Asset Management Plan The Corporation of the Town of Wasaga Beach

Transcription

1 Asset Management Plan The Corporation of the Town of Wasaga Beach Council Approved Nov-2016

2 Table of Contents Executive Summary... 2 Introduction... 4 Mission and Goals... 6 State of Local Infrastructure... 7 Capital Asset Summary Tax Supported... 7 Road Assets... 9 Storm Sewer Assets Vehicles & Equipment Buildings Bridges Capital Asset Summary Water/Wastewater User Fee supported Buildings Water/Wastewater User Fee supported Vehicles & Equipment Water/Wastewater User Fee supported Wastewater Infrastructure Water/Wastewater User Fee supported Water Infrastructure Water/Wastewater User Fee supported Desired Levels of Service Asset Management Strategy Long Term Forecast & Financing Strategy Summary and Conclusions Asset Management Plan Page 1 of 30

3 Executive Summary The required changes in financial reporting for municipalities in 2008/2009 brought needed attention to aging infrastructure, and challenges for local governments in funding operations, renewal and growth of their infrastructures. Asset management principles and practices were developed to help local governments face these challenges. Asset information and planning are important components of optimal asset management, and provide decision makers with needed information for assessing sustainable levels of service and funding strategies. According to the Province s Building Together Guide: Asset management planning is the process of making the best possible decisions regarding the building operating maintaining, renewing, replacing and disposing of infrastructure assets. The objective is to maximize benefits, manage risk, and provide satisfactory levels of service to the public in a sustainable manner. Asset management requires a thorough understanding of the characteristics and condition of infrastructure assets, as well as the service levels expected from them. It also involves setting strategic priorities to optimize decision-making about when and how to proceed with investments. Finally, it requires the development of a financial plan, which is the most critical step in putting the plan into action. A complete asset management plan includes expenditures and funding for operating, renewal and new infrastructure. The information and plans contained in this update are for renewal of existing assets. All costs are expressed in current dollars. Future updates and asset management plans will include operating and new assets. The Town of Wasaga Beach has over $300 Million invested in infrastructure with an average age of approximately twenty (20) years and an average life span of approximately 55 years. This document contains the Asset Management Plan for the Town of Wasaga Beach and has been prepared into the following sections: 1) Introduction; 2) Mission and Goals; 3) State of Local Infrastructure; 4) Desired Levels of Service; 5) Asset Management Strategy; 6) Long Term Forecast and Financing Strategy; 7) Summary and Conclusions. The state of local infrastructure section provides detailed information on the Town s asset inventory, and includes the accounting valuations, replacement costs, useful life, age and where available the asset condition. This information provides the starting point for the development of the asset management plan. Desired Levels of service describes the current levels of service and explains the key performance indicators for each service. Asset Management Plan Page 2 of 30

4 The asset management strategy details the set of planned actions over the next ten (10) years to ensure that the Town s assets provide the desired levels of service in a sustainable way, while managing risk, at the lowest lifecycle cost. The financing strategy identifies how the Town will plan and pay for any rehabilitation, replacement and preventative costs in a fiscally responsible manner. The asset management plan is a tool to be used by Town staff and Council to assist in operational, capital and financial decision making. It is meant to work in conjunction with the annual Budgets as well as the Long term forecasts and is supported by various documents such as the Roads Needs Study and the biannual Ontario Structure Inspection Manual (OSIM) reports. Asset Management Plan Page 3 of 30

5 1. Introduction Asset Management includes the planning, design, construction, operation and maintenance of infrastructure used to provide services. Asset Management is not new; it has always been a core function of local government. The Asset Management Process defines: What we own? (Inventory) What is it worth? (Valuation) Where is it? (Geographical Information System) How we operate? (Service Level) What is its condition? (Risk of Failure / Consequence of Failure) What do we need to do? (Construct, Maintain or Replace) How much will it cost and how will it be funded? (Financial Plan) The Town of Wasaga Beach manages assets with a value of approximately $308 Million. Services are provided for water, wastewater, storm drainage and transportation to the Town s population of over 24,000 permanent and seasonal residents. Currently, the Town is able to provide excellent service with the assets that Council has invested in. The Town s assets are on average less than half-way through their life cycle but as these assets age the replacement costs will burden the Town s financial capacity. In Canada municipalities build, own and maintain the majority of this country s infrastructure - infrastructure that supports our economy and quality of life. A report completed in 2007 by McGill University professor Dr. Saeed Mirza for the Federation of Canadian Municipalities estimated that the Canadian municipal infrastructure deficit was $123 billion. The survey on which the report was based indicated that Municipal governments are finding it extremely difficult to manage current infrastructure demands, let alone deal with the accumulated backlog of infrastructure maintenance and rehabilitation. This is compounded by population growth, which further strains existing infrastructure resources while creating additional demand for more infrastructure. The Town of Wasaga Beach faces the same challenges as all other municipalities in Canada. This Asset Management Plan is expected to assist: Council in making service level investments and tax rate decisions; Staff with the planning and management of the assets; and Taxpayers by sustaining value for the services provided. The Town s asset management plan includes the following assets: Storm Sewer Assets: o Sewer Mains; o Manholes; o Oil/Grit Seperators; o Catchbasins; and o Storm Ponds. Asset Management Plan Page 4 of 30

