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FIN-2024-208 - Asset Management Plans for Non-Core Assets
Staff Report Financia( Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: May 13, 2024 SUBMITTED BY: Ryan Hagey, Director of Asset Management & Financial Planning, 519-741-2200 ext. 7353 PREPARED BY: Brad Wakelin, Manager of Infrastructure Asset Planning, 519-741-2200 ext. 4173 WARD(S) INVOLVED: All Wards DATE OF REPORT: May 1, 2024 REPORT NO.: FIN -2024-208 SUBJECT: Asset Management Plans for Non -Core Assets RECOMMENDATION: That the Asset Management Plans for the City's non-core assets as attached to Financial Services Department report FIN -2024-208 be approved; and, That Policy GOV-COR-506 Corporate Asset Management as attached to report FIN -2024- 208 be approved. REPORT HIGHLIGHTS: The purpose of this report is to approve the asset management plans (AMPs) for non-core City assets, and update the City's Asset Management policy. This report supports the delivery of core services. BACKGROUND: Asset management is a coordinated set of activities to realize optimal value from the organization's assets throughout their lifecycle. This includes original construction/acquisition, day-to-day operating and maintenance activities, more significant rehabilitation and renewal investments, all the way up to asset retirement and disposal. In addition to the various treatments applied to physical assets, having appropriate information and a proper framework is key to effective asset management. This report deals with the City's asset management plans, and policy required by legislation. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 3 of 428 REPORT: Asset Management Plans (AMPs) All municipalities must prepare AMPs to comply with O.Reg.588/17: Asset Management Planning for Municipal Infrastructure. The regulation prescribes the content to be included in the AMPs which includes information such as: • Current levels of service • Performance of assets • Statistical information (e.g. replacement cost, age, condition) • Lifecycle activities needed to maintain the current levels The regulation also includes specific compliance deadlines, which are highlighted below. The City is on track to meet all legislated deadlines. • For core assets, AMPs with current levels of service were required to be completed by the July 1, 2022. This was achieved by the City prior to the deadline. • For non-core assets, AMPs with current levels of service are required to be completed by July 1, 2024. This will be achieved with the approval this report's recommendations. • Further, for all asset types, proposed levels of service are required to be completed by July 1, 2025. AMPs for the non-core assets are attached to this report and will be posted online once approved by Council. Core and non-core assets are summarized in the table below. City Assets Included in Asset Management Plans (AMPs) Core Assets Non -Core Assets (already approved) (approved with this report) Water Facilities Wastewater Cemeteries Stormwater Parking Roads Parks & Trails Bridges & Culverts Golf Gas Forestry Transportation V rZleet The total value of the City's non-core assets included in the AMPs is $2.4B. Based on current condition data, roughly half of these assets are in good to very good condition, nearly 20% are in fair condition, and about 30% are in poor to very poor condition. The overall condition of non- core assets is shown in the pie graph below. Page 4 of 428 Poor $652,261,508 27% F $442,059,768 19% Overall Condition of Non -Core Assets Very Poor Unknown Very Good $92,719,193 $51,409,489 $196,181,763 4% 2% 8% Good $956,906,668 40% Facilities are by far the largest of these asset types ($1.913) and account for 81% of non-core assets. Condition of non-core asset condition by type is provided in the graph below. Condition of Non -Core Assets by Type $2,500 $2,000 0 E $1,500 $a9n9.s $12.5 $Z0.3 $3.9 $0 Cemeteries Golf Parking Parks, open Transportation Forestry Fleet Facilities Spaces & Trails Services Very Good Good Fair Poor ■ Very Poor Unknown Page 5 of 428 Developing AMPs for all the non-core assets is a good first step towards better management of these assets. The AMPs provide valuable base knowledge such as the replacement value, age, and condition of these assets which will inform future maintenance and replacement decisions. The fact that there are some assets in poor or very poor condition means significant investments may be needed to restore these assets or replace them. This is not a surprise, and is an issue facing municipalities across Canada. The Federation of Canadian Municipalities (FCM) which represents more than 2,100 municipalities has continually advocated at the federal and provincial levels for additional funding to address municipal infrastructure needs. In 2019 as part of the Long -Term Financial Plan staff identified a 10 -year facilities infrastructure gap of $227M and recommended actions to increase funding to aid in facility renewal. This included refocusing Federal Gas Tax funding from road resurfacing to facilities, and using available budget room from expiring Economic Development Invest Fund (EDIF) debt payments on facilities. These measures resulted in approximately $70M in additional funding being put towards facility renewal over a 10 -year timeframe. As proposed level of service (LOS) work is prepared in advance of the July 1, 2025 deadline, staff will update the infrastructure gap figure and continue to investigate methods to increase funding for renewal activities. The proposed LOS work includes: • An explanation of why the proposed LOS are appropriate for the municipality • Proposed performance targets for each asset category • A lifecycle management and financial strategy for each asset category, including: o An identification of the lifecycle activities that would need to be undertaken to provide the proposed levels of service o An estimate of the annual costs for each of the 10 years of undertaking the lifecycle activities o An identification of the annual funding projected to be available o An explanation of how the municipality will manage the risks associated with not undertaking any of the lifecycle activities In recent years there have been indications that municipalities who do not comply with asset management legislation will be ineligible for grant funding opportunities from other levels of government, so delaying a decision beyond the July 1, 2024 deadline could result in the City being disqualified from beneficial funding opportunities. Staff believe funding from other levels of government is a crucial component of the infrastructure funding model, so ensuring the City's AMPs are passed ahead of the deadline is imperative for continued success in addressing Kitchener's infrastructure needs. Asset Management Policy In addition to AMPs, the City is required to have an asset management policy. The City has had a policy in place since 2012, with a revision occurring in 2018. Since it has been more than 5 years since the last update, some changes to the policy are being recommended to ensure compliance with the Provincial regulation. Outdated references to a previous Strategic Plan, as well as prior asset management terminology like "Phase 1 & 2 AMP" have been removed. A new section called Guiding Principles has been added to the policy, and updates have been made to the Objectives section, Page 6 of 428 as well as the Roles & Responsibilities section. Overall, staff believe these updates make the policy more relevant to the current asset management environment and compliant with legislation. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Asset Management Plans (AMPs) There are no financial implications at this time. However, the information included in the AMPs and subsequent work related to proposed levels of service will be used to determine funding levels and risks of inadequate funding. This information will be used to inform requests through future budget processes. Asset Management Policy There are no financial implications related to the updated policy. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: • INS -18-017 Updated Corporate Asset Management Policy • 2022 City of Kitchener Consolidated Asset Management Plan Summary APPROVED BY: Jonathan Lautenbach, Chief Financial Officer ATTACHMENTS: • Cemeteries Asset Management Plan • Forestry Asset Management Plan • Cemeteries Asset Management Plan • Golf Asset Management Plan • Parking Asset Management Plan • Parks, Open Spaces & Trails Asset Management Plan • Transportation Asset Management Plan • Facilities Asset Management Plan • Fleet Asset Management Plan • Asset Management Policy Page 7 of 428 Cemetery Services Asset Management Plan Current levels of Service I Document ID : 01 May 1", 2024 Final Draft Submission SLBC BW BW Page 9 of2428 Contents 1.0 EXECUTIVE SUMMARY 5 1.1 The Purpose of the Plan..........................................................................................................................5 1.2 Asset Description....................................................................................................................................5 1.3 Levels of Service......................................................................................................................................6 1.4 Future Demand.......................................................................................................................................6 1.5 Lifecycle Management Plan....................................................................................................................6 1.6 Financial Summary..................................................................................................................................7 1.7 Asset Management Planning Practices...................................................................................................8 1.8 Monitoring and Improvement Program.................................................................................................8 2.0 INTRODUCTION 9 2.1 Assets Included in this Plan.....................................................................................................................9 2.2 Provincial Asset Management Requirements.........................................................................................9 2.3 Asset Management at the City of Kitchener.........................................................................................10 3.0 STATE OF LOCAL INFRASTRUCTURE 15 3.1 Background Data..................................................................................................................................15 3.2 Asset Registry Completeness & Assumptions.......................................................................................20 4.0 LEVELS OF SERVICE 22 4.1 Customer Research and Expectations..................................................................................................24 4.2 Strategic and Corporate Goals..............................................................................................................24 4.3 Legislative Requirements......................................................................................................................25 4.4 Customer Values and Community Levels of Service.............................................................................25 4.5 Customer Levels of Service...................................................................................................................26 4.6 Technical Levels of Service....................................................................................................................27 5.0 FUTURE DEMAND 29 5.1 Demand Impact and Demand Management Plan................................................................................29 5.2 Asset Programs to meet Demand.........................................................................................................29 5.3 Climate Change Adaptation..................................................................................................................30 6.0 LIFECYCLE MANAGEMENT PLAN 31 6.1 Operations and Maintenance Plan.......................................................................................................31 6.2 Renewal Plan........................................................................................................................................32 6.3 Summary of future renewal costs.........................................................................................................34 6.4 Acquisition Plan....................................................................................................................................35 6.5 Disposal Plan.........................................................................................................................................37 Page 10 oV428 6.6 Non -Infrastructure Solutions................................................................................................................37 7.0 RISK MANAGEMENT PLAN 38 7.1 Critical Assets........................................................................................................................................38 7.2 Risk Assessment....................................................................................................................................38 7.3 Infrastructure Resilience Approach......................................................................................................40 7.4 Service and Risk Trade -Offs ..................................................................................................................40 8.0 8.1 8.2 8.3 8.4 8.5 FINANCIAL SUMMARY Financial Sustainability and Projections ................ Funding Strategy .................................................... Valuation Forecasts ............................................... Key Assumptions Made in Financial Forecasts...... Forecast Reliability and Confidence ....................... 9.0 PLAN IMPROVEMENT AND MONITORING 45 9.1 Status of Asset Management Practices................................................................................................45 9.2 Improvement Plan................................................................................................................................45 9.3 Monitoring and Review Procedures.....................................................................................................46 10.0 REFERENCES 47 Page 11 of 428 1.0 EXECUTIVE SUMMARY 1.1 The Purpose of the Plan This City of Kitchener Cemetery Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to maintain current levels of service in a cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required over a 10 -year planning period. The AM Plan will link to a Long -Term Financial Plan which typically considers a 10 -year planning period. 1.2 Asset Description This plan covers the infrastructure assets that provide cemetery services. The largest portion of the asset mix are Cemetery Infrastructure — Linear (roadways, parking lots and fencing) assets with a replacement value of $5.6M and Interment Memorials with a replacement value of $5.5M. These two categories of assets account for approximately 89% of the total replacement value of all cemetery assets. The infrastructure assets covered by this AM Plan are shown in Table 1.1. Table 1.1: Assets covered by this Plan Cemetery Infrastructure — Garbage Cans, Fountains, Gates, Bollards, Benches $75,300 Discrete Cemetery Infrastructure — Roadways/Parking Lots, Fences $5,596,080 Linear Wetland Gazebo, Wetland Bridge, Pond Bridge, Cemetery Structures Dedication Centre Pergola, Serbian Pergola, Trail $539,000 Entrance Features Equipment Lowering Units $21,000 Horticulture Horticultural Beds $230,000 Interment Features Art/Artifacts, Stone Walls, Reflection Stones $538,000 Statues, Memorial Trees, Memorial Benches, Burial Interment Memorials Greens, Urn Tables, Columbarium, Ossuary/Scattering $5,536,250 Gardens, Memorial Plaques TOTAL $12,535,630 The above infrastructure assets have a replacement value estimated at $12.5 million with a breakdown of this value shown in Figure 1.1. Page 12 of 428 Horticulture $230,000 1.81 Interment Feature $538,000 4.3% 1.3 Levels of Service Figure 1.1: Asset Valuation .emetery ;ructure-Linear 5,596,080 44.6% Interment Memorials $5,536,250 44.2% Cemetery Infrastructure- Discrete nfrastructure- Discrete $75,300 0.6% Cemetery Structures $539,000 4.3% Equipment $21,000 0.2% The allocation in the planned budget is insufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. The main service consequences of the Planned Budget are: ■ While performance measure data is not available for capacity and use for prior years, it is estimated that casket and in -ground cremation lots will be sold out in approximately 15-20 years. This may warrant closer attention for investment in growth of assets to ensure the City can provide adequate cemetery services. 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are: ■ Population growth ■ Aging population These demands will be approached using a combination of lifecycle management and non -asset solutions such as: ■ Expansion and addition of cemetery infrastructure to accommodate the increase and aging of the population. ■ The promotion of sustainable burial practices such as cremation. 1.5 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan include operation, maintenance and renewal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output Page 13 of 428 from the AM Plan is the forecast of 10 -year total outlays, which for the cemetery services portfolio is estimated to be $25.9 million or $2.59 million on average per year. 1.6 Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 -year period is $25.4 million or $2.54 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 98% of the cost to sustain the current level of service at the lowest lifecycle cost. The infrastructure reality is that only what is funded in the long-term financial plan can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for cemetery services leaves a shortfall of $0.05 million on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long -Term Financial Plan. This is shown in the figure below. Figure 1.2: Lifecycle Summary Renewal Need IUnconstraInedl 40&M Need � Growth & Upgrade Need--10-Yr Ave Annual NEED [$0.12 M/yrl (Unca utraireed) —10 -Yr Ave Annual FUNDING {$0.07 Mlyd $16.0 $5.0 $1.0 $0.0 2024 2025 2025 2027 2028 2029 2030 2431 2032 2033 Renewal Gap: $0.05M/year Figure Values are in current year (2023) dollars. We plan to provide cemetery services for the following: ■ Operation, maintenance, renewal and acquisition of cemetery assets to meet service levels set by the City in annual budgets. ■ New and expanded assets are included in the next 10 -year planning period based on projects listed in the 2024-2033 Capital Plan. 1.6.2 Infrastructure Gap We currently do not allocate enough budget to sustain these services at the current standard or to provide all new services being sought. Works and services that cannot be provided under present funding levels are: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.05 million per year) Page 14 of'428 1.6.3 Managing the Risks Our present budget levels are insufficient to continue to manage risks in the medium term. The main risk consequences are: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs and deteriorating assets. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. We will endeavor to manage these risks within available funding by: Continue to apply a risk-based approach to asset lifecycle planning to focus available funding on critical assets. ■ Pursue available grants from higher levels of government. 1.7 Asset Management Planning Practices Key assumptions made in this AM Plan are: Assumptions were made regarding the estimated service life of certain assets. For example, the estimated service lives for Ossuary/Scattering Gardens, Fences and Bollards were assumed to be 100, 50 and 10 years respectively. Assets requiring renewal are identified from the asset register. ■ The timing of capital renewals based on the asset register is applied by adding the useful life to the year of acquisition or year of last renewal. ■ Alternatively, an estimate of renewal lifecycle costs is projected from external condition and may be supplemented with, or based on, expert knowledge. This AM Plan is based on a high level of confidence information. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are: ■ City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. ■ City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. ■ City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, City to set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. ■ Conduct formal risk assessments to prioritize preventative maintenance activities, as well as renewal / capital investments. • City to continue to develop and update 10 -year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). Page 15 of 428 2.0 INTRODUCTION The City of Kitchener (the City) is in Waterloo Region, in the heart of southwestern Ontario. The City covers an area of 137 square kilometers and has a population of approximately 270,000; making it the largest City in the Region and the Grand River Watershed alike. The City has been designated as a growth area through the Provincial Growth Plan: Places to Grow, and has seen significant population growth that is expected to continue through the next decade. The City owns and maintains assets that provide a wide range of services between City departments and to its residents. This Asset Management Plan (AM Plan) will communicate the requirements for the sustainable delivery of services through efficient management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the planning period. The Plan has been prepared in accordance with Ontario Regulation 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation lays out the requirements for all AM Plans, as well as deadlines to meet to certain milestones. This iteration of the AM Plan meets requirements for Current Levels of Service. 2.1 Assets Included in this Plan This AM Plan covers non -facilities cemeteries assets for which the City is responsible for lifecycle management. Any facilities associated with cemetery services have been covered in the Facilities AM Plan. The infrastructure assets included in this plan have a total replacement value of $12.5 million. Figure 2.1— City of Kitchener Non -Core Cemeteries Asset Condition and Value Fair $8,061,360 64% 2.2 Provincial Asset Management Requirements Good $2,613,210 21% Very Poor $1,040,360 8% Unknown $108,500 1% Very Good $712,200 6% The Province of Ontario requires all municipalities that seek provincial infrastructure funding have an asset management plan, or plans, in place. To encourage a similar approach across municipalities, in 2012 the province introduced Building Together: Guide for Municipal Asset Management Plans, which defined the key components of an effective asset management plan. More recently in 2017, the province approved O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation mandates the development of an asset management policy, asset management plans, and their content. Additionally, milestones are included for when municipalities must fulfill certain requirements, outlined below in Figure 2.2. Page 16 of 428 2.3 Figure 2.2 - O. Reg 588/17 Milestones July 1st 2019 The City's first AM Policy was completed in 2012, and most recently Strategy updated in 2024. The Policy outlines the goals and objectives of asset Policy management within the Organization. July 1st 2022 14 t the Cita, Core AMPS prepared in accordance with O Reg 588/17 include Water, Wastewater, Stormwater, Roads & Traffic, Bridges & Core AMPs Culverts, and Gas. These AMPS must document current Levels of Service and the cost to maintain them. Non-ccre Al will include Facilities, Cemeteries, Parking, Parks, Open Spaces & Trails, Golf, Forestry, Transportation and Fleet. These AMPS ° must document current Levels of Service and the cost to maintain them. July 1st 2025 By this time, the City is required to have an approved AMP for all assets Proposed Levels that builds upon the 2022 and 2024 requirements. These AMPS must document proposed Levels of Service, what activities will be required to • meet them, and a strategy to fund them. Asset Management at the City of Kitchener The City of Kitchener has been practicing sound asset management planning for at least 15 years, starting with the introduction of Public Sector Accounting Board (PSAB) legislation. Since 2007, several efforts have resulted in well-established asset management programs and procedures, as well as the inclusion of a dedicated Asset Management Division in the City's corporate structure. Figure 2.3 below outlines some key milestones in the City's asset management journey. Kitchener City Council adopted the most recent Corporate Asset Management Strategy in 2016. The goals outlined in the strategy are to extend the useful life of all assets, in the most cost-effective way, while managing risk and meeting the agreed upon levels of service. The AM Plan is a key tactical (medium-term) planning document that relies on input from strategic planning activities and informs shorter -term decision making. The AM Plan provides a framework to validate the City's budgeting processes and assist in prioritizing work activities, including capital projects, based on risk. It discusses levels of service that also support goals in the 2023 to 2026 Strategic Plan and lifecycle management strategies intended to reduce the overall cost of asset ownership. Page 17 o 42 Figure 2.3 - City of Kitchener Asset Management Timeline 2007 200: 2010 2011 2012 2013 2017 Procurement Development Establishment Council Development Development Introduction of City's of Corporate of an asset approves the of two pilot of water, of O.Reg maintenance Asset management City's first AMPS sanitary and 588117 — Asset management Management program asset (pavement storm AMPS Management system, Strategy coordinator and management and the AUD) planning for CityWorks office policy Municipal Infrastructure 2.3.1 Corporate Asset Management System An asset management system should aim to achieve a line of sight between corporate strategic goals outlined in the strategic plan, and operational plans, policies and procedures, as illustrated in Figure 2.4. Two guiding documents in this system are the Asset Management Strategy and Asset Management Policy, most recently updated in 2016 and 2024, respectively. The Asset Management Policy defines the intent, scope and principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. Section 5.3 — Climate Change Impacts of this AM plan discusses these impacts specific to the City and strategies to build and maintain assets through the lens of resiliency, sustainability, adaptation, and mitigation. The Asset Management Strategy defines how the principles of the policy will be put into practice and the three guiding principles of asset management at the City of Kitchener which are to: 1 Balance asset condition and levels of service, 2 Allocate financial resources among priorities and, 3 Shift how we do business — such as introducing programs to support the requirement for high-quality data services. 7+ b Y Figure 2.4 - City of Kitchener Asset Management System Operational Plans, Policies, and - In addition to the Asset Management Strategy and Policy, this AM Plan should be read in conjunction with other planning documents relevant to non-core assets, outlined in Table 2.1 below. Page 18 of 428 Table 2.1: Key Planning Documents D. I. 2023-2026 Corporate Strategic Plan The document outlines the strategic goals that are to be championed by Council and staff across the City. The Official Plan is a legal document that contains goals, objectives and policies to manage and direct physical and land use change and Official Plan (2014) their effects on the cultural, social, economic and natural environment within the City. This Plan provides a framework for decision-making and plays several essential roles in the future planning of the City. The AM strategy outlines the Asset Management program at the Corporate Asset Management City, the three guiding principles of where the program intends to go, Strategy (2016) and the value gained by forming consistent practices throughout the asset groups. Corporate Asset Management Policy The Asset Management Policy defines the intent, scope and (2024) (currently being updated) principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. The City's Corporate Climate Action Plan aims to achieve meaningful Kitchener, Changing for Good - and measurable carbon emission reductions throughout its Corporate Climate Action Plan (2019) operation, while also adapting to impacts resulting from climate change. Under Ontario Regulations 25/23, public sector agencies in Ontario Energy Conservation & Demand must report annual energy consumption and develop a five - year Management Plan (2019-2023) conservation and demand management plan intended to reduce energy consumption and greenhouse gas emissions. The DC Study includes preparing a development forecast, Development Charges Background establishing historical service levels, determining the increase in Study (2022) need for services arising from development and appropriate shares of costs and attribution to development types (residential and non- residential). Key stakeholders in the preparation and implementation of this AM Plan are shown in Table 2.2 Page 19 o 42 Table 2.2 - Key Stakeholders in the AM Plan City Council are the overall owners of the City's assets. Council approves asset management policies and asset funding allocation through the City of Kitchener Elected Council annual corporate budget process. An overarching expectation of a standard of care is required by Council to ensure commitment to effective asset Management practices. The Leadership Team provides corporate oversight to the program to Corporate Leadership Team ensure that the goal and directions of the Corporate Asset Management program are maintained, and the program remains consistent with the overall Strategic Plan. This committee provides leadership and strategic direction for supporting systems/processes specific to the delivery of asset/work management information for the City of Kitchener. Further, in support of Asset Management Steering the city-wide asset management strategies, the committee provides Committee leadership and governance to the Asset Management Policy statement through the provision of information necessary for the long-range forecasts of asset investment needs, services levels, risks, costs and other performance measures. Community Services is a department of the City and is responsible for the Community Services operation and maintenance of community centres, swimming pools, arenas, sports facilities, as well as the Kitchener Fire Department stations. The Finance division within Financial Services prepares an annual operating budget and 10 -year capital forecast for Council's Finance consideration. The annual budget helps identify the spending plans and priorities for the City for the upcoming year and is informed by the City's Strategic Plan, various master plans, and feedback from the community. 2.3.2 Asset Management Plan Methodology The information presented in the AM Plan is based on O.Reg. 588/17 requirements, the Guide for Municipal Asset Management Plans, originally issued by the Ontario Ministry of Infrastructure, and leading asset management practices. Costs and replacement values in this AM Plan are estimated in 2023 dollars. The AM Plan was developed by SLBC Inc. in collaboration with City staff through: Page 20 o 42 • Review of background materials available on the City's web site and provided by the City's project team including asset inventories, planning documents, and budgets • Workshops with internal stakeholders • Various interim meetings with the City's project team • Numerous data and information transfers • Review of interim outputs by the City's project team and other stakeholders, and incorporation of comments into the final AM Plan Page 21 o 42 3.0 STATE OF LOCAL INFRASTRUCTURE 3.1 Background Data 3.1.1 Asset inventory and valuation A mix of assets support the delivery of the City's cemetery services. The assets covered by this AM Plan are shown in Table 3.1.1. All table and figure values are shown in current year (2023) dollars. The largest portion of the asset mix are Cemetery Infrastructure — Linear (roadways, parking lots and fencing) assets with a replacement value of $5.6M and Interment Memorials with a replacement value of $5.5M. These two categories of assets account for approximately 89% of the total replacement value of all cemetery assets. Table 3.1.1: Assets covered by this Plan Asset Types Replacement Value Cemetery Infrastructure — Garbage Cans, Fountains, Gates, Bollards, Benches Discrete Cemetery Infrastructure — Roadways/Parking Lots, Fences Linear Wetland Gazebo, Wetland Bridge, Pond Bridge, Cemetery Structures Dedication Centre Pergola, Serbian Pergola, Trail Entrance Features Equipment Lowering Units Horticulture Horticultural Beds Interment Features Art/Artifacts, Stone Walls, Reflection Stones Statues, Memorial Trees, Memorial Benches, Burial Interment Memorials Greens, Urn Tables, Columbarium, Ossuary/Scattering Gardens, Memorial Plaques TOTAL $75,300 $5,596,080 $539,000 $21,000 $230,000 $538,000 $5,536,250 $12,535,630 The asset valuation distribution for this AM Plan is shown in Figure 3.1.1 and the age profile of the assets included in this AM Plan are shown in Figure 3.1.2. Page 22 o 42 Horticulture $230,000 1.81 Interment Feature $538,000 4.3% Figure 3.1.1: Asset Valuation .emetery ;ructure-Linear 5,596,080 44.6% Interment Memorials $5,536,250 44.2% Cemetery Infrastructure- Discrete nfrastructure- Discrete $75,300 0.6% Cemetery Structures $539,000 4.3% Equipment $21,000 0.2% Page 23 of 428 Figure 3.1.2: Asset Age Profile a Age Within Service Life Estimated Service Life ■ Age Beyond Service LAe Notes on the above Asset Age Profile: ■ Memorial Benches and Memorial Plaques are not included because they are missing information on age and condition. ■ Roadways & Parking lots have the highest age to service life ratio with an average age of 42 years compared to an estimated service life of 30 years. ■ Assets categorized as Interment Features and Interment Memorials have a much lower age to service life ratio. 3.1.2 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.1.2. Page 24 of1428 0 10 247 }[I .lU iL Eli lU HI? kali lUrt i iti Garbage Cans 10 Cemetery Fountains InfraStreCt"Fe - Gates Discrete Bollards Cemetery ltoedwa%%& Parking luta infrastructure -Linear Fenw Wetland Gazebo Welland Bridge cemetery Pond Bridge r _ Structures Ded iration. Centre Pergola Serbian Pergola Trail Entnme feature Q �� Equipment Lowering Units ® j Horticulture Horticuhunl Beds ] Art/Artifacits Intennmt Stone Walls IIIIIIIIIIIIIIIIIIiI7 features Reflection Scones �_. -. statues Memorial Trees ® _ interment Burial Greens Memorials Urn Tables columbar;um ossua ryjsratlering Gardens a Age Within Service Life Estimated Service Life ■ Age Beyond Service LAe Notes on the above Asset Age Profile: ■ Memorial Benches and Memorial Plaques are not included because they are missing information on age and condition. ■ Roadways & Parking lots have the highest age to service life ratio with an average age of 42 years compared to an estimated service life of 30 years. ■ Assets categorized as Interment Features and Interment Memorials have a much lower age to service life ratio. 3.1.2 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.1.2. Page 24 of1428 Cemetery Infrastructure & Structures Equipment Horticulture Interment Features & Memorials 3.1.3 Asset capacity and performance Table 3.1.2: Asset Service Hierarchy Maintains the cemetery's infrastructure including roads, walkways, and parking lots. This ensures that the cemetery is accessible and safe for visitors. Ensures that the burial process is conducted in a safe and dignified manner. Maintains the cemetery's grounds and landscaping. This creates a peaceful environment that is conducive to mourning and reflection. Provides a range of burial options and memorialization services to bereaved families. This ensures that the cemetery provides a dignified and respectful final resting place. Assets are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table 3.1.3. Table 3.1.3: Known Service Performance Deficiencies Cemetery This category has the highest proportion of assets in very poor condition and has a Infrastructure — Linear higher average age. There is a potential for deficiency in this category if left unaddressed. Interment Memorials This category of assets has a significant portion of assets with a fair condition rating. This category of assets needs to be monitored closely to maintain quality. Cycling Trails and It was identified in the City of Kitchener Cycling and Trails Master Plan 2020 that Parking future development is required in parks and cemeteries for cycling and trail infrastructure to meet community needs. The above service deficiencies were identified from the Cycling and Trails Master Plan 2020, Places & Spaces — Parks Strategic Plan and workshop correspondence with the City of Kitchener. 3.1.4 Asset condition Assets can be inspected and monitored through various means. The City employs both internal staff and contractors to perform inspections of City owned assets on an as needed basis. The results of these inspection programs provide the City with meaningful empirical data that can be used to gauge the condition of assets and needs for asset maintenance or renewal. The cost for these condition assessments can be found in the Operational costs shown in section 6.1 of this AM Plan. Page 25 o 42 Table 3.1.4: Condition Assessments No formal condition assessment program Condition is measured using a 1— 5 grading system as detailed in Table 3.1.5. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM Plan results are translated to a 1— 5 grading scale for ease of communication. Table 3.1.5: Condition Grading System 1— Very Good free of defects, only planned and/or routine maintenance required 2 — Good minor defects, increasing maintenance required plus planned maintenance 3 — Fair defects requiring regular and/or significant maintenance to reinstate service 4 — Poor significant defects, higher order cost intervention likely 5 — Very Poor physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.1.4. Figure 3.1.4: Asset Condition Profile Fair $8,061,360 64°% Good $2,613,210 21% All figure values are shown in current year (2023) dollars. Very Poor $1,040,360 8% Unknown $108,500 1% Very Good $712,200 6% The condition assessment of the City's cemetery assets provides some perspective on the overall reliability of its infrastructure. Overall, approximately 91% of the City's cemetery assets have a condition rating of fair or better. This highlights the City's commitment to maintaining these services. Page 26 o 42 3.2 Asset Registry Completeness & Assumptions In compiling this AM Plan, a thorough review of the asset registries was performed. The purpose of this review was to identify whether all asset categories under the leadership and stewardship of the responsible stakeholders are represented in a singular or combined asset registry. The review also looks to ensure that for those registries that do exist, fields that are critical to the assets' lifecycle and financial management are populated with accurate values. These values will provide the basis for meaningful asset management planning. The following categories have been employed to assess the completeness of asset registries: Table 3.2: Asset Registry Rating Categories Data based on sound records, procedures, investigations and analysis, documented Good properly but may have minor shortcomings. Dataset is complete and estimated to be accurate ± 10%. Data based on sound records, procedures, investigations and analysis which is incomplete Fair or unsupported, or extrapolated from a limited sample. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% Poor Dataset may not exist or be fully complete, and most data is estimated or extrapolated Table 3.3: Asset Registry Assessment Cemetery Infrastructure— Good Good Good Good Good Good Good Discrete Cemetery Infrastructure— Good Good Good Good Good Good Good Linear Cemetery Good Good Good Good Good Good Good Structures Equipment Good Good Good Good Good Good Good Horticulture Good Good Good Good Good Good Good Interment Good Good Good Good Good Good Good Features Interment Good Good Good Good Good Good Good Memorials Where asset registries are missing critical data or fields are found to be incomplete, there may be assumptions of the data that have to be made to complete this AM Plan. While these assumptions are listed below, they will be put into more context as needed through this AM Plan. Key assumptions related to the asset registries made in this AM Plan are Page 27 o 42 ■ Assumptions were made regarding the estimated service life of certain assets. For example, the estimated service lives for Ossuary/Scattering Gardens, Fences and Bollards were assumed to be 100, 50 and 10 years respectively. Page 28 o 42 4.0 LEVELS OF SERVICE In the State of Infrastructure Section, the value, age, and condition of the City's infrastructure assets were discussed. The Levels of Service (LOS) chapter builds on the State of Infrastructure by defining the performance the City's assets are intended to deliver over their service lives. LOS are statements that describe the outputs and objectives the City intends to deliver to its residents, businesses, and other stakeholders. In general, LOS are guided by a combination of customer expectations, legislative requirements, internal policies and procedures, and affordability. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, performance levels, and timeframes to achieve performance levels, such that the activities and costs to deliver the documented LOS can be determined. Figure 4.1 shows the LOS framework and line of sight from higher-level Corporate priorities to detailed asset - specific Technical LOS. Corporate commitments and legislated LOS guide the development of Community LOS. The Community LOS outline the services that the assets need to deliver to the City's residents and businesses. Community LOS can be categorized into one of the following service attributes: • Capacity & Use: Services have enough capacity and are available to customers • Function: Services meet customer needs while limiting health, safety, security, natural and heritage impacts • Quality & Reliability: Services are reliable and responsive to customers • Financial Sustainability: Services are affordable and provided at the lowest cost Community LOS are translated into Customer LOS, which measure services from a resident/business perspective, and Technical LOS that define asset performance levels. These LOS in turn define asset needs and drive the required lifecycle activities and associated funding to mitigate risks, as follows: • Capacity & Use LOS inform Acquisition needs • Function LOS inform Upgrade needs • Quality & Reliability LOS inform Renewal, Operations and Maintenance needs • Financial Sustainability LOS inform Funding needs This Line of Sight shows how the day-to-day management of City assets supports the achievement of higher- level strategic priorities. Page 29 o 42 a C 41 V C p Z7 3 D 6 w C 0 Lm•0 4D..`_ a#a o—xm .? 4.1 4.2 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the City of Kitchener. Future revisions of the AM Plan will incorporate customer consultation on service levels and costs of providing the service. This will assist Council and stakeholders in matching the level of service required, service risks and consequences with the customer's ability and willingness to pay for the service. Currently, there is no research on customer expectations. This will be investigated for future updates of the AM Plan. Strategic and Corporate Goals This AM Plan is prepared under the direction of the Corporate Asset Management Strategy which is in alignment with the City of Kitchener's Strategic Plan (2023 — 2026). The City of Kitchener's Strategic Plan was developed with the consultation of residents, community organizations, businesses and councillors. Further to this, the AM Strategy supports the United Nations Sustainability Goals (SDGs) which outline the ways to achieve a better and more sustainable future for all. The City's mission is: "Proudly providing valued services for our community. Our promise to the community is that we'll deliver on the priorities that matter to them: people -friendly transportation, environmental leadership, a vibrant economy, a caring community and great customer service" Strategic goals have been set by the City of Kitchener. The relevant goals and objectives and how these are addressed in this AM Plan are summarised in Table 4.2. Table 4.2: Goals and how these are addressed in this Plan We live in all kinds of neighbourhoods and types of housing. We work Building a together to ensure that we each have Connected City secure and affordable homes. We get Together around easily, sustainably and safely to the places and spaces that matter most to us. We welcome residents of all ages, backgrounds and lived experiences. We Fostering a work together on the decisions that matter to us and have a meaningful Caring City Together influence in our community. We're healthy and thriving as we easily access the diverse and inclusive programs and services we need to succeed. We, the City's employees, are stewards of Kitchener's present and its future. Stewarding a We're responsive, innovative, diverse Better City and accountable public servants who Together work together efficiently to serve residents. We remove barriers and champion residents' collective vision for a better city and a better world. By investing in cemetery assets, the City can provide a peaceful and serene environment for residents to visit their loved ones. This can help foster a sense of community and belonging among residents. Properly investing in and maintaining cemetery assets can help ensure that residents have access to a dignified and respectful final resting place. This can help promote a sense of inclusivity and respect for all residents, regardless of their background or lived experiences. By investing in cemetery assets, the City can help preserve its history and heritage. Cemetery assets can serve as a valuable resource to help future generations understand the City's past. Page 31 of 428 4.3 Legislative Requirements There are many legislative requirements relating to the management of assets. Some of the legislative requirements that impact the delivery of the services provided by the City's non-core cemetery assets are outlined in Table 4.3. This AM Plan is prepared in accordance with O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, which lays out the requirements for Asset Management Plans prepared by municipalities across Ontario and milestones that all municipalities are required to meet. This AM Plan meets the July 1st, 2024, requirements and establishes a framework for meeting the July 1st, 2025, requirements. Please note that this list of legislative requirements is not exhaustive. Table 4.3: Legislative Requirements Legislation Requirement Establishes strategic, long-term, sustainable plans to manage core and non-core capital infrastructure assets by 2024. The Regulation requires: • Municipal governments to adopt AM Plans for all infrastructure Ontario Regulation 588/17 assets including identifying levels of service and costs of maintaining services. • Municipal governments to set technical metrics and qualitative descriptions for each asset. Funeral, Burial and Cremation The purpose of the Funeral, Burial and Cremation Services Act is to Services Act, 2002 regulate bereavement service providers. The Act provides guidelines for the operation of cemeteries, crematoriums and funeral homes. The Accessibility for Ontarians The purpose of the AODA is to develop, implement and enforce with Disabilities Act, 2005 (AODA) standards for accessibility related to goods, services, facilities, employment, accommodation and buildings. Technical Standards and Safety Facilities must comply with technical standards and safety regulations Act, 2000 depending on the industry or equipment they include such as elevating devices. 4.4 Customer Values and Community Levels of Service The LOS discussed in this AM Plan are focused on measures developed to support achievement of the City's higher level strategic priorities and key areas of investment. This AM Plan summarizes the performance on the measures based on the most current data available. The City will determine targets (proposed service levels) per O.Reg.588/17 requirements for Proposed LOS by 2025 and will align service levels with information in other planning documents when determining these targets. As discussed in Section 4.0, service levels are defined in three ways: community levels of service, customer levels of service and technical levels of service. Community LOS are qualitative statements categorized by service values and attributes. Service Values and attributes indicate what aspects of the service is important to the customer. Page 32 o 42 Capacity/Use Capacity & Use Available Scope Function Functional Safety Resilience Table 4.4: Service Values and Community LOS Is the service over or under used? Do we need more or less of these assets? The service can be used/reached at convenient times The service is broad enough that it serves the entire population Services meet customer needs while limiting health, safety, security, natural and heritage impacts The service is provided in a manner that protects users from harm Considers future impacts such as climate change that may put stress on the system. Ensure adequate infrastructure to meet growing population and community needs Provide accessible infrastructure for inclusion and meeting diverse resident needs Not available Provide infrastructure in acceptable In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 33 o 42 condition and cleanliness by The standard to which the service Quality following and providing proper Quality & is provided maintenance standards and Reliability inspections Consistently good in quality or Maintain infrastructure proactively Reliable performance -works when minimize unexpected failures service users expect it to work How much does the service cost? Affordable Is it fair and is the service Financial provided worth this cost? Provide infrastructure management services in an efficient and cost- Sustainability Service is provided with effective manner Efficient maximum productivity and minimal wasted effort In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 33 o 42 Table 4.5: Customer Level of Service Measures While performance measure data is not available for capacity and use for prior years, it is estimated that casket and in -ground cremation lots are to be sold out in approximately 15-20 years. This may warrant closer attention for investment in growth of assets to ensure the City is able to provide adequate cemetery services. Other metrics which will continue to be monitored by the City in future iterations of the AM Plan include the percentage of assets within service life and the average pavement condition index for cemetery roads. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such Page 34 of2428 Casket and in - Forecast time to deplete inventory ground Ensure adequate of casket and infrastructure to cremation ground Capacity & meet growing lots Use population and available available community Forecast time to be sold out in needs deplete inventory of columbaria niches Provide % of assets within infrastructure in service life (by inventory is acceptable replacement value) condition and Quality & cleanliness by Not Reliability following and Average pavement providing proper condition index available (PCI) of cemetery available maintenance roads standards and inspections While performance measure data is not available for capacity and use for prior years, it is estimated that casket and in -ground cremation lots are to be sold out in approximately 15-20 years. This may warrant closer attention for investment in growth of assets to ensure the City is able to provide adequate cemetery services. Other metrics which will continue to be monitored by the City in future iterations of the AM Plan include the percentage of assets within service life and the average pavement condition index for cemetery roads. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such Page 34 of2428 Casket and in - ground Monitor cremation lots Not Not Not Only are estimated to available available available be sold out in 15-20 years Columbarium inventory is Monitor Not Not Not expected to be Only available available available sold out in 9-11 years Monitor Not Not Not available 99.5% Only available available Monitor Not Not Not Future Metric Only available available available While performance measure data is not available for capacity and use for prior years, it is estimated that casket and in -ground cremation lots are to be sold out in approximately 15-20 years. This may warrant closer attention for investment in growth of assets to ensure the City is able to provide adequate cemetery services. Other metrics which will continue to be monitored by the City in future iterations of the AM Plan include the percentage of assets within service life and the average pavement condition index for cemetery roads. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such Page 34 of2428 as technology and customer priorities and lifestyle trends will change over time. Table 4.6 shows the activities expected to be provided under the current 10 year Planned Budget allocation, and the Forecast activity requirements being recommended in this AM Plan. Table 4.6 uses the same trend identifiers used in the previous section (4.5). Table 4.6: Technical Levels of Service Future Not available Not available Not available Metric Future Not available Not available Not available Metric lul 1064 959 1208 $2,482,767 $2,174,160 $2,132,608 While the number of maintenance requests has seen a downward trend overall, this is seen as having a neutral impact on service delivery. The annual operating, maintenance and expenditure costs have seen an upward trend overall which is seen as having a positive impact on service delivery. This highlights the City's effort to operate and maintain their cemetery services effectively. Other metrics which will continue to be monitored by the City in future iterations of the AM Plan include the number of repairs due to damage from weather or vandalism and the percentage of maintenance work orders completed on time. Page 35 o 42 Number of repairs due to Maintenance damage from weather Monitor events or vandalism Only % of maintenance work Maintenance orders completed on Monitor Only time # of maintenance Monitor Maintenance requests Only Annual operating, Operations maintenance, Monitor Only and expenditure costs Future Not available Not available Not available Metric Future Not available Not available Not available Metric lul 1064 959 1208 $2,482,767 $2,174,160 $2,132,608 While the number of maintenance requests has seen a downward trend overall, this is seen as having a neutral impact on service delivery. The annual operating, maintenance and expenditure costs have seen an upward trend overall which is seen as having a positive impact on service delivery. This highlights the City's effort to operate and maintain their cemetery services effectively. Other metrics which will continue to be monitored by the City in future iterations of the AM Plan include the number of repairs due to damage from weather or vandalism and the percentage of maintenance work orders completed on time. Page 35 o 42 5.0 FUTURE DEMAND 5.1 Demand Impact and Demand Management Plan Population growth and its geography can have major impacts on the scale of services delivered by the City and the assets that support service delivery. The City's approaches to accommodate growth needs are described in the Official Plan. The 2014 Official Plan provides policies for guiding and directing growth and development to enable the City's success of achieving the vision to be a complete and healthy community. This section focuses on the capital growth expenditures planned by the City to meet growing demands and manage the risks to the service levels. Growth also results in an increasing asset portfolio over the forecast period with associated impacts on the operating budget, discussed further in Section Error! Reference source not found. as part of the Lifecycle Strategy. The population of the City of Kitchener and surrounding areas has been rapidly growing over the past few decades and is expected to continue to grow at a similar pace in the coming years. The City monitors trends in its population to ensure that the associated impacts on service levels are well understood and that strategies are developed to manage risks related to the additional demands due to growth and changes in demographics. The 2014 Official Plan sets out the estimated population and employment forecasts to 2031. Updated forecasts are provided in the City's 2022 Development Charge Study, which forecasts that the City's population will increase from 250,247 in 2021 to 309,120 in 2036 (the current population (2023) is estimated at 270,000). Employment was estimated at 99,662 jobs in 2021, and is expected to reach 123,825 jobs by 2036. Demand drivers are circumstances that may impact future service delivery and use of assets. These drivers can include things such as population change, climate change, regulations, changes in demographics, seasonal factors, consumer preferences and expectations, technological changes, economic factors, environmental considerations, etc. The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.1. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices can include non -infrastructure solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 5.1. Further opportunities will be developed in future revisions of this AM Plan. Table 5.1: Demand Management Plan Population 270,000 (2023) 309,120 (2036)* There may be a Growth deficiency in the availability of cemetery services. Aging Population 70 Population 70 There will be an increase population years and older years and older in demand for cemetery (9% in 2021)** (16% projection services. in 2041)** *2022 Development Charges Study **2019 Leisure Facilities Master Plan 5.2 Asset Programs to meet Demand Expansion and addition of cemetery infrastructure to accommodate the increase and aging of the population. The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 6.4. Acquiring new assets will commit the City of Kitchener to ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. These future costs are identified and Page 36 o 42 5.3 considered in developing forecasts of future operations andmaintenance costs for inclusion in the long-term financial plan (Refer to Section 8). Climate Change Adaptation The impacts of climate change may have a significant impact on the assets under management and the services they provide. In the context of the Asset Management Planning process, climate change can be considered as both a demand driver and a risk. The City of Kitchener's Corporate Climate Action Plan (CorCAP) is the City's guiding policy document on climate change in accord with the Region of Waterloo's "A Climate Action Plan for Waterloo Region". The City of Kitchener's mitigation and adaptation strategy for the Corporate Climate Action Plan is to lead by example with action on climate change to reduce corporate greenhouse gas emissions and promote inclusive environmental sustainability and resilience. This supports the City's corporate mission of 'proudly providing valued services for our community, and strategic goals of environmental leadership, by working to ensure we can safeguard the City's assets and stakeholders.' We must consider how to manage our existing assets given potential climate change impacts for our region of Ontario. Risk and opportunities identified to date are shown in Table 5.2 Table 5.2 Managing the Impact of Climate Change on Assets and Services Land Use Limited land Limited land availability may The City can promote more availability as the impact the City's capacity for sustainable burial practices City grows traditional burial services such as cremation. Additionally, the way in which we construct new assets should recognize that there is opportunity to build in resilience and adaptation to climate change impacts. Building Asset Resilience to Climate change for any facilities related to cemetery services have been covered in the Facilities AM Plan. ' Kitchener Changing for Good, Our Climate Strategy Action Plan, Sec 1.1 Page 37 o 42 6.0 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how the City of Kitchener plans to manage and operate the assets at the agreed levels of service (Refer to Section 4) while managing life cycle costs. 6.1 Operations and Maintenance Plan Operations include regular activities to provide services and may not have a direct impact to the overall health of the asset. Examples of typical operational activities include cleaning, asset inspection and supply of power. Maintenance includes all actions necessary for retaining an asset as near as practicable in an appropriate condition including regular ongoing day-to-day work necessary to keep assets operating. As well, maintenance activities strive to ensure that the asset's degradation follows the expected lifecycle rather than accelerating towards an earlier disposal or replacement cycle. Examples of typical maintenance activities include minor repairs. The trend in operations and maintenance budgets are shown in Table 6.1. Table 6.1: Operations & Maintenance Budget Trends 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 $2,027,568 2022 $2,053,922 2023 $2,090,021 2024 $2,465,300 Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset inventory. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.1 shows the forecast operations and maintenance costs. Page 38 o 42 $ 3,000,000 $2,500,000 $2,000,000 z V $1,500,000 C CL $1,000,000 LU $500,000 - $0 Figure 6.1: Operations and Maintenance Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. The operations and maintenance costs are forecasted to increase over the next 10 years in line with the additional and expanded assets planned to be built. 6.2 Renewal Plan Renewal is typically carried out through major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Table 6.2.1: Renewal Activities 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 To be provided in future version of AM Plan 2022 To be provided in future version of AM Plan 2023 To be provided in future version of AM Plan 2024 $44,633 Assets requiring renewal are identified from one of two approaches in the Lifecycle Model. ■ The first method uses Asset Register data to project the renewal costs (current replacement cost) and renewal timing, or ■ The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). Page 39 o 42 The useful lives of assets used to develop projected asset renewal forecasts are shown in Table 6.2.2. Table 6.2.2: Useful Lives of Assets Statues 100 Art/Artifacts 100 Stone Walls 100 Reflection Stones 100 Memorial Trees 100 Memorial Benches 15 Burial Greens 10 Urn Tables 10 Columbarium 40 Horticultural Beds 100 Roadways & Parking Lots 30 Garbage Cans 10 Fountains 15 Wetland Gazebo 30 Wetland Bridge 30 Pond Bridge 30 Dedication Centre Pergola 30 Serbian Pergola 30 Trail Entrance Feature 30 Lowering Units 15 Ossuary/Scattering Gardens 100 Memorial Plaques 100 Fences 50 Gates 10 Bollards 10 Benches 15 The estimates for renewals in this AM Plan were based on the asset register data. 6.2.1 Renewal ranking criteria Asset renewals are typically undertaken to either: ■ Ensure the reliability of the existing infrastructure to deliver the expected service it was constructed to, or ■ To ensure the infrastructure is of sufficient quality to meet the service requirements. It is possible to prioritize renewals by identifying assets or asset groups that: ■ Have a high consequence of failure, ■ Have a condition score that is less than the threshold to provide an expected level of service ■ Have high use and subsequent impact on users would be significant, Page 40 o 42 ■ Have higher than expected operational or maintenance costs, and ■ Have potential to reduce life cycle costs by replacement with a modern equivalent asset that would provide the equivalent service. The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.2.1.1. Table 6.2.1.1: Renewal Priority Ranking Criteria Consequence of Failure • Financial Impact • Health & Safety Impact 50% • Service Delivery Impact • Environmental Impact Probability of Failure • Physical Condition Rating 50% • Performance Rating Total 100% 6.3 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset inventory increases, renewal schedules are delayed and/or budgets are reprioritized. The forecast of renewal costs is based on the available inventory data and feedback provided by the City. This analysis incorporates two separate renewal forecasting scenarios; the Unconstrained renewal forecast scenario (which replaces assets as needed at end of life) and the Maintain LOS renewal forecast scenario (which defers the replacement of certain assets in order to maintain the condition profile of assets over the course of the analysis period). However, for the purposes of this analysis, only one renewal forecast scenario (Unconstrained) was considered because it is necessary to maintain the current condition profile of cemetery assets. Additionally, based on feedback provided by the City, certain assets are funded through the operating budget and have been excluded from the renewal forecast. The forecast costs associated with renewals are shown in Figure 6.3. Figure 6.3: Forecast Renewal Costs $1.2 $1.0 c c $0.8 m $0.6 c G GL W $0.4 yE T d $0.2 $0.0 �RenewaI Need (Unconstra1ned) —10 -Yr Ave Annual NEED ($0.12 Wyr) (Unconstrained) —Whole of Llfecycle Ave Annual NEED ($0.33 M/yr) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Page 41 o 42 All figure values are shown in current year (2023) dollars. Table 6.3: Forecast Renewal Activities 2024 $44,633 $1,047,565 2025 $45,526 $7,205 2026 $46,437 $7,205 2027 $87,366 $7,205 2028 $89,113 $7,205 2029 $90,895 $7,205 2030 $92,713 $15,955 2031 $94,567 $7,205 2032 $53,161 $7,205 2033 $54,223 $17,205 Annual Average $69,864 $115,216 Assets with unknown condition (i.e. missing data on install date and staff reported condition) are forecasted using an average annual renewal amount (asset value / service life). For this reason, some of the renewal amounts in the chart above are consistent throughout the analysis period except certain assets which will need replacement at the end of their service life. 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. 6.4.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests; proposals identified by strategic plans or master plans; and partnerships with others. Potential upgrades and new works should be reviewed to verify that they are essential to the City's needs and fits long range planning. Proposed upgrades and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals by asset Leads can then be ranked by priority and available funds and scheduled in future works programs. Currently, no ranking criteria has been established for the acquisition of cemetery assets, however this will be developed in future revision of this AM Plan. The 2024 — 2033 Capital Plan contains two projects (Outdoor Columbarium and Additional Facilities/Expansion) which has been categorized as acquisition (growth) and will serve as a basis for the City's growth needs. Forecast acquisition asset costs are summarized in Figure 6.4. Page 42 o 42 Figure 6.4: Yearly Acquisition Summary $2,500,0( $2,000,000 N v $1,500,000 z 3 Q $1,000,000 C7 $500,000 $0 ® i 2024 2025 2026 2027 2028 202+3 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars When the City introduces new assets, there must be a recognition for the need for future operational funding for service, maintenance and renewal costs. Future depreciation must be accounted for when reviewing long term sustainability, lifecycle and total cost of ownership. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the asset steward. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 6.5. Figure 6.5: Cumulative Acquisition Summary $2,500,000 $2,000,000 6M 'W $1,500,000 m 3 o $1,000,000 t7 $ 500,000 $0 All figure values are shown in current year (2023) dollars. Page 43 o 42 Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The City plans for growth such that there is sufficient community infrastructure and facilities to meet the current and projected needs of the population. Acquiring these new assets will commit the funding of ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.6. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The 2024 — 2033 Capital Plan contains one project (Cemeteries — MTCE) which has been categorized as renewal and will serve as a basis for the City's renewal budget when calculating the renewal gap. The bars in the graphs represent the forecast costs needed to cost-effectively allocate the life cycle costs associated with the service provision. The Average Renewal Funding (red line) indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving balance between costs, levels of service and risk to achieve the best value outcome. Figure 6.6: Lifecycle Summary Renewal Need I Unconstra 1 nedl � Growth & Upgrade Need —10 -Yr Ave Annual FUNDING {$0.07 M/yr} $6.0 $5.0 �0&M Need —1G -Yr Ave Annual NEED (51).12 WVrrl (Unconstrained) $1.0 $0.0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Renewal Gap: $0.05M/year i The operating and maintenance needs covered by the Operating budget is required to increase annually as new assets are acquired. Though there is no current funding shortfall identified for acquisition needs, there is an average annual estimated gap of $0.05 million for renewal needs. 6.5 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Currently, the City has no cemetery assets which have been formally identified for decommissioning and disposal. 6.6 Non -Infrastructure Solutions Non -Infrastructure solutions are infrastructure related costs that may not be associated with any one specific asset in the City's asset registry but are important in the planning and execution of the previous asset lifecycle categories. Some of the non -infrastructure solutions can include the consultant costs in the creation of a master plan, working with partner organizations, customer surveys, restocking of maintenance vehicles, and inventory updates. Currently, the City has no formal non -infrastructure solutions relating to cemetery assets. Page 44 of3428 7.0 RISK MANAGEMENT PLAN The City of Kitchener is committed to identifying, assessing, and mitigating risks to ensure that corporate objectives are achieved. To this end, the City will maintain a long-term, robust Enterprise Risk Management strategy. Risk management is an integral part of management across the City. It forms part of strategic planning, business planning and project approval procedures. In addition, the policy assists in decision-making processes that will allocate resources to areas of highest risk. Identifying and managing risk is everyone's responsibility and is one component of good corporate governance'. 7.1 Critical Assets Critical assets are defined as those assets that provide life safety and public health and well-being to the community at large based on Provincial standards. Assets found in this category may be included for having a high consequence of failure causing significant loss or reduction of service directly impacting services to the community. Critical assets have been identified as having a consequence of failure rating of 4 or 5. Their typical failure mode, and the impact on service delivery, are summarized in Table 7.1. Failure modes may include physical failure, collapse or essential service interruption. Table 7.1 Critical Assets Lowering Units Physical Failure Interruption to burial services By identifying critical assets and failure modes the City can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted to minimize risks. 