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HomeMy WebLinkAboutFIN-2021-12 - 2020 State of the Infrastructure Update REPORT TO: Finance and Corporate Services DATE OF MEETING: April 19, 2021 SUBMITTED BY: Jason Winter, Director Asset Management & Business Solutions PREPARED BY: Jason Winter, Director Asset Management & Business Solutions WARD(S) INVOLVED: All Wards DATE OF REPORT: March 30, 2021 REPORT NO.: FIN-2021-12 SUBJECT: 2020 State of the Infrastructure Report RECOMMENDATION: For Information REPORT HIGHLIGHTS: The overall Grade B. As compared to other municipalities, the City remains in the middle in the pack in terms of overall condition of our core assets. Asset valuations have changed due to improved asset data made available. those assets. Long term investments in funding strategies for infrastructure replacement programs like the Water Infrastructure Program (WIP) are crucial to keep up with the pace of our aging infrastructure. The ability to effectively maintain infrastructure based on growth and intensification is putting strain on operational capacity. BACKGROUND: The City is legislated by the Province of 2015 and Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure to create and maintain thorough asset management plans (AMPs) for all core asset categories within our municipality. The most consistent and cost-effective asset management strategies include a data-driven, risk-based approach that combines long- range financial planning and effective maintenance activities. The goal is to sustain an organized approach that optimi and in the most cost-effective way. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. REPORT: The 2020 update for the State of the Infrastructure report provides detail as to both the overall condition of all 13 asset categories as well as the financial 10-year gap across the board. Although there are several assumptions that are required to illustrate the current state of our infrastructure, over time and with the introduction of additional data-driven asset management plans, comprehensive assessments will be more readily be possible. Some changes from the first report from 2019 include: The valuation has increased from $7.5B to $9.2B based on additional inventory information as well as updated valuations of much more of our core infrastructure. Facility valuation increased by $314M (28.3%) based on work underway on the Building Condition Assessment (BCA) program Stormwater asset valuations increased by $479M (66.6%) based on current inventory and updated asset management plans. Roads & sidewalks valuation increased by $800M (88.6%) due to including sidewalk and multi-use pathways inventories and valuation. Based on the 2020 capital budget update, the gap has changed from $341.7M to $442M The overall grade of asset categories remains relatively the same at a Grade B. While some attention is needed for some asset categories, the City is more advanced in other categories thus making us on average, the same as most other similar municipalities. For several\\asset categories, a calculation of useful life was used to identify those assets that are near or at the end of their lifecycle. A replacement value is used to calculate the required investment for each of those assets. This required investment is then compared to a current rolling 10-yr capital budget for that category. The only variation from this approach was for categories for which a formal replacement strategy is in place. An example of this is the Water Infrastructure Program, where in addition to useful life, factors such as condition and risk are also included to determine the replacement need (and costs) over the useful life of those assets. Continued adoption of the asset management framework supports the ability to minimize categories. The collaborative approach between operational teams and the Asset Management Division will increase resiliency against changes in our environment. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: There is no direct cost impact, however asset management plans influence long-term financial forecasting for assets under City management. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: FCS-19-078 - 2019 State of the Infrastructure Report INS-18-017 Corporate Asset Management Policy Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure APPROVED BY: Jonathan Lautenbach, CFO & General Manager Financial Services ATTACHMENTS: Attachment A 2020 State of the Infrastructure Report CITY OF KITCHENER 2020 STATE OF THE INFRASTRUCTURE REPORT 30 March 2021 This page left intentionally blank CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | ii Table of Contents Introduction .......................................................................................................................................... 