The City of Calgary
Infrastructure Status Report
The Infrastructure Status Report (ISR) is a key document to enable knowledgeable infrastructure investment decisions by City Council. It provides information on asset condition and the ability for assets to deliver services to the citizens of Calgary. The ISR:
• Benchmarks for infrastructure needs.
• Identifies short- and long-term infrastructure investment shortfalls. • Recommends means for sustainable management of corporate
infrastructure assets.
City Council approved Calgary’s Asset Management Strategy and the Corporate Asset Management Program in 2005. The ISR is a part of the integrated framework of processes, tools and documents to implement Corporate Asset Management in The City of Calgary.
Calgary’s Asset Management Strategy identified 11 essential elements of an effective asset management program, four of which guide the development of the annual ISR. These include:
• An accurate and consistent inventory for all municipal infrastructure. • Continual infrastructure status reporting to enable asset stewards to
develop infrastructure investment priorities and annual budgets. • An integrated infrastructure risk assessment framework to inform
infrastructure investment decisions.
• Benchmarking to measure infrastructure performance.
The ISR provides the information to enable City Council to make and continually improve infrastructure investment decisions which ensure The City’s infrastructure is well maintained and that maintenance, repair and development programs are adequately funded. The ISR is aligned with the National Research Council of Canada’s recommendations for municipalities to be able to answer six key questions:
1. What do we own? 2. What is it worth?
3. What is its remaining service life? 4. What condition is it in?
5. What do we spend and what should we spend? 6. What is the gap?
Asset management best practices will provide
asset stewards the right information to make the
right infrastructure decisions at the right time.
Table of contents
Executive summary ... 1
Current infrastructure status ... 5
What do we own? ... 5
What is it worth?... 5
What is its remaining service life? ... 8
What condition is it in? ... 9
What do we spend and what should we spend? ... 13
What is the gap? ... 13
Capital budget conclusions ... 15
Infrastructure gap conclusions ... 18
Appendices
I. The state of asset management at The City of Calgary ... 21II. Business unit summary ... 25
Executive Summary
The City of Calgary is under pressure to keep pace with rapid growth. The City’s infrastructure is aging — the majority constructed during the economic growth period from the 1960s to the mid-1980s — and population growth and increased economic activity are challenging the capacity of existing infrastructure to meet the increased demand.
More stringent environmental requirements and volatile construction costs are putting increasing pressures on the already limited funds for infrastructure investment. A prolonged and serious funding shortfall creates a backlog of priority projects that will eventually affect The City’s ability to deliver quality public service to its citizens which will, in turn, have an impact on Calgarians’ quality of life.
The City has a large infrastructure gap. Over the next 10 years, an additional investment of $8.2 billion is needed to fund both growth and maintenance. The City must work with other levels of government to establish sustainable and flexible infrastructure funding sources and work to prioritize current budget allocations based on priorities for capital maintenance.
A corporate-wide infrastructure strategy must remain one of The City’s foundational corporate initiatives to address growing infrastructure needs. Infrastructure Services works closely with City business units, external stakeholders and national infrastructure practitioners and experts as it leads the Corporate Asset Management program. Infrastructure Services is implementing new strategies and improved management tools while exploring alternative new funding approaches.
What do we own?
The physical assets owned by The City are extensive and varied. The City is responsible for water and sewer systems, solid waste management, roads, bridges, transit systems, parks, recreation facilities, fleet, equipment and information technology.
The City also has significant land holdings in the form of open space, rights-of-way, public housing and non-public real estate holdings, which is not yet reported as part of the corporate asset management program.
The 10-year infrastructure gap
Unfunded
($ billions)Capital Maintenance $1.6
Operating $0.5
Key findings and trends
• Over the past three years The City’s infrastructure assets have appreciated considerably from $28 billion to $50 billion! Prime reasons for this increase in inventory replacements value includes unprecedented construction, cost escalation and inflationary market conditions. No less important, but of relatively lesser magnitude, are the increases in inventory replacement value by the regular additions of new assets both built by The City and acquired from developers. A final, but not as obvious a contribution to the increase, is improvements in reporting on existing assets.
• The percentage of assets in poor to critical condition and the remaining life of the assets have not changed over last year. City business units with the largest absolute values of poor to critical infrastructure are Calgary Transit, Roads, Water Services and Corporate Properties. Facilities infrastructure, which has the greatest percentage of assets in poor condition, is the area of greatest need and the highest corporate risk. • The average remaining life of assets has not changed within the last year.
Assets in Fleet, Emergency Medical Services and Information Technology have the shortest remaining life.
• The City of Calgary has identified $8.2 billion of infrastructure maintenance and growth over the next ten years that is unfunded. This “infrastructure gap” has grown from $5.4 billion in 2005.
• The capital maintenance portion of the gap has decreased over three years from a high of $2.3 billion to $1.6 billion. It is suggested the primary contributing factors to this trend is the corporation is more effectively identifying growth projects that concurrently eliminate capital maintenance needs.
• The capital growth portion of the infrastructure gap shows an increase to $6.04 billion in 2006 from $2.7 billion in 2005. This is attributable to a large increase in the cost of constructing unfunded projects (over that identified in 2005) coupled with the need to meet the additional requirements of higher than forecast population growth in the last year. Cost escalation and rapid growth are therefore driving the infrastructure gap.
• Current funding sources will not support sustainable infrastructure capital maintenance programs based on medium-term projected needs.
• The City must direct resources towards maintaining its current
infrastructure and work with other levels of government to establish long-term, sustainable funding for both growth and maintenance.
• Infrastructure priorities should be reflected in current budget allocations. Budgets must be readjusted to allocate funds based on assets’ value, physical condition and remaining service life, criticality and risk exposure.
What are these assets worth?
The current replacement value of Calgary’s infrastructure is estimated to be $50 billion. Over the past three years, The City’s infrastructure assets have appreciated considerably to $50 billion from $28 billion due to cost escalation, inflationary market conditions, new assets (both built and inherited) and better reporting on existing assets.
Assets
($ Billions)
What is the condition?
The City’s infrastructure is currently in relatively good condition because of the following:
• The relative age of the infrastructure. • Diligent preventative maintenance.
• Previous decisions by City Council in balancing the demands of infrastructure renewal and growth.
What is the remaining service life?
In the short-term, infrastructure investment needs are relatively high in some areas. Assets rated in poor to critical condition include: water distribution networks, bridge structures, traffic control/street lighting, assorted road resurfacing, parks and select pools and arenas.
Overall, the remaining life of the infrastructure is about 30 years with an average life expectancy of 63 years.
As The City’s infrastructure ages, more investment is required for
maintenance and rehabilitation. In the near future, an increasing percentage of assets will reach the midpoint of their life cycle. Typically, this represents a more expensive stage in the life cycle of an asset.
What do we spend and what should we be investing?
The City spends approximately $410 million per year on maintaining our existing assets. The City will spend approximately $7.8 billion over the next 10 years on both maintaining existing infrastructure and building new infrastructure related to growth.Asset managers
The business units managing the majority of The City’s infrastructure are: • Calgary Police Service • Civic Partners • Corporate Properties &
Buildings
• Emergency Medical Services • Fire • Fleet Services • Information Technology • Parks • Recreation • Roads • Calgary Transit
• Waste & Recycling Services • Water Resources
• Water Services Criticality Business units have reported that $3.5B is critical infrastructure. Proactive inspection and rehabilitation are deemed critical for assets where the financial, business or service level consequences of failure are severe. Transit ($1.4B) and Water Management ($956M) have the highest value of critical infrastructure. Police (66 per cent) and Transit (56 per cent) have the highest percentage of critical infrastructure.
