The regulation proposes that municipalities must prepare asset management plans which would meet the requirements of the regulation, such as:

Transcription

1 PROPOSED ASSET MANAGEMENT PLANNING REGULATION BACKGROUND On May 25, 2017, the Ministry of Infrastructure released a proposed regulation under the Infrastructure for Jobs and Prosperity Act, The proposed regulation would impose requirements on municipalities related to municipal asset management plans, and is posted on the Environmental Registry for comment. ANALYSIS At the May 24, 2017 council meeting, staff presented a report on the Infrastructure for Jobs and Prosperity Act, 2015, which requires the government and the broader public sector to align infrastructure investments with provincial priorities identified through long-term planning, and that municipalities are required to consider the guiding principles of that Act. The proposed regulation would impose requirements on municipalities to improve municipal asset management planning. The regulation proposes that municipalities must prepare asset management plans which would meet the requirements of the regulation, such as: Strategic Asset Management Policy linking which goals, plans and policies (e.g. the Official Plan) the municipal asset management would support; how the asset management plan will impact the municipal budget and long-term financial plans/strategies; the municipality s plan for continuous improvement and adoption of best practices; identification of vulnerabilities; mitigation strategies for climate change and disaster planning; identification of who is the executive lead for the municipality; community consultation; and others Municipal Asset Management Plans would include a phased approach for addressing core infrastructure (roads, bridges, culverts, any assets used in the collection, conveyance/distribution, treatment or disposal of wastewater/water, and stormwater management systems) by January 1, 2020, then all infrastructure by January 1, 2021, and further detailing for all infrastructure as part of the plan by January 1, These requirements would include: o Explanation of the current levels of service being provided by each infrastructure asset, with varying information requirements depending on the type of asset; Submitted By: Jill Bellchamber-Glazier in consultation with Kristen McGill, Tara Clayton and Steve MacDonald for June 21, 2017 Council Meeting F:\ZUserData\CouncilBoardsBylaws\C04CouncilAgendaMinutes\Agendas\2017_SWM_e_Agenda\2017_ 06_June21_7PM\ Proposed Regulation Municipal Asset Management.docxF:\ZUserData\Administration\A02StaffCommitteesMeetings\Senior Management Team\ Proposed Regulation Municipal Asset Management.docx

2 o Inventory analysis of asset class, type, quantity, total replacement value and average age. Including information on how the condition of assets are being assessed and the condition of the assets; o Estimated cost to sustain current service levels, including the total maintenance cost, renewal, rehabilitation, replacement, disposal, upgrades, and new construction required each year. With additional information on operating costs, like energy costs, looking forward 10 years, which would incorporate anticipated population and economic activities which may impact future service needs; o Additional requirements for municipalities with populations over 25,000, including additional analysis related to such areas as energy costs, and links between services and growth; o Proposed levels of service, to be outlined each year for a 10 year period; o Inventory analysis; o Financial strategy to include estimated capital expenditure forecasts, revenue dedicated to capital financing, estimated capital reserve contributions and withdrawals and the estimated debt service payments, identification of key assumptions, and funding options explored; o Addressing where there are ongoing funding shortfalls between the required investment required to fund all activities (maintenance, renewal, rehabilitation, replacement, disposal, upgrades, new construction) and how the municipality intends to address such shortfalls. Through this analysis, if it were to be identified that the municipality cannot conduct all of the activities required to provide the proposed level of service the municipality would be required to identify how they intend to manage the risks associated with not undertaking those activities. Updating of Asset Management Plan would be required every five years after January 1, Approval of Asset Management Plan municipalities would be required to have the asset management plan approved by a licensed engineering practitioner and the executive lead of the municipality prior to it being presented to council for approval. Annual Progress Update councils would need to be provided with an annual update on the asset management planning progress starting in 2021, which would include specific information. Public Posting and Provision of Plans municipalities would be required to post both the strategic asset management policy and the asset management plan on the municipal websites, as well as making copies available to the public. Submitted By: Jill Bellchamber-Glazier in consultation with Kristen McGill, Tara Clayton and Steve MacDonald for June 21, 2017 Council Meeting F:\ZUserData\CouncilBoardsBylaws\C04CouncilAgendaMinutes\Agendas\2017_SWM_e_Agenda\2017_ 06_June21_7PM\ Proposed Regulation Municipal Asset Management.docxF:\ZUserData\Administration\A02StaffCommitteesMeetings\Senior Management Team\ Proposed Regulation Municipal Asset Management.docx

