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HomeMy WebLinkAboutINS-15-075 - State of Infrastructure Update REPORT TO: Mayor and Members of Council DATE OF MEETING: August 24, 2015 SUBMITTED BY: Dev Tyagi, Deputy CAO – Infrastructure Services PREPARED BY: Jason Winter, Manager Support Services & Business Sys. WARD(S) INVOLVED: All DATE OF REPORT: August 09, 2015 REPORT NO.: INS – 15-075 SUBJECT: INS – State of the Infrastructure Update RECOMMENDATION: For Information. BACKGROUND: The City of Kitchener has established a corporate asset management program to manage the City’s assets, incorporating all aspects of asset maintenance, replacement and service delivery. Asset management represents a core business function for the city given the considerable number and value of its assets – over $4.5 Billion in replacement value. The intention of the update is to provide an overview of the depth and complexities of the assets the City owns and manages. Challenges being faced are mainly as a result of chronic deficits in funding as well as increasing age and failure rates across a number of asset categories. (Please refer to the attached Kitchener Utilities Overview for the Water Utility for further context and insight) REPORT: Within the Water, Sanitary and Stormwater Utilities, data is showing that the City is exhibiting a higher than average deterioration and condition rate, resulting in higher failures and increased risk. More specifically, since 1997 over $25 Million has been spent on watermain breaks alone. In the past 12-months, there have been more water main failures during this period than any other single year in the past. Since November 2014 there have been 136 watermain breaks, averaging $15,000 per break. The Accelerated Infrastructure Replacement Program (AIRP) implemented in 2002 had developed a funding model based on historical trends and age criteria of infrastructure replacement. Since inception, the actual costs of replacement have skyrocketed, resulting in an increasing gap between the initial expectation of yearly replacements and the true realities of addressing these increased costs. Currently, new condition information has validated the need 1. - 1 for additional financial and human resources, not only to address the current replacement requirement, but as well the back-log created since the program began. In addition to asset replacement strategies, more attention is needed to properly resource maintenance and operational activities across these aging infrastructure categories. Without proper care of the various components, failure rates increase and the opportunity is lost to further extend the life of the asset. Based on the increased number of reactive activities resulting from premature failures, resources have been diverted away from preventative maintenance programs or activities that assist in the betterment of assets, all in support of protecting service level expectations. Sanitary and stormwater infrastructure are in a similar position as is the Water Utility. Specific to the recent introduction of the Stormwater Utility, a Stormwater Master Plan will be introduced to Council later in 2015. The intention is to provide a detailed overview of the current state and to clearly outline the priority areas needing to be addressed. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The Asset Management Program resides within the City’s Strategic Plan as part of Section 2 – Effective and Efficient Government Priorities, namely Priority E2. FINANCIAL IMPLICATIONS: None. CONCLUSION: A realistic and strategic approach to funding both capital replacement and preventative maintenance activities will ensure the reliability, safety and sustainability of existing and future assets for the City of Kitchener. To ensure a go-forward strategy to address the backlog and on-going replacement, substantial annual rate increases for both replacement and maintenance activities for an extended period of time will be required. ACKNOWLEDGED BY: Dev Tyagi, DCAO Infrastructure Services Department 1. - 2 Water Rates, Infrastructure Investment, and Risk Assessment Key Highlights In the media Aging infrastructure Declining water consumption, despite population growth Significant regional rate increases for water Strict legislative requirements Overview Public infrastructure is the backbone of our economy and quality January 2015 tial city services and highly valued community amenities, includ Substantial flooding from watermain break on Courtland Ave. Citizens rely on their governments to provide clean, safe, and r Kitchener Utilities is responsible for maintaining and deliverin Region of Waterloo stores and treats water and sewage. The City of Kitchener, like many other cities, is faced with the ground water and sewer infrastructure. In the next 20 years, 60 at the end of its lifecycle. Currently, the city is facing a bac structure. It is anticipated that $63 million is required to com Each year, the rate increases have been minimal in respect to th January 2015 Watermain break on King St. near Syd- ney St. twice the inflation rate over the past 5 years and accounts for Our commitment includes providing safe, clean, reliable water to munity. To continue to fulfill our commitment, a sustainable fun required to bridge the infrastructure deficit gap. The municipal ture and to continue to provide the qualify of life expectations set out by the MOECC, all replacement projects and preventative Municipal infrastructure and the overall condition impacts the c February 2014 House stuck in ice in Bridgeport/Lancaster cally encompasses public health and safety, social, and environm area after an 18-inch main broke address the urgency of this matter today to prevent the deficit catastrophic event. Watermain September 2013 Backlog of 10 foot sink hole from water main $63 million break at Mill & Heiman St. by 2023 needs to be addressed June 2013 Watermain break at Highland Rd. and 1. - 3 Heiman St. 1 Investing in Infrastructure What is the risk if relining and Key issues