6 Sanitary Sewer Assets: o Mains; o Wastewater Treatment Facilities and Pumping Stations; o Force Mains; and o Sanitary Sewer Manholes. Water Infrastructure Assets: o Mains; o Air Release Valve Chambers; o Water Treatment Facilities and drilled wells; and o Fire Hydrants. Bridges and Culverts Roads: o Road Surface; o Road Base; o Road Shoulders and Curbs; o Sidewalks; and o Guide Rails. Vehicles and Equipment: o Streetlighting; o Library Collection; o Water Meters and parts; o Scoreboards and etc. Buildings: o Town Hall, Public Works, Library, Fire Stations, RecPlex and Arena. o Pumping Stations; o Water & Wastewater Treatment Plants; and o Storm Water Management Structures. The plan was developed through work generated by the Public Works Department, the Treasury Department, outside engineering firms for both the Roads Needs Study and the OSIM report, and the Ontario Clean Water Agency (OCWA) who identified the water facilities needs and assessment. The plan does not include an evaluation of the underground infrastructure where the information is based on the number of years in service and a conservative approach to renewal and replacement of those assets. The plan will be evaluated and improved in the next three (3) years to ensure that all assets of the organization are included, specifically to address the remaining facilities, equipment and vehicles. It will be evaluated annually alongside the budget process to ensure both Staff and Members of Council understand to what extent the plan has been included in the annual budget and where areas for improvement are necessary. Finally, the plan covers a forecast period of twenty (20) years, for tax supported assets, however the full lifecycle of the Town s assets were considered in the calculations. Next steps for the plan include additional condition assessment and further refinement of the replacement costs calculated. Asset Management Plan Page 5 of 30

7 2. Mission and Goals The purpose of Asset Management is to help preserve, protect and enhance the quality of life in the Town of Wasaga Beach by systematically managing the Town s assets in an efficient, effective and sustainable manner. The goals of the plan include: 1. To provide levels of service that meets the needs of the community. 2. To provide an Asset Management process that is effective, achievable and efficient. 3. To enable the collection, coordination, sharing and communication of information. 4. To develop operating, maintenance and capital financial plans that supports the defined levels of service. 5. To manage the assets in a sustainable manner. Asset Management Plan Page 6 of 30

8 3. State of Local Infrastructure This section of the plan details the capital assets owned by the Town and summarizes the information into tables that include: An asset database documenting asset types, sub-types including quantities, materials and other similar asset attributes; Financial accounting valuation (where available); cost valuation; Asset age distribution analysis and asset age as a proportion of expected useful life; Asset condition information (where available); Data Verification and Asset Condition policies; and Documentation of assumptions made in creating the asset inventory. The Town has a detailed inventory listing that was introduced alongside the PSAB 3150 standards introduced in This information over recent years has assisted in the capital planning process and is updated annually. This was the starting point for the asset management plan document. The detailed inventory listing provides current financial account valuations (i.e. historical cost, accumulated amortization and net book value) as well as useful life, age, and replacement cost. The following data and reports were also used in conjunction with the Town s asset inventory during this process: a) 2015 Water and Wastewater Rate Study; b) 2015 Development Charge Study; c) Facility Condition Assessment Arena; d) OCWA WWTP/SPS/WTP 10 Year Capital Forecast; e) 2013 Roads Needs Study; and f) 2016 OSIM Report. 3.1 Capital Asset Summary Tax Supported The Town currently owns and manages a total of $ Million in tax supported capital assets excluding land and land improvements with an estimated replacement value of $207 Million. Table 3.1 and figure 3.1 below details the breakdown of the types of assets by asset class, historical cost and estimated replacement cost. Asset Management Plan Page 7 of 30

9 Table Summary Tax Supported Assets Accumulated Historical Cost Amortization Cost 2015 $ Net Book Value Asset Class Road Assets 46,084,692 22,874,617 23,210,074 90,621,592 Storm Sewer Assets 31,616,077 4,676,019 26,940,058 46,343,494 Vehicles & Equipment 19,289,027 9,140,655 10,148,372 23,955,908 Buildings 16,435,783 4,693,724 11,742,059 29,933,348 Bridges 9,666,428 2,170,697 7,495,731 16,120,221 Total Tax Supported Assets $ 123,092,007 $ 43,555,712 $ 79,536,294 $ 206,974,564 The following sections details this information by asset type and includes where available: Asset Inventory and Value with the asset value calculated using historical cost. A detailed inventory of all assets is maintained in the Town s PSAB information as well as in the Geographical Information System (GIS). Cost is calculated based on engineering estimates for most linear assets and an inflationary factor of 1.5% per year for all other assets. Asset Management Plan Page 8 of 30