3 Data Collection - the province would require two sets of data from municipalities, one on actuals reporting on an annual basis, and one on projections reporting which is updated every five years. The comment period on the proposed regulation is open until July 24, Southwest Middlesex has an approved Asset Management Plan which was prepared by Dillon Consulting. To prepare for compliance with the proposed requirements Southwest Middlesex should consider opportunities to improve data collection related to municipal services and the infrastructure required to deliver such services. Increased use of available technology, including connectivity and software, should provide for efficient means of gathering data to assist in developing plans and updating inventory. Additional external resources for condition assessments will also likely be required for service areas and infrastructure where there is limited current information. The Association of Municipalities of Ontario is expected to make comment on the proposed regulation. Once that information is available council may wish to consider endorsing AMO s comments for submission to the Ministry of Infrastructure. RECOMMENDATION THAT the report on the Proposed Asset Management Regulation be received for information. Previous related reports: Council Report - May 24, 2017 Infrastructure for Jobs and Prosperity Act, 2015 Attachments: Proposed Regulation posted on the Ontario Environmental Registry AMO Communication, June 8, 2017 Submitted By: Jill Bellchamber-Glazier in consultation with Kristen McGill, Tara Clayton and Steve MacDonald for June 21, 2017 Council Meeting F:\ZUserData\CouncilBoardsBylaws\C04CouncilAgendaMinutes\Agendas\2017_SWM_e_Agenda\2017_ 06_June21_7PM\ Proposed Regulation Municipal Asset Management.docxF:\ZUserData\Administration\A02StaffCommitteesMeetings\Senior Management Team\ Proposed Regulation Municipal Asset Management.docx

4 Government of Ontario Site Map Français MyEBR About the Registry Search How do I...? MyEBR FAQs Links Contact Us Logout Advanced Search Basic Search Court Action Welcome, Session Timeout: 28 minutes What's on the RegistryPurposeStatements of Environmental Values Advanced SearchBasic SearchCourt Action Find a NoticeSubmit a CommentUse MyEBR My Watch ListMy Saved SearchMy Account Policy Proposal Notice: Title: Proposed municipal asset management planning regulation EBR Registry Number: Ministry: Ministry of Economic Development, Employment and Infrastructure Date Proposal loaded to the Registry: May 25, 2017 Please note: This proposal notice is for the Ministry of Infrastructure. The Environmental Registry is currently being updated to include the Ministry of Infrastructure in place of the former Ministry of Economic Development, Employment and Infrastructure. Keyword(s): Legislation Comment Period: 60 days: submissions may be made between May 25, 2017 and July 24, 2017.

5 Description of Policy: Overview: Asset management planning is essential for the future resilience of Ontario communities. Municipalities need effective plans to take care of their infrastructure over the long term. In addition, it is important to better understand infrastructure needs throughout Ontario, so that the province, municipalities, and the federal government can work together to address challenges posed by ageing infrastructure and increasing renewal pressures. Improved municipal asset management planning is a vital step in Ontario s Municipal Infrastructure Strategy and will provide the foundation to improving the long-term sustainability of infrastructure throughout the province. The Infrastructure for Jobs and Prosperity Act, 2015, was proclaimed on May 1, 2016 and includes an authority for the province to regulate municipal asset management planning. The purpose of the proposed regulation is to implement best practices throughout the municipal sector and provide a degree of consistency to support collaboration between municipalities, and among municipalities and the province. The regulation would balance valuable consistency with appropriate flexibility, and would include phased implementation. The regulation would provide certainty around future provincial asset management planning requirements, and would be supported by the collection of selected data to capture the key aspects of municipal asset management: resilience and sustainability. This regulation would aim to help municipalities more clearly identify what their infrastructure needs are, and therefore help them work towards a more sustainable position regarding the funding of their infrastructure. Building on the province s 2012 Building Together: Guide for Municipal Asset Management Plans, the regulation would set out requirements to improve asset management planning. This would include the content for municipal asset management plans and the phases of preparation. Municipalities would be required to adopt strategic asset management policies that would promote best practices and link asset management planning with budgeting, Contact: All comments on this proposal must be directed to: Joshua McCann Senior Policy Analyst Ministry of Economic Development, Employment and Infrastructure Infrastructure Policy Division Inter-Governmental Policy Branch Municipal Infrastructure Policy Unit 900 Bay Street Floor 5 Mowat Block Toronto ON M7A 1C2 Phone: (647) To submit a comment online, click the submit button below: (opens in new window) Additional Information: The documents linked below are provided for the purposes of enhancing public consultation.

