 AMP results in a funding shortfall, the Province requires the inclusion of a specific plan as to how the impact of the shortfall will be managed. In determining the legitimacy of a funding shortfall, the Province may evaluate a municipality’s approach to the following:

6. in order to reduce financial requirements, consideration has been given to revising service levels downward 7. all asset management and financial strategies have been considered. For example: • if a zero debt policy is in place, is it warranted? If not, the use of debt should be considered. • do user fees reflect the cost of the applicable service? If not, increased user fees should be considered.


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5.2 Current Financial Profile Table 5-1 outlines the Town’s capital requirements over the next 100 years. Table 5-2 compares the Town’s current funding allocation with its sustainable life cycle requirements. Table 5-1 Total Capital Requirements by Asset Class

Service Area Asset Type

5 Year Requirement (Short-term)

10 Year Requirement (Medium-term)

25 Year Requirement (Medium-term)

50 Year Requirement (Long-term)

100 Year Requirement (Long-term)

Fleet Arena Equipment $400,000 $1,336,000 $3,672,000 $7,380,000 $15,160,000

Fleet Construction Equipment $2,152,050 $5,435,216 $18,583,482 $38,033,080 $78,426,160

Fleet Fire Trucks $850,000 $7,250,000 $23,450,000 $52,450,000 $108,950,000

Fleet Garage & Shop Equipment $0 $160,636 $381,785 $759,510 $1,603,523

Fleet Lawn Care & Forestry $998,000 $2,542,271 $7,634,624 $16,667,637 $33,029,140

Fleet Passenger Vehicles $452,500 $2,215,000 $5,989,500 $13,289,000 $27,131,500

Fleet Refuse Trucks $4,640,000 $10,935,000 $29,550,000 $60,755,000 $123,030,000

Fleet Snow Equipment $210,000 $1,357,896 $4,625,793 $10,189,482 $21,228,963

Fleet Trailers $10,000 $265,000 $811,000 $1,728,000 $3,661,000

$9,712,550 $31,497,019 $94,698,184 $201,251,709 $412,220,286


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Table 5-2 Average Annual Capital Requirements by Asset Class

Service Asset Type 5 Year Requirement

10 Year Requirement

25 Year Requirement

50 Year Requirement

100 Year Requirement

Sustainable Lifecycle Requirement

Fleet Arena Equipment $80,000 $133,600 $146,880 $147,600 $151,600 $153,600

Fleet Construction Equipment $430,410 $543,522 $743,339 $760,662 $784,262 $809,326

Fleet Fire Trucks $170,000 $725,000 $938,000 $1,049,000 $1,089,500 $1,130,000

Fleet Garage & Shop Equipment $0 $16,064 $15,271 $15,190 $16,035 $16,174

Fleet Lawn Care & Forestry $199,600 $254,227 $305,385 $333,353 $330,291 $337,659

Fleet Passenger Vehicles $90,500 $221,500 $239,580 $265,780 $271,315 $276,850

Fleet Refuse Trucks $928,000 $1,093,500 $1,182,000 $1,215,100 $1,230,300 $1,245,500

Fleet Snow Equipment $42,000 $135,790 $185,032 $203,790 $212,290 $220,790

Fleet Trailers $2,000 $26,500 $32,440 $34,560 $36,610 $37,733

Fleet Total Average Annual Requirement

$1,942,510 $3,149,702 $3,787,927 $4,025,034 $4,122,203 $4,227,633

Fleet Current Funding Available

$2,065,060 $2,065,060 $2,065,060 $2,065,060 $2,065,060 $2,065,060

Surplus/Deficit $122,550 -$1,084,642 -$1,722,867 -$1,959,974 -$2,057,143 -$2,162,573


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5.3 Forecasting Replacement Needs In the following sections, we illustrate the short-, medium- and long-term infrastructure spending requirements (replacement only) for each asset class. The backlog represents the immediate replacement needs that were deferred over previous years or decades. Figure 5-2 Forecasting Aggregate Replacement Needs

While there is no backlog for Fleet assets, $9.71 million in replacement related expenditures will be required over the next five years. An additional $21.8 million will be required between 2021 and 2025, with Refuse Trucks and Snow Equipment comprising the largest shares. The following graphs illustrate the forecasted replacement needs for each asset class.

