Section 1: Executive Summary City of London 2019 Corporate Asset Management Plan 11 Table of Contents Cityscape Introduction O.Reg 588/17 Current State of Infrastructure Current Condition Levels of Service Lifecycle Management Strategy Infrastructure Gap Financing Strategies Recommendations & Conclusions 1.1 INTRODUCTION The Corporation of the City of London’s (“City of London” or “City”) infrastructure systems are the backbone of our community. They support a range of municipal services that enable the quality of life experienced by residents, businesses, and other stakeholders. The City’s Corporate Asset Management (CAM) Program is designed to enable management of infrastructure assets in a way that connects strategic Council and community objectives to day- to-day infrastructure investment decisions. This Corporate AMP is a tactical outcome of the CAM Program, setting out the current plan for the City to manage its $20.1 Billion worth of core infrastructure under the direct ownership and control of the Corporation of the City of London. This is accomplished by: • Aligning with the Provincial regulatory landscape, meeting the requirements of O.Reg 588/17, and positioning London for grant funding applications. • Understanding the current state of the infrastructure systems. • Measuring and monitoring Level Of Service (LOS) metrics to quantify how well an infrastructure system is meeting expectations. • Establishing asset lifecycle management activities (i.e. how infrastructure is operated, maintained, rehabilitated and replaced). • Determining the optimal costs of the asset lifecycle activities required to ensure the infrastructure systems provide service levels that meet community expectations. • Establishing a financial strategy to fund the expenditures that are required to complete the optimal lifecycle activities for Council’s approval. • Prepare conclusions and provide recommendations resulting from the data analysis performed. Table 1.2 City of London Infrastructure Summary Based on existing City budget, the infrastructure gap is expected to grow from the current gap of $167.9 million to $568.8 million within the Plan’s 10 year period of analysis. The City’s proposed strategy is to mitigate the annual growth of the infrastructure gap. The strategy is to balance the affordability of municipal taxes and utility rates with the needs of the City. Failing to address growing infrastructure needs will result in increased risk of infrastructure failures that will negatively affect Londoners quality of life through more frequent impacts like road closures, water alerts, unkempt parks, etc. Failure to take care of a minor repair in the short term can lead to more costly solutions in the future. The City’s projected life cycle investment plans currently do not meet the needs of our infrastructure. If nothing is done to address the projected shortfall, the infrastructure gap will continue to grow, resulting in an untenable situation. The most efficient way to manage our assets is through well planned investments; making the right investment at the right time for the right amount. Replacement Value Current Condition Current Infrastructure Gap Cumulative 10 Year Infrastructure Gap Gap as a % of Replacement Value $20.1 Billion Good $167.9 Million $568.8 Million 2.8% Table 1.1 City of London asset replacement value, condition and gap overview A.J. Tyler Operation Centre – Bathurst Street Lambeth Arena - Beattie Street London Fleet – Sewer Cleaning Truck Stormwater Management Pond – Sunningdale Rd
19
Embed
Table of Contents Cityscape Section 1: Executive Summary › ... › CAMPlan-2019-Section1-IL.pdf · Section 1: Executive Summary City of London 2019 Corporate Asset Management Plan
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 11
Table of Contents Cityscape
IntroductionO.Reg
588/17
Current State
of
Infrastructure
Current
Condition
Levels
of
Service
Lifecycle
Management
Strategy
Infrastructure
Gap
Financing
Strategies
Recommendations
& Conclusions
1.1 INTRODUCTION
The Corporation of the City of London’s (“City of London” or “City”) infrastructure systems are the
backbone of our community. They support a range of municipal services that enable the quality of
life experienced by residents, businesses, and other stakeholders.
The City’s Corporate Asset Management (CAM) Program is designed to enable management of
infrastructure assets in a way that connects strategic Council and community objectives to day-
to-day infrastructure investment decisions.