6 operations, maintenance and associated other municipal planning activities. Municipalities would also be required to report on implementation annually. Definitions: For the purpose of this posting, the following terms are defined: Infrastructure Assets are tangible capital assets directly owned by a municipality or consolidated on the financial statements of a municipality and may include green infrastructure as part of these assets, but does not include these assets where they are managed by a joint municipal water board. All links will open in a new window 1. Table 1: Actuals Reporting 2. Table 2: Projections Reporting 3. Proposed Levels of Service Tables Core Infrastructure Assets are the following Infrastructure Assets: roads; bridges; culverts; any assets, used in the collection, conveyance/distribution, treatment or disposal of wastewater/water; and stormwater management systems. Application: This Environmental Registry posting proposes that municipalities would be prescribed as a broader public sector body which must prepare asset management plans meeting the requirements of the proposed regulation. Regulation Proposal: Strategic Asset Management Policy All municipalities would be required to develop and adopt a strategic asset management policy by January 1, At least every five years from that date the municipality would be required to review the policy and if necessary update it. The policy would include: Which municipal goals, plans (e.g., official plan, strategic plan, master plans) or policies the municipality s asset management plan would support A process for how the asset management plan would affect the development of the municipal budget and any applicable long-term financial plans

7 The municipality s approach to continuous improvement and adoption of best practices regarding asset management planning The principles that would guide asset management planning in the municipality, which would be required to include the principles in section 3 of the Infrastructure for Jobs and Prosperity Act, 2015 A commitment to consider in asset management planning: o the actions that may be required to address the risks and vulnerabilities that may be caused by climate change to the municipality s infrastructure assets, including to: operations requirements (e.g. increased maintenance schedules); levels of service (e.g. raising or lowering levels of service); and lifecycle management; and the anticipated costs that could arise from these impacts, and adaptation opportunities that may be undertaken to manage these potential risks o mitigation approaches to climate change, such as greenhouse gas emission (GHG) reduction goals and targets o disaster planning and any required contingency funding. A process to ensure that asset management planning would be aligned with Ontario s land-use planning framework, including any relevant policy statements issued under section 3(1) of the Planning Act; provincial plans as defined in the Planning Act; and, municipal official plans A discussion of capitalization thresholds used to determine which assets are to be included in the asset management plan and how this compares to the municipality s Tangible Capital Asset policy, if one is in place A commitment to coordinate planning between interrelated infrastructure assets with separate ownership structures by pursuing collaborative opportunities with neighbouring municipalities and jointly-owned municipal bodies Identification of who would be responsible for asset management planning, including an executive lead and how council will be involved; and

8 A commitment to provide opportunities for municipal residents and other interested parties to provide input into asset management planning. Municipal Asset Management Plans Municipalities would be required to prepare an asset management plan in three phases: 1. Phase I would address core infrastructure assets, and would be required to be completed by January 1, Phase II would expand on Phase I by including all infrastructure assets in the plan by January 1, Phase III would require further details to be provided for all infrastructure assets by January 1, Proposed requirements to be included in Phase l (by January 1, 2020) and Phase II (by January 1, 2021): Current Levels of Service A plain language explanation of the current levels of service being provided by each category of infrastructure asset would be required. For core infrastructure assets, municipalities would measure current levels of service according to the information defined in the following two columns found in the Proposed Levels of Service tables (see Additional Information): the community levels of service column; and the technical levels of service column. Municipalities would also be required to monitor performance measures relevant to their municipality that address service delivery and asset operation, such as energy usage and cost. Inventory Analysis Municipal infrastructure assets would be summarized by asset class, including type and quantity, total replacement value, and average age. The inventory analysis would also discuss the municipality s approach to assessing asset condition using industry-accepted engineering practices,