1 ............................................................................................. 4 Asset Components .............................................................................................................................. 5 ........................................................................................................ 6 Summary of Key Findings .................................................................................................................... 8 Asset Category Report Cards ............................................................................................................ 9 Water Utility ..................................................................................................................................... 10 Sanitary Utility .................................................................................................................................. 11 Stormwater Utility ............................................................................................................................ 12 Gas Utility ......................................................................................................................................... 13 Roads & Bridges ............................................................................................................................. 14 Facilities ........................................................................................................................................... 15 Other Asset Categories ................................................................................................................. 16 Future Outlook ........................................................................................ 17 Appendix A Explaining the Scorecard ......................................................................................... 19 CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | iii Introduction It is undeniable that the City of Kitchener (similar to all other municipalities) experienced an unprecedented year in 2020. Along with the changes the world felt as an impact of the COVID-19 pandemic, the Calso was affected in ways not forecasted in previous models. Whether it was less traffic on city streets, or increased use of the active seen an overall impact affecting its condition and lifecycle. Use of the Iron Horse Trail saw on average 126% more traffic compared to last 3 years. On-going, long-term investments in infrastructure is essential to maintain the growing expectations of our community and to ensure we sustain the expected levels of services provided by As well, the City is developing at a significant rate resulting in an overall increase in asset inventories needing to be maintained. In addition to safeguarding continuing to influence necessary investments to maintain our infrastructure. The widespread scale and complexity of climate change poses considerable environmental, economic, and social risks to the City. The effects of climate change are creating more CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 1 extreme variations in local weather patterns and longer-term changes to local climatic conditions. As seen in the graph below from the National Oceanic and Atmospheric 1 Administration (NOAA), the temperature in February 2020 was the warmest month on record since tracking began. Infrastructure fails to perform as it should under these conditions in the following ways: increased pressure on the energy grid, facility heating and cooling systems which in turn create higher costs and potential outages; road and walkway damage along with liability from increased freeze/thaw cycles; invasive species migrate to new habitat and decimate local urban forests (e.g. Emerald Ash Borer); frequent heat waves putting vulnerable populations at risk; etc. Climate change is expected to affect a broad range of municipal assets and government services. Specifically for Waterloo Region, local impacts include more intense rainfall events resulting in negatively affecting the ability to control and treat stormwater with our existing infrastructure. Preparing for climate change is a matter of risk management, good governance, and development of effective asset management practices. The implementation of the Corporate Climate Action Plan (CORCAP) is a vital step in having an integrated approach to achieve climate related targets and minimize risk to our infrastructure investments. This too can significantly improve community resilience and 2 reduce the severity of these effects over time. The need for continued focus on detailed asset management planning is now more important than ever given the ; the age and changing 1 NOAA National Centers for Environmental information, Climate