Asset Management Plan 2015
Facilities and Transit
Submitted by
Prepared for
Section 1
Executive Summary
Table of Content
Section 2
Introduction
Section 3
State of Local
Infrastructure
Section 4
Expected Levels of
Service
Section 5
Asset Management
Strategy
Section 6
Financing Strategy
Section 7
Plan Improvement
and Monitoring
Appendices
Asset Management Plan Contents
Executive Summary
Table of Content
Executive Summary
The Town of Milton (Town) has been identified as the fastest growing municipality in Canada in recent years, based on the 2006 and the 2011 censuses. As a result of this growth, infrastructure has been constructed to accommodate the new residents and businesses, so as not to impact on the current level of service received by the rest of the community.
This version of the Asset Management Plan (AMP) includes information related to the Town’s Transit and Facility assets. As of February 2015, these assets had a replacement value of $8M and $224M respectively and make up approximately 18% of the total net book value of all of the Town’s assets, excluding land. These assets are an important part of the infrastructure asset base that contribute to the Town’s strategic goals. The Town will continue to produce AMP’s for other asset classes owned by the Town.
Under the Province of Ontario’s Municipal Infrastructure Investment Initiative (MIII), municipalities are required to submit a detailed AMP in order to qualify for Provincial grant program funding. The Town’s AMP has been developed to meet, as a minimum, the requirements set out in the Ministry of Infrastructure report Building Together: Guide to Municipal Asset Management Plans which includes content in Table 1.1 below.
TABLE 1-1: AMP CONTENT BUILDING TOGETHER - GUIDE TO MUNICIPAL ASSET MANAGEMENT PLANS
Part Title Content
1 Executive Summary Provides a succinct overview of the AMP, highlighting major points.
2 Introduction Provides an overview of asset management within the Town and sets the overall context and expectation for the report.
3 State of Local Infrastructure
Presents information on the asset portfolio including inventory, condition, cost, etc. accompanied by information on supporting data.
4 Desired Levels of Service
Describes how service is linked to infrastructure investment and defined how service is measured and how performance goals and expectations are identified and set. 5 Asset Management
Strategy
Sets planned actions that will enable the assets to provide the desired levels of service in a sustainable way, while managing risk, at the lowest lifecycle cost (e.g. through preventative action).
6 Financing Strategy Identifies lifecycle investment requirements and appropriate funding strategies for completing the work.
In addition to the six sections detailed above, this AMP also includes a seventh section – Plan Improvement and Monitoring, which focuses on the Town’s continual improvement of its asset management practices. The AMP contains strategic information that integrates with other corporate planning documents such as:
• Town of Milton Official Plan – The AMP will utilize and influence the land use policy directions for
long-term growth and development as outlined in the Official Plan.
• Long Term Fiscal Impact Study – The AMP will utilize as well as guide long term financial forecasts.
• Annual Budgets – The construction, operation, maintenance, rehabilitation, replacement, expansion and
disposal of assets, as identified in the AMP, will be considered in development of the annual capital and operating budgets.
• Facility Infrastructure Audits – Regular Facility Infrastructure Audits will inform the AMP with regards to
• Business Plans and Manuals – The AMP is based on service levels, policies and processes as identified in various business plans and manuals and will be used in the development of future business plans, performance measures and strategic decision making.
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State of Local Infrastructure (Section $)
The Town owns 36 facilities with a current replacement value of $224M, and 56 transit assets with a current replacement value of $8M. The condition of the assets has been rated using the Canadian National
Infrastructure Report Card (NIRC) 5-point scale.
A summary view of the condition of the Facilities assets in the Town covered in this version of the AMP is provided in Figure 1.1. The condition grades assigned to each facility pertains to the facility as a whole, as opposed to specific components within the facilities, such as HVAC, electrical etc. Based on the replacement value of the assets, over 80% of the Town’s facilities are rated to be Very Good or Good.
Condition data was not available for the Transit assets, and therefore an inferred condition grade was derived based on the age of the assets, compared with a typical useful life for that asset type. Based on this assessment approach, almost 70% (based on replacement values) of the Town’s Transit assets are rated to be Very Good or Good.
While the majority of the Town’s Facility assets are in Good or Very Good condition, when assessed at the Facility level, it should be noted that there are facilities that are rated as Very Poor (1 Recreation & Culture Facility), Poor (1 Fire Hall) and Fair (3 Recreation & Culture Facilities, 1 Operational Facility, 2 Leased Facilities and 1 Community Hall). These Facility assets will be assessed further to determine whether there are specific components that are resulting in a lower condition grade, or whether the grade is representative of the Facility as a whole.
FIGURE 1-1: FACILITIES CONDITION - OVERALL (BY REPLACEMENT VALUE)
FIGURE 1-2: TRANSIT ASSET CONDITION - OVERALL (BY REPLACEMENT VALUE)
It should also be noted that because of the significant growth Milton has been faced with over the past 15 years, many new facilities have been constructed to accommodate growth in service. Therefore, while the majority of Town facilities are in Good or Very Good condition, as they age, significant investments are going to be required to maintain the assets in a Good state of repair. This will be covered in more detail in future updates of the Plan.
Similar to Facility assets, while almost 70% of the Town’s Transit assets are in Good or Very Good condition, it should be noted that there are a number of specific assets that are rated as Poor (2 Support vehicles) and Fair (1 Portable Data System and 5 of the Towns 18 buses). The assets that are rated as either Poor or Fair are not necessarily providing a lower level of service than the other assets, as the Town selects a
maintenance regime that takes into account the assets age and is focused on maintaining service levels. For assets such as the Portable Data System, the assigned condition grade is just reflective of the assets age and while still fit for purpose, this grade does provide an indication of a future funding requirement.
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Expected Levels of Service (Section ')
The purpose of Levels of Service (LOS) is to measure the actual service delivered to customers, the community and the environment and to enable decisions to be made regarding the assets, based on the service that they provide rather than simply on their condition. This is often called a ‘serviceability’ approach and it aims to put the interests of the customer at the heart of decision-making. The Town currently
performs a hybrid approach to managing their assets including both condition based and serviceability based approaches but aims to transition to a serviceability approach.
Some of the more important factors affecting LOS that are considered by the Town include: • Strategic goals for the Town;
• Legislation and regulatory requirements; • Community expectations; and
• Affordability.
The Town reports a range of performance measures associated with its assets and service delivery, including the Municipal Performance Measurement Program (MPMP) and Budget Public Input Survey.