9 and summarize the information available on the condition of the assets. Estimated Cost to Sustain Current Levels of Service An estimate of the capital expenditures (i.e., total cost of maintenance, renewal, rehabilitation, replacement, disposal, upgrades, new construction) needed each year, as well as any significant operating costs, including energy costs, for the ten years following the year that the current levels of service are established, to maintain the current levels of service over the long term. The approach to developing the estimate would be documented and based on the lifecycle management activities expected. Assumptions regarding anticipated future changes in population and economic activity would be included. Municipalities with populations over 25,000: Estimated Costs to Service Growth Municipalities with a 2016 Statistics Canada census population of 25,000 or greater would be required to identify which estimated capital expenditures and significant operating costs, including energy costs, would be related to new construction and upgraded capacity of existing assets, including the extension of services to previously unserved areas and expansion of services to meet growth demands. In the Greater Golden Horseshoe, growth demands must conform to forecasted growth for the municipality as set out in the Growth Plan for the Greater Golden Horseshoe and reflected in municipal plans. This requirement is necessary to ensure that large municipalities analyze the links between providing levels of service, costs and the impacts of growth. It has not been included as a requirement for small municipalities as the province understands that these municipalities lack the capacity to undertake the level of analysis required to support this work. Though this section would apply to municipalities with populations of 25,000 or greater, the province would encourage all municipalities to consider the costs related to growth as outlined in this section.

10 Proposed requirements to be included in Phase lli (by January 1, 2022): Proposed Levels of Service A plain language explanation of the proposed levels of service for each category of infrastructure asset would be required. For core infrastructure assets, this would be measured according to the information defined in the following two columns of the Proposed Levels of Service tables (see Additional Information): the community levels of service column; and the technical levels of service column. The proposed levels of service would need to be outlined each year, for a ten year period that follows the most recent year where current levels of service have been measured. The asset management plan would also discuss why the proposed levels of service are appropriate for the municipality, how they differ from the current levels of service set out in Phase I and II, when they would be achieved, and how they would take affordability and sustainability into account. Similar to requirements in Phases I and II, municipalities would also be required to continue to track service delivery and asset operation through performance measures established by the municipality, such as energy usage and cost. Inventory Analysis The asset inventory provided in Phase I and II would be updated. Lifecycle management strategy Municipalities would be required to document a lifecycle management strategy that would outline the lifecycle management activities the municipality would undertake to maintain the proposed levels of service and manage risk (e.g. climate change impacts), with consideration to the full lifecycle costs of the assets, including energy costs.

11 Lifecycle activities would be based on options examined by the municipality to reduce the overall lifecycle costs, including through green infrastructure and noninfrastructure solutions such as demand management and conservation measures. The asset management plan would be required to contain a summary of the lifecycle activities that would be undertaken for all assets, for the ten year period aligned with the proposed levels of service section of the asset management plan. Assumptions regarding anticipated future changes in population and economic activity would be included. Financial strategy An asset management plan would include a financial strategy that contains the following items, each year for the ten year period aligned with the proposed levels of service section of the asset management plan: estimated capital expenditure forecasts (i.e., total cost of maintenance, renewal, rehabilitation, replacement, disposal, new construction and capacity upgrade activities), and significant operating costs, including energy costs, related to lifecycle activities revenue dedicated to capital financing estimated capital reserve contributions and withdrawals; and estimated debt service payments. Municipalities would be required to outline key assumptions made to develop the financial strategy, and other alternative funding options that were considered (e.g. increasing debt, property taxes, user-fees, etc.). Addressing shortfalls Municipalities would also be required to outline any ongoing funding shortfall that exists between investments required to fund the activities in the lifecycle management strategy and the ability of the municipality to fund these activities, and how the municipality intends to address this shortfall.

