FACING THE INFRASTRUCTURE CHALLENGE 2 Figure1:Edmonton’sinfrastructureassetsbyclass,withreplacementvalue* 3
Emergingissues 4 Figure2:Averageageandexpectedlifeofinfrastructureassets,byclass. 4 Figure3:Factorswithanimpactoninfrastructureandservicedelivery 5
Thefinancial‘bigpicture’ 5 Figure4:2006-2015LongRangeFinancialPlanandtheinfrastructuregap 5
Helpfromtheotherordersofgovernment 6
Edmonton’sstrategicapproach 7 Figure5:StatusofEdmonton’sinfrastructureassets 7
DEVELOPING SOLUTIONS 9
EDMONTON CITY COUNCIL’S INFRASTRUCTURE STRATEGY 10
Council’sVision 10
Administration’sMandate 10
GuidingPrinciples 10
Goals 11
LONG-TERM TACTICS AND ACTIVITIES 12
Goal1:Defineneeds:Evaluateandreportthestateofinfrastructureassets 12
Goal2:Developsolutions:Implementsustainableinfrastructureassetmanagementpractices 13
Goal3:Securefunding:Ensureadequatefiscaltoolsandresourcestofundinfrastructureassets 14
APPENDIX A: INFRASTRUCTURE ASSET MANAGEMENT DEFINITIONS 15
Table of Contents
2 EdmontonCityCouncil’sInfrastructureStrategy
OurCity’sinfrastructureandprocessesmustrespondtotheneedsofagrowingpopulationandeconomy.WeneedtosupportandenhancetheinfrastructureassetsthatmakeEdmontonmorethanaplacetowork:theseassetsmakeourCityaplaceforcurrentandfuturegenerationstobuildtheirlives.
· Mayor Stephen Mandel. January16,2005.
Thesinglebiggestchallengefacingmunicipalitiestodayisfindingfundingformuch-neededupgradestoagingoroutdatedinfrastructure,andforgrowth-relatednewinfrastructure.
· Honourable Rob Renner, Minister of Municipal Affairs SpeechtotheAlbertaAssociationofMunicipalDistrictsandCountiesSpringConvention,April6,2005.
Infrastructureisacrucialinvestmentinoureconomicproductivityandqualityoflife.Itisthesinewofournationaleconomy–awebofconcrete,steel,andfibreopticsthatbindsourcountrytogether,andbringsourcountrytotheworld.Toharnessoureconomicpotential,Canadamustaddressitsnationalinfrastructuredeficit.
· Prime Minister Stephen Harper. January11,2006.
EdmontonCityCouncil’sInfrastructureStrategy 1
2 EdmontonCityCouncil’sInfrastructureStrategy
Acity’srelativehealthcanbemeasuredbytheabilityofitsinfrastructuretomeetcitizens’needs.Infact,thepropermanagementofinfrastructurehelpstocreatethetypeofcityinwhichwewanttolive,workandplay.
Fewofusthinkaboutthecrucialrolemunicipalinfrastructureassetsplayinourday-to-daylives.Weassumepotholeswillbefilledandtrafficsignalswork;wetakeforgrantedthatwastewaterisproperlytreatedbeforeitisreleasedintotheriver;wetrustthattheparksandpoolswhereourchildrenplayaresafeandwellmaintained.Likeanyresponsiblehomeowner,theCityhasaplantomanageitsinfrastructureassetsinordertomanagegrowth,encourageeconomicdevelopment,andprotectpublicsafety.
Facing the infrastructure challenge
Economicsuccesstoday,andevenmoresointhefuture,willrequiremanythings,andamongthemaresustainable,well-financed,andworld-classbigcitiesthatattractandretainthebestandthebrightest.Futuresuccessmeansbuildingbigcitiesthatcanmeethighexpectationsandloftyaspirations,aswellaseffectivelyandefficientlydeliveringahighqualitypackageofmunicipalservicesandgoodqualityinfrastructureatanaffordableprice.
·Rationale for Renewal. CanadaWestFoundation,September2005.
EdmontonCityCouncil’sInfrastructureStrategy �
ASSET CLASS DESCRIPTION REPLACEMENT VALUE % OF TOTAL
Drainage Sanitary,stormandcombinedsewers(includesmanholesandcatchments),andwastewatertreatment.
$8.41billion 42%
Road right-of-way Roads(arterial,collectors,local;curbsandgutters),sidewalks,bridges,gates,streetscapes.
$6.37billion 31%
Parkland Horticulture,trails,hardsurfaces,playgrounds,sportsfields,parksandassociatedinfrastructure(climbinggyms,etc.).
$1.48billion 7%
Transit facilities and equipment
LRTsystemfacilitiesandequipment,transitcentres,busequipmentandsystems,trolleysystem.
$1.02billion 5%
Buildings Civicoffices,publicworksyards,emergencyresponseandpolicebuildings,andlibraries.