Risk
$4.2B of The City’s infrastructure is in the highest risk category. Risk is determined from a subjective assessment of probability of failure multiplied by a subjective assessment of the impact of failure. Roads ($2.2B) and Transit ($1.1B) have the most asset value at risk. Fire (72 per cent) and Police (50 per cent) have the highest
percentage of risk-exposed assets.
Transportation $13.90 Corporate Services (IT) $0.13 Community & Protective Services/ $3.32 Parks, Recreation, Civic Partners AMCW $1.55 Corporate Properties Fleet UEP $30.85
A number of studies on public infrastructure indicate that over the life of an asset, capital and operating maintenance expenditures of two to four per cent of the current replacement value of the asset could be expected. Based on a total current replacement value of $50 billion, on average, it could be expected that between one and two billion dollars should be spent annually to maintain infrastructure assets.
What is the gap + 3 year trends?
City business units have identified a total 10-year envelope infrastructure gap of $8.2 billion. Of this gap, $2.1 billion is related to maintenance and $6.1 billion is for growth.
Gap 2004 2005 2006 $5.30B $5.40B $8.20B Operating $0.5B $0.7B $0.52B Maintenance $2.3B $2.0B $1.59B Growth $2.5B $2.7B $6.04B Age (years) Expected life 68 70 63 Remaining life 31 45* 30 Value $27B $28B $50B Condition Physical 80% 80% 76% 14% 13% 17% 6% 7% 7% Functional 85% 80% 82% 11% 16% 15% 4% 4% 3% Demand 87% 85% 84% 8% 10% 14% 5% 5% 3%
*Calgary Police Service and Parks did not report.
The City will see maintenance costs significantly increase as its assets pass through middle age over the next decade, and as cost escalation impacts maintenance, new construction and rehabilitation costs. Environmental legislation, growth and annexation will worsen the situation. Growth and annexation will also, paradoxically, improve the situation by diluting or reducing the average age of infrastructure as new infrastructure comes on stream in newer subdivisions.
Current infrastructure status
What do we own?
Infrastructure is defined as all the physical assets developed and used by The City to support the community’s social and economic activities. The City owns and manages a broad range of infrastructure grouped into the following areas:
• Civic partners
• Corporate properties and buildings • Fire, police and EMS
• Parks and recreation • Road and right-of-way • Transit and fleet • Waste management
• Waterworks, wastewater and stormwater
Replacement value of assets by type
($ Billions)What is it worth?
The total replacement value of The City’s infrastructure is $50 billion. Major infrastructure replacement value growth is related to Water Services, Water Resources, Transit and Roads. Calgary’s rapid growth and expansion directly influences these elements. The value of The City’s infrastructure is recorded by asset type: buildings, equipment, systems and structures. Land values will be included in future reports.
The impact of cost escalation on the current replacement value is
substantial and is assessed in this year’s report. Its impact has been most dramatic in the value of Roads Transportation assets, which increased to $11 billion in 2006 from about $8 billion in 2005 and, over the past three years, water assets have increased in value to $31 billion in 2006 from $15 billion in 2004.
0 5 10 15 20 25 30 35 40
Equipment Totals Facilities Totals Land Improvement Totals Land Totals
Systems and Structures Totals $39.14
$0.53 $0.81
$3.52 $5.75
In 2004, Water Services valued all waterworks underground infrastructure at $4.6 billion. In March 2007, that estimate rose to $10.4 billion (although the addition of another 200km of underground mains was partly responsible for the increase). The large change resulted in using $1,350 per metre replacement cost in 2007 versus a $741 per metre for replacement cost in 2004. The difference accounted for an increase in CRV of $2.4 billion. The large increase in unit cost estimates is due to repair job estimates versus new construction job estimates.
Roads provides another example of the impacts of inflation on replacement value. In 2004, the estimated replacement value of roadways was $7.9 billion. In 2005 that value had risen to $8.2 billion and in 2006, estimates placed the value at $11.4 billion, an increase of 44 per cent over two years.
Replacement value of assets
($ billion)Note: Heritage Park, Convention Centre did not report.
The City owns and maintains infrastructure assets valued at $50 billion. However, $3.5 billion, or seven per cent of the assets, are estimated to be critical for service delivery. On average the inventory is 30-years old with a remaining life of 33 years. Existing non-critical assets, if allowed to deteriorate with little regard for maintenance and rehabilitation, will add to the inventory of critical assets.
0 5 10 15 20 25 30 35
*Civic Partners Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Roads Transit Waste Management Water Land $0.53 $30.77 $0.08 $2.48 $11.42 $0.43 $0.28 $1.20 $0.13 $0.20 $0.23 $0.00 $0.82 $1.17
Critical asset value
($ millions)The graph below illustrates the risk costs associated with each business unit’s assets and asset types. This indicates that Roads and Transit have the most assets at risk.
High risk value estimate
($ millions)Calgary Fire Department holds 187 fire and support vehicles and 41 buildings including 33 Fire Stations, a 9-1-1 Communications Centre, fire inspector offices, a Fire Training Academy and one EMS Geopost.
Calgary Police Service has 33 facilities and 916 vehicles.
Calgary Transit has: - 28 substations - 36 LRT stations
- 52 parking lots/bus shelters/bus loops - 17 bridges and 6 tunnels
- 119 LRVs - 839 buses - 96 auxiliary vehicles - 94 km track length.
Corporate Properties has 183 buildings and structures including Plus 15, 2,746,356 square feet or 255,145 m2.
Fleet operates 2500 vehicles, including emergency response vehicles.
Parks works with 405,000 trees, 700 km of local and regional pathways and 7600 hectares of open space on 3600 regional and local parks, natural areas roadway greens sites and five city cemeteries.
Recreation holds 14 ice arenas, two leisure centres, two art centres, the Glenmore reservoir facility, 21 pools, six athletic parks, five golf courses and four associated facilities.
Roads and right-of-way
Total roads km 13,180 Total sidewalk sq m 6,460,665 Total grass sq m 10,665,922.30 Total back lanes sq m 10,014,116 Total fences m 329,759.55 Total pathway m 524,888.92
Water Resources’ storm system runs 3600 km of mains, 29 pump stations and 148 retention ponds.
Information Technology offers 300 servers,
500 printers and 5000 desktop machines.
Water Waste Management Transit Roads Recreation Police Parks IT Fleet Services Fire EMS Corporate Properties & Buildings Civic Partners 0 300 600 900 1,200 1,500 $956 $20 $1400 $186 $0 $185 $0 $0 $15 $64 $0 $148 $569 0 500 1,000 1,500 2,000 2,500 Civic Partners Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Roads Transit Waste Management Water $1,123 $2,202 $139 $15 $168 $506
Replacement value of assets by service area
($ millions)What is its remaining service life?