The Town is developing formal LOS measures which will be refined in future iterations of the AMP. At present, the LOS are expressed in terms of general trends upwards, downwards or stable assuming that budgets remain roughly at current levels over the next few years. A number of potential LOS measures have been developed for Facilities and Transit and details of these measures along with how the Town will likely perform against these measures over the Plan period, can be found in Section 4. A summary of the
Measure not currently developed Measure not currently developed 1 2 2 3 Measure not currently developed Measure not currently developed Measure not currently developed Measure not currently developed TABLE 1-2: POTENTIAL LEVELS OF SERVICE AND TRENDS
Value Facilities (Internal Customers) Facilities (External Customers) Transit Current Trend Future Trend Current Trend Future Trend Current Trend Future Trend Accessibility Reliability/ availability Quality/ Customer Service Safety Sustainability Legislative Notes
1. Measures are generally stable, but the % of bus stops that are accessible will increase over the Plan period
2. While customer satisfaction with the buses will continue to be stable, there has been a decline with regard to customer satisfaction with shelters, benches etc
3. The rate at which facilities are retrofitted for energy conservation is predicted to fall over the Plan period
.$ Asset Management Strategy (Section )
The purpose of the Town’s Asset Management Strategy is to evaluate current practices and establish future practices that will be cost effective, sustainable and enable the Town to deliver agreed LOS at an acceptable level of risk. The asset management strategy considers both asset and non-infrastructure solutions. These solutions can be used to address renewal, growth, improvement and maintenance needs and support the development of a transparent and defensible 10-year plan to sustainably enable growth and optimize the ongoing maintenance of the Town’s infrastructure, while continuing to meet agreed LOS.
The Town has a set of targets and goals that drive decision-making in the investment program in relation to Facility and Transit assets. These targets and goals have been categorized as Growth and Enhancement, and Renewals. With regard to growth, for the customer facing facilities, the key goals are that these facilities need to keep pace with population growth and provide quality community hubs.
For the Civic facilities and the facilities that house the Town’s employees the key goals are to maintain the safety and serviceability of these assets.
The Town’s current renewal practices and lifecycle improvement activities for facilities include: • Condition Assessments/ Facility Audits
Transit growth and enhancement in the Town is outlined in the Moving Milton Forward 2013 to 2017 Transit Master Plan for the Town of Milton. The Vision for Milton Transit over the next ten (10) years is to be an ‘essential part of the way Milton moves and grows’.
The Town’s current renewal practices and lifecycle improvement activities for transit include: • Preventative Maintenance; and
• Mid-life Refurbishment.
Future iterations of the AMP will seek to establish, in greater detail, whole life-cycle intervention options that provide the lowest capital and operational costs.
.' Financing Strategy (Section ()
A long term financing strategy is an important step in putting the AMP into action. A comprehensive financial plan that reflects the timely rehabilitation and maintenance of assets allows the Town to identify the financial resources required for sustainable asset management based on long term needs and desired LOS.
Currently there is a minor infrastructure deficit in the Town’s facilities, with one facility graded as Very Poor and having a replacement value of $37,000. In addition to those assets graded as Very Poor, the recent Facility Audit identified a range of assets requiring immediate work covering repair, replacement and inspection work totaling $171,400. This will include both OPEX and CAPEX funded work.
In addition, assuming that some, or all, of the Poor assets move into the Very Poor category over the Plan period, this would give a combined total of the assets requiring replacement or a major upgrade of $3.4M. For Facilities, the budgeted capital investment for Base Maintenance is adequate to meet the average annual asset need, assuming that the improvements to the Asset Management strategy are implemented. In addition the Town expects to grow further over the coming years. Therefore all of the pressures on the Town are acting to increase the requirement for Base Maintenance funding over the coming years. Future versions of the AMP will seek to further quantify this increased requirement for funding.
Currently there is a minor infrastructure deficit in the Town’s Transit assets, with those assets graded as Poor having a replacement value of $52,970. However, due to the short asset life of the majority of Transit assets, all of the vehicle assets that the Town currently owns, will move into the Very Poor condition category over the Plan period and will therefore require replacement in the Plan period.
The planned capital investment is sufficient to replace all of the assets that will reach the end of their useful lives over the Plan period, and to keep the overall asset stock in an acceptable condition. However, Reserves will need to be reviewed and set at a level to continue with this rate of replacement, while taking into account that the asset base is continuing to grow.
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Plan Improvement and Monitoring (Section ))
The AMP is a living document that will continue to reflect the evolution of asset management practices within the Town. A key aspect of good practice asset management is to continually evaluate, review and enhance its practices. This continual improvement approach will result in periodic updates to the AMP as a better understanding of the asset base and its needs is obtained. Some specific improvements related to Facility and Transit assets are detailed in Section 7.
Introduction
Since 2007, the Town has been identifying and valuing its assets in an effort to meet the requirements of the Public Sector Accounting Board (PSAB) 3150 requirements, which requires that asset information be
included on the financial statements from 2009 onwards. The next step is to use this information to begin managing the assets more efficiently and effectively in order to maximize the return on investment and ensure the assets are being used, replaced or rehabilitated at the optimal time in their life cycle.
This AMP has been developed following the provincial requirements as outlined in Building Together – Guide for Municipal Asset Management Plans and includes the following sections:
• Section 1 | Executive Summary • Section 2 | Introduction
• Section 3 | State of Local Infrastructure • Section 4 | Expected LOS
• Section 5 | Asset Management Strategy • Section 6 | Financing Strategy
• Section 7 | Plan Improvement and Monitoring
The Asset Management Plan (AMP) is a strategic document that will serve as a tactical plan and a financial plan to enable better management of the Town’s infrastructure and other assets to deliver the desired LOS.
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What is Asset Management?
Asset management (AM) is a systematic process that facilitates decision making in regards to the
construction, acquisition, operation, maintenance, renewal, replacement and disposition of assets in the most cost effective manner. Mandatory development of an AMP in the public sector requires a review of existing practices and preparation of documentation in a concise form.
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Assets Included in the Plan
This AMP includes information related to the Town’s portfolio of Facilities and Transit assets.
In terms of the Town’s Facilities assets, as of February 2015, these assets had a replacement value of $224M and the Transit assets have a replacement value of $ 8M. Together these make up approximately 18% of the total net book value of all of the Town’s assets, excluding land. These assets are an important part of the infrastructure asset base that contribute to the Town’s strategic goals. The AMP will be further developed in the near future to become a comprehensive document containing information on all assets owned by the Town.
. . Facilities
Summary: Facilities
• Total of 36 facilities
• Replacement value (2015) $224,277,000 • Net Book Value (2015) $140,776,555
The Town owns, operates and manages 36 facilities, classified into 6 different asset types: • Civic Buildings;
• Community Halls; • Fire Halls ; • Leased Facilities;
• Operations Facilities; and
• Recreation and Culture Facilities.