This Corporate AMP is a tactical outcome of the CAM Program, setting out the current plan for
the City to manage its $20.1 Billion worth of core infrastructure under the direct ownership and
control of the Corporation of the City of London. This is accomplished by:
• Aligning with the Provincial regulatory landscape, meeting the requirements of O.Reg 588/17,
and positioning London for grant funding applications.
• Understanding the current state of the infrastructure systems.
• Measuring and monitoring Level Of Service (LOS) metrics to quantify how well an
infrastructure system is meeting expectations.
• Establishing asset lifecycle management activities (i.e. how infrastructure is operated,
maintained, rehabilitated and replaced).
• Determining the optimal costs of the asset lifecycle activities required to ensure the
infrastructure systems provide service levels that meet community expectations.
• Establishing a financial strategy to fund the expenditures that are required to complete the
optimal lifecycle activities for Council’s approval.
• Prepare conclusions and provide recommendations resulting from the data analysis
performed.
Table 1.2 – City of London Infrastructure Summary
Based on existing City budget, the infrastructure gap is expected to grow from the current gap of
$167.9 million to $568.8 million within the Plan’s 10 year period of analysis.
The City’s proposed strategy is to mitigate the annual growth of the infrastructure gap. The
strategy is to balance the affordability of municipal taxes and utility rates with the needs of the
City.
Failing to address growing infrastructure needs will result in increased risk of infrastructure
failures that will negatively affect Londoners quality of life through more frequent impacts like
road closures, water alerts, unkempt parks, etc. Failure to take care of a minor repair in the short
term can lead to more costly solutions in the future. The City’s projected life cycle investment
plans currently do not meet the needs of our infrastructure. If nothing is done to address the
projected shortfall, the infrastructure gap will continue to grow, resulting in an untenable situation.
The most efficient way to manage our assets is through well planned investments; making the
right investment at the right time for the right amount.
Replacement
Value
Current
Condition
Current
Infrastructure
Gap
Cumulative 10
Year
Infrastructure
Gap
Gap as a % of
Replacement
Value
$20.1 Billion Good $167.9 Million $568.8 Million 2.8%
Table 1.1 City of London asset replacement value, condition and gap overview
A.J. Tyler Operation Centre – Bathurst StreetLambeth Arena - Beattie Street London Fleet – Sewer Cleaning TruckStormwater Management Pond – Sunningdale Rd
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 12
Table of Contents Cityscape
IntroductionO.Reg
588/17
Current State
of
Infrastructure
Current
Condition
Levels
of
Service
Lifecycle
Management
Strategy
Infrastructure
Gap
Financing
Strategies
Recommendations
& Conclusions
PRECURSOR
In 2012, the Province of Ontario published ‘Building Together: Guide for Municipal Asset
Management Plans’ (AMP) to encourage and support municipalities in Ontario to develop
AMP(s) in a consistent manner.
In 2015, Ontario passed the Infrastructure for Jobs and Prosperity Act which affirmed the role
that municipal infrastructure systems play in supporting the vitality of local economies. After a
year-long industry review process, the Province created Ontario Regulation 588/17 - Asset
Management Planning for Municipal Infrastructure under the Infrastructure for Jobs and
Prosperity Act . O.Reg. 588/17 further expands on the Building Together guide, mandating
specific requirements for municipal Asset Management Policies and Asset Management Plans,
phased in over a five-year period.
O. Reg 588/17 has a phased approach with three deadlines of July 1, 2021, July 1, 2023, and
July 1, 2024. The July 1, 2021 and July 1, 2023 deadline is where ‘Core’ assets (water,
wastewater, stormwater, road and bridges) and all City infrastructure assets, respectively will
have an asset management plan documenting current levels of service. The final deadline (July
1, 2024) is to document proposed levels of service and financial strategies to fund these
expenditures.
REQUIREMENTS ACHIEVED FOR THE 2019 AMP
For directly-owned City infrastructure assets, this Corporate AMP is compliant with the July 1,
2021 and July 1, 2023 Regulation requirements. Furthermore, it also includes some components
of the July 1, 2024 requirements.
