TOWN OF PENETANGUISHENE ASSET MANAGEMENT PLAN

Transcription

1 TOWN OF PENETANGUISHENE ASSET MANAGEMENT PLAN 2013

2 Contents Executive Summary Introduction... 6 Provincial Commitment to Infrastructure... 6 Town Of Penetanguishene s etanguishene s Commitment to Asset Management... 6 Scope of the Asset Management Plan... 7 Asset Management in Practice State of Infrastructure... 8 Asset Class: Roadways Infrastructure... 8 Asset Class: Roads: Sidewalks Asset Class: Sanitary Network Asset Class: Storm Infrastructure Asset Class: Water Distribution Asset Class: Buildings Asset Class: Fleet Level of Service Introduction Asset Class: Roads Asset Subclass: Roads - Asphalt Asset Subclass: Roads Gravel Asset Class: Signs Asset Class: Sanitary Network Asset: Mains Asset: Manholes Asset: Treatment Facilities Asset: Lift Stations Asset Class: Storm Network Asset: Storm Mains and Inlets Asset: Road Crossing Culverts Asset: Ditches... 39

3 Asset: Storm Structures Asset Class: Water Distribution Network Asset Class: Fleet Asset Class: Buildings Asset Management Strategy Condition Assessment Programs and Maintenance Strategies Asset Class: Roads Asset Class: Sanitary Network Asset Class: Storm Network: Asset Class: Water Distribution Asset Class: Fleet Asset Class: Buildings Financial Strategy References Appendix Appendix A: Municipal Asset Management Policy... 53

4 Executive Summary Executive Summary Under new provincial guidelines, the Town of Penetanguishene, like the rest of Ontario municipalities is undertaking the development and implementation of an Asset Management Plan. This plan involves the creation and maintenance of asset inventories, the development of codified d condition assessment programs and financial planning based on defined maintenance/rehabilitation/renewal strategies at key moments during an asset's lifecycle. This is a large responsibility of the Town. With over $200 million in assets under management, the efficient use of infrastructure and other assets is of critical concern to the tax payer. 4

5 Executive Summary The current state of Penetanguishene's infrastructure, as observed through current asset condition assessment methods, requires an incremental annual taxation increase that begins at $1.5 million per year to maintain our infrastructure at desired levels of service as outlined in the plan. Value of Assets By Condition (age based) Our current asset condition reporting needs to be improved. Currently too many of our assets are evaluated based on age, not observed and measured condition. The result of our current assessment methods is a possibly inflated value of the incremental annual taxation estimate. In short, o Required incremental annual taxation starts at $1.5 million per year o Conclusions from age based condition for linear assets, buildings and vehicles may inflate the incremental annual taxation estimate. o Condition evaluation of infrastructure is an urgent need 5

6 Asset Management agement Plan 2013 Introduction 1. Introduction Provincial Commitment to Infrastructure Infrastructure investments are vital to strengthening the economy, creating jobs and building strong communities in which residents enjoy a high quality of life -- Bob Chiarelli, Minister of Infrastructure, Minister of Transportation In June of 2012 the Ontario Government released its ten-year infrastructure plan Building Together. Part of this plan is the development of a municipal infrastructure strategy. The strategy is founded on asset management, in particular the standardization of municipal asset management across the Province. Building Together states that any municipality seeking provincial capital funding is to prepare a detailed asset management plan and show how its proposed project fits within it. Town Of Penetanguishene s Commitment to Asset Management As a result of Building Together, Town of Penetanguishene staff began to explore how current infrastructure life cycle practices align with the newly standardized provincial asset management strategies. The following document is the result of a year s worth of research, discussion and analysis. Good decisions come from good data. Ensuring that asset inventories are as accurate as possible was our first step. Geographic Information System (GIS) databases were reviewed, updated and refined for each of our major asset classes. A Junior Asset Manager was hired with Building Together funding to review historical records and input asset attributes. Current levels of service policies were reviewed and methods of infrastructure condition assessment were reviewed. Inspection policies for asset classes are being drafted that will produce empirical data that can drive key performance indicators, helping us track asset lifecycles. Asset inventories are only half the asset management story. These inventories must be leveraged to drive capital planning through a financial strategy. To accomplish this staff reviewed asset management software packages, deciding on CityWorks Tangible Assets suite with the Capital Planning Analysis (CPA) add on. The CPA module allows staff to assess a variety of tax and asset lifecycle costing scenarios in order to fine tune our long range infrastructure plans. Town staff submitted a Municipal Asset Management Policy to council in August This document outlines a commitment to the principles of asset management, guidelines for asset management integration and practices, along with key roles for the managing, review and reporting on asset management work. See Appendix A for a copy of the policy. 6