10 Remaining where condition assessments are available (roads and bridges) this is calculated based on that information, however where condition assessments are not available the expected useful life of an asset is based on industry standards. Weighted Remaining this is calculated based on the weighted replacement value of the asset in comparison to the entire class and the remaining useful life for assets without condition ratings only. Annual Cost In most cases this calculation is based on the estimated current replacement cost divided by the expected asset life. Some exceptions to this include roads where the maintenance and rehabilitation programs extend asset life and do not require the replacement of the entire asset. Current Investment Indicates the average annual funding the Town has invested in the last five years. This funding is primarily from the capital budget but also includes operating budget expenditures that help maintain or extend asset life. 3.2 Road Assets The road assets class includes items such as road surface, base, shoulders, curbs, sidewalks and guiderails. These assets vary in the number of years they will last as well the type of maintenance they require. All regular and preventative maintenance such as cold patching and crack repair is included in the annual operating budget does significantly impact the useful life of the asset. The condition assessment of the roads discussed below is based on the 2013 Roads Need Study conducted by an outside engineering firm is included as an appendix to this asset management. The Town has a total of km of roads with over 80% of those roads being from 70 to 100 on the pavement condition index (PCI). The average PCI for the Town is 90.56, a summary table of these results is provided below. Pavement Condition Index (PCI) Centre Line Length (kms) Sections % of total sections % of total length 90 to % % 80 to % % 70 to % % 60 to % % 50 to % % 40 to % % 30 to % % 20 to % % 10 to % % 0 to % Total % % (Note that the table above does not include gravel roads.) Asset Management Plan Page 9 of 30

11 Additionally an overall ride condition rating shows that more than 80% of the Town s roads are in good to excellent condition as shown in the table below. Ride Condition Rating Sections % of total sections Length % of total length 8-10 Excellent % % 6-8 Good % % 4-6 Fair 91 9% % 2-4 Poor 18 2% % 0-2 Very Poor 1 0% % Total % % 7.7 These results are indicative of both the age of the Town s assets as well as the preventative maintenance program that has been followed. Finally the Roads Need Study also identified where improvement was necessary to ensure continued good performance of the Towns roads and the cost of those works. Improvement Type Sections % of total sections Length % of total length Cost Cost/km Do Nothing % % $ - $ - Sand Maintenance 4 0% % - - Gravel Maintenance 14 1% % 32,400 10,000 Routine Maintenance 63 6% % 139,600 14,000 Preventative Maintenance 32 3% % 302,000 43,000 Resurface 31 3% % 672,700 98,000 Rehabilitate 25 2% % 2,955, ,000 Reconstruct 4 0% % 1,894, ,000 Total % % $ 5,996,100 Below table 3.2 details the historical costs, estimated replacement costs and remaining useful life based on PSAB standards and the Roads Need Study. Table Road Assets Asset Class Historical Cost Accumulated Amortization Net Book Value Cost in 2015 $ Condition Road Assets 46,084,692 22,874,617 23,210,074 90,621, ,566,187 The graph below depicts the replacements required by year over the next 20 years. Remaining based on Age & Annual Cost Asset Management Plan Page 10 of 30

12 3.3 Storm Sewer Assets The storm sewer asset class includes items such mains, catch basins, ponds and manholes. These assets vary in the number of years they will last as well the type of maintenance they require. Condition assessments have not been conducted on this class of assets and thus the remaining useful life and replacement timing is estimated based on the age of the asset. costs have been estimated based on engineering standards and an inflationary rate of 1.5% per year. Table 3.3 illustrates the details the historical costs, estimated replacement costs and remaining useful life based on PSAB standards. Accumulated Amortization Table Storm Sewer Assets Cost in 2015 $ Weighted Remaining Annual Cost Asset Class Historical Cost Net Book Value Storm Mains 21,666,111 3,319,838 18,346,273 31,766, ,375 Catch Basins 3,377, ,823 2,881,806 4,848, ,295 Manholes 5,108, ,332 4,426,426 7,073, ,034 Storm Ponds 1,463, ,025 1,285,553 2,654, ,903 Total $ 31,616,077 $ 4,676,019 $ 26,940,058 $ 46,343,494 $ 733,607 Asset Management Plan Page 11 of 30

13 Based on this information these assets will have minimal replacement needs over the next ten to twenty years, however will require a contribution to the Capital Reserve to ensure that funds are available when they are necessary. Additionally considerable maintenance needs are required on an annual basis i.e. SWM pond and OGS clean out. 3.4 Vehicles and Equipment The vehicles and equipment asset class includes items such as tractors, snow-plows, fire trucks, pick-up trucks, passenger vehicles, scoreboards, library collection items and streetlighting. These assets vary in the number of years they will last as well the type of maintenance they require. Condition assessments have not been conducted on this class of assets and thus the remaining useful life and replacement timing is estimated based on the age of the asset. costs have been estimated based on an inflationary rate of 1.5% per year. Please note vehicles are reviewed by the Town s mechanics during the scheduled replacement year, where it makes economic sense (i.e. maintenance costs are reasonable) vehicles are kept until they are no longer effective in completing their function. Please note that the Weighted has been adjusted to accommodate this review. Table 3.4 illustrates the details the historical costs, estimated replacement costs and remaining useful life based on PSAB standards. Table Vehicles and Equipment Accumulated Amortization Cost in 2015 $ Useful Life Weighted Remaining Annual Cost Asset Class Historical Cost Net Book Value Vehicles 9,768,052 5,431,833 4,336,219 11,501, ,436 General Equipment 4,803,562 2,098,006 2,705,556 6,101, ,761 Infrastructure Equipment 4,717,414 1,610,817 3,106,597 6,353, ,155 Total $ 19,289,027 $ 9,140,655 $ 10,148,372 $ 23,955,908 $ 1,888,352 Asset Management Plan Page 12 of 30