$674million 3%
Fleet Transitbuses,cityvehiclesandautomotiveshopequipment. $611million 3%
Traffic control and lighting Trafficsignals,signs,streetlightingandparkingmeters. $540million 3%
Recreation facilities Arenas,leisurecentres,swimmingpools,FortEdmonton,ValleyZoo,etc. $534million 3%
Affordable housing Non-profithousing,communityhousing,andseniorslodges. $220million 1%
Waste management facilities Administrativefacilities,transferstations,processingfacilities,landfilloperations. $185million 1%
Technology equipment Servers,networks,allcommunicationequipment. $107million 0.5%
Others Emergencyresponseandpoliceequipment,librarycontents. $91million 0.5%
Total replacement value $20.2 billion 100%
Edmonton’sinfrastructureassets,whichhaveareplacementvalueof$20billion,includeroads,sewerlines,transit,emergencyresponsevehicles,swimmingpools,parks,informationtechnologyandmore.Alltheseassetsmakevitalcontributionstoourqualityoflife.
*Allfigureshavebeenrounded.
Figure 1: Edmonton’sinfrastructureassetsbyclass,withreplacementvalue*
� EdmontonCityCouncil’sInfrastructureStrategy
Emerging Issues
Thejobofbuildingandmaintainingtheseinfrastructureassetsisbecomingincreasinglydifficult.ManyofEdmonton’sinfrastructureassetswerebuilteitherinthe1950sor‘70s.Asaresult,theaverageageofEdmonton’sinfrastructureisover30yearsandtheaveragelifeexpectancyofinfrastructureassetsis50years.Havingpassedthehalfwaypoint,theCityisapproachingacriticalperiodtoensurethatitsinfrastructureassetscontinuetomeettheneedsofEdmontoniansinthefuture.
Inaddition,eachyearthousandsofnewresidentsflocktotheEdmontonregiontotakeadvantageofemploymentopportunitiescreatedbyourthrivingeconomy.Personaldisposableincomeisontheriseandlowinterestrateshaveresultedinanextremelyhealthyhousingmarket–similartothebuildingboomofthe1970s.
Edmontonhasgrownbymorethan46,000personssince2001,whichislikeaddingtoitspopulationanentirecitythesizeofMedicineHat.Thispopulationgrowthhasasignificantimpactoninfrastructurerequirements.Inthesamewaythatagrowingfamilymayfindthatithasbecometoolargeforatwo-bedroomhome,theCitymustbuildnewinfrastructuretosupportitspopulationgrowth.
Edmonton’ssituationisalsouniquebecausethereare21municipalitiesintheimmediateregionaccountingforalmost300,000additionalpeople.Mostpeoplebenefitfromlivingincloseproximitytotheprovincialcapital,whichprovidesbig-cityservicesandopportunitiesthatwouldbeotherwiseinaccessible.
TensofthousandsofresidentsfromneighbouringmunicipalitiestraveltoEdmontoneverydayandsupportEdmonton-basedbusinessesthat,inturn,paylocalpropertytaxes.However,thiseconomic
activityalonedoesnotnecessarilyprovideacontributionequaltotherevenuerequiredtopreserveandmaintaintheCity’sinfrastructureusedbytheseresidents.
OtherfactorsthathaveanimpactonEdmonton’sinfrastructureincludedemographicchanges(agingpopulation,changingresidentialandmovementpatterns),politicalrelationships(changingrelationshipswiththefederalandprovincialgovernments),environmentalimpacts(suchasratificationoftheKyotoAccordandstricterpollutioncontrols),socialandculturalissues(low-costpublichousing,servicestotheeconomicallydisadvantaged)and
newtechnologiesthatinfluenceservicedeliverytocitizens.
Alberta’shealthyeconomyhasalsoledtohighlevelsofprivateinvestmentintheoilsandsandotherindustrialsectors,aswellasplansfromtheprovincialgovernmenttoimprovetransportationcorridorsandbuildnewschoolsandhospitals.Thishasfueledsubstantialinflationaryincreasesintheconstructionsector;adollartodaydoesnothavethesamepurchasingpowerthatitdidthreeyearsago.Edmontonmustcarefullymanageitsinvestmentininfrastructuretoensureitgetsvalueforeverydollar.
Canadiansknowwhattheywantfortheircommunities.Butwherewehopetoseeclean,green,productiveandwell-runmunicipalitiesandtowns,weseeagrowinggapbetweenwhatisandwhatcouldbe.Weseethesignsofdecline,thewearandtearthatsignalstrouble.
·Quality of Life in Canadian Municipalities: Highlights Report 200�.FederationofCanadianMunicipalities,April2004.
Figure 2: Averageageandexpectedlifeofinfrastructureassets,byclass
EdmontonCityCouncil’sInfrastructureStrategy 5
Alltheseissuesmakeinfrastructuremanagementanincreasinglydifficulttask.Respondingeffectivelyrequiresastrategicapproach,onethatbridgesthespacebetweenpolicy,asdeterminedbyCityCouncil,andservicedelivery,asperformedbytheAdministration.EdmontonCityCouncil’sInfrastructureStrategyhelpstoprovidethatbridgeandincludesactiontosupporttheimplementationofnewpoliciesandpracticesthatwillsupportlong-termmunicipalsustainability.