7 Asset Management agement Plan 2013 Introduction HOW AMP WILL BE DELIVERED TO PUBLIC Scope of the Asset Management Plan The Asset Management Plan will cover the following asset classes: Roads Sidewalks Sanitary mains and manholes Storm drains and structures Watermains and hydrants Buildings Fleet Future plans include the further refinement of asset management of sanitary pumping equipment and treatment facilities and water valves. Asset Management in Practice Asset management takes place through a multi-pronged approach. As mentioned the creation of comprehensive asset inventories was our first priority. The development of sustainable condition assessment programs is now our priority. With these assessment programs in place, and a greater understanding of where our assets fall along their lifecycle, we can better plan maintenance activities to ensure that money spent on infrastructure is being properly managed. For this to occur we must strive to assess our assets in a manner gathers the information required for lifecycle analysis, and is performed in a manner that is cost effective e and sustainable. This asset lifecycle data can now be used to drive future planning. Unlike our previous emphasis on tangible capital asset accounting (PSAB), which is based on historical cost with a goal of fair financial statement presentation, asset management in practice is directed towards the future optimization of infrastructure condition and performance and the most cost beneficial delivery of services requiring those infrastructure assets. This optimization can only occur with a sound financial strategy. The final sections of this plan outline our financial plan and how it can possibly dovetail with future budget, capital planning and even Official Plan development. Our current financial strategizing involves a number of tactics such as non- infrastructure solutions, maintenance activities, and renewal and rehabilitation activities. 7

8 State of Infrastructure 2. State of Infrastructure The following section provides an overview of the asset classes considered in this Asset Management Plan and their respective inventories. Asset Class: Roadways Infrastructure Roads and sidewalks as a class make up 39% of the replacement cost of the Town s capital assets. Private roads are excluded from the inventory and analysis. What do we own? Arterial roads carry a higher level of traffic since they provide transportation connection to other municipalities. These have a higher consequence of failure (road closure) than other classes. Robert St East and West, Fuller Avenue and Main Street are the arterial roads. Collector roads connect local roads with arterial roads. Traffic is heavier than local roads and the consequence of failure is comparably higher although less than arterial roads. Collector roads in Penetanguishene include Lafontaine Rd, Champlain Rd, Poyntz St, Thompsons Rd, Edward St, and Fox St. Local roads are destination roads. Traffic is lower and consequence of failure is minor as a relatively small number of residents will be affected. The Town of Penetanguishene also maintains a number of gravel roads in the rural section of town. 8

9 State of Infrastructure What is it worth? Assets are valued at replacement value as of December 31, Values are based on the average reconstruction cost per meter for the last eight major road reconstruction projects. Unpaved (gravel) roads are not valued or scheduled at replacement as they are expected to function indefinitely in good condition with only routine annual maintenance as currently provided in the operating budget. What condition is it in? On the following graph, the green and yellow bars largely represent the state of Penetanguishene s paved roads. Unpaved roads (a minority) are all rated as good. Of those paved roads rated fair, half of the replacement value of the identified road sections belong to Main Street, Champlain Road, and Poyntz Street; these are all scheduled to be reconstructed within the Town s current capital plan. 9

10 State of Infrastructure The small, red bar at the right represents sidewalks that have outlived their expected life. As the condition of assets other than paved roads is measured by the age of the asset relative to its expected life, a critical result may be less a representation of the physical quality of the asset than the need to reevaluate the expected life of the asset class. In this case, it appears that the expected useful life of sidewalks exceeds the standard of 30 years used in other municipalities. Roadways Replacement Schedule (5 year bands) 10

11 State of Infrastructure Asset Class: Roads: Sidewalks Sidewalks - Expected Remaining Life Based on a 30 Year Life 11

12 State of Infrastructure Asset Class: Sanitary Network What do we own? Wastewater conveyance infrastructure includes sanitary sewermains, laterals, and manholes owned by the Town. Mains are subclassified by diameter as a measure of their criticality in service provision. Laterals extending from the mains to the edge of Town owned property lines are combined with sewermains for valuation. Quantities are measured in meters for mains and units for manholes. What is it worth 12

13 State of Infrastructure Financial valuation (first 3 columns) uses historical costs and depreciation assumptions. Replacement cost valuation is forward-looking and accounts for expected inflation, changes in technology and other factors. Replacement cost has been calculated as the average cost per meter of sewer main construction over eight recent, large construction projects. The average cost includes all cost associated with the projects, including ing engineering, utility relocation, curb and gutter, and all other costs associated with the projects. These unit costs will be higher than the direct costs per meter of main or individual manhole, but are more indicative of all costs associated with reconstruction. What condition is it in? Age of Wastewater Conveyance Assets Age is not a good measure of condition or remaining useful life. There are 11 sections of sanitary sewer mains in the Useful Life Expired segment of the graph above that relate to old mains (81 to 123 years old) that are informally judged to be in adequate condition. 12 manholes are in the Useful Life Expired segment, yet are not judged to be in critical condition. Condition of Waste Water Conveyance Assets Sanitary Sewers are to be inspected by camera and rated for condition over a four year cycle of the sewer flushing program for each asset class. Priorities for increased frequency inspections will be those mains which are the oldest and those with a service record that suggests gests relining or replacement may be in order. 13

14 State of Infrastructure Risk of Asset Failure / Level of Service vs. Condition Management of wastewater is one of the Town s highest priorities. Larger mains are awarded a 5 highest consequence of failure, as larger mains have more risk of larger negative outcomes, which would also affect more residents upstream of the problem. Smaller mains, rated 4 or 3, are upstream affecting fewer customers. An inventory database of infrastructure assets covered by this plan, which includes basic asset information (e.g. asset type/class, physical description, location, expected useful life, etc.) and information that will require regular updates (e.g. replacement cost, condition, performance, etc.) is in use by the Town. This database is managed through a dedicated asset management software written by CityWide Software. 14