at a Glance: Global Time Series, published February 2021, retrieved on February 16, 2021 from https://www.ncdc.noaa.gov/cag/ 2 INS-18-017 Corporate Asset Management Policy CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 2 condition of our assets; and the impacts of factors such as climate change in the coming years. Further effort is needed to analyze the growing amount of data related to our asset categories so as to understand the cause and effect of the variables related to maximizing the lifecycle of our most important infrastructure. The robustness of our detailed asset management plans become so vitally important for the successful management of these new (and existing) assets. The 2020 State of the Infrastructure Report provides an updated infrastructure groups and highlights key aspects of each category. For each core asset 3 category, is given to illustrate the current state of that category. This grade is an overall assessment of the asset category and is based on a number of factors. These factors include: A thorough financial strategy to maintain the expected levels of service throughout the lifecycle of the asset. Condition information that leads to understanding the health of the asset throughout its useful life. The existence of preventative maintenance and/or rehabilitation programs to ensure the assets meet their expected lifecycle. The availability of complete and reliable data for which to create and sustain asset management plans focusing on optimizing the management of the assets. As mentioned above, an evaluation of data reliability is provided to illustrate the quality of information available to inform a detailed lifecycle management plan. Little or no reliable Reliable data, but Quality data, but High quality and information available historical information gaps in detail and/or lacking some detail reliable detailed found currency data When assessing the overall condition of an asset category, data reliability is only one factor in a number of components. Although there might be gaps in detail and/or currency of information, evaluating work activities, maintenance programs, achieving service levels and other capital projects, the overall condition is formulated. 3 A further explanation of grading is outlined in Appendix A Explaining the Scorecard CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 3 4 ASSET VALUATION Facilities 15% Roads & Bridges Total Replacement 21% Value - $9.2 Billion Other 4% Stormwater Utility 13% Sanitary Utility 11% Water Utility Gas Utility 19% 17% Please note that changes from previous totals are due to newly available and updated data leading to revised valuations across asset categories. 1,600 (lane-km) | Paved Local Streets 1,095 km | Gas mains 14 | Community centres 1,180 km| Sidewalks 75,246| Gas meters 7 | Fire Stations 95 | Roadway Bridges 823 | Horticulture beds 8 | Community pools 900 km | Water mains 220| Playgrounds 9 | Splash pads 4,566 | Hydrants 257 km | Trails 2 | Golf Courses 5 838 km | Sanitary sewer mains 126 | Sports fields 7 | Arenas 23 | Pumping Stations 69,619 | Trees 24 | Parking structures & paid lots 643 km | Stormwater mains 28,766 | Traffic Signs 67 | Community parking lots 152 | Stormwater facilities 19,443 | Street Lights 6 | Cemeteries 4 Golf, Transportation Services and Fleet. 5 Budd Park Indoor facility is in addition to the 7 arenas identified. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 4 Asset Components Within each asset category, there are a number of major components that make up the total valuation and lifecycle management strategy. The table below outlines the major asset components within each asset category across the City. As asset management plans are developed and updated, additional asset components may be added in order to Water Utility Sanitary Utility Stormwater Utility water main pipes sanitary main pipes stormwater pipes water service pipes stormwater manholes forcemains valves catchbasins sanitary service pipes hydrants stormwater management ponds sanitary manholes water meters oil & grit separators pumping stations stream reaches & creeks stormwater facilities Gas Utility Roads & Bridges Facilities gas mains road pavement critical facilities & structures gas service pipes curbs community facilities & structures gas valves sidewalks other facilities & structures gas meters multi-use pathways gas regulator pits & stations bridges (greater than 3m span) rental water heaters culverts Parks & Open Spaces Forestry Parking sports fields street trees revenue generating surface lots hard surface sports facilities wood lots community surface lots parks & turf parks & open spaces trees underground parking structures playgrounds parking garages trails on-street parking pedestrian bridges & boardwalks parking equipment horticulture