The financial ‘big picture’
In1998,theCity’sLongRangeFinancialPlan(LRFP)identifiedan‘infrastructuregap’–thetotalcapitalinfrastructureinvestmentrequiredoveraten-yearperiodcomparedtoavailablerevenues–thatexceededtheCity’sabilitytobridgeexistingrevenuesourcesandmanagementpractices.
CityCounciladoptedEdmonton’sfirstInfrastructureStrategyin1998asastrategicresponsetothewideningdisparitybetweennecessaryinfrastructureinvestmentandavailablefunding.
Figure �: Factorswithanimpactoninfrastructureandservicedelivery
Figure �: 2006-2015LongRangeFinancialPlanandtheinfrastructuregap
� EdmontonCityCouncil’sInfrastructureStrategy
The2006-2015LRFPidentifiestotalcapitalspendingof$8.6billion.Ofthattotal,nearly56percentor$4.8billionis‘funded’;thatis,theCityhasidentifiedrevenuefromtaxes,grantsanduserfeestopayforprojectswiththisvalue.Thecorresponding‘unfunded’portionoftheLRFP,whichisthevalueoftheinfrastructuregap,isapproximately$3.8billion.
Ofthe$3.8billionunfundedinfrastructuregap,nearly$1.7billion(44percent)isrequiredtorehabilitateexistinginfrastructure,$2.1billion(55percent)isrequiredtofundgrowthprojects,andtheremaining$30million(onepercent)forotherprojects.
ThispersistentcapitalfundingshortfallmeansthattheCityhasbeendeferringmaintenanceonexistinginfrastructureassetsanddelayingtheconstructionofnewassets,eventhough
delaysarecostly,becauseitsimplydoesnothaveenoughrevenuetomeetidentifiedneeds.
Municipalinfrastructureexpertsrecommendthatmunicipalitiescommitbetweentwoandfourpercentoftheirtotalinfrastructureassetvalueeachyeartorehabilitation.ForEdmonton,withassetsvaluedatslightlymorethan$20billion,thisbenchmarkwouldtranslatetoanannualreinvestmentofbetween$400and$800milliontorehabilitateexistinginfrastructure.Overthenext10years,however,theCityhasthecapacitytospendonlyabout$260millionannuallyforrehabilitationandreplacement–slightlymorethanonepercentoftheassetreplacementvalueandsignificantlybelowtherecommendedtwotofourpercent.Thelongerthatrequiredrehabilitationisdeferred,themoreexpensiveitbecomestobringassetsbacktoanacceptablecondition.
CurrentreinvestmentratescannotpreservetheCity’s$20billioninvestmentinexistinginfrastructureinitscurrentcondition,norcancurrentbudgetskeeppacewithEdmonton’srequirementsandprojectedgrowth.
Help from the other orders of government
Municipalrevenues,whichareoverlyreliantonpropertytaxes,cannotpreserveexistinginfrastructureorsustaingrowthprojections.Chronicunderfundingcreatesabacklogofdeferredcapitalprojectsandimpairsthe
City’sabilitytomaintaincurrentservicelevels.Thesecombinetoreduceourabilitytosupportgrowthandeconomicdevelopment.
Overthenextdecade,Edmontonwillreceiveroughly$1.5billionincombinedcommitmentsfromthefederalandprovincialgovernments.Thefederalgovernmentagreedin2004torefundtheGSTtomunicipalitiesandtoshareapercentageofthefederalgasolinetax.In2005,theprovincialgovernmentcommitted$3billioninnewinfrastructurefundingtoAlbertamunicipalitiessharedonapercapitabasis,whichmeansthatEdmonton’seventualsharewilldependoncensusdata.
ThoughthereisnosinglesolutionthatwillalleviateEdmonton’sinfrastructurechallenges,persistenceiscrucialastheCityexploressuitablerevenuesourcesandmorecost-effectiveapproachestomanagetheinfrastructuregap.
·Thinking Outside the Gap: Opportunities to Address Edmonton’s Infrastructure Needs.ReportoftheOfficeofInfrastructure,CityofEdmonton,December2004.
EdmontonCityCouncil’sInfrastructureStrategy �
ThisnewfundingenablesCityCounciltopursueprojectsthatwouldotherwisehavebeenindefinitelydeferred,suchasthe23rdAvenue/GatewayBoulevardinterchange,thesouthernextensionoftheLRTtoCenturyPark,busrapidtransit,neighbourhoodinfrastructure,floodpreventionandnewemergencyfacilities.
Theimportanceofthisnewfundingcannotbeoverstated;atthesametime,itcannotbedeniedthatEdmontonstillhasasignificantshortfall.Edmontoncontinuestofaceadelicatebalancingact–itmustmaintain
andreplaceexistinginfrastructurewhiledealingwithincreaseddemandstosupportgrowth,andthatmeansmarryingnewfiscalgoalswithimprovedinfrastructureassetmanagement.