14 The graph below illustrates the replacements required by year over the next 10 years. 3.5 Buildings The buildings class of assets includes all municipal facilities with the exception of water and wastewater facilities that are included in the water and wastewater system assets. These buildings include the Wasaga Stars Arena, Town Hall, Library, RecPlex and others. A condition assessment is only available for the arena (included as an appendix to this report) at this point however regular maintenance programs are included for all buildings through the Parks, Recreation and Facilities operational budget. costs have been estimated based on an inflationary rate of 1.5% per year. Table 3.5 details the historical costs, estimated replacement costs and remaining useful life based on PSAB standards. Table Buildings Asset Class Historical Cost Accumulated Amortization Net Book Value Cost in 2015 $ Weighted Remaining Annual Cost Buildings $ 16,435,783 $ 4,693,724 $ 11,742,059 $ 29,933, $ 855,289 Asset Management Plan Page 13 of 30

15 Based on the condition assessment of the Wasaga Stars Arena in 2013 the estimated remaining life span is approximately 3 5 years based on the initial remediation works being completed, this is taken into consideration with the overall asset management plan. 3.6 Bridges The bridge assets class includes the bridge superstructures and bridge decks. The Town has 19 bridges and culverts, where 2 are considered to be major structures, that it maintains and is responsible for and conducts an OSIM (Ontario Structure Inspections Manual) evaluation every two years. The condition assessment is based on the latest 2016 OSIM report which is included as an appendix to this report. Based on the latest OSIM report the average BCI (Bridge Condition Index) is 80 or very good. This includes the Main Street Bridge that is planned for rehabilitation in 2017/2018, in the amount of $4.3 Million. Additionally please note that the Schoonertown Bridge was recently reconstructed in 2013/2014. The OSIM report provided the following recommendations over the next 5 years. Please note that the 2017 recommendations have been completed in 2015/2016: Bridge Name BCI Maintenance Needs Total William Avenue Bridge Cedar Grove Bridge Replace damaged anchors of North railing east end Replace broken reflectors on TCB's, replace missing bolts in SBGR splice 1,500 $ 1, ,500 $ 18,200 Schoonertown Bridge Clean out drain inlets 500 $ 500 Freethy Road Bridge # Install "Object Marker" (Wa-33L) signs, clean debris from deck top and both barrier curbs 1,000 $ 1,000 Freethy Road Bridge # Freethy Road Bridge # Main Street Bridge Sturgeon Creek Bridge st Street South Box Culvert Cedar Lane Twin Culverts Install "Object Marker" (Wa-33L & Wa-33R) signs, clean debris from deck top and both barrier curbs Cean debris from deck top and barrier curbs - install barrier guards Rehabilitation - design work completed - maintenance needs in 2017 Replace missing nuts on HSS railing connections on east 1,000 $ 1,000 38,500 $ 38,500 33,500 4,300,000 $ 4,333, $ Remove downstream blockage 1,000 $ 1,000 Repair embankment scour between culverts 2,500 $ 2,500 Flos Road 10 Culvert Tighten loose cables of guide rail 95, ,000 $ 840,000 Total $ 80,400 $ 4,300,000 $ 95,000 $ 745,000 $ 17,500 $ 5,237,900 Table 3.6 below illustrates the details the historical costs, estimated replacement costs and remaining useful life. Asset Management Plan Page 14 of 30

16 Table Bridges Asset Class Historical Cost Accumulated Amortization Net Book Value Cost in 2015 $ Weighted Remaining Annual Cost Bridges $ 9,666,428 $ 2,170,697 $ 7,495,731 $ 16,120, $ 417, Capital Asset Summary Water/Wastewater User Fee Supported The Town currently owns and manages a total of $143.3 Million in water/wastewater user fee supported capital assets excluding land and land improvements with an estimated replacement value of $255.2 Million. Table 3.7 and figure 3.7 below details the breakdown of the types of assets by asset class, historical cost and estimated replacement cost. Asset Management Plan Page 15 of 30

17 Table Summary Water/Wastewater User Fee Supported Assets Accumulated Amortization Cost in 2015 $ Asset Class Historical Cost Net Book Value Buildings 32,283,743 12,406,634 19,877,108 65,877,265 Vehicles & Equipment 5,624,828 2,386,143 3,238,685 7,104,205 Wastewater Mains 50,215,673 10,458,350 39,757,323 87,704,708 Force Mains 3,513, ,032 2,825,573 7,136,928 Wastewater Manholes 6,187,657 1,167,294 5,020,363 9,869,765 Water Mains 41,860,920 8,266,757 33,594,163 71,558,027 Fire Hydrants 3,698,383 1,432,313 2,266,070 5,986,745 Total $ 143,384,809 $ 36,805,524 $ 106,579,286 $ 255,237,643 Asset Management Plan Page 16 of 30

18 3.8 Buildings Water/Wastewater User Fee Supported The buildings included in this class of assets include: the wastewater treatment plant (WWTP), pumping stations (SPS), water treatment plant (WTP) and water towers. A 10 Year Capital Plan was conducted by the Ontario Clean Water Agency (OCWA) throughout the summer of 2016 and has been used to assist in developing the condition and replacement costs of these assets. costs have been estimated based on an inflationary rate of 1.0% per year (varying from other assets due to the length of time these assets will be in use). Table 3.7 illustrates the historical costs, estimated replacement costs and remaining useful life based on PSAB standards and condition assessments. Table Buildings - W & WW Asset Class Historical Cost Accumulated Amortization Net Book Value Cost in 2015 $ Weighted Remaining Annual Cost Buildings $ 32,283,743 $ 12,406,634 $ 19,877,108 $ 65,877, $ 1,141,309 During the summer of 2016 OCWA conducted a thorough inspection of all water and wastewater facilities to assist the Town in understanding the needs over the next 10 years. As depicted in the graph and chart below a total of $9.3 Million will be required to both maintain and update these facilities, with the largest need required in the year In order to ensure the appropriate amounts are available these figures are included in the annual Water/Wastewater Rates Update which also takes into account the residents ability to pay. Building Class SPS 81, , , , ,900 92,000 46, ,050 70, ,500 WWTP 215, , ,750 2,403, , , ,000 46,000 57,500 51,750 WTP 48, , , ,350 70, , ,500 61, , ,500 Total $ 346,495 $ 911,605 $ 1,499,600 $ 3,544,875 $ 829,380 $ 805,920 $ 609,500 $ 207,230 $ 242,650 $ 258,750 Asset Management Plan Page 17 of 30