2019 AMP SCOPE
The 2019 AMP includes all directly owned assets of the City of London. O. Reg 588/17 defines a
municipal infrastructure assets as directly owned by a municipality or included on the
consolidated financial statements of a municipality (excluding joint municipal water board). The
interpretation is that Boards and Agencies will have to be in scope of the AMP by July 1, 2023.
The City is undertaking an asset management maturity assessment in late 2019/early 2020 to
determine the appropriate work to ensure July 1, 2023 regulation requirements are met with
regards to the City’s boards and agencies.
PROGRAM AREAS AND SERVICES OVERVIEW
The Program Areas and Services that are included in the scope of the 2019 AMP are listed in
Table 1.2. The purpose is to align with budget and highlight how different programs are
responsible for delivering specific services and the associated infrastructure assets used to
deliver the service.
1.2 ONTARIO REGULATION 588/17 (O. REG 588/17)
Program Area Service(s)
Water, Wastewater
Services
Water
Sanitary
Stormwater
Transportation Services
Roads
Structures
Traffic
Parking
Environmental Services Solid Waste
Parks, Recreation &
Neighbourhood Services
Recreation
Parks
Urban Forestry
Protective Services
Fire
Corporate Security & Emergency Management
Social and Health Services Long Term Care
Corporate, Operational &
Council Services
Corporate Facilities
Cultural Facilities
Fleet
Information Technology
Land
Table 1.2 City Program Areas and Service(s) in scope of the 2019 AMP
1.1 INTRODUCTION (continue)
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 13
Table of Contents Cityscape
IntroductionO.Reg
588/17
Current State
of
Infrastructure
Current
Condition
Levels
of
Service
Lifecycle
Management
Strategy
Infrastructure
Gap
Financing
Strategies
Recommendations
& Conclusions
The City owns infrastructure with a total current replacement value of $20.1 Billion. The
condition of the infrastructure is overall in Good condition meaning that the infrastructure is
adequate for now with some elements showing general signs of deterioration that require
attention and a few elements exhibiting significant deficiencies. The Current State of
Infrastructure summarizes the existing asset inventory, its replacement value, condition, age
distribution and how London stores its asset data.
The following Table highlights infrastructure the City owns directly. It is intended to portray the
range of assets and not intended as a comprehensive list.
* Note that Cycling Facilities inventory includes all Separated, Designated, and Shared categories
Figure 1.1 presents the percentage of asset replacement value by Program Area. Although this
report is directed at assets, assets alone do not reflect the entire value of the services provided
by the City. Many important services such as Parking, Long Term Care, etc. have very little hard
asset value. While reading this report, one must bear in mind that funding for assets is only one
aspect of our City’s financial requirements. The focus of the City is providing services that
sustain or improve quality of life.
Asset Inventory Unit
Watermain 1,603 km
Water Storage Reservoirs 5 Each
Sanitary Sewer 1,434 km
Storm Sewer 1,377 km
Wastewater Treatment Plants 6 Ea.
Stormwater Management Facilities 64 Ea.
Roads 3,656 Lane km
Sidewalks 1,568 Km
Cycling Facilities * 161 km
Bridges 102 Ea.
Street Lights, Traffic Signs, Signals 45,355 Ea.
Pathway & Trail 235 km
Arenas 11 Ea.
Aquatic Facilities 40 Ea.
Community Centre 13 Ea.
Trees (Street Trees, Manicured Parks, and
Woodland Trees)1,666,369 Ea.
Fire Station 14 Ea.