Edmonton’s strategic approach
Comprisedofsixprincipalstrategiesandninesupportivestrategies,theCity’sfirstInfrastructureStrategywasintendedtoensurethat:
·municipalinfrastructureisinagoodstateofrepair;
·rehabilitationanddevelopmentprogramswereadequatelyfunded;and
·thedifferencebetweencapitalrequirementsandavailablefunding–theinfrastructuregap–isaddressed.
AkeycomponentofEdmonton’sInfrastructureStrategywasthecreationin2000oftheOfficeofInfrastructure.Overthepastfiveyears,theOfficehas:
·createdandmaintainedacomprehensiveinventoryoftheCity’sofinfrastructureassets;
·coordinatedregularupdatesoftheCity’sinventoryandinvestmentneedstoCityCouncileverytwoyears;
·developedandimplementedstrategiestoaddresstheinfrastructuregap;
·coordinatedtheinfrastructurefundsreceivedfromfederalandprovincialprograms.
Tomakesurethatlimitedcapitalresourcesarewiselyinvested,Edmontonhasdevelopedorisintheprocessofdevelopingavarietyofinnovativeinfrastructureassetmanagementtoolsthatinclude:
·arankingsystemtoevaluatethestateandconditionofexistinginfrastructureassetsofallclasses;
·ariskassessmentmethodologytoquantifytheriskofassetfailureandrelatethisrisktoinvestmentlevels,and
·alifecyclecostmethodologytosupportbetterdecision-makingandlong-termplanning.
OverthepastfiveyearstheCityhasseengreaterintegrationofitsinfrastructuremanagement,budget,andplanningprocesses.ThisintegrationbetterenablestheCitytoprioritizeinfrastructureinvestmenttomatchcitizendemandsandprogramneeds.TheOfficeofInfrastructurehelpsCitydepartmentsdefinethecostsassociatedwithassetmaintenance,
rehabilitationandconstruction.Asaresult,theCitywillbeabletomoreaccuratelypredictitsbudgetrequirementsinboththeshort-andlong-term.
Figure 5: StatusofEdmonton’sinfrastructureassets
Municipalitiescontinuetofacefinancialpressuretorepairorreplaceexistinginfrastructure.Somemunicipalpropertytaxassessmentbasesaredecliningwhileothermunicipalitiesfacerapidgrowthpressures.Municipalitiescontinuetoindicatethatcurrentfundinglevelsandrevenuesourcesmaynotbeadequatetomeetserviceorinfrastructuredemands.
· Alberta Municipal Affairs Business Plan 200�-200�.
� EdmontonCityCouncil’sInfrastructureStrategy
Edmontonhasadoptedothermeasurestohelpdealwithitsinfrastructurechallenges.TheSanitaryServicingStrategyFund,apartnershipforgedbetweentheCityanddevelopersin1998,collectsfeesfromdevelopersthroughchargesappliedtonewneighbourhoodsanddevelopments.Thefundfinancestheconstructionofmajorsanitarysewersandmakesitpossiblefordevelopmentinnewcommunitiestoproceed.
ArterialRoadwayAssessmentsisanothertoolusedbytheCitytopayforroadinfrastructureassociatedwithagrowingcity.Theseassessmentsrequirethatdeveloperspayforthefirsthalfofanarterialroadwaylocatedwithinapredeterminedarea.
Itshouldalsoberecognized,however,thateventhoughtheinitialcapitalinvestmentispaidelsewhere;therearelifecycleoperation,maintenance,rehabilitationandreplacementcoststhatneedtobeaddressedwhentheCityassumesownershipoftheseassets.
In2002CityCouncilamendedtheDebtManagementFiscalPolicytopermitborrowingofupto$50millioneveryyearoverfiveyearstofundlarge-scale,high-priorityinfrastructureprojects.
TheCityalsoconvertedlanddrainagetoautilityin2003,enablingthedrainagenetworktobecomeaself-supporting,user-paysystemindependentofpropertytaxes.
Edmonton’sstrategicapproachtoinfrastructureassetmanagementhasledtoitsinternationalrecognitionasoneofNorthAmerica’smostprogressivejurisdictionsbysuchauthoritiesastheInstituteofPublicWorksEngineeringAustralia;theFederalHighwayAdministration;theAmericanAssociationofStateHighwayandTransportationOfficials;CanadianPublicWorksAssociation;CanadianSocietyofCivilEngineers;Transport,InfrastructureandCommunitiesCanada;andtheFederationofCanadianMunicipalities.
TheCityofEdmontonhasalsobeenapproachedbymanymunicipalitiesacrossCanada,theUnitedStatesandAustraliawhowishtolearnmoreaboutitsinnovativeapproachtoinfrastructureassetmanagement.
TheOfficeofInfrastructurehasgreatlyenhancedtheCity’sawarenessandunderstandingoftheinfrastructurechallengeitfaces.WiththeadoptionofthenewInfrastructureStrategy,CityCouncilhasshiftedEdmonton’sfocusfrom‘definingtheproblem’to‘developingsolutions.’