The life spans of The City’s diverse assets vary from a few years (e.g. information technology) to over 70 years (e.g. sewers). Overall, the average remaining life is about 30 years with an average life expectancy of 63 years.
Expected life/remaining life of City assets
(years)Water Resources’ sanitary system runs two treatment
plants, a concrete gravity dam, 290,000 valves, 4500 km of transmission/distribution pipe, reservoirs, pump stations and 290,000 service connections.
Waste & Recycling Services
has 275 vehicles, 46 facilities and buildings, three landfills and five transfer stations.
Water Resources’ water system operates two treatment
plants, 4000 km of mains and 295,000 lateral connections.
Civic Partners
Calgary Parking Authority
looks after 6700 parking stalls in 35 parkade and surface lots.
Calgary Public Library offers
22 branches.
Calgary Zoo includes
89 buildings and six amphitheatres.
EPCOR Centre features four
auditoriums.
Fort Calgary operates five
facilities, including the historic Hunt House.
Heritage Park boasts
118 buildings, some approaching 90 years old.
TELUS Convention Centre
is 12,263 m2.
TELUS World of Science
has two buildings.
0 5,000 10,000 15,000 20,000 25,000 30,000 Equipment
Facilities Land Improvement Systems and Structures EquipmentFacilities Land Improvement Land Systems and Structures Equipment Facilities Land Improvement Systems and Structures Equipment Facilities Land Improvement Systems and Structures Equipment Facilities Land Improvement
Systems and Structures $26,769
$75 $4,004 $11,880 $660 $1,363 $420 $811 $1,508 $63 $66 $530 $884 $201 $397 $122 UEP Community Services Trans- portation Corporate Infrastructur e Pr otective Services 0 10 20 30 40 50 60 70 80 Civic Partners* Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Roads Transit Waste Management Water 35 72 9 23 21 53 17 50 8 31 17 40 4 11 4 6 16 39 3 6 32 60 24 44
Remaining Life (yrs) Expected Asset Life (yrs)
Expected life/remaining life by service area
(years)As the infrastructure ages and Calgary’s population grows, greater demands will be put on the infrastructure. Life cycle maintenance and upgrades become more important with each passing year.
What condition is it in?
A standardized ranking system was used to determine the physical condition, demand/capacity and functionality of all City infrastructure. The ranking system has five levels:
A - very good B - good C - fair D - poor F - critical
Although the quality of available data varies and requires some assumptions in the assessment, this ranking system provides a strategic perspective of the state and condition of The City’s infrastructure. Continued
improvement to data collection and analysis will generate more consistent and accurate data.
The majority of the physical condition, demand/capacity and functionality of The City’s infrastructure are rated as very good or good (approximately 76 per cent). However, some areas are fair (approximately 17 per cent) and if not maintained will deteriorate to poor and critical condition. Currently, seven per cent of the infrastructure is in poor-to-critical condition. 2005 also had seven per cent of the infrastructure in poor to critical condition; and 2004 had five per cent in poor to critical condition. The increase in 2005 and 2006 is due to the aging of the infrastructure and implementation of condition assessment practices throughout the corporation.
Physical Condition
Physical condition refers to the condition of the physical infrastructure that allows it to meet the intended service level. Good to very good 76 per cent. Fair 17 per cent. Poor to Critical seven per cent.
Demand/capacity
Demand/capacity represents the ability of the physical infrastructure to meet service needs. Good to very good 84 per cent. Fair 14 per cent. Poor to Critical two per cent.
Functionality
Functionality is the ability for physical infrastructure to meet program delivery needs. Good to very good 82 per cent. Fair 15 per cent. Poor to Critical three per cent.
Remaining Life (yrs) Expected Asset Life (yrs)
0 10 20 30 40 50 60 70 80 90 Equipment
Facilities Land Improvement Systems and StructuresEquipment Facilities Land Improvement Systems and StructuresEquipment Facilities Land Improvement Systems and Structures EquipmentFacilities Systems and StructuresEquipment
Systems and Structures 37 77
52 84 21 52 5 14 9 23 23 46 22 47 4 14 3 9 30 57 46 14 42 3 10 UEP Community Services Trans-portation Corporate Infrastructure Protective Services
Capital funding is needed to ensure infrastructure in good condition, does not deteriorate and fair and critical infrastructure is appropriately funded to improve their status.
Condition of The City’s infrastructure
Physical conditon ranking
Demand condition ranking
Physical Condition
Physical condition refers to the condition of the physical infrastructure that allows it to meet the intended service level. Good to very good 76 per cent. Fair 17 per cent. Poor to Critical seven per cent.
Demand/capacity
Demand/capacity represents the ability of the physical infrastructure to meet service needs. Good to very good 84 per cent. Fair 14 per cent. Poor to Critical two per cent.
Functionality
Functionality is the ability for physical infrastructure to meet program delivery needs. Good to very good 82 per cent. Fair 15 per cent. Poor to Critical three per cent.
Good to very good Fair Poor to critical 20 40 60 80 100 Functionality Demand/Capacity Physical condition 10 0 30 50 70 90 76% 17% 7% 84% 14% 2% 82% 15% 3% 0 10 20 30 40 50 60 70 80 90 100 Civic Partners* Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Roads Transit Waste Management Water 77% 18% 56% 26% 69% 18% 87% 9% 65% 25% 5% 18% 13% 4% 10% 62% 64% 16% 33% 24% 14% 28% 83% 8% 1% 25% 30% 38% 27% 37% 42% 33% 10% 52% 52% 21% 0 10 20 30 40 50 60 70 80 90 100 Civic Partners* Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Roads Transit Waste Management Water 81% 17% 42% 19% 69% 22% 95% 3% 61% 32% 2% 39% 9% 2% 7% 52% 92% 100% 44% 4% 100% 8% 93% 100% 64% 2% 5% 17% 19%
Functional condition ranking
Corporate Properties & Buildings, Water and Roads have the largest value of poor to critical infrastructure when taking the total replacement value of the infrastructure into consideration.
Physical condition ranking
($ millions)Physical condition ranking
($ millions)Good to very good Fair
Poor to critical
0 10 20 30 40 50 60 70 80 90 100
Civic Partners* Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Roads Transit Waste Management Water 77% 19% 72% 92%6% 94%3% 57% 40% 4% 28% 2% 3% 3% 75% 91% 100% 7% 18% 51% 49% 9% 96% 100% 49% 1% 3% 38% 13% 0 5,000 10,000 15,000 20,000 25,000 Roads Transit Water $1,473 76% $337 $438 $1,709 $461 $1,062 $9,896 $5,501 $23,799 84% 82% 0 100 200 300 400 500 600 700 800 Civic Partners*
Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Waste Management $14$20 $42 $66 $100 $1 $110 $22 $84 $56 $66 $77 $86 $71 $422 $80 $315 $230 $576 $304 $336 $768 $172 $41 $41 $110 $282
Transit, Water and civic partners have the largest value of poor to critical infrastructure with respect to demand/capacity.
Demand condition ranking
($ millions)Demand condition ranking
($ millions)Good to very good Fair
Poor to critical
$0 $200 $400 $600 $800 $1,000
Civic Partners* Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Waste Management $14$30 $139 $10 $125 $144 $99 $1,000 $134 $200 $4 $12 $218 $817 $208 $715 $187 $264 $32 $29 0 5,000 10,000 15,000 20,000 25,000 30,000 Roads Transit Water $611 76% $216 $552 $1,717 $133 $394 $10,982 $5,092 $25,071 84% 82%
Water, Roads and civic partners have the largest value of poor to critical infrastructure with respect to functionality when taking into account the total replacement value of the different infrastructure elements.