19 3.9 Vehicles & Equipment Water/Wastewater User Fee Supported The vehicles and equipment asset class includes items such as flusher trucks, service trucks, small tools and water meters. These assets vary in the number of years they will last as well the type of maintenance they require. Condition assessments have not been conducted on this class of assets and thus the remaining useful life and replacement timing is estimated based on the age of the asset. costs have been estimated based on an inflationary rate of 1.5% per year. Please note vehicles are reviewed by the Town s mechanics during the scheduled replacement year, where it makes economic sense (i.e. maintenance costs are reasonable) vehicles are kept until they are no longer effective in completing their function. Table 3.9 illustrates the details the historical costs, estimated replacement costs and remaining useful life based on PSAB standards. Asset Class Table Vehicles & Equipment - W & WW Historical Cost Accumulated Amortization Net Book Value Cost in 2015 $ Weighted Remaining Annual Cost V&E $ 5,624,828 $ 2,386,143 $ 3,238,685 $ 7,104, $ 415, Wastewater Infrastructure W/WW User Fee Supported The wastewater infrastructure asset class includes items such as mains, force mains and manholes. These assets vary in the number of years they will last as well the type of maintenance they require. Condition assessments have not been conducted on this class of assets and thus the remaining useful life and replacement timing is estimated based on the age of the asset. costs have been estimated based on engineering standards and an inflationary rate of 1.5% per year. Table 3.10 illustrates the details the historical costs, estimated replacement costs and remaining useful life based on PSAB standards. Table Wastewater Infrastructure - W & WW Supported Asset Class Historical Cost Accumulated Amortization Net Book Value Cost in 2015 $ Weighted Remaining Annual Cost Wastewater $ 59,916,935 $ 12,313,677 $ 47,603,259 $ 104,711, $ 1,964,847 Based on this information these assets will have minimal replacement needs over the next ten to twenty years, however will require a contribution to the Capital Reserve to ensure that funds are available when they are necessary. Asset Management Plan Page 18 of 30

20 3.11 Water Infrastructure W/WW User Fee Supported The water infrastructure asset class includes items such as mains and fire hydrants. These assets vary in the number of years they will last as well the type of maintenance they require. Condition assessments have not been conducted on this class of assets and thus the remaining useful life and replacement timing is estimated based on the age of the asset. costs have been estimated based on engineering standards and an inflationary rate of 1.5% per year. Table 3.11 illustrates the details the historical costs, estimated replacement costs and remaining useful life based on PSAB standards. Table Water Infrastructure - W & WW Supported Asset Class Historical Cost Accumulated Amortization Net Book Value Cost in 2015 $ Weighted Remaining Annual Cost Water $ 45,559,303 $ 9,699,070 $ 35,860,233 $ 77,544, $ 1,450,812 Based on this information these assets will have minimal replacement needs over the next ten to twenty years, however will require a contribution to the Capital Reserve to ensure that funds are available when they are necessary. Asset Management Plan Page 19 of 30

21 4.0 Desired Levels of Service (LOS) LOS are a key business driver and influence many asset management decisions. Doing this type of analysis allows the Town to document and understand the current LOS and determine where expectations fall short. Expected LOS are impacted by many factors including: 1) Resident Expectations; 2) Council and Staff Expectations; 3) Financial Constraints, including Tax Rate flexibility; and 4) Legislative/Technical Requirements. Conducting the audit and compilation of the asset inventory provides a framework for the asset management plan while the LOS analysis uses this information to determine realistic goals and risks for the Town. Please note that further refinement for LOS is required and will be updated throughout the next several years. ROADS & RELATED Roads - Asphalt Roads - Gravel Key performance indicators and criticality assessment based on Roads Needs Study (undertaken every 5 years by P.Eng.) To ensure compliance with MTO and OGRA Guidelines, inventories are completed in accordance with the following Manuals: Pavement Condition Index (PCI) for Flexible Pavements (MTO) Inventory Manual for Municipal Roads (MTO) Measuring the Condition of Municipal Roads (OGRA) Road System Needs and Recommended Strategies based on pavement distress, ride comfort rating, and pavement condition index. LOS Policy Statement Perform the prescribed assessments. Plan an annual strategy to address marginal and/or lower rated assets for reconstruction, resurfacing or maintenance needs. Gravel Roads are graded at least once annually. Throughout the year they are visually inspected during designated road patrols in accordance with MMS O.Reg.239/02 as amended. LOS Policy Statement Perform in accordance with MMS. Perform maintenance grading once per year to all gravel roads with repeat treatments, as required. Apply one application of dust suppressant (liquid calcium chloride) annually; typically in Spring. Asset Management Plan Page 20 of 30