15 State of Infrastructure Asset Class: Storm Infrastructure What do we own? Stormwater infrastructure includes storm sewermains and catchbasins owned by the Town. Mains are subclassified by diameter as a measure of their criticality in service provision. Quantities are measured in meters for mains and units for catchbasins. What is it worth? Financial valuation (first 3 columns of the chart on the next page) uses historical costs and depreciation assumptions. Replacement cost valuation is forward-looking and accounts for expected inflation, changes in technology and other factors. Replacement cost has been calculated as the average cost per meter of sewer main construction over eight recent, large construction projects. The average cost 15

16 State of Infrastructure includes all cost associated with the projects, including engineering, utility relocation, curb and gutter, and all other costs associated with the projects. These unit costs will be higher than the direct costs per meter of main or individual manhole, but are more indicative of all costs associated with reconstruction. Age of Stormwater Assets 16

17 State of Infrastructure What condition is it In? Age is not a good measure of condition or remaining useful life. There are 55 sections of storm sewermains in the Useful Life Expired segment of the graph above that relate to old mains (many that are 88 or 113 years old) that are informally judged to be in adequate condition. 48 manholes are in the Useful Life Expired segment, yet are not judged to be in critical condition. Condition of Storm Water Conveyance Assets Storm Sewers are to be inspected by camera and rated for condition over the four year cycle of the sewer flushing program for each asset class. Priorities for increased frequency inspections will be those mains which are the oldest and those with a service record that suggests relining or replacement may be in order. 17

18 State of Infrastructure Risk of Asset Failure / Level of Service vs. Condition Management of storm water is one of the Town s medium priorities (less than drinking water, equivalent to roads). Larger mains are awarded a 4 highest consequence of failure, as larger mains have more risk of larger negative outcomes, which would also affect more residents upstream of the problem. Smaller mains, rated 3 or 2, are upstream mains were failure would result in affecting fewer customers. An inventory database of infrastructure assets covered by this plan, which includes basic asset information (e.g. asset type/class, physical description, location, expected useful life, etc.) and information that will require regular updates (e.g. replacement cost, condition, performance, etc.) is in use by the Town. This database is managed through a dedicated asset management software written by CityWide Software. 18

19 State of Infrastructure Asset Class: Water Distribution What do we own? Drinking Water Distribution infrastructure includes watermains and service lines, hydrants, and water meters owned by the Town. The scope of the current Asset Management Plan extends only to watermains and hydrants. Watermains ains are subclassified by diameter as a measure of their criticality in service provision. Water services from water mains to property lines on Town property are combined with watermains for valuation. Water meters are pooled in the Town s records and are due for replacement in What is it Worth? Financial valuation (first 3 columns) uses historical costs and depreciation assumptions. Replacement cost valuation is forward-looking and accounts for expected inflation, changes in technology and other factors. Replacement cost has been calculated as the average cost per meter of water main construction over eight recent, large construction projects. The average cost includes all cost associated 19

20 State of Infrastructure with the projects, including engineering, utility relocation, curb and gutter, and all other costs associated with the projects. These unit costs will be higher than the direct costs per meter of main or individual hydrant, but are more indicative of all costs associated with reconstruction. What Condition is it In? Age of Water Distribution Assets Age is not a good measure of condition or remaining useful life. There are 54 sections of water mains in the Useful Life Expired segment of the graph above that relate to old mains (63 to 112 years old) that informally judged to be in adequate condition. 55 hydrants are in the Useful Life Expired segment, yet are not judged to be in critical condition. Condition of Roads Condition of hydrants is well summarized by the Chief Water Operator: Our hydrants are maintained to Ontario Fire Code standards, which is good to excellent. There may be the odd unit that s been damaged but that's why they're checked annually, at minimum. The condition of watermains are difficult to assess economically as mains in service contain water that is under pressure. Over the next two years processes will be implemented to use features of the new water meter equipment to identify significant leaks which in turn are indicators of poor condition of 20

21 State of Infrastructure watermains. Lining or replacement of mains in poor condition will not only lessen the risk of main breaks and loss of service to residents, but improve the efficiency of the water delivery system by reducing wastage. Risk of Asset Failure / Level of Service vs. Condition Clean and safe drinking water is one of the Town s highest priorities. Larger mains are awarded a 5 highest consequence of failure, as larger mains are key to providing water service to a greater proportion of the Town. Smaller mains, rated 4 or 3, are upstream affecting fewer customers. An inventory database of infrastructure assets covered by this plan, which includes basic asset information (e.g. asset type/class, physical description, location, expected useful life, etc.) and information that will require regular updates (e.g. replacement cost, condition, performance, etc.) is in use by the Town. This database is managed through a dedicated asset management software written by CityWide Software. 21

22 State of Infrastructure Asset Class: Buildings What do we own? Sometimes Infrastructure may be thought of only in terms of linear assets such as roads or water mains. However, other assets such as buildings, vehicles, docks, and equipment form part of the capital budget and must be considered part of the entire network of capital assets that are required to deliver municipal services. The buildings summarized below range from picnic shelters and pump houses to the Town Hall, Fire Hall and Arena. Some of the larger facilities have been divided into components for replacement purposes, which makes the asset count higher than one might expect. Estimated life is based on construction type 50 years for brick or block, 25 for frame, and 10 years for attached equipment components. Financial valuation (first 3 columns of the chart on the next page) uses historical costs and depreciation assumptions. Replacement cost valuation is forward-looking and accounts for expected inflation, changes in technology and other factors. Replacement cost has been calculated using Marshall Swift Building Valuation software. This is the method our insurers use to test replacement cost. 22