Functional condition ranking
($ millions)Functional condition ranking
($ millions)What do we spend and what should we spend?
The City will spend approximately $7.8 billion over the next 10 years maintaining existing infrastructure and building new infrastructure related to growth. Of this, approximately $410 million will be spent on average per year on maintenance.
What is the gap?
City business units have identified a total 10-year envelope infrastructure gap of $8.2 billion. Of this gap, $2.1 billion is related to asset maintenance and $6.1 billion is for growth. This estimate is based on historical budget trends and new estimates from the business units of what is required.
0 200 400 600 800 1,000 1,200
Civic Partners* Corporate Properties & Buildings EMS Fire Fleet Services IT Parks Police Recreation Waste Management $21$54 $51 $246 $20 $208 $68 $1,000 $1,094 $200 $4 $6 $65 $225 $817 $545 $146 $419 $110 $11 $176 0 5,000 10,000 15,000 20,000 25,000 Roads Transit Water $1,095 76% $58 $154 $2,273 $312 $367 $10,739 $5,963 $23,715 84% 82%
Good to very good Fair
Gap analysis – excluding growth
This section translates the gap estimate in this report (physical condition, risk, age and criticality) into dollars. The table below shows these measure-ments of asset needs in terms of the capital and operating maintenance gap over the next 10 years, excluding growth. Business unit asset managers are using this data at the business unit level to make trade-off decisions as to what infrastructure needs funding on a year-by-year basis.
Operations and capital maintenance 10-year gap
The table below shows there are four approaches for estimating the infra-structure gap: physical condition, risk (the probability and impact of failure), age and criticality (the severity of financial, business or service level conse-quences of failure).
To illustrate how we arrive at the infrastructure gap, we can look at physi-cal condition. The estimated value of the poor to critiphysi-cal condition assets is $3.3B. We then add a straight line estimate of $8B for infrastructure dete-rioration over 10 years. Considering the available funding for infrastructure (approximately $4B), this gives an infrastructure gap of $7.3B. The same process is followed for the gap estimates for Risk, Age and Criticality.
Calculations of the operations and capital maintenance
10-year gap (Billions)
Physical condition Assets at risk Age Critical assets Available Funding
(estimated) $4B $4B $4B $4B
Value of assets requiring
attention $(3.3B) $(4.2B) $(3.2B) $(3.6B) Deterioration estimate
(straight line $50B over
63 years) $(8B) $(8B) $(8B) $(8B)
Gap $(7.3B) $(8.2B) $(7.2B) $(7.6B)
All these indicators of infrastructure asset status show a multi-billion dollar investment deficit of approximately $8 billion over the next 10 years on maintenance of infrastructure alone (approximately $800 M/yr.).
Despite a current investment of almost two per cent of CRV and the relatively good condition of City assets, maintenance costs will increase significantly over the next decade as assets pass through middle age. The maintenance backlog will begin to grow at an accelerated rate in the near future. The rate will further accelerate with inflation, growth and annexation, and the costs associated with environmental legislation.
Unfunded
The infrastructure gap is growing due to cost escalation of previously identified capital investment projects and the addition of new capital growth projects required to sustain service levels given dramatic increases in Calgary’s population.
Capital budget conclusions
The link to the budget
The City has an infrastructure gap of $8.2 billion - an estimate based on growth projections and predicted asset maintenance requirements. This indicates over the next 10 years, The City may need to spend an additional $820 million on infrastructure per year.
Funds have been allocated in disproportion to the physical condition of a business unit’s assets. For example, Corporate Properties and Buildings assets, which are in poor condition, represent 13 per cent of The City’s poor to critical assets. They are worth $420 million. However, only two per cent or $90 million of The City’s capital maintenance and operational maintenance is spent on this infrastructure.
On the other hand, Roads currently has 14 per cent ($460 million) of The City’s poor to critical assets and the full 14 per cent ($705 million) of available funds over the next 10 years have been allocated to Roads for operational and capital maintenance.
According to the capital budget over the next five years, The City will be spending 62 per cent ($4.7 billion) on growth and service level projects and 38 per cent ($2.9 billion) on maintenance and upgrade projects. If we look at our condition indicators, we need to spend 27 per cent ($1.2 billion) for growth and 73 per cent ($3.2 billion) for maintenance. Percentage-wise, this is the exact opposite of what we are spending. This, however, does not take into account the overlap in projects in which growth actually solves a maintenance problem.
Shortfall (Gap) capital MTCE $(millions) $1,592.84
20%
Shortfall (Gap) operating $(millions)
$520.02 6%
Shortfall (Gap) capital growth $(millions) $6,043.50
74%
Key performance indicator Gap
2004 2005 2006
Budget comparison of infrastructure investment
($ millions) Funded Funded operations (Excluding utilities and wages) Funded capital growth Funded capital maintenance 1 Civic Partners* $116.08 $217.35 $7.77 2 Corporate Properties & Buildings $83.00 $253.96 $6.00 3 Emergency Medical Services $0.65 $ - $14.944 Fire $87.78 $13.60 $187.12 5 Fleet Services $325.00 $30.00 $214.10 6 IT $ - $ - $68.53 7 Parks $306.05 $15.60 $65.09 8 Police $84.72 $36.35 $93.41 9 Recreation $21.96 $28.67 $98.20 10 Roads $567.80 $1,214.01 $137.51 11 Transit $10.97 $557.61 $154.30 12 Waste Management $ - $41.38 $78.89 13 Water $151.67 $1,348.04 $1,127.98 Totals $1,755.70 $3,756.57 $2,323.85 Unfunded Shortfall (gap) operations Shortfall (gap) capital growth Shortfall (gap) capital maintenance 1 Civic Partners* $63.14 $506.81 $21.22
2 Corporate Properties & Buildings $93.79 $1,293.09 $276.00
3 Emergency Medical Services $3.31 $15.50 $11.85
4 Fire $23.34 $159.00 $163.45 5 Fleet Services $ - $ - $ -6 IT $ - $ - $29.82 7 Parks $90.39 $38.31 $232.52 8 Police $5.05 $465.00 $22.07 9 Recreation $0.80 $327.86 $5.45 10 Roads $238.47 $2,582.83 $334.06 11 Transit $1.72 $505.10 $394.42 12 Waste Management $ - $150.00 $102.00 13 Water $ - $ - $ -Totals $520.02 $6,043.50 $1,592.84
Recommendations
Infrastructure Services supports the current allocation of revenues as shown in the capital and operating budgets, but stresses the need to re-adjust the budget to address unfunded capital maintenance. Needed adjustments will be identified once the Corporate Asset Management program has worked with all City business units to implement business processes to identify critical assets and asset managers will be encouraged to focus expenditures on critical assets.
Infrastructure Services will focus on improving the data being reported in the Infrastructure Status Report. Not all asset managers are currently using the reporting framework. Lack of standardization to report budgetary requests reduces the efficiency of Council to strategically, and with forethought, allocate citizen tax dollars.