Thepotentialcostsoffailingtoaddressthe[infrastructure]issueincludehigheroperatingcostsforgovernmentandbusiness,negativeimpactsontheenvironment,threatstopublichealthandsafetyaswellasothersocialcosts,losteconomicpotentialandproductivity,andmostimportant,theprospectofevenhighercapitalcostsinthefuture.Clearly,theissueisonethatneedstobeaddressed.Giventhepotentialmagnitudeoftheproblemandthecostsoffailingtoact,thisisnotimetobetimid.
· No Time to Be Timid: Addressing Infrastructure Deficits in the Western Big Six.CanadaWestFoundation,February2004.
EdmontonCityCouncil’sInfrastructureStrategy 9
TheOfficeofInfrastructurehasworkedwithCityCouncil,seniormanagers,administrativestaffandexternalstakeholdersoverthepasttwoyearstorevisetheInfrastructureStrategy.Threefundamentalsustainabilityobjectiveshaveemergedoutoftheseconsultations.
1.Balancetheallocationofavailableresourcesbetweenrehabilitationandgrowth.
2.Increaseoperationsandmaintenance,rehabilitationandreplacementfundingtocorrespondtonewassetsaddedtotheinventory.
3.Addressthebacklogofdeferredrehabilitationprojects.
Eachoftheseobjectivesdependsontheavailabilityofadequateandsustainablefunding.
EdmontonCityCouncil’sInfrastructureStrategyprovidesthedirectiontoaddresstheseobjectivesandtosupportlong-terminfrastructureinvestmentandreinvestmentstrategiesthatwillmaintaintheCity’sassetsintothefuture.
Inaddition,theStrategyalsocommitstheCitytodevelopnewtoolsthatfurtherenhancetheinfrastructuremanagementsystemacrossthecorporation.TheStrategysupportscontinuedcollaborationamongtechnicalplanners–thosewhopropose,designandbuildinfrastructureassets–andfinancialdecision-makers.
Giventhatsoundinfrastructureisessentialtosupportanycommunity’sgoalsforgrowth,economicdevelopment,andpublicsafety,ourabilitytobuildandproperlymaintainourinfrastructureisessentialtoensureEdmontonremainsanattractiveandcost-effectiveplacetoliveanddobusiness.
Edmonton’s leadership and innovation
EdmontonisoneofthefirstcitiesinCanadatohavecapturedacomprehensiveinventoryofitsinfrastructureassetsandtohaveimplementedarankingsystemtoevaluatethestateandconditionofexistinginfrastructureassets.BoththeFederationofCanadianMunicipalitiesandtheAlbertaUrbanMunicipalitiesAssociationareencouragingtheirmemberstodevelopaninfrastructureassetinventoryandratingsystem.
Physical condition:Theconditionofanassetthatenablesittomeetintendedservicelevels(e.g.theintegrityofadrainagesystem).
Demand/capacity:Thecapacityofaninfrastructureelementtomeetservicerequirements(e.g.theabilityofaparticularroadtohandletrafficflow).
Functionality:Theabilityofaninfrastructureelementtomeetprogramdeliveryrequirements(e.g.whetherornotarecreationfacilitymeetsuserexpectations).
TherankingsystemhelpsCityCouncilandtheAdministrationtocomparetheconditionofdisparateinfrastructureelements–roadstodrainageorparkstoinformationsystems–andimprovesthequalityofinformationusedtomakemoreinformeddecisionsandestablishpriorityprojects.
Developing solutions
10 EdmontonCityCouncil’sInfrastructureStrategy
EdmontonCityCouncil’sInfrastructureStrategyarticulatesCityCouncil’scommitmenttodevelopandmaintaintheCity’sinfrastructureassets,whichsupportthedeliveryofprogramsandservicestocitizens.
TheStrategywasfirstdevelopedinresponsetoagrowingunderstandingoftheCity’sinfrastructuregap.
Advancedmanagementtechniques,manyofwhichhavebeendevelopedinEdmontonandattractedinternationalattention,helpCityCouncilmakemoreinformeddecisionsandusescarceresourcesmoreeffectivelytoaddresschallenginginfrastructuredemands.
MoreeffectiveinfrastructureassetmanagementwillhelptheCitytoprovidecost-effectivemunicipalservices,promoteeconomicdevelopment,ensurecitizenhealthandsafety,protecttheenvironment,andsupportahighqualityoflifeforallEdmontonians.
Council’s Vision
Sustainableinfrastructure,maintainedthroughsoundfinancialpoliciesandassetmanagementpractices,willcontributetothevibrancyoftheCity’seconomy;thevitalityofitsneighbourhoods;safetyofitscitizens;protectionoftheenvironment;anditscapacitytoaccommodategrowth.
Administration’s Mandate
Toensurethatprogramstorenew,upgradeandexpandinfrastructureassetsaresustainableandsupporttheCityofEdmonton’splansandpriorities.
Guiding Principles
1.Infrastructureassetsshouldbesocially,environmentally,andeconomicallysustainable.