. . Transit
Summary: Transit
• Total of 56 transit assets
• Replacement value (2015) $8,028,579 • Historic value (2015) $4,000,066
The Town owns, operates and manages 56 Transit Assets, categorized into the following asset classes: • Transit Buses;
• Portable Data System; • Support Vehicles;
• Bus Pads and Amenities; and • Bike Lockers.
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How Infrastructure Supports the Town’s Goals
Municipalities are unique compared to most businesses in the sense that they provide a multitude of services. In order to effectively deliver services, a diverse portfolio of infrastructure assets is required. The Town is currently in the process of updating its Strategic Plan (Destiny Milton 3) and this will include the development of five new goals and associated actions. The goals/actions that are specifically supported by this AMP include:
Strategic Goal: Organizational Excellence
• Provide effective service delivery and improved efficiencies.
• Develop a Succession Planning Strategy to retain and attract a skilled and high performing staff team, minimizing risk of leadership vacuum and ensuring transfer of organizational knowledge.
Strategic Goal: Economic Growth
• Implement strategic initiatives to support economic growth.
Strategic Goal: Financial Sustainability
• Long range planning processes and the annual budget process should encourage decisions that support sustainability goals, including costs for full lifecycle of assets (short, medium and long term from initial acquisition to disposal), and preventative maintenance requirements, in making investment decisions.
Strategic Goal: Vibrant and Connected Community
• Coordinated, multi-modal Transportation Plan working with all levels of government.
• Work with partners to provide a range of quality programs and services that engage with, and respond to, the needs and expectations of our changing community.
• Safe, effective and efficient transportation options for the community.
• Work with surrounding municipalities and the Region to integrate and connect municipal transit systems and address Milton Education Village transit requirements.
The Town of Milton Official Plan (2008) includes specific goals and objectives for Facilities and Transit assets include:
Recreation and Culture Facilities:
• The provision of community and cultural facilities is essential for the achievement of a strong and healthy community which provides for all aspects of human life. The Town is involved in the provision of a range of recreational and cultural facilities. The programs and services are provided both directly by the Town and through partnerships with other agencies, groups and individuals.
Transit:
The Town's transportation system shall:
• Increase accessibility to major areas of employment, shopping and recreation, with an emphasis on accessibility by public transit;
• Promote and support integrated mobility; and • Target a high level of usage in the Urban Area.
The Town’s recent Community Services Master Plan Update, while focusing on a range of non-asset initiatives, such as the provision of programs and higher levels of customer engagement, does specifically refer to a number of Action Plans regarding the future provision of recreation facility assets, including:
• Designing future community centres in a manner that permits future facility expansions and conversions that respond to future trends, conforms to the Accessibility for Ontarians with Disabilities Act (AODA), integrates principles of CPTED (Crime Prevention Through
Environmental Design), considers green building designs integrating energy and water conservation measures, and seeks creative partnership opportunities in their construction and/or operation. New multi-use community centres should be located within reasonable proximity to major transportation spines including arterial roads, transit routes, and active transportation infrastructure.
• Better monitoring of existing facility usage, to inform the need for future facilities.
Asset Management will support delivery of these strategic and operational plans, through enabling a better understanding of the current lifecycle costs of the existing assets and providing a better understanding of the trigger points for future investment.
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Relationship to Other Municipal Planning and Financial
Documents
The AMP contains strategic information that integrates with other corporate planning documents such as:
• Town of Milton Official Plan – The AMP will utilize and influence policy directions for long-term growth
and development as outlined in the Official Plan.
• Long Term Fiscal Impact Study – The AMP will utilize as well as guide long term financial forecasts.
• Annual Budgets – The construction, operation, maintenance, rehabilitation, replacement, expansion and
disposal of assets, as identified in the AMP, will be considered in the development of annual capital and operating budgets.
• Facility Infrastructure Audits – Regular Facility Infrastructure Audits will inform the AMP in regards to the
condition of facility assets and the funding requirements to maintain, rehabilitate, replace or expand assets in order to meet defined levels of service
• Business Plans and Manuals – The AMP is based on service levels, policies and processes as identified in
various business plans and manuals and will be used in the development of future business plans, performance measures and strategic decision making.
. Asset Management Plan Purpose
The purpose of the Town’s AMP is to provide a comprehensive document that will guide corporate decision making in regards to the construction, operation, maintenance, replacement, expansion and disposal of infrastructure assets while minimizing risk and cost to the Town and its taxpayers and while maximizing service delivery. The AMP allows the Town to:
• Provide input into long-term infrastructure master plans and the annual budget; • Document existing and planned work practices and procedures;
• Provide a business case for key infrastructure investments to support municipal services; • Develop sustainable financial plans;
• Support community engagement regarding customer desired levels of service derived from the infrastructure assets;
• Consider options related to disposition of certain facilities based upon regular updates to the AMP and LOS consideration
• Meet legislative requirements; and
• Support funding applications to the federal and provincial levels of government.
.( Asset Management Plan Development
The development of the AMP was led by the Corporate Services department with support from the Engineering Services Department. Key staff driving the development of the AMP were:
• Linda Leeds, Director, Corporate Services • Sheryl Hill, Senior Manager, Finance
• Jennifer Reynolds, Director, Community Services • Doug Sampano, Senior Manager, Facility Services
• Paul Cripps, Director, Engineering Services • Tony D’Alessandro, Coordinator, Transit
The AMP contains four (4) components as presented in Figure 2-1: The State of Local Infrastructure Section includes details on the current condition and value of the asset class’s covered by the Plan. The condition information for Facilities and Transit assets is reported using the National Infrastructure Report Card format. This approach provides a common reporting protocol that can be used for all assets across the Town.
Information on the value of the assets was extracted from the 2015 Tangible Capital Asset register.
The Desired Levels of Service Section contains both currently reported performance measures and a preliminary assessment of potential Customer Levels of Service (LOS) measures. A workshop was held with the key staff to obtain a common understanding of the nature and purpose of Customer LOS and to define a preliminary set of measures. Further work is required to fully develop, measure and verify the LOS measures.
The Asset Management Strategy Section sets out the main policies, practices and actions that are taken to minimize the lifecycle cost of the assets. This covers both operational activity and capital expenditures. A workshop was held with key staff to document the current policies and practices and to identify opportunities for improvement to further reduce lifecycle costs while meeting desired LOS.
The Financing Strategy Section includes both historical and future budgeted
capital and operating expenditure and identifies the major funding sources. The future budgeted
expenditure has been compared to investment needs arising from the asset management strategy in order to identify any potential future funding shortfalls.
To ensure the comprehensiveness of the AMP, other resources were used including:
• The Building Together – Guide for Municipal AMPs guidelines as published by the Province of Ontario;
• Attendance at workshops and seminars on the topic of asset management; and • Following examples and initiatives demonstrated by other municipalities.