The Infrastructure Status Report also recommends that the Corporate Asset Management program:
• Investigate the potential re-adjustment of revenue sources and use long-range economic modeling and life cycle cost analysis to forecast results of re-adjusting revenues.
• Focus efforts on defining levels of service, condition and performance targets for all lines of business and further refining and identifying the costs of providing those services. This will help determine if The City is getting the most value from its assets, and helps determine whether the asset is sustainable.
• Support and integrate with other short-term planning initiatives such as Business Planning Budget Co-ordination, the integrated risk management program and critical asset identification being led by Corporate Security and Law.
• Support and integrate with planning and strategy efforts for long-range City planning and visioning including imagineCALGARY and
Infrastructure gap conclusions
Impacts of cost escalation on the infrastructure gap
Given the data from Alberta Infrastructure dated March 1, 2007, building infrastructure is expected to increase in cost by 23 per cent this year. Highway infrastructure is expected to increase 25 per cent. Given escalating costs, the following graph shows two potential growth scenarios of the infrastructure gap over the next 10 years. Note: the gap will have grown substantially to $14 billion if the cost escalation estimates are correct. Meanwhile, in 2016, a dollar is expected to buy only 60 per cent of what it could buy in 2007. Completing the projects earlier is preferred as a less costly alternative over the 10-year period.Cumulative cost escalation
Recommendations from gap conclusions
Infrastructure Services expects that a 10-year, four billion dollar shortfall can be covered by other levels of government, other sources of income and fiscal policy changes.
However, Infrastructure Services concludes that anything beyond four billion is unsustainable and should be addressed through demand management options and alternative service delivery.
There is a need to address the shortfall by securing additional resources and pursuing creative planning and engineering management decisions.
$0 $2 $4 $6 $8 $10 $12 $14 $16 $18 2007/ 2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 Cumulative consumer price index gap Cumulative escalation gap
(front loaded projects) Cumulative escalation gap
Critical Assets
($ millions) Critical asset value Total replacement value Critical asset value per centof total asset value
1 Civic Partners* $569.07 $1,167.04 49%
2 Corporate Properties & Buildings $147.89 $817.24 18% 3 Emergency Medical Services reportedNot reportedNot
4 Fire $63.94 $234.45 27% 5 Fleet Services $15.00 $200.00 8% 6 IT $ - $133.56 0% 7 Parks $ - $1,203.32 0% 8 Police $184.66 $279.21 66% 9 Recreation $ - $432.76 0% 10 Roads $186.13 $11,418.46 2% 11 Transit $1,400.43 $2,484.42 56% 12 Waste Management $19.66 $75.37 26% 13 Water $956.00 $30,773.36 3% Total $3,542.79
Asset condition
($ millions)Poor to critical
physical condition Total
1 Civic Partners* $230.25 $1,167.04
2 Corporate Properties & Buildings $422.48 $817.24
3 Emergency Medical Services $0.79 $4.45
4 Fire $76.78 $234.45 5 Fleet Services $84.00 $200.00 6 IT $0.99 $133.56 7 Parks $99.65 $1,203.32 8 Police $40.58 $279.21 9 Recreation $41.27 $432.76 10 Roads $460.61 $11,418.46 11 Transit $336.60 $2,484.42 12 Waste Management $13.55 $75.37 13 Water $1,472.82 $30,773.36 Total $3,279.58
Asset Value Under Risk
($ millions)Severity
level 500 Total
1 Civic Partners* $506 $1,167.04
2 Corporate Properties & Buildings $ - $817.24 3 Emergency Medical Services Not reported Not reported
4 Fire $168 $234.45 5 Fleet Services $15 $200.00 6 IT $ - $133.56 7 Parks $ - $1,203.32 8 Police $139 $279.21 9 Recreation $ - $432.76 10 Roads $2,202 $11,418.46 11 Transit $1,123 $2,484.42 12 Waste Management $66.87 13 Water $ - $30,773.36 $4,153
Appendix I
The state of asset management at The City of Calgary
The City of Calgary is under pressure to keep pace with the rapid growth Calgary is experiencing. The City’s infrastructure is aging — the majority constructed during the economic growth period from the 1960s to the mid-1980s — and population growth and increased economic activity
are challenging the capacity of existing infrastructure to meet the increased demand.
More stringent environmental requirements and rapidly increasing
construction costs are putting increasing pressures on the already limited funds for infrastructure investment. A prolonged and serious funding shortfall creates a backlog of priority projects that will eventually affect The City’s ability to deliver quality public service to its citizens.
A corporate-wide infrastructure asset management strategy is one of The City’s key corporate initiatives to address Calgary’s growing infrastructure needs and is crucial for effective service management by the Corporation.
The evolution of Calgary’s asset management strategy
Asset management, in the broadest sense, can be considered to be the effective management of all tangible and intangible assets The City of Calgary uses to enable service provision. It includes human asset management, data asset management and infrastructure asset management. As a business practice, asset management is based on the underlying philosophies of Triple-Bottom Line, Risk Management and Life Cycle Costing, among others.Infrastructure asset management is an emerging and quickly evolving field that is proliferating at both the strategic and operational levels at The City of Calgary.
Operational infrastructure asset management
Operational infrastructure asset management is quickly being adopted by many capitally-intense service providers within The City of Calgary. These business units, including Utilities, Roads, Parks, Recreation, Fire and Corporate Properties, use operational asset management techniques to provide work and maintenance management, to manage and plan for infrastructure condition and functionality, and to develop capital and operating budgets for their specific service areas. The development and adoption of operational asset management best practices and processes are at various levels and degrees of implementation and operation, depending on the business unit.
Strategic infrastructure asset management
Strategic infrastructure asset management is emerging as a suite of corporate-wide business planning processes, systems and tools that integrate the capitally-intense operational business units. The objective of strategic infrastructure asset management is to ensure the sustainability of service provision through the strategic management of infrastructure assets by mid- and long-term infrastructure planning and life cycle forecasting, and linking infrastructure and financial policy.
Corporate asset management: linking operational
asset management, planning and finance
In recent years, a need was identified for a co-ordinating business link between the many operationally focused asset managing business units and strategic, mid- to long-range planning and financial functions.
Infrastructure Services, and more specifically Corporate Asset Management, has emerged to become a corporate function that spans all capitally-intense service providers. This is analogous to how Information Technology spans the corporation to manage and continually improve on The City’s information systems, processes and data.
The Corporate Asset Management division within Infrastructure Services provides direction regarding strategic infrastructure asset management by leading the Corporate Asset Management program. Its objectives are to:
• Provide Council and senior management with information that supports infrastructure decision-making.
• Provide analysis of the corporation’s infrastructure assets as an integrated whole.
• Recommend new corporate infrastructure strategies and policy.
• Explore alternative new funding and implementation approaches to deal with the infrastructure gap.
To enable these objectives, Corporate Asset Management is directly responsible for the following:
• To implement and continually improve corporate-wide strategic infrastructure asset management business processes, tools and information systems.
• To work closely with City business units to develop and implement operational infrastructure asset management best practices and competencies.
• To liaise with external stakeholder groups, national infrastructure practitioners and other levels of government to continually develop new infrastructure policy, guidelines and best practices.