2.Infrastructureassetsarecriticaltoeconomicdevelopmentandqualityoflife.
3.InfrastructureprogramsshouldsupportthevaluesandobjectivescontainedinplansandprioritiesapprovedbyCityCouncil.
4.Infrastructureisacapitalinvestmentandmustberesponsiblymanaged.
5.Infrastructureassetsmustbemaintainedinaconditionthatenablesthemtoperformtheirintendedfunctions.
6.InfrastructureassetmanagementwillhelptheCitytobalancerenewal,upgradingandexpansionprograms.
Edmonton City Council’s Infrastructure Strategy
EdmontonCityCouncil’sInfrastructureStrategy 11
Goals
ThreeprimarygoalsweredevelopedtosupporttheimplementationofEdmontonCityCouncil’sInfrastructureStrategy.
Goal 1: Define needs Evaluateandreportthestateofinfrastructureassets.
Keyactionitems
1.1 Maintainanassetinventory,valuationandconditionratingsystemforallmunicipalinfrastructure.
1.2 Determinethecurrentandprojecteduseofinfrastructureassetsandrelatedcosts.
1.3 Developaprocesstoevaluatelevelsofservice.
1.4 Reportinfrastructureperformanceinthemeetingofbroadersocial,environmentalandeconomicobjectivesoftheCity.
1.5 Communicatetothepublicthescope,valueandimportanceofinvestmentininfrastructure.
Goal 2: Develop solutions Implementsustainableinfrastructureassetmanagementpractices.
Keyactionitems
2.1 Developandapplyevaluationtoolsthatenhancecorporatepoliciesandsupportinfrastructureinvestmentdecisions.
2.2 Evaluateapproachestosustainableservicedelivery.
2.3 Developalong-termfinancialstrategytosupportinvestmentinexistingandnewinfrastructure–operationsandmaintenance;renewal,upgradingandexpansion.
2.4 Encouragethebalancedallocationoflimitedinfrastructureresources.
2.5 Researchinfrastructuremanagementandservicedeliverybestpractices.
Goal �: Secure funding Ensureadequatefiscaltoolsandresourcestofundinfrastructureassets.
Keyactionitems
3.1 Pursuealternativesourcesofrevenue.
3.2 Reviewsharedservicedeliveryandcost/revenue-sharingmechanismswithintheCapitalregion.
3.3 Encourageeffectivecoordinationwithotherserviceproviders(powerandwater,cable,schoolboards,etc.).
3.4 Collaborateonkeyinvestmentsbyotherordersofgovernment,institutionalstakeholders(UniversityofAlberta,GrantMacEwan,NAIT,CapitalHealthAuthority,etc.),thedevelopmentindustryandnon-governmentalorganizations.
12 EdmontonCityCouncil’sInfrastructureStrategy
Long-Term Tactics and Activities
Thetactics/activitiesandtheiranticipatedoutcomesassociatedwiththeGoalsoftheInfrastructureStrategy2006aredescribedinthefollowingsectionandaretobeundertakenbytheAdministrationasawhole.
KEY ACTION ITEMS TACTICS AND ACTIVITIES OUTCOMES
1.1 Maintain an inventory, valuation and condition rating system for municipal infrastructure.
· Acquirebuy-infromnecessarypartners.
· Involvedepartmentsindevelopmentandapplicationofinventoryandratingsystem.
· Establishaprocesstomaintain,updateandreportinventoryannually.
· Addressthebasicelementsofassetmanagement.
Aqualityinfrastructureassetmanagementinventorythatwillprovidedecision-makerswithaccurateanddetailedinformationaboutthestateandconditionofinfrastructureassets.
1.2 Determine the current and projected use of infrastructure assets and related costs.
· Analyzegrowthscenarios.
· Assessandprojectfutureinfrastructureneeds.
Currentandprojecteduseofinfrastructurethatwillfacilitateplanningforfutureinvestmentandreinvestmentininfrastructure.
1.� Develop a process to evaluate levels of service.
· Identifycurrentservicelevels.
· Linkservicelevelsanddeliverycoststoinfrastructurerequirements.
· ReviewandconfirmservicelevelswithcitizensandCityCouncil.
· Developsystemofimplementingandapplyinglevelsofservice.
Servicelevelsthatproducesustainableinfrastructureandmeetcitizens’needs.
1.� Report infrastructure performance in the meeting of broader social, economic and environmental objectives of the City.
· Determinecriteriaandestablishperformanceindicators.
· Measureperformance.
· Estimatesocial,economicandenvironmentalimplicationsofinfrastructure.
· Benchmarkperformancewithothermunicipalities.
IndicatorsthatmeasureperformanceofinfrastructureassetsinsupportofCity’splansandpriorities.
1.5 Communicate to the public the scope, value and importance of investment in infrastructure.
· Coordinateaunifiedcorporatevoice.
· Developandimplementaninfrastructurecommunicationsplan.
· Providethepublicwithanopportunitytoprovidefeedback.
IncreasedpublicawarenessandsupportoftheCity’sinfrastructureneeds.