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Asset Management Plan Updates and Timeframes
The Asset Management Plan (AMP) is a living document that will continue to reflect the evolution of asset management practices within the Town. A key aspect of good asset management practice is to continually evaluate, review and enhance its practices. This continual improvement approach will result in periodic updates to the AMP as a better understanding of the asset base and its needs is obtained. Some specific improvements related to Facilities and Transit are detailed in Section 7.
The AMP is a strategic document that should ultimately encompass the full life-cycle of the Facilities and Transit assets included in the Plan. The Town’s budget covers a 3-year operating cycle and a 10-year capital forecast for the Facilities and Transit assets and therefore this first version of the AMP will be a 10-year Plan. As the full life-cycle for these assets can be in excess of 50 years (for facility assets) future versions of the AMP will consider the full life-cycle of all of these assets.
FIGURE 2-1: COMPONENTS OF THE TOWN'S AMP
The suite of AMP’s for the Town will continue to be further developed to include information on all assets owned by the Town. This Plan will be updated every 4 to 5 years to coincide with other strategic planning documents. If significant changes arise within this timeframe that impact the AMP, an interim review could be undertaken.
The following table shows the proposed updates for the AMP and associated documents.
TABLE 2-1: PROPOSED DOCUMENT UPDATE FREQUENCY
Document Frequency
Asset Management Policy Every 10 years
Asset Management Plan Every 4-5 years
State of Infrastructure Report Every 2-3 years
Capital Budget Annually
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Data Reliability and Accuracy
The quality of data used within this AMP will vary depending on the source for the data. To aid in the interpretation of the AMP, a data confidence rating in terms of reliability and accuracy of the data used is included throughout the AMP
The data confidence rating scales, defined below, are used to support the rating, with confidence based on the lower of the reliability and accuracy ratings.
Table 2-2: Data Reliability and Accuracy
DATA CONFIDENCE
State of Local
Infrastructure
State of Local Infrastructure
To get an overall view of the Town’s current state of infrastructure for Facilities and Transit assets, asset inventory, valuation, age and condition were documented. Facility inventory, condition, and age data was extracted from data provided by the Town, some of which was taken from a Facility Infrastructure Audit completed in February 2015.
The data source for asset valuation was the Town’s Tangible Capital Asset (TCA) system. For the purposes of this AMP, the condition of Facilities and Transit assets are stated on a 1 to 5 scale as used in the Canadian National Infrastructure Report Card (NIRC).
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Asset Inventory
The asset classes covered by this AMP comprise of two (2) major categories: Facilities and Transit. The Facility asset classes include civic facilities, community halls, fire halls, leased facilities, operations facilities, and recreation and culture. The Transit asset classes include transit buses, portable data systems, support vehicles, bus pads (and amenities), and bike lockers.
Table 3-1 and Table 3-2 provide a high-level overview of the asset inventory included within the scope of
this AMP.
TABLE 3-1: ASSET INVENTORY – FACILITIES
Asset Unit 2015 Inventory
Civic Buildings Each 1
Community Halls Each 3
Fire Halls Each 4
Leased Facilities Each 5
Operations Facilities Each 4
Recreation and Culture Each 19
Total 36
TABLE 3-2: ASSET INVENTORY – TRANSIT
Asset Unit 2015 Inventory
Transit Buses Each 18
Portable Data Systems Each 1
Support Vehicles Each 2
Bus Pads and Amenities Each 33
Bike Lockers Each 2
Total 56
Note: In addition to the 33 bus pads, there is also a Transit Bus Stop Retrofit Pool. This is not included in the
Notes:
1. Inventory is added and updated in the system as assets are placed in or out of service. These actions are generated as the capital works are completed. 2. Transit Fareboxes have not been counted as separate assets in the above
numbers, but have been considered as one component of the buses.
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Asset Valuation
The asset valuations contained within this AMP are based on data in the Town’s Tangible Capital Asset (TCA) system. Under PSAB 3150, local governments are required to summarize and present information regarding their TCA and amortization in financial statements based on historical costs. However, to proactively manage assets, estimated replacement costs need to be calculated. Therefore, TCA replacement values are re-calculated annually taking into consideration the appropriate consumer based indices for each asset type. The 2015 TCA valuation for all assets covered in this AMP is $232,305,578 (total of Facilities and Transit assets).
The Town’s total TCA valuation for Facilities assets is $224,277,000, and for Transit assets is $8,028,578. The replacement value is the cost to replace the asset with the same asset and does not include growth, changes and improvements in technologies, enhancements etc. In addition to the replacement costs, details of the depreciated historical costs, shown as net book value, are also included for the assets covered by this Plan as shown in Table 3-3 and Table 3-4.
TABLE 3-3: ASSET VALUATION – FACILITIES
Asset Units 2015 Inventory
2015 Replacement Value ($000’s) 2015 Net Book Value ($000’s) % of total Facilities 2015 Replacement Value
Civic Buildings each 1 33,882 19,233 15%
Community Halls each 3 3,275 1,110 1%
Fire Halls each 4 15,123 8,661 7%
Leased Facilities each 5 18,522 8,465 8%
Operations each 4 14,787 15,205 7%
Recreation and Culture each 19 138,688 88,101 62%
TOTAL 224,277 140,776
DATA CONFIDENCE
FIGURE 3-1: ASSET VALUATION – FACILITIES
Notes:
1. Costs are as estimated 2015
TABLE 3-4: ASSET VALUATION – TRANSIT
Asset Units 2015 Inventory
2015 Replacement Value ($000’s) 2015 Net Book Value ($000’s) % of total Facilities 2015 Replacement Value
Transit Buses each 18 7,734 3,811 96%
Portable Data System each 1 57 21 0.7%
Support Vehicle each 2 53 12 0.7%
Bus Pads / Amenities each 33 148 128 1.8%
Bike Lockers each 2 36 27 0.5%
TOTAL 56 8,029 4,000
DATA CONFIDENCE
FIGURE 3-2: ASSET VALUATION – TRANSIT
Notes:
1. Costs are 2015 based
DATA CONFIDENCE
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Asset Age
Asset useful lives (or economic lives) developed as part of the 2009 PSAB 3150 TCA project are used in this version of the AMP as follows:
TABLE 3-5: ASSET USEFUL LIFE - FACILITIES AND TRANSIT
Asset Type Asset Useful Life (PSAB) Years
Facilities All 50
Transit Buses (Conventional) 12
Buses (Specialized mini bus) 7 Buses (Acquired as used) 5
Portable Data System 12
Support vehicle 7
Bus Pads/Amenities 30
Bus Pads/Amenities (Retrofit) 7
Bike Lockers 15
$.$. Asset Age: Facilities and Transit
Almost 60% (by value), of the Towns facilities are less than 20 years old and based on a typical useful life of these facilities of 50 years, they are yet to reach the mid-point. However they will still require annual maintenance and periodic major maintenance activities to ensure that they will continue to provide the intended level of service through their service life.