22 Signs SANITARY SYSTEM Sanitary Sewers The value of signs is $615,761, they include information, priority, regulatory and warning signs in the Town of Wasaga Beach. Sign condition and reflectivity is legislated by O.Reg. 239/02 (Minimum Maintenance Standards). Retro-reflectivity inspections are performed annually on prescribed regulatory and warning signs to ensure that they meet the requirements of the Ontario Traffic Manual (MTO). Response time to address and/or replace deficient signs is legislated by MMS (O.Reg. 239/02) based on the Classification of Road. Database is updated annually. LOS Policy Statement Perform annual retro-reflectivity and condition assessments as outlined by O.Reg. 239/02 (MMS). Address and/or replace deficient signs as having failed reflectivity guidelines within the legislated time allotment. Sewers ultimately discharge via gravity and sewage forcemains via pumping stations to the Water Pollution Control Plant (WPCP). Due to the high costs associated with treating wastewater, it is imperative that the amount of stormwater and/or groundwater infiltration is minimized in the sanitary network. Key performance indicators include the following: The number of sewer main blockages per year Condition Assessment is reactive; particularly given the age of the infrastructure (i.e. less than 35 years old). Closed Circuit Video Television (CCTV) inspections are performed when blockages occur and/or as needed. A sanitary sewer flushing program is in place. It is endeavoured to flush each main in the network once every five years In order to assess and quantity existing pipe capacities and flow surcharges from storm events and/or infiltration into the sanitary network, a Sewer Model is to be developed and maintained every five (5) years. Current replacement strategy is reactive and consists of replacing failed infrastructure once failure occurs. LOS Policy Statement Work towards eliminating groundwater infiltration and/or stormwater infiltration. Work towards flushing sanitary mains once every five years, as scheduled by the Water/Sewer Foreman. Perform CCTV/video inspections, as required. Prioritize and develop a flushing program of critical mains that are subject to grease, back-up, etc. Asset Management Plan Page 21 of 30

23 Sanitary Manholes Sanitary Treatment Facilities Sanitary Sewage Pumping/Lift Stations Storm Sewers, incl. Inlets Sanitary manholes are to be inspected concurrent with the flushing program to identify any structural deficiencies and/or signs of infiltration. LOS Policy Statement Inspect sanitary manholes concurrent with the sewer main flushing program. Issue report and develop an action plan to address deficient manholes. To be developed in consultation with OCWA see 10 Year Plan To be developed in consultation with OCWA see 10 Year Plan Storm sewers and inlets are to be kept free and clear of debris to maximize the flow of storm water to downstream systems, including the Nottawasaga Bay and river/stream systems Storm systems are to be assessed and monitored for sediment build-up and/or obstructions. Reducing build-up and obstructions will mitigate flooding during storm events. Storm Sewer and Drainage Systems are to be monitored throughout the winter months and spring to ensure that snowpack and ice does not obstruct the inlets and downstream flow capacity. Winter Drainage Priority Areas are identified, monitored, and addressed in advance of anticipated melting periods. Closed Circuit Video Television (CCTV) inspections are performed when blockages occur and/or as needed. Road Crossing Culverts LOS Policy Statement Assess the functionality of all storm sewer systems during the catchbasin sump clean-out program and as required. Road crossing culverts are to be kept free and clear of debris that can impeded the flow of storm water to downstream systems. Culverts can be visually inspected during the road patrols performed by supervisory staff, as well as during annual culvert and ditching programs. LOS Policy Statement Coordinate inspection of all road crossing culverts and perform maintenance as required. Asset Management Plan Page 22 of 30

24 Roadside Ditches Ditches are to be visually inspected to assess current operation and flow capacities. Elevations of culvert inverts should be collected to confirm positive drainage along the roadside drainage network Imperfections and deficiencies along the roadside drainage systems are identified and monitored in advance of scheduled maintenance. Ditching Program to be scheduled on a rotational basis (Ideally 5-Year Cycle), such that maintenance efforts are equitably shared across the Municipality. Predominant sandy soils throughout the Town permit infiltration techniques as an alternative to conventional roadside drainage systems where outlets do not currently exist. Elevation of groundwater table must be accounted for when designing and maintaining roadside ditches. Storm Structures/Ponds LOS Policy Statement Inspect ditches concurrent with road patrols, and as required; Perform maintenance as scheduled and outlined in the Ditching Program, subject to budget. Storm structures provide an inlet and outlet point for runoff and stormwater into the stormwater system. It is critical to visually inspect and remove any obstructions in the spring and fall to ensure effective conveyance capacities. Structures are visually inspected from the ground surface. Catchbasin sumps are to be inspected and cleaned out, as required, and at the discretion of the Water/Sewer or Roads Foreman. Stormwater Quality Structures (Oil/Grit Separators) are to be assessed annually with clean-out scheduled in accordance with Manufacturers Recommendations. SWM ponds are visually inspected annually with a more detailed inspection every 5 years. LOS Policy Statement Inspect storm structures once every five years; Stormwater Quality Structures (OGS) to be inspected and cleaned -out in accordance with Manufacturer s recommendations. Asset Management Plan Page 23 of 30