Goal 1: Defineneeds:Evaluateandreportthestateofinfrastructureassets
EdmontonCityCouncil’sInfrastructureStrategy 1�
KEY ACTION ITEMS TACTICS AND ACTIVITIES OUTCOMES
2.1 Develop and apply evaluation tools that enhance corporate policies and support infrastructure investment decisions.
· Involvedepartmentsindevelopmentandapplicationofevaluationtools.
· Acquirebuy-infromdepartmentsandseniormanagement.
· Applytoolssuchaslifecyclecosting,riskassessment,returnoninvestment,andbusinesscasemodels.
· Promoteconsistentcorporate-wideuseoftools.
· Conducttrainingsessionsonuseandapplicabilityoftools.
· Providealiaisontosupportdepartmentsintheuseoftools.
· Innovativeevaluationtoolsthatfacilitateinformedinfrastructuremanagementdecision-making.
· Techniquesthatquantifysocial,economicandenvironmentalimpacts.
2.2 Evaluate approaches to sustainable service delivery.
· Identifyandevaluatemethodsofservicedelivery.
· AssessfeasibilityofimplementingbestpracticesintheCityofEdmonton.
· Reportfindingsandmakerecommendations.
· Facilitatedepartmentinformationandresourcesharing.
· Exploremethodstoincreaseinterdepartmentalsynergy.
· Recommendationstoimproveservicedelivery.
· Strongerworkingrelationshipbetweendepartmentsforeffectiveinfrastructuremanagement.
2.� Develop a long-term financial strategy to support investment in existing and new infrastructure – operations and maintenance; renewal, upgrading and expansion.
· Determinelong-terminfrastructureinvestmentandreinvestmentneeds.
· Determinecurrentandpotentialsourcesofrevenue.
· Developasustainablelong-termcorporatefinancialstrategyforinfrastructure.
· Strategythatwillidentifymeasurestoensuresustainablelong-terminvestmentininfrastructure.
2.� Encourage the balanced allocation of limited infrastructure resources.
· Determinerenewal,upgradingandexpansionneeds.
· Determineimplicationsonlevelsofservice.
· Determinecriteriaforbalancedallocationofresources.
· Identifyinvestmentpriorities.
· Guidelinesforabalancedallocationofresources.
2.5 Research infrastructure management and service delivery best practices.
· Participateinprovincial,nationalandinternationalorganizations.
· Developallianceswithothermunicipalities.
· Networkwithresearchinstitutesandothergovernmentagencies.
· EstablishEdmontonasacredibleauthorityoninfrastructureissues.
· Adoptionofbestpracticesandnewtechnologiesforbetterinfrastructuremanagement.
Goal 2: Developsolutions:Implementsustainableinfrastructureassetmanagementpractices
1� EdmontonCityCouncil’sInfrastructureStrategy
KEY ACTION ITEMS TACTICS AND ACTIVITIES OUTCOMES
�.1 Pursue alternative sources of revenue. · Identifyandevaluateappropriatenessofpotentialrevenuegeneratingoptions.
· Evaluateandmonitortheuseofdebt.
· Clarifyrolesandresponsibilities–andassociatedresourcerequirements–withtheotherordersofgovernment.
· Pursuelegislativechangetograntmunicipalitiestheflexibilitytogeneratenewrevenuesources.
· Recommendationsforviablealternativesourcesofrevenue.
· Equitablepositionsamongallordersofgovernmenttosharecostsofinfrastructure.
· Increasedmunicipalcapacitytoinvestininfrastructure.
�.2 Review shared service delivery and cost/revenue-sharing mechanisms within the Capital region.
· DevelopalliancesintheCapitalregiontobenefitfromsharedservicesandbestpractices.
· Establishinter-municipalcommitteetosharebestpracticesamongmunicipalitiesandassessbenefitsofsharedservicesarrangementsintheCapitalregion.
· Implementsharedserviceinitiatives,asappropriate.
· DefinedresponsibilitieswithintheCapitalregionthatcanbesharedandmutuallybeneficial.
�.� Encourage effective coordination with other service providers (power and water, cable, school boards, etc.).
· Networkwithotherinfrastructure/serviceproviders.
· Developmechanismsforacoordinatedapproachwithotherprovidersofinfrastructure.
· Cooperationamongotherinfrastructure/serviceproviderstooptimizeinfrastructureinvestment.
�.� Collaborate on key investments by other orders of government, institutional stakeholders (University of Alberta, Grant MacEwan, NAIT, Capital Health Authority, etc.), the development industry and nongovernmental organizations.
· IdentifykeyinvestmentsintheCity.
· Exploreopportunitiesforcollaboration.
· Collaborationwithexternalstakeholderstooptimizeinfrastructureinvestmentopportunities.
Goal �: Securefunding:Ensureadequatefiscaltoolsandresourcestofundinfrastructureassets
EdmontonCityCouncil’sInfrastructureStrategy 15
Appendix A: Infrastructureassetmanagementdefinitions
Asset:Ausefulorvaluableresourcewiththeintendedpurposeofprovidingabenefitorservice.