For Transit assets, almost 70% (by value) are 3 years old or less. This is reflective of the fact that over 95% of the Transit assets (by Value) are vehicles with a relatively short useful life.
The Town’s asset age profile of their Facility and Transit assets are shown in the pie charts below.
FIGURE 3-4: ASSET AGE DISTRIBUTION BY REPLACEMENT VALUE – TRANSIT
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Asset Condition
A 5 point rating scale that aligns with the NIRC, produced by the Federation of Canadian Municipalities (FCM), Canadian Construction Association (CCA), Canadian Public Works Association (CPWA) and Canadian Society of Civil Engineering (CSCE) was used to determine the state of the Town’s Facility and Transit assets. The use of this 5 point rating scale allows the Town of Milton’s asset base to be described using a common approach and will enable benchmarking against other municipalities. The rating scale ranges from Very Good to Very Poor, as described in Table 3-6 and reflects the physical condition of the given assets.
Future iterations of the Town’s AMP will be extended to include other asset types and service measures (e.g. reliability) to more accurately reflect the Town’s ability to meet service needs.
TABLE 3-6: ASSET CONDITION GRADE SUMMARY - NIRC 5-POIINT RATING SCALE
1 Very Good The infrastructure in the system or network is generally in very good condition, typically new or recently rehabilitated. A few elements show general signs of deterioration that require attention.
2 Good The infrastructure in the system or network is in good condition; some elements show general signs of deterioration that require attention. A few elements exhibit significant deficiencies.
3 Fair The infrastructure in the system or network is in fair condition; it shows general signs of deterioration and requires attention. Some elements exhibit significant deficiencies.
4 Poor
The infrastructure in the system or network is in poor condition and mostly below standard, with many elements approaching the end of their service life. A large portion of the system exhibits significant deterioration.
5 Very Poor
The infrastructure in the system or network is in unacceptable condition with widespread signs of advanced deterioration. Many components in the system exhibit signs of imminent failure, which is affecting service.
$.'. Facilities Condition
A summary view of the condition of the Facilities assets in the Town covered in this version of the AMP is provided in Figure 3-5. The condition grades assigned to each facility pertains to the facility as a whole. Over 80% (based on replacement values) of the Town’s facilities are rated to be Very Good or Good.
FIGURE 3-5: CONDITION BY REPLACEMENT VALUE – FACILITIES (OVERALL)
FIGURE 3-6: CONDITION BY REPLACEMENT VALUE – CIVIC FACILITIES
FIGURE 3-7: CONDITION BY REPLACEMENT VALUE – COMMUNITY HALLS
FIGURE 3-8: CONDITION BY REPLACEMENT VALUE – FIRE HALLS
FIGURE 3-9: CONDITION BY REPLACEMENT VALUE – LEASED FACILITIES
FIGURE 3-10: CONDITION BY REPLACEMENT VALUE – OPERATIONS FACILITIES
FIGURE 3-11: CONDITION BY REPLACEMENT VALUE – RECREATION AND CULTURE FACILITIES
Overall the majority of the Town’s Facility assets are in Good or Very Good condition, when assessed at the Facility level (as opposed to assessing the condition of components within a facility). However it should be noted that there are facilities that are rated as Very Poor (1 Recreation & Culture Facility),
Poor (1 Fire Hall) and Fair (3 Recreation & Culture Facilities, 1 Operational Facility, 2 Leased Facilities and 1 Community Hall). These Facility assets will be assessed further to determine whether there are specific components that are resulting in a lower condition grade, or whether the grade is representative of the Facility as a whole.
It should also be noted that because of the significant growth Milton has been faced with over the past 15 years, many new facilities have been constructed to accommodate growth in service. Therefore while the majority of Town facilities are in Good or Very Good condition, as they age, significant investments are going to be required to maintain the assets in good state of repair. This will be covered in more detail in future updates of the Plan.
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Transit Asset Condition
Figure 3-12 through to Figure 3-17 show the overall condition of Transit assets in the Town covered in this
version of the AMP. It should be noted that Condition data was not available for the Transit assets, and an inferred condition grade was derived based on the age of the assets, compared with a typical useful life for that asset type. Based on this assessment approach, almost 70% (based on replacement values) of the Town’s Transit assets are rated to be Very Good or Good.
FIGURE 3-12: CONDITION BY REPLACEMENT VALUE – TRANSIT (OVERALL)
FIGURE 3-13: CONDITION BY REPLACEMENT VALUE – TRANSIT BUSES
FIGURE 3-14: CONDITION BY REPLACEMENT VALUE – PORTABLE DATA SYSTEMS
FIGURE 3-15: CONDITION BY REPLACEMENT VALUE – SUPPORT VEHICLES
FIGURE 3-16: CONDITION BY REPLACEMENT VALUE – BUS PADS AND AMENITIES
FIGURE 3-17: CONDITION BY REPLACEMENT VALUE – BIKE LOCKERS
Overall almost three quarters of the Town’s Transit assets are in Good or Very Good condition. However it should be noted that there are a number of specific assets that are rated as Poor (2 Support vehicles) and Fair (1 Portable Data System and 5 of the Towns 18 buses). The assets that are rated as either Poor or Fair are not necessarily providing a lower level of service than the other assets, as the Town selects a
maintenance regime that takes into account the assets age and is focused on maintaining service levels. For assets such as the Portable Data System, the assigned condition grade is just reflective of the assets age and while still fit for purpose, this grade does provide an indication of a future funding requirement.
Notes:
1. Facilities – Condition grades are qualitative, but are based on the professional views of consultants during the preparation of a recent Facility Audit
DATA CONFIDENCE FACILITIES
Notes:
1. Transit – Condition grades have been derived from the assets age, when compared with the assets useful life.
DATA CONFIDENCE TRANSIT
Expected Levels of
Service
Expected Levels of Service
'. The Purpose of Levels of Service
The management of the Towns assets needs to consider their affordability while balancing customer needs and expectations. Levels of Service (LOS) is the means to measure this aspect of asset management. Through LOS, decisions are made based on their impact on customers, the community, and the environment and this enables a clear line of sight to be put in place, from the strategic goals of the Town through to day-to-day asset management decision making.
LOS are linked at three (3) levels within the Town – Corporate, Customer and Asset (or Technical) and the setting of these LOS measures needs to define reasonable expectations taking into consideration present and future needs over the lifecycle of the assets, affordability and risk.