parking sundry/misc. items Cemeteries Golf Transportation Services cemetery infrastructure (roads, course features bike racks & bollards horticulture, water services, etc.) buildings pedestrian railings and guiderails cemetery buildings (including course infrastructure streetlights & poles mausoleum, crematorium, utilities road & pedestrian islands storage structures, etc.) golf course vehicles & equipment traffic calming features traffic signs & poles Fleet arena equipment dump/fire trucks fire equipment lawn/turf equipment licensed equipment miscellaneous small equipment off road equipment two-way radios CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 5 Asset Management is an integrated and data-driven approach to effectively manage existing and new assets. The intent is to maximize benefits, reduce risk and provide expected levels of service to the community in a sustainable manner. Effective asset management practices are fundamental to achieving a sustainable and resilient community. The City is legislated by the Infrastructure for Jobs and Prosperity Act, 2015 and Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure to create and maintain thorough asset management plans (AMPs) for all asset categories. The most consistent and cost-effective asset management strategies include a data-driven, risk-based approach that combines long-range financial planning and effective maintenance activities. These activities outlined in the AMP would limit reactive maintenance by emphasizing a move toward planned/routine/proactive maintenance ensuring the lifecycle of assets and their ability to deliver services can be achieved. The with minimal risk and in the most cost-effective way. Asset management planning is cyclical to ensure that growth, new technologies and the introduction of new services are added to the framework. This process ultimately ensures that sustainable and resilient infrastructure is provided for through a process of continuous improvement. Through this lens, the goals would include efficiency gains which by improving proactive/scheduled maintenance will potentially reduce the number of reactive maintenance activities that are performed annually. When the Corporate Asset Management Program Policy and Framework (INS-11-082) was adopted in January 2012, it defined specific asset groups that shape the physical assets which make up the large and complex estimation of value. Since that time, the number of groups have expanded to 13 categories to best reflect the distinct types of assets across the city. The value of these assets are either derived through an Enterprise or Tax base (Figure 2). VALUATION SOURCE Tax 38% Enterprise 62% Figure 2 - Valuation Source CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 6 As asset management plans are developed for the 13 asset categories, collaborative support from cross functional teams and dedicated asset management leads provides new insights into the balance between optimizing the health of the asset while meeting expected level of service for which the asset supports. Through the development of asset management related replacement and rehabilitation e.g., Water Infrastructure Program (WIP), Facility Infrastructure Program (FIP), etc.), long term funding strategies continue to be proposed and adopted year after year. The 2020 capital budget included approximately $98M for asset rehabilitation and replacement and $978.8M over a ten-year timeframe. Although additional focus has been put towards increased spending for our infrastructure, the City still has a significant overall gap between investment and need. This need will be further underscored nership through increased development over the past several years. The infrastructure gap analysis (Figure 3) provides a point-in-time assessment of the current need across categories for those assets that are at the end or nearing the end of their useful lifespan. This financial requirement is compared to the available capital budget over a 10- year period. As asset management plans are completed, this gap analysis will be combined with level of service and condition data to round out a current state of the asset category. Overall Gap 10-Year Infrastructure Gap $442M $0 ($20,000,000) ($40,000,000) ($60,000,000) ($80,000,000) ($100,000,000) ($120,000,000) ($140,000,000) ($160,000,000) ($180,000,000) ($200,000,000) FacilitiesOtherRoads &StormwaterGas UtilitySanitaryWater Utility BridgesUtilityUtility Gap ($186,841,915($90,696,820)($59,189,734)($44,554,000)($42,501,800)($11,055,641)($7,565,241) Figure 3 - Infrastructure Gap (*) Please note: 1. The Stormwater Utility gap is reflective of the recent Disaster Mitigation & Adaptation Fund announcement for the City in 2019. 2. The Water and Sanitary gap are reflective of the financial model used for the Water Infrastructure program over the next 10 years. 