Table 1.3 City of London Inventory Highlights
1.3 CURRENT STATE OF INFRASTRUCTURE
Figure 1.1 City of London Infrastructure Replacement Value Summary
Figure 1.1 City of London Infrastructure Replacement
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 14
Table of Contents Cityscape
IntroductionO.Reg
588/17
Current State
of
Infrastructure
Current
Condition
Levels
of
Service
Lifecycle
Management
Strategy
Infrastructure
Gap
Financing
Strategies
Recommendations
& Conclusions
CONDITION
Figure 1.2 summarizes the overall condition distribution of the City assets, rated as Good. Good
condition indicates that the infrastructure is adequate for now with some elements showing
general signs of deterioration that require attention. The assets that are of concern to the City
are the smaller fraction of assets listed in Poor or Very Poor condition. These are the assets that
are approaching the end of their useful lives. They may still be functioning but at a questionable
level of service and the City needs to be prepared to respond to failures or proactively address
them before they fail. This reflects an area in need of investment.
This report uses a combination of methods to determine the asset conditions presented. Some
assets undergo routine formal condition assessments while for some assets, condition
information is based on the age and expected useful life of the asset.
QUANTIFYING LEVELS OF SERVICE
The AMP quantifies the levels of service provided by infrastructure systems through a series of
performance metrics for each service grouping. Levels of service (LOS) tables for each service
grouping are developed and maintained through discussions with staff in all service areas that
support the provision of the respective service(s). The structure of all the LOS tables is the same
for each service grouping. Major components of the tables are: identifying customer values,
corporate LOS objectives, customer/Council focused performance measures, and technical
focused performance measures. The LOS measures are established through discussions with
staff and also include mandatory metrics that are prescribed by O.Reg 588/17. LOS metrics are
split between foundational and advanced metrics.
Customer and technical performance measures include both the current performance, as well as
a proposed future performance target, as listed in Figure 1.3.
1.3.1 CURRENT CONDITION
Figure 1.2 City of London Overall Condition
1.4 LEVELS OF SERVICE
No Change Positive Upward Positive Downward
Figure 1.3 Level of Service Target Legend
Victoria Park – London Downtown
38%
27%
21%
10% 3%
1%
Very Good Good Fair Poor Very Poor Not Assessed
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 15
Table of Contents Cityscape
IntroductionO.Reg
588/17
Current State
of
Infrastructure
Current
Condition
Levels
of
Service
Lifecycle
Management
Strategy
Infrastructure
Gap
Financing
Strategies
Recommendations
& Conclusions
ASSET LIFECYCLE MANAGEMENT STRATEGY
The asset lifecycle management strategy is the set of planned actions (i.e. operate, maintain, rehabilitate or
replace) that will enable the assets to provide the desired levels of service in a sustainable way, while
managing risk, at the lowest lifecycle cost. Each section of the AMP:
1. Describes the asset lifecycle activities applied to the asset category;
2. Establishes the condition profile expected from the current budget and the expected impact on LOS
metrics; and
3. Establishes the optimal budget to achieve the ideal condition profile to maintain the current LOS.
Examples of these condition profiles are provided below:
ASSET LIFECYCLE ACTIVITIES
The asset lifecycle management activities are the range of actions funded through
the operating or capital budget that are practiced on the asset category. Asset
lifecycle activities are generally grouped into the categories as shown in Table 1.4.
Each service area section also documents the risks associated with each lifecycle
activity.
Very Good
Good
Fair
Poor
Very Poor
1
2
3
4
5
Figure 1.4 Example Projected 20-year Current Budget Condition Profile
Figure 1.5 Example Projected 20-year Projected Budget Optimum Condition Profile
Lifecycle
ActivityDescription Examples
Non-
Infrastructure
Actions or policies that can lower
costs or extend asset life
Better integrated
infrastructure planning
and land use planning,
demand management,
process optimization,
managed failures
Maintenance
Regularly scheduled inspection and
maintenance, or more significant
repair and activities associated with
unexpected events
Sewer spot repairs, fixing
potholes
RehabilitationSignificant treatments designed to
extend the life of the asset.