12 Where municipalities cannot conduct all of the activities required to provide proposed levels of service, municipalities would discuss how they would manage the risks associated with not undertaking these activities. Municipalities with populations over 25,000: Financial Strategy to Service Growth Municipalities with a 2016 Statistics Canada census population of 25,000 or greater would be required to identify the estimated costs that are related to new construction and upgraded capacity, including the extension of services to previously unserved areas and expansion of services to meet growth demands. These municipalities would also identify the subset of forecasted revenue, by source, that is projected to come from increased population and economic activity. Though this section would apply to municipalities with populations of 25,000 or greater, the province would encourage all municipalities to examine the revenues and expenditures related to growth, as outlined in this section. Municipalities with populations over 25,000: Risk Analysis Municipalities with a 2016 Statistics Canada census population of 25,000 or greater would also include an overview of the risks associated with the asset management plan (i.e., ways the plan could fail to generate the proposed levels of service) and any actions that would be proposed in response. Though this section would apply to municipalities with populations of 25,000 or greater, the province would encourage all municipalities to analyze risks as outlined in this section. Updates, Approvals and Public Availability Updating Municipalities would be required to update the asset management plan, aligned with the requirements identified in Phase III, at least every 5 years after January 1, Approval

13 The asset management plan would be required to be approved in writing by a licensed engineering practitioner representing the municipality, and the executive lead of the municipality prior to it being presented to the municipal council for approval. Annual Progress Update Municipalities would be required to provide council with an annual update on asset management planning progress, starting in 2021, that would include: any factors affecting the ability of the municipality to meet its commitments set out in the asset management plan and strategic asset management policy a strategy to address these factors; and progress on ongoing efforts to implement the asset management plan. Public Posting and Provision of Plans Municipalities would be required to post their strategic asset management policy and asset management plan on the municipality s website, if one exists, and make copies of these documents available to the public, if requested. Data Collection The province proposes to collect two sets of asset management planning data from municipalities Actuals Reporting, which would be reported to the province every year, and Projections Reporting, which would be reported to the province as the municipality obtains the relevant data at least every 5 years as they update their asset management plan. Table 1 (see Additional Information) outlines the Actuals data that the province would collect annually, starting by May 31, 2021 for core infrastructure assets, and by May 31, 2022 for all remaining infrastructure assets. Although this data would be collected annually, municipalities would not be required to update their asset management plan annually to reflect this data.

14 Table 2 (see Additional Information) outlines the data requirements that the province would collect from municipalities as they obtain the relevant data with each update of their asset management plan. Municipalities would be required to meet their first set of reporting requirements for this data by May 31, 2023 (for all assets). Provincial Policy Alignment: Safe Drinking Water Act, 2002 The province is aware of the linkages between requirements in the Safe Drinking Water Act, 2002 and the proposed regulation included in this Environmental Registry posting. The Ministry of Infrastructure is currently exploring options, in collaboration with the Ministry of the Environment and Climate Change, to create efficiencies for municipalities that would be required to meet both requirements. Development Charges Act, 1997 The province recognizes the importance of development charges as a tool to help municipalities fund the capitalcosts for infrastructure needed to service growth. Municipalities continue to be expected to comply with the asset management plan requirements within the Development Charges Act, 1997 and its regulations in order to be able to levy a development charge. Asset Management Planning Guidance, Tools and Support: The province understands the importance of ensuring that municipalities would have the capacity to meet the requirements of the proposed asset management planning regulation. In response to feedback received during consultations in summer 2016, and to support implementation, the province is considering proposing a number of potential supports, including: In-person training Provincial support team Licenced resources Staff training courses

