ASSET MANAGEMENT PLAN

Transcription

1 TOWNSHIP OF KING, ONTARIO ASSET MANAGEMENT PLAN September 2013 Drafted by: Subject matter leads: StraNexus Inc. Director of Finance & Treasurer Tel: Director of Engineering, Public Works & Building Manager Engineering

2 Version control Version number 1.0 Major changes Submitted by Reviewed by Approved by 1 st release of the Asset Management Plan completed for roads and bridges Director of Finance & Treasurer Director of Engineering, Public Works & Building Chief Administrative Officer Date of release (dd-mmm-yy) -Dec-2014 Township of King Asset Management Plan 1 P age

3 Table of contents 1. EXECUTIVE SUMMARY INTRODUCTION STATE OF LOCAL INFRASTRUCTURE Transportation Infrastructure Roads inventory Roads condition Roads deficit Bridges and Culverts inventory Bridges and Culvert condition Bridges and Culvert deficit SERVICE LEVELS Transportation Infrastructure ASSET MANAGEMENT STRATEGY Strategic framework Project-based activities Business-as-usual activities year roadmap FINANCIAL STRATEGY Township of King Asset Management Plan 2 P age

4 1. EXECUTIVE SUMMARY As infrastructure ages, while the Township of King continues to experience growth, it becomes essential to understand all our assets and plan on a long term basis the strategic direction, and corresponding funding models to be able to manage our assets and sure the desired service levels are being met. Assets generally fall under 5 asset classes 1 Facilities and buildings, 2 Fleet or mobile equipment, 3 Infrastructure, 4 Equipment, and 5 IT. The Township s major assets includes: roads and bridges, water distribution and wastewater collection, waste management (collection), disposal and recycling, recreation facilities, parks, and emergency services (fire). It also includes a collection of administration facilities for fire, operations, and other service departments. In addition, it includes a collection of fleet for our parks, operations and fire & emergency services. This plan incorporates the infrastructure asset class and more specifically roads, bridges and culverts. As studies for other assets are conducted, they can be added to this plan, until all 5 asset classes as stated above have been captured and can be managed on a long-term progressive manner. This plan is guided by the Township s Integrated Community Sustainability Plan a document for all decision making, including references to sustainable asset management in all four pillars of Environmental; Economic; Socio-Cultural; and Financial. The average Structural Adequacy rating for the current King Township road system was identified as 13.9 out of a maximum value of 20 as per the 2011 Roads Needs Report. A Structural Adequacy of 15.0 is reflective of a road network at approximately 69% of its as new condition which is considered acceptable. The condition of the existing road network is distributed as follows: 9.7 % with Major Rehabilitation Needs 23.7 % with Resurfacing Needs 66.6 % of roads are currently considered Adequate Township of King Asset Management Plan 3 P age

5 As per the 2011 Roads Needs Report, Bridge and Culverts structures are generally in good condition with moderate deterioration. Approximately 60% of Bridge and Culvert structures need some form of improvement of which 45-50% has a more immediate need. The difference between capital and operational cost, with similar historic funding sources led to an approximate short fall projection of $3.7M in 2014, emphasis will have to be place on financing strategies to bridge the gap. Key strategies could include but are not limited to, applying a portion of annual assessment growth to the financing of roads and bridges; extending the useful life of the assets where applicable; deferring of projects; increasing taxes; debenture financing; partnering with the region of York to perform rehabilitation work concurrently and uploading roads to the region where possible This Plan was developed with lead resources from Finance, Engineering and Public Works, and input from Information Technology, Parks, Recreation and Culture, Fire and Emergency Services, Planning, CAO, and research from other similar municipalities. Budgets were built based on current and future needs with little influence from past expenditures and with the assumptions that there were no financial constraints. Considerations were given to non-infrastructure solutions; maintenance activities; renewal/rehabilitation activities; replacement activities; disposal activities; expansion activities; procurement methods and desired service levels. Township of King Asset Management Plan 4 P age