3. Additional external funding sources such as the Federal Gas Tax has assisted somewhat in reducing the overall gap. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 7 Summary of Key Findings The gap analysis and associated forecasts are for a rolling 10-year period. This is a relatively short timeline for assets that have a typical lifespan of more than 80 years. Each year, the financial information will continue to improve and be updated accordingly. The overall total of the infrastructure gap for 2020 is $442M. For most asset categories, a calculation of useful life was used to identify those assets that are near or at the end of their lifecycle. A replacement value is used to calculate the required investment for each of those assets. This required investment is then compared to a current rolling 10-yr capital budget for that category. The only variation from this approach was for categories for which a formal replacement strategy is in place. An example of this is the Water Infrastructure Program, where in addition to useful life, factors such as condition and risk are also included to determine the replacement need (and costs) over the useful life of those assets. A comprehensive model has been developed as part of the Water Infrastructure Program (WIP) which combines multiple factors as mentioned above to assess the overall need for water, sanitary and stormwater infrastructure replacement. Overall, WIP is forecasting to close the gap of needed infrastructure replacement funding by 2044 as outlined in the report to Council (INS-17-070). On-going commitment post 2044 will be required as a significant number of assets will be reaching the end of the lifecycle based on significant growth in the 1960 In addition, considerations around the ability to support best practices for maintenance activities have not adequately been undertaken and needs to be an area of attention. This focus will need to continue to be examined as part of the WIP program to both close the existing infrastructure gap, and also to ensure that the gap doesn't widen as new infrastructure comes online and resources need to cover a larger number of assets. As mentioned under Figure 3, the gap information for the Stormwater Utility category now reflects the recent funding received through the Disaster Mitigation and Adaptation Fund in 2019. Additional funding through other sources such as the Federal Gas Tax also supports the ability to close the gap on an annual basis. With the development of asset management plans for the 13 categories, emphasis will continue to be placed on developing inspection programs that introduce condition information. This is a vital component to an overall comprehensive assessment of those assets. A recent example of this kind of program is the development of a comprehensive Building Condition Assessment (BCA) program for CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 8 Asset Category Report Cards Overall, in 2020 B, a slight increase from the previous report card. This grade is an overall average of the individual category evaluations and as such will continue to be re-evaluated as new information becomes available. Changes year-by- year can be attributed to adding or updating detailed asset management plans along with increasing the reliability of information used to analyze the overall condition of the asset category. In the following pages, a summarized component will summarize the relevant information leading up to the 2020 State of The Infrastructure. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 9 Data Reliability Water Utility The role of the water utility is to deliver water safely and efficiently to Kitchener residents. As part of that, the utility is responsible to maintain the infrastructure of pipes and valves that ucture Program (WIP), an approved rate model was established to address the overall gap related to its underground infrastructure by 2044. Overall, the water utility assets category is graded at an B. This past year in 2020, saw fewer watermain breaks than the previous 5-year average. Implementation of a mobile valve inspection program allowed for more efficient real-time follow-up work to be scheduled. Focus on the Water Infrastructure Program and associated funding continues to be a crucial component to improve the grade of this asset category and close the gap of infrastructure replacement by 2044. CAST IRON Total Length (Kms) by Material Average Expected Life 50YRS Average Average 68 0 ST - STEEL 0.2 Age Remaining Life YRS YRS DUCTILE IRON PVC - POLYVINYL CHLORIDE 335.7 Average Expected Life Average 80 YRS Age DI - DUCTILE IRON 327.4 Average 41 39 Remaining Life YRS YRS CPP - CONCRETE PRESSURE PIPE 42.7 PVC Average Expected Life Average COP - COPPER 0.6 100 YRS Age Average 14 86 CI - CAST IRON 183.0 Remaining Life YRS YRS OTHER AC - ASBESTOS CEMENT 7.7 Average Expected Life Average 80 YRS Age - 50 100 150 200 250 300 350 Average 47 33 Remaining Life YRS YRS % Asset Consumed 140% (4) 120% 10-Year Forecast 100% Required Current Gap 80% Investment Investment 60% υЊЎЋͲВЌЋͲЋЍЊ υЊЍЎͲЌЏАͲЉЉЉ ΛυАͲЎЏЎͲЋЍЊΜ 40% 20% (4) Current and Required investment based on WIP 0% AC -CI - CASTCOP -CPP -DI - DUCTILEPVC -ST - STEEL projections to 2029 ASBESTOSIRONCOPPERCONCRETEIRONPOLYVINYL CEMENTPRESSURECHLORIDE PIPE % Consumed 63%135%68%44%51%14%61% CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 10 Data Reliability SanitaryUtility The Sanitary Utility is responsible for the installation and disposal of the variety of sanitary network assets, which include the likes of wastewater pipes, manholes, syphons, forcemains, and pumping stations. Similar to the Water Utility, through the Water Infrastructure Program (WIP), an approved rate model was established to address the overall gap related to its underground infrastructure by 2044. Overall, the sanitary utility assets category is graded at a B. While the Sanitary Utility has a relatively good grade, the overall category can be improved with greater emphasis on preventative maintenance measures, which are currently limited in the Utility. As well, effort is underway to complete a detailed capital evaluation for pumping stations for which data is currently needing to be updated. Sanitary Main Material Type -Average Age OtherAsbestos 14%Cement 19% Plastic Ductile Iron 8% 17% Cement 16% Vitrified Clay 26% (5) 10-Year Forecast % Consumed Compared to Expected Life Required Current Gap 97.7%2.3% Investment Investment 18.5% υЋЋЋͲЉЊВͲЏЍЊ υЋЊЉͲВЏЍͲЉЉЉ ΛυЊЊͲЉЎЎͲЏЍЊΜ 160 140 14.7% 14.5% (5) Current and Required investment based on WIP 14.0% ) m12.6% 120 k projections to 2029. Required investments for 11.6% ( s 10.2% 100 n i pumping stations currently under review. a 80 M y r 60 a t PLEASE NOTE i n 40 a S 1.7% 1.3% 0.8% More than 25% of sanitary infrastructure is more than 20 0.2% 50 years old. 40% of is beyond half the average life - expectancy. This speaks to the need for a strong routine/preventative maintenance program to Age ensure no additional premature aging. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 11 Data Reliability Stormwater Utility -of-the- across the city. The Stormwater Utility provides critical infrastructure to prevent flooding and protect the natural environment by removing pollutants from runoff. Stormwater management infrastructure and approaches are rapidly evolving, and the City is incorporating green infrastructure and low impact development stormwater design to minimize the impact of urban land use to the natural environment. With the recent Federal funding (DMAF), the Utility has had the opportunity to advance several key aspects of its master plan. Overall, the stormwater utility asset category is graded at a B. The ability to further improve the grade level for this asset category might be a function of applying more preventative maintenance programs, which are currently limited. Installations of Storm Ponds STEEL Average Expected Life 30 80YRS Average Average 44 36 Remaining Life Age 25 YRS YRS CONCRETE Average Expected Life 20 80 YRS Average 38 42 15 Remaining Life Average YRS YRS Age PVC Average Expected Life 10 100 YRS Average Average 13 87 5 Remaining Life Age YRS YRS 0 Era STREAM REACHES IN KMS REHABILITATED CHANNELIZED 6.74 10.65 CONCRETE 10-Year Forecast 4.44 Required Current Gap Investment Investment υЋАЋͲБЍЊͲЉЉЉ υЋЋБͲЋБАͲЉЉЉ ΛυЍЍͲЎЎЍͲЉЉЉΜ NATURAL/MIXED 44.67 CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 12 Data Reliability Gas Utility Kitchener Utilities provides a safe natural gas delivery service for over 74,000 customers across Kitchener. Through a heavily regulated set of processes, Kitchener Utilities provides a heat source to homes and businesses through the installation and maintenance of key infrastructure such as gas mains, valves, meter sets, regulator stations, water heaters, etc. Overall, the gas utility category is graded at an B. With the completion of a detailed asset management plan, the condition of the asset category is based on the assets age compared to expected useful life. Approximately 60% of gas utility assets are currently in very good or good condition. The current annual spend is approximately $10M for gas pipeline & capacity projects however, spending will need to increase to reduce the future infrastructure gap. DISTRIBUTION OF PIPE BY MATERIAL PLASTIC Average Expected Life (KMs) 60YRS Average 19 Average 41 Remaining Life Age YRS YRS 39% STEEL Average Expected Life 60 YRS 61% Average 46 Average 14 Remaining Life Age YRS YRS PLASTICSTEEL GAS METERS BY INSTALL YEAR (6) 10-Year Forecast 34,735 Required Current Gap 35,000 Investment Investment υЊЏЊͲВЊЊͲБЉЉ υЊЊВͲЍЊЉͲЉЉЉ ΛυЍЋͲЎЉЊͲБЉЉΜ 30,000 (6) Note: The required investment is only for asset 25,000 replacement at the end of useful life. This constitutes 20,000 only 11% of the overall requirement as outlined in the key findings. 