23 State of Infrastructure What is it worth? Age of Buildings Assets What Condition is it in? Age is not a good measure of condition or remaining useful life. With good preventative maintenance, most of the inventoried buildings can exceed their estimated life. There is still work to be done to separate the buildings into shell, roof, interior components, environmental system, etc. Componentization would allow the Town to anticipate replacement in shorter lived components while stretching out the estimated life of the shell. Also, a continued emphasis on measuring the condition of building components and coordinated reviews of all roofing, environmental systems, and elevators (as examples), would give a sharper picture of the financial commitments associated with our buildings and timing of key maintenance and replacements. That said, the age of the two principal Public Works structures and the Arena does raise the question at which point does the cost of anticipated major maintenance overbalance the savings of deferring replacement. 23

24 State of Infrastructure Condition of Building Assets Risk of Asset Failure / Level of Service vs. Condition As different buildings are key to different services, the measure of level of service comes into play. Buildings associated with fire protection and drinking water provision rank much higher in consequence of failure. Although they are ranked lower in consequence of failure, there is a significant number and value of Recreation buildings that have exceeded their service life. Evaluation of building condition should address these older buildings. An inventory database of infrastructure assets covered by this plan, which includes basic asset information (e.g. asset type/class, physical description, location, expected useful life, etc.) and information that will require regular updates (e.g. replacement cost, condition, performance, etc.) is in use by the Town. This database is managed through a dedicated asset management software written by CityWide Software. 24

25 State of Infrastructure Asset Class: Fleet Much like buildings, vehicle fleets are municipal assets whose lifecycle costs, maintenance activities and replacement strategies cab be governed by an asset management plan. The vehicles summarized below range from passenger vehicles and pickup trucks to snow plows and the pumper and aerial truck. The division between large and small is $100,000 replacement value, which is used by our insurers. At present, other rolling stock, such as loaders, trackless sidewalk vehicles, street sweeper and Arena ice surface are classed as equipment rather than vehicles. Vehicle lives are currently set at 10 years, except those of the fire department which guided by xxxxx Financial valuation (first 3 columns of the chart on the next page) uses historical costs and depreciation assumptions. Replacement cost valuation is forward-looking oking and accounts for expected inflation, changes in technology and other factors. Replacement cost has been calculated using historic cost increased by forecast Consumer Price Index to expected replacement date. 25

26 State of Infrastructure Age of Vehicles Age is not a good measure of condition or remaining useful life. With good preventative maintenance, most of the inventoried buildings can exceed their estimated life. The large proportion of vehicles that are in service beyond their expiration of their useful life begs the question of whether the vehicles should be on the road or whether the 10 year life expectancy is too short. Condition of vehicles and any adjustment to service life could be supported by summary of maintenance records maintained ained by the Town mechanic. Condition of Vehicles 26

27 State of Infrastructure Risk of Asset Failure / Level of Service vs. Condition As different vehicles are key to different services, the measure of level of service comes into play. Buildings associated with fire protection and drinking water provision rank much higher in consequence of failure. The most critical vehicle replacement (top right corner, red), based on age, is the Fire Rescue truck. However, many vehicles, large and small, are reaching the end of their lives. Several were included in the 2014 capital budget. An inventory database of infrastructure assets covered by this plan, which includes basic asset information (e.g. asset type/class, physical description, location, expected useful life, etc.) and information that will require regular updates (e.g. replacement cost, condition, performance, etc.) is in use by the Town. This database is managed through a dedicated asset management software written by CityWide Software. 27

28 Level of Service 3. Level of Service Introduction Level of Services Policies are fundamental to an asset management plan. Organized by asset class, level of service policies outline key performance indicators along with maintenance, rehabilitation and replacement strategies for each asset. They also provide level of service position statements within a document that will evolve as needs and priorities change with time. Some of our asset triggers those events that signal a need for maintenance, rehabilitation or replacement, are anecdotal and not based on metrics. Our long term goal is to move away from a model where replacement priority is a reaction to failure, and towards one where end of asset lives are anticipated and planned for. As technology evolves and our asset assessment programs become more mature, the Town of Penetanguishene should explore metric based assessments for all asset classes. Asset Class: Roads Introduction The Town of Penetanguishene s road network consists of the following asset sub-classes: asphalt surface; gravel surface. Both road classes further are categorized, based on their criticality to the transportation network, as arterial, collector and local. Asset Subclass: Roads - Asphalt Key Performance Indicators and Criticality Assessment The Town of Penetanguishene rates its asphalt surfaces based on criteria set out in the Ministry of Transportation s publication SP-024 manual for condition rating of flexible pavements distress manifestations.. Multiple factors are tabulated in a spreadsheet to generate a PCR (Pavement Condition Rating) between 0.0 and The following PCR scores indicate desirable levels of service for each of the Town of Penetanguishene s road classes: (PENCLASS field) Desired PCR Marginal PCR Critical PCR Arterial Collector