7.2 Risk Assessment The City of Kitchener has adopted an impact criteria and risk category matrix that quantifies the impact and likelihood criteria and assigns a numerical value to the resulting score. All City risk registers will use this terminology to ensure consistency in understanding across the City's assets. The risk registrar is an assessment process that identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, and development of a risk rating and evaluation of the risk. The City will develop a risk treatment plan for non -acceptable risks as part of future improvement. An assessment of risks associated with service delivery identifies risks that will result in loss or reduction in service, personal injury, environmental impacts, a 'financial shock', reputational impacts, or other consequences. Consequence of failure is determined based on the average rating across the consequence categories in the following matrix: ' City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 45 o 42 Table 7.2 Consequence of Failure Rating Scale Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. The residual risk and mitigation costs of implementing the selected treatment plan is shown in Table 7.4. Page 46 o 42 Damages, losses, Damages, losses, Damages, losses, or Damages, losses, or Damages, losses, or Economic Financial or fines of under or fines of $30,000 -fines of $120,000- fines of $500,000- fines of over $30,000 $120,000 $500,000 $1,000,000 $1,000,000 Potential for serious Potential for serious No obvious Potential for minor injury or affects to injury or affects to Potential for death or Health & potential for injury injury or affects to health of one or health of one or multiple deaths with Social Safety or affects to health of an more individuals with a possibility of more individuals probable permanent health. individual. short-term disability with a possibility of damage. or hospitalization. loss of a life. Small number of Significant localized Major or Critical City-wide or Critical customers Localized service disruption or impact service disruption or service disruption or experience disruption or or there will likely be impact, or there will impact, or there will Service o disruption or impact and minor moderate local likely be significant, likely be significant, Delivery impact and no or no media media exposure negative, local or negative, national or media exposure is exposure is which may last provincial media international media experienced. experienced. several days. exposure which may exposure lasting last several days. several days or weeks. Asset degradation/failure Asset Asset Asset Asset poses risk of degradation/failure degradation/failure degradation/failure degradation/failure environmental poses significant risk to has negligible has minor impact has significant short - contamination environment including Environmental Environment impact on to the environment term impact to the and/or has a major long-term environment, including potential environment significant long-term impact. Likely to result emissions, and for increased including a likely impact. Likely a in contamination. May pollution. emissions or increase of emissions substantial increase become of Provincial or pollution. or pollution. to emissions or Federal importance. pollution. Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. The residual risk and mitigation costs of implementing the selected treatment plan is shown in Table 7.4. Page 46 o 42 Table 7.4: Risks and Mitigation Plans Risk Rating 1 Risk Treatment Residual Risk 1 Treatment (VH, H) Plan Costs Poor asset condition Renewal work to Lowering resulting in the inability perform any Approximately Units to perform burial Very High necessary repairs Low $4,500 per year services on the assets Note * The residual risk is the risk remaining after the selected risk mitigation plan is implemented. 7.3 Infrastructure Resilience Approach The resilience of our infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to 'withstand a given level of stress or demand', and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership are key components to consistency. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 7.4 Service and Risk Trade -Offs The decisions made in balancing the costs and resource requirements for maintaining expected levels of service to addressing risk are based on the objective to achieve the optimum benefits from the available resources. 7.4.1 Potential Gaps There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.05 million per year) 7.4.2 Service trade-off If there is forecasted work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include: ■ If some of the planned maintenance is not completed, this typically results in more unplanned service disruptions. ■ Deferred capital renewal work may result in lower facility condition that does not meet user expectations and potential facility closures. 7.4.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. Page 47 of 428 8.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this AM Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 8.1 Financial Sustainability and Projections 8.1.1 Sustainability of service delivery Medium term —10 year financial planning period This AM Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the first 10 years of the planning period to identify any funding shortfall or surpluses. The forecasted operations, maintenance and renewal costs over the 10 year planning period is $2.59M on average per year. The proposed (budget) operations, maintenance and renewal funding is $2.54M on average per year giving a 10 year funding shortfall of $0.05M per year. This indicates that 98% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the proposed budget. Note, these calculations exclude acquired assets. 8.1.2 Forecast Costs (outlays) for the long-term financial plan Table 8.1.2 shows the forecast costs (outlays) required for consideration in the 10 year long-term financial plan. Providing services in a financially sustainable manner requires a balance between the forecast outlays required to deliver the agreed service levels with the planned budget allocations in the long-term financial plan. A gap between the forecast outlays and the amounts allocated in the financial plan indicates further work is required on reviewing service levels in the AM Plan (including possibly revising the long-term financial plan). We will manage the 'gap' by developing this AM Plan to provide guidance on future service levels and resources required to provide these services in consultation with the community. Forecast costs are shown in current year (2023) dollar values. Page 48 of #28 Table 8.1.2: Forecast Costs (Outlays) for the Long -Term Financial Plan 2024 $2,250,867 $2,465,300 $1,047,565 $0 2025 $0 $2,465,300 $7,205 $0 2026 $0 $2,465,300 $7,205 $0 2027 $0 $2,465,300 $7,205 $0 2028 $19,719 $2,468,588 $7,205 $0 2029 $60,340 $2,478,648 $7,205 $0 2030 $0 $2,478,648 $15,955 $0 2031 $0 $2,478,648 $7,205 $0 2032 $0 $2,478,648 $7,205 $0 2033 $0 $2,478,648 $17,205 $0 8.2 Funding Strategy The proposed funding for assets is outlined in the City's budget and Long -Term financial plan. The financial strategy of the City determines how funding will be provided, whereas the AM Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. 8.3 Valuation Forecasts 8.3.1 Asset valuations The best available estimate of the value of assets included in this AM Plan are shown below. The assets are valued by various methods based on available information. Replacement Cost (Current) $12.5 million 8.3.2 Valuation forecast Asset values are forecast to increase as additional assets are added. Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. 8.4 Key Assumptions Made in Financial Forecasts In compiling this AM Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions related to the financial forecasts made in this AM Plan are: Acquisition Forecast: o Growth projects are based on projects and associated costs identified in the City's Capital Plan. Page 49 of�428 Renewal forecast: o The potential impacts of climate change on state of good repair costs are not included. o The potential increases in lifecycle costs due to deferred renewal work are not included. o Any assets forecasted using an annuity (asset value / service life) or any assets that are funded through operating are assumed to be maintained in their current condition throughout the analysis period. Operations & Maintenance Forecast o The potential impacts of climate change on maintenance costs are not included. o The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition (growth) forecast. o Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan. 8.5 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale in accordance with Table 8.5.1. Table 8.5.1: Data Confidence Grading System A. Very High Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2% B. High Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Medium Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Low Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Very Low None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 8.5.2. Page 50 of 428 Table 8.5.2: Data Confidence Assessment for Data used in AM Plan Confidence Assessment �. . Demand Drivers High Population growth was updated in the City's 2022 Development Charges Study. Growth Projections & High Based on input from the City, all acquisition (growth) Acquisition Forecast projects in the Capital Plan have been captured in determining the City's acquisition (growth) needs. Operation & Medium Based on input from the City, all cost centres in the Maintenance Operating Budget have captured in determining the City's Forecast operating and maintenance needs, however the forecast does not quantity current shortfalls such as underfunding for planned maintenance. Renewal Forecast Asset values and estimated service lives are based on the High best available data and feedback provided by the City. Disposal forecast N/A Disposal strategy is to be developed in future iterations of the AM Plan. The overall estimated confidence level for the reliability of data used for the financial analysis in this AM Plan is considered to be High. Page 51 of 428 9.0 PLAN IMPROVEMENT AND MONITORING 9.1 Status of Asset Management Practices 9.1.1 Accounting and financial data sources This AM Plan does not include the depreciation valuation and therefore does not utilize the City's accounting data source (Tangible Capital Asset data set). 9.1.2 Asset management data sources This AM Plan utilizes asset management data. The source of the data is: • Non -Core Master List of Assets o List of assets included within each service area. 0 2023 current replacement values 0 Other asset attributes such as install year/date, asset ID, etc. • Condition assessments provided by City staff as of the end of 2023. • City of Kitchener 2024-2033 Capital Plan, including forecast of renewal, upgrade and growth projects 9.2 Improvement Plan It is vital in any AM Plan to recognize areas of future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this AM Plan is shown in Table 9.1. Table 9.1: Improvement Plan 1 City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. 2 City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. 3 City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, City to set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. Cemetery None Services Cemetery None Services Cemetery None Services 2024 —2025 2024 —2025 2024 —2025 Page 52 of 428 9.3 Conduct formal risk assessments to Cemetery Align with 2024-2025 prioritize preventative maintenance Services corporate risk activities, as well as renewal / capital management investments framework City to continue to develop and update 10- Cemetery None 2024 —2025 year forecast of lifecycle activities based on Services formalized/update levels of service, formal risk assessments and updated asset information (as applicable). Monitoring and Review Procedures This AM Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated at a maximum of every 5 years to meet the requirements of O.Reg. 588/17 and ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, acquisition and asset disposal costs and planned budgets. Page 53 of 428 10.0 REFERENCES United Nations, Managing Infrastructure Assets for Sustainable Development Kitchener Changing for Good, Our Climate Strategy Action Plan City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure City of Kitchener Cycling and Trails Master Plan 2020 City of Kitchener Places & Spaces — Parks Strategic Plan City of Kitchener Development Charges Study 2022 City of Kitchener Leisure Facilities Master Plan 2019 City of Kitchener Strategic Plan 2023-2026 City of Kitchener Official Plan 2014 Page 54 of 428 Forestry Services Asset Management Plan Current levels of Service I Document ID : 01 May 1", 2024 Final Draft Submission SLBC BW BW Page 56 of2428 Contents 1.0 EXECUTIVE SUMMARY 5 1.1 The Purpose of the Plan..........................................................................................................................5 1.2 Asset Description....................................................................................................................................5 1.3 Levels of Service......................................................................................................................................6 1.4 Future Demand.......................................................................................................................................6 1.5 Lifecycle Management Plan....................................................................................................................6 1.6 Financial Summary..................................................................................................................................7 1.7 Asset Management Planning Practices...................................................................................................8 1.8 Monitoring and Improvement Program.................................................................................................8 2.0 Introduction 9 2.1 Assets Included in this Plan.....................................................................................................................9 2.2 Provincial Asset Management Requirements.........................................................................................9 2.3 Asset Management at the City of Kitchener.........................................................................................10 3.0 STATE OF LOCAL INFRASTRUCTURE 15 3.1 Background Data..................................................................................................................................15 3.2 Asset Registry Completeness & Assumptions.......................................................................................18 4.0 LEVELS OF SERVICE 20 4.1 Customer Research and Expectations..................................................................................................22 4.2 Strategic and Corporate Goals..............................................................................................................22 4.3 Legislative Requirements......................................................................................................................22 4.4 Customer Values and Community Levels of Service.............................................................................23 4.5 Customer Levels of Service...................................................................................................................24 4.6 Technical Levels of Service....................................................................................................................25 5.0 FUTURE DEMAND 27 5.1 Demand Impact and Demand Management Plan................................................................................27 5.2 Asset Programs to meet Demand.........................................................................................................27 5.3 Climate Change Adaptation..................................................................................................................28 6.0 LIFECYCLE MANAGEMENT PLAN 29 6.1 Operations and Maintenance Plan.......................................................................................................29 6.2 Renewal Plan........................................................................................................................................30 6.3 Summary of future renewal costs.........................................................................................................31 6.4 Acquisition Plan....................................................................................................................................32 6.5 Disposal Plan.........................................................................................................................................35 Page 57 of3428 6.6 Non -Infrastructure Solutions................................................................................................................35 7.0 RISK MANAGEMENT PLAN 36 7.1 Critical Assets........................................................................................................................................36 7.2 Risk Assessment....................................................................................................................................36 7.3 Infrastructure Resilience Approach......................................................................................................38 7.4 Service and Risk Trade -Offs ..................................................................................................................38 8.0 8.1 8.2 8.3 8.4 8.5 FINANCIAL SUMMARY Financial Sustainability and Projections ................ Funding Strategy .................................................... Valuation Forecasts ............................................... Key Assumptions Made in Financial Forecasts...... Forecast Reliability and Confidence ....................... 9.0 PLAN IMPROVEMENT AND MONITORING 42 9.1 Status of Asset Management Practices................................................................................................42 9.2 Improvement Plan................................................................................................................................42 9.3 Monitoring and Review Procedures.....................................................................................................43 10.0 REFERENCES 44 Page 58 of 428 1.0 EXECUTIVE SUMMARY 1.1 The Purpose of the Plan This City of Kitchener Forestry Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to maintain current levels of service in a cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required over a 10 -year planning period. The AM Plan will link to a Long -Term Financial Plan which typically considers a 10 -year planning period. 1.2 Asset Description This plan covers the infrastructure assets that provide forestry services. The asset mix is comprised of Street Trees which have a replacement value of $126.8M and Park, Cemetery, Golf and Other Trees which have a replacement value of $41.1M. These replacement values include the cost to plant a tree (with 2 year warranty and 2 year watering program) as well as the cost to remove the existing tree. The infrastructure assets covered by this AM Plan are shown in Table 1.1. Table 1.1: Assets covered by this Plan Street Trees Trees $126,760,700 Park, Cemetery, Golf & Trees $41,057,050 Other Trees TOTAL $167,817,750 The above infrastructure assets have a replacement value estimated at $167.8 million with a breakdown of this value shown in Figure 1.1. Page 59 of 428 Figure 1.1: Asset Valuation 1.3 Levels of Service es '00 & Other Trees $41,057,050 24% The allocation in the planned budget is sufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. The main service consequences of the Planned Budget are: The number of work orders (both operations and maintenance) has seen an upward trend since 2021, however, this is seen as having a positive impact on service delivery. This highlights the City's effort to maintain their forestry assets effectively. The number of trees removed per year has seen a downward trend since 2021, however this is seen as having a neutral impact on service delivery. ■ Various metrics will continue to be monitored by the City in future iterations of the AM Plan. 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are created by: ■ Population growth These demands will be managed by planned lifecycle activities related to operations, maintenance, and renewal, as well a continuing to forecast and manage developer provided forestry assets. 1.5 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan includes operation, maintenance and renewal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10 -year total outlays, which for the forestry portfolio is estimated as $38.8 million or $3.88 million on average per year. Page 60 of 428 1.6 Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 year period is $39.1 million or $3.91 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 101% of the cost to sustain the current level of service at the lowest lifecycle cost. The infrastructure reality is that only what is funded in the long-term financial plan can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for forestry has a surplus of $0.03 million on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long -Term Financial Plan. This is shown in the figure below. Figure 1.2: Lifecycle Summary iiiiir Renewal Need {UnconstralnedI � Growth & Upgrade Need —10 -Yr Ave Annual FUNDING (S 1.15 M/yr) $ 9.0 �Q&M Need —10 -Yr Ave Annual NEED X51.12 M/yr} (Unconstrained) $4.0 $3.0 $2.0 $LD $0.0 2024 2025 2026 2027 2028 2029 2031) 2031 2032 2033 Figure Values are in current year (2023) dollars. We plan to provide forestry services for the following: Renewal Surplus: $0.03NM/year ■ Operation, maintenance, and renewal of forestry assets to meet service levels set by the City in annual budgets. ■ New and expanded assets are included in the next 10 year planning period based on projects listed in the 2024-2033 Capital Plan. 1.6.2 Infrastructure Gap We currently allocate enough budget to sustain these services at the proposed standard or to provide all new services being sought. However, there may be works and services that cannot be provided under present funding levels. 1.6.3 Managing the Risks Our present budget levels are sufficient to continue to manage risks in the medium term. The main risk consequences are: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. Page 61 of'428 ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. We will endeavor to manage these risks within available funding by: Continue to apply a risk-based approach to capital planning to focus available funding on critical projects. 1.7 Asset Management Planning Practices Assets requiring renewal are identified from the asset register method. ■ The timing of capital renewals based on the asset register is applied by adding the useful life to the year of acquisition or year of last renewal; Or An estimate of renewal lifecycle costs is projected from external condition and may be supplemented with, or based on, expert knowledge. This AM Plan is based on a high level of confidence information. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are: ■ City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. ■ City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. ■ City to continue to develop and update 10 -year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). ■ The City to confirm the timing of forestry asset inventory during the preparation of the AM planning process. Based on feedback from the City, it is possible that work to replace forestry assets in Very Poor condition has already been completed at the time of writing this AM Plan. Page 62 of 428 2.0 Introduction The City of Kitchener (the City) is in Waterloo Region, in the heart of southwestern Ontario. The City covers an area of 137 square kilometers and has a population of approximately 270,000; making it the largest City in the Region and the Grand River Watershed alike. The City has been designated as a growth area through the Provincial Growth Plan: Places to Grow, and has seen significant population growth that is expected to continue through the next decade. The City owns and maintains assets that provide a wide range of services between City departments and to its residents. This Asset Management Plan (AM Plan) will communicate the requirements for the sustainable delivery of services through efficient management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the planning period. The Plan has been prepared in accordance with Ontario Regulation 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation lays out the requirements for all AM Plans, as well as deadlines to meet to certain milestones. This iteration of the AM Plan meets requirements for Current Levels of Service. 2.1 Assets Included in this Plan This AM Plan covers non -facilities forestry assets for which the City is responsible for lifecycle management. Any facilities associated with forestry services have been covered in the Facilities AM Plan. The infrastructure assets included in this plan have a total replacement value of $167.8 million. Figure 2.1 — City of Kitchener Non -Core Forestry Asset Condition and Value Unknown/ Not Recorded $17,453,750 10% Good $100,625,800 Very Poor / Dead 60% $2,484,550 2% Poor Fair $8,713,200 $38,540,450 5% 23% 2.2 Provincial Asset Management Requirements The Province of Ontario requires all municipalities that seek provincial infrastructure funding have an asset management plan, or plans, in place. To encourage a similar approach across municipalities, in 2012 the province introduced Building Together: Guide for Municipal Asset Management Plans, which defined the key components of an effective asset management plan. More recently in 2017, the province approved O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation mandates the development of an asset management policy, asset management plans, and their content. Additionally, milestones are included for when municipalities must fulfill certain requirements, outlined below in Figure 2.2. Page 63 of 428 W Figure 2.2 - O.Reg 588/17 Milestones July Ist 2019 The City's first AM Policy was completed in 2012, and most recently Strategyupdated in 2024. The Policy outlines the goals and objectives of asset Policy OF' management within the Organization. At the City, Core AMPS prepared in accordance with O Reg 588/17 July Ist 2022 include Water, Wastewater, Stormwater, Roads & Traffic, Bridges & Core AM Ps Culverts, and Gas. These AMPS must document current Levels of Service and the cost to maintain them. Non core AMPS will include Facilities, Cemeteries, Parking, Parks, ©pen July Ist 2024 Spaces & Trails, Golf Forestry, Transportation and Fleet. These AMPS Non-core + must document current Levels of Service and the cost to maintain them. July 1st 2025 By this time, the City is required to have an approved AMP for all assets Proposed Levels that builds upon the 2022 and 2024 requirements. These AMPS must document proposed Levels of Service, what activities will be required to ' - strategy to fund them. dw Asset Management at the City of Kitchener The City of Kitchener has been practicing sound asset management planning for at least 15 years, starting with the introduction of Public Sector Accounting Board (PSAB) legislation. Since 2007, several efforts have resulted in well-established asset management programs and procedures, as well as the inclusion of a dedicated Asset Management Division in the City's corporate structure. Figure 2.3 below outlines some key milestones in the City's asset management journey. Kitchener City Council adopted the most recent Corporate Asset Management Strategy in 2016. The goals outlined in the strategy are to extend the useful life of all assets, in the most cost-effective way, while managing risk and meeting the agreed upon levels of service. The AM Plan is a key tactical (medium-term) planning document that relies on input from strategic planning activities and informs shorter -term decision making. The AM Plan provides a framework to validate the City's budgeting processes and assist in prioritizing work activities, including capital projects, based on risk. It discusses levels of service that also support goals in the 2023 to 2026 Strategic Plan and lifecycle management strategies intended to reduce the overall cost of asset ownership. Page 64 of 428 Figure 2.3 - City of Kitchener Asset Management Timeline 2007 200: 2010 2011 2012 2013 2017 Procurement Development Establishment Council Development Development Introduction of City's of Corporate of an asset approves the of two pilot of water, of O.Reg maintenance Asset management City's first AMPS sanitary and 588117 — Asset management Management program asset (pavement storm AMPS Management system, Strategy coordinator and management and the AUD) planning for CityWorks office policy Municipal Infrastructure 2.3.1 Corporate Asset Management System An asset management system should aim to achieve a line of sight between corporate strategic goals outlined in the strategic plan, and operational plans, policies and procedures, as illustrated in Figure 2.4. Two guiding documents in this system are the Asset Management Strategy and Asset Management Policy, most recently updated in 2016 and 2024, respectively. The Asset Management Policy defines the intent, scope and principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. Section 5.3 — Climate Change Impacts of this AM plan discusses these impacts specific to the City and strategies to build and maintain assets through the lens of resiliency, sustainability, adaptation, and mitigation. The Asset Management Strategy defines how the principles of the policy will be put into practice and the three guiding principles of asset management at the City of Kitchener which are to: 1 Balance asset condition and levels of service, 2 Allocate financial resources among priorities and, 3 Shift how we do business — such as introducing programs to support the requirement for high-quality data services. L`_ Figure 2.4 - City of Kitchener Asset Management System Operational OMM.Ealicie.% and Pr. In addition to the Asset Management Strategy and Policy, this AMP should be read in conjunction with other planning documents relevant to non-core assets, outlined in Table 2.1 below. Page 65 of 428 Table 2.1: Key Planning Documents D. I. 2023-2026 Corporate Strategic Plan The document outlines the strategic goals that are to be championed by Council and staff across the City. The Official Plan is a legal document that contains goals, objectives and policies to manage and direct physical and land use change and Official Plan (2014) their effects on the cultural, social, economic and natural environment within the City. This Plan provides a framework for decision-making and plays several essential roles in the future planning of the City. The AM strategy outlines the Asset Management program at the Corporate Asset Management City, the three guiding principles of where the program intends to go, Strategy (2016) and the value gained by forming consistent practices throughout the asset groups. Corporate Asset Management Policy The Asset Management Policy defines the intent, scope and (2024) (currently being updated) principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. The City's Corporate Climate Action Plan aims to achieve meaningful Kitchener, Changing for Good - and measurable carbon emission reductions throughout its Corporate Climate Action Plan (2019) operation, while also adapting to impacts resulting from climate change. Under Ontario Regulations 25/23, public sector agencies in Ontario Energy Conservation & Demand must report annual energy consumption and develop a five - year Management Plan (2019-2023) conservation and demand management plan intended to reduce energy consumption and greenhouse gas emissions. The DC Study includes preparing a development forecast, Development Charges Background establishing historical service levels, determining the increase in Study (2022) need for services arising from development and appropriate shares of costs and attribution to development types (residential and non- residential). Key stakeholders in the preparation and implementation of this AM Plan are shown in Table 2.2 Page 66 o 42 Table 2.2 - Key Stakeholders in the AM Plan 0 City Council are the overall owners of the City's assets. Council approves asset management policies and asset funding allocation through the City of Kitchener Elected Council annual corporate budget process. An overarching expectation of a standard of care is required by Council to ensure commitment to effective asset Management practices. The Leadership Team provides corporate oversight to the program to Corporate Leadership Team ensure that the goal and directions of the Corporate Asset Management program are maintained, and the program remains consistent with the overall Strategic Plan. This committee provides leadership and strategic direction for supporting systems/processes specific to the delivery of asset/work management information for the City of Kitchener. Further, in support of Asset Management Steering the city-wide asset management strategies, the committee provides Committee leadership and governance to the Asset Management Policy statement through the provision of information necessary for the long-range forecasts of asset investment needs, services levels, risks, costs and other performance measures. Community Services is a department of the City and is responsible for the Community Services operation and maintenance of community centres, swimming pools, arenas, sports facilities, as well as the Kitchener Fire Department stations. The Finance division within Financial Services prepares an annual operating budget and 10 -year capital forecast for Council's Finance consideration. The annual budget helps identify the spending plans and priorities for the City for the upcoming year and is informed by the City's Strategic Plan, various master plans, and feedback from the community. Page 67 o 42 2.3.2 Asset Management Plan Methodology The information presented in the AM Plan is based on O.Reg. 588/17 requirements, the Guide for Municipal Asset Management Plans, originally issued by the Ontario Ministry of Infrastructure, and leading asset management practices. Costs and replacement values in this AM Plan are estimated in 2023 dollars. The AM Plan was developed by SLBC Inc. in collaboration with City staff through: • Review of background materials available on the City's web site and provided by the City's project team including asset inventories, planning documents, and budgets • Workshops with internal stakeholders • Various interim meetings with the City's project team • Numerous data and information transfers • Review of interim outputs by the City's project team and other stakeholders, and incorporation of comments into the final AM Plan Page 68 o 42 3.0 STATE OF LOCAL INFRASTRUCTURE 3.1 Background Data 3.1.1 Asset inventory and valuation A mix of assets support the delivery of the City's forestry services. The assets covered by this AM Plan are shown in Table 3.1.1. All table and figure values are shown in 2023 dollars. The asset mix is comprised of Street Trees which have a replacement value of $126.8M and Park, Cemetery, Golf and Other Trees which have a replacement value of $41.1M. Please note that these replacement values include the cost to plant a tree (with 2 year warranty and 2 year watering program) as well as the cost to remove the existing tree. Table 3.1.1: Assets covered by this Plan Street Trees Trees $126,760,700 Park, Cemetery, Golf & Trees $41,057,050 Other Trees TOTAL $167,817,750 The asset valuation distribution for this AM Plan is shown in Figure 3.1.1 and the age profile of the assets included in this AM Plan are shown in Figure 3.1.2. Figure 3.1.1: Asset Valuation Park, Cemetery, Golf & Other Trees $41,057,050 24% Street Trees $126,760,700 76% Page 69 of 428 $6,000,000 $5,000.000 sa,000,000 3 �9 5 L $3,000,000 d u m a Cr Cr $2,000,000 $1,000,000 so 3.1.2 Asset hierarchy Figure 3.1.2: Asset Age Profile — _ . .l 1r� oLyory imp o+n-Nm mIn.. Ncam Iqnn-rn r�yya�m�jj Ln rp-��n�7mmm o e,n n 2 2 2 2 2 8 D5i a1 0N7 W mo 002 W om Dmf m m DN1 � Ds W Dl 4 L7 O 4 Install Year An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.1.2. Table 3.1.2: Asset Service Hierarchy Street Trees Trees create aesthetically pleasing environments for the residents of the Park, Cemetery, Golf & Other City. Trees 3.1.3 Asset capacity and performance Assets are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table 3.1.3. Table 3.1.3: Known Service Performance Deficiencies Diseased Trees Emerald ash borer causing premature death of Ash trees. Trees encroaching on Young trees requiring pruning and raising. public transportation The above service deficiencies were identified from the City of Kitchener Forestry AMP (2021) and workshop correspondence with the City of Kitchener. Page 70 o 42 3.1.4 Asset condition Assets can be inspected and monitored through various means. The City employs internal staff to perform inspections of City owned assets. The results of these inspection programs provide the City with meaningful empirical data that can be used to gauge the condition of assets and needs for asset maintenance or renewal. The cost for these condition assessments can be found in the Operational costs shown in section 6.1 of this AM Plan. Table 3.1.4: Condition Assessments No formal condition assessment program Condition is measured using a 1 — 5 grading system as detailed in Table 3.1.5. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level; however, for reporting in the AM Plan results are translated to a 1 — 5 grading scale for ease of communication. Table 3.1.5: Condition Grading System 1—Very Good free of defects, only planned and/or routine maintenance required 2—Good minor defects, increasing maintenance required plus planned maintenance 3 — Fair defects requiring regular and/or significant maintenance to reinstate service 4 — Poor significant defects, higher order cost intervention likely 5 — Very Poor physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.1.4. Page 71 of 428 Figure 3.1.4: Asset Condition Profile Unknown / Not Recorded $17,453,750 10°%a Good $100,625,800 Very Poor / Dead 60% $2,484,550 2% Poor Fair $8,713,200 $38,540,450 5% 23% All figure values are shown in current year (2023) dollars. The condition assessment of the City's forestry assets provides some perspective on the overall reliability of its infrastructure. Overall, approximately 83% of the City's forestry assets have a condition rating of fair or better. This highlights the City's commitment to maintaining these services. 3.2 Asset Registry Completeness & Assumptions In compiling this AM Plan, a thorough review of the asset registries is required. The purpose of this review to identify whether all asset categories under the leadership and stewardship of the responsible stakeholders are represented in a singular or combined asset registry. The review also looks to ensure that for those registries that do exist, fields that are critical to the assets' lifecycle and financial management are populated with accurate values. These values will provide that basis for meaningful asset management planning. The following categories have been employed to assess the completeness of asset registries: Table 3.2: Asset Registry Rating Categories Data based on sound records, procedures, investigations and analysis, documented Good properly but may have minor shortcomings. Dataset is complete and estimated to be accurate ± 10%. Data based on sound records, procedures, investigations and analysis which is incomplete Fair or unsupported, or extrapolated from a limited sample. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% Poor Dataset may not exist or be fully complete, and most data is estimated or extrapolated Page 72 o 42 Table 3.3: Asset Registry Assessment Street Trees Good Good Good Good Good N/A Good Park, Cemetery, Golf& Other Good Good Good Good Good N/A Good Trees Where asset registries are missing critical data or fields are found to be incomplete, there may be assumptions of the data that have to be made to complete this AM Plan. Page 73 o 42 4.0 LEVELS OF SERVICE In the State of Infrastructure Section, the value, age, and condition of the City's infrastructure assets were discussed. The Levels of Service (LOS) chapter builds on the State of Infrastructure by defining the performance the City's assets are intended to deliver over their service lives. LOS are statements that describe the outputs and objectives the City intends to deliver to its residents, businesses, and other stakeholders. In general, LOS are guided by a combination of customer expectations, legislative requirements, internal policies and procedures, and affordability. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, performance levels, and timeframes to achieve performance levels, such that the activities and costs to deliver the documented LOS can be determined. Figure 4.1 shows the LOS framework and line of sight from higher-level Corporate priorities to detailed asset - specific Technical LOS. Corporate commitments and legislated LOS guide the development of Community LOS. The Community LOS outline the services that the assets need to deliver to the City's residents and businesses. Community LOS can be categorized into one of the following service attributes: • Capacity & Use: Services have enough capacity and are available to customers • Function: Services meet customer needs while limiting health, safety, security, natural and heritage impacts • Quality & Reliability: Services are reliable and responsive to customers • Financial Sustainability: Services are affordable and provided at the lowest cost Community LOS are translated into Customer LOS, which measure services from a resident/business perspective, and Technical LOS that define asset performance levels. These LOS in turn define asset needs and drive the required lifecycle activities and associated funding to mitigate risks, as follows: • Capacity & Use LOS inform Acquisition needs • Function LOS inform Upgrade needs • Quality & Reliability LOS inform Renewal, Operations and Maintenance needs • Financial Sustainability LOS inform Funding needs This Line of Sight shows how the day-to-day management of City assets supports the achievement of higher- level strategic priorities. Page 74 o 42 a C 41 V C p Z7 3 D 6 w C 0 Lm•0 4D..`_ a#a o—xm .? 4.1 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the City of Kitchener. Future revisions of the AM Plan will incorporate customer consultation on service levels and costs of providing the service. This will assist Council and stakeholders in matching the level of service required, service risks and consequences with the customer's ability and willingness to pay for the service. At this time, there is no research on customer expectations. This will be investigated for future updates of the AM Plan. 4.2 Strategic and Corporate Goals This AM Plan is prepared under the direction of the Corporate Asset Management Strategy which is in alignment with the City of Kitchener's Strategic Plan (2023 — 2026). The City of Kitchener's Strategic Plan was developed with the consultation of residents, community organizations, businesses and councillors. Further to this, the AM Strategy supports the United Nations Sustainability Goals (SDGs) which outline the ways to achieve a better and more sustainable future for all. The City's mission is: "Proudly providing valued services for our community. Our promise to the community is that we'll deliver on the priorities that matter to them: people -friendly transportation, environmental leadership, a vibrant economy, a caring community and great customer service" Strategic goals have been set by the City of Kitchener. The relevant goals and objectives and how these are addressed in this AM Plan are summarised in Table 4.2. Table 4.2: Goals and how these are addressed in this Plan Objective How Goal and Objectives are addressed the AM Plan We follow a sustainable path to a greener, healthier city. We work The development and maintenance of the Cultivating a together to enhance and protect our City's Forestry assets is directly tied to Green City parks and natural environment while cultivating a green city. The presence of Together transitioning to a low -carbon future. greenery and various tree species helps to We support businesses and residents to preserve the natural ecosystem. make more climate -positive choices. 4.3 Legislative Requirements There are many legislative requirements relating to the management of assets. Some of the legislative requirements that impact the delivery of the services provided by the City's non-core forestry assets are outlined in Table 4.3. This AM Plan is prepared in accordance with O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, which lays out the requirements for Asset Management Plans prepared by municipalities across Ontario and milestones that all municipalities are required to meet. This AM Plan meets the July 1st, 2024, requirements and establishes a framework for meeting the July 1st, 2025, requirements. Please note that this list of legislative requirements is not exhaustive. Page 76 of 428 Table 4.3: Legislative Requirements Legislation Requirement Establishes strategic, long-term, sustainable plans to manage core and non-core capital infrastructure assets by 2024. The Regulation requires: • Municipal governments to adopt AM Plans for all infrastructure Ontario Regulation 588/17 assets including identifying levels of service and costs of maintaining services. • Municipal governments to set technical metrics and qualitative descriptions for each asset Objects of Trust 7 (d) to preserve, maintain, reconstruct, restore and Ontario Heritage Act, 1990 manage property of historical, architectural, archaeological, recreational, aesthetic, natural and scenic interest. This act is of specific relevance to the protection of heritage trees. The practice of professional forestry is the provision of services in relation to the development, management, conservation and Professional Foresters Act, 2000 sustainability of forests and urban forests where those services require knowledge, training and experience equivalent to that required to become a member under this Act. Conservation Land Act, 1990 2 (c) watershed protection and management. This act defines "areas of natural and scientific interest" and "wetland". The Minister may establish programs to protect, manage or establish woodlands and to encourage forestry that is consistent with good forestry practices. 2002, c. 17, Sched. C, s. 12 (2). 11 (1) The council of a Forestry Act, 1990 municipality may pass by-laws, (c) for planting and protecting trees on any land acquired for or declared to be required for forestry purposes. 2002, c. 17, Sched. C, s. 12 (3). 4.4 Customer Values and Community Levels of Service The LOS discussed in this AM Plan are focused on measures developed to support achievement of the City's higher level strategic priorities and key areas of investment. This AM Plan summarizes the performance on the measures based on the most current data available. The City will determine targets (proposed service levels) per O.Reg.588/17 requirements for Proposed LOS by 2025 and will align service levels with information in other planning documents when determining these targets. As discussed in Section 4.0, service levels are defined in three ways: community levels of service, customer levels of service and technical levels of service. Community LOS are qualitative statements categorized by service values and attributes. Service Values and attributes indicate what aspects of the service is important to the customer. Page 77 o 42 Table 4.4: Service Values and Community LOS In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 78 o 42 Is the service over or under used? Capacity/Use Do we need more or less of these assets? Ensure adequate infrastructure to Capacity & The service can be used/reached meet growing population and Use Available at convenient times community needs The service is broad enough that Scope it serves the entire population Services meet customer needs while limiting health, safety, Function security, natural and heritage Provide accessible infrastructure for impacts inclusion and meeting diverse The service is provided in a resident needs Functional Safety manner that protects users from harm Considers future impacts such as Protecting forestry assets helps build Resilience climate change that may put climate change resiliency and flood stress on the system. protection for local communities Provide infrastructure in acceptable condition and cleanliness by The standard to which the service Quality following and providing proper Quality & is provided maintenance standards and Reliability inspections Consistently good in quality or Maintain infrastructure proactively Reliable performance —works when minimize unexpected failures service users expect it to work How much does the service cost? Affordable Is it fair and is the service Financial provided worth this cost? Provide infrastructure management services in an efficient and cost- Sustainability Service is provided with effective manner Efficient maximum productivity and minimal wasted effort In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 78 o 42 Table 4.5: Customer Level of Service Measures Due to a lack of currently available data, the above levels of service metrics will be monitored by the City in future iterations of the AM Plan. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such as technology and customer priorities and lifestyle trends will change over time. Table 4.6 shows the activities expected to be provided under the current 10 year Planned Budget allocation, and the Forecast activity requirements being recommended in this AM Plan. Table 4.6 uses the same trend identifiers used in the previous section (4.5). Page 79 o 42 Provide accessible # of customer infrastructure for complaints Monitor Future Not Not Not Functional inclusion and meeting regarding tree Only Metric available available available diverse resident needs safety of assets in PoorMonitor Provide infrastructure in Not Not Not or Very Poor 7% acceptable condition and Only available available available condition Quality & cleanliness by following Number of trees Reliability and providing proper maintenance standards receiving Monitor Future Not Not Not preventative Only Metric available available available and inspections maintenance Due to a lack of currently available data, the above levels of service metrics will be monitored by the City in future iterations of the AM Plan. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such as technology and customer priorities and lifestyle trends will change over time. Table 4.6 shows the activities expected to be provided under the current 10 year Planned Budget allocation, and the Forecast activity requirements being recommended in this AM Plan. Table 4.6 uses the same trend identifiers used in the previous section (4.5). Page 79 o 42 Table 4.6: Technical Levels of Service The number of work orders (both operations and maintenance) has seen an upward trend since 2021, however, this is seen as having a positive impact on service delivery. This highlights the City's effort to maintain their forestry assets effectively. Additionally, the number of trees removed per year has seen a downward trend since 2021, however this is seen as having a neutral impact on service delivery. Lastly, due to a lack of currently available data, some of the levels of service metrics shown above will be monitored by the City in future iterations of the AM Plan. Page 80 o 42 %Tree canopy 30% by Ward cover (already (2050) Not Not Not Operations 27% (2019) reported back every 33% City-wide available available available 5 years) (2070) # of trees planted Upgrade per year (or # of net Monitor Only Future Not Not Not Metric available available available new trees planted) Ratio of scheduled to unscheduled/emerg Monitor Only Future Not Not Not Metric available available available ency maintenance work (by hours) # of work orders Oper: 245 Oper: 255 Oper: 93 Operations / completed Monitor Only Maint: 679 Maint: 603 Maint: 91 Maintenance Average time to remove a tree fully (using phased approach - remove Monitor Only Future Not Not Not Metric available available available canopy, remove stump, grind stump, replace) of diversity in the Future Not Not Not Operations Monitor Only tree canopy Metric available available available Number or tree inspections Monitor Only Future Not Not Not Metric available available available Maintenance completed each year # of trees removed Monitor Only48 IG 444 1816 per year The number of work orders (both operations and maintenance) has seen an upward trend since 2021, however, this is seen as having a positive impact on service delivery. This highlights the City's effort to maintain their forestry assets effectively. Additionally, the number of trees removed per year has seen a downward trend since 2021, however this is seen as having a neutral impact on service delivery. Lastly, due to a lack of currently available data, some of the levels of service metrics shown above will be monitored by the City in future iterations of the AM Plan. Page 80 o 42 5.0 FUTURE DEMAND 5.1 Demand Impact and Demand Management Plan Population growth and its geography can have major impacts on the scale of services delivered by the City and the assets that support service delivery. The City's approaches to accommodate growth needs are described in the Official Plan. The 2014 Official Plan provides policies for guiding and directing growth and development to enable the City's success of achieving the vision to be a complete and healthy community. This section focuses on the capital growth expenditures planned by the City to meet growing demands and manage the risks to the service levels. Growth also results in an increasing asset portfolio over the forecast period with associated impacts on the operating budget, discussed further in Section Error! Reference source not found. as part of the Lifecycle Strategy. The population of the City of Kitchener and surrounding areas has been rapidly growing over the past few decades and is expected to continue to grow at a similar pace in the coming years. The City monitors trends in its population to ensure that the associated impacts on service levels are well understood and that strategies are developed to manage risks related to the additional demands due to growth and changes in demographics. The 2014 Official Plan sets out the estimated population and employment forecasts to 2031. Updated forecasts are provided in the City's 2022 Development Charge Study, which forecasts that the City's population will increase from 250,247 in 2021 to 309,120 in 2036 (the current population (2023) is estimated at 270,000). Employment was estimated at 99,662 jobs in 2021, and is expected to reach 123,825 jobs by 2036. Demand drivers are circumstances that may impact future service delivery and use of assets. These drivers can include things such as population change, climate change, regulations, changes in demographics, seasonal factors, consumer preferences and expectations, technological changes, economic factors, environmental considerations, etc. The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.1. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices can include non -infrastructure solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 5.1. Further opportunities will be developed in future revisions of this AM Plan. Table 5.1: Demand Management Plan Population 270,000 (2023) 309,120 (2036)* As development in the Continue to forecast and Growth City grows, new forestry manage developer assets will be added to provided forestry assets. the City's portfolio. *2022 Development Charge Study 5.2 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 6.4. Acquiring new assets will commit the City of Kitchener to ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operations, maintenance and renewal costs for inclusion in the long-term financial plan (Refer to Section 8). Page 81 of2428 5.3 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets under management and the services they provide. In the context of the Asset Management Planning process, climate change can be considered as both a demand driver and a risk. The City of Kitchener's Corporate Climate Action Plan (CorCAP) is the City's guiding policy document on climate change in accord with the Region of Waterloo's "A Climate Action Plan for Waterloo Region". The City of Kitchener's mitigation and adaptation strategy for the Corporate Climate Action Plan is to lead by example with action on climate change to reduce corporate greenhouse gas emissions and promote inclusive environmental sustainability and resilience. This supports the City's corporate mission of 'proudly providing valued services for our community, and strategic goals of environmental leadership, by working to ensure we can safeguard the City's assets and stakeholders.' We must consider how to manage our existing assets given potential climate change impacts for our region of Ontario. Risk and opportunities identified to date are shown in Table 5.2 Table 5.2 Managing the Impact of Climate Change on Assets and Services Air Quality / Greenhouse Improving tree New forestry assets are Gas Emissions canopy cover needed to reach canopy cover targets. ' Kitchener Changing for Good, Our Climate Strategy Action Plan, Sec 1.1 Continue to forecast and manage both forestry assets provided by developers and those acquired by the City to meet these canopy cover targets. Page 82 o 42 6.0 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how the City of Kitchener plans to manage and operate the assets at the agreed levels of service (Refer to Section 4) while managing life cycle costs. 6.1 Operations and Maintenance Plan Operations include regular activities to provide services and may not have a direct impact to the overall health of the asset. Examples of typical operational activities include cleaning, asset inspection and supply of power. Maintenance includes all actions necessary for retaining an asset as near as practicable in an appropriate condition including regular ongoing day-to-day work necessary to keep assets operating. As well, maintenance activities strive to ensure that the asset's degradation follows the expected lifecycle rather than accelerating towards an earlier disposal or replacement cycle. Examples of typical maintenance activities include trimming and pruning. The trend in operations and maintenance budgets are shown in Table 6.1. Table 6.1: Operations & Maintenance Budget Trends Year Budget $ 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 $2,461,790 2022 $2,359,288 2023 $2,542,046 2024 $2,581,430 Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset inventory. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.1 shows the forecast operations and maintenance costs. Page 83 o 42 $3,500,000 $,3,000,000 $2,500,000 a m 2 $2,000,000 W z $1,500,000 a+ a x w $1,000,000 $500,000 $0 Figure 6.1: Operations and Maintenance Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. The operations and maintenance costs are forecasted to increase over the next 10 years in line with the additional and expanded assets planned to be built. 6.2 Renewal Plan Renewal is typically carried out through major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Table 6.2.1: Renewal Activities 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 To be provided in future version of AM Plan 2022 To be provided in future version of AM Plan 2023 To be provided in future version of AM Plan 2024 $1,418,445 Assets requiring renewal are identified from one of two approaches in the Lifecycle Model. ■ The first method uses Asset Register data to project the renewal costs (current replacement cost) and renewal timing, or ■ The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). Page 84 o 42 Forestry assets are somewhat unique in that they do not have well defined useful lives. As a proxy for useful life, the lifecycle activities have been determined using the reported conditions of the forestry assets provided by the City. 6.2.1 Renewal ranking criteria Asset renewals are typically undertaken to either: ■ Ensure the reliability of the existing infrastructure to deliver the expected service it was constructed to, or ■ To ensure the infrastructure is of sufficient quality to meet the service requirements. It is possible to prioritize renewals by identifying assets or asset groups that: ■ Have a high consequence of failure, ■ Have a condition score that is less than the threshold to provide an expected level of service ■ Have high use and subsequent impact on users would be significant, ■ Have higher than expected operational or maintenance costs, and ■ Have potential to reduce life cycle costs by replacement with a modern equivalent asset that would provide the equivalent service. The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.2.1.1. Table 6.2.1.1: Renewal Priority Ranking Criteria Consequence of Failure • Financial Impact • Health & Safety Impact 50% • Service Delivery Impact • Environmental Impact Probability of Failure • Physical Condition Rating 50% • Performance Rating Total 100% 6.3 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset inventory increases, renewal schedules are delayed and/or budgets are reprioritized. The forecast of renewal costs is based on the available inventory data and feedback provided by the City. This analysis incorporates two separate renewal forecasting scenarios; the Unconstrained renewal forecast scenario (which replaces assets as needed at end of life) and the Maintain LOS renewal forecast scenario (which defers the replacement of certain assets in order to maintain the condition profile of assets over the course of the analysis period). However, for the purposes of this analysis, only one renewal forecast scenario (Unconstrained) was considered because it is necessary to maintain the current condition profile of cemetery assets. The forecast costs associated with renewals are shown in Figure 6.3. Page 85 o 42 $4.00 $ 3.50 $3.00 $2.50 a R $2.00 a C x $1.50 m 3 $1.00 a c d $0.50 $0.00 Figure 6.3: Forecast Renewal Costs Renewal Need (Unconstrained) —10 -Yr Ave Annual NEED ($1.12 M/yrl (Unconstrained) IMMOMMOMME 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Table 6.3: Forecast Renewal Activities (Unconstrained) 2024 $1,418,445 $3,355,870 2025 $1,327,335 $871,320 2026 $1,307,375 $871,320 2027 $1,225,641 $871,320 2028 $1,042,155 $871,320 2029 $1,144,617 $871,320 2030 $1,045,398 $871,320 2031 $967,501 $871,320 2032 $1,015,469 $871,320 2033 $1,035,779 $871,320 Annual Average $1,152,972 $1,119,775 The forecast renewal needs for forestry assets was calculated by replacing all trees in Very Poor/ Dead condition in the first year of the analysis period (2024) and replacing all trees in Poor condition over the course of the analysis period (2024-2033). 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. Page 86 oV428 6.4.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests; proposals identified by strategic plans or master plans; and partnerships with others. Potential upgrades and new works should be reviewed to verify that they are essential to the City's needs and fits long range planning. Proposed upgrades and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals by asset Leads can then be ranked by priority and available funds and scheduled in future works programs. Currently, no ranking criteria has been established for the acquisition of forestry assets, however this will be developed in future revision of this AM Plan. Based on feedback provided by the City, forecasted growth of forestry assets is approximately 4,000 trees per year during the analysis period (3,000 trees per year from developer provided trees and 1,000 trees per year from City provided trees). This assumption will serve as a basis for the City's growth needs. Forecast acquisition asset costs are summarized in Figure 6.4. $3,000.aoo $2.500.000 g2,0a0,000 m d z � s1.50o.o0a 3 0 51.aao.o00 �soo,000 so Figure 6.4: Yearly Acquisition Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. When the City introduces new assets, there must be a recognition for the need for future operational funding for service, maintenance and renewal costs. Future depreciation must be accounted for when reviewing long term sustainability, lifecycle and total cost of ownership. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the asset steward. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 6.5. Page 87 o 42 Figure 6.5: Cumulative Acquisition Summary S30,000,000 $25,000,000 $20,000,000 N L $15,000,000 7 1.. $10,000,000 $5,400,400 MR S4 2024 2025 2026 2027 2028 2024 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The City plans for growth such that there is sufficient community infrastructure and facilities to meet the current and projected needs of the population. Acquiring these new assets will commit the funding of ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.3. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The 2024 — 2033 Capital Plan contains three projects (Tree Planting, Tree Stumping and Tree & Risk Inspections & Mitigation) which have been categorized as and will serve as a basis for the City's renewal budget when calculating the renewal gap. The bars in the graphs represent the forecast costs needed to cost-effectively allocate the life cycle costs associated with the service provision. The Average Renewal Funding (red line) indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving balance between costs, levels of service and risk to achieve the best value outcome. Page 88 o 42 Figure 6.3: Lifecycle Summary —Renewal Need(Unconstra fined) Growth & Upgrade Need —10 -Yr Ave Annual FUNDING 151.15 M/yr} $9.0 $8.0 $7.0 c $6.0 $5.0 v $4.0 u $3.0 w $2.0 $1.0 �0&M Need _10 -Yr Ave Annual NEED 151.12 M/yr} (Uncons Gained) 2024 2025 2026 2627 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Renewal Surplus: $0.03 M/year ■ The operating and maintenance needs covered by the Operating budget is required to increase annually as new assets are acquired. There is no current funding shortfall identified for acquisition needs and there is no average annual estimated gap for renewal needs (renewal is overfunded by $0.03M). 6.5 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Currently, the City has no forestry assets which have been formally identified for decommissioning and disposal. 6.6 Non -Infrastructure Solutions Non -Infrastructure solutions are infrastructure related costs that may not be associated with any one specific asset in the City's asset registry but are important in the planning and execution of the previous five asset lifecycle categories. Some of the non -infrastructure solutions can include the consultant costs in the creation of a master plan, working with partner organizations, customer surveys, restocking of maintenance vehicles, and inventory updates. Currently, the City has no formal non -infrastructure solutions relating to forestry assets. Page 89 o 42 7.0 RISK MANAGEMENT PLAN The City of Kitchener is committed to identifying, assessing, and mitigating risks to ensure that corporate objectives are achieved. To this end, the City will maintain a long-term, robust Enterprise Risk Management strategy. Risk management is an integral part of management across the City. It forms part of strategic planning, business planning and project approval procedures. In addition, the policy assists in decision-making processes that will allocate resources to areas of highest risk. Identifying and managing risk is everyone's responsibility and is one component of good corporate governance'. 7.1 Critical Assets Critical assets are defined as those assets that provide life safety and public health and well-being to the community at large based on Provincial standards. Assets found in this category may be included for having a high consequence of failure causing significant loss or reduction of service directly impacting services to the community. Critical assets have been identified as having a consequence of failure rating of 4 or 5. Their typical failure mode, and the impact on service delivery, are summarized in Table 7.1. Failure modes may include physical failure, collapse or essential service interruption. Table 7.1 Critical Assets Interruption to service Street and Park Trees Physical Failure delivery and potential harm or injury to the public By identifying critical assets and failure modes the City can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted to minimize risks. 7.2 Risk Assessment The City of Kitchener has adopted an impact criteria and risk category matrix that quantifies the impact and likelihood criteria and assigns a numerical value to the resulting score. All City risk registers will use this terminology to ensure consistency in understanding across the City's assets. The risk registrar is an assessment process that identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, and development of a risk rating and evaluation of the risk. The City will develop a risk treatment plan for non -acceptable risks as part of future improvement. An assessment of risks associated with service delivery identifies risks that will result in loss or reduction in service, personal injury, environmental impacts, a 'financial shock', reputational impacts, or other consequences. Consequence of failure is determined based on the average rating across the consequence categories in the following matrix: ' City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 90 o 42 Table 7.2 Consequence of Failure Rating Scale Damages, losses, Damages, losses, or Damages, losses, or Damages, losses, or Damages, losses, or Economic Financial or fines of under fines of $30,000- fines of $120,000- fines of $500,000- fines of over $30,000 $120,000 $500,000 $1,000,000 $1,000,000 Potential for serious Potential for serious No obvious Potential for minor injury or affects to injury or affects to Potential for death Health & potential for injury injury or affects to health of one or morehealth of one or or multiple deaths Social Safety or affects to health of an individuals with a possibility of short - more individuals with probable health. individual. term disability or with a possibility of permanent damage. hospitalization. loss of a life. Major or Critical City-wide or Critical Small number of Significant localized service disruption or service disruption or customers Localized service disruption or impactor impact, or there will impact, or there will Service experience disruption or impact there will likely be likely be significant, likely be significant, Delivery disruption or and minor or no moderate local media negative, local or negative, national or impact and no media exposure is international media media exposure is experienced. exposure which may provincial media exposure lasting experienced. last several days. exposure which may several days or last several days. weeks. Asset Asset degradation/failure degradation/failure Asset Asset Asset poses risk of poses significant risk degradation/failure degradation/failure has impact degradation/failure has environmental to environment has negligible minor to significant short-term contamination including a major Environmental Environment impact on the environment impact to the and/or has long-term impact. environment, including potential environment including significant long-term Likely to result in emissions, and for increased a likely increase of impact. Likely a contamination. May pollution. emissions or pollution. emissions or pollution. substantial increase become of Provincial to emissions or or Federal pollution. importance. Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. The residual risk and mitigation costs of implementing the selected treatment plan is shown in Table 7.4. Page 91 of3428 Table 7.4: Risks and Mitigation Plans Poor asset Forestry assets condition Remove existing in Very Poor or resulting High forestry assets Low Approximately potential harm and replace with $3,400,000 Dead Condition or injury to the new assets public Note * The residual risk is the risk remaining after the selected risk mitigation plan is implemented. 7.3 Infrastructure Resilience Approach The resilience of our infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to 'withstand a given level of stress or demand', and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership are key components to consistency. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 7.4 Service and Risk Trade -Offs The decisions made in balancing the costs and resource requirements for maintaining expected levels of service to addressing risk are based on the objective to achieve the optimum benefits from the available resources. 