The three-year strategic infrastructure asset
management business process
To provide timely, accurate and relevant information to Council and senior management from operational infrastructure asset management business units, developing a strategic infrastructure asset management business process is imperative.
The three-year, Strategic Infrastructure Asset Management (SIAM) business process links the various operational infrastructure asset management programs to other corporate-level business planning and financial decision-making and reporting processes such as the multi-year Business Planning and Budget Creation process, the Long-Range Financial Plan and the Public Sector Accounting Board (PSAB) Tangible Capital Asset process. Furthermore, this process facilitates the transfer of information from these operational infrastructure asset managing areas into long-range planning initiatives, including imagineCALGARY and Sustainable City.
Similar to most strategic business processes, the SIAM business process is based on the premise of plan – do – check. In that sense, the three key deliverables for the Corporate Asset Management Program, within the SIAM business process, are as follows:
• Departmental and Corporate Asset Management Plans (including 100-year infrastructure life cycle sustainability forecasts and 10-100-year capital investment plans), to support short-term budget decisions.
• Three-year capital and operating budget priority lists, which link via the Infrastructure Co-ordinating Committee decision-making process to the capital and operating budgets.
• Annual infrastructure status reporting and performance measurement.
The Infrastructure Status Report
The Infrastructure Status Report (ISR) is an annual, key deliverable of Corporate Asset Management within the strategic infrastructure asset management business process.
The primary objective of the ISR is to provide Council and senior
management with information that supports infrastructure decision-making. More specifically, the ISR is the Corporation’s infrastructure business intelligence dashboard which closes the infrastructure business planning loop. It compares infrastructure performance against business environment indicators and financial trends and presents the expected future effects on service targets and financing levels. It provides a 10-year outlook for infrastructure performance, which aligns with the 10-year infrastructure capital plans within Departmental Asset Management Plans.
Thus, the ISR is used to make minor annual adjustments to service targets previously set in the three-year asset management plans and to provide guidance for setting service levels for each subsequent three-year infrastructure Asset Management Plan.
In the first quarter of 2005, Asset Management & Capital Works presented Report LAS2005-28 entitled Corporate Asset Management Strategy and Infrastructure Status Update to the Land and Asset Strategies Committee. “Calgary’s Asset Management Strategy” identified 11 essential elements of an effective asset management strategy. Four of the elements highly relevant to the Infrastructure Status Report are:
• . . . The City of Calgary maintains an accurate and consistent inventory for all municipal infrastructure.
• Continual infrastructure status reporting and improvement of the accuracy of the replacement value of our assets … for the development of annual budgets and infrastructure investment.
• Integrated infrastructure risk assessment framework for all levels of infrastructure decision-making. Asset stewards should understand the acceptable risk tolerance when making infrastructure investment decisions.
• Benchmarking to measure infrastructure performance … provide the standard to which we will measure our infrastructure’s performance over time…
The Infrastructure Status Report (ISR) has responded to the need for continual reporting on infrastructure assets by being updated annually since 2003. The report provides Council and the Administration with:
• A reference to benchmark infrastructure needs.
• A tool to identify short- and long-term investment shortfalls.
Appendix II
Business unit summary
General assessment of infrastructure
Most of The City’s infrastructure was constructed during the high
economic growth period from the 1960s to the mid-1980s. However, some infrastructure elements, such as sewers and waterworks distribution, were constructed as long ago as the early 1900s. In the current environment, we are adding significantly to our infrastructure.
Many infrastructure elements are approaching the latter half of their expected life and, as such, the physical condition will further deteriorate in the coming years. At the same time, population growth and increased economic activity are challenging the capacity of existing infrastructure to meet the increasing demands. Community expectations are also changing to meet the functional and program needs of citizens.
The following provides a general assessment of the state and condition of The City’s infrastructure and the demands placed upon them.
Utilities & Public Works
Water Services
The Water Services business unit is responsible for the operation and maintenance of all water, wastewater and drainage infrastructure in The City of Calgary. Water Services is also responsible for the collection, transmission, treatment and disposal of all wastewater and stormwater generated in Calgary.
Water infrastructure includes two water treatment plants and a distribution network of reservoirs, water pump stations, pipes and service connections to deliver water to customers. The business unit also operates the Glenmore Dam which stores raw water in the Glenmore Reservoir. This infrastructure includes two wastewater treatment plants, lift stations, sanitary and storm water pipes, wet ponds and wetlands. The two wastewater treatment plants are not new, with most plant equipment approximately 25 to 30-years old. The plants have been well-maintained and have undergone extensive upgrades in the last few years.
Water Services
Water Services extracts water from the Bow and Elbow rivers, produces potable water and distributes this water to residential, commercial and industrial customers in Calgary, Airdrie and Chestermere Lake.
Waste & Recycling Services Services provided: • Waste collection. • Waste treatment. • Environmentally sustainable landfills, composting and waste transfer facilities. Waste & Recycling Services assets Three major landfill sites. Administrative and vehicle storage/maintenance facilities at five different works centres. Various equipment and vehicles (corporate asset) utilized for residential, container and recycling collection. Fifty distributed community recycling depots.
Key issues and challenges
Water Resources plans, develops and constructs new infrastructure. The two water treatment plants, Glenmore and Bearspaw, are currently undergoing a series of upgrades to be completed in 2011. A new
wastewater treatment plant, Pine Creek, is under construction with the first phase expected to be operational in 2008. Rapid growth of Calgary has also created a need for aggressive construction of new feeder mains, reservoirs, pump and lift stations, storm and sanitary force mains and trunks.
Challenges and mitigation plans
Some $290 million per year is currently being budgeted to keep up with the pace of maintenance, upgrades and new development for all infrastructure. Continuing to adapt to rapidly-increasing construction costs is a major challenge.
Our water and wastewater systems face an increasing need for investment to service growth, to rehabilitate its aging infrastructure and to meet growing environmental demands. This need is being addressed with the 10-year forecasts that support the three-year budgeting process.
Waste & Recycling Services
Waste and Recycling Services’ vehicle and equipment storage facilities are now 30-years old and require upgrading and expansion. The Shepard facility also requires complete replacement. Furthermore, the proposed new Shepard works depot will enable the development of an expanded 52nd Street S.E. corridor.
All of the landfill site entrance ways, including the scale house facilities, require upgrading and relocation to meet increased customer traffic demands and as a response to major revisions to the adjacent roadway network.
Whereas the original landfill sites were relatively isolated from development, the rapid city expansion surrounding all three locations has resulted in a contingent liability relating to Waste & Recycling Services’ share of the adjacent roadway upgrades and acreage assessment fees. The pressures of adjacent development require diligence in protecting landfill development setbacks on private land holdings required under legislation.
Waste & Recycling Services continues to raise landfill sites operating standards resulting in both increased operating costs and capital
investments. Major investments in stormwater management control facilities commenced in 2005 and costs peaked in 2006. Notwithstanding additional stormwater management, investments will continue to be necessary into the future.
Through the Infrastructure Canada Alberta Partnership, Waste & Recycling Services started development of the first landfill gas-to-energy systems at two of the major landfill sites. While the first phase of development was completed in early 2006, expansion of the systems will be necessary as the sites continue to accept waste, which will also increase the overall operating costs.