Asset management:Anintegratedapproachinvolvingplanning,engineeringandfinancetoeffectivelymanageexistingandnewmunicipalinfrastructuretomaximizebenefits,reduceriskandprovidesatisfactorylevelsofservicetolocalusersandcitizens.
Best practices:State-of-the-artmethodologiesortechnologiesformunicipalinfrastructureplanning,design,construction,management,assessment,maintenanceand
rehabilitationthatconsiderlocaleconomic,environmentalandsocialfactors.
Contributed Assets:Assetsthathavebeenconstructedandfundedbydevelopersorotherpartnersanduponcompletiontransferredtocityownership.
Expansion:Investmentinnewassetsdesignedtoextendthesimilarstandardandtypeofservicetoagreaternumberofusers,e.g.,extendingadrainageorroadnetwork.
Infrastructure:Thephysicalassetsdevelopedandusedbyamunicipalitytosupportits
socialandeconomicactivities.TheCityofEdmonton’sinfrastructureinventoryincludessuchdiverseassetsasdrainage,roadsandright-of-wayinfrastructure,parksandgreenspaces,buildings,fleetvehicles,LRTandtransitfacilities,buildings,trafficcontrolinfrastructure,recreationfacilities,computernetworks,affordablehousingandlibraryresources.
Infrastructure gap:Thedifferencebetweenthecapitalneedsandfinancingcapabilities.
Level of service:Acompositeindicatorthatreflectsthesocialandeconomicgoalsofthecommunityandmayincludeanyofthefollowingparameters:safety,customersatisfaction,quality,quantity,capacity,reliability,responsiveness,environmentalacceptability,costandavailability.
Life cycle costing:Amethodofexpressingcostsinwhichbothcapitalcostsandoperationsandmaintenancecostsareconsideredovertheexpectedservicelifeofanasset.
1� EdmontonCityCouncil’sInfrastructureStrategy
Maintenance:Thesetofactivitiesrequiredtokeepacomponent,system,infrastructureassetorfacilityfunctioningasitwasoriginallydesignedandconstructed.Maintenancereferstoallactionsnecessaryforretaininganassetasnearaspossibletoitoriginalcondition,includingrepairbutexcludingrenewal(rehabilitationorreplacement).
· Repair: Theactionofrestoringacomponent,system,infrastructureasset,orfacilitytoitsformerconditionafterfailureordamage.Repairsdonotextendassetlifeorexpandcapacityanddonotincreaseorimprovefunctionality.
Operations:Thesetofon-goingactivitiesandexpensesthatallowtheuseofanassetforitsintendedfunction.Operationsrefertotheuseofanassetthatconsumesresourcessuchasmanpower,energy,chemicalsandmaterials.
· Operations (Asset): Thesetofon-goingactivitiesthatallowtheuseoftheassetforitsintendedfunction.
· Operations (Service delivery):Thesetofactivitiesandresourcesrequiredtodelivertheserviceorprogramrelatedtotheuseoftheinfrastructureasset.
Renewal:Investmentinexistinginfrastructuretorestoretoitsformerconditionandmayextenditsservicelife,whichmayincludereplacementofindividualcomponentsastheyageorbecomeobsolete.Capitalinvestmentinrenewalextendstheperiodofservicepotentialbutdoesnotchangethereplacementvalue,andsodoesnotincreasethesizeoftheinfrastructureassetportfolio.
· Rehabilitation:Theactionofrestoringacomponent,system,infrastructureasset,orfacilitytoaformerconditionorstatus.
· Replacement:Theactionofreplacingacomponent,system,infrastructureassetorfacility.
Replacement value:Thecostoftotalreplacementofanexistingassetintoday’sdollars.
Upgrade:Investmentinaddedorenhancedcomponentstoexistinginfrastructureassetsdesignedtoimprovethetypeofserviceprovidedtoexistingratepayers.Upgradinggenerallyprolongstheasset’sservicelifeorimprovesitsfunctionality,andmaysometimesbetheresultofbuildingcodechanges,newregulations,adjustedservicelevels,ortechnologyimprovements.
User-pay:Feeschargedspecificallytotheusersofaservicebasedontheuser’sconsumptionoforrelianceontheservice.
Utility:Aservicethatoperatesonaself-supportingandcost-recoverybasis.
References
AccountingforInfrastructureinthePublicSector,CanadianInstituteofCharteredAccountants.Toronto:CanadianInstituteofCharteredAccountants,2002.
Decision-MakingandInvestmentPlanning:PlanningandDefiningMunicipalInfrastructureNeeds.NationalGuidetoSustainableMunicipalInfrastructure(InfraGuide).Ottawa:NationalResearchCouncilandFederationofCanadianMuncipalities,2002.
InternationalInfrastructureManagementManual.Australia/NewZealandEdition.Version2.0.Sydney,Australia:2002.
For more information, contact:
City of Edmonton Office of Infrastructure Phone: (��0) �9�-2�9� Website: www.edmonton.ca/infrastructure
March2006
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