6 2. INTRODUCTION King Township is one of the nine municipalities that make up the Regional Municipality of York. It encompasses the villages and hamlets of: Ansnorveldt, Kettleby, King City, Laskay, Lloydtown, Nobleton, Pottageville, Schomberg and Snowball. The Township is easily accessible by Highways 400, 407, 27 and 9, and is 30 minutes from Toronto s Pearson International Airport. The Township has a population that surpasses 20,000 people and is projected to grow to 35,000 people by An important asset of King Township is its strong rural economy and agricultural sector, which depends upon the Holland Marsh's deep fertile soils and rich growing season. About 60% of the Holland Marsh, also known as 'Ontario's Vegetable Basket' is found in King. The Province of Ontario requires Asset Management Plans to be completed for the priority infrastructure assets of Roads, Bridges, and Water and Wastewater Systems. The Township of King s Asset Management Plan and activities have been driven in the past by regulatory compliance, establishment of a 10-year Capital Works Program, Local Improvement Projects and the annual budget approval process. In the past these exercises have been conducted within the various asset classes and prioritization of capital works and rehabilitation programs have been conducted according to available funding from taxation, rates (water and sewer), and local improvement charges. This Plan will deliver on the Province of Ontario requirements for roads and bridges, and more importantly will be used as a reference document to support funding requests to council and provide direction to municipal staff on how best to maintain assets such that they provide the desired levels of service in a sustainable manner while managing risk at the lowest lifecycle cost. Key considerations were given to customer satisfaction, employee satisfaction, operational excellence, risk management and financial stewardship. The Plan is built over a ten year period, and it is recommended that it be updated at every Council term commencement (every four years). Township of King Asset Management Plan 5 P age

7 3. STATE OF LOCAL INFRASTRUCTURE This section discusses the current inventory and condition of assets owned by the Township of King. The inventory data was extracted from the 2012 PSAB registry and 2012 Reserve Strategy Analysis documents. The condition assessment data was obtained from the 2011 Road Needs Report, which covers roads, bridges and culverts. Asset inventory data is presented in tabular format with the headings explained below: Classification: each asset type is classified based on material or other criteria specific to the asset. Asset component: some assets are made up of different components for example Roads surface and Roads Base. Surface type: examples include gravel, surface treatment, and pavement. Length: measured in kilometers for linear assets. Quantity: number of items. Financial value: represents the depreciated value of each asset, considering its age, calculated based on the net book closing value. Replacement cost: estimate of the costs to replace the asset today, including material, labour, and all other costs necessary for the full replacement of that asset. As more information is made available about the circumstances for each asset, the replacement cost can be adjusted to reflect the cost impact. Age distribution: breakdown of the asset s age into different age ranges. The asset age was determined by subtracting the year of construction/purchase from 2012 Useful life: estimate value primarily used for accounting purposes, since the actual life of the assets could be lower or higher. It represents the full average expected lifespan from the date of installation of an asset as per PSAB, under typical in-service conditions, before it needs to be replaced. It Township of King Asset Management Plan 6 Page

8 is of importance that the useful life should not be considered in isolation of the asset condition, as an asset may have gone beyond its useful life but continues to remain structurally adequate. As more information becomes available about the condition of the asset, the useful life value can be adjusted accordingly. In this document, the useful life for each asset type was divided into appropriate ranges in order to provide a better understanding of the asset age distributions Transportation Infrastructure The Township of King s transportation infrastructure consists of linear roads, associated linear assets such as curbs and sidewalks, non-linear assets such as street lights, and transportation structures such as bridges and culverts. The component breakdown of these assets aligns with the financial reporting requirements under PSAB Roads inventory Table 1. Asset Component Roads Base (PSAB) Classification Rural Semi-urban Financial Replacement Age distribution (km) Surface Length value cost type (km*) (2012) (2012) yrs. yrs. yrs. yrs. yrs. Gravel N/A $62,597, Surface treatment $1,366,086 $27,011, Pavement $7,966,776 $50,207, Gravel 1.54 N/A $972, Surface treatment 0.13 N/A $82, Pavement $2,231,353 $25,369, Urban Pavement $6,155,198 $34,749, Total $17,719,413 $200,990, *Centerline-kilometer Useful life (yrs.) 45 Township of King Asset Management Plan 7 P age

9 Table 2. Asset Component Roads Roads Surface (PSAB) Classification Financial Replacement Age distribution (km) Surface Length value cost type (km*) (2012) (2012) yrs. yrs. yrs. yrs. Rural Gravel N/A $368, Rural Surface treatment N/A $3,291, Rural Pavement $945,616 $21,373, Semi-urban Gravel 1.54 N/A $4, Semi-urban Surface treatment 0.13 N/A $36, Semi-urban Pavement $371,049 $11,310, Urban Pavement $1,876,340 $15,465, Total $2,247,389 $51,849, *Centerline-kilometer Useful life (Yrs.) Roads condition The average Structural Adequacy rating for the current Township of King road system was identified as 13.9 out of a maximum value of 20 as per the 2011 Roads Needs Report. A Structural Adequacy of 15.0 is reflective of a road network at approximately 69% of its as new condition which is considered acceptable. The condition of the existing road network is distributed as follows: 9.7 % with Major Rehabilitation Needs 23.7 % with Resurfacing Needs 66.6 % of roads are currently considered Adequate This means that 1/3 of the roads within in the Township are currently in need of some level of rehabilitation or resurfacing or will have a need in the very near future. Township of King Asset Management Plan 8 P age