7.4.1 Potential Gaps There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work 7.4.2 Service trade-off If there is forecasted work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include: ■ If some of the planned maintenance is not completed, this typically results in more unplanned service disruptions. ■ Deferred capital renewal work may result in lower facility condition that does not meet user expectations and potential facility closures. 7.4.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include: ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. Page 92 o 42 8.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this AM Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 8.1 Financial Sustainability and Projections 8.1.1 Sustainability of service delivery Medium term —10 year financial planning period This AM Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the first 10 years of the planning period to identify any funding shortfall or surpluses. The forecasted operations, maintenance and renewal costs over the 10 year planning period is $3.88M on average per year. The proposed (budget) operations, maintenance and renewal funding is $3.91M on average per year giving a 10 year funding excess of $0.03M per year. This indicates that approximately 101% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the proposed budget. Note, these calculations exclude acquired assets. 8.1.2 Forecast Costs (outlays) for the long-term financial plan Table 8.1.2 shows the forecast costs (outlays) required for consideration in the 10 year long-term financial plan. Providing services in a financially sustainable manner requires a balance between the forecast outlays required to deliver the agreed service levels with the planned budget allocations in the long-term financial plan. Forecast costs are shown in current year (2023) dollar values. Table 8.1.2: Forecast Costs (Outlays) for the Long -Term Financial Plan 2024 $2,600,000 $2,581,430 $3,355,870 $0 2025 $2,600,000 $2,620,814 $871,320 $0 2026 $2,600,000 $2,660,198 $871,320 $0 2027 $2,600,000 $2,699,582 $871,320 $0 2028 $2,600,000 $2,738,966 $871,320 $0 2029 $2,600,000 $2,778,349 $871,320 $0 2030 $2,600,000 $2,817,733 $871,320 $0 2031 $2,600,000 $2,857,117 $871,320 $0 2032 $2,600,000 $2,896,501 $871,320 $0 2033 $2,600,000 $2,935,885 $871,320 $0 8.2 Funding Strategy The proposed funding for assets is outlined in the City's budget and Long -Term financial plan. Page 93 oV428 The financial strategy of the City determines how funding will be provided, whereas the AM Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. 8.3 Valuation Forecasts 8.3.1 Asset valuations The best available estimate of the value of assets included in this AM Plan are shown below. The assets are valued by various methods based on available information. Replacement Cost (Current) $167.8 million 8.3.2 Valuation forecast Asset values are forecast to increase as additional assets are added. Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. 8.4 Key Assumptions Made in Financial Forecasts In compiling this AM Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions related to the financial forecasts made in this AM Plan are: Acquisition Forecast: Renewal forecast: o Growth projects are based on projects and associated costs identified in the City's Capital Plan. o The potential impacts of climate change on state of good repair costs are not included. o The potential increases in lifecycle costs due to deferred renewal work are not included. Operations & Maintenance Forecast o The potential impacts of climate change on maintenance costs are not included. o The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition (growth) forecast. o Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan. 8.5 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale in accordance with Table 8.5.1. Page 94 of 428 Table 8.5.1: Data Confidence Grading System A. Very High Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2% B. High Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Medium Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Low Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Very Low None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 8.5.2. Table 8.5.2: Data Confidence Assessment for Data used in AM Plan �. Confidence Assessment Demand Drivers High Population growth was updated in the City's 2022 Development Charges Study. Growth Projections & High Based on input from the City, all acquisition (growth) Acquisition Forecast projects in the Capital Plan have been captured in determining the City's acquisition (growth) needs. Operation & Medium Based on input from the City, all cost centres in the Maintenance Operating Budget have captured in determining the City's Forecast operating and maintenance needs, however the forecast does not quantity current shortfalls such as underfunding for planned maintenance. Renewal Forecast High Asset values and estimated service lives are based on the best available data and feedback provided by the City. Disposal forecast N/A Disposal strategy is to be developed in future iterations of the AM Plan. The estimated confidence level for and reliability of data used for the financial analysis in this AM Plan is considered to be High. Page 95 of #28 9.0 PLAN IMPROVEMENT AND MONITORING 9.1 Status of Asset Management Practices 9.1.1 Accounting and financial data sources This AM Plan does not include the depreciation valuation and therefore does not utilize the City's accounting data source (Tangible Capital Asset data set). 9.1.2 Asset management data sources This AM Plan utilizes asset management data. The source of the data is: • Non -Core Master List of Assets o List of assets included within each service area. 0 2023 current replacement values 0 Other asset attributes such as install year/date, asset ID, etc. • Condition assessments provided by City staff as of the end of 2023. • City of Kitchener 2024-2033 Capital Plan, including forecast of renewal, upgrade and growth projects 9.2 Improvement Plan It is vital in any AM Plan to recognize areas of future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this AM Plan is shown in Table 9.1. Table 9.1: Improvement Plan 1 City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. 2 City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. 3 City to continue to develop and update 10 - year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). Forestry Services None Forestry Services None Forestry Services None 2024 —2025 2024 —2025 2024 —2025 Page 96 of�428 The City to confirm the timing of forestry Forestry Services None 2024-2025 asset inventory during the preparation of the AM planning process. Based on feedback from the City, it is possible that work to replace forestry assets in Very Poor condition has already been completed at the time of writing this AM Plan. 9.3 Monitoring and Review Procedures This AM Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated at a maximum of every 5 years to meet the requirements of O.Reg.588/17 and ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, acquisition and asset disposal costs and planned budgets. Page 97 of 428 10.0 REFERENCES ■ United Nations, Managing Infrastructure Assets for Sustainable Development ■ Kitchener Changing for Good, Our Climate Strategy Action Plan ■ City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 ■ O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure ■ City of Kitchener Forestry AM Plan 2021 ■ City of Kitchener Development Charges Study 2022 ■ City of Kitchener Strategic Plan 2023-2026 ■ City of Kitchener Official Plan 2014 Page 98 of 428 Golf Services Asset Management Plan Current levels of Service I Document ID : 01 May 1", 2024 Final Draft Submission SLBC BW BW Page 100 of2428 Contents 1.0 EXECUTIVE SUMMARY 5 1.1 The Purpose of the Plan..........................................................................................................................5 1.2 Asset Description....................................................................................................................................5 1.3 Levels of Service......................................................................................................................................6 1.4 Future Demand.......................................................................................................................................6 1.5 Lifecycle Management Plan....................................................................................................................6 1.6 Financial Summary..................................................................................................................................6 1.7 Asset Management Planning Practices...................................................................................................8 1.8 Monitoring and Improvement Program.................................................................................................8 2.0 INTRODUCTION 9 2.1 Assets Included in this Plan.....................................................................................................................9 2.2 Provincial Asset Management Requirements.........................................................................................9 2.3 Asset Management at the City of Kitchener.........................................................................................10 3.0 STATE OF LOCAL INFRASTRUCTURE 15 3.1 Background Data..................................................................................................................................15 3.2 Asset Registry Completeness & Assumptions.......................................................................................19 4.0 LEVELS OF SERVICE 21 4.1 Customer Research and Expectations..................................................................................................23 4.2 Strategic and Corporate Goals..............................................................................................................23 4.3 Legislative Requirements......................................................................................................................23 4.4 Customer Values and Community Levels of Service.............................................................................24 4.5 Customer Levels of Service...................................................................................................................25 4.6 Technical Levels of Service....................................................................................................................26 5.0 FUTURE DEMAND 28 5.1 Demand Impact and Demand Management Plan................................................................................28 5.2 Asset Programs to meet Demand.........................................................................................................28 5.3 Climate Change Adaptation..................................................................................................................28 6.0 LIFECYCLE MANAGEMENT PLAN 30 6.1 Operations and Maintenance Plan.......................................................................................................30 6.2 Renewal Plan........................................................................................................................................31 6.3 Summary of future renewal costs.........................................................................................................33 6.4 Acquisition Plan....................................................................................................................................34 6.5 Disposal Plan.........................................................................................................................................35 Page 101 oV428 6.6 Non -Infrastructure Solutions................................................................................................................35 7.0 RISK MANAGEMENT PLAN 36 7.1 Critical Assets........................................................................................................................................36 7.2 Risk Assessment....................................................................................................................................36 7.3 Infrastructure Resilience Approach......................................................................................................38 7.4 Service and Risk Trade -Offs ..................................................................................................................38 8.0 8.1 8.2 8.3 8.4 8.5 FINANCIAL SUMMARY Financial Sustainability and Projections ................ Funding Strategy .................................................... Valuation Forecasts ............................................... Key Assumptions Made in Financial Forecasts...... Forecast Reliability and Confidence ....................... 9.0 PLAN IMPROVEMENT AND MONITORING 44 9.1 Status of Asset Management Practices................................................................................................44 9.2 Improvement Plan................................................................................................................................44 9.3 Monitoring and Review Procedures.....................................................................................................45 10.0 REFERENCES 46 Page 102 of 428 1.0 EXECUTIVE SUMMARY 1.1 The Purpose of the Plan This City of Kitchener Golf Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to maintain current levels of service in a cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required over a 10 -year planning period. The AM Plan will link to a Long -Term Financial Plan which typically considers a 10 -year planning period. 1.2 Asset Description This plan covers the infrastructure assets that provide golf services. The largest portions of the asset base are Course Features with a replacement value of $15.7M and Course Infrastructure — Linear with a replacement value of $3.6M. These two categories of assets account for approximately 95% of the total replacement value of all golf assets. The infrastructure assets covered by this AM are shown in Table 1.1. Table 1.1: Assets covered by this Plan Course Infrastructure — Lighting, Bike Racks, Flag Poles, Benches, Water $121,800 Discrete Fountains, Garbage Cans Course Infrastructure — Irrigation Systems, Pedestrian Bridges $3,588,180 Linear Course Structures Entrance Features $13,000 Bunkers, Fairways, Greens, Rough, Practice Greens, Tee Complexes, Short Course Greens, Short Course Course Features $15,654,303 Tees (Synthetic), Practice Ranges (Synthetic), Practice Ranges (Natural) Course Features - Other Ball Washers, Yardage Stakes $30,991 Golf Carts Golf Carts (Gas), Golf Carts (Electric), Golf Carts $842,500 (Lithium) TOTAL $20,250,775 The above infrastructure assets have replacement value estimated at $20.3 million with a breakdown of this value shown in Figure 1.1. Page 103 of 428 Figure 1.1: Asset Valuation Course Features -Other $30,991 0.2% Course Structures $13,000 0.1% 1.3 Levels of Service The allocation in the planned budget is insufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. However, service levels and associated targets will continue to be formalized and monitored for future iterations of the AM Plan. 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are created by: ■ Population growth These demands will be approached using a combination of managing existing assets, upgrading existing assets and providing new assets to meet demand. ■ The City can consider the expansion or addition of golf assets to accommodate the increase in population. 1.5 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan includes operation, maintenance and renewal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10 -year total outlays, which for the golf services portfolio is estimated as $16.7 million or $1.67 million on average per year. 1.6 Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 year period is $16.2 million or 1.62 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 97% of the cost to sustain the current level of service at the lowest lifecycle cost. Page 104 of 428 Golf Carts $842,50D 4.2% Course Features $15,654,303 77.3% Course Infrastructure - Linear $3,588,180 17.7% Course Infrastructure - Discrete $121,800 0.6% Course Structures $13,000 0.1% 1.3 Levels of Service The allocation in the planned budget is insufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. However, service levels and associated targets will continue to be formalized and monitored for future iterations of the AM Plan. 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are created by: ■ Population growth These demands will be approached using a combination of managing existing assets, upgrading existing assets and providing new assets to meet demand. ■ The City can consider the expansion or addition of golf assets to accommodate the increase in population. 1.5 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan includes operation, maintenance and renewal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10 -year total outlays, which for the golf services portfolio is estimated as $16.7 million or $1.67 million on average per year. 1.6 Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 year period is $16.2 million or 1.62 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 97% of the cost to sustain the current level of service at the lowest lifecycle cost. Page 104 of 428 The infrastructure reality is that only what is funded in the long-term financial plan can be provided. The Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for golf leaves a shortfall of $0.05 million on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long -Term Financial Plan. This is shown in the figure below. $2.5 $2.0 Figure 1.2 Lifecycle Summary Renewal Need (unconsrramed) �0WA Need � Growth & Upgrade Need _10-YrAve Annual NEED 1$4.33 Mjyr) (Wncc trained) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Figure Values are in current year (2023) dollars. We plan to provide golf services for the following: Renewal Gap! $0.05M/year {Maintain LOS) ■ Operation, maintenance, renewal and acquisition of golf assets to meet service levels set by the City in annual budgets. ■ New and expanded assets are included in the next 10 year planning period based on projects listed in the 2024-2033 Capital Plan. 1.6.2 Infrastructure Gap We currently do not allocate enough budget to sustain these services at the proposed standard or to provide all new services being sought. Works and services that cannot be provided under present funding levels are: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.05 million per year) 1.6.3 Managing the Risks Our present budget levels are insufficient to continue to manage risks in the medium term. The main risk consequences are: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. We will endeavor to manage these risks within available funding by: ■ Continue to apply a risk-based approach to capital planning to focus available funding on critical projects. Page 105 of'428 ■ Pursue available grants from higher levels of government. 1.7 Asset Management Planning Practices Key assumptions made in this AM Plan are: ■ Golf Cart Bridges (quantity — 3) have been assumed to have a replacement value of approximately $100,000 each and the current condition has been determined based on the inspection reports provided. ■ Based on feedback provided by the City, it has been assumed that approximately one-third of the irrigation system at the Doon course was upgraded in 2010. The remaining irrigation systems at Doon and Rockway are assumed to be original (installed in 1970). Assets requiring renewal are identified from the asset register. ■ The timing of capital renewals based on the asset register is applied by adding the useful life to the year of acquisition or year of last renewal, An estimate of renewal lifecycle costs is projected from external condition and may be supplemented with, or based on, expert knowledge. This AM Plan is based on a high level of confidence information. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are: ■ City to complete the development of asset inventories with appropriate attributes for any additional assets to be included in future iterations of the AM Plan. For example, provide a breakdown of Irrigation System assets into the electrical/control components and mechanical components (piping and fittings). Based on feedback provided by the City, Irrigation Systems are the largest concern for Golf Services and this additional data will help to inform more effective lifecycle needs and financial strategies for these assets. ■ City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. ■ City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. ■ City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. ■ Conduct formal risk assessments to prioritize preventative maintenance activities, as well as renewal / capital investments. • City to continue to develop and update 10 -year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). Page 106 of 428 2.0 INTRODUCTION The City of Kitchener (the City) is in Waterloo Region, in the heart of southwestern Ontario. The City covers an area of 137 square kilometers and has a population of approximately 270,000; making it the largest City in the Region and the Grand River Watershed alike. The City has been designated as a growth area through the Provincial Growth Plan: Places to Grow, and has seen significant population growth that is expected to continue through the next decade. The City owns and maintains assets that provide a wide range of services between City departments and to its residents. This Asset Management Plan (AM Plan) will communicate the requirements for the sustainable delivery of services through efficient management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the planning period. The Plan has been prepared in accordance with Ontario Regulation 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation lays out the requirements for all AM Plans, as well as deadlines to meet to certain milestones. This iteration of the AM Plan meets requirements for Current Levels of Service. 2.1 Assets Included in this Plan This AM Plan covers non -facilities golf assets for which the City is responsible for lifecycle management. Any facilities associated with golf services have been covered in the Facilities AM Plan. The infrastructure assets included in this plan have a total replacement value of $20.3 million. Figure 2.1 — City of Kitchener Golf Assets Condition and Value Good $15,620,692 77.1% 2.2 Provincial Asset Management Requirements Fair $1,2109,478 6.0% Poor $5,400 0.0% Very Poor $2,935,005 14.5% Unknown $103,200 0.5% Very Good $377,000 1.9% The Province of Ontario requires all municipalities that seek provincial infrastructure funding have an asset management plan, or plans, in place. To encourage a similar approach across municipalities, in 2012 the province introduced Building Together: Guide for Municipal Asset Management Plans, which defined the key components of an effective asset management plan. More recently in 2017, the province approved O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation mandates the development of an asset management policy, asset management plans, and their content. Additionally, milestones are included for when municipalities must fulfill certain requirements, outlined below in Figure 2.2. Page 107 of 428 2.3 Figure 2.2 - O. Reg 588/17 Milestones July Ist Z019 The City's first AM Policy was completed in 2012, and most recently Strategy updated in 2024. The Policy outlines the goals and objectives of asset Policy management within the Organization. i July Ist 2022 • At the City Core AMPS prepared in accordance with O Reg 588/17 include Water, Wastewater, Stormwater, Roads & Traffic, Bridges & Core AMPs Culverts, and Gas. These AMPS must document current Levels of Service and the cost to maintain them. Non-core AMPS will include Facilities, Cemeteries, Parking, Parks, Open July Ist 2024 Non-core AMPs Spaces & Trails, Golf, Forestry, Transportation and Fleet. These AMPS must document current Levels of Service and the cost to maintain them. By this time, the City is required to have an approved AMP for all assets Proposed Levels that builds upon the 2022 and 2024 requirements. These AMPS must of Service document proposed Levels of Service, what activities will be required to meet them, and a strategy to fund them. Asset Management at the City of Kitchener The City of Kitchener has been practicing sound asset management planning for at least 15 years, starting with the introduction of Public Sector Accounting Board (PSAB) legislation. Since 2007, several efforts have resulted in well-established asset management programs and procedures, as well as the inclusion of a dedicated Asset Management Division in the City's corporate structure. Figure 2.3 below outlines some key milestones in the City's asset management journey. Kitchener City Council adopted the most recent Corporate Asset Management Strategy in 2016. The goals outlined in the strategy are to extend the useful life of all assets, in the most cost-effective way, while managing risk and meeting the agreed upon levels of service. The AM Plan is a key tactical (medium-term) planning document that relies on input from strategic planning activities and informs shorter -term decision making. The AM Plan provides a framework to validate the City's budgeting processes and assist in prioritizing work activities, including capital projects, based on risk. It discusses levels of service that also support goals in the 2023 to 2026 Strategic Plan and lifecycle management strategies intended to reduce the overall cost of asset ownership. Page 108 o 42 Figure 2.3 - City of Kitchener Asset Management Timeline 2007 2004 2010 2011 2012 2013 2017 Procurement Development Establishment Council Development Development Introduction of City's of Corporate of an asset approves the of two pilot of water, of O.Reg maintenance Asset management City's first AMPS sanitary and 588/17 - Asset management Management program asset (pavement storm AMPS Management Strategy system, coordinator and management and the AUD) planning for CityWorks office policy Municipal Infrastructure 2.3.1 Corporate Asset Management System An asset management system should aim to achieve a line of sight between corporate strategic goals outlined in the strategic plan, and operational plans, policies and procedures, as illustrated in Figure 2.4. Two guiding documents in this system are the Asset Management Strategy and Asset Management Policy, most recently updated in 2016 and 2024, respectively. The Asset Management Policy defines the intent, scope and principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. Section 5.3 — Climate Change Impacts of this AM plan discusses these impacts specific to the City and strategies to build and maintain assets through the lens of resiliency, sustainability, adaptation, and mitigation. The Asset Management Strategy defines how the principles of the policy will be put into practice and the three guiding principles of asset management at the City of Kitchener which are to: 1 Balance asset condition and levels of service, 2 Allocate financial resources among priorities and, 3 Shift how we do business — such as introducing programs to support the requirement for high-quality data services. Figure 2.4 - City of Kitchener Asset Management System Operational Pians, Policies, and In addition to the Asset Management Strategy and Policy, this AM Plan should be read in conjunction with other planning documents relevant to non-core assets, outlined in Table 2.1 below. Page 109 of 428 Table 2.1: Key Planning Documents D. I. 2023-2026 Corporate Strategic Plan The document outlines the strategic goals that are to be championed by Council and staff across the City. The Official Plan is a legal document that contains goals, objectives and policies to manage and direct physical and land use change and Official Plan (2014) their effects on the cultural, social, economic and natural environment within the City. This Plan provides a framework for decision-making and plays several essential roles in the future planning of the City. The AM strategy outlines the Asset Management program at the Corporate Asset Management City, the three guiding principles of where the program intends to go, Strategy (2016) and the value gained by forming consistent practices throughout the asset groups. Corporate Asset Management Policy The Asset Management Policy defines the intent, scope and (2024) (currently being updated) principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. The City's Corporate Climate Action Plan aims to achieve meaningful Kitchener, Changing for Good - and measurable carbon emission reductions throughout its Corporate Climate Action Plan (2019) operation, while also adapting to impacts resulting from climate change. Under Ontario Regulations 25/23, public sector agencies in Ontario Energy Conservation & Demand must report annual energy consumption and develop a five - year Management Plan (2019-2023) conservation and demand management plan intended to reduce energy consumption and greenhouse gas emissions. The DC Study includes preparing a development forecast, Development Charges Background establishing historical service levels, determining the increase in Study (2022) need for services arising from development and appropriate shares of costs and attribution to development types (residential and non- residential). Key stakeholders in the preparation and implementation of this AM Plan are shown in Table 2.2 Page 110o 428 Table 2.2 - Key Stakeholders in the AM Plan 0 City Council are the overall owners of the City's assets. Council approves asset management policies and asset funding allocation through the City of Kitchener Elected Council annual corporate budget process. An overarching expectation of a standard of care is required by Council to ensure commitment to effective asset Management practices. The Leadership Team provides corporate oversight to the program to Corporate Leadership Team ensure that the goal and directions of the Corporate Asset Management program are maintained, and the program remains consistent with the overall Strategic Plan. This committee provides leadership and strategic direction for supporting systems/processes specific to the delivery of asset/work management information for the City of Kitchener. Further, in support of Asset Management Steering the city-wide asset management strategies, the committee provides Committee leadership and governance to the Asset Management Policy statement through the provision of information necessary for the long-range forecasts of asset investment needs, services levels, risks, costs and other performance measures. Community Services is a department of the City and is responsible for the Community Services operation and maintenance of community centres, swimming pools, arenas, sports facilities, as well as the Kitchener Fire Department stations. The Finance division within Financial Services prepares an annual operating budget and 10 -year capital forecast for Council's Finance consideration. The annual budget helps identify the spending plans and priorities for the City for the upcoming year and is informed by the City's Strategic Plan, various master plans, and feedback from the community. Page 111 o 42 2.3.2 Asset Management Plan Methodology The information presented in the AM Plan is based on O.Reg. 588/17 requirements, the Guide for Municipal Asset Management Plans, originally issued by the Ontario Ministry of Infrastructure, and leading asset management practices. Costs and replacement values in this AM Plan are estimated in 2023 dollars. The AM Plan was developed by SLBC Inc. in collaboration with City staff through: • Review of background materials available on the City's web site and provided by the City's project team including asset inventories, planning documents, and budgets • Workshops with internal stakeholders • Various interim meetings with the City's project team • Numerous data and information transfers • Review of interim outputs by the City's project team and other stakeholders, and incorporation of comments into the final AM Plan Page 112o 428 3.0 STATE OF LOCAL INFRASTRUCTURE 3.1 Background Data 3.1.1 Asset inventory and valuation A mix of assets support the delivery of the City's golf services. The assets covered by this AM Plan are shown in Table 3.1.1. All table and figure values are shown in current year (2023) dollars. The largest portions of the asset mix are Course Features with a replacement value of $15.7M and Course Infrastructure — Linear with a replacement value of $3.6M. These two categories of assets account for approximately 95% of the total replacement value of all golf assets. Table 3.1.1: Assets covered by this Plan Course Infrastructure — Lighting, Bike Racks, Flag Poles, Benches, Water $121,800 Discrete Fountains, Garbage Cans Course Infrastructure — Irrigation Systems, Pedestrian Bridges $3,588,180 Linear Course Structures Entrance Features $13,000 Bunkers, Fairways, Greens, Rough, Practice Greens, Tee Complexes, Short Course Greens, Short Course Course Features $15,654,303 Tees (Synthetic), Practice Ranges (Synthetic), Practice Ranges (Natural) Course Features - Other Ball Washers, Yardage Stakes $30,991 Golf Carts Golf Carts (Gas), Golf Carts (Electric), Golf Carts $842,500 (Lithium) TOTAL $20,250,775 The asset valuation distribution for this AM Plan is shown in Figure 3.1.1 and the age profile of the assets included in this AM Plan are shown in Figure 3.1.2. Page 113o 428 Figure 3.1.1: Asset Valuation Course Features -Other $30,991 0.2% Golf Carts $842,50D 4.2% Course Features $15,654,303 77.3% Course Infrastructure - Linear $3,588,180 17.7% Course Infrastructure - Discrete $121,800 0.6% Course Structures $13,000 0.1% Page 114 of 428 Figure 3.1.2: Asset Age Profile Years 0 10 2r: 30 40 Bunkers Fairways Greens Rough Practice Greens Course Features Tee Complex - short Coune Greens Short Course Tees (iynthetic) Practice Ranges iSYnthetici Practice Ranges INaturali [sone Features -other Batl Wath. Yardage Stake Rik. R.&5 Loupe Intrastrueluro • Discrete Flag Poles ® _� Garbage Cans Course Infrastructure - Linear irrigatlon Systems Course Structures Entrance Features I� Gdf Carts (Guj 1 Golf Carts Golf carts JEkdritj Golf Carts fLiihium) Q 50 60 70 80 ■ Age Within Service life • Estimated service Life ■Age Beyond Service Litt Notes on the above Asset Age Profile: ■ Lighting, Benches and Water Fountains are not included because they are missing information on age and condition. ■ Bunkers have the highest age to service life ratio with average age of 76 years compared against an estimated service life of 7 years. ■ Fairways, Golf Carts and Irrigation Systems have also surpassed their estimated service lives and may warrant closer attention for investment in maintenance due to their age, depending on criticality. ■ Conversely, the remaining assets categorized as Course Features, Course Infrastructure — Discrete and Course Structures have a much lower age to service life ratio. 3.1.2 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.1.2. Page 115 of1428 Course Infrastructure & Structures Course Features Utilities Golf Carts 3.1.3 Asset capacity and performance Table 3.1.2: Asset Service Hierarchy Maintains the golf courses' infrastructure including lighting, benches and garbage cans. These assets ensure that the golf courses are accessible and comfortable for visitors and players. Allow the players and visitors to engage in golfing activities. These assets include bunkers, fairways and greens. Aids in maintaining the course infrastructure by supporting maintenance equipment and providing water for irrigation systems. Golf carts allow visitors and players a safe and effective means to access the course. Assets are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table 3.1.3. Table 3.1.3: Known Service Performance Deficiencies Course Infrastructure - This category has the highest proportion of assets in very poor condition and their Linear average age has surpassed their estimated service lives. There is a potential for deficiency in this category if left unaddressed. Golf Carts This category of assets has surpassed their estimated service lives, however according to the City all lithium and electric golf carts will be replaced by May 2024 (LOS Workshop — October 2, 2023). Doon Valley Golf Club It was identified in the City of Kitchener Places & Spaces — Parks Strategic Plan that Doon Valley Golf Club serves as a critical link between Kitchener and Cambridge with trail users and golf patrons sharing a portion of the pathway. It is critical to maintain this area of the pathway to maintain this link between municipalities. The above service deficiencies were identified from the Places & Spaces — Parks Strategic Plan and workshop correspondence with the City of Kitchener. 3.1.4 Asset condition Assets can be inspected and monitored through various means. The City employs both internal staff and contractors to perform inspections of City owned assets. The results of these inspection programs provide the City with meaningful empirical data that can be used to gauge the condition of assets and needs for asset maintenance or renewal. The cost for these condition assessments can be found in the Operational costs shown in section 6.1 of this AM Plan. Table 3.1.4: Condition Assessments No formal condition assessment program Condition is measured using a 1 — 5 grading system as detailed in Table 3.1.5. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system Page 116o 428 may be used at a more specific level; however, for reporting in the AM Plan results are translated to a 1— 5 grading scale for ease of communication. Table 3.1.5: Condition Grading System 1— Very Good free of defects, only planned and/or routine maintenance required 2 — Good minor defects, increasing maintenance required plus planned maintenance 3 — Fair defects requiring regular and/or significant maintenance to reinstate service 4 — Poor significant defects, higher order cost intervention likely 5 — Very Poor physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.1.4. Figure 3.1.4: Asset Condition Profile Good $15,620,692 77.1% Fair $1,209,478 6.0% All figure values are shown in current year (2023) dollars. Poor $5,400 0.0% Very Poor $2,935,005 14.'5% Unknown $103,200 0.5°x6 Very Good $377,000 1.9% The condition assessment of the City's golf assets provides some perspective on the overall reliability of its infrastructure. Overall, approximately 85% of the City's golf assets have a condition rating of fair or better. This highlights the City's commitment to maintaining these services. 3.2 Asset Registry Completeness & Assumptions In compiling this AM Plan, a thorough review of the asset registries was performed. The purpose of this review was to identify whether all asset categories under the leadership and stewardship of the responsible stakeholders are represented in a singular or combined asset registry. The review also looks to ensure that for those registries that do exist, fields that are critical to the assets' lifecycle and financial management are populated with accurate values. These values will provide the basis for meaningful asset management planning. Page 117o 428 The following categories have been employed to assess the completeness of asset registries: Table 3.2: Asset Registry Rating Categories �.Description Data based on sound records, procedures, investigations and analysis, documented Good properly but may have minor shortcomings. Dataset is complete and estimated to be accurate ± 10%. Data based on sound records, procedures, investigations and analysis which is incomplete Fair or unsupported, or extrapolated from a limited sample. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% Poor Dataset may not exist or be fully complete, and most data is estimated or extrapolated Table 3.3: Asset Registry Assessment Course Infrastructure— Good Good Good Good Good Good Good Discrete Course Infrastructure— Good Good Good Good Good Good Good Linear Course Poor Good Good Good Good Good Good Structures Course Features Good Good Good Good Good Good Good Course Features Good Good Good Good Good Good Good - Other Golf Carts Good Good Good Good Good Good Good Where asset registries are missing critical data or fields are found to be incomplete, there may be assumptions of the data that have to be made to complete this AM Plan. While these assumptions are listed below, they will be put into more context as needed through this AM Plan. ■ Golf Cart Bridges (quantity — 3) have been assumed to have a replacement value of approximately $100,000 each and the current condition has been determined based on the inspection reports provided. ■ Based on feedback provided by the City, it has been assumed that approximately one-third of the irrigation system at the Doon course was upgraded in 2010. The remaining irrigation systems at Doon and Rockway are assumed to be original (installed in 1970). Page 118o 428 4.0 LEVELS OF SERVICE In the State of Infrastructure Section, the value, age, and condition of the City's infrastructure assets were discussed. The Levels of Service (LOS) chapter builds on the State of Infrastructure by defining the performance the City's assets are intended to deliver over their service lives. LOS are statements that describe the outputs and objectives the City intends to deliver to its residents, businesses, and other stakeholders. In general, LOS are guided by a combination of customer expectations, legislative requirements, internal policies and procedures, and affordability. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, performance levels, and timeframes to achieve performance levels, such that the activities and costs to deliver the documented LOS can be determined. Figure 4.1 shows the LOS framework and line of sight from higher-level Corporate priorities to detailed asset - specific Technical LOS. Corporate commitments and legislated LOS guide the development of Community LOS. The Community LOS outline the services that the assets need to deliver to the City's residents and businesses. Community LOS can be categorized into one of the following service attributes: • Capacity & Use: Services have enough capacity and are available to customers • Function: Services meet customer needs while limiting health, safety, security, natural and heritage impacts • Quality & Reliability: Services are reliable and responsive to customers • Financial Sustainability: Services are affordable and provided at the lowest cost Community LOS are translated into Customer LOS, which measure services from a resident/business perspective, and Technical LOS that define asset performance levels. These LOS in turn define asset needs and drive the required lifecycle activities and associated funding to mitigate risks, as follows: • Capacity & Use LOS inform Acquisition needs • Function LOS inform Upgrade needs • Quality & Reliability LOS inform Renewal, Operations and Maintenance needs • Financial Sustainability LOS inform Funding needs This Line of Sight shows how the day-to-day management of City assets supports the achievement of higher- level strategic priorities. Page 1190 428 a C 41 V C p Z7 3 D 6 w C 0 Lm•0 4D..`_ a#a o—xm .? 4.1 4.2 4.3 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the City of Kitchener. Future revisions of the AM Plan will incorporate customer consultation on service levels and costs of providing the service. This will assist Council and stakeholders in matching the level of service required, service risks and consequences with the customer's ability and willingness to pay for the service. At this time, there is no research on customer expectations. This will be investigated for future updates of the AM Plan. Strategic and Corporate Goals This AM Plan is prepared under the direction of the Corporate Asset Management Strategy which is in alignment with the City of Kitchener's Strategic Plan (2023 — 2026). The City of Kitchener's Strategic Plan was developed with the consultation of residents, community organizations, businesses and councilors. Further to this, the AM Strategy supports the United Nations Sustainability Goals (SDGs) which outline the ways to achieve a better and more sustainable future for all. The City's mission is: "Proudly providing valued services for our community. Our promise to the community is that we'll deliver on the priorities that matter to them: people -friendly transportation, environmental leadership, a vibrant economy, a caring community and great customer service" Strategic goals have been set by the City of Kitchener. The relevant goals and objectives and how these are addressed in this AM Plan are summarised in Table 4.2. Table 4.2: Goals and how these are addressed in this Plan We live in all kinds of neighbourhoods and types of housing. We work Building a together to ensure that we each have Connected City secure and affordable homes. We get Together around easily, sustainably and safely to the places and spaces that matter most to us. By investing in golf assets, the City can maintain the infrastructure that residents use to get around the city. We follow a sustainable path to a greener, healthier city. We work Properly investing in and maintaining golf Cultivating a together to enhance and protect our assets can provide green spaces that can be Green City parks and natural environment while used for recreational activities. These spaces Together transitioning to a low -carbon future. also serve to enhance and protect the natural We support businesses and residents to environment of the City. make more climate -positive choices. Legislative Requirements There are many legislative requirements relating to the management of assets. Some of the legislative requirements that impact the delivery of the services provided by the City's non-core golf assets are outlined in Table 4.3. This AM Plan is prepared in accordance with O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, which lays out the requirements for Asset Management Plans prepared by municipalities across Ontario and milestones that all municipalities are required to meet. This AM Plan meets the July 1st, 2024, requirements and establishes a framework for meeting the July 1st, 2025, requirements. Please note that this list of legislative requirements is not exhaustive. Page 121 of 428 Table 4.3: Legislative Requirements Legislation Requirement Establishes strategic, long-term, sustainable plans to manage core and non-core capital infrastructure assets by 2024. The Regulation requires: • Municipal governments to adopt AM Plans for all infrastructure Ontario Regulation 588/17 assets including identifying levels of service and costs of maintaining services. • Municipal governments to set technical metrics and qualitative descriptions for each asset The Accessibility for Ontarians The purpose of the AODA is to develop, implement and enforce with Disabilities Act, 2005 (AODA) standards for accessibility related to goods, services, facilities, employment, accommodation and buildings. Technical Standards and Safety Facilities must comply with technical standards and safety regulations Act, 2000 depending on the industry or equipment they include, such as golf carts. 4.4 Customer Values and Community Levels of Service The LOS discussed in this AM Plan are focused on measures developed to support achievement of the City's higher level strategic priorities and key areas of investment. This AM Plan summarizes the performance on the measures based on the most current data available. The City will determine targets (proposed service levels) per O.Reg.588/17 requirements for Proposed LOS by 2025 and will align service levels with information in other planning documents when determining these targets. As discussed in Section 4.0, service levels are defined in three ways: community levels of service, customer levels of service and technical levels of service. Community LOS are qualitative statements categorized by service values and attributes. Service Values and attributes indicate what aspects of the service is important to the customer. Page 122 o 42 Capacity/Use Capacity & Use Available Scope Function Functional Safety Resilience Table 4.4: Service Values and Community LOS Is the service over or under used? Do we need more or less of these assets? The service can be used/reached at convenient times The service is broad enough that it serves the entire population Services meet customer needs while limiting health, safety, security, natural and heritage impacts The service is provided in a manner that protects users from harm Considers future impacts such as climate change that may put stress on the system. Ensure adequate infrastructure to meet growing population and community needs Provide accessible infrastructure for inclusion and meeting diverse resident needs Not available Provide infrastructure in acceptable In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 123 o 42 condition and cleanliness by The standard to which the service Quality following and providing proper Quality & is provided maintenance standards and Reliability inspections Consistently good in quality or Maintain infrastructure proactively Reliable performance -works when minimize unexpected failures service users expect it to work How much does the service cost? Affordable Is it fair and is the service Financial provided worth this cost? Provide infrastructure management services in an efficient and cost- Sustainability Service is provided with effective manner Efficient maximum productivity and minimal wasted effort In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 123 o 42 Table 4.5: Customer Level of Service Measures Monitor Ensure adequate # potential Capacity & infrastructure to meet members Use growing population on waiting list Not and community needs Not Provide infrastructure 62% in acceptable available available condition and % of assets within Quality & cleanliness by service life (by Reliability following and replacement providing proper value) maintenance standards and inspections Monitor Not Not Not Not Only available available available available Monitor Not Not Not 62% Only available available available Metrics which will continue to be monitored by the City in future iterations of the AM Plan include the number of potential members on waiting lists and the percentage of assets within service life. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such as technology and customer priorities and lifestyle trends will change over time. Table 4.6 shows the activities expected to be provided under the current 10 year Planned Budget allocation, and the Forecast activity requirements being recommended in this AM Plan. Table 4.6 uses the same trend identifiers used in the previous section (4.5). Page 124 o 42 Table 4.6: Technical Levels of Service Metrics which will continue to be monitored by the City in future iterations of the AM Plan include the number of round of golf played per year, rounds of golf play by demographic group per year, the number of "no shows" per year and the number of annual memberships per category. Page 125 of2428 Monitor Future Not Not Not Operations Rounds of golf played Only Metric available available available Rounds of golf played Monitor Future Not Not Not Operations by demographic group Only Metric available available available Monitor Future Not Not Not Operations Number of "No Shows" Only Metric available available available # of annual memberships Monitor Future Not Not Not Operations per category (junior, Only Metric available available available senior, etc.). Metrics which will continue to be monitored by the City in future iterations of the AM Plan include the number of round of golf played per year, rounds of golf play by demographic group per year, the number of "no shows" per year and the number of annual memberships per category. Page 125 of2428 5.0 FUTURE DEMAND 5.1 Demand Impact and Demand Management Plan Population growth and its geography can have major impacts on the scale of services delivered by the City and the assets that support service delivery. The City's approaches to accommodate growth needs are described in the Official Plan. The 2014 Official Plan provides policies for guiding and directing growth and development to enable the City's success of achieving the vision to be a complete and healthy community. This section focuses on the capital growth expenditures planned by the City to meet growing demands and manage the risks to the service levels. Growth also results in an increasing asset portfolio over the forecast period with associated impacts on the operating budget, discussed further in Section Error! Reference source not found. as part of the Lifecycle Strategy. The population of the City of Kitchener and surrounding areas has been rapidly growing over the past few decades and is expected to continue to grow at a similar pace in the coming years. The City monitors trends in its population to ensure that the associated impacts on service levels are well understood and that strategies are developed to manage risks related to the additional demands due to growth and changes in demographics. The 2014 Official Plan sets out the estimated population and employment forecasts to 2031. Updated forecasts are provided in the City's 2022 Development Charge Study, which forecasts that the City's population will increase from 250,247 in 2021 to 309,120 in 2036 (the current population (2023) is estimated at 270,000). Employment was estimated at 99,662 jobs in 2021, and is expected to reach 123,825 jobs by 2036. Demand drivers are circumstances that may impact future service delivery and use of assets. These drivers can include things such as population change, climate change, regulations, changes in demographics, seasonal factors, consumer preferences and expectations, technological changes, economic factors, environmental considerations, etc. The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.1. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices can include non -infrastructure solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 5.1. Further opportunities will be developed in future revisions of this AM Plan. Table 5.1: Demand Management Plan Population 270,000 (2023) 309,120 (2036)* There may be a The City can consider the Growth deficiency in the expansion or addition of availability of golf golf assets to services. accommodate the increase in population. *2022 Development Charges Study 5.2 Asset Programs to meet Demand As discussed in Section 6, the City has no planned growth or expansion of golf assets during the analysis period. 5.3 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets under management and the services they provide. In the context of the Asset Management Planning process, climate change can be considered as both a demand driver and a risk. The City of Kitchener's Corporate Climate Action Plan (CorCAP) is the City's guiding policy document on climate change in accord with the Region of Waterloo's "A Climate Action Plan for Waterloo Region". The City of Kitchener's mitigation and adaptation strategy for the Corporate Climate Action Plan is to lead by example with Page 126 o 42 action on climate change to reduce corporate greenhouse gas emissions and promote inclusive environmental sustainability and resilience. This supports the City's corporate mission of 'proudly providing valued services for our community, and strategic goals of environmental leadership, by working to ensure we can safeguard the City's assets and stakeholders.' Currently, the City does not have any risks or opportunities related to managing the impact of climate change on their golf assets or services. Additionally, the way in which we construct new assets should recognize that there is opportunity to build in resilience and adaptation to climate change impacts. Building Asset Resilience to Climate change for any facilities related to golf services have been covered in the Facilities AM Plan. ' Kitchener Changing for Good, Our Climate Strategy Action Plan, Sec 1.1 Page 127 o 42 6.0 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how the City of Kitchener plans to manage and operate the assets at the agreed levels of service (Refer to Section 4) while managing life cycle costs. 6.1 Operations and Maintenance Plan Operations include regular activities to provide services and may not have a direct impact to the overall health of the asset. Examples of typical operational activities include cleaning, asset inspection and supply of power. Maintenance includes all actions necessary for retaining an asset as near as practicable in an appropriate condition including regular ongoing day-to-day work necessary to keep assets operating. As well, maintenance activities strive to ensure that the asset's degradation follows the expected lifecycle rather than accelerating towards an earlier disposal or replacement cycle. Examples of typical maintenance activities include minor repairs. The trend in operations and maintenance budgets are shown in Table 6.1. Table 6.1: Operations & Maintenance Budget Trends Year Budget$ 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 $1,685,308 2022 $1,422,152 2023 $1,459,447 2024 $1,459,447 Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset inventory. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.1 shows the forecast operations and maintenance costs. Page 128 o 42 $11500100C. $1,400,000 $1,200,000 N a $1,000,000 dr 5 5800,000 c CL $600,000 X LU $400,000 $200,000 So Figure 6.1: Operations and Maintenance Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. The operations and maintenance costs are forecasted to remain constant over the next 10 years in line with the lack of additional and expanded assets planned to be built. 6.2 Renewal Plan Renewal is typically carried out through major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Table 6.2.1: Renewal Activities 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 To be provided in future version of AM Plan 2022 To be provided in future version of AM Plan 2023 To be provided in future version of AM Plan 2024 $145,333 Assets requiring renewal are identified from one of two approaches in the Lifecycle Model. ■ The first method uses Asset Register data to project the renewal costs (current replacement cost) and renewal timing, or ■ The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The useful lives of assets used to develop projected asset renewal forecasts are shown in Table 6.2.2. Page 129 o 42 Table 6.2.2: Useful Lives of Assets Irrigation Systems 20 Lighting 20 Bike Racks 10 Entrance Features 20 Flag Poles 20 Benches 10 Water Fountains 20 Golf Carts (Gas) 8 Golf Carts (Electric) 5 Golf Carts (Lithium) 8 Garbage Cans 10 Bunkers 7 Fairways 30 Greens 30 Rough 30 Practice Greens 30 Tee Complexes 20 Short Course Greens 30 Short Course Tees (Synthetic) 30 Practice Ranges (Synthetic) 30 Practice Ranges (Natural) 30 Ball Washers 15 Yardage Stakes 10 The estimates for renewals in this AM Plan were based on the asset register data. 6.2.1 Renewal ranking criteria Asset renewals are typically undertaken to either: ■ Ensure the reliability of the existing infrastructure to deliver the expected service it was constructed to, or ■ To ensure the infrastructure is of sufficient quality to meet the service requirements. It is possible to prioritize renewals by identifying assets or asset groups that: ■ Have a high consequence of failure, ■ Have a condition score that is less than the threshold to provide an expected level of service ■ Have high use and subsequent impact on users would be significant, ■ Have higher than expected operational or maintenance costs, and Page 130 o 42 ■ Have potential to reduce life cycle costs by replacement with a modern equivalent asset that would provide the equivalent service. The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.2.1.1. Table 6.2.1.1: Renewal Priority Ranking Criteria Consequence of Failure • Financial Impact • Health & Safety Impact 50% • Service Delivery Impact • Environmental Impact Probability of Failure • Physical Condition Rating 50% • Performance Rating Total 100% 6.3 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset inventory increases, renewal schedules are delayed and/or budgets are reprioritized. The forecast of renewal costs is based on the available inventory data and feedback provided by the City. This analysis incorporates two separate renewal forecasting scenarios; the Unconstrained renewal forecast scenario (which replaces assets as needed at end of life) and the Maintain LOS renewal forecast scenario (which defers the replacement of certain assets in order to maintain the condition profile of assets over the course of the analysis period). Additionally, based on feedback provided by the City, certain assets are funded through the operating budget and have been excluded from the renewal forecast. The forecast costs associated with renewals are shown in Figure 6.3. Figure 6.3: Forecast Renewal Costs .r Renewal Need (Unconstrained) —10 -Yr Ave Annual NEED ($0.33 M/yr) (Unconstrained) — — Whole of Lifecycle Ave Annual NEED ($0.84 M/yr) 10 -Yr Ave Annual NEED ($0.21 M/yr) (Maintain LOS) $0.9 $0.8 TS $0.4 d a Lu $0.3 m c $0.2 d $0.1 $0.0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Page 131 o 42 All figure values are shown in current year (2023) dollars. Table 6.3: Forecast Renewal Activities (Unconstrained) 2024 $145,323 $170,794 $538,840 2025 $153,189 $170,794 $170,794 2026 $155,093 $170,794 $334,460 2027 $157,035 $170,794 $170,794 2028 $163,015 $170,794 $177,544 2029 $168,036 $170,794 $610,194 2030 $173,096 $170,794 $563,635 2031 $175,198 $258,194 $170,794 2032 $176,558 $200,494 $205,894 2033 $177,946 $415,340 $343,460 Annual Average $164,449 $206,959 $328,541 Based on workshop input from the City, certain asset types are forecasted using an average annual renewal amount (asset value / service life) because they are repaired over the course of their useful life as opposed to being replaced in their entirety at end of life (i.e. Irrigation Systems). Additionally, assets with unknown condition (i.e. missing data on install date and staff reported condition) are forecasted using an average annual renewal amount as well. For this reason, some of the renewal amounts in the chart above are consistent throughout the analysis period except certain assets which will need replacement at the end of their service life. 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. 6.4.1 Selection criteria Based on workshop correspondence, the City has no planned growth or expansion of golf assets during the analysis period. Currently, no criteria has been established for the acquisition of upgraded golf assets; however this will be developed in future revision of this AM Plan. Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.4 These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The 2024 - 2033 Capital Plan contains two projects (boon - Course Improvements & Rockway- Course Improvements) which have been categorized as renewal. Additionally, the City funds a capital reserve for the replacement of golf carts and these projects will serve as a basis for the City's renewal budget when calculating the renewal gap. The bars in the graphs represent the forecast costs needed to cost-effectively allocate the life cycle costs associated with the service provision. The Average Renewal Funding (red line) indicates the estimate of Page 132 o 42 available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving balance between costs, levels of service and risk to achieve the best value outcome. $2.5 $2.0 Figure 6.4 Lifecycle Summary Renewal Need (vncanstralned) �Q&M Need Growth & upgrade Need —10 -yr Aye Annual NEED ($0.33 M/yr) (Unconstrained) $0.5 $0.0 2024 2025 2026 2027 2028 2029 2030 2031 3032 2033 All figure values are shown in current day dollars. Renewal Gap: $0.05M]year (Maintain LOS) l The operating and maintenance needs covered by the Operating budget is required to increase annually as new assets are acquired. Although there is no current funding shortfall identified for acquisition needs, there is an average annual estimated gap of $0.05 million for renewal needs. 6.5 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Currently, the City has no golf assets which have been formally identified for decommissioning and disposal. 6.6 Non -Infrastructure Solutions Non -Infrastructure solutions are infrastructure related costs that may not be associated with any one specific asset in the City's asset registry but are important in the planning and execution of the previous five asset lifecycle categories. Some of the non -infrastructure solutions can include the consultant costs in the creation of a master plan, working with partner organizations, customer surveys, restocking of maintenance vehicles, and inventory updates. Currently, the City has no formal non -infrastructure solutions relating to golf assets. Page 133 o 42 7.0 RISK MANAGEMENT PLAN The City of Kitchener is committed to identifying, assessing, and mitigating risks to ensure that corporate objectives are achieved. To this end, the City will maintain a long-term, robust Enterprise Risk Management strategy. Risk management is an integral part of management across the City. It forms part of strategic planning, business planning and project approval procedures. In addition, the policy assists in decision-making processes that will allocate resources to areas of highest risk. Identifying and managing risk is everyone's responsibility and is one component of good corporate governance'. 7.1 Critical Assets Critical assets are defined as those assets that provide life safety and public health and well-being to the community at large based on Provincial standards. Assets found in this category may be included for having a high consequence of failure causing significant loss or reduction of service directly impacting services to the community. Critical assets have been identified as having a consequence of failure rating of 4 or 5. Their typical failure mode, and the impact on service delivery, are summarized in Table 7.1. Failure modes may include physical failure, collapse or essential service interruption. Table 7.1 Critical Assets Pedestrian / Golf Cart Access to course will be Bridges Physical Failure limited By identifying critical assets and failure modes the City can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted to minimize risks. 7.2 Risk Assessment The City of Kitchener has adopted an impact criteria and risk category matrix that quantifies the impact and likelihood criteria and assigns a numerical value to the resulting score. All City risk registers will use this terminology to ensure consistency in understanding across the City's assets. The risk registrar is an assessment process that identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, and development of a risk rating and evaluation of the risk. The City will develop a risk treatment plan for non -acceptable risks as part of future improvement. An assessment of risks associated with service delivery identifies risks that will result in loss or reduction in service, personal injury, environmental impacts, a 'financial shock', reputational impacts, or other consequences. Consequence of failure is determined based on the average rating across the consequence categories in the following matrix: ' City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 134 o 42 Table 7.2 Consequence of Failure Rating Scale Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following table: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. The residual risk and mitigation costs of implementing the selected treatment plan is shown in Table 7.4. Page 135 of3428 Damages, losses, Damages, losses, Damages, losses, or Damages, losses, or Damages, losses, or Economic Financial or fines of under or fines of $30,000 -fines of $120,000- fines of $500,000- fines of over $30,000 $120,000 $500,000 $1,000,000 $1,000,000 Potential for serious Potential for serious No obvious Potential for minor injury or affects to injury or affects to Potential for death or Health & potential for injury injury or affects to health of one or health of one or multiple deaths with Social Safety or affects to health of an more individuals with a possibility of more individuals probable permanent health. individual. short-term disability with a possibility of damage. or hospitalization. loss of a life. Small number of Significant localized Major or Critical City-wide or Critical customers Localized service disruption or impact service disruption or service disruption or experience disruption or or there will likely be impact, or there will impact, or there will Service o disruption or impact and minor moderate local likely be significant, likely be significant, Delivery impact and no or no media media exposure negative, local or negative, national or media exposure is exposure is which may last provincial media international media experienced. experienced. several days. exposure which may exposure lasting last several days. several days or weeks. Asset degradation/failure Asset Asset Asset Asset poses risk of degradation/failure degradation/failure degradation/failure degradation/failure environmental poses significant risk to has negligible has minor impact has significant short - contamination environment including Environmental Environment impact on to the environment term impact to the and/or has a major long-term environment, including potential environment significant long-term impact. Likely to result emissions, and for increased including a likely impact. Likely a in contamination. May pollution. emissions or increase of emissions substantial increase become of Provincial or pollution. or pollution. to emissions or Federal importance. pollution. Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following table: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. The residual risk and mitigation costs of implementing the selected treatment plan is shown in Table 7.4. Page 135 of3428 Table 7.4: Risks and Mitigation Plans Poor asset condition resulting Renewal work to Irrigation in the deterioration perform any Approximately System of course features High necessary repairs Moderate $125,000 per due to lack of on the assets year irrigation Note * The residual risk is the risk remaining after the selected risk mitigation plan is implemented. 7.3 Infrastructure Resilience Approach The resilience of our infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to 'withstand a given level of stress or demand', and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership are key components to consistency. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 7.4 Service and Risk Trade -Offs The decisions made in balancing the costs and resource requirements for maintaining expected levels of service to addressing risk are based on the objective to achieve the optimum benefits from the available resources. 7.4.1 Potential Gaps There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.05 million per year) 7.4.2 Service trade-off If there is forecasted work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include: ■ If some of the planned maintenance is not completed, this typically results in more unplanned service disruptions. ■ Deferred capital renewal work may result in lower facility condition that does not meet user expectations and potential facility closures. 7.4.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. Page 136 o 42 These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. Page 137 o 42 8.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this AM Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 8.1 Financial Sustainability and Projections 8.1.1 Sustainability of service delivery Medium term —10 year financial planning period This AM Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the first 10 years of the planning period to identify any funding shortfall or surpluses. The forecasted operations, maintenance and renewal costs over the 10 year planning period is $1.67M on average per year. The proposed (budget) operations, maintenance and renewal funding is $1.62M on average per year giving a 10 year funding shortfall of $0.05M per year. This indicates that approximately 97% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the proposed budget. 