25 WATER DISTRIBUTION SYSTEM Watermains The water distribution system is currently age based, with the older watermain installed approximately 35 years ago. Watermain and service breaks are tracked in the Town s Work Manager Software System and summarized annually in accordance with the Town s Drinking Water Quality Management System and Operational Plan. Current replacement strategy is reactive and includes the replacement of localized/failed watermain immediately upon confirmation of failure. The implementation of regular valve exercising and hydrant maintenance program is underway. Water Distribution Leak Detection Program is scheduled based on age of infrastructure to better define any system losses and localized service leaks. Fleet Buildings LOS Policy Statement Localized watermain and water service breaks are addressed upon failure Consideration will be given to replacing watermains after 50 years; however, this will further be evaluated based on the number of breaks along the section(s) of watermain strategies will be done concurrently with road and related re-construction projects, if possible Vehicle conditions are monitored annually and assessed by staff, since vehicle maintenance is performed by Town mechanic(s). A Town-wide Vehicle Schedule has been developed for each department. Meet legislative requirements (fire/building codes and etc.) Accessibility Requirements met where applicable. Safe and functional for public use. Conditions assessments to be completed as necessary at this point only the Arena has been completed. Asset Management Plan Page 24 of 30

26 5.0 Asset Management Strategy The asset management strategy is the set of 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. These actions assist in forming the long-term capital and operating forecast that includes: A) Non-infrastructure solutions include actions or policies that can lower costs or extend asset life (e.g., better integrated infrastructure planning and land use planning, demand management, insurance, process optimization, managed failures, etc.). The Town very recently conducted an energy audit at some of it s facilities which resulted in understanding where there are pockets for improvement in terms of energy savings and maintenance improvements. Additionally the Town will continue the following assessment tools: 1) Roads Need Study conduct every five years; 2) Bridge Structural Condition Inspections (OSIM) conduct every two years; 3) Building Assessments will be conducted when required; and 4) Vehicles will continue to be assessed according to the Vehicle Schedule by Town mechanics. B) Maintenance activities include regularly scheduled inspection and maintenance, or more significant repair and activities associated with unexpected events. As outlined in the levels of service the Town in general meets the minimum maintenance standards as prescribed in Ontario regulations. However through the various conditions assessments noted above maintenance plans are created and managed through the Public Works and Parks, Facilities and Recreation Departments. C) Renewal/Rehabilitation activities - With respect to major repairs and rehabilitation for assets these are addressed through the annual budget process and financed through various means including the use of the Capital Reserve. D) /Disposal Activities - Assets will be replaced based on condition assessments and/or failure, and the procurement of those assets will follow the Town s Purchasing Policy (included as an Appendix). In many cases where vehicles and/or equipment is purchased the Town may work with other Municipalities and/or the County of Simcoe to pool projects with the hopes of achieving lower costs. E) Expansion Activities Expansion and growth activities will occur in accordance with the Town s Development Charge Background study where actual growth meets the forecasted amounts. 5.1 Procurement Methods The Town s Council-approved Purchasing Bylaw # guides all procurement practices. The key objectives of this bylaw are to: Encourage competitive bidding; Ensure objectivity and integrity of the procurement process; Promote local sourcing where possible; Asset Management Plan Page 25 of 30

27 Ensure fairness between bidders; and Maximize savings for the taxpayers. The full bylaw is available on the Town s website. Procurement can include joint contracts with internal divisions and external municipalities/agencies through capital planning or development-related infrastructure planning. 6.0 Long-Term Forecast & Financing Strategy The Town has maintained a 10 Year Capital Plan and 4 Year Operating forecast for several years. This 10 Year Capital Plan assists staff in determining the needs of the community, however in the past it has primarily (65% New / 35% Old) been made up of new and/or growth-related items since the Town s infrastructure in general is fairly young and in good shape and managed well through maintenance operations. Some major exceptions to this are the Schoonertown Bridge Project and the planned rehabilitation of the Main Street Bridge (2017/2018), addressing the needs of both these bridges through grant funds, debentures and the Capital Fund has greatly assisted the Town in ensuring that the asset needs were met while not overly burdening the taxpayer. Over the past several years the average taxation levy in support of the Capital Program has been approximately $1.6 Million providing support to the total capital program (excluding Water/Wastewater) of approximately $10.0 Million. Overall this program has been supported through the following revenue sources: 1) Tax Levy average $1.6 Million/year; 2) Transfers from Reserves average $1.2 Million/year; 3) Grant Funding average $0.8 Million/year; and 4) Debentures average $0.5 Million/year. The Town is fortunate in that the current Annual Repayment Limit provides for opportunity to borrow since many of the original debentures have been repaid, with the exception of the Beachfront Property Purchase. Additionally it is important to note that the annual maintenance program funded through the Operational Budget averages at $1.0 Million per year. Asset Management Plan Page 26 of 30