LOS can be measured at three (3) levels:
Currently the vast majority of performance indicators used to measure and track performance are asset/ technical indicators. This traditional view of “asset stewardship” drives asset interventions based on age and condition rather than customer or stakeholder outcomes. Although the asset stewardship approach
provides a reasonably sound engineering assessment of the state of the asset base, the approach has a number of weaknesses:
• The grades assigned for condition and performance are subjective and the approach to grading may vary between departments and/or individuals;
• The information which underpins the grades and the assessment of remaining life may be of varying age and quality; and
• There is no assessment of the LOS that the asset provides to customers.
In addition, the approach tends to overestimate the requirement for asset renewal/rehabilitation. This is because it overlooks the organization’s capacity to:
• Rationalize the assets (by assessing whether or not it is still required);
• Adopt strategic solutions, by reorganizing the network to reduce or remove the asset; • Use new technology; and
Customer LOS
Corporate LOS
Asset
(or Technical) LOS
Defines the technical requirements necessary to achieve the service objectives. (e.g. % of preventative maintenance inspections completed)
Defines the service that the Asset Manager/Town
provides to the customer. (e.g. Number of traffic accidents for X amount of time)
The key corporate performance expectations, based upon core values and sets the corporate objective. (e.g. providing safe roads)
The Town currently performs a hybrid approach to managing its assets, but aims to transition more fully into a serviceability approach that fosters a more customer centric view of asset management that will help to put the customer at the heart of decision-making.
FIGURE 4-1: TRANSITION FROM TRADITION APPROACH TO SERVICEABILITY APPROACH
A LOS framework and associated measures can have a number of uses within an Asset Management Program including:
• Forms the basis to inform customers of the proposed LOS to be offered;
• Enables the costs and associated benefits of the services offered to be identified– linking investment to customer outcomes;
• Enables an assessment of the suitability, affordability and equity of the services offered; • Provides a measure of the effectiveness of the AMP; and
• Provides a focus for the asset management strategies developed to deliver the agreed LOS.
'.
Factors Affecting Levels of Service
There are a wide range of factors affecting LOS. Some of the more important factors are: • Strategic goals for the Town;
• Legislation and regulatory requirements; • Community expectations; and
• Affordability.
'. . Strategic Goals for the Town
The Town’s LOS are established based on the strategic goals and objectives of Council. In general, the Town’s strategic goals describe the direction that the Town wants to go in (i.e. what does the Town want to become?), and also influences resource allocation and guides future spending. This then enables resources to be allocated in a manner that aligns with and enables the Town to accomplish its strategic priorities and objectives.
The Town is currently in the process of updating its Strategic Plan and this will include the development of five new goals and associated objectives. The goals/objectives that will specifically influence the
development of LOS measures and targets include:
TABLE 4-1: STRATEGIC GOALS THAT WILL INFLUENCE LOS MEASURES AND TARGETS
Strategic Goal Objectives
Organizational Excellence • Provide effective service delivery and improved efficiencies;
• Develop a Succession Planning Strategy to retain and attract a skilled and high performing staff team, minimizing risk of leadership vacuum and ensuring transfer of organizational knowledge.
Economic Growth • Implement strategic initiatives to support economic growth
Financial Sustainability • Long range planning processes and the annual budget process should encourage decisions that support sustainability goals, including costs for full lifecycle of assets (short, medium and long term from initial
acquisition to disposal), and preventative maintenance requirements, in making investment decisions;
• Regularly update long-range financial plans and forecasts.
Vibrant and Connected Community
• Coordinated, multi-modal Transportation Plan working with all levels of government;
• Work with partners to provide a range of quality programs and services that engage with, and respond to, the needs and expectations of our changing community;
• Safe, effective and efficient transportation options for the community; • Work with surrounding municipalities and the Region to integrate and
connect municipal transit systems and address Milton Education Village transit requirements.
The Town of Milton Official Plan (2008) includes strategic objectives for Facilities and Transit assets as follows:
Recreation and Culture Facilities:
• The provision of community and cultural facilities is essential for the achievement of a strong and healthy community which provides for all aspects of human life. The Town is not involved in the provision and enhancement of all such services; however, where it is not directly involved it can assist in their provision and enhancement through its involvement with the appropriate agencies, groups and individuals.
Transit:
The Town's transportation system shall:
• Increase accessibility to major areas of employment, shopping and recreation, with an emphasis on accessibility by public transit;
• Promote and support integrated mobility; and • Target a high level of usage in the Urban Area.
These specific strategic goals directly influence the development and setting of LOS targets for the Town.
'. . Legislation and Regulatory Requirements
Several of the Town’s LOS are linked directly to legislative and regulatory standards and requirements. For example, in 2005, the Accessibility for Ontarians with Disabilities Act (AODA) was passed and 2015 will mark
the Town’s assets including impacting on both Transit and Facility assets, such as continued infrastructure improvements at bus stops and other related transit infrastructure or the accessibility for
persons with disabilities to the Towns Facilities.
'. .$ Community Expectations
The experience of a citizen of the Town, relative to another municipality can influence the customer’s expectation of the LOS that the Town should provide in either a positive or negative manner. Furthermore, given the varying condition of assets in use within the Town, there are a variety of LOS that a citizen could experience. The expectations of the community can also be influenced by specific experiences of localized asset failure (e.g. at a specific recreational facility), which is not necessarily reflective of the Town’s overall performance. In consideration of this, as part of the annual budget development process the Town conducts a Budget Public Input Survey to consult with the public. This is a method for engaging residents and business owners and soliciting public feedback on LOS and programs offered by the Town. The latest survey (May 2015) was conducted during the same timeframe as a statistically valid telephone survey by Forum Research Inc. The telephone survey results show that 50% of respondents are satisfied with the current LOS for Transit and 82% were satisfied with Recreation Facilities.
The results of the surveys provide valuable information to staff for consideration in preparing the annual budgets, including satisfaction with LOS, recommendations for new services or elimination of existing services and level of support for property tax increases. Moving forward, the Town seeks to further educate its citizens with regards to the costs associated with improving or maintaining service levels.
'. .' Affordability
Funding levels and willingness-to-pay are primary factors governing the LOS that can be delivered by the Town. The current tax base does not provide sufficient funding both to maintain the existing asset base and to meet all of the future goals for improved and expanded services. Continued high rates of growth within the Town will make the situation worse. Through the Budget Public Input Survey conducted in May 2015, 43% of respondents indicated they would support an increase in the tax levy to provide incremental funding to maintain assets and 25% indicated they would support the introduction of new fees and taxes where possible to address the infrastructure funding deficit. The Town will continue to address the gap in funding through these options as well as looking to Provincial and Federal funding sources to support investment in its infrastructure and at some point in the future may need to make difficult decisions balancing the LOS provided with what is affordable. Future versions of this AMP should provide a useful vehicle for assessing and communicating the issues, options and decisions of affordability.