15 Sample documents. Other Information: Please refer to the following postings on related documents: Consultation potential municipal asset management planning regulation This document provides a summary report on the feedback the province received as a result of consultations held on the proposed regulation in summer It provides the basis for the proposed regulation set out in this Environmental Registry posting and incorporates input from over 330 individuals representing over 220 municipalities and other organizations. Discussion paper potential municipal asset management planning regulation This discussion paper outlines the proposed content for a possible regulation that was consulted on in summer It was used as the basis of discussions held online and throughout Ontario with municipalities and municipal sector stakeholders. Building Together: Guide for Municipal Asset Management Plans This guide was developed in 2012 and has been used as the provincial standard for municipal asset management planning since that time. It served as the foundation for the discussion paper and consultation undertaken regarding the proposed regulation. Purpose of Policy: Since the launch of the Municipal Infrastructure Strategy in 2012, the province has required municipalities requesting infrastructure funding to demonstrate a progressively greater commitment to asset management. While municipalities have made excellent progress in asset

16 management planning, significant differences exist among municipalities in the completeness, level of detail, and methodology and assumptions used to develop the plans. The plans also vary widely in the degree to which they are being used to inform decision making. Building on the progress municipalities have made to date, the purpose of this proposed regulation is to introduce new requirements in order to provide greater standardization and consistency to municipal asset management planning, while continuing to provide appropriate flexibility for municipalities to plan according to their own unique circumstances. Requirements would help to improve the comprehensiveness of plans that lack robust information, which could help strengthen the use of asset management plans as a tool to gain support from council and the public in addressing infrastructure challenges. Municipal asset management planning is also beneficial for establishing important information that can be used by the province, municipalities, and the federal government to work together to address infrastructure challenges. The Municipal Infrastructure Strategy is a long-term, collaborative initiative. While finalizing the proposed regulation is an important step, practices will continue to improve on an ongoing basis. For example, in the future, as provincial and municipal capacity increases, the GHG emissions impacts of lifecycle management options could be measured and incorporated. In addition, the province will review its infrastructure funding models with the goal of bringing more emphasis to supporting proactive practices in addition to urgent health and safety issues. Public Consultation: This proposal has been posted for a 60 day public review and comment period starting May 25, If you have any questions, or would like to submit your comments, please do so by July 24, 2017 to the individual listed under "Contact". Additionally, you may submit your comments online. All comments received prior to July 24, 2017 will be considered as part of the decision-making process by the

17 Ministry if they are submitted in writing or electronically using the form provided in this notice and reference EBR Registry number Please Note: All comments and submissions received will become part of the public record. Comments received as part of the public participation process for this proposal will be considered by the decision maker for this proposal. Your personal information may be used in the decision making process on this proposal and it may be used to contact you if clarification of your comment is required. It may be shared (along with your comment) with other Ontario Ministries for use in the decision making process. Questions about this collection should be directed to the contact mentioned on the Proposal Notice page. Other Public Consultation Opportunities: The Ministry of Infrastructure is now seeking comments on this posting, including the possible tools and support that would be desired to assist municipal implementation. To help guide the development of the proposed regulation, the province consulted the municipal sector throughout the summer of These consultations focused on what should be included in a regulation to best help advance progress in municipal asset management planning. The province also sought input on how good asset management practices could be promoted more generally, and what is needed to engage municipalities and promote a broader culture of asset management planning. By the end of the consultations, over 330 individuals representing over 220 municipalities and other organization provided more than 1600 comments. A summary report detailing this feedback can be found under the additional information section of this Environment Registry proposal. The feedback received during the summer 2016 consultations has informed changes to the proposed regulation, and will be used further in exploring potential tools and resources that may be helpful to municipalities to implement the regulation, if approved.

18 Regulatory Impact Statement: The proposed municipal asset management planning regulation is intended to build upon the asset management work that municipalities are already undertaking. It is unlikely that most municipalities would incur significant financial impacts complying with the regulation, if approved. Smaller municipalities may face some capacity challenges and may require some assistance to meet the requirements of the regulation, if approved. This posting discusses some of the proposed tools and supports that the province would consider as part of the implementation of the proposed regulation. Such tools could help to reduce the potential financial burden that small municipalities may face. Additionally, small, rural and northern municipalities may be supported in part by the Ontario Community Infrastructure Fund, which includes asset management planning activities as an eligible funding category. The materials on this web site are protected by Crown copyright. You may copy and re-distribute any of the Environmental Bill of Rights information on this web site provided that the contents remain unchanged and the source of the contents is clearly referenced. You are not permitted to alter or add to the contents. ONTARIO HOME CONTACTS HELP SITE MAP FRANÇAIS This site is maintained by the Government of Ontario, Canada. PRIVACY IMPORTANT NOTICES Copyright information: Queen's Printer for Ontario,