15,000 9,223 8,587 10,000 PLEASE NOTE 5,428 4,969 4,259 4,210 2,749 5,000 Gas meters on average have an expected useful life - of between 10-15 years. A significant number of 20132014201520162017201820192020 meters will need to be replaced over the next several years due to the high number installed in 2013 and earlier. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 13 Data Reliability Data Reliability (pavement) (bridge/culvert) Roads & Bridges Roads and bridges are among the most valuable infrastructure assets and need frequent maintenance and rehabilitation. Roads and bridges are widely used and highly visible to residents therefore the planning and execution of rehabilitation and reconstruction projects need a data-driven approach to ensure the expected level of support at a reasonable cost. Specific to pavement, City Council set a level of service Pavement Quality Index (PQI) of 70 (based on a scale of 0-100). Through heavily regulated legislation, city-owned bridges are defined to be more than 3.0m in span and are inspected on a 2-year cycle. Pavement assets portion of this category is graded as an A. Bridge assets are graded as a B. PAVEMENT QUALITY -2020 Unknown Poor BRIDGE/CULVERT CONDITION 1% 2% 25 20 s t Excellent e 15 s 39% s A f 10 o # 5 Good 0 49% Very GoodGoodFairPoorVery Poor Vehicle BridgesConcrete CulvertsCorrugated Stee Pipes Pedestrian BridgesRailway Bridges Fair 9% 10-Year Forecast Pavement/Sidewalks PAVEMENT QUALITY DISTRUBTION Required Current Gap (By # of Segments) Investment Investment υЊЉЌͲЌЏЋͲАЌЍ υЎЉͲЉЉВͲЉЉЉ ΛυЎЌͲЌЎЌͲАЌЍΜ 1600 PQI 1400 Note: the required investment for sidewalk replacement s t Tartget n 1200 included in the financial analysis has resulted in larger -70 e 1000 m gap in 2020 g 800 e S 600 f o 400 10-Year Forecast Bridges & Culverts # 200 Required Current Gap 0 Investment Investment υЊЊͲЉЉЉͲЉЉЉ υЎͲЊЏЍͲЉЉЉ ΛυЎͲБЌЏͲЉЉЉΜ Pavement Quality Index CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 14 Data Reliability Facilities The City of Kitchener owns and maintains 255 active facilities varying in function and age. Facilities and structures are categorized as Critical (39 facilities/structures); Community (160 facilities/structures); and Other (56 facilities/structures). A year since the Strategic Council Session on the Long-Term Financial Plan, additional funding has been allocated to address the on-going gap, now at $186M over 10 years. A thorough building condition assessment program has been started to effectively evaluate the overall condition of the facility as well as associated for those investments within the 10-year capital budget process. Overall, the facility asset category is graded at a C. FACILITY AGE BY CATEGORY FACILITY CATEGORY Critical 70 Other Facilities Facilities 15% 25% 60 50 40 30 20 10 0 Greater than 5030-50 years10-30 yearsLess than 10 Yearsyears Community Facilities 60% CriticalCommunityOther LIFECYCLE COSTS Upfront Design & Construction Major Repairs & Costs Maintenance 20% 30% 10-Year Forecast Facilities Required Current Gap Investment Investment υЋВЋͲЊЊЌͲВЊЎ υЊЉЎͲЋАЋͲЉЉЉ ΛυЊБЏͲБЍЊͲВЊЎΜ Operational Costs 50% CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 15 Other Asset Categories Transportation Services and Fleet. Due to limited condition information or detailed lifecycle management plans, these asset categories are currently in the process of developing asset management plans (AMPs) which include a data-driven approach to assessing the health of the asset and measuring the expected levels of service. As we move ahead on developing AMPs, the remaining asset categories will have full plans that monitor the current condition of their assets, as well as determine a long-term estimate and lifecycle management plan. This information will rank resources across the groups and 6 identify how to develop proactive maintenance actions. PARKS & OPEN SPACESFORESTRY 5ğƷğ wĻƌźğĬźƌźƷǤ5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏ—ĻğƩ CƚƩĻĭğƭƷЊЉΏ—ĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦDğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υЍЉͲББЌͲЊБАυЊЊͲЉББͲЉЉЉΛυЋВͲАВЎͲЊБАΜυЊЊͲЉБЊͲЊЉЎυЎͲЉЍВͲЉЉЉΛυЏͲЉЌЋͲЊЉЎΜ PARKING ENTERPRISECEMETERIES 5ğƷğ wĻƌźğĬźƌźƷǤ5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏ—ĻğƩ CƚƩĻĭğƭƷЊЉΏ—ĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦDğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υЊЋͲЊЌЍͲЍЏЉυЊЋͲЌЎАͲЉЉЉυЋЋЋͲЎЍЉυЊЏͲЉЊЉͲЋЋЉυЌͲЋЋВͲЉЉЉΛυЊЋͲАБЊͲЋЋЉΜ GOLFTRANSPORTATION SERVICES 5ğƷğ wĻƌźğĬźƌźƷǤ5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏ—ĻğƩ CƚƩĻĭğƭƷЊЉΏ—ĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦDğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υЊЊͲАЋЎͲЋВЏυЊͲЉАЌͲЉЉЉΛυЊЉͲЏЎЋͲЋВЏΜυЋͲВВЍͲЏЊЌυАͲЋЎЊͲЉЉЉυЍͲЋЎЏͲЌБА FLEET 5ğƷğ wĻƌźğĬźƌźƷǤ ЊЉΏ—ĻğƩ CƚƩĻĭğƭƷ wĻƨǒźƩĻķ /ǒƩƩĻƓƷ DğƦ LƓǝĻƭƷƒĻƓƷLƓǝĻƭƷƒĻƓƷ υВЎͲЉВАͲАЏЎυЏЋͲЌЌЌͲЉЉЉΛυЌЋͲАЏЍͲАЏЎΜ CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 16 Future Outlook Improving the Grade This State of the Infrastructure - On an annual basis, an analysis of new and/or changed information will be completed to update each . This analysis will better determine the overall health of the asset category while balancing the need to maintain an expected level of service. Specific examples of activities and programs that influence the annual grade of an asset category include: A continued commitment towards formalized replacement & rehabilitation programs such as the Water Infrastructure Program or Facility Infrastructure Program will ensure appropriate funding to address the aging infrastructure in such a way to meet the expectations of stakeholders. Continued support of the Building Condition Assessment & State of Good Repair programs across City facilities. Continue to implement low impact development (LID) options to further enhance the stormwater mitigation strategies across Kitchener. Continue to enhance inspection programs across asset categories not currently part of formalized programs to better assess the on-going condition of those assets. Although these are but a few specific improvement opportunities, there are some common elements that can be applied across all asset categories: Detailed asset management plans (AMPs) provide long term strategies to ensure we optimize the management of our infrastructure. Creating, updating, and integrating these AMPs into annual workplans will ensure that long term financial and lifecycle management strategies are maintained. Several asset categories have yet to complete asset management plans, while other categories require updating based on new information or changes in service levels. Understanding the health of an asset is a crucial component in assessing the overall condition and useful life of that asset. This information influences preventative maintenance and rehabilitation programs which identify those priority assets requiring the most care and maintenance. Several asset categories have yet to develop inspection programs which if implemented could improve that category. In other cases, the creation of inspection programs are in the initial stages which require critical analysis and follow up from the results to determine effective maintenance levels, prioritization, and actions. This is the only way to start to develop an appropriate preventative maintenance and rehabilitation plan. Quality data is the cornerstone of understanding and influencing decisions surrounding the lifecycle of all assets. A data-driven approach allows decision makers to understand the cause and effect of maintenance activities to the overall CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 17 health of the asset as well as needed in designing/implementing an effective maintenance program. The total cost of ownership helps to inform strategies that s assets while minimizing the risk of failure or degraded services. Continued adoption of the asset management framework supports the ability to minimize collaborative approach between operational teams and the Asset Management Division and increase resiliency against changes in our environment. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 18 Appendix A Explaining the Scorecard In order to consis used in the four factors outlined below (also included the Introduction section on Page 2 of this report). A thorough financial strategy to maintain the expected levels of service throughout the lifecycle of the asset. Condition information that leads to understanding the health of the asset throughout its useful life. The existence of preventative maintenance and/or rehabilitation programs to ensure the assets meet their expected lifecycle. The availability of complete and reliable data for which to create and sustain asset management plans focusing on optimizing the management of the assets. In essence, if a category had met all four factors, they would be assigned a total of 4 points. If they had three factors, 3 points would be assigned, etc. Those points, then would be associated to a grade, as shown below. Grade Factor Points A 4 B 3 C 2 D 1 The overall grade for the city is an overall average of each category combined. As we continue to evolve our asset management program and include more condition related data, a further quantitative evaluation will be included. CITY OF KITCHENER | STATE OF INFRASTRUCTURE REPORT PAGE | 19