'.$
Existing Performance Measures
The Town reports a range of performance measures associated with its assets and service delivery. Two (2) sets of measures relevant to facilities and transit are reproduced here.
The Municipal Performance Measurement Program (MPMP) is reported annually by the Town and contains a range of efficiency and effectiveness measures across all municipal programs and services.
TABLE 4-2: TRANSIT PASSENGER TRIPS
LOS Metric 2014 2013 2012 2011 2010 2009 2008
Total number of Regular Service Passenger Trips on Conventional Transit in Service Area
409,601 353,504 275,397 227,926 138,052 102,986 117,316
Population of the serviced area 85,191 83,227 79,842 63,939 62,800 49,700 49,000
Number of conventional transit passenger trips per person in the service area in a year
4.8 4.2 3.4 3.6 2.2 2.1 2.4
The service area is defined as population within 400 metres of an existing transit route and/or population within an alternative service delivery program area (i.e. Trans-Cab service area).
TABLE 4-3: INDOOR RECREATION FACILITY SPACE
LOS Metric 2014 2013 2012 2011 2010 2009 2008
Square meters of indoor recreation facilities (municipally owned)
42,395 42,395 35,465 35,465 22,400 21,944 21,944
Population 100,743 98,000 92,200 88,000 82,000 81,000 75,000
Square metres of indoor recreation facilities per 1,000 persons (municipally owned)
421 433 385 403 273 271 293
The measure per 1,000 persons fluctuates due to increases in population and the construction of new facilities. For example, in 2011 this measure increased by 47.5% due to an expansion of the Milton Sports Centre, and of the Nassagaweya Tennis Centre and Community Hall, partially offset by a 7.3% increase in population. In 2012, this measure decreased due to a 4.8% increase in population and no additional facility space added.
'.' Levels of Service Measures
As part of the development of this AMP the Town has started developing a formal suite of LOS measures. The measures are at an early stage of development and will be refined in future iterations of the AMP. The LOS have not been quantified yet, as such, they are expressed in terms of general trends upwards,
TABLE 4-4: LEGEND OF TREND DESCRIPTIONS
Symbol Trend Description
Negative Upward Trend An upward trend represents a negative outcome for the Town of Milton and a deterioration in service delivery performance
Positive Upward Trend An upward trend represents a positive outcome for the Town of Milton and an improvement in service delivery performance
Negative Downward Trend
A downward trend represents a negative outcome for the Town of Milton and a deterioration in service delivery performance
Positive Downward Trend A downward trend represents a positive outcome for the Town of Milton and an improvement in service delivery performance
Stable Trend Service delivery performance will remain stable
Potential Levels of Service measures have been developed for seven (7) key customer values:
• Accessibility • Reliability/availability
• Quality • Customer Service
• Safety • Sustainability
• Legislative
TABLE 4-5: POTENTIAL LEVELS OF SERVICE AND TRENDS - FACILITIES (EXTERNAL CUSTOMERS)
Value Objective Potential Level of Service Measure Current Trend Future Trend Comments A cc e ss ib il it y Provide sufficient facilities
# of facilities per capita (e.g. swimming pools, Libraries, Senior Centres, Ice Pads, Community Halls)
There is generally a high demand compared to capacity for facilities. Additional facilities are planned
Meet AODA requirements
% of Facilities compliant with AODA
Requirements
The Town is creating its own standards which will exceed the AODA. Facilities are mostly compliant.
Community halls are among the oldest buildings in inventory and generally don't meet standards. The Town does provide other options for users.
A v a il a b il it y / R e li a b il it y Facilities available during opening hours (including holidays) % Availability (Actual available hours/planned available hours)
Highly reliable service. Some issues with community Halls
Q u a li ty Provide adequate quality of facilities % Customer Satisfaction (swimming pools, Libraries, Senior Centre, Ice Pads, Community Halls)
Facilities generally meet expectations. Risk that the Senior Centre may not be meeting the required levels of service
S
a
fe
ty Provide safe
facilities / service # of reportable incidents
Excellent safety record. Supported by reports, proactive investigation / inspection. S u st a in a b il it y Energy Conservation
# of LEED Facilities New buildings are LEED
# of Facilities retrofitted for energy conservation
Older buildings have been retrofitted for energy conservation Le g is la ti v e Potable water at community halls from wells
# of Boil Water Orders pa
There is a water quality sampling program in place. Within the last 5 years there has been an instance of a boil water order being issued.
TABLE 4-6: POTENTIAL LEVELS OF SERVICE AND TRENDS – FACILITIES (INTERNAL CUSTOMERS)
Value Objective Potential LOS Measure Current Trend Future Trend Commentary A cc e ss ib il it y /Q u a li ty Provide sufficient facilities for job roles and the same standard of accommodation for all % satisfaction (Civic Buildings)
Currently the Facilities meet the needs of users, however the Town is projecting the number of administrative staff will grow and accommodation plans must be considered to provide adequate space. Fire Station 1 is not to the same standard as others. Station 1 is an inherited building that was re-purposed. There is committed capital for improvements at Station 1
Meet AODA requirements
% Facilities compliant with AODA requirements
High compliance except in heritage buildings. All new buildings will be compliant. The Town is creating a new standard to comply with legislation
A v a il a b il it y / R e li a b il it
y Facilities available and fit for
purpose during opening hours (including holidays)
% Facilities that are fully available and functioning correctly e.g. temperature controlled at 19-21 deg. C (Actual available hours/planned available hours)
There are limited staff complaints about temperature depending on the location within a facility. Recent changes have improved the situation.
S a fe ty Provide safe workplace # of reportable incidents High performing S u st a in a b il it y
All new builds to LEED standards
# of LEED Facilities
It is planned to assess the cost-benefit of LEED standard Facilities, compared with alternate green standards.
Minimize energy usage and costs
# of Facilities retrofitted for energy conservation
There are building automation systems but there are opportunities to improve.