19 Table 1: Actuals Reporting* Data Current Levels of Service Detail The current level of service provided in the previous year, measured according to the technical levels of service column defined in the Proposed Levels of Service tables (see Additional Information). Revenue Dedicated to Capital Financing All revenue amounts that were dedicated to capital expenditures from the previous year, broken down by source. *It should be noted that the province would also utilize other information already collected from municipalities through the Financial Information Return (FIR) process, including annual capital expenditures, capital reserve adjustments and debt service payments.

20 Table 2: Projections Reporting* The information below would be reported to the province by May 31 of the year following the municipality s most recent council-approved update of their asset management plan. This would need to occur at least every 5 years, as municipalities would be required to update their asset management plan every 5 years. Data Proposed Levels of Service Projected Capital Expenditure Requirements Projected Capital Reserve Adjustments (annual +/-) Projected Debt Service Payments Projected Revenue Dedicated to Capital Financing Replacement cost value Detail The proposed level of service, for ten years, as aligned with the respective information contained in the most recent update of the municipal asset management plan. This requirement would apply only to the technical levels of service measured by the municipality measured according to the technical levels of service column defined in the Proposed Levels of Service tables (see Additional Information). The projected capital expenditure requirements, for ten years, as aligned with the respective information contained in the most recent update of the municipal asset management plan. The projected capital reserve contributions, with contributions or withdrawals, for ten years, as aligned with the respective information contained in the most recent update of the municipal asset management plan. The projected debt service payments, for ten years, as aligned with the respective information contained in the most recent update of the municipal asset management plan. The projected revenue that the municipality expects to raise that will be dedicated to capital projects, excluding non-guaranteed grants, for ten years, as aligned with the respective information contained in the most recent update of the municipal asset management plan. The estimated total cost to replace all existing assets with similar assets, aligned with the replacement cost data contained in the most recent update to the municipal asset management plan. *an update on the total replacement cost value of the municipality s infrastructure would be required under Projections Reporting, although it would not be based on projected data. Rather, it would be based on the municipality s most recent, current, calculations.

21 Proposed Levels of Service Tables Note: The requirement to measure levels of service using the proposed metrics in the Community and Technical Levels of Service columns of the tables below, does not affect a municipality s obligation to comply with all applicable laws, regulations, standards and policies. Water Assets Service attribute Applicable Financial Information Return (FIR) categories Scope Water treatment Water storage Water transmission Community level of service (qualitative descriptions, images, or maps that describe end-user experience) Map(s) and/or description of which user groups and/or areas of the community (e.g., residential, commercial, industrial, agricultural, institutional, mixed-use) are connected to the municipal drinking water system Technical levels of service (metrics that describe what the municipality provides) % of properties serviced by the public potable water network Scope Water treatment Water storage Water transmission Map(s) and/or description of which user groups or areas of the community (e.g., residential, commercial, industrial, agricultural, institutional, mixed-use) have fire flow % of properties serviced by fire flow Reliability Water treatment Water transmission An overview of Ontario drinking water standards, including an explanation of the inconvenient impacts of when they are not met (e.g., boil water advisories). Discussion of the frequency of boil water advisories and service interruptions. # of connectiondays where a boil water advisory notice is in place per year # of connectiondays where service is interrupted due to water main breaks