replacement is not done? Deficit of $63 million by 2023 as we are only replacing 4% of wh year. Current funding each year is $6.3 million for water. Regional cost increases represent more than half the total water twice the amount of inflation over the past 5 years. In turn, th necessary funds for replacement projects. Water consumption is declining, despite recent population growth Older infrastructure is more costly to maintain, more likely to residents due to service outages, low water pressure, and more b The cost of preventative maintenance is less than a reactive rep March 2015 Summerhill Cres. frozen water service The graph on the left illustrates in blue what we are replacing and red shows the backlog of replacement projects. The graph below provides a breakdown of water sales and March 2015 expenses. Fairway Rd. and Manitou Dr. April 2015 Mt. Hope sinkhole Rate Dollar Allocation and Consumption Patterns METERED WATER (M3) Regional Rate Increases versus Metered Water 2005=22,572,000 Inflation Metered Water 2014 = 19,774,000 1. - 4 2 Asset Management: planning for the future To put it into perspective... Quick Facts Since 2002, there has been an Accelerated Infrastructure Renewal funding model was developed based on historical trends and age o 893 km of watermain replacement costs have increased substantially and resulted in a $63 million backlog by 2023 ment projects and actual replacement projects. Estimated value $750 million Due to rising costs and complexity of projects, approximately ha (replacement costs watermain/ plished using the original budget allocations. hydrants/valves) Watermain ranges between 55 to 125 years old with a median age o Average watermain break is is allocated to water replacement projects annually. $15,000 to repair Relining is a technique used to extend the life of the watermain Average of over 100 main cated to relining annually. breaks per year Pipe that was expected to last 80 years is failing before its li In 2014, watermain breaks lasting, but is in need of replacement. Mains that are 25-49 yea totaled over $2 million in 3 Replacement projects are not based solely on age of pipes, but r months including: history of watermain breaks, age, and material. Cost to replace the main is $1,000 per metre Repair cost is 20-40% of re- placement cost 7,365 water valves Valves have a life of 40 years 30% of valves are older than 40 years 25-49 yr. old main or 40% of the system (354 km) is an issue with life expectancy 10% of watermains are in VERY POOR and 9% POOR condition In 2014, water loss was more than 10% (MOECC standard) The photo above shows old and new pipes. The The graph above shows the infrastructure that due to watermain breaks, frozen pipe on the left is 50 years old and has depos- was built from 1900-2010. The red block requires services, and by-pass its of calcium, iron, and magnesium on the immediate attention and is $19m of pipe that 63,104 water meters in service inside of the wall pipe. As preventative mainte- needs to be addresses. The yellow pipe is a con- nance, main flushing is done to prevent the cern and it totals $27m in infrastructure that will 4,210 water hydrants accumulation. not reach the end of its useful life. Snapshot of pipe materials and condition Blue Cast Iron (1900-1950) is in very poor to poor condition and results in 68% of watermain breaks by material. Red-Ductile Iron (1950-1990) is fair to good and 28% of watermain breaks are from this material. Green PVC (1990-now) is good to perfect and 3% of watermain breaks are from this material. Other Accounts for 1% of watermain breaks. 1. - 5 3 Maintenance Requirements Reactive Maintenance Preventative Maintenance Programs Water valve operating checks Responding/repairing watermain breaks Dead end main flushing Emergency valve repairs Hydrant checks, hydrant painting, hydrant flags Damaged hydrants Snow clearance Curb stop operatesrepair curb stops Leak survey Turn on/off operate-includes revenue Watermain bridge inspections Water service repairs Watermain cleaning/unidirectional flushing Frozen services Quality/water pressure investigations *More than half of maintenance hours (57% in 2013) are spent on reactive Pressure reducing valve maintenance maintenance Pump out chambers Water meter replacement Subdivision/reconstruction inspection Backflow prevention Locates Where do we go from here? Next Steps? Use Remote Field Technology (RFT) The Remote Field Technology (RFT) tool has been recently develop the water utility industry. The tool internally inspects the con watermain. The RFT tool uses condition- What options are under review? Implement new technology. Investigate using the Remote Field Technology (RFT) tool to inspect the watermain condition. and look at other watermains that are more problematic and will have the life expectancy. This will save money and defer replace Implement long-term rate strategy - In order to watermains that are in relatively good condition. manage the deficit, annual water rate increases are Using the Remote Field Technology (RFT) to assess the condition suggested consistently for the next ten years. watermains can be restored within a planned budget. Develop long-term planning strategy - Developing a Watermain breaks can typically be tied to corrosion and corrosio long-term planning strategy will mitigate risk and not be prevalent throughout the entire length of the watermain. reactive maintenance. It will allow for proactive and This RFT tool can be inserted into a water pipe at the fire hydr preventative maintenance rather than reactive other convenient points of access. The tool is pushed by water p maintenance and will use condition-based assess- or by pulling through a dry pipe. The tool can detect and measur ment to guide decision making on watermain re- sion areas and other defects. placement rather than relying on age of watermains Review the option to purchase or lease the RFT tool to prolong t as the criteria for replacement. the watermain or assess the watermains that are in need of repla 1. - 6 4