29 Level of Service Rural Traffic counts are necessary to understand how the road network is being used. A traffic counting program should be established to ensure that roads are properly classified. Asset Inventory and Condition Assessment Methodology Inventory Town of Penetanguishene Engineering uses road network segmentation as provided by the County of Simcoe in the form of the Single Line Road Network (SLRN) dataset. The following data a is managed and joined to the SLRN by Penetanguishene GIS staff: FIELD VALUES SURFACE (asphalt, gravel) LANES (1,2,3,4) URBorRUR (urban,rural) PENCLASS (local,collector,arterial) Assessment Methodology Pavement Condition Assessments are performed by trained Roads Division staff. Assessment frequency is determined by road classification category and is outlined in the following table: PENCLASS PCR Assessment Frequency Arterial Once every 2 years Collector Once every 4 years Local Once every 4 years Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to asphalt surface roads: Perform scheduled pavement condition assessments. Issue an annual position ion statement outlining strategies to address arterial segments with marginal or lower PCR scores. 29

30 Level of Service Issue an annual strategy matrix that classifies collector and local roads with marginal or lower PCR scores as candidates for reconstruction, resurfacing or maintenance along with the projected year of treatment. Asset Subclass: Roads Gravel Gravel roads are graded once yearly. Throughout the year they are visually inspected for deteriorating conditions. Deficiencies are noted, tabulated and problem areas are identified. Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to gravel surface roads: Perform twice annual inspections on all gravel segments. Perform maintenance grading once per year to all gravel roads with repeat treatments as required. 30

31 Level of Service Asset Class: Signs Introduction There are approximately 1240 priority, regulatory, and warning signs in the Town of Penetanguishene that fall under the care of the Public Works department Key Performance Indicators and Criticality Assessment Sign condition is legislated by regulation 239/12 of the Municipal Act(Minimum Maintenance Standards for Municipal Highways) which requires that all municipalities in the Province of Ontario check that retroreflectivity values of regulatory and warning signs, and that they meet requirements found in the Ontario Traffic Manual on an annual basis. Asset Inventory and Condition Assessment Methodology Traditionally the Public Works department has relied on contractors to perform the annual retroreflectivity analysis. Purchasing our own retroreflectivity gun is cost-prohibitive and the additional issues of keeping the equipment calibrated, operators trained and scheduling time away from other tasks to perform the analysis have all been factors in the decision to outsource. Inventory Part of the retroreflectivity contract is the production of a comprehensive sign and post inventory that meets the public works department s aim of maintaining accurate asset inventories. This database is updated annually and is determined by the technological and assessment capabilities of the inventory contractor. Upon receipt of the retroreflectivity assessment results, our response time to replace failed signs is legislated as follows: Class of Highway Time 21 days 30 days 30 days Note: Penetanguishene has only Class 3,4,5 roads as per Municipal Act guidelines. 31

32 Level of Service Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to signs: Perform annual retroreflectivity and condition assessment as outlined by relevant legislation. Replace all signs identified as having failed retroreflectivity ty guidelines within the legislated guidelines. 32

33 Level of Service Asset Class: Sanitary Network Introduction The Town of Penetanguishene s Sanitary Network consists of sanitary mains, manhole structures, lift stations and two treatment facilities. Asset: Mains Key Performance Indicators and Criticality Assessment Sanitary mains empty into one of two treatment facilities in Penetanguishene. Because of the high costs associated with treating wastewater, it is imperative that we minimize the amount of stormwater and groundwater infiltration in the sanitary network. Key Performance indicators for the network include Percentage of combined sewers across the network Percentage of clay tile pipes in the network Number of main blockages per year Asset Inventory and Condition Assessment Methodology Inventory The sanitary main inventory contains the following information: FIELD VALUES PENID SS### DIA (diameter in mm) MATERIAL ELEVIN (elevation at pipe inlet) ELEVOUT (elevation at pipe outlet) PLANT Fox,Main STARTMH MH### STOPMH MH### DATEINSTALL (installation date) DWG ENG### ACTIVE Y,N (is pipe active in network) 33

34 Level of Service Condition Assessment Sanitary main assessment is currently reactive. Video inspections are performed when blockages occur. The establishment of a video inspection program, one that endeavours to assess a defined percentage of mains annually is advisable. A sanitary main flushing program is currently in place. It endeavours to flush each main in the network once every four years. It is advisable that a video inspection program be integrated with these maintenance activities In order to assess and quantify flow surcharges from storm events into our sanitary network a program of infiltration targeted flow testing should be established. Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to sanitary sewer mains: Work towards eliminating combined sewers and minimizing groundwater infiltration. Flush sanitary mains once every four years as scheduled by the Sewer Flushing Program. Perform video inspection on mains identified as backup risks through monitoring backup callouts. Asset: Manholes Key Performance Indicators and Criticality Assessment Sanitary manholes must be evaluated for their structural integrity so that groundwater does not infiltrate into the sanitary network. Percentage manholes that fall within the hydraulic grade line of the Town s aquifers and are susceptible to groundwater infiltration that have been inspected in the last two years. 34