10 Construction per km benchmark costs were developed for typical reconstruction and resurfacing improvements based on current unit prices approved by the Township. The condition of the existing road network is shown in Tables 3 and 4. Table 3. Road network condition - Major Rehabilitation Needs (2011 Roads Needs Report) Classification Surface type length (km) Cost ($) Rural Gravel 0.8 $113,200 Rural Surface treatment 7.16 $5,116,000 Rural Pavement 8.86 $4,277,000 Semi-urban Surface treatment 0.13 $82,400 Semi-urban Pavement 9.58 $7,334,900 Urban Pavement 2.56 $3,216,100 Total $20,026,200 Table 4. Road network condition - Resurfacing Needs (2011 Roads Needs Report) Classification Surface type length (km) Cost ($) Rural Gravel 6.5 $36,050 Rural Surface treatment $1,203,550 Rural Pavement 24 $2,614,200 Semi-urban Surface treatment 1.29 $175,800 Semi-urban Pavement $1,380,300 Urban Pavement $5,361,500 Total $10,771,400 Township of King Asset Management Plan 9 P age

11 Tables 5-7 below show the costs required to bring all roads back up to as-new condition as of Although it is not financially feasible for the municipality to eliminate all its road needs, the cost value of the needs provides a basis for assessing future requirements for maintaining the road network. Table 5. Summary of roads needs Now (2011 Roads Needs Report) Classification Surface type length (km) Cost ($) Rural Gravel 7.3 $149,250 Rural Surface treatment 7.91 $5,122,250 Rural Pavement $4,520,000 Semi-urban Surface treatment 0.13 $82,400 Semi-urban Pavement 12.7 $7,535,700 Urban Pavement 2.77 $3,221,900 Total $20,631,500 Table 7. Summary of roads needs years (2011 Roads Needs Report) Classification Surface type length (km) Cost ($) Rural Surface treatment 4.43 $406,300 Rural Pavement 4.63 $507,500 Semi-urban Surface treatment 1.29 $175,800 Semi-urban Pavement 4.17 $583,000 Urban Pavement $3,899,300 Total $5,571,900 Table 6. Summary of roads needs years (2011 Roads Needs Report) Classification Surface type length (km) Cost ($) Rural Surface treatment 8.53 $791,000 Rural Pavement $1,863,700 Semi-urban Pavement 4.38 $596,500 Urban Pavement 3.77 $1,456,400 Total $4,707,600 Table 8. Summary of roads needs cost (2011 Roads Needs Report) Time Cost ($) Now $20,631, yrs. $4,707, yrs. $5,571,900 Total $30, 911,00 Township of King Asset Management Plan 10 P age

12 Roads deficit Since the 2011 Roads Needs Report, there has been activity to rehabilitate, resurface and replace the Townships roads network. Table 9 provides a breakdown of the dollars spent in 2011, 2012 and budgeted for in Table 9. Summary of expenditures Paved roads Activity Year (budgeted) Renewal/rehabilitation activities significant repairs designed to extend the life of the asset. $566,474 $84,261 $215,000 Replacement activities activities that are expected to occur once an asset has reached the end of its useful life and renewal/ rehabilitation is $944,168 $2,022,103 $4,689,179 no longer an option. Total $1,510,642 $2,106,364 $4,904,179 Total actual expenditures for 2011, 2012 and budgeted 2013 amount to $8.5 Mil. Based on the 2011 Roads Needs Report, $30, 9 Mil was recommended to bring 1/3 of the roads network back to as new condition. As mentioned above, it is not financially feasible for the municipality to eliminate all roads, however there is an approximate $22.4 Million that should be planned for over the next 10 years to ensure optimal lifecycle management of the roads network. Township of King Asset Management Plan 11 P age