TABLE 4-7: POTENTIAL LEVELS OF SERVICE AND TRENDS – TRANSIT
Value Objectives CLOS Measures Current Trend Future Trend Commentary A cc e ss ib il it y Provide a fully accessible service, capture higher ridership and meet AODA requirements
% of fleet fully accessible Currently at 100%. Accessibility aimed at all customer groups
% of stops that are accessible
Continual improvement in bus stop accessibility as identified in annual Transportation Accessibility Plans
Transit is accessible to the majority of residents in the urban area % of population within 400m of a transit stop and/or within an alternative service delivery program area
Service availability
# Service hours available per week A v a il a b il it y / R e li a b il it y
On time service 99% of all trips within 2 mins of scheduled time
Under 'normal' conditions the service is reliable. Reliability most affected by 3rd party activity such as road construction work and associated traffic
Q u a li ty Adequate coverage and condition of benches, shelters and other transit stop amenities
% Customer Satisfaction (Shelters, benches etc)
There is a delay in new stops acquiring full amenities at the time of service delivery launch due to the nature of growth in population (need for flexibility, adaptation, etc.) – therefore, there is an overall downward trend, that needs to be viewed alongside the ease of adaptability to future changes Clean buses &
good ride quality
% Customer Satisfaction (Buses)
Buses are routinely cleaned (daily). There are no specific cleanliness objectives. Ride quality is not currently assessed
S a fe ty Provide a safe service # or Reportable Incidences
'.
Internal and External Trends with potential to impact on
Service Delivery
There are also a number of internal and external factors and trends that have the potential to impact on the ability of the Town to continue to deliver established LOS over the Plan period. The following are key influences that the Town has identified as potentially impacting on LOS:
TABLE 4-8: EXTERNAL / INTERNAL TRENDS
Key External Trends Potential Impacts
Complexity in regulation New legislation, e.g. Emissions standards or further accessibility requirements can potentially result in the existing Town assets not being able to meet the new LOS. To address this, the Town has in place processes to monitor when and how future legislation can impact the asset base and, where possible, new assets are ‘future proofed’ where their design and construction takes into account the potential impact of any new legislation. However regardless of the processes that are in place to deal with new legislation, there can be a lag between new legislation coming into effect and the time it takes the Town to become fully compliant. The time to become fully compliant would be agreed with the relevant legislative body.
Complexity in growth forecasts
The timing and scale of development across the Town, which can sometimes be difficult to predict or plan, varies in accordance with market demands and the Town’s own approval processes. This has the potential to impact on both financial and operational performance indicators.
Expectations Societal and political influences will continue to shape the Town’s strategy and priorities. Social trends have the potential to impact on LOS delivered by the Town, as people increasingly want more information and more dialogue, and this could be with regard to the type and quality of service delivered by the Town. Also, residents will likely expect the Town to use a broader range of communication approaches including social media to connect the Town and its residents, regarding service levels.
Key Internal Trends Potential Impacts
Aging infrastructure The Town, while having a relatively young asset base, does still have a number of older facilities in its portfolio. As these assets further deteriorate, there is a risk that levels of service may decline. However, the adoption of asset management practices by the Town will enable cost-effective and timely maintenance and rehabilitation activities (see Section 5.0 – Asset Management Strategy) that will go some way in mitigating this risk.
Loss of qualified or certified operations staff
The Town has an aging workforce and as staff retire, there is a risk that their knowledge is lost to the organization. This can result in either inefficient working as staff will, initially, take additional time to carry out tasks or this can result in a declining LOS, as asset failures may not be prevented or the response to an asset failure may not be dealt with as promptly as it had previously. To address this, the Town continues to focus on training and documentation of work practices to help mitigate this risk.
Asset Management
Strategy
Asset Management Strategy
. Objective
The purpose of the Town’s Asset Management Strategy is to evaluate current practices and establish future practices that will be cost effective, sustainable and enable the Town to deliver agreed LOS at an acceptable level of risk. This asset management strategy considers both asset and non-infrastructure solutions. These solutions can be used to address renewal, growth, improvement and maintenance needs and support the development of a transparent and defensible 10-year plan to sustainably enable growth and optimize the ongoing maintenance of the Town’s infrastructure, while continuing to meet agreed LOS.
Section 5 of this document will cover asset management strategies for Facilities and Transit from a
renewal/replacement, operations and maintenance, non-infrastructure solutions, IT support, procurement and risk management perspective. Future iterations of the AMP will seek to establish, in greater detail, whole life-cycle intervention options that provide the optimal mix of capital and operational interventions.
.
Asset Life Cycle Management Strategy
An asset life-cycle management strategy provides a comprehensive and effective approach to asset management illustrated in Figure 5-1. It manages and optimizes the cost and performance of an asset by considering the whole life cycle.
FIGURE 5-1: ASSET LIFECYCLE
The asset lifecycle management strategy allows the Town to focus on the entire lifecycle of the asset ‘from cradle to grave’ and make better informed and optimized decisions that consider a wider spectrum of solutions. Key components of this strategy include:
1. Operational Strategies: These include non infrastructure solutions to mitigating risks, deferring the need for upgrades/renewals, allowing for rehabilitation and renewals to be deferred without impacting on the risk to delivery of agreed LOS. These also include the consideration of Asset utilization and demand management along with emergency response planning and shut down and outage management. 2. Maintenance Strategies: These include approaches for establishing the optimal combination of planned
and unplanned maintenance, considering factors such as cost-effectiveness, time delays, coordination with other Town Departments and other municipalities etc.
3. Investment Planning: This includes linking investment decisions to customer outcomes through the robust identification of needs, scoping of projects and prioritizing projects. It focuses on base
. . Investment Planning
The Investment Planning Process (see figure below) supports the Town’s ability to provide agreed LOS and implement a robust, transparent and defendable delivery plan. This process focuses on linking investment decisions on the infrastructure to customer-oriented service delivery. Overall, the Town follows the Investment Planning Process by identifying goals/objectives, establishing needs, evaluating a variety of feasible solutions, prioritizing the solutions and developing investment plans based on the selected options.
FIGURE 5-2: INVESTMENT PLANNING PROCESS
. . Condition Assessment Programs
Accurate and comprehensive data on an assets current condition is a fundamental aspect of good asset management practices, as having complete information regarding the infrastructure, mitigates premature replacement or failure of the assets. Sound management decisions regarding capital expenditures,
operations and maintenance activities can therefore be based on a clear understanding of an assets condition and performance.
For entire asset classes, a more cost effective cursory approach utilizing metrics such as Very Good, Good, Fair, Poor and Very Poor has been used for this version of the AMP. This approach allows for an overview of the assets and indicates which assets (e.g. those in poor and very poor condition) require more detailed inspections and assessments.
Integrating condition assessment programs into asset management practices provides many benefits. A better understanding of an assets condition leads to more sound management practices and allows for the minimization of unnecessary expenditures. It also enables accurate asset reporting (e.g. accurate asset valuations, asset service life, etc.) contributing to the maintenance of agreed LOS and enables better decision making. In combination with risk management frameworks, having a sound understanding of the current condition of the asset base allows for the identification of potential future failures, leading to the establishment and scheduling of repairs, preventative maintenance and rehabilitation programs, in a financially accountable and transparent manner.