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Fleet Total Fleet 5-Year ($1.94 M) Fleet 10-Year ($3.15 M)

Fleet 25-Year ($3.79 M) Fleet 50-Year ($4.03 M) Fleet 100-Year ($4.12 M)


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Figure 5-3 Forecasting Replacement Needs – Arena Equipment

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000R

epla

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Figure 5-4 Forecasting Replacement Needs – Construction Equipment

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000R

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Figure 5-5 Forecasting Replacement Needs – Fire Trucks

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000R

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Figure 5-6 Forecasting Replacement Needs – Garage & Shop Equipment

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000R

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Figure 5-7 Forecasting Replacement Needs - Lawn Care Forestry

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000R

epla

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Figure 5-8 Forecasting Replacement Needs – Passenger Vehicles

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000R

epla

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Figure 5-9 Forecasting Replacement Needs – Refuse Trucks

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000R

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Figure 5-10 Forecasting Replacement Needs – Snow Equipment

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000R

epla

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eeds


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Figure 5-11 Forecasting Replacement Needs – Trailers

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000R

epla

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5.4 Financial Sustainability The sustainable average annual investment requirement for Whitby’s Fleet assets total $4,227,633. Annual revenue currently allocated to these assets for capital purposes is $2,065,060. As such the Town is fully funding its short-term annual requirements but is underfunding its medium- and long-term needs. As a result, the municipality received a ‘C’ for its financial sustainability grade. Table 5-3 describes various funding levels and their impact on short-, medium-, and long-term needs.


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Table 5-3 Financial Capacity Grading Scale

How well is the municipality funding its long-term infrastructure requirements?

Short Term Less than 5 years

Medium Term 5 to 20 years

Long Term Greater than 20 years

Letter Grade Rating

Short-Term Needs

Met

Medium-Term

Needs Met

Long-Term

Needs Met

Description

A Very Good Yes Yes Yes

The municipality is fully prepared for its short-, medium- and long-term replacement needs based on existing infrastructure portfolio.

B Good Yes Yes No

The municipality is well prepared to fund its short-term and medium-term replacement needs but requires additional funding strategies in the long-term to begin to increase its reserves.

C Fair Yes No No

The municipality is underpreparing to fund its medium- to long-term infrastructure needs. The replacement of assets in the medium-term will likely be deferred to future years.

D Poor Partly No No

The municipality is not well prepared to fund its replacement needs in the short-, medium- or long-term. Asset replacements will be deferred and levels of service may be reduced.

F Very Poor No No No

The municipality is significantly underfunding its short-term, medium-term, and long-term infrastructure requirements based on existing funds allocation. Asset replacements will be deferred indefinitely. The municipality may have to divest some of its assets (e.g., bridge closures, arena closures) and levels of service will be reduced significantly.


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6. Recommendations This is the Town of Whitby’s second Service Area Asset Management Plan (SAAMP) for its Fleet Services Area. To ensure it is a meaningful document that augments the Town’s ability to build a strong asset management program, we recommend the following key actions:

1. The municipality continue its robust Fleet condition assessment program and that a portion of capital funding is dedicated to this. Research should be conducted to investigate available preventative maintenance techniques with pilot projects to test their effectiveness.

2. The Town should update this SAAMP on an annual basis. 3. The Town should undertake the development of a long-term financial strategy. 4. The Town should investigate and develop other rehabilitation strategies.


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7. Appendix: Condition Rating Scale Ratings Condition Description

A Very Good The asset is typically new with good public appearance.

B Good The asset is still in good condition, with general wear on components and good public appearance

C Fair

The asset is showing signs of corrosion, increased maintenance costs and down time in order to meet governing standards. Poor visual appearance.

D Poor

The asset is showing signs of fatigue, increased corrosion, leaks, failure to provide services due to increased mechanical failure, increased maintenance costs and down time in order to meet governing standards. Very poor visual appearance to public.

F Very Poor

The asset shows signs of severe corrosion and leaks. The asset is not safe to be on the road. The Town does not allow Fleet assets to reach this condition.

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