13 Bridges and Culverts inventory Table 10. Bridge inventory (PSAB) Asset component Length (m) Financial value (2012) Replacement cost (2012) Age distribution (m) yrs. yrs. yrs. yrs. yrs. Deck $1,573,360 $7,605, Structure N/A $7,000,115 $19,911,693 N/A N/A N/A N/A N/A 75 Useful life (yrs.) Table 11. Culverts inventory (PSAB) Financial Replacement Age distribution (m) Useful Length Classification value cost life (m) (2012) (2012) (yrs.) yrs. yrs. yrs. yrs. yrs. yrs. Steel 144 $2,263,680 $14,269, Concrete $1,351,759 $3,543, $3,615,439 $17,813, Bridges and Culvert condition As per the 2011 Roads Needs Report, Bridge and Culverts structures are generally in good condition with moderate deterioration. Approximately 60% of Bridges and Culvert structures need some form of improvement, out of which 45-50% have a more immediate need. Tables 12 and 13 below show improvements required as of Township of King Asset Management Plan 12 P age

14 Table 12. Summary of Bridge needs 2011 Roads Needs Report Time of need for Type of Improvement Improvement (codes defined in table 14 below) Length (m) Cost Now IAG, SPI, REB and RSL $405, Years WSR, RSP, OTH, REB, and RSL $2,542, Year CDS, IAG, SPI, PWP, CSS, RIR and REB $873,700 Total $ 3,821,725 Table 13. Summary of Culvert needs 2011 Roads Needs Report Time of Need for Type of Improvement Length Improvement (codes defined in table 14 below) (m) Cost Now SPI, IAG, RSL and REC $1,415, Years IAG, RSP, SPI, REC and RSL $2,061, Year REC, RSL, ERI and SPI $1,056,454 Total 99.3 $4,532,649 Table 14. Type of bridge/culvert improvement descriptions 2011 Roads Needs Report Type of Improvement IAG SPI REB RSL WSR RSP OTH CDS PWP CSS RIR Description INSTALL APPROACH GUIDERAILS SCOUR PROTECTION IMPROVEMENT REMOVE EXISTING BRIDGE REPLACE BRIDGE - SAME LOCATION WEARING SURFACE REHABILITATION REHABILITATE SUPERSTRUCTURE OTHER CONCRETE DECK SOFFIT REPAIRS PATCH, WATERPROOF & PAVE COAT STRUCTURAL STEEL RAILING IMPROVEMENT / REPLACEMENT Township of King Asset Management Plan 13 P age

15 Bridges and Culvert deficit Since the 2011 Roads Needs Report, there has been activity to repair and replace the Townships Bridges and culverts. Table 15 provides a breakdown of the dollars spent in 2011, 2012 and budgeted for in Table 15. Summary of expenditures Bridges and Culverts Year (budgeted) $973,389 $449,501 $800,000 Total improvement expenditures for 2011/2012 (actual) and 2013 (budgeted) amount to $2.2 Mil. Based on the 2011 Roads Needs Report, $8.4 Mil was recommended for Bridge and Culvert improvements hence approximately $6.2Mil should be planned for over the next 10 years to ensure optimal lifecycle management of the Townships Bridges and Culverts. Township of King Asset Management Plan 14 P age

16 4. SERVICE LEVELS Service levels are commitments to carry out certain asset-related actions within a specified time frame. Similar to the previous section, data is presented in a tabular format. Each table is composed of the following general headings: Performance criteria: classification of service levels into different themes, such as condition, responsiveness, cost (affordability), capacity and legislative requirements. Current service level: describes the existing level of service for that specific activity. Objective reference: links the service to a particular objective in the strategy matrix to ensure alignment with the asset management strategy. Desired service levels: describes the service level that can be realistically achieved. It is broken down into minimum, maximum, realistic and stretch goal target levels. The minimum and maximum determine the parameters of the target service levels. The realistic and stretch goal describe what the Township of King will likely achieve and what the future state longer term stretch goals are that will achieve service level excellence and provide inspirational directional focus for the service providers (internal or external). Timeframe to achieve desired levels: time it would take to reach the desired realistic level of service if not currently there. External factors: discusses external trends or issues that may affect expected levels of service and the municipality s ability to meet them. Township of King Asset Management Plan 15 P age

17 4.1. Transportation Infrastructure The following table provides a summary of the road network service levels agreed upon by the senior management team. Table 166 Transportation infrastructure services levels Transportation infrastructure service levels Objective Desired service level Performance Current service level reference Min Max Realistic Stretch criteria goal Timeframe to achieve desired realistic levels External issues that affect service levels Responsiveness Customer (citizens) concerns are acknowledged within the next business day Operational response times follow the Minimum Maintenance Standards (MMS) Traffic calming resolved within 2 years 20-30% of the time, customers (citizens) are notified once their concerns have been addressed 1 - B Customer (citizens) concerns are acknowledged within the next business day 3 - B Operational response times follow the Minimum Maintenance Standards (MMS) 3 - B Traffic calming resolved within 2 years 1 - B 100% of the time, customers (citizens) are notified once their concerns have been Township of King Asset Management Plan 16 P age

