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HomeMy WebLinkAboutINS-2021-3 - Grant Application Municipal Asset Management Program REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: March 22, 2021 SUBMITTED BY: Qureshi, Asad, Director Facilities Management, 519-741-2600 ext. 4424 PREPARED BY: Stewart, Lynda, Manager Projects & Energy Management 519-741-2600 ext. 4215 Powell, Beatrice, Project Manager Facilities Asset Management 519-741-2600 ext. 4147 WARD(S) INVOLVED: All DATE OF REPORT: March 14, 2021 REPORT NO.: INS-2021-3 SUBJECT: Grant Application Municipal Asset Management Program RECOMMENDATION: That a project grant submission to the Municipal Asset Management Program to advance the Facilities Asset Management Plan be approved; and, That the City of Kitchener commits to the following activities in its proposed project: 1. Validate the facility asset data framework to support a state of facilities infrastructure report and the overall asset management plan requirements, and 2. Develop an asset management plan for facilities, including asset condition; levels of service; risk management; climate resilience; lifecycle & financial management strategy; creation of proactive maintenance plans; key performance indicators evaluating overall condition; and, That, if successful in the application, the City of Kitchener commits to fund $40,000 towards the costs of this project; and further, That the Chief Financial Officer and General Manager of Infrastructure Services be delegated authority to sign any relevant documentation and/or agreements pertaining to the project application to the Municipal Asset Management Program, subject to the satisfaction of the City Solicitor. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. REPORT HIGHLIGHTS: The purpose of this report is to outline the requirements of the Municipal Asset Management Program (MAMP) and propose that the development of a facilities asset management plan be submitted as a project for consideration. This program is funded by the Government of Canada and delivered by the Federation of Canadian Municipalities (FCM). A Facilities Asset Management Plan is required to be completed by July 1, 2023 and the development of an Asset Management Plan is a key part of the workplan over the next two years. Facilities are a complex asset category. Staff propose that internal staff with the support of consultants would prepare the asset management plan for facilities. The financial implications are a contribution of $40,000 from the City of Kitchener and a potential grant of $50,000 from the MAMP program. Community engagement included informing the community by posting the report and agenda prior to the meeting. This report supports the delivery of core services. BACKGROUND: Provincial regulation O.Reg. 588/17 requires municipalities to have an approved asset management plan for all municipal infrastructure assets that identifies current levels of service and the cost of maintaining those levels of service by July 1, 2023. An approved asset management plan for all municipal infrastructure assets that builds upon the 2023 requirements is due by July 1, 2024. The 2024 plan must include an identification of proposed levels of service, what activities will be required to meet proposed levels of service, and a strategy to fund these activities. Facilities are considered a specific category of assets under the O. Reg. 588/17 framework and require an approved asset management plan. The Municipal Asset Management Program (MAMP) is delivered by the Federation of Canadian Municipalities and funded by the Government of Canada. The purpose of the program is to support Canadian municipalities to develop robust infrastructure and asset management policies and programs. REPORT: Corporate Asset Management staff have identified thirteen different types of assets owned and operated by the City of Kitchener. These include water, gas, sanitary and stormwater utilities; golf and parking enterprises; roads & bridges; fleet; facilities; forestry; transportation services; cemeteries; and parks & open spaces. By July 1, 2021 the City must prepare an asset management plan for core municipal infrastructure. As per the O. Reg 588/17 regulations, core municipal infrastructure is defined as water assets, wastewater assets, stormwater management assets, roads and bridges/culverts. The asset management plans must include the current levels of service; current performance of each asset category; the lifecycle activities needed to maintain the current levels of service; and relevant financial management components including replacement cost and approach to replacing or rehabilitating assets within the category. The City of Kitchener has completed detailed asset management plans for all core municipal assets as defined in the regulations. A collaborative effort is underway to satisfy expectations to complete similar asset management plans for all other non-core infrastructure assets by July 1, 2023. As well, on-going monitoring and updating of these detailed lifecycle plans have been integrated within the operational divisions so as to ensure that lifecycle can be maximized in the most cost-effective ways. The City of Kitchener owns and operates 255 facilities ranging from city hall and the Kitchener Operations Facility to recreational facilities, fire stations, arts and culture venues and community centres and smaller ancillary structures. Facilities are a complex asset category for several reasons. Within the structure of a building are several different types of components, such as electrical, mechanical, interior finishes, elevators, fire and life safety systems and furnishings. Building and related structures also do not take one standardized form and they support several specialized functions. For example, an aquatics centre and an administrative building would be constructed very differently, and the mechanical systems and operations would be very different. Finally, facilities are assets that are retained for a long period of time and need to be maintained for their intended function and at an on-going expected level of service. Facilities Management and Asset Management staff have been working collaboratively over the last several years to develop and implement procedures and tools to collect facility data. This is an ongoing exercise to incorporate maintenance and operations activities along with facility and component renewals and/or upgrades. Due to the number of facilities, the volume of data to be analyzed and the complexity of the asset class, staff propose to submit a grant application to support the development of the required facility asset management plan. The Municipal Asset Management Program (MAMP) is an eight-year, $110-million program funded by Infrastructure Canada to support Canadian municipalities and communities in making informed infrastructure investment decisions based on reliable data and sound asset management practices. The program offers municipal grant funding to increase skills within local governments to sustainably maintain their asset management programs now and in the future. The Federation of Canadian Municipalities delivers the program. Projects submitted for consideration must focus on municipally owned assets and must lead to improvement of a . Creating an asset management plan for a specific type of asset, like facilities, is identified as an acceptable scope. Projects must be completed within a 12 - month timeframe. The maximum contribution from MAMP is $50,000. A further stipulation limits the MAMP grant to 80% of eligible project costs in communities with a population greater than 1,000 people. Subject to funding availability, FCM will accept applications for projects on a continuous basis, year-round, until October 31, 2022. Staff propose to undertake a project in 2022 that will focus on a state of local infrastructure report and an asset management plan specific to facilities. This will include a validation of the data collected, such as condition, replacement cost, useful life etc. and will inform the state of infrastructure report. Subsequently, in collaboration with stakeholders, an asset management plan will be created and will include:community and technical levels of service; risk mitigation strategies; long-term financial plans; and lifecycle management strategies. This is the foundation of the Facilities Asset Management Plan required by the provincial regulations by July 1, 2023. These activities will be conducted by staff from Facilities Management and Asset Management divisions supported by consultants familiar with the ISO 5500 standard for elements of leading AM practices. The estimated cost of this undertaking is $90,000. If the maximum allowable grant of $50,000 is awarded by FCM, the City would be responsible for the remaining $40,000. This would be funded from the 2022 Facilities Management capital budget. A requirement of the grant application is a Council resolution authorizing the asset management project, clearly STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget In the 2022 budget year, staff would allocate $40,000 in the Facilities The development of an asset management plan is required by provincial regulation and the City would be responsible to fund this work regardless of the outcome of the grant. The grant provides an opportunity to offset the costs of these efforts. Operating Budget The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services