8.1.2 Forecast Costs (outlays) for the long-term financial plan Table 8.1.2 shows the forecast costs (outlays) required for consideration in the 10 year long-term financial plan. Providing services in a financially sustainable manner requires a balance between the forecast outlays required to deliver the agreed service levels with the planned budget allocations in the long-term financial plan. A gap between the forecast outlays and the amounts allocated in the financial plan indicates further work is required on reviewing service levels in the AM Plan (including possibly revising the long-term financial plan). We will manage the 'gap' by developing this AM Plan to provide guidance on future service levels and resources required to provide these services in consultation with the community. Forecast costs are shown in current year (2023) dollar values. Page 138 of 428 Table 8.1.2: Forecast Costs (Outlays) for the Long -Term Financial Plan 2024 $0 $1,459,447 $170,794 $538,840 $0 2025 $0 $1,459,447 $170,794 $170,794 $0 2026 $0 $1,459,447 $170,794 $334,460 $0 2027 $0 $1,459,447 $170,794 $170,794 $0 2028 $0 $1,459,447 $170,794 $177,544 $0 2029 $0 $1,459,447 $170,794 $610,194 $0 2030 $0 $1,459,447 $170,794 $563,635 $0 2031 $0 $1,459,447 $258,194 $170,794 $0 2032 $0 $1,459,447 $200,494 $205,894 $0 2033 $0 $1,459,447 $415,340 $343,460 $0 8.2 Funding Strategy The proposed funding for assets is outlined in the City's budget and Long -Term financial plan. The financial strategy of the entity determines how funding will be provided, whereas the AM Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. 8.3 Valuation Forecasts 8.3.1 Asset valuations The best available estimate of the value of assets included in this AM Plan are shown below. The assets are valued by various methods based on available information. Replacement Cost (Current) $20.3 million 8.3.2 Valuation forecast Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. However, asset values and operations and maintenance needs are forecast to remain constant over the analysis period as the City does not have any planned growth or acquisition of assets. 8.4 Key Assumptions Made in Financial Forecasts In compiling this AM Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions related to the financial forecasts made in this AM Plan are: Acquisition Forecast: o Growth projects are based on projects and associated costs identified in the City's Capital Plan. Page 139 of #28 Renewal forecast: o The potential impacts of climate change on state of good repair costs are not included. o The potential increases in lifecycle costs due to deferred renewal work are not included. o Any assets forecasted using an annuity (asset value / service life) or any assets that are funded through operating are assumed to be maintained in their current condition throughout the analysis period. Operations & Maintenance Forecast o The potential impacts of climate change on maintenance costs are not included. o The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition (growth) forecast. o Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan. 8.5 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale in accordance with Table 8.5.1. Table 8.5.1: Data Confidence Grading System A. Very High Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2% B. High Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Medium Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Low Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Very Low None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 8.5.2. Page 140 of�428 Table 8.5.2: Data Confidence Assessment for Data used in AM Plan Demand Drivers High Population growth was updated in the City's 2022 Development Charges Study. Growth Projections & High Based on input from the City, all acquisition (growth) Acquisition Forecast projects in the Capital Plan have been captured in determining the City's acquisition (growth) needs. Operation & Medium Based on input from the City, all cost centres in the Maintenance Operating Budget have captured in determining the City's Forecast operating and maintenance needs, however the forecast does not quantity current shortfalls such as underfunding for planned maintenance. Renewal Forecast High Asset values and estimated service lives are based on the best available data and feedback provided by the City. Disposal forecast N/A Disposal strategy is to be developed in future iterations of the AM Plan. The estimated confidence level for and reliability of data used for the financial analysis in this AM Plan is considered to be High. Page 141 of 428 9.0 PLAN IMPROVEMENT AND MONITORING 9.1 Status of Asset Management Practices 9.1.1 Accounting and financial data sources This AM Plan does not include the depreciation valuation and therefore does not utilize the City's accounting data source (Tangible Capital Asset data set). 9.1.2 Asset management data sources This AM Plan utilizes asset management data. The source of the data is: • Non -Core Master List of Assets o List of assets included within each service area. 0 2023 current replacement values 0 Other asset attributes such as install year/date, asset ID, etc. • Condition assessments provided by City staff as of the end of 2023. • City of Kitchener 2024-2033 Capital Plan, including forecast of renewal, upgrade and growth projects 9.2 Improvement Plan It is vital in any AM Plan to recognize areas of future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this AM Plan is shown in Table 9.1. Table 9.1: Improvement Plan 1 City to complete the development of asset Golf Services None 2024-2025 inventories with appropriate attributes for any additional assets to be included in future iterations of the AM Plan. For example, provide a breakdown of Irrigation System assets into the electrical/control components and mechanical components (piping and fittings). Based on feedback provided by the City, Irrigation Systems are the largest concern for Golf Services and this additional data will help to inform more effective lifecycle needs and financial strategies for these assets. 2 City to formalize a condition assessment Golf Services None 2024-2025 program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. 3 City to monitor and update replacement Golf Services None 2024-2025 values of assets as they undertake renewal projects. Also, additional review of unit Page 142 of 428 costs is recommended in future updates of replacement value. 4 City to formalize levels of service and Golf Services None 2024-2025 monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. 5 Conduct formal risk assessments to Golf Services Align with 2024-2025 prioritize preventative maintenance corporate risk activities, as well as renewal / capital management investments framework 6 City to continue to develop and update 10- Golf Services None 2024-2025 year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). 9.3 Monitoring and Review Procedures This AM Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated at a maximum of every 5 years to meet the requirements of O.Reg.588/17 and ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, acquisition and asset disposal costs and planned budgets. Page 143 of 428 10.0 REFERENCES ■ United Nations, Managing Infrastructure Assets for Sustainable Development ■ Kitchener Changing for Good, Our Climate Strategy Action Plan ■ City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 ■ O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure ■ City of Kitchener Places & Spaces — Parks Strategic Plan ■ City of Kitchener Development Charges Study 2022 ■ City of Kitchener Strategic Plan 2023-2026 ■ City of Kitchener Official Plan 2014 Page 144 of 428 Parking Services Asset Management Plan Current levels of Service I Document ID : 01 May 1", 2024 Final Draft Submission SLBC BW BW Page 146 of2428 Contents 1.0 EXECUTIVE SUMMARY 5 1.1 The Purpose of the Plan..........................................................................................................................5 1.2 Asset Description....................................................................................................................................5 1.3 Levels of Service......................................................................................................................................6 1.4 Future Demand.......................................................................................................................................6 1.5 Lifecycle Management Plan....................................................................................................................6 1.6 Financial Summary..................................................................................................................................7 1.7 Asset Management Planning Practices...................................................................................................8 1.8 Monitoring and Improvement Program.................................................................................................8 2.0 INTRODUCTION 9 2.1 Assets Included in this Plan.....................................................................................................................9 2.2 Provincial Asset Management Requirements.........................................................................................9 2.3 Asset Management at the City of Kitchener.........................................................................................10 3.0 STATE OF LOCAL INFRASTRUCTURE 15 3.1 Background Data..................................................................................................................................15 3.2 Asset Registry Completeness & Assumptions.......................................................................................18 4.0 LEVELS OF SERVICE 20 4.1 Customer Research and Expectations..................................................................................................22 4.2 Strategic and Corporate Goals..............................................................................................................22 4.3 Legislative Requirements......................................................................................................................22 4.4 Customer Values and Community Levels of Service.............................................................................23 4.5 Customer Levels of Service...................................................................................................................24 4.6 Technical Levels of Service....................................................................................................................25 5.0 FUTURE DEMAND 27 5.1 Demand Impact and Demand Management Plan................................................................................27 5.2 Asset Programs to meet Demand.........................................................................................................27 5.3 Climate Change Adaptation..................................................................................................................27 6.0 LIFECYCLE MANAGEMENT PLAN 29 6.1 Operations and Maintenance Plan.......................................................................................................29 6.2 Renewal Plan........................................................................................................................................30 6.3 Summary of future renewal costs.........................................................................................................32 6.4 Acquisition Plan....................................................................................................................................33 6.5 Disposal Plan.........................................................................................................................................34 Page 147 oV428 6.6 Non -Infrastructure Solutions................................................................................................................34 7.0 RISK MANAGEMENT PLAN 35 7.1 Critical Assets........................................................................................................................................35 7.2 Risk Assessment....................................................................................................................................35 7.3 Infrastructure Resilience Approach......................................................................................................37 7.4 Service and Risk Trade -Offs ..................................................................................................................37 8.0 8.1 8.2 8.3 8.4 8.5 FINANCIAL SUMMARY Financial Sustainability and Projections ................ Funding Strategy .................................................... Valuation Forecasts ............................................... Key Assumptions Made in Financial Forecasts...... Forecast Reliability and Confidence ....................... 9.0 PLAN IMPROVEMENT AND MONITORING 41 9.1 Status of Asset Management Practices................................................................................................41 9.2 Improvement Plan................................................................................................................................41 9.3 Monitoring and Review Procedures.....................................................................................................42 10.0 REFERENCES 43 Page 148 of 428 1.0 EXECUTIVE SUMMARY 1.1 1.2 The Purpose of the Plan This City of Kitchener Parking Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to maintain current levels of service in a cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required over a 10 -year planning period. The AM Plan will link to a Long -Term Financial Plan which typically considers a 10 -year planning period. Asset Description This plan covers the infrastructure assets that provide parking services. The largest portion of the asset mix is Parking Lots — Above Ground with a replacement value of $3.5M. This category of assets accounts for approximately 88% of the total replacement value of all parking assets. Certain community parking infrastructure such as community center parking, fire hall parking, sports arena parking and parking at other city owned buildings have been included in the Facilities AM Plan and are excluded from this analysis. The infrastructure assets covered by this AM Plan are shown in Table 1.1. Table 1.1: Assets covered by this Plan Parking Lots—Above Surface Lots $3,455,342 Ground Parking Equipment Pay by Plate Units $200,000 EV Charging Stations EV Charging Stations $65,700 Parking Sundry & Miscellaneous Bike Racks, Light Standards $204,705 TOTAL $3,925,747 The above infrastructure assets have a replacement value estimated at $3.9 million with a breakdown of this value shown in Figure 1.1. Page 149 of 428 Figure 1.1: Asset Valuation Parking Equipment $200,000 5% 1.3 Levels of Service EV Charging Stations $65,700 2% Parking Sundry & Miscellaneous $204,705 5% The allocation in the planned budget is in sufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. However, service levels and associated targets will continue to be formalized and monitored for future iterations of the AM Plan 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are created by: ■ Population growth These demands will be approached using a combination of managing existing assets, upgrading existing assets and providing new assets to meet demand. Demand management practices may also include a combination of non -asset solutions, insuring against risks and managing failures. ■ The City can consider the expansion or addition of parking assets to accommodate the increase in population. 1.5 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan includes operation, maintenance and renewal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10 -year total outlays, which for the parking services portfolio is estimated as $19.7 million or $1.97 million on average per year. Page 150 of 428 1.6 Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 year period is $19.6 million or $1.96 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 99% of the cost to sustain the current level of service at the lowest lifecycle cost. The infrastructure reality is that only what is funded in the long-term financial plan can be provided. The Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for parking leaves a shortfall of $0.01 million on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long -Term Financial Plan. This is shown in the figure below. Figure 1.2: Lifecycle Summary i Renewal Need(Unco trained) —D&M Need i1 Gmw[h & UpgRde Need —10 -Yr Ave Annual NEED ($0.05 Nljyr) jUncows inedj —1PYr Ave Annual FUNDING ($0.05 Mjyr) $2.5 $2.0 $0.5 $0.0 2024 2025 2026 2027 2028 2029 2430 2031 2032 2033 Figure Values are in current year (2023) dollars. We plan to provide parking services for the following: Renewal Gap: $0.01M/year ■ Operation, maintenance, renewal and acquisition of parking assets to meet service levels set by the City in annual budgets. ■ New and expanded assets are included in the next 10 year planning period based on projects listed in the 2024-2033 Capital Plan. 1.6.2 Infrastructure Gap We currently allocate enough budget to sustain these services at the proposed standard or to provide all new services being sought. However, there may be works and services that cannot be provided under present funding levels: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work (0.01 million per year) 1.6.3 Managing the Risks Our present budget levels are insufficient to continue to manage risks in the medium term. Page 151 of'428 The main risk consequences are: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. We will endeavor to manage these risks within available funding by: Continue to apply a risk-based approach to capital planning to focus available funding on critical projects. ■ Pursue available grants from higher levels of government. 1.7 Asset Management Planning Practices Assets requiring renewal are identified from the asset register method. ■ The timing of capital renewals based on the asset register is applied by adding the useful life to the year of acquisition or year of last renewal; Or ■ Alternatively, an estimate of renewal lifecycle costs is projected from external condition and may be supplemented with, or based on, expert knowledge. This AM Plan is based on a high level of confidence information. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are: ■ City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. ■ City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. ■ City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. ■ Conduct formal risk assessments to prioritize preventative maintenance activities, as well as renewal / capital investments. ■ City to continue to develop and update 10 -year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). • Formalize governance between other City divisions for assets such as parking lots and EV charging stations. Page 152 of 428 2.0 INTRODUCTION The City of Kitchener (the City) is in Waterloo Region, in the heart of southwestern Ontario. The City covers an area of 137 square kilometers and has a population of approximately 270,000; making it the largest City in the Region and the Grand River Watershed alike. The City has been designated as a growth area through the Provincial Growth Plan: Places to Grow, and has seen significant population growth that is expected to continue through the next decade. The City owns and maintains assets that provide a wide range of services between City departments and to its residents. This Asset Management Plan (AM Plan) will communicate the requirements for the sustainable delivery of services through efficient management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the planning period. The Plan has been prepared in accordance with Ontario Regulation 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation lays out the requirements for all AM Plans, as well as deadlines to meet to certain milestones. This iteration of the AM Plan meets requirements for Current Levels of Service. 2.1 Assets Included in this Plan This AM Plan covers non -facilities parking assets for which the City is responsible for lifecycle management. Most of these assets are owned by the City, but some are owned by another organization. Any facilities associated with parking services have been covered in the Facilities AM Plan. Additionally, facility parking lots that have been assessed through building condition assessments are included in the Facilities AM Plan, but additional work is required to formalize the governance of these assets with other City divisions. The infrastructure assets included in this plan have a total replacement value of $3.9 million. Figure 2.1 — City of Kitchener Non -Core Parking Asset Condition and Value Fair $2,324,669 59% 2.2 Provincial Asset Management Requirements Good $1,125,674 29% Unknown $204,705 5% Very Good $265,700 7% The Province of Ontario requires all municipalities that seek provincial infrastructure funding have an asset management plan, or plans, in place. To encourage a similar approach across municipalities, in 2012 the province introduced Building Together: Guide for Municipal Asset Management Plans, which defined the key components of an effective asset management plan. Page 153 of 428 2.3 More recently in 2017, the province approved O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation mandates the development of an asset management policy, asset management plans, and their content. Additionally, milestones are included for when municipalities must fulfill certain requirements, outlined below in Figure 2.2. Figure 2.2 - O.Reg 588/17 Milestones July Ist 2019 The City's first AM Policy was completed in 2412, and most recently Strategyupdated in 2024. The Policy outlines the goals and objectives of asset Policy management within the Organization, OP At the City, Core AM Ps prepared in accordance with 0 Reg 588/17 July Ist 2022 include Water, Wastewater, Stormwater, Roads & Traffic, 'Bridges & Core AMPs Culverts, and Gas. These AMPS must document current Levels of Service and the cost to maintain them. July Ist 2024 Non-core AMPs will include Facilities, Cemeteries, Parking, Parks, open Spaces & Trails, Golf, Forestry, Transportation and Fleet. These AMPS Non-core AMPs must document current Levels of Service and the cost to maintain them. July 1st 2025 1 1 19 By this time, the City is required to have an approved AMP for all assets Proposed Levels that builds upon the 2022 and 2024 requirements. These AMPS must of document proposed Levels of Service, what activities will be required to 10 meet them, and a strategy to fund them. Asset Management at the City of Kitchener The City of Kitchener has been practicing sound asset management planning for at least 15 years, starting with the introduction of Public Sector Accounting Board (PSAB) legislation. Since 2007, several efforts have resulted in well-established asset management programs and procedures, as well as the inclusion of a dedicated Asset Management Division in the City's corporate structure. Figure 2.3 below outlines some key milestones in the City's asset management journey. Kitchener City Council adopted the most recent Corporate Asset Management Strategy in 2016. The goals outlined in the strategy are to extend the useful life of all assets, in the most cost-effective way, while managing risk and meeting the agreed upon levels of service. The AM Plan is a key tactical (medium-term) planning document that relies on input from strategic planning activities and informs shorter -term decision making. The AM Plan provides a framework to validate the City's budgeting processes and assist in prioritizing work activities, including capital projects, based on risk. It discusses levels of service that also support goals in the 2023 to 2026 Strategic Plan and lifecycle management strategies intended to reduce the overall cost of asset ownership. Page 154 o 42 Figure 2.3 - City of Kitchener Asset Management Timeline 2007 200: 2010 2011 2012 2013 2017 Procurement Development Establishment Council Development Development Introduction of City's of Corporate of an asset approves the of two pilot of water, of O.Reg maintenance Asset management City's first AMPS sanitary and 588117 — Asset management Management program asset (pavement storm AMPS Management system, Strategy coordinator and management and the AUD) planning for Cityworks office policy Municipal Infrastructure 2.3.1 Corporate Asset Management System An asset management system should aim to achieve a line of sight between corporate strategic goals outlined in the strategic plan, and operational plans, policies and procedures, as illustrated in Figure 2.4. Two guiding documents in this system are the Asset Management Strategy and Asset Management Policy, most recently updated in 2016 and 2024, respectively. The Asset Management Policy defines the intent, scope and principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. Section 5.3 — Climate Change Impacts of this AM plan discusses these impacts specific to the City and strategies to build and maintain assets through the lens of resiliency, sustainability, adaptation, and mitigation. The Asset Management Strategy defines how the principles of the policy will be put into practice and the three guiding principles of asset management at the City of Kitchener which are to: 1 Balance asset condition and levels of service, 2 Allocate financial resources among priorities and, 3 Shift how we do business — such as introducing programs to support the requirement for high-quality data services. Figure 2.4 - City of Kitchener Asset Management System In addition to the Asset Management Strategy and Policy, this AM Plan should be read in conjunction with other planning documents relevant to non-core assets, outlined in Table 2.1 below. Page 155 of 428 Table 2.1: Key Planning Documents D. I. 2023-2026 Corporate Strategic Plan The document outlines the strategic goals that are to be championed by Council and staff across the City. The Official Plan is a legal document that contains goals, objectives and policies to manage and direct physical and land use change and Official Plan (2014) their effects on the cultural, social, economic and natural environment within the City. This Plan provides a framework for decision-making and plays several essential roles in the future planning of the City. The AM strategy outlines the Asset Management program at the Corporate Asset Management City, the three guiding principles of where the program intends to go, Strategy (2016) and the value gained by forming consistent practices throughout the asset groups. Corporate Asset Management Policy The Asset Management Policy defines the intent, scope and (2024) (currently being updated) principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. The City's Corporate Climate Action Plan aims to achieve meaningful Kitchener, Changing for Good - and measurable carbon emission reductions throughout its Corporate Climate Action Plan (2019) operation, while also adapting to impacts resulting from climate change. Under Ontario Regulations 25/23, public sector agencies in Ontario Energy Conservation & Demand must report annual energy consumption and develop a five - year Management Plan (2019-2023) conservation and demand management plan intended to reduce energy consumption and greenhouse gas emissions. The DC Study includes preparing a development forecast, Development Charges Background establishing historical service levels, determining the increase in Study (2022) need for services arising from development and appropriate shares of costs and attribution to development types (residential and non- residential). Key stakeholders in the preparation and implementation of this AM Plan are shown in Table 2.2 Page 156 o 42 Table 2.2 - Key Stakeholders in the AM Plan 0 City Council are the overall owners of the City's assets. Council approves asset management policies and asset funding allocation through the City of Kitchener Elected Council annual corporate budget process. An overarching expectation of a standard of care is required by Council to ensure commitment to effective asset Management practices. The Leadership Team provides corporate oversight to the program to Corporate Leadership Team ensure that the goal and directions of the Corporate Asset Management program are maintained, and the program remains consistent with the overall Strategic Plan. This committee provides leadership and strategic direction for supporting systems/processes specific to the delivery of asset/work management information for the City of Kitchener. Further, in support of Asset Management Steering the city-wide asset management strategies, the committee provides Committee leadership and governance to the Asset Management Policy statement through the provision of information necessary for the long-range forecasts of asset investment needs, services levels, risks, costs and other performance measures. Community Services is a department of the City and is responsible for the Community Services operation and maintenance of community centres, swimming pools, arenas, sports facilities, as well as the Kitchener Fire Department stations. The Finance division within Financial Services prepares an annual operating budget and 10 -year capital forecast for Council's Finance consideration. The annual budget helps identify the spending plans and priorities for the City for the upcoming year and is informed by the City's Strategic Plan, various master plans, and feedback from the community. Page 157 o 42 2.3.2 Asset Management Plan Methodology The information presented in the AM Plan is based on O.Reg. 588/17 requirements, the Guide for Municipal Asset Management Plans, originally issued by the Ontario Ministry of Infrastructure, and leading asset management practices. Costs and replacement values in this AM Plan are estimated in 2023 dollars. The AM Plan was developed by SLBC Inc. in collaboration with City staff through: • Review of background materials available on the City's web site and provided by the City's project team including asset inventories, planning documents, and budgets • Workshops with internal stakeholders • Various interim meetings with the City's project team • Numerous data and information transfers • Review of interim outputs by the City's project team and other stakeholders, and incorporation of comments into the final AM Plan Page 158 o 42 3.0 STATE OF LOCAL INFRASTRUCTURE 3.1 Background Data 3.1.1 Asset inventory and valuation A mix of assets support the delivery of the City's parking services. The assets covered by this AM Plan are shown in Table 3.1.1. All table and figure values are shown in current day (2023) dollars. The largest portion of the asset mix is Parking Lots —Above Ground with a replacement value of $3.5M. This category of assets accounts for approximately 88% of the total replacement value of all parking assets. Please note that certain community parking infrastructure such as community center parking, fire hall parking, sports arena parking and parking at other city owned buildings have been included in the Facilities AM Plan and are excluded from this analysis. Table 3.1.1: Assets covered by this Plan Parking Lots—Above Surface Lots $3,455,342 Ground Parking Equipment Pay by Plate Units $200,000 EV Charging Stations EV Charging Stations $65,700 Parking Sundry & Miscellaneous Bike Racks, Light Standards $204,705 TOTAL $3,925,747 The asset valuation distribution for this AM Plan is shown in Figure 3.1.1 and the age profile of the assets included in this AM Plan are shown in Figure 3.1.2. Page 159 o 42 CV Charjilg 5tatior) 5 11.1y by P:'a[r l 111 l[5 o S -F.11 I It Figure 3.1.1: Asset Valuation Parking Equipment $200,000 5% Figure 3.1.2: Asset Age Profile Rgi� Wial i i i`,-V•i- i ifs' IsI""'('..d yvry—lifN '. Agr 1Svy—dSr rvir s'li Iv EV Charging Stations $65,700 2% Parking Sundry & Miscellaneous $204,705 5% 9 10 20 is 40 Yrdre Notes on the above Asset Age Profile: ■ Bike Racks and Light Standards are not included because they are missing information on age and condition. ■ EV Charging Stations, Pay by Plate Units and Surface lots have a low age to service life ratio. 3.1.2 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.1.2. Page 160 o 42 Table 3.1.2: Asset Service Hierarchy Parking lots provide safe, secure, and efficient parking solutions for Parking Lots residents, commuters, and visitors. Parking Equipment Pay by Plate parking systems give residents and visitors convenient access to parking. Parking Sundry &Miscellaneous Miscellaneous parking items help parking facilities operate more efficiently and effectively. 3.1.3 Asset capacity and performance Assets are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table 3.1.3. Table 3.1.3: Known Service Performance Deficiencies As noted in the Community Climate Adaptation Plan for Waterloo Region (2019), there are suggestions from the community to incorporate green infrastructure into parking lot designs to handle runoff as well as considerations for snow and ice removal to reduce salt use. These items can be considered when parking lot assets Parking Lots need replacement. Pay and Display parking systems are becoming obsolete with newer and more convenient parking systems. As noted in the workshop correspondence (LOS Workshop — October 6, 2023), the City will transition all surface lots to a Pay -by - Plate parking system by the 1" quarter of 2024. The above service deficiencies were identified from the Community Climate Adaptation Plan for Waterloo Region (2019) and workshop correspondence with the City of Kitchener. 3.1.4 Asset condition Assets can be inspected and monitored through various means. The City employs both internal staff and contractors to perform inspections of City owned assets. The results of these inspection programs provide the City with meaningful empirical data that can be used to gauge the condition of assets and needs for asset maintenance or renewal. The cost for these condition assessments can be found in the Operational costs shown in section 6.1 of this AM Plan. Table 3.1.4: Condition Assessments No formal condition assessment program Condition is measured using a 1 — 5 grading system as detailed in Table 3.1.5. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level; however, for reporting in the AM plan results are translated to a 1 — 5 grading scale for ease of communication. Page 161 of1428 3.2 Table 3.1.5: Condition Grading System 1— Very Good free of defects, only planned and/or routine maintenance required 2 — Good minor defects, increasing maintenance required plus planned maintenance 3 — Fair defects requiring regular and/or significant maintenance to reinstate service 4 — Poor significant defects, higher order cost intervention likely 5 — Very Poor physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.1.4. Figure 3.1.4: Asset Condition Profile Unknown $204,705 5% Very Good Fair $265,700 $2,329,669 7% 59% Good $1,125,674 29% All figure values are shown in current year (2023) dollars. The condition assessment of the City's assets provides some perspective on the overall reliability of its infrastructure. Overall, approximately 95% of the City's parking assets have a condition rating of fair or better (the remaining assets are in unknown condition). This highlights the City's commitment to maintaining these services. Asset Registry Completeness & Assumptions In compiling this AM Plan, a thorough review of the asset registries was performed. The purpose of this review was to identify whether all asset categories under the leadership and stewardship of the responsible stakeholders are represented in a singular or combined asset registry. The review also looks to ensure that for those registries that do exist, fields that are critical to the assets' lifecycle and financial management are populated with accurate values. These values will provide the basis for meaningful asset management planning. Page 162 o 42 The following categories have been employed to assess the completeness of asset registries: Table 3.2: Asset Registry Rating Categories Data based on sound records, procedures, investigations and analysis, documented Good properly but may have minor shortcomings. Dataset is complete and estimated to be accurate ± 10%. Data based on sound records, procedures, investigations and analysis which is incomplete Fair or unsupported, or extrapolated from a limited sample. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% Poor Dataset may not exist or be fully complete, and most data is estimated or extrapolated Table 3.3: Asset Registry Assessment Parking Lots— Good Good Good Good Good Good Good Above Ground Parking Good Good Good Good Good Good Good Equipment EV Charging Good Good Good Good Good Good Good Stations Parking Sundry Fair Good Good Poor Poor Good Good & Miscellaneous Where asset registries are missing critical data or fields are found to be incomplete, there may be assumptions of the data that have to be made to complete this AM Plan. Page 163 o 42 4.0 LEVELS OF SERVICE In the State of Infrastructure Section, the value, age, and condition of the City's infrastructure assets were discussed. The Levels of Service (LOS) chapter builds on the State of Infrastructure by defining the performance the City's assets are intended to deliver over their service lives. LOS are statements that describe the outputs and objectives the City intends to deliver to its residents, businesses, and other stakeholders. In general, LOS are guided by a combination of customer expectations, legislative requirements, internal policies and procedures, and affordability. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, performance levels, and timeframes to achieve performance levels, such that the activities and costs to deliver the documented LOS can be determined. Figure 4.1 shows the LOS framework and line of sight from higher-level Corporate priorities to detailed asset - specific Technical LOS. Corporate commitments and legislated LOS guide the development of Community LOS. The Community LOS outline the services that the assets need to deliver to the City's residents and businesses. Community LOS can be categorized into one of the following service attributes: • Capacity & Use: Services have enough capacity and are available to customers • Function: Services meet customer needs while limiting health, safety, security, natural and heritage impacts • Quality & Reliability: Services are reliable and responsive to customers • Financial Sustainability: Services are affordable and provided at the lowest cost Community LOS are translated into Customer LOS, which measure services from a resident/business perspective, and Technical LOS that define asset performance levels. These LOS in turn define asset needs and drive the required lifecycle activities and associated funding to mitigate risks, as follows: • Capacity & Use LOS inform Acquisition needs • Function LOS inform Upgrade needs • Quality & Reliability LOS inform Renewal, Operations and Maintenance needs • Financial Sustainability LOS inform Funding needs This Line of Sight shows how the day-to-day management of City assets supports the achievement of higher- level strategic priorities. Page 164 o 42 a C 41 V C p Z7 3 D 6 w C 0 Lm•0 4D..`_ a#a o—xm .? 4.1 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the City of Kitchener. Future revisions of the AM Plan will incorporate customer consultation on service levels and costs of providing the service. This will assist Council and stakeholders in matching the level of service required, service risks and consequences with the customer's ability and willingness to pay for the service. At this time, there is no research on customer expectations. This will be investigated for future updates of the AM Plan. 4.2 Strategic and Corporate Goals This AM Plan is prepared under the direction of the Corporate Asset Management Strategy which is in alignment with the City of Kitchener's Strategic Plan (2023 — 2026). The City of Kitchener's Strategic Plan was developed with the consultation of residents, community organizations, businesses and councilors. Further to this, the AM Strategy supports the United Nations Sustainability Goals (SDGs) which outline the ways to achieve a better and more sustainable future for all. The City's mission is: "Proudly providing valued services for our community. Our promise to the community is that we'll deliver on the priorities that matter to them: people -friendly transportation, environmental leadership, a vibrant economy, a caring community and great customer service" Strategic goals have been set by the City of Kitchener. The relevant goals and objectives and how these are addressed in this AM Plan are summarised in Table 4.2. Table 4.2: Goals and how these are addressed in this Plan We live in all kinds of neighbourhoods and types of housing. We work Building a together to ensure that we each have Parking infrastructure supports the City's Connected City secure and affordable homes. We get commitment to the growth and the viability Together around easily, sustainably and safely to of key businesses, while also reducing traffic the places and spaces that matter most congestion. to us. 4.3 Legislative Requirements There are many legislative requirements relating to the management of assets. Some of the legislative requirements that impact the delivery of the services provided by the City's non-core parking assets are outlined in Table 4.3. This AM Plan is prepared in accordance with O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, which lays out the requirements for Asset Management Plans prepared by municipalities across Ontario and milestones that all municipalities are required to meet. This AM Plan meets the July 1st, 2024, requirements and establishes a framework for meeting the July 1st, 2025, requirements. Please note that this list of legislative requirements is not exhaustive. Page 166 of 428 Table 4.3: Legislative Requirements Legislation Requirement Establishes strategic, long-term, sustainable plans to manage core and non-core capital infrastructure assets by 2024. The Regulation requires: • Municipal governments to adopt AM Plans for all infrastructure Ontario Regulation 588/17 assets including identifying levels of service and costs of maintaining services. • Municipal governments to set technical metrics and qualitative descriptions for each asset. The Accessibility for Ontarians The purpose of the AODA is to develop, implement and enforce with Disabilities Act, 2005 (AODA) standards for accessibility related to goods, services, facilities, employment, accommodation and buildings. Technical Standards and Safety Facilities must comply with technical standards and safety regulations Act, 2000 depending on the industry or equipment they include, such as charging stations. Fire Protection and Prevention Facilities, especially public spaces, must comply with fire safety Act, 1997 regulations. Ontario Building Code The Ontario Building Code has specific requirements facilities, such as parking garages. 4.4 Customer Values and Community Levels of Service The LOS discussed in this AM Plan are focused on measures developed to support achievement of the City's higher level strategic priorities and key areas of investment. This AM Plan summarizes the performance on the measures based on the most current data available. The City will determine targets (proposed service levels) per O.Reg.588/17 requirements for Proposed LOS by 2025 and will align service levels with information in other planning documents when determining these targets. As discussed in Section 4.0, service levels are defined in three ways: community levels of service, customer levels of service and technical levels of service. Community LOS are qualitative statements categorized by service values and attributes. Service Values and attributes indicate what aspects of the service is important to the customer. Page 167 o 42 Table 4.4: Service Values and Community LOS Is the service over or under used? Do we need more or less of these assets? The service can be used/reached at convenient times The service is broad enough that it serves the entire population Services meet customer needs while limiting health, safety, security, natural and heritage impacts The service is provided in a manner that protects users from harm Considers future impacts such as climate change that may put stress on the system. The standard to which the service is provided Consistently good in quality or performance - works when service users expect it to work How much does the service cost? Is it fair and is the service provided worth this cost? Service is provided with maximum productivity and minimal wasted effort Ensure adequate infrastructure to meet growing population and community needs Provide accessible infrastructure for inclusion and meeting diverse resident needs Provide considerations for handling runoff more effectively and reduce salt use. Provide infrastructure in acceptable condition and cleanliness by following and providing proper maintenance standards and inspections Maintain infrastructure proactively to minimize unexpected failures Provide infrastructure management services in an efficient and cost-effective manner In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 168 o 42 Capacity/Use Capacity & Use Available Scope Function Functional Safety Resilience Quality Quality & Reliability Reliable Affordable Financial Sustainability Efficient Table 4.4: Service Values and Community LOS Is the service over or under used? Do we need more or less of these assets? The service can be used/reached at convenient times The service is broad enough that it serves the entire population Services meet customer needs while limiting health, safety, security, natural and heritage impacts The service is provided in a manner that protects users from harm Considers future impacts such as climate change that may put stress on the system. The standard to which the service is provided Consistently good in quality or performance - works when service users expect it to work How much does the service cost? Is it fair and is the service provided worth this cost? Service is provided with maximum productivity and minimal wasted effort Ensure adequate infrastructure to meet growing population and community needs Provide accessible infrastructure for inclusion and meeting diverse resident needs Provide considerations for handling runoff more effectively and reduce salt use. Provide infrastructure in acceptable condition and cleanliness by following and providing proper maintenance standards and inspections Maintain infrastructure proactively to minimize unexpected failures Provide infrastructure management services in an efficient and cost-effective manner In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 168 o 42 Table 4.5: Customer Level of Service Measures Provide infrastructure in % of assets acceptable condition and within Quality & cleanliness by following and service life Monitor Not 100%* Not Not Reliability providing proper (by Only available available available maintenance standards and replacement inspections value) Note that the performance measure of assets within service life is not a comprehensive analysis as some assets are missing age and condition data and have been excluded from this calculation. This metric will continue to be monitored by the City for future iterations of the AM Plan. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such as technology and customer priorities and lifestyle trends will change over time. Table 4.6 shows the activities expected to be provided under the current 10 year Planned Budget allocation, and the Forecast activity requirements being recommended in this AM Plan. Table 4.6 uses the same trend identifiers used in the previous section (4.5). Page 169 of 428 Table 4.6: Technical Levels of Service Based on correspondence with the City of Kitchener, data does not currently exist for the above technical levels of service and therefore these measures will be monitored by the City and investigated for future updates of the AM Plan. Page 170 o 42 Annual parking Operations transactions (cash, credit, Monitor Future Not Not Not Only Metric available available available or debit) Peak occupancy % Monitor Future Not Not Not Operations (parking lot utilization) Only Metric available available available Average revenue per daily Monitor Future Not Not Not Operations transaction Only Metric available available available Net income generated per Monitor Future Not Not Not Operations parking space Only Metric available available available Based on correspondence with the City of Kitchener, data does not currently exist for the above technical levels of service and therefore these measures will be monitored by the City and investigated for future updates of the AM Plan. Page 170 o 42 5.0 FUTURE DEMAND 5.1 Demand Impact and Demand Management Plan Population growth and its geography can have major impacts on the scale of services delivered by the City and the assets that support service delivery. The City's approaches to accommodate growth needs are described in the Official Plan. The 2014 Official Plan provides policies for guiding and directing growth and development to enable the City's success of achieving the vision to be a complete and healthy community. This section focuses on the capital growth expenditures planned by the City to meet growing demands and manage the risks to the service levels. Growth also results in an increasing asset portfolio over the forecast period with associated impacts on the operating budget, discussed further in Section Error! Reference source not found. as part of the Lifecycle Strategy. The population of the City of Kitchener and surrounding areas has been rapidly growing over the past few decades and is expected to continue to grow at a similar pace in the coming years. The City monitors trends in its population to ensure that the associated impacts on service levels are well understood and that strategies are developed to manage risks related to the additional demands due to growth and changes in demographics. The 2014 Official Plan sets out the estimated population and employment forecasts to 2031. Updated forecasts are provided in the City's 2022 Development Charge Study, which forecasts that the City's population will increase from 250,247 in 2021 to 309,120 in 2036 (the current population (2023) is estimated at 270,000). Employment was estimated at 99,662 jobs in 2021, and is expected to reach 123,825 jobs by 2036. Demand drivers are circumstances that may impact future service delivery and use of assets. These drivers can include things such as population change, climate change, regulations, changes in demographics, seasonal factors, consumer preferences and expectations, technological changes, economic factors, environmental considerations, etc. The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.1. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices can include non -infrastructure solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 5.1. Further opportunities will be developed in future revisions of this AM Plan. Table 5.1: Demand Management Plan Population 270,000 (2023) 309,120 (2036)* There may be a The City can consider the Growth deficiency in the expansion or addition of availability of parking. parking assets to accommodate the increase in population. *2022 Development Charges Study 5.2 Asset Programs to meet Demand As discussed in Section 6, the City has no planned growth or expansion of parking assets during the analysis period. 5.3 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets under management and the services they provide. In the context of the Asset Management Planning process, climate change can be considered as both a demand driver and a risk. The City of Kitchener's Corporate Climate Action Plan (CorCAP) is the City's guiding policy document on climate change in accord with the Region of Waterloo's "A Climate Action Plan for Waterloo Region". The City of Page 171 of2428 Kitchener's mitigation and adaptation strategy for the Corporate Climate Action Plan is to lead by example with action on climate change to reduce corporate greenhouse gas emissions and promote inclusive environmental sustainability and resilience. This supports the City's corporate mission of 'proudly providing valued services for our community, and strategic goals of environmental leadership, by working to ensure we can safeguard the City's assets and stakeholders.' We must consider how to manage our existing assets given potential climate change impacts for our region of Ontario. Risk and opportunities identified to date are shown in Table 5.2 Table 5.2 Managing the Impact of Climate Change on Assets and Services Greenhouse Gas Shift towards the There may be limited City to continue to review Emissions use of electric capacity of EV Charging the need to expand its EV vehicles stations. Charging Station infrastructure to accommodate for this growth. Additionally, the way in which we construct new assets should recognize that there is opportunity to build in resilience and adaptation to climate change impacts. Building Asset Resilience to Climate change for any facilities or structures related to parking services have been covered in the Facilities AM Plan. ' Kitchener Changing for Good, Our Climate Strategy Action Plan, Sec 1.1 Page 172 o 42 6.0 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how the City of Kitchener plans to manage and operate the assets at the agreed levels of service (Refer to Section 4) while managing life cycle costs. 6.1 Operations and Maintenance Plan Operations include regular activities to provide services and may not have a direct impact to the overall health of the asset. Examples of typical operational activities include cleaning, asset inspection and supply of power. Maintenance includes all actions necessary for retaining an asset as near as practicable in an appropriate condition including regular ongoing day-to-day work necessary to keep assets operating. As well, maintenance activities strive to ensure that the asset's degradation follows the expected lifecycle rather than accelerating towards an earlier disposal or replacement cycle. Examples of typical maintenance activities include minor repairs. The trend in operations and maintenance budgets are shown in Table 6.1. Table 6.1: Operations & Maintenance Budget Trends 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 $1,699,171 2022 $1,817,501 2023 $1,917,568 2024 $1,917,568 Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset inventory. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.1 shows the forecast operations and maintenance costs. Page 173 o 42 $2,500,000 $2,000,000 N :ll z $1,500,000 M a=, $1,000,000 Q X LU $500,000 $0 Figure 6.1: Operations and Maintenance Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 ■ll All figure values are shown in current year (2023) dollars. The operations and maintenance costs are forecasted to remain constant over the next 10 years in line with the lack of additional and expanded assets planned to be built. 6.2 Renewal Plan Renewal is typically carried out through major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Table 6.2.1: Renewal Activities 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 To be provided in future version of AM Plan 2022 To be provided in future version of AM Plan 2023 To be provided in future version of AM Plan 2024 $60,000 Assets requiring renewal are identified from one of two approaches in the Lifecycle Model. ■ The first method uses Asset Register data to project the renewal costs (current replacement cost) and renewal timing, or ■ The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). Page 174 o 42 The useful lives of assets used to develop projected asset renewal forecasts are shown in Table 6.2.2. Table 6.2.2: Useful Lives of Assets Surface Lots 35 Pay by Plate Units 15 EV Charging Stations 15 Bike Racks 10 Light Standards 30 The estimates for renewals in this AM Plan were based on the asset register data. 6.2.1 Renewal ranking criteria Asset renewals are typically undertaken to either: ■ Ensure the reliability of the existing infrastructure to deliver the expected service it was constructed to, or ■ To ensure the infrastructure is of sufficient quality to meet the service requirements. It is possible to prioritize renewals by identifying assets or asset groups that: ■ Have a high consequence of failure, ■ Have a condition score that is less than the threshold to provide an expected level of service ■ Have high use and subsequent impact on users would be significant, ■ Have higher than expected operational or maintenance costs, and ■ Have potential to reduce life cycle costs by replacement with a modern equivalent asset that would provide the equivalent service. The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.2.1.1. Table 6.2.1.1: Renewal Priority Ranking Criteria Consequence of Failure • Financial Impact • Health & Safety Impact 50% • Service Delivery Impact • Environmental Impact Probability of Failure • Physical Condition Rating 50% • Performance Rating Total 100% Page 175 o 42 6.3 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset inventory increases, renewal schedules are delayed and/or budgets are reprioritized. The forecast of renewal costs is based on the available inventory data and feedback provided by the City. This analysis incorporates two separate renewal forecasting scenarios; the Unconstrained renewal forecast scenario (which replaces assets as needed at end of life) and the Maintain LOS renewal forecast scenario (which defers the replacement of certain assets in order to maintain the condition profile of assets over the course of the analysis period). However, for the purposes of this analysis, only one renewal forecast scenario (Unconstrained) was considered because it is necessary to maintain the current condition profile of parking assets. Additionally, based on feedback provided by the City, certain assets are funded through the operating budget and have been excluded from the renewal forecast. The forecast costs associated with renewals are shown in Figure 6.3. Figure 6.3: Forecast Renewal Costs Renewal Need (Unconstrained) —10 -Yr Ave Annual NEED ($0.05 M/yr' (Unconstrained) -- — Whole of Lifecycle Ave Annual NEED ($0.16 Wyr) $0.18 $0.16 — — — — — — — — — — — — — — — — — — — — — — — — — — — c $0.14 0 $0.12 c $0.08 m a W $0.06 $0.00 2024 2025 2026 2027 2028 All figure values are shown in current year (2023) dollars. E 2024 2030 2031 2032 2033 Page 176 o 42 Table 6.3: Forecast Renewal Activities 2024 $60,000 $13,271 2025 $60,000 $103,271 2026 $40,000 $93,271 2027 $40,800 $68,271 2028 $41,618 $63,271 2029 $42,455 $23,271 2030 $43,305 $48,271 2031 $44,171 $33,271 2032 $45,055 $33,271 2033 $45,956 $38,271 Annual Average $46,336 $51,771 Assets with unknown condition (i.e. missing data on install date and staff reported condition) are forecasted using an average annual renewal amount (asset value / service life). For this reason, some of the renewal amounts in the chart above are consistent throughout the analysis period with the exception of certain assets with specific renewal needs. 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. 6.4.1 Selection criteria Proposed acquisition of new assets and upgrade of existing assets, are identified from various sources such as community requests; proposals identified by strategic plans or master plans; and partnerships with others. Potential upgrades and new works should be reviewed to verify that they are essential to the Entities needs and fits long range planning. Proposed upgrades and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals by asset Leads can then be ranked by priority and available funds and scheduled in future works programs. Currently, no ranking criteria has been established for the acquisition of parking assets, however this will be developed in future revision of this AM Plan. Additionally, based on workshop correspondence, the City has no planned growth or expansion of golf assets during the analysis period. Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.6. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The 2024 — 2033 Capital Plan contains two projects (Parking Lot Resurfacing & Parking Equipment) which has been categorized as renewal and will serve as a basis for the City's renewal budget when calculating the renewal gap. The bars in the graphs represent the forecast costs needed to cost-effectively allocate the life cycle costs associated with the service provision. The Average Renewal Funding (red line) indicates the estimate of Page 177 o 42 available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving balance between costs, levels of service and risk to achieve the best value outcome. Figure 6.6: Lifecycle Summary Renewal Need(Vnco trained) Growth & Upgrade (deed —ID -Yr Ave Annual FUNDING ($0.05 Wyr) $2.5 $2.0 O&M Need =10 -Yr Ave Annual NEED ($0.95 Wyr) (V rrcaws ined) $0.5 $0.0 2024 2025 2026 2027 2028 All figure values are shown in current year (2023) dollars 2029 2030 2031 2032 2033 The operating and maintenance needs covered by the Operating budget is required to increase annually as new assets are acquired. Though there is no current funding shortfall identified for acquisition needs, there is an average annual estimated gap of $0.01 million for renewal needs. 6.5 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Currently, the City has no parking assets which have been formally identified for decommissioning and disposal. 6.6 Non -Infrastructure Solutions Non -Infrastructure solutions are infrastructure related costs that may not be associated with any one specific asset in the City's asset registry but are important in the planning and execution of the previous five asset lifecycle categories. Some of the non -infrastructure solutions can include the consultant costs in the creation of a master plan, working with partner organizations, customer surveys, restocking of maintenance vehicles, and inventory updates. Currently, the City has no formal non -infrastructure solutions relating to parking assets. Page 178 o 42 7.0 RISK MANAGEMENT PLAN The City of Kitchener is committed to identifying, assessing, and mitigating risks to ensure that corporate objectives are achieved. To this end, the City will maintain a long-term, robust Enterprise Risk Management strategy. Risk management is an integral part of management across the City. It forms part of strategic planning, business planning and project approval procedures. In addition, the policy assists in decision-making processes that will allocate resources to areas of highest risk. Identifying and managing risk is everyone's responsibility and is one component of good corporate governance'. 7.1 Critical Assets Critical assets are defined as those assets that provide life safety and public health and well-being to the community at large based on Provincial standards. Assets found in this category may be included for having a high consequence of failure causing significant loss or reduction of service directly impacting services to the community. Critical assets have been identified as having a consequence of failure rating of 4 or 5, however the City does not have any parking assets which have been categorised as critical. 7.2 Risk Assessment The City of Kitchener has adopted an impact criteria and risk category matrix that quantifies the impact and likelihood criteria and assigns a numerical value to the resulting score. All City risk registers will use this terminology to ensure consistency in understanding across the City's assets. The risk registrar is an assessment process that identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, and development of a risk rating and evaluation of the risk. The City will develop a risk treatment plan for non -acceptable risks as part of future improvement. An assessment of risks associated with service delivery identifies risks that will result in loss or reduction in service, personal injury, environmental impacts, a 'financial shock', reputational impacts, or other consequences. Consequence of failure is determined based on the average rating across the consequence categories in the following matrix: ' City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 179 o 42 Table 7.1 Consequence of Failure Rating Scale Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.2 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. Currently, the City does not have any parking assets which have a risk rating of High or Very High. Page 180 o 42 Damages, losses, Damages, losses, Damages, losses, or Damages, losses, or Damages, losses, or Economic Financial or fines of under or fines of $30,000 -fines of $120,000- fines of $500,000- fines of over $30,000 $120,000 $500,000 $1,000,000 $1,000,000 Potential for serious Potential for serious No obvious Potential for minor injury or affects to injury or affects to Potential for death or Health & potential for injury injury or affects to health of one or health of one or more multiple deaths with Social Safety or affects to health of an more individuals with a possibility of individuals with a probable permanent health. individual. short-term disability possibility of loss of a life. damage. or hospitalization. Small number of Significant localized Major or Critical City-wide or Critical customers Localized service disruption or impact service disruption or service disruption or experience disruption or or there will likely be impact, or there will impact, or there will Service o disruption or impact and minor moderate local likely be significant, likely be significant, Delivery impact and no or no media media exposure negative, local or negative, national or media exposure is exposure is which may last provincial media international media experienced. experienced. several days. exposure which may exposure lasting last several days. several days or weeks. Asset Asset Asset Asset Asset degradation/failure degradation/failure degradation/failure degradation/failure degradation/failurehas has impact significant short- poses risk of poses significant risk to has negligible minor term impact to the environmental environment including Environmental Environment impact on to the environment environment contamination and/or a major long-term environment, including potential including a likely has significant long- impact. Likely to result emissions, and forincreased increase of term impact. Likely a in contamination. May pollution. emissions or emissions or substantial increase to become of Provincial or pollution. pollution. emissions or pollution. Federal importance. Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.2 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. Currently, the City does not have any parking assets which have a risk rating of High or Very High. Page 180 o 42 7.3 Infrastructure Resilience Approach The resilience of our infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to 'withstand a given level of stress or demand', and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership are key components to consistency. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 7.4 Service and Risk Trade -Offs The decisions made in balancing the costs and resource requirements for maintaining expected levels of service to addressing risk are based on the objective to achieve the optimum benefits from the available resources. 7.4.1 Potential Gaps There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work 7.4.2 Service trade-off If there is forecasted work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include: ■ If some of the planned maintenance is not completed, this typically results in more unplanned service disruptions. ■ Deferred capital renewal work may result in lower facility condition that does not meet user expectations and potential facility closures. 7.4.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. Page 181 of3428 8.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this AM Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 8.1 Financial Sustainability and Projections 8.1.1 Sustainability of service delivery Medium term —10 year financial planning period This AM Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the first 10 years of the planning period to identify any funding shortfall or surpluses. The forecasted operations, maintenance and renewal costs over the 10 year planning period is $1.97M on average per year. The proposed (budget) operations, maintenance and renewal funding is $2.05M on average per year giving a 10 year funding excess of $0.08M per year. This indicates that approximately 104% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the proposed budget. 8.1.2 Forecast Costs (outlays) for the long-term financial plan Table 8.1.2 shows the forecast costs (outlays) required for consideration in the 10 year long-term financial plan. Providing services in a financially sustainable manner requires a balance between the forecast outlays required to deliver the agreed service levels with the planned budget allocations in the long-term financial plan. Forecast costs are shown in current year (2023) dollar values. Table 8.1.2: Forecast Costs (Outlays) for the Long -Term Financial Plan 2024 $0 $1,917,568 $13,271 $0 2025 $0 $1,917,568 $103,271 $0 2026 $0 $1,917,568 $93,271 $0 2027 $0 $1,917,568 $68,271 $0 2028 $0 $1,917,568 $63,271 $0 2029 $0 $1,917,568 $23,271 $0 2030 $0 $1,917,568 $48,271 $0 2031 $0 $1,917,568 $33,271 $0 2032 $0 $1,917,568 $33,271 $0 2033 $0 $1,917,568 $38,271 $0 8.2 Funding Strategy The proposed funding for assets is outlined in the City's budget and Long -Term financial plan. Page 182 o 42 The financial strategy of the City determines how funding will be provided, whereas the AM Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. 8.3 Valuation Forecasts 8.3.1 Asset valuations The best available estimate of the value of assets included in this AM Plan are shown below. The assets are valued by various methods based on available information. Replacement Cost (Current) $3.9 million 8.3.2 Valuation forecast Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. However, asset values and operations and maintenance needs are forecast to remain constant over the analysis period as the City does not have any planned growth or acquisition of assets. 8.4 Key Assumptions Made in Financial Forecasts In compiling this AM Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions related to the financial forecasts made in this AM Plan are: Acquisition Forecast: Growth projects are based on projects and associated costs identified in the City's Capital Plan. Renewal forecast: o The potential impacts of climate change on state of good repair costs are not included. o The potential increases in lifecycle costs due to deferred renewal work are not included. o Any assets forecasted using an annuity (asset value / service life) or any assets that are funded through operating are assumed to be maintained in their current condition throughout the analysis period. Operations & Maintenance Forecast o The potential impacts of climate change on maintenance costs are not included. o The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition (growth) forecast. o Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan. 8.5 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale in accordance with Table 8.5.1. Page 183 o 42 Table 8.5.1: Data Confidence Grading System A. Very High Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2% B. High Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Medium Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Low Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Very Low None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 8.5.2. Table 8.5.2: Data Confidence Assessment for Data used in AM Plan �. Confidence Assessment Demand Drivers High Population growth was updated in the City's 2022 Development Charges Study. Growth Projections & High Based on input from the City, all acquisition (growth) Acquisition Forecast projects in the Capital Plan have been captured in determining the City's acquisition (growth) needs. Operation & Medium Based on input from the City, all cost centres in the Maintenance Operating Budget have captured in determining the City's Forecast operating and maintenance needs, however the forecast does not quantity current shortfalls such as underfunding for planned maintenance. Renewal Forecast High Asset values and estimated service lives are based on the best available data and feedback provided by the City. Disposal forecast N/A Disposal strategy is to be developed in future iterations of the AM Plan. The estimated confidence level for and reliability of data used for the financial analysis in this AM Plan is considered to be High. Page 184 of 428 9.0 PLAN IMPROVEMENT AND MONITORING 9.1 Status of Asset Management Practices 9.1.1 Accounting and financial data sources This AM Plan does not include the depreciation valuation and therefore does not utilize the City's accounting data source (Tangible Capital Asset data set). 