35 Level of Service Asset Inventory and Condition Assessment Methodology Inventory The sanitary manhole inventory contains xxx entries and reports the following information: FIELD VALUES PENID MH### RIMELEV (elevation in meters) DIA (diameter in mm) YEARINSTALL (date) ELEVOUT (elevation at pipe outlet) SINVERT (elevation in meters) NINVERT (elevation in meters) EINVERT (elevation in meters) WINVERT (elevation in meters) DWG ENG### LWSTINV (sump elevation) Condition Assessment Sanitary manholes are assessed during the sanitary sewer flushing program. Manholes are visually inspected from the ground surface. The manhole need for repair is assessed as a yes or no, with an accompanying note identifying the nature of the issue. The following is the condition reporting table: FIELD VALUES PENID MH### NEEDCLEAN Y,N NEEDREPAIR Y,N INSPECDATE (date) CLEANDATE (date) Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to sanitary manholes: Inspect all manholes once every four years during the Sanitary Flushing Program. 35

36 Level of Service Issue annual report on manholes in need of repair with projected repair dates. Asset: Treatment Facilities To be developed Asset: Lift Stations To be developed 36

37 Level of Service Asset Class: Storm Network Introduction The Town of Penetanguishene s Storm Network consists of a number of conveyance means and structures. Storm water travels above ground by means of ditches and road crossing culverts, enters the underground system through catch basins and ditch inlets, then travels through inlets and storm mains to discharge points at headwalls, ultimately emptying into storm water management ponds or bodies of water. The storm network must remain free of debris to perform at designed levels. Leaf waste accumulates at inlet structures and catch basins become clogged by sand each year. Catch basin leads, or inlets, and mains need to be flushed and cleaned regularly. Head wall grates must remain open and free from silting at their discharge point. Asset: Storm Mains and Inlets Key Performance Indicators and Criticality Assessment Storm mains and inlets must be kept free of debris that can impede the flow of storm water to downstream network elements. Mains and inlets must be routinely assessed and monitored for sediment buildup and obstructions. Reducing backups is critical to avoid road flooding during storm events. Larger, downstream network elements whose proper operations are more critical to move storm water through the system should be emphasized in assessment programs. Asset Inventory and Condition Assessment Methodology Inventory Storm mains are inventoried using the following information: FIELD PENID MATERIAL PROFILE DIA VALUES ST### Y,N (date) 37

38 Level of Service INLETELEV (elevation at pipe inlet) OUTLETELEV (elevation at pipe outlet) SLOPE (pipe rise over run) DWG ENG### SNTYPE CURB AND GUTTER, DITCH, DRIVEWAY CULVERT,GUTTER, INLET, MAIN, ROAD CULVERT, RIPRAP (network object type) DATEINSTALL (date) Condition Assessment Storm main assessment is currently reactive. Video inspections may be performed when blockages occur. The establishment of a video inspection program, one that endeavours to assess a defined percentage of mains annually is advisable. Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to storm mains: Assess the functionality of all mains once every four years during the Storm Network Flushing Program. Asset: Road Crossing Culverts Key Performance Indicators and Criticality Assessment Road crossing culverts must be kept free of debris that can impede the flow of storm water to downstream network elements. These culverts must also be monitored for sediment buildup. Culverts can be visually inspected to assess current operation levels. Asset Inventory and Condition Assessment Methodology Inventory FIELD PENID DIA SNTYPE VALUES CL### (mm) ROAD CULVERT 38

39 Level of Service Condition Assessment Road crossing culverts are assessed during the annual culvert and ditching program. Culverts are visually inspected. The culvert need for repair is assessed as a yes or no, The following is the condition reporting table: FIELD VALUES PENID MH### NEEDCLEAN Y,N NEEDREPAIR Y,N INSPECDATE (date) CLEANDATE (date) Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to road crossing culverts: Inspect all road crossing culverts once annually and perform maintenance as required. Asset: Ditches Key Performance Indicators and Criticality Assessment Ditches must be kept free of debris that can impede the flow of storm water to downstream network elements. These culverts must also be monitored for sediment buildup. Ditches can be visually inspected to assess current operation levels. Elevations of ditch inverts and obverts should be collected to ensure the network is operating as designed Asset Inventory and Condition Assessment Methodology Inventory PENID MATERIAL PROFILE INLETELEV DI### (LAWN, GRAVEL, WILD, ASPHALT) (SHALLOW, REGULAR, HALF, STEEP, NONE) (elevation in meters) 39

40 Level of Service OUTLETELEV (elevation in meters) SLOPE (%) SNTYPE DITCH Condition Assessment Ditches are assessed during the annual culvert and ditching program. Ditches are visually inspected. The need for cleaning is assessed as a yes or no. The following is the condition reporting table: FIELD VALUES PENID DI### NEEDCLEAN Y,N INSPECDATE (date) CLEANDATE (date) Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to storm ditches: Inspect ditch network annually. Perform maintenance as scheduled and outlined in the Ditching Program. Asset: Storm Structures Key Performance Indicators and Criticality Assessment Storm structures provide an inlet point for water into the storm water network. It is vital that catch basin and ditch inlet openings remain free of debris, particularly at during the spring and fall. Many storm structures contain sumps, traps for sediment at the bottom of the structures. It is necessary to ensure that these sumps are routinely cleaned to prevent sediment from entering the storm pipe network 40

41 Level of Service Asset Inventory and Condition Assessment Methodology Inventory Storm structures are inventoried using the following information: FIELD PENID STRCTYPE VALUES ST### CB, DBCB, CBMH, DI, HW (catch basin, double catch basin, catch basin manhole, ditch inlet, headwall) ENG### DWG YEARINSTALL (date) DEPTH (depth in meters) Condition Assessment Storm structures are assessed during the storm network flushing program. Structures are visually inspected from the ground surface. The structure s need for repair is assessed as a yes or no, with an accompanying note identifying the nature of the issue. The following is the condition reporting table: FIELD VALUES PENID ST### NEEDCLEAN Y,N NEEDREPAIR Y,N INSPECDATE (date) CLEANDATE (date) Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to storm mains: Inspect all storm structures once every four years during the Storm Network Flushing Program. 41