18 Transportation infrastructure service levels Objective Desired service level Performance Current service level reference Min Max Realistic Stretch criteria goal addressed Timeframe to achieve desired realistic levels External issues that affect service levels Cost/Affordability The total cost of maintenance activities is within the budget The budget covers less than 100% of the assets lifecycle costs 5 - A The total cost of maintenance activities is within the budget 5 - A The budget covers 100% of the assets lifecycle costs Condition A complete Road/Structure Needs study every 2 years 3 - B A complete Road/Structure Needs study every 2 years Currently not in place 3 - B Annual Pavement Condition Index survey On-going road repair (Pot holes, asphalt patching) based on the minimum maintenance 3 - B On-going road repair (Pot holes, asphalt patching) based on the Township of King Asset Management Plan 17 P age

19 Transportation infrastructure service levels Objective Desired service level Performance Current service level reference Min Max Realistic Stretch criteria goal legislative standards minimum maintenance legislative standards Informal inspection 3 - B Annual sidewalk inspection Annual ditch maintenance 3 - B Annual ditch maintenance Annual line painting 3 - B Annual line painting Annual guide rails informal assessment 3 - B Annual guide rails formal Annual sign reflectivity informal inspection Biannual control of vegetation growth As per patrol schedule requirements (based on the minimum maintenance legislative standards) Annual tree maintenance assessment 3 - B Annual sign reflectivity formal inspection 3 - B Biannual control of vegetation growth 3 - B Annual shoulder maintenance 3 - B Annual tree maintenance Timeframe to achieve desired realistic levels External issues that affect service levels Staff/resource levels Township of King Asset Management Plan 18 P age

20 Transportation infrastructure service levels Objective Desired service level Performance Current service level reference Min Max Realistic Stretch criteria goal Condition driven based on road patrols, informal inspection and customer calls Bi-annual gravel application to gravel roads 3 - B Gravel roads grading (once a month on average) 3 - B Bi-annual gravel application to gravel roads Timeframe to achieve desired realistic levels External issues that affect service levels Annual ditch maintenance Annual dust suppressant Annual street lighting condition inspection Street lighting bulb replacement within 72 hours of being reported Condition driven based on road patrols and informal inspection 3 - B Annual ditch maintenance 3 - B Annual dust suppressant 3 - B Annual street lighting condition inspection 3 - B Street lighting bulb replacement within 72 hours of being reported 3 - B Schedule surface treatment based on age, condition and formal inspection Contractor delays Contractor delays Township of King Asset Management Plan 19 P age

21 Transportation infrastructure service levels Objective Desired service level Performance Current service level reference Min Max Realistic Stretch criteria goal Condition driven based on road patrols and informal inspection Winter maintenance (sand, salt and plowing) based on road patrol and maintenance standards 3 - B Scheduled crack sealing based on age, condition and formal inspection 3 - B Winter maintenance (sand, salt and plowing) based on road patrol and maintenance standards Issue-driven 3 - B Curbs condition inspection every 2 years Timeframe to achieve desired realistic levels External issues that affect service levels Staff/resource levels Capacity Road uploaded (to the region) as needed 5 - B Road class matches the road volume (based on Road Needs study) Compliance to the Region's criteria for road uploading and political constraints (council unwilling to relinquish authority) Township of King Asset Management Plan 20 P age

22 Transportation infrastructure service levels Objective Desired service level Performance Current service level reference Min Max Realistic Stretch criteria goal In progress 4 - C Transportation Master Plan development every 5 years Timeframe to achieve desired realistic levels External issues that affect service levels Consultant delays Legislative compliance 100% compliant 4 - C 100% compliant Timing of the legislation, financial constraints Township of King Asset Management Plan 21 P age

23 5. ASSET MANAGEMENT STRATEGY 5.1. Strategic framework The following tables are the Asset Management Strategic framework by organizational drivers. Note: to get a complete picture of the framework and its status, refer to the working copy excel document Township of King Asset Management Strategic Framework. Driver (1): Customer Satisfaction Quote from Community Sustainability Plan Goal (1): To take a proactive approach in meeting or exceeding public needs and level of service. Table 177 Strategic framework for Driver 1Customer Satisfaction and respective Goal 1 Objectives Performance measures Baseline value Targets Y1 Y2 Y3 Action items (1-A) To keep assets in such condition that creates a sense of pride in community % response to customer surveys % of community attendance at community events 40% 50% 70% 90% To determine the baseline measures Satisfaction rating derived from Develop satisfaction ratings community surveys and user groups Capacity utilization 95% Annual average number of online transactions per members Annual Number of complaints on asset condition by asset class Number of online members Develop survey questions focused on pride Log complaints by asset type and location in CRM (1-B) To deal Average initial response time to business Township of King Asset Management Plan 22 P age