9.1.2 Asset management data sources This AM Plan utilizes asset management data. The source of the data is: • Non -Core Master List of Assets o List of assets included within each service area. 0 2023 current replacement values 0 Other asset attributes such as install year/date, asset ID, etc. • Condition assessments provided by City staff as of the end of 2023. • City of Kitchener 2024-2033 Capital Plan, including forecast of renewal, upgrade and growth projects 9.2 Improvement Plan It is vital in any AM Plan to recognize areas of future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this AM Plan is shown in Table 9.1. Table 9.1: Improvement Plan 1 City to formalize a condition assessment Parking Services None 2024 —2025 program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. 2 City to monitor and update replacement Parking Services None 2024 —2025 values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. 3 City to formalize levels of service and Parking Services None 2024 —2025 monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. Page 185 of #28 4 Conduct formal risk assessments to Parking Services Align with 2024-2025 prioritize preventative maintenance corporate risk activities, as well as renewal / capital management investments framework 5 City to continue to develop and update 10- Parking Services None 2024 —2025 year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). 6 Formalize governance between other City Parking Services None 2024-2025 divisions for assets such as parking lots and and other City EV charging stations Divisions 9.3 Monitoring and Review Procedures This AM Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated at a maximum of every 5 years to meet the requirements of O.Reg.588/17 and ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, acquisition and asset disposal costs and planned budgets. Page 186 of�428 10.0 REFERENCES ■ United Nations, Managing Infrastructure Assets for Sustainable Development ■ Kitchener Changing for Good, Our Climate Strategy Action Plan ■ City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 ■ O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure ■ Region of Waterloo Community Climate Adaptation Plan 2019 ■ City of Kitchener Development Charges Study 2022 ■ City of Kitchener Strategic Plan 2023-2026 ■ City of Kitchener Official Plan 2014 Page 187 of 428 Parks, Open Spaces and Trails Services Asset Management Plan Current Levels of Service I Document ID : 01 May 1", 2024 Final Draft Submission SLBC BW BW Page 189 of2428 Contents 1.0 EXECUTIVE SUMMARY 5 1.1 The Purpose of the Plan..........................................................................................................................5 1.2 Asset Description....................................................................................................................................5 1.3 Levels of Service......................................................................................................................................6 1.4 Future Demand.......................................................................................................................................6 1.5 Lifecycle Management Plan....................................................................................................................6 1.6 Financial Summary..................................................................................................................................7 1.7 Asset Management Planning Practices...................................................................................................8 1.8 Monitoring and Improvement Program.................................................................................................8 2.0 INTRODUCTION 10 2.1 Assets Included in this Plan...................................................................................................................10 2.2 Provincial Asset Management Requirements.......................................................................................10 2.3 Asset Management at the City of Kitchener.........................................................................................11 3.0 STATE OF LOCAL INFRASTRUCTURE 15 3.1 Background Data..................................................................................................................................15 3.2 Asset Registry Completeness & Assumptions.......................................................................................19 4.0 LEVELS OF SERVICE 22 4.1 Customer Research and Expectations..................................................................................................24 4.2 Strategic and Corporate Goals..............................................................................................................24 4.3 Legislative Requirements......................................................................................................................25 4.4 Customer Values and Community Levels of Service.............................................................................25 4.5 Customer Levels of Service...................................................................................................................26 4.6 Technical Levels of Service....................................................................................................................27 5.0 FUTURE DEMAND 29 5.1 Demand Impact and Demand Management Plan................................................................................29 5.2 Asset Programs to meet Demand.........................................................................................................29 5.3 Climate Change Adaptation..................................................................................................................30 6.0 LIFECYCLE MANAGEMENT PLAN 31 6.1 Operations and Maintenance Plan.......................................................................................................31 6.2 Renewal Plan........................................................................................................................................32 6.3 Summary of future renewal costs.........................................................................................................34 6.4 Acquisition Plan....................................................................................................................................36 6.5 Disposal Plan.........................................................................................................................................38 Page 190 oV428 6.6 Non -Infrastructure Solutions................................................................................................................38 7.0 RISK MANAGEMENT PLAN 39 7.1 Critical Assets........................................................................................................................................39 7.2 Risk Assessment....................................................................................................................................39 7.3 Infrastructure Resilience Approach......................................................................................................41 7.4 Service and Risk Trade -Offs ..................................................................................................................41 8.0 8.1 8.2 8.3 8.4 8.5 FINANCIAL SUMMARY Financial Sustainability and Projections ................ Funding Strategy .................................................... Valuation Forecasts ............................................... Key Assumptions Made in Financial Forecasts...... Forecast Reliability and Confidence ....................... 9.0 PLAN IMPROVEMENT AND MONITORING 47 9.1 Status of Asset Management Practices................................................................................................47 9.2 Improvement Plan................................................................................................................................47 9.3 Monitoring and Review Procedures.....................................................................................................48 10.0 REFERENCES 49 Page 191 of 428 1.0 EXECUTIVE SUMMARY 1.1 The Purpose of the Plan This City of Kitchener Parks, Open Spaces and Trails Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to maintain current levels of service in a cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required over a 10 -year planning period. The AM Plan will link to a Long -Term Financial Plan which typically considers a 10 -year planning period. 1.2 Asset Description This plan covers the infrastructure assets that provide parks, open spaces and trails services. The largest portion of the asset mix are the Pedestrian Network with a replacement value of $51.6M and Recreational Fields with a replacement value of $26.9M. These two categories of assets account for approximately 79% of the total replacement value of all Parks, Open Spaces and Trails assets. Note that park assets located at Victoria Park have been included in the Facilities AM Plan. The infrastructure assets covered by this AM Plan are shown in Table 1.1. Table 1.1: Assets covered by this Plan Ball Diamonds, Cricket, Lawn Bowling, Soccer Fields, Recreational Fields $26,903,615 Disc Fields, Field Hockey Pitch Recreational Hard Outdoor Rinks, Tennis Courts, Basketball Courts, Volleyball Courts, Bike Parks, Skateboard Parks, $7,055,802 Surfaces Shuffleboard Court Playgrounds Playgrounds $11,868,924 Pedestrian Network Boardwalks, Bridges, Trails $51,585,803 Park Structures Huron Natural Area Picnic Shelter $141,556 Park Amenities & Dog Parks, Bike Racks, Garbage Containers, Picnic Furnishings Tables, Bollards, Benches $1,943,953 TOTAL $99,499,654 The above infrastructure assets have replacement value estimated $99.5 million with a breakdown of this value shown in Figure 1.1. Page 192 of 428 Figure 1.1: Asset Valuation Recreational Hard Surfaces $7,055,802 7.1% 1.3 Levels of Service Park Amenities & Furnishings $1,943,953 2.0% Park Structures $141,556 0.1% The allocation in the planned budget is in sufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. However, service levels and associated targets will continue to be formalized and monitored for future iterations of the AM Plan. 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are created by: ■ Population growth These demands will be approached using a combination of managing existing assets, upgrading existing assets and providing new assets to meet demand. Demand management practices may also include a combination of non -asset solutions, insuring against risks and managing failures. ■ The City can continue to consider the expansion and addition of parks, open spaces and trails infrastructure. 1.5 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan includes operation, maintenance and renewal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10 -year total outlays, which for the parks, open spaces and trails portfolio is estimated as $175 million or $17.5 million on average per year. Page 193 of 428 1.6 Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 year period is $171 million or $17.1 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 93% of the cost to sustain the current level of service at the lowest lifecycle cost. The infrastructure reality is that only what is funded in the long-term financial plan can be provided. The Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for parks, open spaces and trails leaves a shortfall of $0.4 million on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long -Term Financial Plan. This is shown in the figure below. Figure 1.2: Lifecycle Summary Renewal Need (Unconstrained) iiiiiiiiiIGrowth & Upgrade Need —1Q-VrAve Annual FUNDING 1$3,65 Wyry $30.0 $25.0 2 $20.0 $15.0 ,7 Q $10.0 M X $5.0 $0.0 � O&M Need _10•Yr Ave Annual NEED {$4.70 M/yr) (Unconstrained) 10•YrAve Annual NEED {$4.05 MJyrl (Maintain LOS) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Figure Values are in current year (2023) dollars. We plan to provide parks, open spaces and trails services for the following: Renewal Gap: $0.40M/year (Maintain LOS) a ■ Operation, maintenance, renewal and acquisition of parks, open spaces and trails assets to meet service levels set by the City in annual budgets. ■ New and expanded assets are included in the next 10 year planning period based on projects listed in the 2024-2033 Capital Plan. 1.6.2 Infrastructure Gap We currently do not allocate enough budget to sustain these services at the proposed standard or to provide all new services being sought. Works and services that cannot be provided under present funding levels are: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.40 million per year) 1.6.3 Managing the Risks Our present budget levels are insufficient to continue to manage risks in the medium term. The main risk consequences are: ■ An increase in unplanned repairs and associated service disruptions. Page 194 of'428 ■ Higher lifecycle management costs, deteriorating assets, and potential closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. We will endeavor to manage these risks within available funding by: ■ Continue to apply a risk-based approach to capital planning to focus available funding on critical projects. ■ Pursue available grants from higher levels of government. 1.7 Asset Management Planning Practices Key assumptions made in this AM Plan are: Assumptions were made regarding the estimated service life of certain assets as follows: Pedestrian Bridges (30 years), Trails (30 years), Shuffleboard Courts (15 years), Disc Fields (20 years), Field Hockey Pitches (20 years), Dog Parks (20 years), Bike Racks (15 years), Garbage Containers (10 years), Huron Natural Area Picnic Shelter (15 years), Picnic Tables (15 years), Bollards (15 years) and Benches (15 years). ■ When analyzing the replacement value of trails assets, the following unit costs were used depending on the surface type: Asphalt ($100/m2), Concrete ($150/m2), Stoned ust/G ravel/Ta r and Chip ($60/m2) and Brick/Cobblestone ($227/m2). ■ When analyzing pedestrian bridges, the 2023 Bridge Inspections Report (Aecom) was used to determine condition. This report provides condition based on the Bridge Condition Index (BCI), and the following condition category scale from the Engineering Structures AM Plan was used to convert BCI to condition category from Very Good to Very Poor: Bridge Condition Index (BCI) Condition Category 80-100 Very Good 60-79 Good 40-59 Fair 20-39 Poor 0-19 Very Poor Assets requiring renewal are identified from the asset register method. ■ The timing of capital renewals based on the asset register is applied by adding the useful life to the year of acquisition or year of last renewal; Or ■ Alternatively, an estimate of renewal lifecycle costs is projected from external condition and may be supplemented with, or based on, expert knowledge. This AM Plan is based on a medium level of confidence information. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are: City to complete the development of asset inventories with appropriate attributes for any additional assets to be included in future iterations of the AM Plan. For example, there is currently no inventory in this AM Plan for signage on trails. Page 195 of 428 ■ City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. ■ City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. ■ City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. ■ Conduct formal risk assessments to prioritize preventative maintenance activities, as well as renewal / capital investments. • City to continue to develop and update 10 -year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). Page 196 of 428 2.0 INTRODUCTION The City of Kitchener (the City) is in Waterloo Region, in the heart of southwestern Ontario. The City covers an area of 137 square kilometers and has a population of approximately 270,000; making it the largest City in the Region and the Grand River Watershed alike. The City has been designated as a growth area through the Provincial Growth Plan: Places to Grow, and has seen significant population growth that is expected to continue through the next decade. The City owns and maintains assets that provide a wide range of services between City departments and to its residents. This Asset Management Plan (AM Plan) will communicate the requirements for the sustainable delivery of services through efficient management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the planning period. The Plan has been prepared in accordance with Ontario Regulation 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation lays out the requirements for all AM Plans, as well as deadlines to meet to certain milestones. This iteration of the AM Plan meets requirements for Current Levels of Service. 2.1 Assets Included in this Plan This AM Plan covers non -facilities parks, open spaces and trails assets for which the City is responsible for lifecycle management. Any facilities associated with parks, open spaces and trails services have been covered in the Facilities AM Plan. The infrastructure assets included in this plan have a total replacement value of $99.5 million. Figure 2.1 — City of Kitchener Non -Core Parks Asset Condition and Value Pa 7 Fair $18,441,497 Good 19% $40,932,690 41% 2.2 Provincial Asset Management Requirements Unknown $2,905,267 3% Very Good $5,031,086 5% The Province of Ontario requires all municipalities that seek provincial infrastructure funding have an asset management plan, or plans, in place. To encourage a similar approach across municipalities, in 2012 the province introduced Building Together: Guide for Municipal Asset Management Plans, which defined the key components of an effective asset management plan. Page 197 o 42 W More recently in 2017, the province approved O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation mandates the development of an asset management policy, asset management plans, and their content. Additionally, milestones are included for when municipalities must fulfill certain requirements, outlined below in Figure 2.2. Figure 2.2 - O.Reg 588/17 Milestones July Ist f '• The City's first AM Policy was completed in 2412, and most recently Strategyupdated in 2024. The Policy outlines the goals and objectives of asset Policy management within the Organization. t the City, Core AMPS prepared in accordance with 0 Reg 588/17 July 1st 2022 include Water, Wastewater, Stormwater, Roads & Traffic, Bridges & Core AMPs Culverts, and Gas. These AMPs must document current Levels of Service - em. mmkow Non-core AMPs will include Facilities, Cemeteries, Parking, Parks, Open July 1st 2024 1 Non-cAMPs Spaces & Trails, Golf, Forestry, Transportation and Fleet. These AMPS ' - must document current Levels of Service and the cost to maintain them. July 1st 2025 1 1 By this time, the City is required to have an approved AMP for all assets Proposed Levels that builds upon the 2022 and 2024 requirements. These AMPS must of Service document proposed Levels of Service, what activities will be required to meet them, and a strategy to fund them. Asset Management at the City of Kitchener The City of Kitchener has been practicing sound asset management planning for at least 15 years, starting with the introduction of Public Sector Accounting Board (PSAB) legislation. Since 2007, several efforts have resulted in well-established asset management programs and procedures, as well as the inclusion of a dedicated Asset Management Division in the City's corporate structure. Figure 2.3 below outlines some key milestones in the City's asset management journey. Kitchener City Council adopted the most recent Corporate Asset Management Strategy in 2016. The goals outlined in the strategy are to extend the useful life of all assets, in the most cost-effective way, while managing risk and meeting the agreed upon levels of service. The AM Plan is a key tactical (medium-term) planning document that relies on input from strategic planning activities and informs shorter -term decision making. The AM Plan provides a framework to validate the City's budgeting processes and assist in prioritizing work activities, including capital projects, based on risk. It discusses levels of service that also support goals in the 2023 to 2026 Strategic Plan and lifecycle management strategies intended to reduce the overall cost of asset ownership. Page 198 o 42 Figure 2.3 - City of Kitchener Asset Management Timeline 2007 200: 2010 2011 2012 2013 2017 Procurement Development Establishment Council Development Development Introduction of City's of Corporate of an asset approves the of two pilot of water, of O.Reg maintenance Asset management City's first AMPS sanitary and 588117 — Asset management Management program asset (pavement storm AMPS Management system, Strategy coordinator and management and the AUD) planning for CityWorks office policy Municipal Infrastructure 2.3.1 Corporate Asset Management System An asset management system should aim to achieve a line of sight between corporate strategic goals outlined in the strategic plan, and operational plans, policies and procedures, as illustrated in Figure 2.4. Two guiding documents in this system are the Asset Management Strategy and Asset Management Policy, most recently updated in 2016 and 2024, respectively. The Asset Management Policy defines the intent, scope and principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. Section 5.3 — Climate Change Impacts of this AM plan discusses these impacts specific to the City and strategies to build and maintain assets through the lens of resiliency, sustainability, adaptation, and mitigation. The Asset Management Strategy defines how the principles of the policy will be put into practice and the three guiding principles of asset management at the City of Kitchener which are to: 1 Balance asset condition and levels of service, 2 Allocate financial resources among priorities and, 3 Shift how we do business — such as introducing programs to support the requirement for high-quality data services. Figure 2.4 - City of Kitchener Asset Management System In addition to the Asset Management Strategy and Policy, this AMP should be read in conjunction with other planning documents relevant to non-core assets, outlined in Table 2.1 below. Page 199 of1428 Table 2.1: Key Planning Documents D. I. 2023-2026 Corporate Strategic Plan The document outlines the strategic goals that are to be championed by Council and staff across the City. The Official Plan is a legal document that contains goals, objectives and policies to manage and direct physical and land use change and Official Plan (2014) their effects on the cultural, social, economic and natural environment within the City. This Plan provides a framework for decision-making and plays several essential roles in the future planning of the City. The AM strategy outlines the Asset Management program at the Corporate Asset Management City, the three guiding principles of where the program intends to go, Strategy (2016) and the value gained by forming consistent practices throughout the asset groups. Corporate Asset Management Policy The Asset Management Policy defines the intent, scope and (2024) (currently being updated) principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. The City's Corporate Climate Action Plan aims to achieve meaningful Kitchener, Changing for Good - and measurable carbon emission reductions throughout its Corporate Climate Action Plan (2019) operation, while also adapting to impacts resulting from climate change. Under Ontario Regulations 25/23, public sector agencies in Ontario Energy Conservation & Demand must report annual energy consumption and develop a five - year Management Plan (2019-2023) conservation and demand management plan intended to reduce energy consumption and greenhouse gas emissions. The DC Study includes preparing a development forecast, Development Charges Background establishing historical service levels, determining the increase in Study (2022) need for services arising from development and appropriate shares of costs and attribution to development types (residential and non- residential). Key stakeholders in the preparation and implementation of this AM Plan are shown in Table 2.2 Page 200 o 42 Table 2.2 - Key Stakeholders in the AM Plan City Council are the overall owners of the City's assets. Council approves asset management policies and asset funding allocation through the City of Kitchener Elected Council annual corporate budget process. An overarching expectation of a standard of care is required by Council to ensure commitment to effective asset Management practices. The Leadership Team provides corporate oversight to the program to Corporate Leadership Team ensure that the goal and directions of the Corporate Asset Management program are maintained, and the program remains consistent with the overall Strategic Plan. This committee provides leadership and strategic direction for supporting systems/processes specific to the delivery of asset/work management information for the City of Kitchener. Further, in support of Asset Management Steering the city-wide asset management strategies, the committee provides Committee leadership and governance to the Asset Management Policy statement through the provision of information necessary for the long-range forecasts of asset investment needs, services levels, risks, costs and other performance measures. Community Services is a department of the City and is responsible for the Community Services operation and maintenance of community centres, swimming pools, arenas, sports facilities, as well as the Kitchener Fire Department stations. The Finance division within Financial Services prepares an annual operating budget and 10 -year capital forecast for Council's Finance consideration. The annual budget helps identify the spending plans and priorities for the City for the upcoming year and is informed by the City's Strategic Plan, various master plans, and feedback from the community. 2.3.2 Asset Management Plan Methodology The information presented in the AM Plan is based on O.Reg. 588/17 requirements, the Guide for Municipal Asset Management Plans, originally issued by the Ontario Ministry of Infrastructure, and leading asset management practices. Costs and replacement values in this AM Plan are estimated in 2023 dollars. The AM Plan was developed by SLBC Inc. in collaboration with City staff through: • Review of background materials available on the City's web site and provided by the City's project team including asset inventories, planning documents, and budgets • Workshops with internal stakeholders • Various interim meetings with the City's project team • Numerous data and information transfers • Review of interim outputs by the City's project team and other stakeholders, and incorporation of comments into the final AM Plan Page 201 o 42 3.0 STATE OF LOCAL INFRASTRUCTURE 3.1 Background Data 3.1.1 Asset inventory and valuation A mix of assets support the delivery of the City's Parks, Open Spaces and Trails services. The assets covered by this AM Plan are shown in Table 3.1.1. All table and figure values are shown in current year (2023) dollars. The largest portion of the asset mix are the Pedestrian Network with a replacement value of $51.6M and Recreational Fields with a replacement value of $26.9M. These two categories of assets account for approximately 79% of the total replacement value of all Parks, Open Spaces and Trails assets. Note that park assets located at Victoria Park have been included in the Facilities AM Plan. Table 3.1.1: Assets covered by this Plan Recreational Fields Ball Diamonds, Cricket, Lawn Bowling, Soccer Fields, $26,903,615 Disc Fields, Field Hockey Pitch Recreational Hard Outdoor Rinks, Tennis Courts, Basketball Courts, Volleyball Courts, Bike Parks, Skateboard Parks, $7,055,802 Surfaces Shuffleboard Court Playgrounds Playgrounds $11,868,924 Pedestrian Network Boardwalks, Bridges, Trails $51,585,803 Park Structures Huron Natural Area Picnic Shelter $141,556 Park Amenities & Dog Parks, Bike Racks, Garbage Containers, Picnic $1,943,953 Furnishings Tables, Bollards, Benches TOTAL $99,499,654 The asset valuation distribution for this AM Plan is shown in Figure 3.1.1 and the age profile of the assets included in this AM Plan are shown in Figure 3.1.2. Page 202 o 42 Figure 3.1.1: Asset Valuation Pedestrian $51,58 51.1 Playgrounds $11,868,921 11.9% Recreational Hard Surfaces $7,055,802 7.1% Park Amenities & Furnishings $1,943,953 2.0% Park Structures $141,556 0.1% Page 203 of 428 Figure 3.1.2: Asset Age Profile Years 0 U 10 30 miaw ord fdcket EL Revearlonal Rads Lawn Bowling Ww Reid Outdoor Rink Tennis Coon 0askctball Cr n Recreational Had surfaces volleyw II Chun Bike Park Skateboard Park Playgrounds Playground eaardwalk Pede .. Network eddge Tralk Park Amenities & iumhhgs Benches Ia Age Wdhm service li}e i•.ria.ated service We ■ n, R,, -i+ s.-- W, Notes on the above Asset Age Profile: 40 ■ Shuffleboard Courts, Disc Fields, Field Hockey Pitches, Dog Parks, Bike Racks, Garbage Containers, Huron Natural Area Picnic Area, Picnic Tables and Bollards are not included because they are missing information on age and condition. ■ Lawn Bowling and Cricket Fields are the oldest of the City's parks assets with an average age of 29 years compared to an estimated service life of 20 years. ■ Basketball Courts, Tennis Courts, Outdoor Rinks, Soccer Fields, Ball Diamonds and Playgrounds have also surpassed their estimated service lives and may warrant closer attention for investment in maintenance or replacement due to their age, depending on criticality. ■ Conversely, the remaining assets have a much lower age to service life ratio. 3.1.2 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.1.2. Page 204 of1428 Recreational Fields and Hard Surfaces Playgrounds Pedestrian Network Park Structure, Park Amenities & Furnishings 3.1.3 Asset capacity and performance Table 3.1.2: Asset Service Hierarchy These assets support a wide range of active recreation and allow the residents of the City to enjoy an active lifestyle. Playgrounds promote physical and social development in children and provide a space for parents and caregivers to interact. Establishes a network of pedestrian pathways to connect various parts of the City and promotes walking and cycling as a viable means of transportation. These assets provide additional utility to residents and visitors of the City's parks and open spaces. Assets are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table 3.1.3. Table 3.1.3: Known Service Performance Deficiencies L- Service leficlency I As outlined in the Places & Spaces — Parks Strategic Plan, there are several Critical Needs Areas underserved communities in the City of Kitchener. Communities such as Alpine, Bridgeport West, Cherry Hill, Civic Centre and many others have been highlighted as needing improvement regarding parks infrastructure. The above service deficiencies were identified from the Places & Spaces — Parks Strategic Plan and workshop correspondence with the City of Kitchener. 3.1.4 Asset condition Assets can be inspected and monitored through various means. The City employs both internal staff and contractors to perform inspections of City owned assets. The results of these inspection programs provide the City with meaningful empirical data that can be used to gauge the condition of assets and needs for asset maintenance or renewal. The cost for these condition assessments can be found in the Operational costs shown in section 6.1 of this AM Plan. Table 3.1.4: Condition Assessments No formal condition assessment program Condition is measured using a 1 — 5 grading system as detailed in Table 3.1.5. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level; however, for reporting in the AM Plan results are translated to a 1 — 5 grading scale for ease of communication. Page 205 o 42 Table 3.1.5: Condition Grading System 1— Very Good free of defects, only planned and/or routine maintenance required 2 — Good minor defects, increasing maintenance required plus planned maintenance 3 — Fair defects requiring regular and/or significant maintenance to reinstate service 4 — Poor significant defects, higher order cost intervention likely 5 — Very Poor physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.1.4. Figure 3.1.4: Asset Condition Profile Unknown $2,906,267 3% Very Good $5,031,086 5% Poor $10,793,488 11% Fair $18,441,497 19% All figure values are shown in current year (2023) dollars. The condition assessment of the municipality's assets provides some perspective on the overall reliability of its infrastructure. Overall, approximately 65% of the City's parks, open spaces and trails assets have a condition rating of fair or better. The moderate proportion of assets in poor and very poor condition (21%) may warrant closer attention for investment in maintenance or replacement due to their overall value. 3.2 Asset Registry Completeness & Assumptions In compiling this AM Plan, a thorough review of the asset registries was performed. The purpose of this review was to identify whether all asset categories under the leadership and stewardship of the responsible stakeholders are represented in a singular or combined asset registry. The review also looks to ensure that for those registries that do exist, fields that are critical to the assets' lifecycle and financial management are Page 206 o 42 populated with accurate values. These values will provide the basis for meaningful asset management planning. The following categories have been employed to assess the completeness of asset registries: Table 3.2: Asset Registry Rating Categories Data based on sound records, procedures, investigations and analysis, documented Good properly but may have minor shortcomings. Dataset is complete and estimated to be accurate ± 10%. Data based on sound records, procedures, investigations and analysis which is incomplete Fair or unsupported, or extrapolated from a limited sample. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% Poor Dataset may not exist or be fully complete, and most data is estimated or extrapolated Table 3.3: Asset Registry Assessment Recreational Good Good Good Good Good Good Good Fields Recreational Good Good Good Good Good Good Good Hard Surfaces Playgrounds Good Good Good Good Good Good Good Pedestrian Good Good Good Good Good Good Good Network Park Structures Fair Good Good Poor Poor Good Good Park Amenities Fair Good Good Poor Poor Good Good & Furnishings Where asset registries are missing critical data or fields are found to be incomplete, there may be assumptions of the data that have to be made to complete this AM Plan. While these assumptions are listed below, they will be put into more context as needed through this AM Plan. Key assumptions related to the asset registries made in this AM Plan are: ■ Some assumptions were made regarding the estimated service life of certain assets as follows: Pedestrian Bridges (30 years), Trails (30 years), Shuffleboard Courts (15 years), Disc Fields (20 years), Field Hockey Pitches (20 years), Dog Parks (20 years), Bike Racks (15 years), Garbage Containers (10 years), Huron Natural Area Picnic Shelter (15 years), Picnic Tables (15 years), Bollards (15 years) and Benches (15 years). ■ When analyzing the replacement value of trails assets, the following unit costs were used depending on the surface type: Asphalt ($100/m2), Concrete ($150/m2), Stoned ust/Gravel/Ta r and Chip ($60/m2) and Brick/Cobblestone ($227/ M2). Page 207 o 42 ■ When analyzing pedestrian bridges, the 2023 Bridge Inspections Report (Aecom) was used to determine condition. This report provides condition based on the Bridge Condition Index (BCI), and the following condition category scale from the Engineering Structures AM Plan was used to convert BCI to condition category from Very Good to Very Poor: Bridge Condition Index (BCI) Condition Category 80-100 Very Good 60-79 Good 40-59 Fair 20-39 Poor 0-19 Very Poor Page 208 o 42 4.0 LEVELS OF SERVICE In the State of Infrastructure Section, the value, age, and condition of the City's infrastructure assets were discussed. The Levels of Service (LOS) chapter builds on the State of Infrastructure by defining the performance the City's assets are intended to deliver over their service lives. LOS are statements that describe the outputs and objectives the City intends to deliver to its residents, businesses, and other stakeholders. In general, LOS are guided by a combination of customer expectations, legislative requirements, internal policies and procedures, and affordability. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, performance levels, and timeframes to achieve performance levels, such that the activities and costs to deliver the documented LOS can be determined. Figure 4.1 shows the LOS framework and line of sight from higher-level Corporate priorities to detailed asset - specific Technical LOS. Corporate commitments and legislated LOS guide the development of Community LOS. The Community LOS outline the services that the assets need to deliver to the City's residents and businesses. Community LOS can be categorized into one of the following service attributes: • Capacity & Use: Services have enough capacity and are available to customers • Function: Services meet customer needs while limiting health, safety, security, natural and heritage impacts • Quality & Reliability: Services are reliable and responsive to customers • Financial Sustainability: Services are affordable and provided at the lowest cost Community LOS are translated into Customer LOS, which measure services from a resident/business perspective, and Technical LOS that define asset performance levels. These LOS in turn define asset needs and drive the required lifecycle activities and associated funding to mitigate risks, as follows: • Capacity & Use LOS inform Acquisition needs • Function LOS inform Upgrade needs • Quality & Reliability LOS inform Renewal, Operations and Maintenance needs • Financial Sustainability LOS inform Funding needs This Line of Sight shows how the day-to-day management of City assets supports the achievement of higher- level strategic priorities. Page 209 o 42 a C 41 V C p Z7 3 D 6 w C 0 Lm•0 4D..`_ a#a o—xm .? 4.1 4.2 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the City of Kitchener. Future revisions of the AM Plan will incorporate customer consultation on service levels and costs of providing the service. This will assist Council and stakeholders in matching the level of service required, service risks and consequences with the customer's ability and willingness to pay for the service. At this time, there is no research on customer expectations. This will be investigated for future updates of the AM Plan. Strategic and Corporate Goals This AM Plan is prepared under the direction of the Corporate Asset Management Strategy which is in alignment with the City of Kitchener's Strategic Plan (2023 — 2026). The City of Kitchener's Strategic Plan was developed with the consultation of residents, community organizations, businesses and councilors. Further to this, the AM Strategy supports the United Nations Sustainability Goals (SDGs) which outline the ways to achieve a better and more sustainable future for all. The City's mission is: "Proudly providing valued services for our community. Our promise to the community is that we'll deliver on the priorities that matter to them: people -friendly transportation, environmental leadership, a vibrant economy, a caring community and great customer service" Strategic goals have been set by the City of Kitchener. The relevant goals and objectives and how these are addressed in this AM Plan are summarised in Table 4.2. Table 4.2: Goals and how these are addressed in this Plan We live in all kinds of neighbourhoods and types of housing. We work Building a together to ensure that we each have Connected City secure and affordable homes. We get Together around easily, sustainably and safely to the places and spaces that matter most to us. We follow a sustainable path to a greener, healthier city. We work Cultivating a together to enhance and protect our Green City parks and natural environment while Together transitioning to a low -carbon future. We support businesses and residents to make more climate -positive choices. Through the development and maintenance of parks, open spaces and trails, the City can maintain an interconnected urban landscape I or pedestrian movement and social interaction. The development and maintenance of parks, open spaces and trails is directly tied to cultivating a green city. The presence of greenery and various plants helps to preserve the natural ecosystem. We welcome residents of all ages, backgrounds and lived experiences. We work together on the decisions that Fostering a matter to us and have a meaningful Parks, open spaces and trails create spaces Caring City influence in our community. We're for social interaction and community Together healthy and thriving as we easily access involvement. the diverse and inclusive programs and services we need to succeed. Page 211 of 428 4.3 4.4 We, the City's employees, are stewards of Kitchener's present and its future. We're responsive, innovative, diverse Stewarding a and accountable public servants who Better City work together efficiently to serve Together residents. We remove barriers and champion residents' collective vision for a better city and a better world. Legislative Requirements The development and maintenance of parks, open spaces and trails allows for sustainable urban living and promotes the overall well- being of the City's residents. There are many legislative requirements relating to the management of assets. Some of the legislative requirements that impact the delivery of the services provided by the City's non-core Parks, Open Spaces and Trails assets are outlined in Table 4.3. This AM Plan is prepared in accordance with O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, which lays out the requirements for Asset Management Plans prepared by municipalities across Ontario and milestones that all municipalities are required to meet. This AM Plan meets the July 1st, 2024, requirements and establishes a framework for meeting the July 1st, 2025, requirements. Please note that this list of legislative requirements for facilities is not exhaustive. Table 4.3: Legislative Requirements Legislation Requirement Establishes strategic, long-term, sustainable plans to manage core and non-core capital infrastructure assets by 2024. The Regulation requires: • Municipal governments to adopt AM Plans for all infrastructure Ontario Regulation 588/17 assets including identifying levels of service and costs of maintaining services. • Municipal governments to set technical metrics and qualitative descriptions for each asset The Accessibility for Ontarians The purpose of the AODA is to develop, implement and enforce with Disabilities Act, 2005 (AODA) standards for accessibility related to goods, services, facilities, employment, accommodation and buildings. Customer Values and Community Levels of Service The LOS discussed in this AM Plan are focused on measures developed to support achievement of the City's higher level strategic priorities and key areas of investment. This AM Plan summarizes the performance on the measures based on the most current data available. The City will determine targets (proposed service levels) per O.Reg.588/17 requirements for Proposed LOS by 2025 and will align service levels with information in other planning documents when determining these targets. As discussed in Section 4.0, service levels are defined in three ways: community levels of service, customer levels of service and technical levels of service. Community LOS are qualitative statements categorized by service values and attributes. Service Values and attributes indicate what aspects of the service is important to the customer. Page 212 o 42 Table 4.4: Service Values and Community LOS In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 213 o 42 Is the service over or under used? Capacity/Use do we need more or less of these assets? Ensure adequate infrastructure to Capacity & Use The service can be used/reached meet growing population and Available at convenient times community needs The service is broad enough that Scope it serves the entire population Services meet customer needs while limiting health, safety, Function security, natural and heritage Provide accessible infrastructure for impacts inclusion and meeting diverse The service is provided in a resident needs Functional Safety manner that protects users from harm Considers future impacts such as Protecting green spaces helps build Resilience climate change that may put climate change resiliency and flood stress on the system. protection for local communities Provide infrastructure in acceptable condition and cleanliness by The standard to which the service Quality following and providing proper Quality & is provided maintenance standards and Reliability inspections Consistently good in quality or Maintain infrastructure proactively Reliable performance -works when minimize unexpected failures service users expect it to work How much does the service cost? Affordable Is it fair and is the service Financial provided worth this cost? Provide infrastructure management services in an efficient and cost- Sustainability Service is provided with effective manner Efficient maximum productivity and minimal wasted effort In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 213 o 42 Table 4.5: Customer Level of Service Measures Services meet # of accessible customer needs playgrounds while limiting # of playgrounds Functional health, safety, achieving CSA security, natural compliance standards and heritage Trails AODA impacts Compliance Provide % of assets within infrastructure in service life acceptable ° �° of playgrounds condition and within service life. cleanliness by Quality & Reliability following and % of sports fields providing within service life. proper % of trails in good maintenance condition or better. standards and 100% See trail inspections inspections results. Metrics which will continue to be monitored by the City in future iterations of the AM Plan include the number of accessible playgrounds, the number of playgrounds complaint with CSA standard, the percentage of assets within service life, the percentage of playground within service life and the percentage of sportsfields within service life. Additionally, based on correspondence with the City of Kitchener, data does not currently exist for AODA compliance trail condition, therefore these measures will be monitored by the City and investigated for future updates of the AM Plan. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data Page 214 of2428 Not Not Not 100% 100% available available available Not Not Not 100% 100% available available available Not Not Not Not 100% available available available available Monitor Not Not Not 66.2% Only available available available Monitor Not Not Not 44.9% Only available available available Monitor Not Not Not 13.9% Only available available available Monitor Not Not Not Not Only available available available available Metrics which will continue to be monitored by the City in future iterations of the AM Plan include the number of accessible playgrounds, the number of playgrounds complaint with CSA standard, the percentage of assets within service life, the percentage of playground within service life and the percentage of sportsfields within service life. Additionally, based on correspondence with the City of Kitchener, data does not currently exist for AODA compliance trail condition, therefore these measures will be monitored by the City and investigated for future updates of the AM Plan. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data Page 214 of2428 availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such as technology and customer priorities and lifestyle trends will change over time. Table 4.6 shows the activities expected to be provided under the current 10 year Planned Budget allocation, and the Forecast activity requirements being recommended in this AM Plan. Table 4.6 uses the same trend identifiers used in the previous section (4.5). Table 4.6: Technical Levels of Service 10mz of Total parkland supply (ha) / Not Not Not Not local parkavailable 1,000 residents available available available per person Population in range of sports fields (average Monitor Not Not Not Not distance to sports field) Only available available available available Population to Sports field Operations Ratio (Number of sports Monitor Not Not Not Not Only available available available available fields per 1,000 population) Report on completion of Not Not Not Not Cycling &Trails Master 100% available available available available Plan recommendations. % of turfs being Monitor Not Not Not Not Artificial Turfs Only available available available available For horticultural assets, report on maintenance Monitor Future Not Not Not requirements, inventory, Only Metric available available available Maintenance needs, current service levels % grass areas cut within Monitor Future Not Not Not scheduled timeframe Only Metric available available available Based on correspondence with the City of Kitchener, data does not currently exist for the above technical levels of service and therefore these measures will be monitored by the City and investigated for future updates of the AM Plan. Page 215 o 42 5.0 FUTURE DEMAND 5.1 Demand Impact and Demand Management Plan Population growth and its geography can have major impacts on the scale of services delivered by the City and the assets that support service delivery. The City's approaches to accommodate growth needs are described in the Official Plan. The 2014 Official Plan provides policies for guiding and directing growth and development to enable the City's success of achieving the vision to be a complete and healthy community. This section focuses on the capital growth expenditures planned by the City to meet growing demands and manage the risks to the service levels. Growth also results in an increasing asset portfolio over the forecast period with associated impacts on the operating budget, discussed further in Section Error! Reference source not found. as part of the Lifecycle Strategy. The population of the City of Kitchener and surrounding areas has been rapidly growing over the past few decades and is expected to continue to grow at a similar pace in the coming years. The City monitors trends in its population to ensure that the associated impacts on service levels are well understood and that strategies are developed to manage risks related to the additional demands due to growth and changes in demographics. The 2014 Official Plan sets out the estimated population and employment forecasts to 2031. Updated forecasts are provided in the City's 2022 Development Charge Study, which forecasts that the City's population will increase from 250,247 in 2021 to 309,120 in 2036 (the current population (2023) is estimated at 270,000). Employment was estimated at 99,662 jobs in 2021, and is expected to reach 123,825 jobs by 2036. Demand drivers are circumstances that may impact future service delivery and use of assets. These drivers can include things such as population change, climate change, regulations, changes in demographics, seasonal factors, consumer preferences and expectations, technological changes, economic factors, environmental considerations, etc. The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.1. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices can include non -infrastructure solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 5.1. Further opportunities will be developed in future revisions of this AM Plan. Table 5.1: Demand Management Plan Population 270,000 (2023) 309,120 (2036)* There may be a limited Expansion and addition of Growth capacity for parks and parks, open spaces, and trails. trails infrastructure. *2022 Development Charge Study 5.2 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 6.4. Acquiring new assets will commit the City of Kitchener to ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operations andmaintenance costs for inclusion in the long-term financial plan (Refer to Section 8). Page 216 o 42 5.3 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets under management and the services they provide. In the context of the Asset Management Planning process, climate change can be considered as both a demand driver and a risk. The City of Kitchener's Corporate Climate Action Plan (CorCAP) is the City's guiding policy document on climate change in accordance with the Region of Waterloo's "A Climate Action Plan for Waterloo Region". The City of Kitchener's mitigation and adaptation strategy for the Corporate Climate Action Plan is to lead by example with action on climate change to reduce corporate greenhouse gas emissions and promote inclusive environmental sustainability and resilience. This supports the City's corporate mission of 'proudly providing valued services for our community, and strategic goals of environmental leadership, by working to ensure we can safeguard the City's assets and stakeholders.' We must consider how to manage our existing assets given potential climate change impacts for our region of Ontario. Risk and opportunities identified to date are shown in Table 5.2. Table 5.2: Managing the Impact of Climate Change on Assets and Services Climate Change Projected Change Potential Impact on Assets Management Description I I and Services More extreme More flooding Physical damage to parks City to continue to monitor precipitation events events assets such as trails and these risks and apply pathways. appropriate adaption strategies. Additionally, the way in which we construct new assets should recognize that there is opportunity to build in resilience and adaptation to climate change impacts. Building Asset Resilience to Climate change for any facilities related to parks, open spaces and trails services have been covered in the Facilities AM Plan. ' Kitchener Changing for Good, Our Climate Strategy Action Plan, Sec 1.1 Page 217 o 42 6.0 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how the City of Kitchener plans to manage and operate the assets at the agreed levels of service (Refer to Section 4) while managing life cycle costs. 6.1 Operations and Maintenance Plan Operations include regular activities to provide services and may not have a direct impact to the overall health of the asset. Examples of typical operational activities include cleaning, asset inspection and supply of power. Maintenance includes all actions necessary for retaining an asset as near as practicable in an appropriate condition including regular ongoing day-to-day work necessary to keep assets operating. As well, maintenance activities strive to ensure that the asset's degradation follows the expected lifecycle rather than accelerating towards an earlier disposal or replacement cycle. Examples of typical maintenance activities include minor repairs. The trend in operations and maintenance budgets are shown in Table 6.1. Table 6.1: Operations & Maintenance Budget Trends Year Budget$ 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 $9,017,758 2022 $9,381,969 2023 $10,104,553 2024 $10,603,443 Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset inventory. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.1 shows the forecast operations and maintenance costs. Page 218 o 42 Figure 6.1: Operations and Maintenance Summary $ 28,000,000 $161000,000 $14,000,000 a $12,000,000 a� ar $10,000,000 3 Y $8,000,000 CL tU y� $6,000,000 $4,000,000 $2,000,000 So ' 2024 2025 2026 2027 2028 2029 2030 2081 2032 2033 All figure values are shown in current year (2023) dollars. The operations and maintenance costs are forecasted to increase over the next 10 years in line with the additional and expanded assets planned to be built. 6.2 Renewal Plan Renewal is typically carried out through major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Table 6.2.1: Renewal Activities 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 To be provided in future version of AM Plan 2022 To be provided in future version of AM Plan 2023 To be provided in future version of AM Plan 2024 $4,406,622 Assets requiring renewal are identified from one of two approaches in the Lifecycle Model. ■ The first method uses Asset Register data to project the renewal costs (current replacement cost) and renewal timing, or Page 219 o 42 ■ The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The useful lives of assets used to develop projected asset renewal forecasts are shown in Table 6.2.2. Table 6.2.2: Useful Lives of Assets Ball Diamond 20 Cricket 20 Lawn Bowling 20 Soccer Field 20 Outdoor Rink 10 Tennis Court 15 Basketball Court 15 Volleyball Court 15 Bike Park 20 Skateboard Park 20 Playground 20 Boardwalk 15 Bridge 30 Shuffleboard Court 15 Disc Field 20 Field Hockey Pitch 20 Dog Park 20 Bike Racks 15 Garbage Containers 10 Huron Natural Area Picnic 15 Shelter Picnic Tables 15 Bollards 15 Benches 15 Trails 30 The estimates for renewals in this AM Plan were based on the asset register data. 6.2.1 Renewal ranking criteria Asset renewals are typically undertaken to either: ■ Ensure the reliability of the existing infrastructure to deliver the expected service it was constructed to, or ■ To ensure the infrastructure is of sufficient quality to meet the service requirements. It is possible to prioritize renewals by identifying assets or asset groups that: Page 220 o 42 ■ Have a high consequence of failure, ■ Have a condition score that is less than the threshold to provide an expected level of service ■ Have high use and subsequent impact on users would be significant, ■ Have higher than expected operational or maintenance costs, and ■ Have potential to reduce life cycle costs by replacement with a modern equivalent asset that would provide the equivalent service. The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.2.1.1. Table 6.2.1.1: Renewal Priority Ranking Criteria Consequence of Failure • Financial Impact • Health & Safety Impact 50% • Service Delivery Impact • Environmental Impact Probability of Failure • Physical Condition Rating 50% • Performance Rating Total 100% 6.3 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset inventory increases, renewal schedules are delayed and/or budgets are reprioritized. The forecast of renewal costs is based on the available inventory data and feedback provided by the City. This analysis incorporates two separate renewal forecasting scenarios; the Unconstrained renewal forecast scenario (which replaces assets as needed at end of life) and the Maintain LOS renewal forecast scenario (which defers the replacement of certain assets in order to maintain the condition profile of assets over the course of the analysis period). Additionally, based on feedback provided by the City, certain assets are funded through the operating budget and have been excluded from the renewal forecast. The forecast costs associated with renewals are shown in Figure 6.3. Page 221 o 42 Figure 6.3: Forecast Renewal Costs Renewal Need (Unconstrained)10-Yr Ave Annual NEED {$4.70 M/yr} (Unconstralned) — Whale of Lifecycle Ave Annual NEED ($4.28 Wyr) 10 -Yr Ave Annual NEED ($4.05 M/yr) (Maintain LOS) $14.0 $12.0 r o $10.0 c $6.0 a x W $4.0 C $2.0 $0.0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Table 6.3: Forecast Renewal Activities 2024 $4,406,622 $11,228,624 $12,697,519 2025 $3,666,846 $3,301,630 $3,305,918 2026 $3,354,222 $3,555,371 $3,547,764 2027 $3,037,086 $3,159,864 $3,180,093 2028 $3,049,332 $3,094,046 $3,245,096 2029 $3,646,064 $3,028,109 $4,050,722 2030 $3,677,675 $3,330,645 $4,110,874 2031 $3,801,696 $3,110,530 $5,808,883 2032 $3,877,730 $3,180,093 $3,621,501 2033 $3,955,286 $3,553,561 $3,460,116 Annual $3,648,256 $4,054,247 $4,702,849 Average Based on workshop input from the City, certain asset types are forecasted using an average annual renewal amount (asset value / service life) because they are repaired over the course of their useful life as opposed to being replaced in their entirety at end of life (i.e. Natural Turf Fields, Trails). Additionally, assets with unknown condition (i.e. missing data on install date and staff reported condition) are forecasted using an average annual renewal amount as well. For these reasons, many of the renewal amounts in the chart above are consistent throughout the analysis period with the exception of certain assets which will need replacement at the end of their service life. Page 222 oV428 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. 6.4.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests; proposals identified by strategic plans or master plans; and partnerships with others. Potential upgrades and new works should be reviewed to verify that they are essential to the Entities needs and fits long range planning. Proposed upgrades and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals by asset Leads can then be ranked by priority and available funds and scheduled in future works programs. Currently, no ranking criteria has been established for the acquisition of parks, open spaces or trails assets, however this will be developed in future revision of this AM Plan. The 2024 — 2033 Capital Plan contains various projects which has been categorized as acquisition (growth) and will serve as a basis for the City's growth needs (i.e. Neighbourhood Park Rehab, Sportsfield Lighting, New Neighbourhood Parks, etc.). Forecast acquisition asset costs are summarized in Figure 6.4. Figure 6.4: Yearly Acquisition Summary $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6.o0o,o0o Z $5,000,000 3 $4,000,000 C7 $3,000,000 $2,000,000 $1,000,000 1111111 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. When the City introduces new assets, there must be a recognition for the need for future operational funding for service, maintenance and renewal costs. Future depreciation must be accounted for when reviewing long term sustainability, lifecycle and total cost of ownership. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the asset steward. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 6.5. Page 223 o 42 $74,000,000 $60,000,000 $50,000,000 w a $44,000,000 2 Z 5 o $30,000,000 $20,000,000 $ ].0,000,000 $n Figure 6.5: Cumulative Acquisition Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The City plans for growth such that there is sufficient community infrastructure and facilities to meet the current and projected needs of the population. Acquiring these new assets will commit the funding of ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.4.3. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The 2024 — 2033 Capital Plan contains various projects which has been categorized as Renewal and will serve as a basis for the City's renewal budget when calculating the renewal gap (i.e. Neighbourhood Park Rehab, Ped Bridges — Inspect & MTCE, Walkway Upgrades, etc.). The bars in the graphs represent the forecast costs needed to cost-effectively allocate the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving balance between costs, levels of service and risk to achieve the best value outcome. Page 224 of3428 Figure 6.4.3: Lifecycle Summary � Rene+waI Need (Uncanstrakned} iiiiiiIGmwth & Upgrade Need —10 -Yr Ave Annual FUNDING ($3.65 M/yr( $ 30.0 $25.0 c 2 $20.0 yr Z7 $15.0 a °n d $10.0 a X $s.0 $0.1) 0&M Need X10 -Yr Ave Annual NEED (S4.70 Mlyr) (Uncmtrained) 10,Yr Ave Annual NEED ($4.05 Mjyr) (Maintain LDS) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Renewal Gap: $0.40M/year (Maintain LOS) I a The operating and maintenance needs covered by the Operating budget is required to increase annually as new assets are acquired. Although there is no current funding shortfall identified for acquisition needs, there is an average annual estimated gap of $0.40 million for renewal needs. 6.5 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Currently, the City has no parks, open spaces or trails assets which have been formally identified for decommissioning and disposal. 6.6 Non -Infrastructure Solutions Non -Infrastructure solutions are infrastructure related costs that may not be associated with any one specific asset in the City's asset registry but are important in the planning and execution of the previous five asset lifecycle categories. Some of the non -infrastructure solutions can include the consultant costs in the creation of a master plan, working with partner organizations, customer surveys, restocking of maintenance vehicles, and inventory updates. Currently, the City has no formal non -infrastructure solutions relating to parks, open spaces or trails assets. Page 225 o 42 7.0 RISK MANAGEMENT PLAN The City of Kitchener is committed to identifying, assessing, and mitigating risks to ensure that corporate objectives are achieved. To this end, the City will maintain a long-term, robust Enterprise Risk Management strategy. Risk management is an integral part of management across the City. It forms part of strategic planning, business planning and project approval procedures. In addition, the policy assists in decision-making processes that will allocate resources to areas of highest risk. Identifying and managing risk is everyone's responsibility and is one component of good corporate governance'. 7.1 Critical Assets Critical assets are defined as those assets that provide life safety and public health and well-being to the community at large based on Provincial standards. Assets found in this category may be included for having a high consequence of failure causing significant loss or reduction of service directly impacting services to the community. Critical assets have been identified as having a consequence of failure rating of 4 or 5. Their typical failure mode, and the impact on service delivery, are summarized in Table 7.1. Failure modes may include physical failure, collapse or essential service interruption. Table 7.1 Critical Assets Bike Parks Skateboard Parks Playgrounds Interruption to service Physical Failure delivery and potential harm Victoria Park Commons or injury to the public Victoria Park Bandstand Huron Natural Area Picnic Shelter By identifying critical assets and failure modes the City can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted to minimize risks. 7.2 Risk Assessment The City of Kitchener has adopted an impact criteria and risk category matrix that quantifies the impact and likelihood criteria and assigns a numerical value to the resulting score. All City risk registers will use this terminology to ensure consistency in understanding across the City's assets. The risk registrar is an assessment process that identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, and development of a risk rating and evaluation of the risk. The City will develop a risk treatment plan for non -acceptable risks as part of future improvement. An assessment of risks associated with service delivery identifies risks that will result in loss or reduction in service, personal injury, environmental impacts, a 'financial shock', reputational impacts, or other consequences. Consequence of failure is determined based on the average rating across the consequence categories in the following matrix: ' City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 226 o 42 Table 7.2 Consequence of Failure Rating Scale Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. The residual risk and mitigation costs of implementing the selected treatment plan is shown in Table 7.4. Page 227 of 428 Damages, losses, Damages, losses, Damages, losses, or Damages, losses, or Damages, losses, or Economic Financial or fines of under or fines of $30,000 -fines of $120,000- fines of $500,000- fines of over $30,000 $120,000 $500,000 $1,000,000 $1,000,000 Potential for serious Potential for serious No obvious Potential for minor injury or affects to injury or affects to Potential for death or Health & potential for injury injury or affects to health of one or health of one or multiple deaths with Social Safety or affects to health of an more individuals with a possibility of short more individuals - probable permanent health. individual. term disability or with a possibility of damage. hospitalization. loss of a life. Small number of Significant localized Major or Critical City-wide or Critical customers Localized service disruption or impact service disruption or service disruption or experience disruption or or there will likely be impact, or there will impact, or there will Service o disruption or impact and minor moderate local likely be significant, likely be significant, Delivery impact and no or no media media exposure negative, local or negative, national or media exposure is exposure is which may last provincial media international media experienced. experienced. several days. exposure which may exposure lasting last several days. several days or weeks. Asset degradation/failure Asset Asset Asset Asset poses risk of degradation/failure degradation/failure degradation/failure degradation/failurehas environmental poses significant risk to has negligible minor impact has significant short - contamination environment including Environmental Environment impact on to the environment term impact to the and/or has a major long-term environment, including potential environment significant long-term impact. Likely to result emissions, and for increased including a likely impact. Likely a in contamination. May pollution. emissions or increase of emissions substantial increase become of Provincial or pollution. or pollution. to emissions or Federal importance. pollution. Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. The residual risk and mitigation costs of implementing the selected treatment plan is shown in Table 7.4. Page 227 of 428 Table 7.4: Risks and Mitigation Plans Poor asset K.M.A.0 condition Renewal work to Skateboard resulting in Very High perform any Moderate Approximately Park potential harm necessary repairs $250,000 or injury to the on the assets public Poor asset condition Playgrounds resulting in High and (various) potential harm Very High or injury to the public Renewal work to Approximately perform any Moderate $25,000 - necessary repairs $50,000 per on the assets playground Note * The residual risk is the risk remaining after the selected risk mitigation plan is implemented. 7.3 Infrastructure Resilience Approach The resilience of our infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to 'withstand a given level of stress or demand', and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership are key components to consistency. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 7.4 Service and Risk Trade -Offs The decisions made in balancing the costs and resource requirements for maintaining expected levels of service to addressing risk are based on the objective to achieve the optimum benefits from the available resources. 7.4.1 Potential Gaps There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.40 million per year) 7.4.2 Service trade-off If there is forecasted work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include: ■ If some of the planned maintenance is not completed, this typically results in more unplanned service disruptions. ■ Deferred capital renewal work may result in lower facility condition that does not meet user expectations and potential facility closures. 7.4.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include: Page 228 of #28 ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. Page 229 of�428 8.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this AM Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 8.1 Financial Sustainability and Projections 8.1.1 Sustainability of service delivery Medium term —10 year financial planning period This AM Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the first 10 years of the planning period to identify any funding shortfall or surpluses. The forecasted operations, maintenance and renewal costs over the 10 year planning period $17.5M on average per year. The proposed (budget) operations, maintenance and renewal funding is $17.1M on average per year giving a 10 year funding shortfall of $0.4M per year. This indicates that 93% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the proposed budget. Note, these calculations exclude acquired assets. 