The landfill gas-to-energy systems represent major opportunities to reduce Calgary’s environmental footprint. A significant component of The City’s greenhouse gas reduction initiatives is represented by capturing and producing electrical and heat energy through the long-term generation of methane as a byproduct of waste decaying within the landfill.
As large sections of the three landfill sites are closed, ongoing maintenance, monitoring, leachate and landfill systems operations and maintenance, as well as selected remediation will be required. Waste & Recycling Services is also responsible for the maintenance, monitoring and selected remediation of former, closed landfill sites.
In the early 1990s, a Landfill Closure Reserve was established, financed by the ongoing landfill disposal revenues. The adequacy of these reserves is reviewed every few years. Significant expenditures have been made in this area in recent years. Remediation of the former Nose Creek landfill site as the next major project will require new funding over and above current reserve availability.
Significant changes to Waste & Recycling Services’ collection fleet are constantly implemented. The development of a new GIS-based routing system and higher capacity vehicles has allowed Waste & Recycling
Services to reduce annual travel distance from two million kilometers to less than 1.5 million kilometers.
Waste & Recycling Services has introduced biodiesel fuel usage as a first, large-scale corporate trial into the application of alternative fuels as part of The City’s Green Fleet initiative. In conjunction with this initiative, Waste & Recycling Services is extending the amortization period for the capital fleet costs to eight to 10 years from six to eight years. This introduces a potential financial risk whereby the advantage of lower annual capital carrying costs may be offset by higher maintenance costs as the vehicles reach the end of their economic life.
Overall, Waste & Recycling Services is recommending, in response to increasing public demand, the implementation of new recycling and waste reduction services. In 2007, City Council approved a recommendation to implement city-wide curbside recycling. No curbside organics are included at this time.
Roads
Services provided:
• Assess, design and optimize permanent and temporary traffic controls.
• Maintain and operate street lighting and traffic controls. • Infrastructure repair and
life cycle maintenance of structures, roadways, sidewalks and other roadway assets.
• Roadway services such as street cleaning and snow and ice control.
• Review new road infrastructure designs, monitor quality and manage delivery processes
(e.g. local Improvements and new subdivisions).
Roads assets Systems
• 7,042 lane km local roads • 2,711 lane km collector roads • 2,879 lane km arterial roads • 6,057,447 m2 sidewalks • 2,129,000 m pavement markings • 6,537,000 m streetlight wires Structures • 161 vehicular bridges • 117 pedestrian bridges • 93 other (LRT, rail subways
and parks)
• 122,000 traffic signs • 3,070 traffic signal poles • 280 pedestrian corridors • 69,297 streetlight poles • 78,921 lamps
Machinery & Equipment • 793 traffic cabinets • 534 streetlight cabinets
Transportation
Roads
The business unit launched an Asset Management (AM) program, called RAMP, to improve AM processes across Roads. This includes
standardization of processes, implementing a centralized information system and co-ordinating the implementation of asset management best practices. In addition, several Roads divisions have strengthened their AM processes by appointing life cycle technicians, increasing the frequency of inspections, improving the consistency among inspectors, enhancing asset analysis and improving decision-making processes.
The business unit received additional capital funding (e.g. pavement overlays) in recent years and has used it to improve its maintenance practices by addressing the root causes of failures. For example, we are able to repair not only the pavement surface but also the foundation where warranted. This additional capital funding is for a limited-term only.
Roads is also improving many of its other services to Calgarians, notably in the traffic management area. The business unit recently added a Traffic Management Centre and will further improve traffic management through improved communication to the public, and with the use of advanced technologies like a dynamic message board, cameras and the Internet. Proper asset management can increase the life of assets and reduce their overall costs. However, additional money is still needed to address the current infrastructure gap and the rapid aging of assets. In 2005 and 2006, additional money was available for concrete replacements, local improvements, pavement overlays and smaller structure replacements. There is considerable potential to secure some funding from the province. Although this allows Roads to maintain more of its infrastructure, it is inadequate to significantly catch up on the maintenance backlogs. The overall infrastructure condition continues to decline.
Roads has reduced its level of service for snow and ice control, sweeping and maintenance of certain assets due to budget reductions. Environmental protection measures, such as stormwater controls and reduction in volatile organic compounds in paints, have increased the maintenance cost of assets.
The record level of residential development has resulted in a significant increase in assets being maintained by Roads. Operating budgets have not kept pace with growth in the asset base. As a result of insufficient maintenance, we will not optimize the life cycle costs which will hasten the required replacement of assets.
Calgary Transit
In 2006, Calgary Transit carried 89.7 million passengers. The primary factors driving demand for service are population growth, increased employment, the cost of operating a private auto (e.g. fuel costs and downtown parking charges) and expanded transit services.
Key issues and challenges
Transit faces a number of key issues and challenges that span the 2006 to 2008 operating budget and includes increasing bus, CTrain and community shuttle service by adding 99,000 hours in 2006, 119,000 hours in 2007 and 142,000 hours in 2008. In this same period, plans include adding 40 new CTrains, 156 buses, 12 articulated buses and 73 community shuttles. Two new CTrain stations will open in the Northeast (2007) and Northwest (2008). Ridership increased at double the rate of population growth and has outpaced increases in service hours and fleet expansions. This has led to capacity problems during peak periods and is constraining ridership growth. The 2006 Customer Satisfaction Survey showed that 70 per cent of Transit customers are “choice” riders who have access to a private auto but instead choose transit. Recent satisfaction surveys confirm that investment in increased transit service is a high priority for Calgarians. Crowded travel conditions are deterring riders from using the system and discouraging new riders.
Critical capacity issues must be addressed to prevent “choice” riders from reverting to other transportation modes and to continue to attract new customers.
Calgary Transit requires sustainable funding for capital expenditures to accommodate increasing demand and city expansion. Much of Calgary Transit’s fleet and physical plants have been built or acquired since 1980. Infrastructure maintenance costs have been relatively stable. However, a number of key assets are old and require more maintenance and, in some areas, replacement of crucial, high-cost components is needed to maintain service.
The need for capital funding to support life cycle maintenance is becoming increasingly critical to address system components such as LRT infrastructure (track, switches, signals, power supply, communication, stations, etc.), garages (roofs, doors, hoists, electrical, etc.) and
refurbishment and replacement of the original light rail vehicles. Increased capital funding to address these issues is currently being reviewed in response to new infrastructure funding programs recently announced by the provincial and federal governments.
Calgary Transit assets Buildings
• Five (5) vehicle maintenance and storage facilities Systems
• Ninety-four (94) km of track work
• Overhead catenary (traction power) • Signaling systems Structures • Thirty-six (36) LRT stations • Twenty-eight (28) power substations
• Fifty-two (52) parking lots/bus shelters/bus loops
• Six (6) tunnels • Seventeen (17) bridges • Over 5,000 bus stops Machinery and Equipment • 119 LRVs
·• 839 buses
Parks Parks services: • Plans, develops and
maintains the integrity of a high-quality and diverse park and open-space system. • Protects and enhances the
urban forest and natural environment areas. • Provides environmental
stewardship, education, programs and services. Parks assets
Land
• Turf, trees and shrub beds. Buildings
• Buildings, pan abodes and picnic shelters.