24 Objectives with public inquiries and concerns by providing relevant and accurate information in a timely and professional manner (1-C) To maximize the utility obtained from assets while providing best value for tax dollar Performance measures public inquiries Average time to resolve public inquiries by asset type Average time to deliver final response Customer satisfaction rating as it relates to accuracy, timeliness and relevance % of available time the asset was in use $ value (replacement value) of assets that exceeded the planned life cycle % of assets that exceeded the planned life cycle and continues to perform satisfactorily Baseline value business day 1 business day of completi on Targets Y1 Y2 Y3 busine ss day 1 busine ss day of compl etion business day 1 business day of completi on day 1 business day of completion 3 5 Action items 100% Develop Council approved policies and service levels that provide value for money 10% Township of King Asset Management Plan 23 P age

25 Driver (2): Employee Satisfaction Goal (2): To create a workplace where empowered employees thrive on purposeful work accompanied by well-defined roles and responsibilities, while receiving guidance to ensure progress towards the intended objectives. Table 188 Strategic framework for Driver 2Employee Satisfaction and respective Goal 2 Objectives Performance measures Baselin e value Targets Y1 Y2 Y3 Action items (2-A) To ensure staff have the right parts, tools, and contextual information to do purposeful work Number of trips away from the worksite to obtain parts and tools In stock % of high demand parts and materials # of hours waiting for locate information # of hours, equip or tools that are out of service for unplanned maintenance GPS logs on all vehicles Develop an inventory management system for parts, tools and materials Integrate GIS information when creating work orders (2-B) To ensure staff have clarity of roles and responsibilities, and are empowered to manage assets in a manner that each employee feels pride of ownership % response to employee surveys (targeted in relation to Asset Mgmt.) % of employees that are satisfied with their work environment re. (tools, parts, materials, contextual info etc.) # of call backs for the same problem % of employee initiated job description reviews % of work orders with more than 1 call back for the same problem Implement a work order management system detailing out of service hours, repairs, required tools and parts Targeted employee survey re. current job descriptions, SOPs, training Provide a framework for allowing employees to give feedback on how to make things better Focused employee satisfaction survey re. Asset Management Township of King Asset Management Plan 24 P age

26 Objectives Performance measures Baselin e value Targets Y1 Y2 Y3 Action items (2-C) To foster a learning environment to support staff in their work and in dealing with the public # of opportunities for professional development Implement a performance management program Need action items around "Purposeful", i.e., making sure we always ask why -- 2 parts are training on the big picture (e.g., why are they putting in the work order data such as problem / cause / action codes), and using systems that help analyze the why/start/stop. Allocate an annual budget for Asset Mgmt. training and development Township of King Asset Management Plan 25 P age

27 Driver (3): Operational Excellence Goal (3): To better manage assets throughout their lifecycle in such a manner that optimizes capacity, Table 199 Strategic framework for Driver 3Operational Excellence and respective Goal 3 Objectives Performance measures Baseline value Targets Y1 Y2 Y3 Action items (3-A) To optimize utilization of capacity, asset versatility, and service levels through excellence in design, planning, procurement and implementation #/%/$ value of projects that are undertaken through partnerships with 3rd parties ( e.g. Sport assoc. community assoc. municipalities, private sector) Implement one CMMS for all asset classes Develop a work program including maintenance policies for each asset/component (i.e., fail-based vs. condition-based vs. use-based maintenance), job plans (incl frequency, trigger, procedures, performance and quality standards, safety procedures, standard parts, tools), starting with critical assets Have a design charter...such that needs of the frontline staff are documented and met and are incorporated in the ultimate design and that the designer has clearly articulated what has been planned and designed (3-B) To Schedule compliance - % of Tracking device to manage and Township of King Asset Management Plan 26 P age