8.1.2 Forecast Costs (outlays) for the long-term financial plan Table 8.1.2 shows the forecast costs (outlays) required for consideration in the 10 year long-term financial plan. Providing services in a financially sustainable manner requires a balance between the forecast outlays required to deliver the agreed service levels with the planned budget allocations in the long-term financial plan. A gap between the forecast outlays and the amounts allocated in the financial plan indicates further work is required on reviewing service levels in the AM Plan (including possibly revising the long-term financial plan). We will manage the 'gap' by developing this AM Plan to provide guidance on future service levels and resources required to provide these services in consultation with the community. Forecast costs are shown in current year (2023) dollar values. Page 230 of 428 Table 8.1.2: Forecast Costs (Outlays) for the Long -Term Financial Plan 2024 $4,904,419 $10,603,443 $11,228,624 $13,609,013 $0 2025 $9,442,670 $11,563,977 $3,301,630 $3,028,102 $0 2026 $4,983,501 $12,070,912 $3,555,371 $5,024,140 $0 2027 $5,969,637 $12,678,159 $3,159,864 $3,621,494 $0 2028 $4,686,610 $13,154,893 $3,094,046 $3,478,329 $0 2029 $5,769,236 $13,741,755 $3,028,109 $3,943,211 $0 2030 $5,882,191 $14,340,107 $3,330,645 $4,245,117 $0 2031 $5,997,835 $14,950,223 $3,110,530 $4,507,953 $0 2032 $6,115,791 $15,572,337 $3,180,093 $3,028,102 $0 2033 $6,236,107 $16,206,690 $3,553,561 $3,645,494 $0 8.2 Funding Strategy The proposed funding for assets is outlined in the City's budget and Long -Term financial plan. The financial strategy of the City determines how funding will be provided, whereas the AM Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. 8.3 Valuation Forecasts 8.3.1 Asset valuations The best available estimate of the value of assets included in this AM Plan are shown below. The assets are valued by various methods based on available information. Replacement Cost (Current) $99.5 million 8.3.2 Valuation forecast Asset values are forecast to increase as additional assets are added. Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. 8.4 Key Assumptions Made in Financial Forecasts In compiling this AM Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions related to the financial forecasts made in this AM Plan are: Acquisition Forecast: o Growth projects are based on projects and associated costs identified in the City's Capital Plan. Page 231 of 428 Renewal forecast: o The potential impacts of climate change on state of good repair costs are not included. o The potential increases in lifecycle costs due to deferred renewal work are not included. o Any assets forecasted using an annuity (asset value / service life) or any assets that are funded through operating are assumed to be maintained in their current condition throughout the analysis period. Operations & Maintenance Forecast o The potential impacts of climate change on maintenance costs are not included. o The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition (growth) forecast. o Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan. 8.5 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale in accordance with Table 8.5.1. Table 8.5.1: Data Confidence Grading System A. Very High Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2% B. High Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Medium Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Low Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Very Low None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 8.5.2. Page 232 of 428 Table 8.5.2: Data Confidence Assessment for Data used in AM Plan The estimated confidence level for and reliability of data used for the financial analysis in this AM Plan is considered to be Medium. Page 233 of 428 Demand Drivers High Population growth was updated in the City's 2022 Development Charges Study. Growth Projections & Medium Based on input from the City, all acquisition (growth) Acquisition Forecast projects in the Capital Plan have been captured in determining the City's acquisition (growth) needs. However, certain capital budget items Operation & Medium Based on input from the City, all cost centres in the Maintenance Operating Budget have captured in determining the City's Forecast operating and maintenance needs. However, certain assumptions have been made regarding allocation of capital budget items to renewal versus growth. Renewal Forecast High Asset values and estimated service lives are based on the best available data and feedback provided by the City. Disposal forecast N/A Disposal strategy is to be developed in future iterations of the AM Plan. The estimated confidence level for and reliability of data used for the financial analysis in this AM Plan is considered to be Medium. Page 233 of 428 9.0 PLAN IMPROVEMENT AND MONITORING 9.1 Status of Asset Management Practices 9.1.1 Accounting and financial data sources This AM Plan does not include the depreciation valuation and therefore does not utilize the City's accounting data source (Tangible Capital Asset data set). 9.1.2 Asset management data sources This AM Plan utilizes asset management data. The source of the data is: • Non -Core Master List of Assets o List of assets included within each service area. 0 2023 current replacement values 0 Other asset attributes such as install year/date, asset ID, etc. • Condition assessments provided by City staff as of the end of 2023. • City of Kitchener 2024-2033 Capital Plan, including forecast of renewal, upgrade and growth projects 9.2 Improvement Plan It is vital in any AM Plan to recognize areas of future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this AM Plan is shown in Table 9.1. Table 9.1: Improvement Plan 1 City to complete the development of asset inventories with appropriate attributes for any additional assets to be included in future iterations of the AM Plan. For example, there is currently no inventory in this AM Plan for signage on trails. 2 City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. 3 City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. 4 City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, Parks Services Parks Services None None Parks Services None Parks Services None 2024-2025 2024 —2025 2024 —2025 2024 —2025 Page 234 of 428 set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. Conduct formal risk assessments to Parks Services Align with 2024-2025 prioritize preventative maintenance corporate risk activities, as well as renewal / capital management investments framework City to continue to develop and update 10- Parks Services None 2024 —2025 year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). 9.3 Monitoring and Review Procedures This AM Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated at a maximum of every 5 years to meet the requirements of O.Reg.588/17 and ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, acquisition and asset disposal costs and planned budgets. Page 235 of 428 10.0 REFERENCES ■ United Nations, Managing Infrastructure Assets for Sustainable Development ■ Kitchener Changing for Good, Our Climate Strategy Action Plan ■ City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 ■ O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure ■ City of Kitchener Places & Spaces — Parks Strategic Plan ■ City of Kitchener Development Charges Study 2022 ■ City of Kitchener Strategic Plan 2023-2026 ■ City of Kitchener Official Plan 2014 Page 236 of 428 Transportation Services Asset Management Plan Current Levels of Service I Document ID : 01 May 1", 2024 Final Draft Submission SLBC BW BW Page 238 of2428 Contents 1.0 EXECUTIVE SUMMARY 5 1.1 The Purpose of the Plan..........................................................................................................................5 1.2 Asset Description....................................................................................................................................5 1.3 Levels of Service......................................................................................................................................6 1.4 Future Demand.......................................................................................................................................6 1.5 Lifecycle Management Plan....................................................................................................................6 1.6 Financial Summary..................................................................................................................................7 1.7 Asset Management Planning Practices...................................................................................................8 1.8 Monitoring and Improvement Program.................................................................................................8 2.0 INTRODUCTION 9 2.1 Assets Included in this Plan.....................................................................................................................9 2.2 Provincial Asset Management Requirements.........................................................................................9 2.3 Asset Management at the City of Kitchener.........................................................................................10 3.0 STATE OF LOCAL INFRASTRUCTURE 14 3.1 Background Data..................................................................................................................................14 3.2 Asset Registry Completeness & Assumptions.......................................................................................18 4.0 LEVELS OF SERVICE 20 4.1 Customer Research and Expectations..................................................................................................22 4.2 Strategic and Corporate Goals..............................................................................................................22 4.3 Legislative Requirements......................................................................................................................22 4.4 Customer Values and Community Levels of Service.............................................................................23 4.5 Customer Levels of Service...................................................................................................................24 4.6 Technical Levels of Service....................................................................................................................25 5.0 FUTURE DEMAND 27 5.1 Demand Impact and Demand Management Plan................................................................................27 5.2 Asset Programs to meet Demand.........................................................................................................27 5.3 Climate Change Adaptation..................................................................................................................28 6.0 LIFECYCLE MANAGEMENT PLAN 29 6.1 Operations and Maintenance Plan.......................................................................................................29 6.2 Renewal Plan........................................................................................................................................30 6.3 Summary of future renewal costs.........................................................................................................32 6.4 Acquisition Plan....................................................................................................................................33 6.5 Disposal Plan.........................................................................................................................................36 Page 239 oV428 6.6 Non -Infrastructure Solutions................................................................................................................36 7.0 RISK MANAGEMENT PLAN 37 7.1 Critical Assets........................................................................................................................................37 7.2 Risk Assessment....................................................................................................................................37 7.3 Infrastructure Resilience Approach......................................................................................................39 7.4 Service and Risk Trade -Offs ..................................................................................................................39 8.0 8.1 8.2 8.3 8.4 8.5 FINANCIAL SUMMARY Financial Sustainability and Projections ................ Funding Strategy .................................................... Valuation Forecasts ............................................... Key Assumptions Made in Financial Forecasts...... Forecast Reliability and Confidence ....................... 9.0 PLAN IMPROVEMENT AND MONITORING 44 9.1 Status of Asset Management Practices................................................................................................44 9.2 Improvement Plan................................................................................................................................44 9.3 Monitoring and Review Procedures.....................................................................................................45 10.0 REFERENCES 46 Page 240 of 428 1.0 EXECUTIVE SUMMARY 1.1 The Purpose of the Plan This City of Kitchener Non-core Transportation Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to maintain current levels of service in a cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required over a 10 -year planning period. The AM Plan will link to a Long -Term Financial Plan which typically considers a 10 -year planning period. 1.2 Asset Description This plan covers the non-core infrastructure assets that provide transportation services. The largest portion of the asset mix are Streetlights & Poles with a replacement value of $35.8M and Road and Pedestrian Islands & Traffic Calming with a replacement value of $14.9M. These two categories of assets account for approximately 87% of the total replacement value of all transportation assets. Note that traffic signals and poles are not included in this AM Plan as they are owned and operated by the Region of Waterloo. The infrastructure assets covered by this AM Plan are shown in Table 1.1. Streetlights & Poles Traffic Signs & Pedestrian Crossings Pedestrian Railings & Guiderails Road and Pedestrian Islands & Traffic Calming Street Furniture & Other Furnishings TOTAL Table 1.1: Assets covered by this Plan Streetlight, Streetlight Pole $35,785,477 Traffic Signs, Pedestrian Crossings & Beacons $6,144,500 Guiderail, Railing $1,644,872 Road Islands, Raised Crosswalks, Speed Humps, Pedestrian Pads $14,912,579 Street Benches, Bollards $85,100 $58,572,528 The above infrastructure assets have replacement value estimated $58.6 million with a breakdown of this value shown in Figure 1.1. Page 241 of 428 Figure 1.1: Asset Valuation Pedestrian Railings & Guiderails 1,644,872 2.8% Traffic Signs & Pedestrian Crossings $6,144,500 10.5% Street Furniture & Other Furnishings $85,100 0,1/ 1.3 Levels of Service The allocation in the planned budget is insufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. However, service levels and associated targets will continue to be formalized and monitored for future iterations of the AM Plan. 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are created by: ■ Population growth These demands will be approached using a combination of managing existing assets, upgrading existing assets and providing new assets to meet demand. Demand management practices may also include a combination of non -asset solutions, insuring against risks and managing failures. ■ City to continue to forecast and manage developer provided non-core transportation assets to support lifecycle management and budgeting. 1.5 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan includes operation, maintenance and renewal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10 -year total outlays, which for the non-core transportation portfolio is estimated as $32.6 million or $3.26 million on average per year. Page 242 of 428 1.6 Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 year period is 30.1 million or $3.01 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 92% of the cost to sustain the current level of service at the lowest lifecycle cost. The infrastructure reality is that only what is funded in the long-term financial plan can be provided. The Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for non-core transportation leaves a shortfall of $0.25 million on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long -Term Financial Plan. This is shown in the figure below. Figure 1.2: Lifecycle Summary . Renewal Need (Unconstrained) . D&M Need Growth& Upgrade Need —1D•Yr Ave Annual NEED ($17.55 M/yrl (Unconstrained) —S0 -Yr Ave Annual FUNDING ($0.30 M/yr) $4.5 $4.0 $3.5 $ 3.0 $2.5 $ 2.0 $1.5 $0.5 $ 0.0 2024 2025 2026 2027 2028 2029 20310 2031 2032 2033 Figure Values are in current year (2023) dollars. We plan to provide non-core transportation services for the following: Renewal Gap: $0.25m/year i r ■ Operation, maintenance, renewal and acquisition of transportation assets to meet service levels set by the City in annual budgets. ■ New and expanded assets are included in the next 10 -year planning period based on projects listed in the 2024-2033 Capital Plan. 1.6.2 Infrastructure Gap We currently do not allocate enough budget to sustain these services at the proposed standard or to provide all new services being sought. Works and services that cannot be provided under present funding levels are: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.25 million per year) 1.6.3 Managing the Risks Our present budget levels are insufficient to continue to manage risks in the medium term. The main risk consequences are: ■ An increase in unplanned repairs and associated service disruptions. Page 243 of'428 ■ Higher lifecycle management costs and deteriorating assets. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. We will endeavor to manage these risks within available funding by: ■ Continue to apply a risk-based approach to capital planning to focus available funding on critical projects. ■ Pursue available grants from higher levels of government. 1.7 Asset Management Planning Practices Key assumptions made in this AM Plan are: Assumptions were made regarding the estimated service life of certain assets. The estimated service lives for Pedestrian Crossings, Street Benches and Bollards were assumed to be 15 years. Based on feedback provided by the City, 50% of the streetlight (lighting element) inventory is assumed to be in Very Good condition and the remaining 50% is assumed to be in Good condition due to a recent project undertaken by the City to replace all street light elements. Assets requiring renewal are identified from the asset register method. ■ The timing of capital renewals based on the asset register is applied by adding the useful life to the year of acquisition or year of last renewal; Or Alternatively, an estimate of renewal lifecycle costs is projected from external condition and may be supplemented with, or based on, expert knowledge. This AM Plan is based on a low level of confidence information. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are: ■ City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. ■ City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. ■ City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. ■ Conduct formal risk assessments to prioritize preventative maintenance activities, as well as renewal / capital investments. • City to continue to develop and update 10 -year forecast of lifecycle activities based on formalized/update levels of service, formal risk assessments and updated asset information (as applicable). Page 244 of 428 2.0 INTRODUCTION The City of Kitchener (the City) is in Waterloo Region, in the heart of southwestern Ontario. The City covers an area of 137 square kilometers and has a population of approximately 270,000; making it the largest City in the Region and the Grand River Watershed alike. The City has been designated as a growth area through the Provincial Growth Plan: Places to Grow, and has seen significant population growth that is expected to continue through the next decade. The City owns and maintains assets that provide a wide range of services between City departments and to its residents. This Asset Management Plan (AM Plan) will communicate the requirements for the sustainable delivery of services through efficient management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the planning period. The Plan has been prepared in accordance with Ontario Regulation 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation lays out the requirements for all AM Plans, as well as deadlines to meet to certain milestones. This iteration of the AM Plan meets requirements for Current Levels of Service. 2.1 Assets Included in this Plan This AM Plan covers non -facilities, non-core transportation assets for which the City is responsible for lifecycle management. Any facilities associated with transportation services have been covered in the Facilities AM Plan. Additionally, core transportation assets are included in a separate Roads, Bridges and Culverts AM Plan. The infrastructure assets included in this plan have a total replacement value of $58.6 million. Figure 2.1 — City of Kitchener Non -Core Transportation Asset Condition and Value Unknown $30,633,067 52% 14 Very Good $4,790,620 8% Good $12,121,427 21% 2.2 Provincial Asset Management Requirements Fair $3,128,875 6% Poor $2,427,995 Very Poor 4% $5,470,544 9% The Province of Ontario requires all municipalities that seek provincial infrastructure funding have an asset management plan, or plans, in place. To encourage a similar approach across municipalities, in 2012 the province introduced Building Together: Guide for Municipal Asset Management Plans, which defined the key components of an effective asset management plan. More recently in 2017, the province approved O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation mandates the Page 245 of 428 W development of an asset management policy, asset management plans, and their content. Additionally, milestones are included for when municipalities must fulfill certain requirements, outlined below in Figure 2.2. Figure 2.2 - O.Reg 588/17 Milestones July 1st ■ • The City's first AhJI Policy was completed in 2012, and most recently Strategy' updated in 2024. The Policy outlines the goats and objectives of asset Policy management within the Organization. At the City, Core AMPs prepared in accordance with O Reg 588/17 July Ist 2022 include Water, Wastewater, Stormwater, Roads & Traffic, Bridges & Core AM Ps Culverts, and Gas. These AMPS must document current Levels of Service and the cost to maintain them. July Ist 2024 Non-core AMPS will include Facilities, Cemeteries, Parking, Parks, Open IIF Spaces & Trails, Golf, Forestry, Transportation and fleet. These AMPS Non-core •MPs must document current Levels of Service and the cost to maintain them. July 1st 2025 1 1 19 By this time, the City is required to have an approved AMP for all assets Proposed Levels that builds upon the 2022 and 2024 requirements. These AMPS must document proposed Levels of Service, what activities will be required to ' ti meet them, and a strategy to fund them. Asset Management at the City of Kitchener The City of Kitchener has been practicing sound asset management planning for at least 15 years, starting with the introduction of Public Sector Accounting Board (PSAB) legislation. Since 2007, several efforts have resulted in well-established asset management programs and procedures, as well as the inclusion of a dedicated Asset Management Division in the City's corporate structure. Figure 2.3 below outlines some key milestones in the City's asset management journey. Kitchener City Council adopted the most recent Corporate Asset Management Strategy in 2016. The goals outlined in the strategy are to extend the useful life of all assets, in the most cost-effective way, while managing risk and meeting the agreed upon levels of service. The AM Plan is a key tactical (medium-term) planning document that relies on input from strategic planning activities and informs shorter -term decision making. The AM Plan provides a framework to validate the City's budgeting processes and assist in prioritizing work activities, including capital projects, based on risk. It discusses levels of service that also support goals in the 2023 to 2026 Strategic Plan and lifecycle management strategies intended to reduce the overall cost of asset ownership. Page 246 o 42 Figure 2.3 - City of Kitchener Asset Management Timeline 2007 2004 2010 2011 2012 2013 2017 Procurement Development Establishment Council Development Development Introduction of City's of Corporate of an asset approves the of two pilot of water, of O.Reg maintenance Asset management City's first AMPS sanitary and 588/17 - Asset management Management program asset (pavement storm AMPS Management Strategy system, coordinator and management and the AUD) planning for CityWorks office policy Municipal Infrastructure 2.3.1 Corporate Asset Management System An asset management system should aim to achieve a line of sight between corporate strategic goals outlined in the strategic plan, and operational plans, policies and procedures, as illustrated in Figure 2.4. Two guiding documents in this system are the Asset Management Strategy and Asset Management Policy, most recently updated in 2016 and 2024, respectively. The Asset Management Policy defines the intent, scope and principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. Section 5.3 — Climate Change Impacts of this AM plan discusses these impacts specific to the City and strategies to build and maintain assets through the lens of resiliency, sustainability, adaptation, and mitigation. The Asset Management Strategy defines how the principles of the policy will be put into practice and the three guiding principles of asset management at the City of Kitchener which are to: 1 Balance asset condition and levels of service, 2 Allocate financial resources among priorities and, 3 Shift how we do business — such as introducing programs to support the requirement for high-quality data services. Figure 2.4 - City of Kitchener Asset Management System In addition to the Asset Management Strategy and Policy, this AMP should be read in conjunction with other planning documents relevant to non-core assets, outlined in Table 2.1 below. Page 247 of 428 Table 2.1: Key Planning Documents D. I. 2023-2026 Corporate Strategic Plan The document outlines the strategic goals that are to be championed by Council and staff across the City. The Official Plan is a legal document that contains goals, objectives and policies to manage and direct physical and land use change and Official Plan (2014) their effects on the cultural, social, economic and natural environment within the City. This Plan provides a framework for decision-making and plays several essential roles in the future planning of the City. The AM strategy outlines the Asset Management program at the Corporate Asset Management City, the three guiding principles of where the program intends to go, Strategy (2016) and the value gained by forming consistent practices throughout the asset groups. Corporate Asset Management Policy The Asset Management Policy defines the intent, scope and (2024) (currently being updated) principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. The City's Corporate Climate Action Plan aims to achieve meaningful Kitchener, Changing for Good - and measurable carbon emission reductions throughout its Corporate Climate Action Plan (2019) operation, while also adapting to impacts resulting from climate change. Under Ontario Regulations 25/23, public sector agencies in Ontario Energy Conservation & Demand must report annual energy consumption and develop a five - year Management Plan (2019-2023) conservation and demand management plan intended to reduce energy consumption and greenhouse gas emissions. The DC Study includes preparing a development forecast, Development Charges Background establishing historical service levels, determining the increase in Study (2022) need for services arising from development and appropriate shares of costs and attribution to development types (residential and non- residential). Key stakeholders in the preparation and implementation of this AM Plan are shown in Table 2.2 Page 248 o 42 Table 2.2 - Key Stakeholders in the AM Plan 0 City Council are the overall owners of the City's assets. Council approves asset management policies and asset funding allocation through the City of Kitchener Elected Council annual corporate budget process. An overarching expectation of a standard of care is required by Council to ensure commitment to effective asset Management practices. The Leadership Team provides corporate oversight to the program to Corporate Leadership Team ensure that the goal and directions of the Corporate Asset Management program are maintained, and the program remains consistent with the overall Strategic Plan. This committee provides leadership and strategic direction for supporting systems/processes specific to the delivery of asset/work management information for the City of Kitchener. Further, in support of Asset Management Steering the city-wide asset management strategies, the committee provides Committee leadership and governance to the Asset Management Policy statement through the provision of information necessary for the long-range forecasts of asset investment needs, services levels, risks, costs and other performance measures. Community Services is a department of the City and is responsible for the Community Services operation and maintenance of community centres, swimming pools, arenas, sports facilities, as well as the Kitchener Fire Department stations. The Finance division within Financial Services prepares an annual operating budget and 10 -year capital forecast for Council's Finance consideration. The annual budget helps identify the spending plans and priorities for the City for the upcoming year and is informed by the City's Strategic Plan, various master plans, and feedback from the community. Page 249 o 42 2.3.2 Asset Management Plan Methodology The information presented in the AM Plan is based on O.Reg. 588/17 requirements, the Guide for Municipal Asset Management Plans, originally issued by the Ontario Ministry of Infrastructure, and leading asset management practices. Costs and replacement values in this AM Plan are estimated in 2023 dollars. The AM Plan was developed by SLBC Inc. in collaboration with City staff through: • Review of background materials available on the City's web site and provided by the City's project team including asset inventories, planning documents, and budgets • Workshops with internal stakeholders • Various interim meetings with the City's project team • Numerous data and information transfers • Review of interim outputs by the City's project team and other stakeholders, and incorporation of comments into the final AM Plan Page 250 o 42 3.0 STATE OF LOCAL INFRASTRUCTURE 3.1 Background Data 3.1.1 Asset inventory and valuation A mix of assets support the delivery of the City's transportation services. The non-core transportation assets covered by this AM Plan are shown in Table 3.1.1. Core transportation assets are included in a separate Roads, Bridges and Culverts AM Plan. All table and figure values are shown in current year (2023) dollars. The largest portion of the asset mix are Streetlights & Poles with a replacement value of $35.8M and Road and Pedestrian Islands & Traffic Calming with a replacement value of $14.9M. These two categories of assets account for approximately 87% of the total replacement value of all transportation assets. Note that traffic signals and poles are not included in this AM Plan as they are owned and operated by the Region of Waterloo. Streetlights & Poles Traffic Signs & Pedestrian Crossings Pedestrian Railings & Guiderails Road and Pedestrian Islands & Traffic Calming Street Furniture & Other Furnishings TOTAL Table 3.1.1: Assets covered by this Plan Streetlight, Streetlight Pole $35,785,477 Traffic Signs, Pedestrian Crossings & Beacons $6,144,500 Guiderail, Railing $1,644,872 Road Islands, Raised Crosswalks, Speed Humps, Pedestrian Pads $14,912,579 Street Benches, Bollards $85,100 $58,572,528 The asset valuation distribution for this AM Plan is shown in Figure 3.1.1 and the age profile of the assets included in this AM Plan are shown in Figure 3.1.2. Page 251 o 42 Figure 3.1.1: Asset Valuation Pedestrian Railings & Guiderails $1,644,872 2.8% gad & Pedestrian slands & Traffic Calming $14,912,579 25.5% Traffic Signs & Pedestrian Crossings $6,144,500 10.5% Street Furniture & Other Furnishings $85,100 0.136 Figure 3.1.2: Asset Age Profile ■Age within Service Life Estimated Service life ■ Age Beyond Service Life Street Benches ' 1 Road Islands Pedestrian Crowing JJU Streetlight 0 10 20 30 40 50 60 Vea r Notes on the above Asset Age Profile: ■ Streetlight Poles, Guiderails, Railings, Raised Crosswalks, Speed Humps, Bollards, Pedestrian Pads and Traffic Signs are not included because they are missing information on age and condition. ■ Due to the lack of age and condition data, it is difficult to make a comprehensive assessment of the City's transportation assets. However, the remaining assets are still within their estimated service life. Page 252 o 42 3.1.2 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.1.2. Streetlights & Poles Traffic Signs & Pedestrian Crossings Pedestrian Railings & Guiderails Road and Pedestrian Islands & Traffic Calming Street Furniture & Other Furnishings 3.1.3 Asset capacity and performance Table 3.1.2: Asset Service Hierarchy The primary objective of the City's streetlights and poles are to illuminate the roadways and sidewalks for the safety of drivers and pedestrians. The primary objective of the City's traffic signs and pedestrian crossings are to provide accurate information to drivers and pedestrians and direct traffic in a safe and efficient manner. Pedestrian railings and guiderails provide safety for pedestrians by guiding pedestrian traffic aiding those with mobility issues. The primary objective of these assets is to provide effective traffic flow management. It also ensures pedestrian safety by reducing the speed of vehicles in certain residential and commercial areas. The primary objective of these assets is to enhance the walkability of the City and help to regulate road traffic. Assets are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table 3.1.3. Table 3.1.3: Known Service Performance Deficiencies The Complete Streets Kitchener program (2019) outlined the need to better design and manage curbside areas as they become highly contested as the City Curbside Management grows. It is crucial to provide designated delivery and ridesharing locations as well as managing parking more effectively. There is potential for a service deficiency in the future if left unaddressed. The City of Kitchener Vision Zero Strategy (2021) outlined the City averages one Collision Analysis fatality per year on their streets and data shows that vulnerable road users are disproportionately represented in injury of fatal collisions. Implementation of objectives in the Vision Zero Strategy are crucial for the safety of the residents. The above service deficiencies were identified from the Complete Streets Kitchener program (2019), City of Kitchener Vision Zero Strategy (2021) and workshop correspondence with the City of Kitchener. 3.1.4 Asset condition Assets can be inspected and monitored through various means. The City employs both internal staff and contractors to perform inspections of City owned assets. The results of these inspection programs provide the City with meaningful empirical data that can be used to gauge the condition of assets and needs for asset maintenance or renewal. The cost for these assessments can be found in the Operational costs shown in section 6.1 of this AM Plan. Page 253 of1428 Table 3.1.4: Assessments Traffic Calming Formal Traffic Calming Review Once per year Condition is measured using a 1— 5 grading system as detailed in Table 3.1.5. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level; however, for reporting in the AM Plan results are translated to a 1— 5 grading scale for ease of communication. Table 3.1.5: Condition Grading System 1— Very Good free of defects, only planned and/or routine maintenance required 2 — Good minor defects, increasing maintenance required plus planned maintenance 3 — Fair defects requiring regular and/or significant maintenance to reinstate service 4 — Poor significant defects, higher order cost intervention likely 5 — Very Poor physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.1.4. Figure 3.1.4: Asset Condition Profile Unknown $30,633,067 52% Very Goad $4,790,620 8% Good $12,121,427 21% All figure values are shown in current year (2023) dollars. Fair $3,128,875 6% Poor $2,427,995 Very Poor 4% $5,470,544 9% The condition assessment of the City's transportation assets provides some perspective on the overall reliability of its infrastructure. Due to the lack of age and condition data available from Enova regarding Page 254 o 42 streetlights & light poles (largest asset type by replacement value), it is difficult to provide a comprehensive analysis. The City will reassess needs once more comprehensive age or condition data is available for these assets with unknown condition. 3.2 Asset Registry Completeness & Assumptions In compiling this AM Plan, a thorough review of the asset registries was performed. The purpose of this review was to identify whether all asset categories under the leadership and stewardship of the responsible stakeholders are represented in a singular or combined asset registry. The review also looks to ensure that for those registries that do exist, fields that are critical to the assets' lifecycle and financial management are populated with accurate values. These values will provide the basis for meaningful asset management planning. The following categories have been employed to assess the completeness of asset registries: Table 3.2: Asset Registry Rating Categories Data based on sound records, procedures, investigations and analysis, documented Good properly but may have minor shortcomings. Dataset is complete and estimated to be accurate ± 10%. Data based on sound records, procedures, investigations and analysis which is incomplete Fair or unsupported, or extrapolated from a limited sample. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% Poor Dataset may not exist or be fully complete, and most data is estimated or extrapolated Table 3.3: Asset Registry Assessment Streetlights Fair Good Good Poor Poor Poor Good & Poles Traffic Signs & Pedestrian Fair Good Good Poor Poor Poor Good Crossings Pedestrian Railings & Fair Good Good Poor Poor Poor Good Guiderails Road and Pedestrian Islands & Fair Good Good Fair Fair Fair Good Traffic Calming Street Furniture & Fair Good Good Fair Fair Fair Good Other Furnishings Page 255 o 42 Where asset registries are missing critical data or fields are found to be incomplete, there may be assumptions of the data that have to be made to complete this AM Plan. While these assumptions are listed below, they will be put into more context as needed through this AM Plan. ■ Assumptions were made regarding the estimated service life of certain assets. The estimated service lives for Pedestrian Crossings, Street Benches and Bollards were assumed to be 15 years. ■ Based on feedback provided by the City, 50% of the streetlight (lighting element) inventory is assumed to be in Very Good condition and the remaining 50% is assumed to be in Good condition due to a recent project undertaken by the City to replace all street light elements. Page 256 o 42 4.0 LEVELS OF SERVICE In the State of Infrastructure Section, the value, age, and condition of the City's infrastructure assets were discussed. The Levels of Service (LOS) chapter builds on the State of Infrastructure by defining the performance the City's assets are intended to deliver over their service lives. LOS are statements that describe the outputs and objectives the City intends to deliver to its residents, businesses, and other stakeholders. In general, LOS are guided by a combination of customer expectations, legislative requirements, internal policies and procedures, and affordability. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, performance levels, and timeframes to achieve performance levels, such that the activities and costs to deliver the documented LOS can be determined. Figure 4.1 shows the LOS framework and line of sight from higher-level Corporate priorities to detailed asset - specific Technical LOS. Corporate commitments and legislated LOS guide the development of Community LOS. The Community LOS outline the services that the assets need to deliver to the City's residents and businesses. Community LOS can be categorized into one of the following service attributes: • Capacity & Use: Services have enough capacity and are available to customers • Function: Services meet customer needs while limiting health, safety, security, natural and heritage impacts • Quality & Reliability: Services are reliable and responsive to customers • Financial Sustainability: Services are affordable and provided at the lowest cost Community LOS are translated into Customer LOS, which measure services from a resident/business perspective, and Technical LOS that define asset performance levels. These LOS in turn define asset needs and drive the required lifecycle activities and associated funding to mitigate risks, as follows: • Capacity & Use LOS inform Acquisition needs • Function LOS inform Upgrade needs • Quality & Reliability LOS inform Renewal, Operations and Maintenance needs • Financial Sustainability LOS inform Funding needs This Line of Sight shows how the day-to-day management of City assets supports the achievement of higher- level strategic priorities. Page 257 o 42 a C 41 V C p Z7 3 D 6 w C 0 Lm•0 4D..`_ a#a o—xm .? 4.1 4.2 4.3 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the City of Kitchener. Future revisions of the AM Plan will incorporate customer consultation on service levels and costs of providing the service. This will assist Council and stakeholders in matching the level of service required, service risks and consequences with the customer's ability and willingness to pay for the service. At this time, there is no research on customer expectations. This will be investigated for future updates of the AM Plan. Strategic and Corporate Goals This AM Plan is prepared under the direction of the Corporate Asset Management Strategy which is in alignment with the City of Kitchener's Strategic Plan (2023 — 2026). The City of Kitchener's Strategic Plan was developed with the consultation of residents, community organizations, businesses and councilors. Further to this, the AM Strategy supports the United Nations Sustainability Goals (SDGs) which outline the ways to achieve a better and more sustainable future for all. The City's mission is: "Proudly providing valued services for our community. Our promise to the community is that we'll deliver on the priorities that matter to them: people -friendly transportation, environmental leadership, a vibrant economy, a caring community and great customer service" Strategic goals have been set by the City of Kitchener. The relevant goals and objectives and how these are addressed in this AM Plan are summarised in Table 4.2. Table 4.2: Goals and how these are addressed in this Plan We live in all kinds of neighbourhoods and types of housing. We work Building a together to ensure that we each have Connected City secure and affordable homes. We get Together around easily, sustainably and safely to the places and spaces that matter most to us. We, the City's employees, are stewards of Kitchener's present and its future. We're responsive, innovative, diverse Stewarding a and accountable public servants who Better City work together efficiently to serve Together residents. We remove barriers and champion residents' collective vision for a better city and a better world. Legislative Requirements Maintaining and enhancing the City's transportation infrastructure plays an important role in building a connected city. This infrastructure supports road networks and pedestrian travel which allows for efficient mobility of residents. Investing in infrastructure upgrades and innovations that promote safety and accessibility aligns with the goal of stewarding a better city together. There are many legislative requirements relating to the management of assets. Some of the legislative requirements that impact the delivery of the services provided by the City's non-core transportation assets are outlined in Table 4.3. This AM Plan is prepared in accordance with O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, which lays out the requirements for Asset Management Plans prepared by municipalities across Ontario and milestones that all municipalities are required to meet. This AM Plan meets the July 1st, 2024, requirements and establishes a framework for meeting the July 1st, 2025, requirements. Please note that this list of legislative requirements is not exhaustive. Page 259 of 428 Table 4.3: Legislative Requirements Legislation Requirement Establishes strategic, long-term, sustainable plans to manage core and non-core capital infrastructure assets by 2024. The Regulation requires: • Municipal governments to adopt AM Plans for all infrastructure Ontario Regulation 588/17 assets including identifying levels of service and costs of maintaining services. • Municipal governments to set technical metrics and qualitative descriptions for each asset The Accessibility for Ontarians The purpose of the AODA is to develop, implement and enforce with Disabilities Act, 2005 (AODA) standards for accessibility related to goods, services, facilities, employment, accommodation and buildings. Technical Standards and Safety Facilities must comply with technical standards and safety regulations Act, 2000 depending on the industry or equipment they include, such as street lights and traffic signals. Establishes minimum standards for road and highway maintenance for Ontario Regulation 239/02, all municipalities. MMS regulations pertain to various elements of road Minimum Maintenance repair and maintenance, such as the frequency of road inspections, Standards (MMS) weather monitoring, ice formation on roadways, snow accumulation, and sidewalk trip ledges. 4.4 Customer Values and Community Levels of Service The LOS discussed in this AM Plan are focused on measures developed to support achievement of the City's higher level strategic priorities and key areas of investment. This AM Plan summarizes the performance on the measures based on the most current data available. The City will determine targets (proposed service levels) per O.Reg.588/17 requirements for Proposed LOS by 2025 and will align service levels with information in other planning documents when determining these targets. As discussed in Section 4.0, service levels are defined in three ways: community levels of service, customer levels of service and technical levels of service. Community LOS are qualitative statements categorized by service values and attributes. Service Values and attributes indicate what aspects of the service is important to the customer. Page 260 o 42 Table 4.4: Service Values and Community LOS Capacity/Use Capacity & Use Available Scope Function Functional Safety Resilience Is the service over or under used? do we need more or less of these assets? The service can be used/reached at convenient times The service is broad enough that it serves the entire population Services meet customer needs while limiting health, safety, security, natural and heritage impacts The service is provided in a manner that protects users from harm Considers future impacts such as climate change that may put stress on the system. Ensure adequate infrastructure to meet growing population and community needs Provide accessible infrastructure for inclusion and meeting diverse resident needs Upgrade and standardize outdoor lighting to LED technology. Provide infrastructure in acceptable In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 261 o 42 condition and cleanliness by The standard to which the service Quality following and providing proper Quality & is provided maintenance standards and Reliability inspections Consistently good in quality or Maintain infrastructure proactively Reliable performance -works when minimize unexpected failures service users expect it to work How much does the service cost? Affordable Is it fair and is the service Financial provided worth this cost? Provide infrastructure management services in an efficient and cost- Sustainability Service is provided with effective manner Efficient maximum productivity and minimal wasted effort In the following sections for Customer and Technical LOS, under each relevant service value, there is a summary of the performance measure being used, the current and past performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. The trends that are identified show both the nature of the trend; up, down or on par, while identifying by colour if the trend is positive, neutral, or negative relative to the service that is being delivered. For example: 4 Indicates an upwards trend that is seen as positive in the delivery of the service relative to the target level of service. 4 Indicates an upwards trend that is seen as neutral in the delivery of the service relative to the target level of service. Indicates an upwards trend that is seen as negative in the delivery of the service relative to the target level of service. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 261 o 42 Table 4.5: Customer Level of Service Measures Provide infrastructure in % assets acceptable condition and within in service Quality & cleanliness by following and life(by Monitor Not 91.3* Not Not Reliability providing proper Only available available available maintenance standards and replacement value) inspections *Note that the performance measure of assets within service life is not a comprehensive analysis as various assets are missing age and condition data and have been excluded from this calculation. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided. Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. In most cases, Technical LOS have been measured and reported on over the past three years. By comparing the LOS for the current year against that of previous years, a trend can be identified and qualified. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. It is acknowledged changing circumstances such as technology and customer priorities and lifestyle trends will change over time. Table 4.6 shows the activities expected to be provided under the current 10 year Planned Budget allocation, and the Forecast activity requirements being recommended in this AM Plan. Table 4.6 uses the same trend identifiers used in the previous section (4.5). Page 262 o 42 Table 4.6: Technical Levels of Service Sufficient data is currently unavailable for the technical levels of service listed above, however these metrics will continue to be monitored by the City for inclusion in future iterations of the AM Plan. Page 263 of2428 # of overall collisions on Monitor Future Not Not Not City -owned roads Only Metric available available available Operations # of Injury or Death Monitor Not Not collisions on City -owned 101 77 Only available available roads # of permanent road Monitor Future Not Not Not safety improvements Only Metric available available available installed per year % of street reconstruction projects having a Complete Streets Scorecard completed at 100% Future Not Not Not Metric available available available the design Upgrade stage (Complete Streets Guidelines) % completion of recommendations Future Not Not Not 100% from Cycling and Trails Metric available available available Master Plan % completion of Future Not Not Not recommendations 100% Metric available available available from Vision Zero Strategy % of regulatory signs Future Not Not Not Operations passing sign reflectivity 100% Metric available available available testing standards Sufficient data is currently unavailable for the technical levels of service listed above, however these metrics will continue to be monitored by the City for inclusion in future iterations of the AM Plan. Page 263 of2428 5.0 FUTURE DEMAND 5.1 Demand Impact and Demand Management Plan Population growth and its geography can have major impacts on the scale of services delivered by the City and the assets that support service delivery. The City's approaches to accommodate growth needs are described in the Official Plan. The 2014 Official Plan provides policies for guiding and directing growth and development to enable the City's success of achieving the vision to be a complete and healthy community. This section focuses on the capital growth expenditures planned by the City to meet growing demands and manage the risks to the service levels. Growth also results in an increasing asset portfolio over the forecast period with associated impacts on the operating budget, discussed further in Section Error! Reference source not found. as part of the Lifecycle Strategy. The population of the City of Kitchener and surrounding areas has been rapidly growing over the past few decades and is expected to continue to grow at a similar pace in the coming years. The City monitors trends in its population to ensure that the associated impacts on service levels are well understood and that strategies are developed to manage risks related to the additional demands due to growth and changes in demographics. The 2014 Official Plan sets out the estimated population and employment forecasts to 2031. Updated forecasts are provided in the City's 2022 Development Charge Study, which forecasts that the City's population will increase from 250,247 in 2021 to 309,120 in 2036 (the current population (2023) is estimated at 270,000). Employment was estimated at 99,662 jobs in 2021, and is expected to reach 123,825 jobs by 2036. Demand drivers are circumstances that may impact future service delivery and use of assets. These drivers can include things such as population change, climate change, regulations, changes in demographics, seasonal factors, consumer preferences and expectations, technological changes, economic factors, environmental considerations, etc. The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.1. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices can include non -infrastructure solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 5.1. Further opportunities will be developed in future revisions of this AM Plan. Table 5.1: Demand Management Plan Population 270,000 (2023) 309,120 (2036)* As development in the Continue to forecast and Growth City grows, new manage developer transportation assets provided non-core will be added to the transportation assets. City's portfolio. *2022 Development Charge Study 5.2 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 6.4. Acquiring new assets will commit the City of Kitchener to ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operations, maintenance and renewal costs for inclusion in the long-term financial plan (Refer to Section 8). Page 264 o 42 5.3 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets under management and the services they provide. In the context of the Asset Management Planning process, climate change can be considered as both a demand driver and a risk. The City of Kitchener's Corporate Climate Action Plan (CorCAP) is the City's guiding policy document on climate change in accord with the Region of Waterloo's "A Climate Action Plan for Waterloo Region". The City of Kitchener's mitigation and adaptation strategy for the Corporate Climate Action Plan is to lead by example with action on climate change to reduce corporate greenhouse gas emissions and promote inclusive environmental sustainability and resilience. This supports the City's corporate mission of 'proudly providing valued services for our community, and strategic goals of environmental leadership, by working to ensure we can safeguard the City's assets and stakeholders.' Currently, the City does not have any risks or opportunities related to managing the impact of climate change on their non-core transportation assets or services. Additionally, the way in which we construct new assets should recognize that there is opportunity to build in resilience and adaptation to climate change impacts. Building Asset Resilience to Climate change for any facilities related to transportation services have been covered in the Facilities AM Plan. ' Kitchener Changing for Good, Our Climate Strategy Action Plan, Sec 1.1 Page 265 o 42 6.0 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how the City of Kitchener plans to manage and operate the assets at the agreed levels of service (Refer to Section 4) while managing life cycle costs. 6.1 Operations and Maintenance Plan Operations include regular activities to provide services and may not have a direct impact to the overall health of the asset. Examples of typical operational activities include cleaning, asset inspection and supply of power. Maintenance includes all actions necessary for retaining an asset as near as practicable in an appropriate condition including regular ongoing day-to-day work necessary to keep assets operating. As well, maintenance activities strive to ensure that the asset's degradation follows the expected lifecycle rather than accelerating towards an earlier disposal or replacement cycle. Examples of typical maintenance activities include minor repairs. The trend in operations and maintenance budgets are shown in Table 6.1. Table 6.1: Operations & Maintenance Budget Trends 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 $2,379,913 2022 $2,496,395 2023 $2,562,731 2024 $2,594,272 Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset inventory. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.1 shows the forecast operations and maintenance costs. Page 266 o 42 $ 3,000.000 $2.500,000 N y $2,000,000 4) z a 3 $1,500,000 c v x $1,000,000 W $ 500,000 SD Figure 6.1: Operations and Maintenance Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. The operations and maintenance costs are forecasted to increase over the next 10 years in line with the additional and expanded assets planned to be built. 6.2 Renewal Plan Renewal is typically carried out through major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Table 6.2.1: Renewal Activities 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 To be provided in future version of AM Plan 2022 To be provided in future version of AM Plan 2023 To be provided in future version of AM Plan 2024 $276,152 Assets requiring renewal are identified from one of two approaches in the Lifecycle Model. ■ The first method uses Asset Register data to project the renewal costs (current replacement cost) and renewal timing, or ■ The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). Page 267 o 42 The useful lives of assets used to develop projected asset renewal forecasts are shown in Table 6.2.2. Table 6.2.2: Useful Lives of Assets Streetlight 20 Streetlight Pole 50 Pedestrian Crossing & 15 Beacon Guiderail 50 Railing 50 Road Islands 50 Raised Crosswalk 50 Speed Hump 50 Bollards 15 Street Benches 15 Pedestrian Pads 50 Traffic Signs 15 The estimates for renewals in this AM Plan were based on the asset register data. 6.2.1 Renewal ranking criteria Asset renewals are typically undertaken to either: ■ Ensure the reliability of the existing infrastructure to deliver the expected service it was constructed to, or ■ To ensure the infrastructure is of sufficient quality to meet the service requirements. It is possible to prioritize renewals by identifying assets or asset groups that: ■ Have a high consequence of failure, ■ Have a condition score that is less than the threshold to provide an expected level of service ■ Have high use and subsequent impact on users would be significant, ■ Have higher than expected operational or maintenance costs, and ■ Have potential to reduce life cycle costs by replacement with a modern equivalent asset that would provide the equivalent service. The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.2.1.1. Page 268 o 42 Table 6.2.1.1: Renewal Priority Ranking Criteria Consequence of Failure • Financial Impact • Health & Safety Impact 50% • Service Delivery Impact • Environmental Impact Probability of Failure • Physical Condition Rating 50% • Performance Rating Total 100% 6.3 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset inventory increases, renewal schedules are delayed and/or budgets are reprioritized. The forecast of renewal costs is based on the available inventory data and feedback provided by the City. Note that only Pedestrian Crossings and Streetlights & Poles have been included in the renewal forecast. The remaining assets are be replaced as part of road reconstruction and these renewal amounts are paid for from the capital budget for Engineering Services. This analysis incorporates two separate renewal forecasting scenarios; the Unconstrained renewal forecast scenario (which replaces assets as needed at end of life) and the Maintain LOS renewal forecast scenario (which defers the replacement of certain assets in order to maintain the condition profile of assets over the course of the analysis period). However, for the purposes of this analysis, only one renewal forecast scenario (Unconstrained) was considered because it is necessary to maintain the current condition profile of non-core transportation assets. Additionally, based on feedback provided by the City, certain assets are funded through the operating budget and have been excluded from the renewal forecast. The forecast costs associated with renewals are shown in Figure 6.3. Figure 6.3: Forecast Renewal Costs Renewal Need (Unconstrained) 10•Yr Ave Annual NEED($0.55 M/yr)(Unconstra i ned) — -� Whole of Lifecycle Ave Annual NEED ($1.)2 M/yr) $2.00 $0.20 $0.00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Page 269 o 42 Table 6.3: Forecast Renewal Activities (Unconstrained) Assets with unknown condition (i.e. missing data on install date and staff reported condition) are forecasted using an average annual renewal amount (asset value / service life). For this reason, some of the renewal amounts in the chart above are consistent throughout the analysis period with the exception of certain assets which will need replacement at the end of their service life. 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. 6.4.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests; proposals identified by strategic plans or master plans; and partnerships with others. Potential upgrades and new works should be reviewed to verify that they are essential to the City's needs and fits long range planning. Proposed upgrades and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals by asset Leads can then be ranked by priority and available funds and scheduled in future works programs. Currently, no ranking criteria has been established for the acquisition of transportation assets, however this will be developed in future revision of this AM Plan. The 2024 — 2033 Capital Plan contains three projects (Traffic Calming, Neighbourhood Speed Reduction and LED Lighting Conversion) which has been categorized as acquisition (growth and will serve as a basis for the City's growth needs. Forecast acquisition asset costs are summarized in Figure 6.4 and shown relative to the proposed acquisition budget. Page 270 o 42 Current Funding 2024 $276,152 $541,928 2025 $281,674 $541,928 2026 $287,313 $541,928 2027 $293,059 $541,928 2028 $298,920 $541,928 2029 $304,900 $541,928 2030 $311,000 $541,928 2031 $317,000 $541,928 2032 $323,000 $576,928 2033 $329,460 $576,928 Annual Average $302,248 $548,928 Assets with unknown condition (i.e. missing data on install date and staff reported condition) are forecasted using an average annual renewal amount (asset value / service life). For this reason, some of the renewal amounts in the chart above are consistent throughout the analysis period with the exception of certain assets which will need replacement at the end of their service life. 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. 6.4.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests; proposals identified by strategic plans or master plans; and partnerships with others. Potential upgrades and new works should be reviewed to verify that they are essential to the City's needs and fits long range planning. Proposed upgrades and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals by asset Leads can then be ranked by priority and available funds and scheduled in future works programs. Currently, no ranking criteria has been established for the acquisition of transportation assets, however this will be developed in future revision of this AM Plan. The 2024 — 2033 Capital Plan contains three projects (Traffic Calming, Neighbourhood Speed Reduction and LED Lighting Conversion) which has been categorized as acquisition (growth and will serve as a basis for the City's growth needs. Forecast acquisition asset costs are summarized in Figure 6.4 and shown relative to the proposed acquisition budget. Page 270 o 42 Figure 6.4: Yearly Acquisition Summary $800,000 $700,000 $600,000 $500,000 - d ar Z $400,000 � � O 0 $300,000 _,MMEJ $200,000 $ 100,000 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. When the City introduces new assets, there must be a recognition for the need for future operational funding for service, maintenance and renewal costs. Future depreciation must be accounted for when reviewing long term sustainability, lifecycle and total cost of ownership. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the asset steward. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 6.4.2. Page 271 oV428 Figure 6.5: Cumulative Acquisition Summary $7,000,000 56,000,000 $5,000,000 N 54,000,000 Z N p $3,000,000 l,0 $2,000,000 $1,000,000 50 N 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The City plans for growth such that there is sufficient community infrastructure and facilities to meet the current and projected needs of the population. Acquiring these new assets will commit the funding of ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.6. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The 2024 — 2033 Capital Plan contains one project (Street Light Maintenance) which has been categorized as renewal and will serve as a basis for the City's renewal budget when calculating the renewal gap. The bars in the graphs represent the forecast costs needed to cost-effectively allocate the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving balance between costs, levels of service and risk to achieve the best value outcome. Page 272 o 42 rL Figure 6.6: Lifecycle Summary iiiiiiiii Renewal Need (Uneonwainedl :0&M Need ® Growth & Upgrade Need —10 -Yr Ave Annual NEED ($0.55 Mjyrl (Un amtrained) —I0 -Yr Ave Annual FUNDING ($0.34 Wyr) $4.5 $4.0 $3.5 $ 3.0 $2.5 $ 2.0 $1.5 $1.0 $0.s $ 0.0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current year (2023) dollars. Renewal Gap: $0.25M/year 1 r The operating and maintenance needs covered by the Operating budget is required to increase annually as new assets are acquired. Though there is no current funding shortfall identified for acquisition needs, there is an average annual estimated gap of $0.25 million for renewal needs. 6.5 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Currently, the City has no transportation assets which have been formally identified for decommissioning and disposal. 6.6 Non -Infrastructure Solutions Non -Infrastructure solutions are infrastructure related costs that may not be associated with any one specific asset in the City's asset registry but are important in the planning and execution of the previous five asset lifecycle categories. Some of the non -infrastructure solutions can include the consultant costs in the creation of a master plan, working with partner organizations, customer surveys, restocking of maintenance vehicles, and inventory updates. Table 6.6.: Non -Infrastructure Solutions Associated Project List TRANS DEM MGMT INITIATIVES 2024-2033 $2,591,020 2024 Capital Budget SMALL SCALE TRAFFIC 2024-2033 $196,129 2024 Capital Budget CALMING It was noted by the City that the above initiatives are soft measures (such as transit passes) and will not be invested in physical assets. Page 273 of3428 7.0 RISK MANAGEMENT PLAN The City of Kitchener is committed to identifying, assessing, and mitigating risks to ensure that corporate objectives are achieved. To this end, the City will maintain a long-term, robust Enterprise Risk Management strategy. Risk management is an integral part of management across the City. It forms part of strategic planning, business planning and project approval procedures. In addition, the policy assists in decision-making processes that will allocate resources to areas of highest risk. Identifying and managing risk is everyone's responsibility and is one component of good corporate governance'. 7.1 Critical Assets Critical assets are defined as those assets that provide life safety and public health and well-being to the community at large based on Provincial standards. Assets found in this category may be included for having a high consequence of failure causing significant loss or reduction of service directly impacting services to the community. Critical assets have been identified as having a consequence of failure rating of 4 or 5. Their typical failure mode, and the impact on service delivery, are summarized in Table 7.1. Failure modes may include physical failure, collapse or essential service interruption. Table 7.1 Critical Assets Streetlight Pole Interruption to service Pedestrian Crossing & Physical Failure delivery and potential harm Beacon or injury to the public By identifying critical assets and failure modes the City can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted to minimize risks. 7.2 Risk Assessment The City of Kitchener has adopted an impact criteria and risk category matrix that quantifies the impact and likelihood criteria and assigns a numerical value to the resulting score. All City risk registers will use this terminology to ensure consistency in understanding across the City's assets. The risk registrar is an assessment process that identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, and development of a risk rating and evaluation of the risk. The City will develop a risk treatment plan for non -acceptable risks as part of future improvement. An assessment of risks associated with service delivery identifies risks that will result in loss or reduction in service, personal injury, environmental impacts, a 'financial shock', reputational impacts, or other consequences. Consequence of failure is determined based on the average rating across the consequence categories in the following matrix: ' City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 274 o 42 Table 7.2 Consequence of Failure Rating Scale Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. Due to the large portion of unknown assets in this AM Plan, the City does not currently have any non-core transportation assets which have a risk rating of High or Very High. Page 275 o 42 Damages, losses, Damages, losses, Damages, losses, or Damages, losses, or Damages, losses, or Economic Financial or fines of under or fines of $30,000 -fines of $120,000- fines of $500,000- fines of over $30,000 $120,000 $500,000 $1,000,000 $1,000,000 Potential for serious Potential for serious No obvious Potential for minor injury or affects to injury or affects to Potential for death or Health & potential for injury injury or affects to health of one or health of one or more multiple deaths with Social Safety or affects to health of an more individuals with a possibility of individuals with a probable permanent health. individual. short-term disability possibility of loss of a life. damage. or hospitalization. Small number of Significant localized Major or Critical City-wide or Critical customers Localized service disruption or impact service disruption or service disruption or experience disruption or or there will likely be impact, or there will impact, or there will Service o disruption or impact and minor moderate local likely be significant, likely be significant, Delivery impact and no or no media media exposure negative, local or negative, national or media exposure is exposure is which may last provincial media international media experienced. experienced. several days. exposure which may exposure lasting last several days. several days or weeks. Asset Asset Asset Asset Asset degradation/failure degradation/failure degradation/failure degradation/failure degradation/failurehas has impact significant short- poses risk of poses significant risk to has negligible minor term impact to the environmental environment including Environmental Environment impact on to the environment environment contamination and/or a major long-term environment, including potential including a likely has significant long- impact. Likely to result emissions, and forincreased increase of term impact. Likely a in contamination. May pollution. emissions or emissions or substantial increase to become of Provincial or pollution. pollution. emissions or pollution. Federal importance. Probability of Failure of an asset is determined either by the physical condition or the performance ratings per the following tables: 1 New /Very Good 2 Good 3 Fair 4 Poor 5 Very Poor Table 7.3 Probability of Failure Rating Scale 1 Asset is functioning as intended with no issues identified 2 Asset is functioning but could use minor maintenance 3 Asset is performing at a lower level than originally intended 4 Asset is performing to a much lower level than originally intended 5 Asset is not performing as originally intended Critical risks are those assessed with a risk rating of High or Very High must have a mitigation plan. Due to the large portion of unknown assets in this AM Plan, the City does not currently have any non-core transportation assets which have a risk rating of High or Very High. Page 275 o 42 7.3 Infrastructure Resilience Approach The resilience of our infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to 'withstand a given level of stress or demand', and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership are key components to consistency. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 7.4 Service and Risk Trade -Offs The decisions made in balancing the costs and resource requirements for maintaining expected levels of service to addressing risk are based on the objective to achieve the optimum benefits from the available resources. 7.4.1 Potential Gaps There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($0.25 million per year) 7.4.2 Service trade-off If there is forecasted work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include: If some of the planned maintenance is not completed, this typically results in more unplanned service disruptions. Deferred capital renewal work may result in lower facility condition that does not meet user expectations and potential facility closures. 7.4.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include: ■ An increase in unplanned repairs and associated service disruptions. ■ Higher lifecycle management costs, deteriorating assets, and potential facility closures. ■ Deteriorating assets may be unsafe and expose the City of Kitchener to potential liabilities. These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. Page 276 of 428 8.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this AM Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 8.1 Financial Sustainability and Projections 8.1.1 Sustainability of service delivery Medium term —10 year financial planning period This AM Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the first 10 years of the planning period to identify any funding shortfall or surpluses. The forecasted operations, maintenance and renewal costs over the 10 year planning period is S3.26M on average per year. The proposed (budget) operations, maintenance and renewal funding is $3.01M on average per year giving a 10 year funding shortfall of $0.25M per year. This indicates that approximately 92% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the proposed budget. Note, these calculations exclude acquired assets. 8.1.2 Forecast Costs (outlays) for the long-term financial plan Table 8.1.2 shows the forecast costs (outlays) required for consideration in the 10 year long-term financial plan. Providing services in a financially sustainable manner requires a balance between the forecast outlays required to deliver the agreed service levels with the planned budget allocations in the long-term financial plan. A gap between the forecast outlays and the amounts allocated in the financial plan indicates further work is required on reviewing service levels in the AM Plan (including possibly revising the long-term financial plan). We will manage the 'gap' by developing this AM Plan to provide guidance on future service levels and resources required to provide these services in consultation with the community. Forecast costs are shown in current year (2023) dollar values. Page 277 of #28 Table 8.1.2: Forecast Costs (Outlays) for the Long -Term Financial Plan 2024 $720,862 $2,594,272 $302,248 $0 2025 $547,599 $2,618,231 $302,248 $0 2026 $558,553 $2,642,670 $302,248 $0 2027 $569,723 $2,667,598 $302,248 $0 2028 $581,118 $2,693,024 $302,248 $0 2029 $592,747 $2,718,959 $302,248 $0 2030 $604,607 $2,745,413 $302,248 $0 2031 $616,699 $2,772,396 $302,248 $0 2032 $629,034 $2,799,919 $302,248 $0 2033 $641,615 $2,827,992 $302,248 $0 8.2 Funding Strategy The proposed funding for assets is outlined in the City's budget and Long -Term financial plan. The financial strategy of the City determines how funding will be provided, whereas the AM Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. 8.3 Valuation Forecasts 8.3.1 Asset valuations The best available estimate of the value of assets included in this AM Plan are shown below. The assets are valued by various methods based on available information. Replacement Cost (Current) $58.6 million 8.3.2 Valuation forecast Asset values are forecast to increase as additional assets are added. Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. 8.4 Key Assumptions Made in Financial Forecasts In compiling this AM Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions related to the financial forecasts made in this AM Plan are: Acquisition Forecast: o Growth projects are based on projects and associated costs identified in the City's Capital Plan. Page 278 of�428 Renewal forecast: o Only Pedestrian Crossings and Streetlights & Poles have been included in the renewal forecast. The remaining assets would be replaced as part of road reconstruction and these renewal amounts would be captured as part of the capital budget for Engineering Services. o The potential impacts of climate change on state of good repair costs are not included. o The potential increases in lifecycle costs due to deferred renewal work are not included. o Any assets forecasted using an annuity (asset value / service life) or any assets that are funded through operating are assumed to be maintained in their current condition throughout the analysis period. Operations & Maintenance Forecast o The potential impacts of climate change on maintenance costs are not included. o The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition (growth) forecast. o Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan. 8.5 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale in accordance with Table 8.5.1. Table 8.5.1: Data Confidence Grading System A. Very High Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2% B. High Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Medium Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Low Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Very Low None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 8.5.2. Page 279 of 428 Table 8.5.2: Data Confidence Assessment for Data used in AM Plan Demand Drivers High Population growth was updated in the City's 2022 Development Charges Study. Growth Projections & Medium Based on input from the City, all acquisition (growth) Acquisition Forecast projects in the Capital Plan have been captured in determining the City's acquisition (growth) needs. However, only growth needs relating to Street Lighting and Pedestrian Crossings have been captured in the forecast. Operation & Medium Based on input from the City, all cost centres in the Maintenance Operating Budget have captured in determining the City's Forecast operating and maintenance needs, however the forecast does not quantity current shortfalls such as underfunding for planned maintenance. Renewal Forecast Asset values and estimated service lives are based on the best available data and feedback provided by the City, Low however a significant portion of asset data is missing age and condition. Disposal forecast N/A Disposal strategy is to be developed in future iterations of the AM Plan. The estimated confidence level for and reliability of data used for the financial analysis in this AM Plan is considered to be Low. Page 280 of 428 9.0 PLAN IMPROVEMENT AND MONITORING 9.1 Status of Asset Management Practices 9.1.1 Accounting and financial data sources This AM Plan does not include the depreciation valuation and therefore does not utilize the City's accounting data source (Tangible Capital Asset data set). 9.1.2 Asset management data sources This AM Plan utilizes asset management data. The source of the data is: • Non -Core Master List of Assets o List of assets included within each service area. 0 2023 current replacement values 0 Other asset attributes such as install year/date, asset ID, etc. • Condition assessments provided by City staff as of the end of 2023. • City of Kitchener 2024-2033 Capital Plan, including forecast of renewal, upgrade and growth projects 9.2 Improvement Plan It is vital in any AM Plan to recognize areas of future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this AM Plan is shown in Table 9.1. Table 9.1: Improvement Plan 1 City to formalize a condition assessment program to complete condition assessments for any assets currently listed in Unknown condition or assets that use age as a proxy for determining condition. This will help to inform more effective lifecycle needs and financial strategies for these assets. 2 City to monitor and update replacement values of assets as they undertake renewal projects. Also, additional review of unit costs is recommended in future updates of replacement value. 3 City to formalize levels of service and monitor performance on measures included in the AM Plan, on an annual basis or multi-year schedule. In the next AM Plan, per O.Reg. 588/17 requirements in 2025, set proposed service levels (targets). Additionally, review and update service levels (add or remove measures, and set targets) as required to reflect alignment with other city plans and studies. Transportation None Services Transportation None Services Transportation None Services 2024 —2025 2024 —2025 2024 —2025 Page 281 of 428 9.3 Conduct formal risk assessments to Transportation Align with 2024-2025 prioritize preventative maintenance Services corporate risk activities, as well as renewal / capital management investments framework City to continue to develop and update 10- Transportation None 2024 —2025 year forecast of lifecycle activities based on Services formalized/update levels of service, formal risk assessments and updated asset information (as applicable). Monitoring and Review Procedures This AM Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated at a maximum of every 5 years to meet the requirements of O.Reg.588/17 and ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, acquisition and asset disposal costs and planned budgets. Page 282 of 428 10.0 REFERENCES ■ United Nations, Managing Infrastructure Assets for Sustainable Development ■ Kitchener Changing for Good, Our Climate Strategy Action Plan ■ City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 ■ O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure ■ City of Kitchener Complete Streets Program 2019 ■ City of Kitchener Vision Zero Strategy 2021 ■ City of Kitchener Development Charges Study 2022 ■ City of Kitchener Strategic Plan 2023-2026 ■ City of Kitchener Official Plan 2014 Page 283 of 428 2024 Facilities Asset Management Plan i r� Document ID : Approver 01 December 29, 2023 Federation of Canadian Municipalities Grant Submission SLBC MKV BP 02 May 1, 2024 95% Draft SLBC MKV Page 285 of 428 Contents 1.0 EXECUTIVE SUMMARY 5 1.1 The Purpose of the Plan..........................................................................................................................5 1.2 Asset Description....................................................................................................................................5 1.3 Levels of Service......................................................................................................................................6 1.4 Future Demand.......................................................................................................................................6 1.5 Lifecycle Management Plan....................................................................................................................7 1.6 Financial Summary..................................................................................................................................7 1.7 Asset Management Planning Practices...................................................................................................8 1.8 Monitoring and Improvement Program.................................................................................................9 2.0 INTRODUCTION 10 2.1 Assets Included in this Plan...................................................................................................................10 2.2 Provincial Asset Management Requirements.......................................................................................11 2.3 Asset Management at the City of Kitchener.........................................................................................11 3.0 STATE OF LOCAL INFRASTRUCTURE 15 3.1 Background Data..................................................................................................................................15 3.2 Asset Registry Completeness & Assumptions.......................................................................................20 4.0 LEVELS OF SERVICE 22 4.1 Customer Research and Expectations..................................................................................................24 4.2 Strategic and Corporate Goals..............................................................................................................24 4.3 Legislative Requirements......................................................................................................................25 4.4 Customer Values and Community Levels of Service.............................................................................26 4.5 Customer Levels of Service...................................................................................................................27 4.6 Technical Levels of Service....................................................................................................................28 5.0 FUTURE DEMAND 33 5.1 Demand Impact and Demand Management Plan................................................................................33 5.2 Asset Programs to meet Demand.........................................................................................................34 5.3 Climate Change Adaptation..................................................................................................................34 6.0 LIFECYCLE MANAGEMENT PLAN 36 6.1 Operations and Maintenance Plan.......................................................................................................36 6.2 Renewal Plan........................................................................................................................................37 6.3 Summary of future renewal costs.........................................................................................................40 6.4 Acquisition Plan....................................................................................................................................42 6.5 Disposal Plan.........................................................................................................................................44 Page 286 of 428 6.6 Non -Infrastructure Solutions................................................................................................................44 7.0 RISK MANAGEMENT PLAN 46 7.1 Critical Assets........................................................................................................................................46 7.2 Risk Assessment....................................................................................................................................47 7.3 Infrastructure Resilience Approach......................................................................................................49 7.4 Service and Risk Trade-Offs..................................................................................................................49 8.0 FINANCIAL SUMMARY 51 8.1 Financial Sustainability and Projections...............................................................................................51 8.2 Funding Strategy...................................................................................................................................52 8.3 Valuation Forecasts..............................................................................................................................52 8.4 Key Assumptions Made in Financial Forecasts.....................................................................................52 8.5 Forecast Reliability and Confidence......................................................................................................53 9.0 PLAN IMPROVEMENT AND MONITORING 55 9.1 Status of Asset Management Practices................................................................................................55 9.2 Improvement Plan................................................................................................................................55 9.3 Monitoring and Review Procedures.....................................................................................................56 10.0 REFERENCES 57 11.0 APPENDICES 58 Appendix A Work Order Templates.............................................................................................................58 Appendix B Acquisition Forecast..................................................................................................................63 Appendix C Operation & Maintenance Forecast.........................................................................................64 Appendix D Renewal Forecast Summary.....................................................................................................65 AppendixE Disposal Summary.....................................................................................................................67 Appendix F Budget Summary by Lifecycle Activity......................................................................................68 Appendix G List of Facilities included in Asset Management Plan...............................................................69 Page 287 of 428 1.0 EXECUTIVE SUMMARY 1.1 The Purpose of the Plan This City of Kitchener Facilities Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to maintain current levels of service in a cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required over the 10 -year planning period. The AM Plan will link to a Long -Term Financial Plan which typically considers a 10 -year planning period. 1.2 Asset Description This plan covers the facility assets that provide services including administration services for governance, aquatic facilities and arenas for recreational activities, arts & culture venues for artistic expression, and community centres for public events. Additionally, the municipality provides essential services such as fire protection, operational support, and parking facilities, contributing to the overall well-being, recreation, and safety of its residents. The largest portion of the asset mix is dedicated to arenas, covering 590,303 square feet (sq ft) with a replacement value of $473.5 million. A summary of the facilities by Service area is summarized in Table 1.1. Table —1.1— Summary of Facility Inventory by Service Area Administration 227,378 $206AM Aquatics 97,636 $119AM Arenas 590,303 $473.5M Arts & Culture 278,740 $241AM Cemeteries 34,464 $20.OM Commercial 101,473 $147.1M Community Centres 185,076 $155.OM Fire 62,304 $98.2M Golf 45,710 $20.3M Operations 387,725 $215.OM Parking Garages 518,776 $145.OM Parks & Open Spaces 75,701 $27.3M Residential 7,828 $2.2M Sport 111,432 $78.8M TOTAL 2,724,545 $1,949.5M The above infrastructure assets have replacement value estimated at $1.95 billion with a breakdown of this value shown in Figure 1.1. Page 288 of 428 PARKS & OPEN SPF $27.3 1% GOLF $20.3 1% 1.3 Levels of Service RFSfnFNTSAL CEMETERIES $20.0 1% Figure 1.1 — Graph of Facility Inventory by Service Area ($M) The allocation in the planned budget is insufficient to continue to provide the current level of service modelled in this AM Plan, for the planning period. The main service consequences of the Planned Budget are: ➢ Facility Condition Index deteriorates from 9.9% to 26.0%, indicating that an increasing portion of facility components fall into the repair backlog ➢ The average condition of the facility portfolio declines from Fair to Poor condition 1.4 Future Demand The factors influencing future demand and the impacts they have on service delivery are created by: ➢ Population growth Aging population and recreation trends such as moving towards multi -use and multi -generational facilities These demands will be approached using a combination of managing existing assets, upgrading existing assets and providing new assets to meet demand. Demand management practices may also include a combination of non -asset solutions, ensuring against risks and managing failures: ➢ Additional facilities and expansions of existing facilities ➢ Consideration of joint -use opportunities with private sector and school boards ➢ Designing for multi -use and multi -generational facilities Page 289 of 428 1.5 1.6 Lifecycle Management Plan 1.5.1 What does it Cost? The forecasted lifecycle costs which are necessary to provide the services covered by this AM Plan include operation, maintenance, renewal, acquisition, upgrade, and disposal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long -Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10 -year total outlays to maintain current service levels, which for the facility portfolio is estimated as $791 million for the 10 -year period or $79.1 million on average per year. Financial Summary 1.6.1 Planned Budgets and Forecast Costs Estimated available funding for the 10 -year period is $463 million or $46.3 million on average per year as per the Long -Term Financial plan or Planned Budget. This is 58% of the cost to sustain the current level of service at the lowest lifecycle cost. The infrastructure reality is that only what is funded in the long-term financial plan can be provided. The Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for City facilities leaves a shortfall of $32.9 million on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long -Term Financial Plan. This is shown in the figure below. $140 $120 ' $100 In a m $80 _ $60 d CL x W $40 Operation and Maintenance Needs Renewal and Upgrade Need (Maintain LOS) Growth Needs ——10Year Average Annual Need (Unconstrained) 10 Year Average Annual Need (Maintain LOS) Average Annual Available Funding $00 0 0 0 0 0 N 0 0 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Figure Values are in current dollars. Figure 1.2 — Forecast Lifecycle Costs and Planned Budgets We plan to provide facility services for the following: Gap; $32.9 M/yr • Operation, maintenance, renewal and acquisition of all service areas to meet service levels set by City in annual budgets. Service areas include Administration, Aquatics, Arenas, Arts & Culture, Cemeteries, Commercial, Community Centres, Fire, Golf, Operations, Parking Garages, Parks & Open Spaces, Residential and Sport • Renewals are forecasted using three approaches: Page 290 of'428 • Simple Facility—generally used for less critical facilities, such as sheds or storage buildings, where the entire facility is treated as one asset and renewed at end -of -life. • A higher-level facility breakdown - City staff condition estimates are used to forecast renewal for buildings without a building condition assessment. • Capital Plan with BCA recommendations - facilities for which a building condition assessment has been completed and those recommendations have been incorporated into the Facilities Management Capital Plan . • New and expanded facilities such as Kitchener Indoor Recreation Complex (KIRC) are included in the next 10 year planning period based on recommendations from the 2019 Leisure Master Plan. 1.6.2 Infrastructure Gap We currently do not allocate enough budget to sustain the current levels of service. Works and services that cannot be provided under present funding levels are: ■ Underfunded planned maintenance (preventive maintenance programs) ■ Deferred capital renewal work (estimated average gap of $32.9 million per year) 1.6.3 Managing the Risks Our present budget levels are insufficient to continue to manage risks in the medium term. The main risk consequences are: ➢ Higher lifecycle management costs, deteriorating facilities, and potential facility closures ➢ As the condition of assets deteriorates, they may become unsafe and pose a danger to the community and the City could be at risk of litigation should an accident occur. ➢ Insufficient upgrades related to accessibility, energy efficiency, and resiliency to climate change We will endeavor to manage these risks within available funding by: ➢ Completing building condition assessments and accessibility audits to improve the accuracy of the renewal forecast and gap ➢ Continue to apply a risk-based approach to capital planning to focus available funding on critical projects ➢ Create new policies for acquisition and disposal of facilities to optimize limited funding ➢ Pursue grants from higher levels of government for projects such as those related to reducing GHG emissions and improving accessibility 1.7 Asset Management Planning Practices Key assumptions made in this AM Plan are: ■ The potential impacts of climate change on state of good repair and operating costs are not included ■ The potential increases in lifecycle costs due to deferred renewal work are not included ■ The current operating budget is increased over the next 10 years based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition forecast ■ Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan Assets requiring renewal are identified from either the asset register or an alternative method. ■ The timing of capital renewals based on the asset register is applied by adding the useful life to the year of acquisition or year of last renewal, ■ Alternatively, an estimate of renewal lifecycle costs is projected from external condition modelling systems and may be supplemented with, or based on, expert knowledge. Page 291 of 428 Various methodologies under the Alternate Method were used to forecast the renewal lifecycle costs for this AM Plan. This AM Plan is based on a medium level of confidence information. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are: ➢ Improve asset database by conducting additional cyclical building condition assessments (BCA) and specialized assessments (roof, skylight, elevators, HVAC, etc.) ➢ Determine targets for FCI and other levels of service ➢ Complete accessibility audits and determine accessibility upgrade needs ➢ Determine funding gap related to planned maintenance and implement formal preventive maintenance activities to reduce risks of unplanned service disruptions Develop strategies regarding disposals and acquisitions, temporary facilities, replacement versus rehabilitations of old facilities as part of overall approaches to manage the funding S Develop asset management framework to improve asset management in the organization Page 292 of 428 2.0 INTRODUCTION The City of Kitchener (the City) is in Waterloo Region, in the heart of southwestern Ontario. The City covers an area of 137 square kilometers and has a population of approximately 270,000; making it the largest City in the Region and the Grand River Watershed alike. The City has been designated as a growth area through the Provincial Growth Plan: Places to Grow, and has seen significant population growth that is expected to continue through the next decade. The City owns and maintains facilities that provide a wide range of services between City departments and to its residents. This Asset Management Plan (AM Plan) will communicate the requirements for the sustainable delivery of services through efficient management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the planning period. The Plan has been prepared in accordance with Ontario Regulation 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation lays out the requirements for all AM Plans, as well as deadlines to meet to certain milestones. This iteration of the AM Plan meets requirements for Current Levels of Service. 2.1 Assets Included in this Plan This AM Plan covers facilities for which the City is responsible for lifecycle management. Most of these facilities are owned by the City, but some are leased by the City or operated by another organization. Some City -owned facilities are not included, such as water and wastewater facilities which are covered in the City's other AM Plans. The facilities included in this AM Plan are listed in Appendix G. The City's corporate facilities are operated and maintained by the Facilities Management division. All components of these facilities will be included in this AMP. Many of the City's other facilities are jointly operated and maintained by the Facilities Management division and other City departments or service partners (including, but not limited to recreation facilities, fire stations, and libraries). In these cases, the Facilities Management division is responsible for the operation, maintenance, renewal, expansion, and upgrade of the facility structural components, building systems, site works, and utility services including main electrical services, distribution, emergency generators, and uninterruptible power supply (UPS) systems; the department or service partner manages the remaining facility components including but not limited to, processes, equipment, and service operation. This AM Plan will only focus on the assets that are operated and maintained by the Facilities Management division. Process/service area assets are excluded. Facility parking lots that have been assessed through building condition assessments are included in the AM Plan but additional work is required to formalize the governance of these assets with other City divisions. The infrastructure assets included in this plan have a total replacement value of $1.95 billion. Figure 2.1 — City of Kitchener Facility Asset Condition and Value ($" Very Poor $59.4 3% Poor $830.3 32% Very Good aA 43 2 M Fair $315.5 16% $761.1 39% Page 293 of %28 2.2 2.3 Provincial Asset Management Requirements The Province of Ontario requires that all municipalities that seek provincial infrastructure funding have an asset management plan, or plans, in place. To encourage a similar approach across municipalities, in 2012 the province introduced Building Together: Guide for Municipal Asset Management Plans, which defined the key components of an effective asset management plan. More recently in 2017, the province approved O.Reg 588/17 —Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015. The Regulation mandates the development of an asset management policy, asset management plans, and their content. Additionally, milestones are included for when municipalities must fulfill certain requirements, outlined below in Figure 2.2. July 1 st 2015)The City's first AM Policy was completed in 2012, and most recently updated in 2018. The Policy outlines the goals and policy objectives of asset management within the Organization. • At the City, Core AMPS prepared in accordance with 0 Reg 588/17 include Water, Wastewater, Stormwater, Roads & July I st 2022 Core AMPs Traffic, Bridges & Culverts, and Gas. These AMPS must documents current Levels of Service and the cost to maintain them. moo • Non -Core AMPS will inclue Parks & Open Spaces, Forestry, 2024 Fleet, Cemetaries, Golf, Parking, Facilities, and Green Non-core AM Ps Infrastructure. These AMPS must document current Levels o': Service and the cost to maintain them. -ok • By this time, the City is required to have an approved AMP July 1 st 2025 for all assets that builds upon the 2022 and 2024 Proposedrequirements. These AMPS must document proposed Levels of Service of Service, what activities will be required to meet them, and a strategy to fund them. Figure 2.2 - O.Reg 588/17 Milestones Asset Management at the City of Kitchener The City of Kitchener has been practicing sound asset management planning for at least 15 years, starting with the introduction of Public Sector Accounting Board (PSAB) legislation. Since 2007, several efforts have resulted in well-established asset management programs and procedures, as well as the inclusion of a dedicated Asset Management Division in the City's corporate structure. Figure 2.3 below outlines some key milestones in the City's asset management journey. Kitchener City Council adopted the most recent Corporate Asset Management Strategy in 2016. The goals outlined in the strategy are to extend the useful life of all assets, in the most cost-effective way, while managing risk and meeting the agreed upon levels of service. The AM Plan is a key tactical (medium-term) planning document that relies on input from strategic planning activities and informs shorter -term decision making. The AM Plan provides a framework to validate the City's budgeting processes and assist- in prioritizing work activities, including capital projects, based on risk. It discusses levels of service that also support goals in the 2023 to 2026 Strategic Plan and lifecycle management strategies intended to reduce the overall cost of asset ownership. Page 294 of 428 2007 2009 2010 2011 2012 2013 2017 Procurement Development Establishment Council development Development Introduction of City's of Corporate of an asset approves the of two pilot of water, of 0. Reg maintenance Asset management City's first AMPS sanitary and 588/17 — Asset management Management program asset (pavement storm AMPS Management system, Strategy coordinator and management and the AUDj Planning for 9 CltyWorks offkCe policy Municipal Infrastructure Figure 2.3 - City of Kitchener Asset Management Timeline 2.3.1 Corporate Asset Management System An asset management system should aim to achieve a line of sight between corporate strategic goals outlined in the strategic plan, and operational plans, policies and procedures, as illustrated in Figure 2.4. Two guiding documents in this system are the Asset Management Strategy and Asset Management Policy, most recently updated in 2016 and 2018, respectively. The Asset Management Policy defines the intent, scope and principles of asset management at the City of Kitchener, and who is responsible for enacting the policy. The 2018 update puts a focus on climate change given the impact that it is expected to have on municipal assets. Section 5.3 - Climate Change Impacts of this AM plan discusses these impacts specific to the City and strategies to build and maintain assets through the lens of resiliency, sustainability, adaption, and mitigation. The Asset Management Strategy defines how the principles of the policy will be put into practice and the three guiding principles of asset management at the City of Kitchener which are to: 1 Balance asset condition and levels of service, 2 Allocate financial resources among priorities and, Shift how we do business - such as introducing programs to support the requirement for high-quality data services. Figure 2.4 - City of Kitchener Asset Management System Page 295 of 428 In addition to the Asset Management Strategy and Policy, this AMP should be read in conjunction with other planning documents relevant to facilities, outlined in Table 2.1 below. Table 2.1: Key Planning Documents Key Planning Document Document Description 2023-2026 Corporate Strategic Plan The document outlines the strategic goals that are to be championed by Council and staff across the City. The Official Plan is a legal document that contains goals, objectives and policies to manage and direct physical and land use change and their effects Official Plan (2014) on the cultural, social, economic and natural environment within the City. This Plan provides a framework for decision-making and plays several essential roles in the future planning of the City. Corporate Asset Management The AM strategy outlines the Asset Management program at the City, the Strategy (2016) three guiding principles of where the program intends to go, and the value gained by forming consistent practices throughout the asset groups. The 2019 Leisure Facilities Master Plan includes recommendations to support the City's commitment to providing quality recreation facilities, programs and services. The plan focuses on three primary areas: 2019 Leisure Facilities Master Plan • Aging recreation infrastructure (currently being updated) . Partnerships with school boards and public/private community partners • Funding models for recreation facilities and service delivery In addition, the LFMP includes a prioritized list of indoor and outdoor recreation facilities which staff are recommending be funded through development charges. The DC Study includes preparing a development forecast, establishing Development Charges Background historical service levels, determining the increase in need for services arising Study (2022) from development and appropriate shares of costs and attribution to development types (residential and non-residential). The City's facilities provide important services across many City departments, and therefore this AM Plan has a wide range of key stakeholders. Key stakeholders are summarized in Table 2.2. Page 296 of 428 The City's Corporate Climate Action Plan aims to achieve meaningful and Kitchener, Changing for Good - measurable carbon emission reductions throughout its operation, while also Corporate Climate Action Plan (2019) adapting to impacts resulting from climate change. Under Ontario Regulations 25/23, public sector agencies in Ontario must Energy Conservation & Demand report annual energy consumption and develop a five - year conservation and Management Plan (2019-2023) demand management plan intended to reduce energy consumption and greenhouse gas emissions. The DC Study includes preparing a development forecast, establishing Development Charges Background historical service levels, determining the increase in need for services arising Study (2022) from development and appropriate shares of costs and attribution to development types (residential and non-residential). The City's facilities provide important services across many City departments, and therefore this AM Plan has a wide range of key stakeholders. Key stakeholders are summarized in Table 2.2. Page 296 of 428 Table 2.2 - Key Stakeholders in the AM Plan City Council are the overall owners of the City's assets. Council approves asset City of Kitchener Elected Council management policies and asset funding allocation through the annual corporate budget process. An overarching expectation of a standard of care is required by Council to ensure commitment to effective asset Management practices. The Leadership Team provides corporate oversight to the program to ensure that Corporate Leadership Team the goal and directions of the Corporate Asset Management program are maintained, and the program remains consistent with the overall Strategic Plan. This committee provides leadership and strategic direction for supporting systems/processes specific to the delivery of asset/work management information Asset &Information for the City of Kitchener. Further, in support of the city-wide asset management Management Committee strategies, the committee provides leadership and governance to the Asset Management Policy statement through the provision of information necessary for the long-range forecasts of asset investment needs, services levels, risks, costs and other performance measures. Facilities Management is a division with Infrastructure Services and is responsible Facilities Management for the renewal and lifecycle planning for maintaining facility assets in a state of good repair. Community Services is a department of the City and is responsible for the operation Community Services and maintenance of community centres, swimming pools, arenas, sports facilities, as well as the Kitchener Fire Department stations. The Finance division within Financial Services prepares an annual operating budget and 10 -year capital forecast for Council's consideration. The annual budget helps Finance identify the spending plans and priorities for the City for the upcoming year and is informed by the City's Strategic Plan, various master plans, and feedback from the community. 2.3.2 Asset Management Plan Methodology The information presented in the AM Plan is based on O.Reg. 588/17 requirements, the Guide for Municipal Asset Management Plans, originally issued by the Ontario Ministry of Infrastructure, and leading asset management practices. Costs and replacement values in this AM Plan are estimated in 2023 dollars. The AM Plan was developed by SLBC Inc. in collaboration with City staff through: • Review of background materials available on the City's web site and provided by the City's project team including asset inventories, planning documents, and budgets • Workshops with internal stakeholders • Various interim meetings with the City's project team • Numerous data and information transfers • Review of interim outputs by the City's project team and other stakeholders, and incorporation of comments into the final AM Plan Page 297 of 428 3.0 STATE OF LOCAL INFRASTRUCTURE 3.1 Background Data 3.1.1 Asset Inventory and Valuation The asset mix for this municipality reflects a diverse range of services supported by its facilities. The largest portion of the asset mix is dedicated to arenas, covering 590,303 sq ft with a replacement value of $473.5 million. The assets covered by this AM Plan are shown in Table 3.1. Table 3.1: Assets covered by this Plan Administration 227,378 $206AM Aquatics 97,636 $119AM Arenas 590,303 $473.5M Arts & Culture 278,740 $241AM Cemeteries 34,464 $20.OM Commercial 101,473 $147.1M Community Centres 185,076 $155.OM Fire 62,304 $98.2M Golf 45,710 $20.3M Operations 387,725 $215.OM Parking Garages 518,776 $145.OM Parks & Open Spaces 75,701 $27.3M Residential 7,828 $2.2M Sport 111,432 $78.8M TOTAL 2,724,545 $1,949.5M The asset valuation distribution for this AM Plan is shown in Figure 3.1 and the age profile of the assets included in this AM Plan are shown in Figure 3.2 Page 298 of 428 PARKS & OPEN SW $27.3 1% GOLF $20.3 1% Figure 3.1: Asset Valuation RESIDENTIAL $2.2 $147.1 lit ARTS & CULTURE $241.4 12% CEMETERIES $20.0 1% Figure 3.2: Asset Age Profile SPORT RESIDENTIAL PARKS & OPEN SPACES PARKING GARAGES OPERATIONS GOLF FIRE COMMUNITYCENTRES COMMERCIAL CEMETERIES ARTS & CULTURE ARENAS AQUATICS ADMINISTRATION 0 10 20 30 40 50 60 70 s0 90 Years Asset Age Profile was calculated using a weighted average age of assets based on current replacement value (CRV). All table and figure values are shown in current day dollars. Page 299 of 428 Residential assets are the oldest City facilities with an average age of 83.3 years against a useful life expectancy of 80 years. Additionally, Parks & Open Spaces assets have an average age of 50 years compared to a useful life expectancy of 50 years. This suggests that these assets have, on average, met or exceeded their anticipated lifespan, potentially warranting closer attention and investment in maintenance, refurbishment, or disposal to ensure the continued well-being and safety of residents. In contrast, parking garages exhibit a notably lower average age of 20.8 years against a useful life expectancy of 80 years, emphasizing recent investments in this area. 3.1.2 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 3.2. Table 3.2: Asset Service Hierarchy Administration Manage and coordinate various municipal functions, including governance, finance, human resources, and communication, ensuring efficient and effective overall operation. Aquatics Provide safe and accessible aquatic facilities and programs, promoting water safety, recreation, and fitness within the community. Arenas Operate and maintain indoor sports arenas, offering spaces for sports activities, events, and recreational programs for residents. Arts & Culture Support and promote artistic and cultural initiatives within the community, fostering creativity, heritage preservation, and community engagement. Cemeteries Manage and maintain burial grounds, ensuring respectful and dignified final resting places for community members. Commercial Oversee and regulate commercial activities within the municipality, promoting economic development, business growth, and a vibrant local economy. Community Centres Provide spaces and programs that foster community engagement, social interaction, and the well-being of residents through recreational and educational programs. Fire Ensure the safety and well-being of residents by providing fire protection, emergency response services, and community education on fire safety. Golf Manage and maintain golf courses, promoting recreational opportunities, sportsmanship, and a healthy outdoor lifestyle. Operations Oversee the day-to-day municipal operations, including public works, infrastructure maintenance, and logistical support to ensure the proper functioning of the City. Parking Garages Provide safe and accessible parking facilities, managing parking infrastructure, and implementing policies that address the parking needs of residents and visitors. Parks & Open Spaces Create and maintain public parks, green spaces, and recreational areas, enhancing the quality of life for residents and providing opportunities for outdoor activities. Residential Originally acquired to support expansion of adjacent city facilities. Sport Promote and facilitate sports and physical activities, supporting the development of sports programs, facilities, and events that contribute to the health and well-being of the community. Page 300 of 428 3.1.3 Asset capacity and performance Assets are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table 3.3. Table 3.3: Known Service Performance Deficiencies Community Centres Based upon estimated population growth and public survey results, the City plans to address the deficiency in community and recreation infrastructure through the following projects: Mill Courtland Community Centre Addition, Rosenberg Community Centre, Forest Heights Community Centre Expansion and Kitchener Indoor Recreation Complex (KIRC). Fire To ensure adequate emergency response and protection services, the City has identified the need for an 8th fire station in order to respond to the significant growth occurring within the City. General State of The City currently has a significant renewal backlog across the facility portfolio. Good Repair backlog The capacity -related service deficiencies were identified from the City's 2019 Leisure Master Plan and the 2022 Development Charges Study. The backlog is identified from the Facilities Management Capital Plan and the forecasting methods described in the following subsection. 3.1.4 Asset condition Assets can be inspected and monitored through various means. The City employs both internal staff and contractors to perform inspections on City owned assets. The results of these assessment programs provide the City with meaningful imperial data that can be used to gauge the condition of assets and needs for asset maintenance or renewal. The costs for these condition assessments are funded through the City's Capital Plan. Table 3.4: Condition Assessments Facilities with Higher Criticality Building Condition Assessment 5 years for facilities with SFU of 3, 4 or 5 Condition is measured using a 1— 5 grading system as detailed in Table 3.5. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1— 5 grading scale for ease of communication. The Facility Condition Index is calculated based on the following formula: FCI = Renewal Needs over Next 3 Years Replacement Value To determine the FCI for each facility, the renewal needs over the next 3 years including backlog was determined by different forecasting methods depending on the criticality of the facility and the data available: • Simple Facility—generally used for less critical facilities, such as sheds or storage buildings, where the entire facility is treated as one asset and renewed at end -of -life. • High -Level Facility Breakdown —facilities for which a building condition assessment has not yet been completed. The facility is broken down into 27 elements (Uniformat) with estimated costs (based on typical percentage breakdowns) and estimated condition ratings by City staff. Page 301 of %28 • Capital Plan with BCA recommendations —facilities for which a building condition assessment has been completed and those recommendations have been incorporated into the Facilities Management Capital Plan Table 3.5: Condition Grading System 1— Very Good free of defects, only planned and/or routine maintenance required 2—Good minor defects, increasing maintenance required plus planned maintenance 3 —Fair defects requiring regular and/or significant maintenance to reinstate service 4 — Poor significant defects, higher order cost intervention likely 5 —Very Poor physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.3 and Table 3.6. Figure 3.3: Asset Condition Profile ($M) Very Poor $59.4 3% Poor $630.3 32% Fair $315.5 16% All figure values are shown in current day dollars. Very Good $183.2 10% Good $761.1 39% 0 to 2% >2 to 5% >5 to 10% >10 to 30% Over 30% Page 302 of 428 Table 3.6: Asset Condition by Service Area Administration 18.2% Poor Aquatics 22.4% Poor Arenas 4.8% Good Arts & Culture 12.8% Poor Cemeteries 8.2% Fair Commercial 3.7% Good Community Centres 13.5% Poor Fire 8.7% Fair Golf 6.7% Fair Operations 6.3% Fair Parking Garages 9.9% Fair Parks & Open Spaces 8.1% Fair Residential 6.0% Fair Sport 8.6% Fair Overall Average 9.9% Fair The condition assessment of the municipality's assets provides some perspective on the overall health of its infrastructure. While arenas and commercial assets have an overall good condition (FCI of 4.8% and 3.7%, respectively), a significant portion of the assets, including administration, aquatics, arts & culture, and community centres, are categorized with an average poor condition, with FCls ranging from 12.8% to 22.4%. Overall, the weighted average condition of the facilities included in this AM Plan falls within the fair category at 9.9%. 3.2 Asset Registry Completeness & Assumptions In compiling this AM Plan, a thorough review of the asset registries is required. The purpose of this review to identify if all asset categories under the leadership and stewardship of the responsible stakeholders are represented in a singular or combined asset registry. The review also looks to ensure that for those registries that do exist, that fields that are critical to the assets' lifecycle and financial management are populated with accurate values. These values will provide that basis for meaningful asset management planning The following categories have been emnloved to assess the comnleteness of asset registries - Rating Description Data based on sound records, procedures, investigations and analysis, documented Good properly but may have minor shortcomings. Dataset is complete and estimated to be accurate ± 10%. Data based on sound records, procedures, investigations and analysis which is Fair incomplete or unsupported, or extrapolated from a limited sample. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% Poor Dataset may not exist or be fully complete, and most data is estimated or extrapolated Page 303 of 428 Table 3.7: Asset Registry Assessment Simple Facility Good Fair Good Good Fair Fair Good High -Level Facility Good Fair Good Good Fair Fair Good Breakdown Capital Plan with BCA Good Good Good Good Good Good Good recommendations Where asset registries are missing or critical data fields are found to be incomplete, there may be assumptions of the data that have to be made to complete this AM Plan. While these assumptions are listed below, they will be put into more context as needed through this AM Plan. The facilities currently based on the high-level facility breakdown are expected to be updated with more accurate forecasts when their building condition assessments are completed and incorporated into the Capital Plan. Key assumptions related to the asset registries made in this AM Plan are described below for each of the three forecasting approaches: ■ Simple Facility approach: ■ Non-residential facilities are replaced as one asset at end -of -life (50 years) ■ Residential facilities are forecasted based on an average 2% annual investment rate ■ 13 facilities were not included due to missing construction year data ■ High-level facility breakdown approach: ■ Replacement costs for 27 elements (Uniformat) are estimated based on costing breakdown provided through a facility costing software (RS Means). ■ Each facility is assumed to consist of each of the Uniformat elements ■ For elements not assigned a condition score by City staff, an average annual renewal amount is assumed to be required based on the current replacement value of the element divided by its estimated total service life ■ Capital Plan approach: ■ All forecasted values entered into the Capital Plan are assumed to be in current year dollars Page 304 of 428 4.0 LEVELS OF SERVICE In the State of Infrastructure Section, the value, age, and condition of the City's infrastructure assets were discussed. The Levels of Service (LOS) chapter builds on the State of Infrastructure by defining the performance the City's assets are intended to deliver over their service lives. For example, the City's recreation facilities are expected to be maintained in a state of good repair such that residents can access suitable facilities and participate in various sports activities. LOS are statements that describe the outputs and objectives the City intends to deliver to its residents, businesses, and other stakeholders. In general, LOS are guided by a combination of customer expectations, legislative requirements, internal policies and procedures, and affordability. Effective asset management requires that LOS be formalized and supported through a framework of performance measures, performance levels, and timeframes to achieve performance levels, such that the activities and costs to deliver the documented LOS can be determined. As part of the City's 2023 to 2026 Strategic Plan, a key goal is to ensure accountability and transparency to support 'stewarding a better city together'. Developing, monitoring, and reporting on LOS are all integral parts of an overall performance management program which support efficient provision of The City's facilities play a role in ensuring the continued delivery of services to City stakeholders. essential services to the community. These facilities provide a wide range of spaces, such as offices for City staff as well as critical operations facilities that oversee environmental services, roads, and parks operations. The City's recreation and culture facilities, including recreation centres, community centres, the museum and theatre, support community participation in physical and social activities to enhance the lives of residents. Finally, libraries and parks facilities, including parks washrooms, contribute to the community's overall quality of life. Figure 4.1 shows the LOS framework and line of sight from high-level Corporate initiatives to detailed asset - specific Technical LOS. Corporate commitments & legislated LOS guide the development of community LOS. The community LOS outline the services that the assets need to deliver to the City's residents and businesses. Community LOS can typically be categorized to one of the following service attributes: • Capacity & Use: Services have enough capacity and are available to the customers • Function: Services meet customer needs while limiting health, safety, security, natural and heritage impacts • Quality & Reliability: Services are reliable and responsive to customers • Financial Sustainability: Services are affordable and provided at the lowest cost Community LOS are translated into Customer LOS, which measure services from a resident perspective, and Technical LOS that define asset performance levels. These LOS in turn define asset needs and drive the required lifecycle activities and associated funding to mitigate risks. As shown in Figure 4.1. • Capacity & Use LOS informs Acquisition needs • Function LOS informs Upgrade needs • Quality & Reliability LOS informs Renewal, Operations and Maintenance needs • Financial Sustainability LOS informs Funding needs This Line of Sight establishes the connection of how the day-to-day management of City assets supports the achievement of higher-level strategic priorities. Page 305 of 428 ac m.2c m a a v W C •� m d •7 L @ y ill C m C -Okko Qc a p� we - — c °° Efo p ''� -0 m TD '6� ++ acr+ —Qua C MMM?a +cam c —" `E! m 'u O 2 E a c to E E.� `m 'a N u a y 0 v c CE ua '` jp �l E y .° M� yam 4�9 v° Q O m fl1 v d ail mL �^ y Eck ti cLc m H +aa mum. o2i l6a �L � u L � � a O cu E N V 3l C 0 w Oe. O N N C m vi Q+ C d m E 0 97 6 � N u mEra v -� m} 4aLu uJvt Lm E 2, urn uuru me a ye�O � Y u m u x OL y � � Y 41 _ d7 0R.� R ... ' rm UCL V V Li Cf w j h N.2 Q 0 � W Y i P C 0 J IY N1 d 4.1 4.2 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the City of Kitchener. Future revisions of the AM Plan will incorporate customer consultation on service levels and costs of providing the service. This will assist Council and stakeholders in matching the level of service required, service risks and consequences with the customer's ability and willingness to pay for the service. The City completed a preliminary survey in 2023 with internal staff as a starting point to understanding perspectives from the public. Table 4.1 summarizes the results from our Customer Satisfaction Survey with internal City staff regarding their general experience and understanding of public satisfaction regarding facility cleanliness and condition. Table 4.1: Customer Satisfaction Survey Levels Satisfaction with facility cleanliness ✓ Satisfaction with facility condition ✓ Strategic and Corporate Goals This AM Plan is prepared under the direction of the Corporate Asset Management Strategy which is in alignment with the City of Kitchener's Strategic Plan (2023 — 2026). The City of Kitchener's Strategic Plan was developed with the consultation of residents, community organizations, businesses and councilors. Further to this, the plan supports the United Nations Sustainability Goals (SDGs) which outline the ways to achieve a better and more sustainable future for all. The City's vision is: "Building a city for everyone where, together, we take care of the world around us — and each other" Strategic goals have been set by the City of Kitchener. The relevant goals and objectives and how these are addressed in this AM Plan are summarised in Table 4.2. Table 4.2: Goals and how these are addressed in this Plan Objective How Goal and Objectives addressed We follow a sustainable path to a greener, Cultivating a healthier city. We work together to enhance and The City's commitment to monitor Green City protect our parks and natural environment and reduce GHG emissions and Together while transitioning to a low -carbon future. We energy consumption are discussed in support businesses and residents to make more this AM Plan. climate -positive choices. We welcome residents of all ages, backgrounds and lived experiences. We work together on the Fostering a decisions that matter to us and have a Caring City meaningful influence in our community. We're Together healthy and thriving as we easily access the diverse and inclusive programs and services we need to succeed. The AM Plan discusses how the City manages its facilities to meet population growth, changing demographics and recreational trends, accessibility, and state of good repair needs to provide a facility portfolio that enable delivery of diverse and inclusive services. Page 307 of 428 4.3 We, the City's employees, are stewards of Kitchener's present and its future. We're Stewarding a responsive, innovative, diverse and accountable Better City public servants who work together efficiently to Together serve residents. We remove barriers and champion residents' collective vision for a better city and a better world. The AM Plan demonstrates the City's commitment to financial sustainability and how available funds are managed efficiently while providing the required services and managing the associated risks. These goals set a framework for the required actions that enable the City to provide relevant and high-quality services to the community. The goals are supported by other City planning documents including the following: 2014 Official Plan • The provision of community infrastructure and facilities is essential for the enhancement of the quality of life for residents in Kitchener. There are a wide range of facilities that are required to meet the physical, social, cultural and recreational needs of its residents. While the City may not be directly involved in the provision of all community and cultural facilities and services, it can help ensure the provision and expansion of some of these facilities and services through facilitation. Objectives include: o To provide and maintain a balanced distribution and sufficient supply of accessible and inclusive parks, open space and community facilities for both active and passive recreational uses to satisfy the needs of all residents of Kitchener. o To ensure that the city has sufficient community infrastructure and facilities to meet the current and projected needs of all its population. o To ensure that community infrastructure uses and facilities are appropriately and conveniently located throughout our city to support a complete community. o To provide parks and community facilities in an efficient and sustainable manner that optimizes their use, minimizes environmental impacts, supports intensification and promotes flexibility to adapt to changing needs Corporate Climate Action Plan (currently being updated) Through its Climate Change Action Plan, the City focuses on three main approaches to managing GHG emissions in the community, the organization and service delivery: • energy conservation — use less energy and use it more efficiently fuel switching — use lower carbon fuels, "clean fuels" • generate energy — make renewable "clean energy" 2019 Leisure Facilities Master Plan (currently being updated) The City's Leisure Facilities and Master Plan furthers objectives related to active living, equity diversity and inclusion, and sustainability: • Lifelong Participation: Support lifelong participation in physical and social activities Access for All: Encourage equitable and safe participation in recreation, regardless of sex, culture, socioeconomic status, race, gender, ability, sexual orientation, Indigenous status or geographic location • Sustainable Environments, Infrastructure & Partnerships: Re -invest in existing infrastructure and use spaces for multiple purposes to ensure financial and environmental sustainability. Legislative Requirements There are many legislative requirements relating to the management of assets. Some of the legislative requirements that impact the delivery of the services provided by the City's facilities are outlined in Table 4.3. Page 308 of 428 4.4 This AMP is prepared in accordance with O.Reg 588/17—Asset Management Planning for Municipal Infrastructure, which lays out the requirements for Asset Management Plans prepared by municipalities across Ontario and milestones that all municipalities are required to meet. This Plan meets the July 1st 2024 requirements. Please note that this list of legislative requirements for facilities is not exhaustive. Table 4.3: Legislative Requirements Establishes strategic, long-term, sustainable plans to manage core and non-core capital infrastructure assets by 2024. The Regulation requires: • Municipal governments to adopt AM Plans for all infrastructure Ontario Regulation 588/17 assets including identifying levels of service and costs of maintaining services. • Municipal governments to set technical metrics and qualitative descriptions for each asset Ontario Building Code is a regulation under the Building Code Act. It establishes detailed technical and administrative requirements, as well Ontario Building Code as minimum standards for building construction. The Ontario Building Code promotes public health and safety, fire protection, resource conservation, environmental integrity, and accessibility. The Accessibility for Ontarians The purpose of the AODA is to develop, implement and enforce with Disabilities Act, 2005 standards for accessibility related to goods, services, facilities, (AODA) employment, accommodation and buildings. Technical Standards and Safety Facilities must comply with technical standards and safety regulations Act, 2000 depending on the industry or equipment, such as elevating devices or generators. Fire Protection and Prevention Facilities, especially public spaces, must comply with fire safety Act, 1997 regulations. Customer Values and Community Levels of Service The LOS discussed in this AM Plan are focused on measures developed to support achievement of the City's higher level strategic priorities and key areas of investment. The City will be completing key planning documents, such as an update to the Leisure Facilities Master Plan that will discuss additional service levels for input into future updates of this AM Plan. This AM Plan summarizes the performance on the measures based on the most current data available. As required by O. Reg 588/17, the City will determine proposed service levels by 2025. The proposed service levels will be aligned with the necessary planning documents. As discussed in Section 4.0, service levels are defined in three ways: community levels of service, customer levels of service and technical levels of service. Community LOS are qualitative statements categorized by service values and attributes. Service Values and attributes indicate what aspects of the service is important to the customer. Page 309 of 428 Capacity & Use Functional Quality & Reliability Financial Sustainability Table 4.4: Service Values and Community LOS Considers future impacts such as Resilience climate change that may put stress on the system. Is the service over or under used? Capacity/Use do we need more or less of these assets? The service can be used/reached Available performance - works when at convenient times The service is broad enough that Scope it serves the entire population Services meet customer needs while limiting health, safety, Function security, natural and heritage impacts The service is provided in a Safety manner that protects users from harm Considers future impacts such as Resilience climate change that may put stress on the system. Ensure adequate facilities to meet growing population and community needs Provide accessible facilities for inclusion and meeting diverse resident needs Promote Environmental Sustainability by maximizing facility - level efficiency. Prioritization of three main approaches to reducing GHGs in our community, our organization and service delivery: -energy conservation -fuel switching -generate energy Provide facilities in acceptable condition and cleanliness by following and providing proper maintenance standards and inspections Maintain facilities proactively to minimize unexpected failures Provide facilities management services in an efficient and cost- effective manner Service values for Customer LOS and Technical LOS are summarized in section 4.5 and 4.6, respectively. Fore each relevant service value there is a summary of the performance measure being used, the past and current performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 310 of 428 The standard to which the service Quality is provided Consistently good in quality or Reliable performance - works when service users expect it to work How much does the service cost? Affordable Is it fair and is the service provided worth this cost? Service is provided with Efficient maximum productivity and minimal wasted effort Ensure adequate facilities to meet growing population and community needs Provide accessible facilities for inclusion and meeting diverse resident needs Promote Environmental Sustainability by maximizing facility - level efficiency. Prioritization of three main approaches to reducing GHGs in our community, our organization and service delivery: -energy conservation -fuel switching -generate energy Provide facilities in acceptable condition and cleanliness by following and providing proper maintenance standards and inspections Maintain facilities proactively to minimize unexpected failures Provide facilities management services in an efficient and cost- effective manner Service values for Customer LOS and Technical LOS are summarized in section 4.5 and 4.6, respectively. Fore each relevant service value there is a summary of the performance measure being used, the past and current performance, and the expected performance or trend based on the current budget allocation. It is important to note that not all service values are applicable to all asset categories. 4.5 Customer Levels of Service Customer Levels of Service can be identified as community expectations on certain services as well as how the more technical work activities are impacting customer experiences. The Customer Levels of Service performance measures highlight data that has direct impact on a citizen. Page 310 of 428 Table 4.5: Customer Level of Service Measures Provide facilities % Fair or Better 65% Not Not available in acceptable Condition available condition and Average satisfaction Quality & cleanliness by level for external Reliability following and customers based on 3.7 providing proper condition and (out Not Not available maintenance cleanliness service of 5) available standards and levels (internal staff inspections survey)* *City Staff were surveyed across the entire portfolio and results from 17 facilities were obtained. In September of 2023, City staff were surveyed regarding facility condition and cleanliness from a customer perspective. The average rating was a 3.7 out of 5 on satisfaction across 17 facilities. The City would like to increase this level of satisfaction over the next 10 years. However, based on the current backlog, current condition of the facilities and the current available budget, the satisfaction level is expected to decrease. 