Note: a few buildings out of which Parks operates are owned by Corporate Properties or Recreation and are not included on this list. Systems & Structures • Pathways, trails, roadways,
parking lots/other hard surfaces and irrigation systems.
Note: although sidewalks adjacent to park sites are maintained by Parks, they are owned by Roads and are not included on this list.
Machinery and equipment Note: most major machinery, vehicles and equipment used by Parks are owned by Fleet and are not included on this list.
Community Services and Protective Services
Parks
Park’s strategy for its capital assets has been to maintain the proper balance between the maintenance of existing infrastructure and meeting the service needs for new capital growth. For existing assets, Parks is intent on bringing all current core infrastructure serving the public to a minimum C rating (i.e. yellow) with no D or F (i.e. red) ratings within the next five years.
For new assets, Parks has implemented strategies to accommodate growth by setting targets for new infrastructure, primarily in new, developing communities. In addition, Parks is developing a comprehensive land strategy to acquire, utilize and dispose of park lands.
Significant growth, especially in the suburbs, led to a substantial increase in open-space with more unique and varied assets being turned over from developers. Until very recently, maintenance budgets have not kept up with this growth. This lack of funding, coupled with an aging infrastructure and increased park and amenity use due to a growing population, resulted in reduced maintenance and an increase in the deterioration of Park assets. In addition, changing demographics, recreational trends and citizen expectations increased demands for certain amenities and services provided while reducing them in other areas.
Recreation
Recreation’s mandate is to enhance the quality of life for Calgarians by planning for and enabling accessible recreation and leisure opportunities in the community to promote personal growth and well-being.
Recreation currently has 61 buildings within their control as indicated under our list of assets. There is an annual life cycle inspection of each building. Recreation would like to maintain its buildings at a minimum of level B. Currently 30 of the 61 buildings (49 per cent) are rated A or B with the remainder at C or D. The Culture, Parks and Recreation Infrastructure Investment Plan (CPRIIP) report identifies issues such as renovations, upgrades, new facilities and increased life cycle funding to improve the level C and D buildings. Two projects that were identified in the 2005 CPRIIP list have been approved for funding. Eight million dollars has been allocated in 2007 and 2008 for maintenance and upgrade improvements for each of Southland and Village Square Leisure Centres.
In addition to the list of projects on CPRIIP, a comprehensive annual life cycle program is in place for all Recreation buildings. Even though there was an increase in funding for 2007 and 2008, base funding levels do not meet the needs of the business unit. Therefore, life cycle resources need to be distributed on a priority basis. This has resulted in customers noticing a decrease in the attractiveness and functionality of the facilities and a reduction of customer loyalty. Should these buildings not be properly maintained, there will be impacts to current service levels.
Recreation Services provided:
• Developing public facilities such as recreation centres, golf courses, pools, fitness centres, arenas and athletic parks. • Directing operation of
recreation facilities. • Providing recreational, art,
cultural, and sport programs. • Liaison and support to partner
groups who offer an array of public services such as art, culture, sport, recreation, business and economic development and attractions. • Consulting services to
community groups and organizations who offer leisure services.
• Provide support for not-for-profit recreation organizations. Recreation assets
• Fourteen (14) ice arenas • Two (2) multi-use leisure
centres
• Two (2) art centres • Glenmore reservoir facility • One (1) sailing school/boat
patrol site
• Twenty-one (21)pools • Six (6) athletic parks • Five (5) golf courses • Four (4) associated facilities
Key issues and challenges
Some of the challenges facing Recreation are:
• An aging infrastructure that requires more resources to maintain current levels of service.
• Some facilities are moving past their useful life cycle and require re-development.
• Lack of new facilities in growth sectors of the city. • An increase in customer demands and expectations.
• Changing legislations and regulations regarding building operations (i.e. Safety & Enviro systems).
• Available land opportunities for new facilities.
• Service maintenance contract fees escalating beyond inflation.
Some mitigating strategies for Recreation include:
• The Culture, Parks and Recreation Infrastructure Investment Plan (CPRIIP). • The Facility Management Framework Project.
• An increase in funding from Council for Recreation lifecycle (CP 1.8). • The possible conversion of facilities into alternative uses.
• A comprehensive annual life cycle plan for Recreation. • Possible closure of some facilities.
Emergency Medical Services
The primary focus of Calgary Emergency Medical Services (EMS) is to provide emergency medical care and transport to the citizens of The City of Calgary.
Key issues and challenges
EMS challenges include:• The lack of an asset management tool.
• Staffing issue to manage the business unit’s assets.
• Increasing growth requiring capital to be applied to new equipment. • Lack of budget for life cycle and maintenance.
EMS is moving forward this year to implement a tool and dedicate some staff hours to management of assets.
Emergency Medical Services
EMS services include:
• Advanced Life Support, with 22 emergency units 24 hours per day and 17 peak time units for 12 hours per day. • Incident Response
Paramedics to respond to Hazmat, CBRN, MCI and other large- scale events. • Tactical Medics who train
and respond with the Police Tactical Units.
• Health and Wellness clinics for City employees. • Calgary Airport Terminal
Medics on mountain bikes. • First aid and CPR courses. Emergency Medical Services assets
Machinery and Equipment The EMS assets consist mainly of medical equipment, communication equipment and office furniture. Buildings are mainly managed by Corporate Properties, and vehicles by Fleet.
Calgary Fire Department Calgary Fire Department
Services include.
• Emergency protection and response.
• Emergency and disaster preparedness.
• Prevention of burn, fire and injury programs.
• Fire inspections and investigations.
• Community blood pressure and cholesterol program. Calgary Fire Department assets
Buildings includes 32 stations,
EMS Geopost, Emergency Operations Centre,fire inspectors offices, Fire Training Academy, Fire Headquarters, vehicle maintenance/testing shop and Wellness/Recruitment Centre.
Machinery and Equipment
includes 83 heavy apparatus (pumpers, tankers/ladders and emergency response units), 123 light duty vehicles, 2,500 units of life safety equipment, 13,372 pieces of equipment including life safety and personal protective equipment.
Calgary Fire Department
The City of Calgary Fire Department (CFD) Infrastructure Services, Facilities Management section is the steward of an asset base worth over $166 million including 32 fire stations, fire prevention bureau building, headquarters, training academy, emergency operations centre, vehicle maintenance and testing shop, and a wellness and recruit building.
Our primary role is to ensure that the assets are functional and performing to meet the needs of the users. The facilities team identifies the resources required to implement a life cycle inventory asset management program for these facilities and to meet the need for capital replacement relating to the level of preventative maintenance that is completed for the safe and proper operation of these facilities.
Heavy- and light-duty vehicles are equipped with a variety of life safety equipment essential for the safety of all Calgarians as well as City firefighters. The vehicle maintenance shop has an asset base worth over $51.67 million and Equipment & Supply has an asset base worth $16.92 million.
The Calgary Fire Department (CFD) requires reliable, safe, functional
infrastructure that supports the work of front-line emergency responders and protects citizens. In 2006, 1,156 fire personnel in 32 stations and divisions responded to 41,043 calls, presented safety programs to 14,297 Calgarians and provided essential training and support to front-line emergency
personnel.
Sustainability is the CFD’s top challenge, and the $57.2 million in capital funding for 2006-2010 recently approved by City Council will help address CFD’s highest priority infrastructur