42 Level of Service Asset set Class: Water Distribution Network Key Performance Indicators and Criticality Assessment Asset Inventory and Condition Assessment Methodology Inventory A detailed model of the Town of Penetanguishene s water distribution network is maintained in the GIS and WaterGEMS. Insert Tables Condition Assessment Water distribution network assessment is currently age based. Video inspections are performed when blockages occur. The establishment of a video inspection program, one that endeavours to assess a defined ed percentage of mains annually is advisable. Watermain breaks are tracked in the Town s work management system and analyzed for areas with increased risk of failure. Level of Service Policy Statement The Town of Penetanguishene endeavours through its asset management activities to perform the following with respect to storm mains: To assist with replacing the aging infrastructure, Town of Penetanguishene management will review the distribution system average watermain age and endeavor to maintain an average age of less than 40 years old. The percentage of watermains over 50 years old will be considered and the Town will strive to maintain less than 20% of our watermains over 50 years old. 42

43 Level of Service Asset Class: Fleet To be developed at a future time Asset Class: Buildings To be developed at a future time. 43

44 Asset Management Strategy 4. Asset Management Strategy Asset management strategies outline guidelines for preventative maintenance activities throughout the life of an asset. Preventative maintenance forestalls the asset replacement date allowing incremental and scheduled spending to replace major and unplanned replacement costs due to sudden asset failure. The follow sections outline assessment strategies and preventative maintenance procedures for each of our asset classes Condition Assessment Programs and Maintenance Strategies Asset Class: Roads The Penetanguishene road network was assessed in 2005 and 2010, on a planned five year cycle. Past inspections were performed by consultants and on a project basis by Town staff. Our current strategy is to shorten the assessment interval to three years by making condition assessment a part of regularly scheduled staff activities. Assessment is performed using the Ministry of Transportation's rtation's PCR (Pavement Condition Rating) as outlined in their publication SP-024 manual for condition rating of flexible pavements--distress manifestations. As data is collected it is stored in the GIS and uploaded to City Wide TA to drive decision making. Goals for pavement network conditions are outlined in level of service policies. As road network segments are deemed deficient, the Town of Penetanguishene employs the following maintenance measures: Procedure Reclamate Crack Sealing Microsurfacing Resurfacing Outcome and Expected Lifespan Applied on a 5 year cycle to maintain roads in excellent condition Performed on roads in good condition to expand lifespan by XXX? Performed on roads in good to fair condition to extend life by 7 years Resets asset life to new condition with a 50 year lifespan (provided above maintenance activities are performed as scheduled) 44

45 Asset Management Strategy Asset Class: Sanitary Network The asset management strategy for the sanitary network is currently in transition. Historically, sanitary main assessment has been reactive. Video inspections were performed and continue to be-- when blockages occur. Deficiencies are identified from the videos and are dealt with as required. This reactive condition assessment will be supplemented, beginning in 2014, with a video inspection component of our sewer flushing program. The sewer flushing program is a four year cycle of scheduled sewer flushing activity that will see Town staff visit every network component at least once every four years. Critical network elements are scheduled to be maintained on a shorter interval. Beginning 2014 it is our intention to perform a video inspection on each network element as it is being flushed. Current maintenance strategies consist of replacing failed network elements once failure occurs. With recent experience in Penetanguishene applying a polymer relining to network elements at risk of critical failure, the Town now intends to use video inspection to identify at-risk elements and promote them as candidates for preventative relining. Along with video inspection the Town intends to continue modeling network flows using software in order to establish if network elements are properly sized for their field usage. Asset Class: Storm Network: Like our sanitary network the asset management strategy for the sanitary network is currently in transition. Historically, storm mains assessment has been reactive. Obvious risk of pipe failure has lead crews to swiftly replace assets on an as needed basis. This reactive condition assessment will be supplemented, beginning in 2014, with a video inspection component of our storm sewer cleaning program. The storm sewer cleaning ng program is a four year cycle of scheduled storm network flushing activity that will see Town staff clean every network component at least once every four years. Critical network elements are scheduled to be maintained on a shorter interval. Beginning 2014 it is our intention to perform a video inspection on critical network elements when being cleaned. Current maintenance strategies consist of replacing failed network elements once failure occurs. With recent experience in Penetanguishene applying a polymer relining to network elements at risk of critical failure, the Town now intends to use video inspection to identify at-risk elements and promote them as candidates for preventative relining. 45

46 Asset Management Strategy Asset Class: Water Distribution The current strategy for water distribution asset assessment and inventory is predominantly age based. This is due to the difficulties inherent in assessing in-service water distribution network elements. Network elements can be visually assessed with video inspection, but this is cost prohibitive and is only recommended where the impact of element failure is high-risk. Because of this asset condition assessment is mostly age based and maintenance to watermains is reactive upon failure. The Town does implement valve turning and hydrant maintenance programs, although this regular maintenance is necessary to guarantee asset functionality and cannot be considered preventative maintenance. Beginning 2014 a program will be instituted to upgrade existing water meters. The new meters will have an increased level of accuracy and ability to communicate that will greatly assist in leak detection. This will allow staff to more quickly identify and maintain compromised network elements. Asset Class: Fleet Vehicle conditions are closely assessed and monitored by staff since most maintenance is done by the Town Mechanic. Asset Class: Buildings To be developed at a future time. 46