28 Objectives optimize asset lifecycle through the implementation of best management practices for operation, maintenance, rehabilitation and disposal (3-C) To optimally manage the complete supply chain for parts and material (3-D) To be a leader in asset sustainability, while balancing environmental and fiscal responsibilities Performance measures time maintenance and inspections are completed as scheduled % of assets that fail prior to planned life cycle % inspections in compliance to regulatory standards Actual $ spent on asset maintenance per yr. by asset type compared to planned Frequency of unscheduled maintenance vs. planned In stock % of high demand parts and materials % of time 3rd party vendors are able to respond in a timely manner (e.g. 24hrs can vary by vendor)... Downtime due to out of stocks (parts and material) $ value or % of acquisitions that incorporate environmental/green technologies Savings from sustainability projects/year Baseline value Targets Y1 Y2 Y3 Action items measure work order performance Preferred vendors for maintenance and parts Wrench time measurement Develop policies to balance environmental benefits with fiscal responsibility Have a financial strategy in place to ensure assets can be maintained and replace as required Township of King Asset Management Plan 27 P age

29 Driver (4): Risk Management Goal (4): To proactively establish risk management plans that protects public health and safety and meets or exceeds regulatory requirements Table 20 Strategic framework for Driver 4 Risk Management and respective Goal 4 Objectives Performance measures Baseline value Targets Y1 Y2 Y3 Action items (4-A) To identify and prioritize risks associated with asset performance on an ongoing basis # of failures per year per asset type % of unplanned expenditures vs. planned Implement a risk management program $s spent on insurance claims per year per asset type (4-B) To create an environment where risk management is a priority, with staff having the proper tools and techniques to manage effectively # of claims per year per asset type % of employees trained on risk management and safety protocols % of employee accidents per yr. per asset type Establish a risk management and safety policy Township of King Asset Management Plan 28 P age

30 Objectives (4-C) To ensure awareness of current regulatory requirements and plan for anticipated changes and embed them into asset management practices Performance measures % adherence to regulatory requirement. Baseline value Targets Y1 Y2 Y3 Action items Township of King Asset Management Plan 29 P age

31 Driver (5): Financial Stewardship Goal (5): To sustain a fiscally responsible and financially optimized asset management program Table 21 Strategic framework for Driver 5 Financial Stewardship and respective Goal 5 Objectives Performance measures Baseline value Targets Y1 Y2 Y3 Action items (5-A) To align financial requirements with scheduled asset management activities % of annual approved budget vs. annual required budget Four year updates of the AMP including financial components to make adjustments for upcoming expansion, maintenance, renewal, replacement and disposal of all asset classes (5-B) To ensure strategic infrastructure investments are aligned with the community sustainability plan, subject to an innovative and effective financing strategy % of non-tax funding $s vs. tax capital funding $s To review development agreements to ensure there is clarity around what assets and when they become the Townships responsibility Timely and accurate databases of all asset classes Township of King Asset Management Plan 30 P age

32 Key next steps: # Activity Owner 1 Finalize performance measures with the senior management Director of Finance & Treasurer 2 Determine baseline measures and targets Director of Finance & Treasurer 3 Develop action items to determine project based activities Director of Finance & Treasurer Township of King Asset Management Plan 31 P age

33 5.2. Project-based activities Project based activities were derived from the strategic framework, Action Items based on the drivers, goals and objectives. These activities are focused on long achieving long term goals and are typically new processes or require some major change and are governed by performance measures and targets. Table 22 Project-based activities Strategic framework key projects Baseline measures Surveys and satisfaction ratings Customer complaints Policies and service levels that provide customer value for money An integrated inventory management system GPS Logs on vehicles Asset management system Description Determine baseline measures for performance targets where applicable Develop asset management surveys to solicit customer and employee feedback along with satisfaction ratings to measure results Use the CRM system to log and report on customer queries and complaints by asset type Develop policies and service levels with council s approval to maximize the utility obtained from assets while providing best value for tax dollar Implement an inventory management system to manage parts, tools and materials Track vehicle location and routes to improve productivity and performance Implement an asset management system to effectively support asset lifecycle optimization. Would include work order management to detail out service hours, repairs, required tools and parts. System should be integrated with GIS information and provide timely and accurate databases of all asset classes Performance management Optimized procurement Work Measurement Environmental benefits vs. fiscal responsibility Financial strategy Risk management AMP updates at council term Asset acquisition Implement performance management program to create / maintain a high performing workforce Preferred vendors for maintenance and parts Measure wrench time and identify opportunities to improve productivity Develop policies to balance environmental benefits with fiscal responsibility Implement a financial strategy to ensure assets can be maintained and replace as required Implement a risk management, should include a risk management and safety policy Update the AMP including financial components to make adjustments for upcoming expansion, maintenance, renewal, replacement and disposal of all asset classes Review development agreements to ensure there is clarity around what assets and when they become the Townships responsibility Township of King Asset Management Plan 32 P age