22 Wastewater Assets Service attribute Applicable FIR categories Scope Wastewater treatment / disposal Wastewater collection / conveyance Community levels of service (qualitative descriptions, images, or maps that describe end-user experience) Map(s) and/or description of which user groups or areas of the community (e.g., residential, commercial, industrial, agricultural, institutional, mixed-use) are connected to the municipal wastewater system Technical levels of service (metrics that describe what the municipality provides) % of properties serviced by the municipal wastewater system Reliability Combined sewer / storm systems: Wastewater treatment / disposal Wastewater collection / conveyance Explanation of how combined sewer systems are designed with overflow structures in place to intentionally overflow during storm events to prevent backups into homes Description of the frequency and volume of overflows occurring in habitable areas and/or beaches. # of events per year where wastewater overflow exceeds approved overflow capacity # connection-days of backups per year # of MOECC effluent violations per year due to wastewater discharge Reliability Separate systems Wastewater treatment / disposal Wastewater collection / conveyance Explanation of how stormwater can get into sewers that are cracked, causing sewage to overflow into streets or backup into basements. Description of how resilient infrastructure is to avoid this. # of MOECC effluent violations per year due to wastewater discharge # connection-days of backups per year.

23 Stormwater Assets Service attribute Scope Applicable FIR categories Urban storm sewer system Rural storm sewer system Community level of service (qualitative descriptions, images, or maps that describe end-user experience) Map(s) and/or descriptions of which areas of the community or user groups are protected from flooding, including how much protection they have Technical levels of service (metrics that describe what the municipality provides) % of properties resilient to 100-year storm % of storm sewer system resilient to a 5- year storm Roads Different levels of service would be established and measured for a range of road classes: 1. Arterial (O. Reg. 239/02 - Minimum Maintenance Standards (MMS) classes 1 and 2), 2. Collector (MMS classes 3 and 4) and 3. Local (MMS classes 5 and 6) Service attribute Applicable FIR categories Scope Paved roads Unpaved roads Community level of service (qualitative descriptions, images, or maps that describe end-user experience) Map(s) of the road network and/or a description of its level of connectivity Technical levels of service (metrics that describe what the municipality provides) Lane-km of road class per land area (km / km 2 ) Lane-km of road class per household Quality Paved roads Unpaved roads Images that explain the different levels of road class pavement condition Average pavement condition index (PCI)

24 Bridges Service attribute Applicable FIR categories Community level of service (qualitative descriptions, images, or maps that describe end-user experience) Scope Bridges Description of the ability of bridge to provide access to different users (e.g., heavy transport vehicles, motor vehicles, emergency vehicles, pedestrians, cyclists). Technical levels of service (metrics that describe what the municipality provides) % of bridges with loading or dimensional restrictions. Quality Bridges Description or images of bridge condition and what it means for the end-user. Average bridge condition index (BCI)

25 Sheila Mccahon From: Sent: To: Subject: AMO Communications June 8, :29 PM Jill Bellchamber-glazier AMO Needs Your Attention and Assistance June 8, 2017 Members of Council and Heads of Administration: Below are three critical matters that are our immediate focus and will impact you somehow. You and your senior management should be aware of them, as they will move forward in the next few weeks: i. Proposed Asset Management Regulation is posted for comment until July 24 on the EBR (Registry Number: ) Why should you care? The regulation proposes more criteria (e.g., establishing service levels, undertaking an operational cost analysis including matters such as energy costs). It standardizes the way municipal asset management plans will be done in a rather aggressive, but phased, timeframe. Many local governments will likely need to update and expand their plans to meet the proposal. The Ministry did a consultation last year. Our advice to the government was that a regulation was not the best path forward, and the timing and the capacity challenges (staff and financial) are significant. Many councils and senior staff need to consider how this will affect them locally and provide their input: ii. WSIB is drafting a policy on chronic mental stress injuries in the workplace. Consultation ends July 7. The budget bill (Bill 127) allows for this type of claim. It feels as open-ended as the workplace harassment legislation, which in essence left it to the courts to determine based on case evidence. Finding balance in this is challenging: iii. Fair Workplaces, Better Jobs Act, 2017 (Bill 148) proposes new requirements for all employers including municipal governments. There is certainly growing concern about the impacts on the private sector. As of today, there is no information on when the provincial Standing Committee will start hearings or where: AMO s Board meets June 16 to consider its response to these items. We will send you some information on June 19. At that point, we will be looking for additional voices. Be ready. Stay tuned. 1