Structural lining of
sewers, road resurfacing
Replacement
Activities that are expected to occur
once an asset has reached the end
of its useful life and renewal/
rehabilitation is no longer an option
Vehicles replacement,
road reconstruction
Disposal
Activities associated with disposing
of an asset once it has reached the
end of its useful life, or is otherwise
no longer needed by the
municipality
Salvage of equipment
Growth/Service
Improvement
Planned activities required to extend
services to previously unserviced
areas - or expand services to meet
growth demands
New recreation centre to
service new subdivision
Table 1.4 Typical Asset Lifecycle Activities
1.5 ASSET LIFECYCLE MANAGEMENT STRATEGY
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 16
Table of Contents Cityscape
IntroductionO.Reg
588/17
Current State
of
Infrastructure
Current
Condition
Levels
of
Service
Lifecycle
Management
Strategy
Infrastructure
Gap
Financing
Strategies
Recommendations
& Conclusions
The City of London currently invests in the renewal of its infrastructure through capital budget projects. This report measures the difference between what we plan to invest through the 2018 annual Budget
update and what we need to invest in order to sustain the services delivered using infrastructure to the defined LOS. The applicable Capital Asset Renewal & Replacement Reserve Funds are analyzed to
determine what reserve funds may have availability to reduce the infrastructure gap.
Figures 1.6 and 1.7 show the optimal expenditures compared to expected budget and additional reserve fund availability, and the resulting infrastructure gap. It is split between Property Tax-based Assets
and Water and Wastewater assets. The gap breakdown is then represented by Program Area. Figure 1.8 illustrates the difference between current spending plans and investments required in our
infrastructure. It also forecasts the infrastructure gap over the 10 years of analysis should the City maintain its current spending plans.
*Amounts subject to rounding.
Figure 1.7 Infrastructure Gap Visual (Water and Wastewater based Assets)
Optimal Expenditure
(10 Year Budget)
$694.4 M
5.8% Infrastructure
Gap
Current Funding
(10 Year Budget)
$595.3 M
Optimal Expenditure
(10 Year Budget)
$1,298.2 M
40.7% Infrastructure
Gap
Current Funding
(10 Year Budget)
$714.6 M
8.5%
Additional
Reserve
Fund
Availability
Figure 1.6 Infrastructure Gap Visual (Property Tax-based Assets)
4.2%
Additional
Reserve
Fund
Availability
$528.8 M
Environmental Services
(8.8%)
Transportation
Services (42.3%)
Corporate, Operational & Council Services(9.7%)
ProtectiveServices (6.6%)
Parks, Recreation & Neighbourhood
Services (30.4%)
Social and HealthServices (2.2%)
Stormwater(9.4%)
Sanitary(90.6%)
$40.0 M
1.6 INFRASTRUCTURE GAP
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 17
Table of Contents Cityscape
IntroductionO.Reg
588/17
Current State
of
Infrastructure
Current
Condition
Levels
of
Service
Lifecycle
Management
Strategy
Infrastructure
Gap
Financing
Strategies
Recommendations
& Conclusions
The current infrastructure gap is projected to significantly increase over the next 10 years; indicating
that planned investment in asset life cycle initiatives does not address the needs of London’s
infrastructure. In this environment asset failures can be expected to increase along with a
corresponding drop in the levels of satisfaction with services.
This plan is intended to suggest actions are in place to manage the infrastructure to provide
acceptable levels of service. This is a complex activity without any single solution. However,
collectively the actions of the City are expected to address the growing gap. The following highlights
the major contributors to the gap
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Infr
as
tru
ctu
re G
ap
Mill
ions
Re
qu
ire
d In
ve
stm
en
t a
nd
Pla
nn
ed
Bu
dg
et
Mill
ions
Total Required Investment Total Planned Budget Additional Reserve Fund Availability Cumulative Infrastructure Gap
Figure 1.8 Cumulative 10 year Infrastructure Gap (All Assets in Scope of the AMP)
Section 1: Executive Summary
City of London 2019 Corporate Asset Management Plan 18