34 5.3. Business-as-usual activities Business as-activities are focused on efficiency and effectiveness of known processes where minor change or tweaking is required. They are governed by service level agreements and/or KPI s. The service level table in section 4.1 should be used to manage these activities. Table 20. Business as-usual activities Key activities On-going road repair (Pot holes, asphalt patching) Sidewalk inspections Ditch maintenance Guide rails formal assessment Sign reflectivity inspection Control of vegetation growth Shoulder maintenance Gravel roads grading Gravel application to gravel roads Ditch maintenance Dust suppressant Small/driveway culverts inspection Street lighting condition inspection Street lighting bulb replacement Road surface treatment Road crack sealing Curbs condition inspection Township of King Asset Management Plan 33 P age

35 year roadmap Note: This section needs to be populated as per the transition plan below. Transition Plan Section owner Director of Finance & Treasurer # Key activities Support Owner 1 Prioritize strategic projects (Short, Medium and Long) SMT Director of Engineering, Public Works & Building 2 Determine roll-out plan (who, what, when, how) SMT Director of Engineering, Public Works & Building 3 Obtain buy-in for roll-out plan from council SMT Chief Administrative Officer 4 Deploy plan SMT Director of Engineering, Public Works & Building 5 Measure progress SMT Director of Engineering, Public Works & Building Township of King Asset Management Plan 34 P age

36 6. FINANCIAL STRATEGY The capital and operational expenditures took into account non-infrastructure solutions; maintenance activities; renewal/rehabilitation activities; replacement and disposal activities; expansion activities and salaries. Note this section and the numbers will need revision based on the 10 year plan above. Township of King Asset Management Plan 35 P age

37 Table 21. Capital/Operational expense and funding Infrastructure (Operational Costs) 2014 Forecast Asphalt Maintenance & Patching $ 1,162,588 Grading, Ditching & Gravel Maintenance $ 1,166,003 Bridges and Culverts $ 123,491 Total $ 2,452,082 Infrastructure (Capital Costs) 2014 Forecast Asphalt Maintenance & Patching $ 2,283,761 Grading, Ditching & Gravel Maintenance $ Bridges and Culverts $ 6,254,114 Total $ 8,537,875 Operational Funding 2013 Actual Asphalt Maintenance & Patching $ 455,413 Grading, Ditching & Gravel Maintenance $ 1,088,287 Bridges and Culverts $ 108,219 Total $ 1,651,919 Capital Funding 2013 Actual Roads & Bridges Reserve $ - Build Canada Grant $ - Development Charges $ 1,768,200 Taxation $ 24,000 Developer Contribution $ - Gas Tax $ 709,106 Debentures $ 2,337,873 Total $ 4,839,179 Funding Sources Bridges 2013 Actual MIII Reserve Funds (Provincial Grant) $ 154,069 Holland Marsh Reserve $ - Taxation $ 48,931 Gas Tax $ 597,000 Total $ 800,000 Combined Capital and Operational Costs $ 10,989,957 Combined Capital and Operational Funding $ 7,291,098 Assuming same funding in 2014 (Shortfall) $ 3,698,859 Key assumptions: Inflation rate 2% per yr. An anticipated growth rate of 44% increase in roads over the next 30yrs 2014 funding same as 2013 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.). Maintenance activities including regularly scheduled inspection and maintenance, or more significant repair and activities associated with unexpected events. Renewal/rehabilitation activities significant repairs designed to extend the life of the asset. Replacement activities activities that are expected to occur once an asset has reached the end of its useful life and renewal/rehabilitation is no longer an option Disposal activities the activities associated with disposing of an asset once it has reached the end of its useful life, or is otherwise no longer needed by the municipality. Expansion activities planned activities required to extend services to previously unserviced areas - or expand services to meet growth demands. Township of King Asset Management Plan 36 P age

38 In order to accommodate for the $3.7M shortfall in 2014, potential financing strategies will have to be employed, these could include but are not limited to: Applying a portion of annual assessment growth to the financing of roads and bridges Extending the useful life of the assets where applicable Deferring of projects Increase taxes Debenture finance Partner with the region of York to perform rehabilitation work concurrently Uploaded roads to the region where possible Transition Plan # Key activities Owner(s) 1 Plan for strategic projects as per the 10 year road map Director of Engineering, Public Works & Building Director of Finance & Treasurer 2 Determine overall cost for capital, operational and strategic projects Director of Finance & Treasurer 3 Explore financing strategies Director of Finance & Treasurer 4 Update the AMP accordingly Director of Finance & Treasurer Township of King Asset Management Plan 37 P age