28 6.1 Tax Supported Assets Lifecycle Contribution Based on the information provided throughout the asset management plan the following chart shows the amounts that should be reserved each year in order to ensure funds are available for the lifecycle replacement and/or rehabilitation. Table Summary Tax Supported Assets - Lifecycle Contribution Cost in 2015 $ Useful Life Weighted Useful Life Remaining Annual Cost Asset Class Road Assets 90,621, ,566,187 Storm Sewer Assets 46,343, ,607 Vehicles & Equipment 23,955, ,888,352 Buildings 29,933, ,289 Bridges 16,120, ,402 Total Tax Supported Assets $ 206,974,564 $ 8,460,838 As discussed in section 6.0 the Town currently invests approximately 35% of its total Capital Budget in replacement and/or rehabilitation activities or $3.5 Million. This leaves a funding gap of $5.0 Million annually based on the current assessment of assets, this is currently offset by the average annual contribution to the Capital Reserve at $2.2 Million leaving the gap at $2.8 Million. The Town is not alone in this situation as many municipalities across the country are dealing with similar shortfalls (i.e. funding gap). However the Town is fortunate in that its assets continue to perform at expected service levels at this point and Council has made regular transfers to the Capital Reserve at on average $2.2 Million per year over the last 5 years where the budget and affordability allow. The graph below represents the replacement schedule required over the next 10 years, you will note that neither the Bridge nor Storm Sewer Category has any replacement needs during this time frame and only require a contribution to the Lifecycle Fund. Additionally you will note that the Arena has been included as a replacement building in the year 2020 and is only included at the cost of replacing the existing arena with no growth related (i.e. additional Ice Pad / Sports Complex) items being included. Please note that a full 20 year schedule has been included in the working papers of the plan and is available upon request. Asset Management Plan Page 27 of 30

29 6.2 Tax Supported Assets Financing Strategy As discussed in the previous section the current funding gap for the Town is $2.8 Million, this includes a dedicated contribution to the Capital Fund. This $2.2 Million contribution per year is vitally important to ensure viability and feasibility of the Asset management Plan. Based on the Town continuing to contribute $2.2 Million to the Capital Fund the following financing strategy for tax supported assets will ensure appropriate funding is available where necessary: 1) Continued Contribution of $2.2 Mio on average per year (keeping in mind affordability and budget restrictions); 2) Increase the Municipal Capital Levy where possible to maintain an approximate $2.25 Million amount where the difference between actual capital projects and the total of $2.25 Million are transferred to reserves in low capital intensive years (to be slowly incorporated over the next 5 years when budget allows); 3) Use of Grants annual amount assumed at $1.05 Million (i.e. Federal Gas Tax / OCIF); and 4) Debentures applied where needed based on the replacement schedule. Asset Management Plan Page 28 of 30

30 Following the above financing schedule would mean that the Town will be increasing the debt levels however given the current ARL, it is manageable. 6.3 W/WW User Fee Supported Assets Lifecycle Contribution Based on the information provided throughout the asset management plan the following chart shows the amounts that should be reserved each year in order to ensure funds are available for the lifecycle replacement and/or rehabilitation. Annually staff updates the Water/Wastewater rates that take this information into consideration along with the residents ability to pay; based on this information the average amount transferred to the Lifecycle reserve has been $1.3 Million per year over the last 5 years. Please note that an average of $0.450 Million was also transferred to repay loan amounts that are now completed and it is forecasted that the contribution to reserves will increase to an average of $2.3 Million beginning in 2018 (based on 2015 Water/Wastewater Rates Update). Table Summary Water/Wastewater User Fee Supported Assets Cost in 2015 $ Useful Life Weighted Useful Life Remaining Annual Cost Asset Class Buildings 65,877, ,141,309 Vehicles & Equipment 7,104, ,244 Wastewater Assets 104,711, ,964,847 Water Assets 77,544, ,450,812 Total $ 255,237,643 $ 210 $ 182 $ 4,972,211 Given that the Town will continue with an average of $2.3 Million (based on 2015 Water/Wastewater Rate Study) in contributions this leaves a shortfall of $2.6 Million per year. Asset Management Plan Page 29 of 30

31 6.4 W/WW User Fee Supported Assets Financing Strategy As discussed in the previous section the current funding gap for the Town is $2.6 Million, this includes a dedicated contribution to the Water/Wastewater Fund of $2.3 Million per year and thus is vitally important to ensure feasibility of the Asset management Plan. Based on the Town continuing to contribute $2.3 Million to the Water/Wastewater Fund the following financing strategy for water supported assets will ensure appropriate funding is available where necessary: 1) Continued Contribution of $2.3 Mio (keeping in mind affordability and budget restrictions); 2) Rate increases of 1.5% to 2.0% per year where each percentage point equates to approximately $65k (note that in the latest 2015 Water/Wastewater rates study a 2.0% increase per year is applied); 3) Use of Grants where they become available; and 4) Debentures applied where needed based on the replacement schedule. 7.0 Summary and Conclusions Residents of Town of Wasaga Beach enjoy services from, the road network, water system, sanitary sewer collection system, community facilities and drainage works that exist in the community. To maintain these services the Town faces the same challenges as all other municipalities in Canada. Challenges that include more stringent environmental regulations, sustainability issues, increasing power and fuel costs, growth and aging infrastructure. The Town s infrastructure, including the road network, water system, sanitary collection system, drainage works and buildings, has grown considerably over the last thirty years. The Town however is fortunate in that the current inventory of assets is both young and in good condition. This provides an opportunity to the Town to begin the savings today to ensure a sustainable future. The long term financial plans for asset renewal will provide Council with information needed to develop longer term strategies for funding asset renewal and for development of an Asset Management Policy. Town staff will continue to improve asset management capacity within the organization to provide critical information for decision making. Future Asset Management Updates will have long term plans that include operating and growth costs for all asset infrastructures, in addition to the renewal costs provided in the current Asset Management Plan. Asset Management Plan Page 30 of 30