47 Error! Reference source not found. 5. Financial Strategy Having a financial plan is critical for putting an asset management plan into action. This plan places considerable effort into integrating asset management planning with financial planning and budgeting, in that current and capital budgets are mapped against the asset management strategies, especially renewal and rehabilitation and replacement activities. As has been pointed out throughout the document, some asset management classes are well adapted to the recommended approach. By attempting to cover all assets and activities within the Town s capital budget in a comprehensive and fully integrated manner, some will be well described by the structure of the asset management plan, while other classes ( below threshold e.g.) are less so. The major subdivisions of asset management strategies follow with commentary as how they are being and will be reflected in the Town s budgeting process: shows yearly expenditure forecasts broken down by: o Non-infrastructure solutions - actions or policies that can lower costs or extend asset life (e.g., better integrated infrastructure planning and land use planning, demand management, insurance, process optimization, managed failures, etc.) are difficult to quantify in a long term financial plan. Detailed guidance and example as to how to implement them in a concrete and measurable way have been sorely lacking. No costs of non-infrastructure solutions is displayed. o Maintenance activities. by narrowing the focus of maintenance activities to those which optimize asset life cycle costs, there is the issue involving the gray area between asset operation and asset maintenance. E.g. The cost of fuel is purely an operating cost of vehicles and the cost of tune ups is maintenance, but for accounting purposes there is a large area of overlap that is not well defined. Most small costs relating to asset maintenance are excluded at this time. o Renewal/rehabilitation activities. While we grapple with how to measure and respond to most assets, detailed analysis in this section is restricted to paved roads. o Replacement activities despite concerns about age based condition ratings, for this iteration of the plan, o Disposal activities apply primarily to vehicles, but is not addressed in this iteration of the plan. o Expansion activities are not contemplated. Note that financial plans for water and waste water services has been previously adopted and is available 47

48 Error! Reference source not found. Replacement Activities The first graph represents all asset replacement needs under current assumptions of expected asset life and replacement at the end of service live. Each bar represents 5 years divide the y-axis to determine annual needs. Cost of replacement of Non-Water / Wastewater Projects 80 year cycle, 5 year interval Use of reserves allows better management of financial resources to needs. Smoothing out the capital replacement demonstrates that equilibrium of fully funded asset replacement is $1,509,363. However, the tallness of the left side of the graph, indicates a sizable infrastructure deficit as of today that must be dealt with first. Service Life Remaining 80 year cycle The impact of building in the reduction of the existing infrastructure deficit over the 80 year cycle in the next graph demonstrates the limit to which the past deficit can be amortized (i.e. a realistic approach must be more financially aggressive). 48

49 Error! Reference source not found. Annual financial requirement is now $1,995,269 per year. Service Life Remaining Average over 80 years The most recent draft of the Capital Plan is summarized (with minor changes to funding and reclassification of expenditures to match Asset Management Strategy classifications follows: 49

50 Error! Reference source not found. Items Under Threshold and Studies are included in the Town s capital budget, but do not fit classifications under the Asset Management Plan guidelines. In addition, Preventative Maintenance for paved roads is, on average for the past 3 years, $200,000, which is a mixture of maintenance and remediation activities designed to maximize the service life of paved roads. Average Replacement Cost Per Year This is the most telling chart in the Plan. Based on existing, standard ard expected asset lives, replacement of assets at current values would consume one third of the taxation and utility rate budgeted revenue. 50

51 Error! Reference source not found. The water and wastewater revenue budgeted for 2013 was $2,039,575, of which 43% was dedicated to asset replacement (most notably the wastewater treatment plant at Main Street.) By contrast, of $6,414,571 budgeted taxation for 2013 (excluding OPP contract), less than 17% was provided for capital asset replacement. Two points become clear, if not well defined: Condition n of assets must be assessed to guide asset replacement decisions, rather than relying on asset age alone. More annual taxation revenue is required to replace assets as replacement is required. 51

52 References References Chiarelli, Bob, Letter from the Minister of Infrastructure and Minister of Transportation Building Together: Guide for Municipal Asset Management Plans. Queen s Printer for Ontario, Pg i-iii. 52

53 Appendix Appendix Appendix A: Municipal Asset Management Policy THE CORPORATION OF THE TOWN OF PENETANGUISHENE Municipal Asset Management Policy 1. Policy Purpose Asset Management is a broad strategic framework that encompasses many disciplines and involves the entire organization. The term asset management as used in this document is defined as the application of sound technical, social and economic principles that considers present and future needs of users, and the service from the asset. Asset Management aims to leverage the lowest total lifecycle cost of ownership with appropriate re regard for required service levels that best meets the needs of the community and an understanding about an acceptable risk of failure. This policy document guides how staff and Council will interact with the Town of Penetanguishene s Asset Management Plan, a document that outlines policies and procedures regarding the inventorying of, renewal, and replacement levels for assets when considering financial planning and forecasting capital plans. To guide the organization, the following policy statements have been developed. 53