4.6 Technical Levels of Service Operational or technical measures of performance are used to demonstrate delivery of customer service values (i.e., the achievement of Customer Levels of Service). These technical measures relate to the activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: Acquisition The activities to provide a new service that did not exist previously, or an expansion of an existing service. Upgrade The activities to provide a higher level of service than previously provided Operation The regular activities to provide services. Maintenance The activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life. Renewal The activities that return the service capability of an asset up to that which it had originally provided. Acquisition -related LOS refer to Facility assets which ensure that there is sufficient community infrastructure and facilities to meet the current and projected needs of the population. Considering the City's growing population, evolving demographics, and recreation trends, the City maintains a suitable number of indoor ice pads, indoor pools, and community centres per resident to ensure that the City's portfolio is aligned with current and future needs. Upgrade -related measures relate to providing services that meet customer needs while limiting impacts to health, safety, security, and the environment. One of the key initiatives for the City is environmental sustainability. To monitor the City's energy performance, the City measures energy consumption, natural gas consumption, and GHG emissions both in terms of total usage and on a per square meter basis. Natural gas is monitored separately from overall energy to track progress on reducing reliance on this energy source (and promote fuel switching). For each of these measures, the goal is to reduce consumption and emissions over time. The overarching corporate goal is to achieve 80% GHG reduction by 2050, and more specific goals will be documented in future updates to this AM Plan. Generation of energy is currently based on the solar panel system installed at the Operations Centre, with a goal to increase generation in future years as other potential sites are identified for energy generation. Page 311 of %28 Currently, the City performs accessibility audits to meet legislation requirements. As the City continues to develop its accessibility standards, audits will be conducted against these standards. As of 2023, the City has completed accessibility audits for 31.7% of its 82 facilities with a functional service rating of 3 or higher, which are the City's more critical facilities. In addition to maintaining accessible and environmentally sustainable facilities, the City strives to provide safe facilities that minimize safety incidents including vandalism. The City plans for facility upgrades as required to address incidents and on-going issues specific to a facility. These solutions range from adding security cameras to installing stainless steel fixtures in park washrooms to curb vandalism incidents. A future improvement initiative for the City is to consider past safety issues and incorporate added safety elements into corporate facility design standards. The City tracks the ratio of scheduled to unscheduled work as an indication of effective lifecycle management of its facility assets and to minimize unexpected asset failures. In general, a higher planned work ratio indicates that the City has effective preventive maintenance plans in place that reduce unplanned failures resulting in lower lifecycle costs and improved service reliability. From July of 2022 to June of 2023, the City had 28.3% of total maintenance costs spent on planned work. This performance is expected to improve to a higher ratio of planned work in future years. Facilities are currently maintained in fair condition, with an average Facility Condition Index of 9.9% (Fair condition). One of the key indicators of efficiency is monitoring the costs of operating and maintenance activities and energy costs on a per area basis. The City tracks costs for operational and maintenance costs separately from the energy costs. The reduced usage of facilities in 2021 during the pandemic resulted in an increase of energy costs per square metre from 2021 to 2022. Though proposed targets are not set in this AM Plan, the overall goal is to reduce energy costs and operating and maintenance costs on a per area basis over time. The asset reinvestment rate measures the percentage of capital investment divided by the replacement value of the portfolio. Per industry benchmarks, such as the Canadian Infrastructure Report Card (2016), it is recommended that municipalities invest 1.7% to 2.5% of their facility asset portfolio value into capital renewal each year. Based on the analysis in Section 6 (Lifecycle Strategy), this AM Plan recommends an average annual investment of 2.3% to maintain current service levels. Historically, the City has only been investing approximately 0.4% in capital renewal over the past few years. This shortfall is discussed further in Section 8.0 (Financial Summary). Technical LOS have been measured and reported on over the past 3 years in some cases. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on data availability, existing resource provision and work efficiencies. Page 312 of 428 Fa 00a)o 00 z p a) I o aJ E N' U O \ N m O ? -N U .. ci U O N C pN ci ci � Lp 00 00 c^ -I N N NE LJ c -I c -I Ln _ 00 O E � C l0 p \ N c -I a) CL U ci (7 U Ql m Lr N CaJ 00 a) C7 E N N a c Lo O m Ln m a N (D Q1 N ^ rn po m :t m N O m z N c -I rl c -I c -I a) aJ C 00a) a) U _ o a) a)O a, E E l0 p \ I� �_ Ql m Lr N CaJ 00 00 Ur 00 N N N U Ln 06 Ln >.u N ^ Q1 O ^ r1 l0 ++ U c -I cr-I :t m N r1 Ln N c -I c O E p � a o E ^ E c ^ U O O a) Ln a o E^ E N a U .–I C7 N N O O O > `� aJ E E E a c O m m rn rn C7 000 E m o 00 m o C N + — O Ln z a) C E 'p u E E N m 00 E Ln N ^ m N c -I FO is Page 313 of 428 a) 00a) a) U p + O C7 E ^ 0 00 \ N U l0 C7 .. ^ � m c -I :t UO O a E c ^ a o E^ E N N O O O > `� a U N U C + — � N O C a) C E 'p u a) m w a aJ w +T+ aJ a) u U Lfl 00 C ._ U 00 cm: ._ " Q _ O y 'O C U -6 C U Q '3 ,� m —_ o v —_ O ai o 00 ai E _ 0.0 uo ai -O _ ai -O v U U o ai +- -° C E E ° C E C a1 `6 +_ — C Q N ca C j N ca "o U a v c E c E z Q a .3 m Q oU bo oU Q oU bD 0 O al 0 o � N L m 7 a M y M Q O E E N m 00 E Ln N ^ m N c -I FO is Page 313 of 428 Page 314 0 428 E u u u u u / \ 0 3 3 3 3 3 u �{ / ( ( ( ( ( E j { { { { / z z z z z u u u u u 3 m/ 5 5 5 5 5 u 0 3 3 3 3 3 ƒ � y \ \ \ \ \ 00 ®e @ ± ® 3 t t t t # m / z z z z z E ± E & u u u u /\ / 5 5 5 5 $ u / 3 3 3 3 l \ ± @ ( ( ( ( \ §/ { { { { 4 / { Ln / e z z z z )/ r *5 2= ( m g ƒ E u u u u // 3 u \ 3 3 3 3 {\ = S 7 7 7 7 Lq m } ± / { { { { K 7 / ( / e z z z z , m \ \ 0 a E § r4 /9 \ = g e 4 5 �k�� e 0 r4 r4 \\ 2 u \ 2 \5 ƒ k m bo Ln \ ( 2 \ / / E \ e \r4 z 0 �\ \ > o § 7 22 \ / \ j \ \ \ \ / / 7 \ \ u $ / t ; § » g ( § { % ° '> \ = 2 \ \ c E § \ / / / E § = u : g - \ ) c - \ / \ / — { / % E E } aj / ® > \ > § § 2 bo k k \ / { \ 2 k E ƒ 2// � 2 2 e o=\ 3 3-o u _ » \ E k 2 /\ \ E 2 @ o e ) d LU m < - - 0 z Page 314 0 428 The City's ability to maintain current service levels may be impacted by external trends and factors. Future updates to the AMP will consider such factors as they occur and incorporate them into the reporting and setting of appropriate service levels. • Demographic Factors: Population and employment changes can impact the intensity and frequency of infrastructure use, resulting in the need for additional infrastructure or more frequent asset renewal strategies. • Social and Economic Factors: Increases in environmentally conscious behaviour and attitudes among residents and businesses can lead to infrastructure that lasts longer and is more efficient. From an economic perspective, higher costs due to increases to the cost of materials and energy can reduce the ability to maintain the same level of service. Population and demographic changes, as well as tourism initiatives will also have potential impacts on required service levels. • Technological Factors: Changes in technology or asset construction, operation, or maintenance methods may lead to the replacement of obsolete equipment or materials, helping to achieve higher quality service levels and reduced costs during the asset's lifecycle. • Regulatory Factors: The City is subject to various policies, programs, and legislative decisions issued by other levels of government (i.e., federal, provincial, and regional), and such legislative changes can impact the City's strategic direction and demand for services. Specific asset -related legislation can also impact the required performance levels of assets. • Environmental Factors: Recognizing the increasing urgency of climate action work, on June 24, 2019, City Council declared a climate emergency. Mitigation and adaptation strategies to climate change will continue to be developed and implemented by the City as climate change impacts on service levels are better understood. The City is furthering its commitment to climate change action through its Corporate Climate Action Plan, which focuses on guiding the City in making progress on three goals: o to accelerate a corporate and community energy transition o to reduce corporate greenhouse gas (GHG) emissions both in corporate demand for and supply of energy o to support integrated climate change adaptation efforts across the organization Page 315 of 428 5.0 FUTURE DEMAND 5.1 Demand Impact and Demand Management Plan Population growth and its geography can have major impacts on the scale of services delivered by the City and the assets that support service delivery. The City's approaches to accommodate growth needs are described in the Official Plan. The 2014 Official Plan provides policies for guiding and directing growth and development to enable the City's success of achieving the vision to be a complete and healthy community. This section focuses on the capital growth expenditures planned by the City to meet growing demands and manage the risks to the service levels. Growth also results in an increasing asset portfolio over the forecast period with associated impacts on the operating budget, discussed further in Section 6.0 as part of the Lifecycle Strategy. The population of the City of Kitchener and surrounding areas has been rapidly growing over the past few decades and is expected to continue to grow at a similar pace in the coming years. The City monitors trends in its population to ensure that the associated impacts on service levels are well understood and that strategies are developed to manage risks related to the additional demands due to growth and changes in demographics. The 2014 Official Plan sets out the estimated population and employment forecasts to 2031. Updated forecasts are provided in the City's 2022 Development Charge Study, which forecasts that the City's population will increase from 250,247 in 2021 to 309,120 in 2036 (the current population (2023) is estimated at 270,000). Employment was estimated at 99,662 jobs in 2021, and is expected to reach 123,825 jobs by 2036. Demand drivers are circumstances that may impact future service delivery and use of assets. These drivers can include things such as population change, climate change, regulations, changes in demographics, seasonal factors, consumer preferences and expectations, technological changes, economic factors, environmental considerations, etc. The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.1. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices can include non -infrastructure solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 5.1. Further opportunities will be developed in future revisions of this AM Plan. Table 5.1: Demand Management Plan Population 270,000 (2023) 309,120 (2036)* Growth Aging Population 70 Population 70 population years and older years and older (9% in 2021)** (16% projection in 2041)** *2022 Development Charge Study **2019 Leisure Facilities Master Plan There will be a deficiency in community and recreation facilities, as well as increased Expansion and addition of community and recreation facilities, as well as construction of a new fire pressures on emergency station. response times Consideration of joint -use opportunities with private sector and school boards. The need for older adult Consideration of multi -use and senior -focused activities, programs, and facilities will continue to increase and multi -generational facilities as part of a 'community -hub' model (rather than stand-alone seniors' centres). Page 316 of 428 5.2 5.3 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 6.4. Acquiring new assets will commit the City of Kitchener to ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operations andmaintenance costs for inclusion in the long-term financial plan (Refer to Section 8). Climate Change Adaptation The impacts of climate change may have a significant impact on the assets under management and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a demand driver and a risk. The City of Kitchener's Corporate Climate Action Plan (CorCAP) is the City's guiding policy document on climate change in accordance with the Region of Waterloo's "A Climate Action Plan for Waterloo Region". The City of Kitchener's mitigation and adaptation strategy for the Corporate Climate Action Plan is to lead by example with action on climate change to reduce corporate greenhouse gas emissions and promote inclusive environmental sustainability and resilience. This supports the City's corporate mission of 'proudly providing valued services for our community, and strategic goals of environmental leadership, by working to ensure we can safeguard the City's assets and stakeholders.' We must consider how to manage our existing assets given potential climate change impacts for our region of Ontario. Risk and opportunities identified to date are shown in Table 5.2. Table 5.2: Managing the Impact of Climate Change on Assets and Services More extreme More flooding Physical damage to city Continue to conduct precipitation events events facilities as they become building condition increasingly unsuited to the assessments. Consider changing climate and more additional costs to state of frequent climate hazards, good repair needs forecasts resulting in costly repairs, as City gains further data on loss of functionality and asset deterioration rates. reduced lifecycle Gradual increase in Increased Buildings used as a refuge by Develop HVAC assessment average temperature, demand on citizens due to more program (already in extreme heat events cooling systems in extreme heat events progress) and complete city resulting in higher energy mechanical studies. use, increased costs and potential energy brown -outs in peak demand periods Additionally, the way in which we construct new assets should recognize that there is opportunity to build in resilience and adaptation to climate change impacts. Climate -resilient assets can accommodate or quickly recover from disruptions caused by severe climate events or chronic climate stresses, reducing the likelihood of a damaging or irreversible impaCt. 2 Building resilience can have the following benefits: ' Kitchener Changing for Good, Our Climate Strategy Action Plan, Sec 1.1 Z United Nations, Managing Infrastructure Assets for Sustainable Development, Sec 6.1, p 206 Page 317 of 428 ➢ Assets will withstand the impacts of climate change; ➢ Services can be sustained; and ➢ Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint Table 5.3 summarizes some asset climate change resilience opportunities. Table 5.3: Building Asset Resilience to Climate Change More extreme Damages to facilities Consider conducting vulnerability assessments precipitation events on critical facilities to increase their resiliency to climate change events Page 318 of 428 6.0 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how the City of Kitchener plans to manage and operate the assets to maintain current levels of service (Refer to Section 4) while managing life cycle costs. 6.1 Operations and Maintenance Plan Operations include regular activities to provide services and may not have a direct impact to the overall health of the asset. Examples of typical operational activities include cleaning, street sweeping, and asset inspection. Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate condition including regular ongoing day-to-day work necessary to keep assets operating. As well, maintenance activities strive to ensure that the asset's degradation follows the expected lifecycle rather than accelerating towards an earlier disposal or replacement cycle. Examples of typical maintenance activities waterproofing, brick and masonry block repairs, repainting, HVAC component replacements and repairs, generator testing, and walkway repairs. The City of Kitchener uses Trimble's Cityworks as their asset centric, centralized work management software solution. The software is an important tool for the City's Infrastructure Services divisions to plan and execute work orders and inspections, tracking costs as they relate to labour, material and equipment. A comprehensive list of workorder templates for this asset category can be found in Appendix A. The trend in operations and maintenance budgets are shown in Table 6.1. Table 6.1: Operations & Maintenance Budget Trends 2019 $14.5 million 2020 $14.9 million 2021 $15.4 million 2022 $15.9 million 2023 $20.6 million 2024 $21.3 million Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset inventory. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.1 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Page 319 of 428 30 FA -7 5 Figure 6.1: Operations and Maintenance Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current day dollars The operations and maintenance costs are forecasted to increase over the next 10 years in line with the additional and expanded facilities planned to be built. The current operations and maintenance budget is insufficient to proactively pursue planned maintenance. Maintenance is generally unplanned as demonstrated by the low planned to unplanned maintenance work ratio shown in Section 4.6. As the City develops maintenance programs and focuses on planned maintenance, it is expected that the need for unplanned repairs will decrease and result in overall lower lifecycle costs. 6.2 Renewal Plan Renewal is typically carried out through major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. There are instances where renewal is carried out by Infrastructure Services staff on an as needed basis (e.g. replacing a sanitary service or water valve). Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Table 6.2: Renewal Activities 2019 To be provided in future version of AM Plan 2020 To be provided in future version of AM Plan 2021 To be provided in future version of AM Plan 2022 To be provided in future version of AM Plan 2023 To be provided in future version of AM Plan 2024 $15.0 Page 320 0428 Assets requiring renewal are identified from one of two approaches in the Lifecycle Model ➢ The first method uses Asset Register data to project the renewal costs (current replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or ➢ The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). Various methodologies under the Alternate Method were used to forecast the renewal lifecycle costs for this AM Plan, as described in Section 3.1.4: Table 6.3: Useful Lives of Assets Substructure 40 (Rehabilitation at 5% cost of substructure value) Floor Construction 40 (Rehabilitation at 5% cost of substructure value) Roof Construction 40 (Rehabilitation at 5% cost of substructure value) Exterior Walls 40 (Rehabilitation at 5% cost of substructure value) Exterior Windows 30 Exterior Doors and Grilles 30 Exterior Horizontal Enclosures 20 Interior Partitions 50 Interior Doors 30 Interior Specialties 10 Stairs 50 Wall Finishes 20 Flooring 20 Ceiling Finishes 20 Stair Finishes 20 Conveying 25 Plumbing 30 HVAC 30 Fire Protection 30 Electrical Service 30 Lighting 30 Other Electrical 30 Communications, Electronic Safety and Security and Integrated Automation 10 Equipment and Furnishings 10 Special Construction 50 Sitework 30 Page 321 of %28 Figure 6.2: Age Distribution of Assets Age Estimated Service Life SPORT 80 RESIDENTIAL PARKS & OPEN SPACES F 50 80 PARKING GARAGES 80 OPERATIONS 80 GOLF so FIRE 80 CO M M U N ITY C ENTRES 80 COMMERCIAL 80 CEMETERIES 80 ARTS & CULTURE 80 ARENAS 80 AQUATICS 80 ADMINISTRATION 80 0 10 20 30 40 s0 60 70 8{I 90 Years 6.2.1 Renewal ranking criteria Asset renewals are typically undertaken to either: ➢ Ensure the reliability of the existing infrastructure to deliver the expected service it was constructed to, or ➢ To ensure the infrastructure is of sufficient quality to meet the service requirements. It is possible to prioritize renewals by identifying assets or asset groups that: ➢ Have a high consequence of failure, ➢ Have a condition score that is less than the threshold to provide an expected level of service ➢ Have high use and subsequent impact on users would be significant, ➢ Have higher than expected operational or maintenance costs, and ➢ Have potential to reduce life cycle costs by replacement with a modern equivalent asset that would provide the equivalent service. The preliminary ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.4. Risk assessments are performed at both the facility -level and the facility component level (described in Section 7.2). Page 322 of 428 Table 6.4: Renewal Priority Ranking Criteria Consequence of failure -Financial Impact -Health & Safety Impact 50% -Service Delivery Impact -Environmental Impact Probability of Failure -Physical Condition Rating 50% -Performance Rating Total 100% 6.3 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset inventory increases, renewal schedules are delayed and/or budgets are reprioritized. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 6.3. A detailed summary of the forecast renewal costs is shown in Appendix E. Figure 6.3: Forecast Renewal Costs 200 Growth Needs 180 operation and Maintenance Needs Renewal and Upgrade Needs (UnMnstrained) 160 10 -Year Average Annual Renewal and Upgrade Need IUnconstrained) ter} 140 10 -Year Average Renewal and Upgrade (Maintain LOS) a 120 a z 100 ii y 80 CL X W 60 40 20 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current day dollars. Page 323 of%28 Table 6.5: Forecast Renewal Activities 2024 $12.3M $45.2M $95.11VI 2025 $12.3M $45.2M $89.3M 2026 $12.3M $45.2M $21.2M 2027 $12.3M $45.2M $61.11VI 2028 $12.3M $45.2M $11.1M 2029 $12.3M $45.2M $18.11VI 2030 $12.3M $45.2M $53.4M 2031 $12.3M $45.2M $113.01VI 2032 $12.3M $45.2M $22.01VI 2033 $12.3M $45.2M $30.7M *Funding shown is averaged on an annual basis from the 10 -year current budget **Renewal need shown is averaged on an annual basis for the next 10 years The unconstrained renewal forecast requires an average of $51.5 million annually. In this scenario, the backlog is eliminated and the FCI improves from 9.9% to 6.7% by the end of 2033. The current budget is equal to an average of $12.3 million annually for renewal and upgrades. With this current budget, the FCI increases from 9.9% to 26.0% as the backlog continues to increase significantly over the 10 -year forecast period. To maintain the service level (FCI "'9.9%), it is estimated that the average annual renewal need is $45.2 million. Table 6.6 shows the FCI forecast with $45.2 million allocated across the Service Areas to maintain similar FCIs by the end of the 10 -year forecast. Table 6.6: Forecast Renewal Activities 2024 1 2025 1 2026 1 2027 1 2028 1 2029 2030 1 2031 2032 1 2033 2034 ADMINISTRATION 18.2% 19.9% 18.7% 17.3% 22.7% 22.2% 20.8% 21.1% 19.7% 18.7% 17.3% AQUATICS 22.4% 21.2% 19.6% 18.1% 20.9% 19.8% 19.5% 18.5% 17.0% 19.6% 18.1% ARENAS 4.8% 5.4% 3.0% M • •'. 5.6% 3.5% 2.7% M 7.5% 4.9% ARTS & CULTURE 12.8% 13.2% 11.8% 12.4% 12.3% 13.9% 13.3% 14.2% 12.7% 12.6% 11.7% CEMETERIES 8.2% 8.7% 7.2% 7.8% 8.8% 9.9% 8.4% 7.0% 6.0% 10.5% 9.2% COMMERCIAL 3.7% 11.7% 9.8% 7.7% 5.5% 7.6% 5.1% 2.7% M 3.5% M COMMUNITY CENTRES 13.5% 14.4% 14.6% 14.1% 14.8% 14.5% 13.9% 13.3% 12.5% 12.8% 13.1% FIRE 8.7% 8.2% 8.6% 9.2% 9.4% 8.9% 9.0% 8.2% 8.4% 9.9% 9.2% GOLF 6.7% 10.9% 7.4% 3.9% 2.1% MMMM 13.5% 9.9% OPERATIONS 6.3% 4.1% M • •'. M 15.3% 16.3% 14.9% 11.3% 7.9% 10.0% PARKING GARAGES 9.9% 12.0% 10.0% 9.8% 9.1% 12.3% 10.4% 10.5% 8.7% 11.6% 9.9% PARKS & OPEN 8.1% 8.2% 7.3% 6.2% 6.2% 6.9% 5.8% 5.8% 5.3% 9.3% 8.4% SPACES RESIDENTIAL 6.0% 6.4% 6.8% 7.1% 7.5% 7.9% 8.3% 8.6% 9.0% 9.4% 9.8% SPORT 8.6% 8.1% 5.8% 2.7% 2.2% 3.9% 2.4% IMM 11.2% 9.7% • 9.9% 10.8% 9.1% 7.8% 8.2% 11.8% 10.7% 10.0% 8.3% 10.9% 9.7% Page 324 of 428 The average annual investment of $45.2 million means that some portion of projects are deferred outside the 10 -year forecast, which poses a potential risk of higher required lifecycle activities which are difficult to estimate and are not considered in this forecast analysis. The higher risks are managed by using risk-based project prioritization and capital funding allocation, as managing the FCI (condition) and investment across Service Areas can be aligned with facility criticality. For example, Community Centres are generally more critical and may be maintained consistently to a lower FCI (better condition/higher investment) while Parks & Open Spaces may be maintained at a higher FCI (lower condition/less investment). This approach minimizes the risk associated to the backlog of renewal work carried over each year. 6.4 Acquisition Plan Acquisition reflects new assets that did not previously exist within the inventory. They may result from growth, demand, social or environmental needs. Assets may also be donated to the City of Kitchener though various means including subdivision development and expansion of existing services or the inclusion of new services. 6.4.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests; proposals identified by strategic plans or master plans; and partnerships with others. Potential upgrades and new works should be reviewed to verify that they are essential to the City's needs and fits long range planning. Proposed upgrades and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals by asset Leads can then be ranked by priority and available funds and scheduled in future works programs. Currently, no ranking criteria has been established for facility acquisitions, however this will be developed in future revision of this AM Plan. Forecast acquisition asset costs are summarized in Figure 6.4 and is equal to the proposed acquisition budget. The forecast acquisition capital works program is shown in Appendix B. Figure 6.4: Acquisition (Constructed) Summary Growth Needs---10-Yr Annual Average $70 $60 g $so h $40 Z $30 2 l7 $20 $10 -------------------------------------- 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current day dollars. When the City introduces new assets, there must be a recognition for the need for future operational funding for service, maintenance and renewal costs. Future depreciation must be accounted for when reviewing long term sustainability, lifecycle and total cost of ownership. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the asset steward. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 6.5. Page 325 of 428 $140 $120 $100 $80 z r $60 a $40 E $20 V Figure 6.5: Acquisition Summary 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current dollars. Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The City plans for growth such that there is sufficient community infrastructure and facilities to meet the current and projected needs of the population. In the City's 2019 Leisure Master Plan, the City recommended growth -related indoor recreation facilities considering factors such as existing/projected usage rates, estimated population growth, existing facility coverage based on geography, and public survey results: • Mill Courtland Community Centre Addition, year 2024 ($4.OM): Mill -Courtland is on the outer edge of the downtown and serves neighbouring communities like Rockway and Southdale, and therefore serves a wide Williamsburg demographic with varying interests. Mill Courtland will continue to experience programming and facility constraints as the downtown area intensifies. • Rosenberg Community Centre, year 2024 ($2.8M) —An additional community centre in the City's southwest area is a priority based on significant growth expected over the next 20 years. The current Williamsburg Community Centre is leased and does not provide enough space to meet current programming needs. • Forest Heights Community Centre Expansion, year 2028 ($6.OM) - Increased pressure from surrounding neighbourhoods in the northwest corner of the city suggest the Forest Heights community centre would benefit from additional space for the City. The expansion also provides an opportunity to integrate age -friendly recreation amenities and programming offered by the City. • Kitchener Indoor Recreation Complex (KIRC), year 2025 (Aquatic Centre and Indoor Turf $94.1M) —The 2005 and 2013 Leisure Facilities Master Plan recommended an aquatic facility in the southwest area of the City. All of the City's indoor pools are operating at or near maximum capacity, and during public consultation, residents expressed a strong interest in a pool, supporting a location in the southwest end of the City. The City also made a previous public commitment to an indoor turf facility at Kitchener Indoor Recreation Complex (KIRC) through the 2013 Leisure Facilities Master Plan. The new indoor turf supports the continued growth of soccer and indoor training and development for other field sports. • 91 Moore Avenue, year 2024 ($2.3M) In addition to the new recreation facilities and library space, the Kitchener Fire Department (KFD) has conducted studies to ensure adequate emergency response and protection services across the City, which have identified the need for an additional 8th fire station in order to respond to the significant growth occurring within the City (increased population, more tall buildings), and to help improve response times to increasing fire rescue and medical calls. The fire station has a budget of $7.3 million over 2024 and 2025 in the Capital Plan. Page 326 Of428 Acquiring these new assets will commit the funding of ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.6. These projections include forecast costs for acquisition, operation, maintenance, renewal, and upgrades. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to cost-effectively allocate the life cycle costs associated with the service provision. The proposed budget line (Average Annual Available Funding) indicates the estimate of available funding. The gap between the forecast work (10 Year Average Annual Need (Maintain LOS)) and the proposed budget is the basis of the discussion on achieving balance between costs, levels of service and risk to achieve the best value outcome. Figure 6.6: Lifecycle Summary $140 � operation and Maintenance Needs $120 5 $100 Renewal and Upgrade Need (Maintain LOS) c $60 a CL X $40 $20 $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 All figure values are shown in current day dollars. Gap: $32.9 M/yr The operating and maintenance needs covered by the Operating budget is required to increase annually as new assets are acquired. Though there is no current funding shortfall identified for acquisition needs, there is an average annual estimated gap of $32.9 million for renewal and upgrade needs. The pressures on the operating budget have been qualitatively noted in Section 6.1 but the gap has not been quantified in this AM Plan. The forecasts and estimated gap will be refined as the City incorporates more building condition assessments into the Capital Plan in place of the High Level Facility Breakdown approach. 6.5 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Currently, the City has no facilities formally identified for decommissioning and disposal, but will be considering these options for certain facilities as part of the strategy to reduce the funding gap. 6.6 Non -Infrastructure Solutions Non -Infrastructure solutions are infrastructure related costs that may not be associated with any one specific asset in the City's asset registry but are important in the planning and execution of the previous five asset lifecycle categories. Some of the non -infrastructure solutions can include the consultant costs in the creation of a master plan, working with partner organizations, customer surveys, and inventory updates. Page 327 of428 Table 6.7: Non -Infrastructure Solutions Associated Project List Facilities Designated Substances Survey (DSS) 2024-2025 $200,000 Funded Program AM Improvement Roadmap 2024-2027 $1,000,000 Funded Implementation GHG Pathways 2024 $300,000 Funded Building Condition On-going $100,000/yr Partially Funded Assessment program The City is conducting multiple studies, assessments and programs to understand specific needs and upgrades required at facilities. Additionally, the City began to address gaps in current asset management processes as well as address the growing deferred maintenance, escalating costs, and growing funding gap. The focus in 2024 is to develop an RFP for consulting services including funding for resource support. Master Plans and other studies related to facilities in individual Service Areas such as Fire and Library that are outside the Facility Management scope of work are not included in Table 6.7. Page 328 Of428 7.0 RISK MANAGEMENT PLAN The City of Kitchener is committed to identifying, assessing, and mitigating risks to ensure that corporate objectives are achieved. To this end, the City will maintain a long-term, robust Enterprise Risk Management strategy. Risk management is an integral part of management across the City. It forms part of strategic planning, business planning and project approval procedures. In addition, the policy assists in decision-making processes that will allocate resources to areas of highest risk. Identifying and managing risk is everyone's responsibility and is one component of good corporate governance 3. 7.1 Critical Assets Critical assets are defined as those assets that provide life safety and public health and well-being to the community at large based on Provincial standards. Assets found in this category may be included for having a high consequence of failure causing significant loss or reduction of service directly impacting services to the community. The City classifies each of its facilities with a Supporting Functional Use (SFU) rating, using the following criteria: • 5 — Critical — For delivery of life safety, emergency and vital City functions • 4 — Essential — For infrastructure and service delivery • 3 — Necessary— For delivery of community programs, services and recreation • 2 — Important — Supports delivery of community programs, services and recreation • 1—Ancillary— Minor structures / Mothballed assets / Non-functional for core services Critical assets are identified as those facilities with a SFU rating 3 and greater, and are summarized in Table 7.1 along with their typical failure mode and the impact on service delivery. Failure modes may include physical failure, collapse or essential service interruption. Table 7.1 Critical Assets Kitchener City Hall Physical Failure, Service Disruption of critical Delivery services Kitchener Operation Physical Failure, Service Disruption of City-wide and Facility Delivery critical services such as snow removal 3 City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 329 of 428 Disruption of critical Fire Stations Physical Failure, Service emergency services Delivery resulting in safety impacts to the community Physical Failure, Service Disruption of major services The AUD Delivery including hockey games and concerts Environmental impacts Control Station (Snow Physical Failure, Service when snow cannot be Storage) Delivery stored resulting in runoff and salt entering waterways Leisure Facilities — Significant localized service Community Centres, Physical Failure, Service disruption related to Arenas, Pools Delivery recreational activities for the community 3 City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 Page 329 of 428 By identifying critical assets and failure modes the City can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 7.2 Risk Assessment The City of Kitchener has adopted an impact criteria and risk category matrix that quantifies the impact and likelihood criteria and assigns a numerical value to the resulting score. Facilities Management division is currently implementing a modified version of the City's enterprise risk framework, and will be working to align with the enterprise framework in the future such that risk registers use the same terminology to ensure consistency in understanding across the City's assets. The risk registrar is an assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating and evaluation of the risk. The City will develop a risk treatment plan for non -acceptable risks as part of future improvement. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a 'financial shock', reputational impacts, or other consequences. Consequence of failure is determined based on the average rating across the four consequence categories in the following matrix: Table 7.2 Consequence of Failure Rating Scale Probability of Failure of a building component is determined by the average of the physical condition and performance ratings per the following tables: Page 330 of 428 Damages, losses, or Damages, losses, or Damages, losses, or Damages, losses, or Damages, losses, or Economic Financial fines of under fines of $30,000- fines of $120,000- fines of $500,000- fines of over $30,000 $120,000 $500,000 $1,000,000 $1,000,000 Potential for serious injury or affects to Potential for serious No obvious potential Potential for minor . health of one or more injury or affects to Potential for death or Health & Social Safety for injury or affects injury or affects to health of an individuals with a health of one or more individuals with a multiple deaths with probable permanent to health. individual. possibility of short possibility of loss of a damage. term disability or life. hospitalization. Major or Critical City-wide or Critical Small number of Significant localized service disruption or service disruption or customers Localized service disruption or impact impact, or there will impact, or there will Service experience disruption or impact or there will likely be likely be significant, likely be significant, disruption or impact and minor or no Delivery and no media media exposure is moderate local media negative, local or negative, national or exposure is experienced. exposure which may provincial media international media last several days. exposure which may exposure lasting experienced. last several days. several days or weeks. Asset Asset Asset Asset degradation/failure degradation/failure Asset degradation/failure degradation/failure poses risk of poses significant risk degradation/failure has minor impact to has significant short- environmental to environment Environmental Environment has negligible impact the environment term impact to the contamination and/or including a major long - on environment, including potential for environment including has significant long - term impact. Likely to emissions, and result in pollution. increased emissions or a likely increase of term impact. Likely a contamination. May pollution. emissions or pollution. substantial increase to become of Provincial emissions or pollution. or Federal importance. Probability of Failure of a building component is determined by the average of the physical condition and performance ratings per the following tables: Page 330 of 428 Table 7.3 Probability of Failure Rating Scale 1 Excellent /New 1 Asset is functioning as intended with no issues Renewal work including: and identified 2 Good 2 Asset is functioning but could use minor maintenance closure and disruption High Asset is functioning with difficulty and requires some 3 Fair 3 repairs/maintenance to correct function lighting Asset is barely functioning and will require replacement 4 Poor 4 in the near future 5 Very Poor 5 Asset has failed The City is currently completing building condition assessments to obtain more complete condition and risk scores at the building component level. This AM Plan estimates a risk score at the higher facility -level based on the SFU rating as a proxy for the Consequence of Failure rating and the FCI condition as the Probability of Failure for the overall facility. The forecasted work required on each facility forms the risk mitigation plan, and prioritization of projects is informed by the risk scores. The residual risk and mitigation costs of implementing the selected treatment plan for facilities in the Very High risk category are shown in Table 7.2. Table 7.4: Risks and Mitigation Plans Poor facility condition Kitchener City resulting in facility Very Hall closure and disruption High of critical services Renewal work including: Major rehabilitation of Berlin Tower (glass curtain walls), replacement of High lighting, elevator modernization, replacement of exterior aluminum wall panels $61.8M Fire Station 3 Poor facility condition Renewal work including: and resulting in facility Very Moderate $1.2M Ambulance closure and disruption High Roof replacement, LED Station in emergency services lighting Poor facility condition Renewal work including: Fire Station 1 resulting in facility Very High $7.8M closure and disruption High Roof replacement, HVAC in emergency services replacements Note * The residual risk is the risk remaining after the selected risk mitigation plan is implemented. Page 331 of%28 7.3 Infrastructure Resilience Approach The resilience of our infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to 'withstand a given level of stress or demand', and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership are key components to consistency. Currently,the City has identified risks in the Corporate Climate Action Plan, such as increased extreme precipitation events leading to more infrastructure failures and increased freezing rain and winter storm events leading to infrastructure damage. For a comprehensive approach to mitigating climate change and adapting to its impacts, the City is following industry frameworks from the Federation of Canadian Municipalities (FCM) 'Partners for Climate Protection' (PCP) and Local Governments for Sustainability (ICLEI) 'Building Adaptive and Resilient Communities' (BARC) frameworks. Recommended actions over the next few years include: • Continue to reduce GHG building emissions • Update and develop emergency management plans and procedures to include extreme weather protocol. • Complete risk assessment and associated modeling to safeguard critical infrastructure and prevent damage, and achieve structural integrity to withstand high winds, snow loads, etc. • Explore anti -icing technologies, particularly for public facility entranceways and spaces 7.4 Service and Risk Trade -Offs The decisions made in balancing the costs and resource requirements for maintaining expected levels of service to addressing risk are based on the objective to achieve the optimum benefits from the available resources. 7.4.1 Potential Gaps There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include: ■ Planned maintenance (preventive maintenance programs) ■ Deferred renewal work ($32.9 million per year) 7.4.2 Service trade-off If there is forecasted work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include: ■ If some of the planned maintenance is not completed, this typically results in more unplanned service disruptions ■ Deferred capital renewal work may result in lower facility condition that does not meet user expectations and potential facility closures ■ Insufficient upgrades related to accessibility, energy efficiency, and resiliency to climate change 7.4.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include: ■ An increase in unplanned repairs and associated service disruptions ■ Higher lifecycle management costs, deteriorating facilities, and potential facility closures ■ Deteriorating facilities may be unsafe and expose the City of Kitchener to potential liabilities Page 332 of 928 The added potential costs due to underfunded planned maintenance and deferral of renewal work is not estimated in the forecasts of this Asset Management Plan. Page 333 of 0428 8.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this AM Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 8.1 Financial Sustainability and Projections 8.1.1 Sustainability of service delivery Medium term —10 year financial planning period This AM Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10 year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the first 10 years of the planning period to identify any funding shortfall or surpluses. The forecasted acquisition, operations, maintenance and renewal costs over the 10 year planning period is $79.1M on average per year. The proposed (budget) operations, maintenance and renewal funding is $46.3 million on average per year giving a 10 year funding shortfall of $32.9 million per year. This indicates that 58% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the proposed budget. 8.1.2 Forecast Costs (outlays) for the long-term financial plan Table 8.1 shows the forecast costs (outlays) required for consideration in the 10 year long-term financial plan. Providing services in a financially sustainable manner requires a balance between the forecast outlays required to deliver the agreed service levels with the planned budget allocations in the long-term financial plan. A gap between the forecast outlays and the amounts allocated in the financial plan indicates further work is required on reviewing service levels in the AM Plan (including possibly revising the long-term financial plan). We will manage the 'gap' by developing this AM Plan to provide guidance on future service levels and resources required to provide these services in consultation with the community. Forecast costs are shown in 2023 -dollar values (millions). Table 8.1: Forecast Costs (Outlays) for the Long -Term Financial Plan 2024 $57.5M $21.3M $45.2M - 2025 $53.4M $21.9M $45.2M - 2026 $0.1M $22.5M $45.2 - 2027 $2.7M $22.5M $45.2M - 2028 $2.8M $22.5M $45.2M - 2029 - $22.6M $45.2M - 2030 - $22.6M $45.2M - Page 334 of 428 2031 - $22.6M $45.2M - 2032 - $22.6M $45.2M - 2033 - $22.6M $45.2M - 8.2 Funding Strategy The proposed funding for assets is outlined in the City's budget and Long -Term financial plan. The financial strategy of the City determines how funding will be provided, whereas the AM Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. 8.3 Valuation Forecasts 8.3.1 Asset valuations The best available estimate of the value of assets included in this AM Plan are shown below. The assets are valued by various methods based on available information including unit construction costs, insurance valuations, and building condition assessment reports. Replacement Cost (Current) $1.95 billion 8.3.2 Valuation forecast Asset values are forecast to increase as additional assets are added from service. Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. 8.4 Key Assumptions Made in Financial Forecasts In compiling this AM Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions related to the financial forecasts made in this AM Plan are: ■ Acquisition Forecast: o Growth projects are based on projects and associated costs identified in the City's Capital Plan. Most of these projects were also identified in the City's 2022 Development Charges Study and 2019 Leisure Master Plan. ■ Renewal forecast: o The potential impacts of climate change on state of good repair costs are not included o The potential increases in lifecycle costs due to deferred renewal work are not included ■ Operations & Maintenance Forecast o The potential impacts of climate change on maintenance costs are not included o The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition forecast Page 335 of 428 o Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan 8.5 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale in accordance with Table 8.2. Table 8.2: Data Confidence Grading System A. Very High Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate± 2% B. High Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Medium Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Low Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Very Low None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 8.3. Page 336 of '428 Table 8.3: Data Confidence Assessment for Data used in AM Plan Demand drivers High Population growth was updated in the City's 2022 Development Charges Study, and demographic drivers are provided in the 2019 Leisure Facilities Master Plan. Growth projections High Refer to demand drivers Acquisition forecast High In addition to the new fire station, new leisure facilities and expansions were recommended in the 2019 Leisure Facilities Master Plan. Operation forecast Medium The operations and maintenance forecast does not quantity current shortfalls such as underfunding for planned maintenance Maintenance forecast Medium Refer to Operation forecast Renewal forecast Three approaches as described in more detail in Section - Asset values 6.2: • Simple Facility—generally used for less critical Medium facilities, such as sheds or storage buildings. • High -Level Facility Breakdown —facilities for which a building condition assessment has not yet been completed. • Capital Plan with BCA recommendations -Asset useful lives Medium • Simple Facility — assumes 50 years life • High Level Facility Breakdown - typical useful lives summarized in Section 6.2 • Capital Plan with BCA recommendations — remaining life based on the BCA forecast - Condition modelling Medium Condition is based on FCI, which is calculated based on the forecasted renewal needs Disposal forecast n/a Disposal strategy is to be developed The estimated confidence level for and reliability of data used for the financial analysis in this AM Plan is considered to be medium. Page 337 0428 9.0 PLAN IMPROVEMENT AND MONITORING 9.1 Status of Asset Management Practices 9.1.1 Accounting and financial data sources This AM Plan does not include the depreciation valuation and therefore does not utilize the City's accounting data source (Tangible Capital Asset data set). 9.1.2 Asset management data sources This AM Plan also utilizes asset management data. The source of the data is: • Facilities Management Master List of Facilities o List of facilities included and not included in this AM Plan 0 2023 current replacement values o Other facility parameters such as type of building, number of storeys, square foot area, and building perimeter • Informal City staff survey conducted in September 2023 • Cityworks • Facilities Management Capital Plan, including forecast of renewal, upgrade, growth, and studies 9.2 Improvement Plan It is vital in any AM Plan to recognize areas of future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this AM Plan is shown in Table 9.1. Table 9.1: Improvement Plan 1 Complete building condition Facilities None 2024 assessments for remaining facilities Management (excluding those identified as less critical 'simple facilities') 2 Incorporate building condition Facilities Building 2024 assessments into Capital Plan and Management condition renewal forecasts assessments 3 Re -assess FCI and state of Facilities Updated 2024 infrastructure Management Capital Plan 4 Determine targets for FCI Facilities Updated 2024 Management Capital Plan 5 The overarching corporate goal is to Energy Updated 2025 achieve 80% GHG reduction by 2050. Management Corporate Develop specific goals related to Climate Action GHG reduction and energy Plan consumption. 6 Consider past safety issues and Facilities None 2025 incorporate added safety elements Management into corporate facility design standards Page 338 0428 7 Complete accessibility audits and Facilities Updated 2026 determine accessibility upgrade Management Capital Plan needs 8 Determine funding gap related to Facilities Develop 2025 planned maintenance and Management preventive implement formal preventive maintenance maintenance activities as required to program needs lower unplanned maintenance and risk of unexpected service disruptions 9 Monitor potential impacts on Facilities Building 2026 accelerated deterioration of facility Management condition elements due to extreme weather assessments events, and account for added costs in renewal forecasts 10 Align AM Plan risk assessment with Facilities Building 2025 Enterprise risk framework Management condition assessments 11 Develop strategies regarding Facilities None 2025 disposals, acquisitions, temporary Management facilities, replacement versus and Finance rehabilitations of old facilities as part of overall approaches to manage the funding gap 12 Formalize governance between other Facilities None 2025 City divisions for assets such as Management parking lots and EV charging stations and other City Divisions (Parking, Parks) 9.3 Monitoring and Review Procedures This AM Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated on at a maximum of every 5 years to ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, acquisition and asset disposal costs and planned budgets. Page 339 of '428 10.0 REFERENCES ■ United Nations, Managing Infrastructure Assets for Sustainable Development ■ Kitchener Changing for Good, Our Climate Strategy Action Plan ■ City of Kitchener, Corporate Risk Management (GOV-COR-016), p 2 ■ O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure Page 340 0428 11.0 APPENDICES Appendix A Work Order Templates Table Al — Work Order Templates Work Orders for Entire Facility: Accessibility Audit Use for: Accessibility Audits SERVICE Used for: Asbestos inspections. Attach to Asbestos Inspections SERVICE appropriate facility. Building Condition Use for: Building Condition Assessments, structural Assessment inspections, assessments related to condition. SERVICE Attach to Cityworks projects only. Use for multi - asset renovations and new construction, where Building Renovations / New costs are not specific to an asset type, e.g. architectural specifications for an area renovation. BETTERMENT Construction Group work orders as project work orders. Once project is complete, inventory/update objects in Cityworks. Carpenter Shop Use for : Carpenter Shop Maintenance. Cleaning, Maintenance tool maintenance, stocking, organization. ROUTINE Use for: Studies and consulting services not related Consulting Services & to new construction or BCAs, energy audits or SERVICE Studies accessibility audits. Used for: Daily FM Security activities, court dates. Corporate Security For Event support - attach to Events (Security). Activities Miscellaneous support to specific facilities- attach SERVICE this template to correct facility. Use for: Building/modifying/installing items related to another divisions business, not related to a Custom Item Fabrication facility or any asset in Cityworks, e.g. working on a SERVICE fleet truck interior, parade floats, events related items. Use for: Work related to sustainability & energy Energy Audit SERVICE audits. Use for: Custodial timesheets - Support for events, Events (FM Custodial) typically FM staff. SERVICE Use for: FM Trade activity that supports a special event. Use for special construction items like Events (FM Trades) SERVICE parade floats. Use for hanging event flags & banners. Events (Security) Use for: FM Security activity that specifically SERVICE supports a special event. Use for: Custodial timesheets - Regular cleaning SERVICE Facility Custodial Activities activities and contracted custodial (e.g. Cheema or other contractor). Use for: Cleaning supplies, paper products, SERVICE Facility Custodial Supplies custodial chemicals. Use for: Custodial timesheets - Any outside work, Facility Outside e.g. snow removal, splash pad cleaning, litter pick ROUTINE Maintenance up, etc. Facility Programming Use for: Custodial timesheets - Set-ups or support for facility programming during normal working SERVICE Support hours. Page 341 of %28 Object Work Order Descriptions with Uniformat Code Page 342 of 428 Use for : Custodial timesheets - All VPP & City Hall & Facility Rentals other facility rental set-ups / support are logged SERVICE where request originated - don't use Guelph St here, including any extra hours. Use for: Time spent collecting FM asset inventory FM Asset Inventory during targeted collection activities, not related to a Collection SERVICE Service Request or a Work Order. A generic work Interior Plant Maintenance order has been created for this activity. FM Equipment Use for: Year-end equipment reconciliation. For Reconciliation SERVICE use by Administrative staff only. Use for: General maintenance activities that do not relate specifically to an asset / Uniformat code. Does not include the repair of locks or door Includes providing access to facilities, clean up after Locks/Keys - Lock Shop a flood, clean up after a tenant move, checking hazardous waste bins, moving items like BBQs from Supplementary Components or C1030.90 Interior one location to another, delivering sand bags, Maintenance moving Christmas trees from one location to General Services another, assisting with staff moves, moving boxes. ROUTINE include cutting keys - Facility - Locks/Keys - For graffiti removal or other vandalism repairs, please use the appropriate Uniformat code for the object being worked on. Object Work Order Descriptions with Uniformat Code Page 342 of 428 When moving items- attach work order to building where request originated - don't use Guelph St Storage for everything! Use for: Interior Plant Maintenance- used by Interior Plant Maintenance ROUTINE Horticulture staff only. Used for: Re -stocking, organizing, etc. lock shop. Does not include the repair of locks or door Locks/Keys - Lock Shop hardware - see B2050.90 Exterior Door Supplementary Components or C1030.90 Interior SERVICE Maintenance Door Supplementary Components. Does not include cutting keys - Facility - Locks/Keys - New/Replace Keys. Use for: New and replacement keys only. Does not Locks/Keys - New/Replace include the repair of locks or door hardware - see 82050.90 Exterior Door Supplementary SERVICE Keys Components or C1030.90 Interior Door Supplementary Components . Locks/Keys -Re-Key Use for: Re -keying a building. SERVICE Building Pest Control Use for: Pest Control. SERVICE Use for : Shop/Vehicle maintenance, cleaning, tool Shop/Vehicle Maintenance ROUTINE maintenance, stocking, organization. Use for: Operations snow removal at facility sites. Snow Removal - Site Does not include roof snow removal- see B30> SERVICE Service Roof Snow Removal B30. Waste - Hazardous Waste Use for: Hazardous waste removal. SERVICE Removal Waste Audit Use for: Waste Audits - attach to specific facility. SERVICE Mat Service Use for: Winter mat service. SERVICE Object Work Order Descriptions with Uniformat Code Page 342 of 428 Time spent investigating issue, determining work required, responsibility, quotes, consultations, etc. May include time spent testing objects / components as part of troubleshooting. Includes time spent prior to starting actual work. Attach WO to object where issue has originated, e.g. if a leak investigation Investigate involves roof, HVAC equipment and plumbing, and the issue is SERVICE determined to be plumbing, attach the work order to the correct plumbing object. Plan/Procure E.g. Investigate plumbing leak > WO type: Investigate Dom Water Piping D2010.40 Design, consulting, purchase. Typically used for specifications, tender preparation, consulting fees to support capital maintenance projects. Should also be used when designing / planning in-house projects or work. E.g. Specifications to support roof tender > WO type: Plan/Procure Roofing 83010.00 E.g. Designing custom cabinetry > WO type: Plan/Procure Casework E2010.30 SERVICE Installation of new equipment or objects, e.g. install new furnace, or construction of custom items for installation. Does not include installing new components on or in an object- this would be considered a Repair(React), Maintain(Plan) or Install Rehabilitation. SERVICE E.g. Installing a new furnace > WO type: Install Heat Generation D3020.10 E.g. Carpenter building custom window frame for operating window (i.e. opens) > WO type: Install Opertng Window 82020.10 Reactive / unplanned repair to equipment or object. Includes replacing broken components of the object. Use this for unexpected repairs or those resulting from vandalism. Maintains the lifecycle of the object. E.g. Repair a broken pipe > Repair(React) Dom Water Piping Repair(React) D2010.40 ROUTINE E.g. Replacing a broken component in a cooling tower > Repair(React) Central Cooling D3030.10 E.g. Repair broken glass in an exterior entrance door or window > Repair(React) Ext Ent Door 82050.10 E.g. Repair a broken exterior window > Repair(React) Fix Window 82020.20 Planned / preventative maintenance to equipment or object. Use this for preventative maintenance activities only. Maintains the lifecycle of the object. Maintain(Plan) E.g. Filter replacement in a furnace > WO type: Maintain(Plan) ROUTINE Heat Generation D3020.10 E.g. Replacing a belt in a cooling tower > WO type: Maintain(Plan) Central Cooling D3030.10 Inspection or testing of equipment or object. Relates to Inspect mandatory or legislated inspections, typically part of an SERVICE inspection program. Note- use Investigation when time is spent Page 343 of 428 Rehabilitate Decommission investigating an issue- this may include testing components but would not be considered an Inspection. E.g. Generator testing > WO type: Inspect Generators D5010.10 E.g. Elevator inspections > WO type: Inspect Elevator D1010.10 E.g. Boiler water testing > WO type: Inspect Heat Generation D3020.10 Rehabilitation / Retrofit. Work that extends lifecycle of equipment or object, and returns the object to its original state (e.g. roof replacement, wall painting as part of cyclical re- painting schedule). This is typically a capital maintenance project but can also include work such as re -painting a room if on a re- painting schedule. Does not include planned preventative maintenance activities - this is Maintain(Plan). Does not include work that is required due to an unexpected issue- this is Repair(React). E.g. Domestic hot water tank rehabilitation (relined, replaced anodes) > WO type: Rehabilitate Dom Water Equip D2010.20 E.g. Roof replacement > WO type: Rehabilitate Roofing 83010.00 E.g. Re -painting a room as part of a cyclical re -painting schedule, e.g. we re -paint every 10 year > WO type: Rehabilitate Fix Partition C1010.10 Decommission equipment but leave in place. E.g. Decommission an air -handling unit > WO type: Decommission AHU D3050.50 Commissioning HVAC equipment. This workorder template is only available on HVAC equipment. BETTERMENT ROUTINE Commission ROUTINE E.g. Commissioning a cooling tower > WO type: Commission Central Cooling D3030.10 Removal of equipment or object. Remove ROUTINE E.g. Removing a cooling tower prior to installation of new cooling tower > WO type: Remove Central Cooling D3030.10 A service provided that is not related to repair or planned maintenance or inspection of an object. Typically facilitates the work being done. Does not impact the asset lifecycle or change the value of an asset. Service E.g. Towing of lifts, provision of lifts to access objects, duct SERVICE cleaning, resetting a breaker in an electrical panel, resetting a GFI receptacle, moving furniture, cleaning windows, removing plumbing fixtures to facilitate a tiling job, winterizing / summerizing water piping. E.g. Exterior window cleaning > WO type: Service Ext Window Cleaning 82020.00 Bulk supplies purchase for facilities / object / equipment maintenance. Materials for individual jobs / projects should be Supplies captured on the job work order, e.g. if parts are required for a ROUTINE reactive repair, the cost of materials can be charged to the Repair (React) work order. Page 344 of 428 E.g. Pool chemicals, softener salt, custodial chemicals, including any labour to deliver or distribute supplies, filters, etc. > WO template type: Supplies AHU F3050.50 Note that in some instances, bulk purchases for all facilities will use a generic WO- please coordinate through Support Services / FM (Beatrice or Michele) Project management labour, permits, fees, consultants performing project management on behalf of City. Note - Consulting services that support capital projects should use the PM & Fees Plan/Procure work order template type. SERVICE E.g. IRC manages a roofing project > WO type: PM & Fees Roofing 83010.00 Page 345 of 428 Appendix B Acquisition Forecast B.1—Acquisition Forecast Assumptions and Source Growth projects are based on projects and associated costs identified in the City's Capital Plan. Most of these projects were also identified in the City's 2022 Development Charges Study and 2019 Leisure Facilities Master Plan. B.2 —Acquisition Project Summary The project titles included in the lifecycle forecast are included here. Mill Courtland Community Centre 2023 - $4.OM Addition $53AM - $53AM Rosenberg Community Centre 2024 - $2.8M 91 Moore Avenue (Structural projects for 2024 - $2.3M niches) $2.8M - $2.8M Kitchener Indoor Recreation Complex 2025 - $94.1M (KIRC) - - - Fire Station 8 2025 - $7.3M Forest Heights Community Centre 2028 - $6.OM Expansion - - - B.3 —Acquisition Forecast Summary Table B3 - Acquisition Forecast Summary 2024 $57.5M - $57.5M 2025 $53AM - $53AM 2026 $0.1M - $0.1M 2027 $2.7M - $2.7M 2028 $2.8M - $2.8M 2029 - - - 2030 - - - 2031 - - - 2032 - - - 2033 - - - Page 346 Of428 Appendix C Operation & Maintenance Forecast CA — Operation & Maintenance Forecast Assumptions and Source • The current operating budget is increased based on the percentage increase in the asset portfolio (by replacement value) identified in the acquisition forecast • Potential gaps in the operating budget, such as underfunding in the planned maintenance activities have not been quantified in this AM Plan C.2 — Operation & Maintenance Forecast Summary Table C2 — Operation & Maintenance Forecast Summary 2024 $21.3M - $21.3M 2025 $21.3M $0.6M $21.9M 2026 $21.3M $1.2M $22.5M 2027 $21.3M $1.2M $22.5M 2028 $21.3M $1.2M $22.5M 2029 $21.3M $1.3 M $22.6M 2030 $21.3M $1.3 M $22.6M 2031 $21.3M $1.3 M $22.6M 2032 $21.3M $1.3M $22.6M 2033 $21.3M $1.3M $22.6M Page 347 of 428 Appendix D Renewal Forecast Summary DA — Renewal Forecast Assumptions and Source • The potential impacts of climate change on state of good repair costs are not included • The potential increases in lifecycle costs due to deferred renewal work are not included • The forecast is based on three approaches: • Simple Facility—generally used for less critical facilities, such as sheds or storage buildings. Residential facilities are treated as one asset and assumed to require an average annual investment rate of 2% of facility replacement value. Non-residential facilities are also treated as one asset and renewed at end - of -life. • High -Level Facility Breakdown —facilities for which a building condition assessment has not yet been completed. The facility is broken down into 27 elements (Uniformat) with estimated costs (based on typical percentage breakdowns provided through the facility costing software RS Means) and estimated condition ratings by City staff. The useful lives of assets used to develop projected asset renewal forecasts are shown in Table 6.3. • Capital Plan with BCA recommendations —facilities for which a building condition assessment has been completed and those recommendations have been incorporated into the Facilities Management Capital Plan • Forecast will improve as additional BCAs are completed and incorporated into Capital Plan, replacing High - Level Facility Breakdown approach • Renewal forecast also includes upgrades which are typically included as part of state of good repair projects (such as energy efficiency upgrades as part of HVAC and lighting replacements) D.2 — Renewal Project Summary Project titles are only available for facilities with BCAs completed. Projects are listed in the Capital Plan developed by Facilities Management. D.3 — Renewal Forecast Summary Table D3 - Renewal Forecast Summary 2024 $45.2M $12.3M 2025 $45.2M $12.3M 2026 $45.2 $12.3M 2027 $45.2M $12.3M 2028 $45.2M M $12.3M 2029 $45.2M M $12.3M 2030 $45.2M $12.3M 2031 $45.2M $12.3M 2032 $45.2M $12.3M 2033 $45.2M $12.3M Page 348 Of428 D.4 - FCI Forecast (Renewal Budget) The FCI increases (lowers condition) from 9.9% to 26.0% with the available funding of $12.3M/yr. ADMINISTRATION 18.2% 21.0% 20.8% 20.5% 26.9% 27.4% 27.1% 28.4% 28.1% 28.2%--27.8% AQUATICS 22.4% 22.4% 22.1% 21.7% 25.8% 25.9% 26.7% 26.9% 26.7% MM ARENAS 4.8% 7.3% 7.0% �I 7.0% 7.7% 15.4% 15.4% 16.5% 16.5% 25.2%"24.7% ARTS & CULTURE 12.8% 14.5% 14.5% I' 16.3% 17.5% 20.5% 21.2% 23.4% 23.3% 24.5% 24.9% CEMETERIES 8.2% 10.0% 9.7% Ir11.6% 13.9% 16.3% 16.0% 15.8% 16.1% 21.9% 21.9% COMMERCIAL 3.7% 13.6% 13.5% I' 13.3% 13.0% 17.0% 16.3% 15.8% 16.6% 20.3% 19.7% COMMUNITY 13.5% 15.1% 16.0% II 16.2% 17.6% 18.0% 18.1% 18.2% 18.1% 19.1% 20.0% CENTRES FIRE 8.7% 8.9% 10.1% I' 11.4% 12.4% 12.6% 13.4% 13.3% 14.3% 16.6% 16.6% GOLF 6.7% 13.5% 12.6% I' 11.8% 12.5% 14.3% 13.4% 12.7% 11.8% MM OPERATIONS 6.3% 6.7% 6.4% II 6.2% 11.0% 28.6% MMMM ..' PARKING 9.9% 13.7% 13.4% 15.8% 20.7% 20.5% 22.3% 22.2% 26.891- GARAGES PARKS &OPEN 8.1% 9.0% 9.0% I r8.79. 9.7% 11.2% 11.1% 11.9% 12.3% 17.2% SPACES a RESIDENTIAL 6.0% 7.5% 9.1% 1p 10.6% 12.2% 13.7% 15.3% 16.8% 18.4% 19.9% 21.5% SPORT 8.6% 10.4% 10.4% 9.6% 11.3% 15.3% 16.1% 16.4% 15.8% �M • 9.9% 12.4% 12.3% 12.6% 14.7% 19.9% 20.4% 21.4% 21.3% 25.5% 26.0% Page 349 of 428 Appendix E Disposal Summary No disposals identified in this AM Plan. Disposal strategy to be developed. Page 350 of 428 Appendix F Budget Summary by Lifecycle Activity The budget for acquisition is equal to the forecast, which is based on the Capital Plan. The budget for operations and maintenance is based on the current 2024 budget with increases assumed over the next 10 years to align with growth in the asset portfolio. For renewal, which includes currently planned upgrades related to accessibility and GHG emission reductions, the budget is based on funding specific to renewal and green projects. Renewal for parking garages is also included at an average annual amount of $1.3M. Table F1 — Budget Summary by Lifecycle Activity 2024 $57.5M $21.3M $15M - $93.8M 2025 $53AM $21.9M $14AM - $89.8M 2026 $0.1M $22.5M $10.3M - $32.9M 2027 $2.7M $22.5M $10.7M - $36M 2028 $2.8M $22.5M $11.1M - $36AM 2029 $OM $22.6M $11.5M - $34.1M 2030 $OM $22.6M $11.6M - $34.2M 2031 $OM $22.6M $13.9M - $36AM 2032 $OM $22.6M $12M - $34.6M 2033 $OM $22.6M $12.2M - $34.8M Page 351 of 428 Appendix G List of Facilities included in Asset Management Plan 2049996 181 PATRICIA AVENUE RESIDENTIAL RESIDENTIAL 2022518 181 PATRICIA AVENUE RESIDENTIAL ACCESSORY RESIDENTIAL 2023879 187 PATRICIA AVENUE RESIDENTIAL RESIDENTIAL 2021552 191 PATRICIA AVENUE RESIDENTIAL RESIDENTIAL 2015251 2 KING ST W ADMINISTRATION 2006579 20 DAVID STREET RESIDENTIAL RESIDENTIAL 2019878 285 VICTORIA STREET SOUTH RESIDENTIAL RESIDENTIAL 2015422 44-50 GAUKEL STREET COMMERCIAL ARTS & CULTURE 2016224 79 JOSEPH STREET COMMERCIAL COMMERCIAL 2008287 91 MOORE AVE CEMETERIES 2084489 ACTIVA SPORTSPLEX ARENAS 2053780 ADMIRAL PARK RINK SHACK PARKS & OPEN SPACES 2151054 BATTLER YARD - SSDF DISCHARGE CONTROL STATION OPERATIONS 2145214 BATTLER YARD WASHROOM BUILDING OPERATIONS 2053781 BELMONT PARK RINK SHACK PARKS & OPEN SPACES 2011452 BRAMM STREET SAND/SALT BUILDING OPERATIONS 2015841 BRAMM STREET STORAGE SHED OPERATIONS 2085696 BRAMM STREET TRAFFIC SHOP OPERATIONS 2014762 BRAMM STREET VEHICLE WASH BUILDING OPERATIONS 2004558 BREITHAUPT CENTRE POOL AQUATICS 2005702 BREITHAUPT PARK COMFORT STATION PARKS & OPEN SPACES 2004567 BREITHAUPT PARK GARAGE PARKS & OPEN SPACES 2004130 BREITHAUPT PARK PICNIC SHELTER PARKS & OPEN SPACES 2132011 BREITHAUPT PARK RINK SHACK PARKS & OPEN SPACES 2085202 BREITHAUPT PARK SPLASH PAD AND PUMP HOUSE PARKS & OPEN SPACES 2007156 BRIDGEPORT CHILD CARE CENTRE COMMERCIAL 2007374 BRIDGEPORT COMMUNITY CENTRE COMMUNITY CENTRES 2085701 BRIDGEPORT COMMUNITY CENTRE RINK SHACK PARKS & OPEN SPACES 2007418 BRIDGEPORT MEMORIAL CEMETERY CHURCH CEMETERIES 2053072 BUDD PARK SPORTS FACILITY SPORT 2086072 BUDD PARK UTILITY BUNKER PARKS & OPEN SPACES 2019323 CAMERON HEIGHTS COLLEGIATE INSTITUTE & POOL AQUATICS 2011031 CENTRE IN THE SQUARE ARTS & CULTURE 2033722 CENTREVILLE CHICOPEE COMMUNITY CENTRE COMMUNITY CENTRES CENTREVILLE CHICOPEE COMMUNITY CENTRE RINK 2132012 PARKS & OPEN SPACES SHACK CENTREVILLE CHICOPEE COMMUNITY CENTRE SPLASH 2158414 COMMUNITY CENTRES PAD SHACK 2038759 CHANDLER MOWAT COMMUNITY CENTRE COMMUNITY CENTRES CHANDLER MOWAT COMMUNITY CENTRE GARDEN 2153154 COMMUNITY CENTRES SHED Page 352 of 428 2132014 CHANDLER MOWAT COMMUNITY CENTRE RINK SHACK PARKS & OPEN SPACES 2088369 CHARLES AND BENTON PARKING GARAGE PARKING GARAGES 2149074 CHERRY PARK PICNIC SHELTER PARKS & OPEN SPACES 2132015 CHERRY PARK RINK SHACK PARKS & OPEN SPACES 2132315 CIVIC DISTRICT PARKING GARAGE PARKING GARAGES 2016639 CLOCK TOWER PARKS & OPEN SPACES 2015113 CONRAD CENTRE FOR THE PERFORMING ARTS ARTS & CULTURE 2017132 CONWAY PARK RINK SHACK PARKS & OPEN SPACES 2132016 COUNTRY CLAIR PARK RINK SHACK PARKS & OPEN SPACES 2046092 COUNTRY HILLS COMMUNITY CENTRE COMMUNITY CENTRES 2132017 COUNTRY HILLS COMMUNITY CENTRE RINK SHACK PARKS & OPEN SPACES COURTLAND AVENUE STORAGE BUILDING (HYDRO 2025660 PARKS & OPEN SPACES SUBSTATION) 2012733 CROSBY PARK FIELD HOUSE PARKS & OPEN SPACES 2009868 DON MCLAREN ARENA ARENAS DOON PIONEER PARK COMMUNITY CENTRE AND 2050466 COMMUNITY CENTRES LIBRARY 2137858 DOON PIONEER PARK COMMUNITY GARDEN SHED COMMUNITY CENTRES 2133434 DOON VALLEY GOLF CART STORAGE GOLF 2050427 DOON VALLEY GOLF CLUB HOUSE GOLF 2085568 DOON VALLEY GOLF COMFORT STATION GOLF 2133431 DOON VALLEY GOLF COMFORT STATION 4TH HOLE GOLF 2053787 DOON VALLEY GOLF CONCESSION BUILDING GOLF 2050702 DOON VALLEY GOLF MAINTENANCE BUILDING GOLF 2050145 DOON VALLEY GOLF PUMP HOUSE GOLF 2053769 DOON VALLEY GOLF RAIN SHELTER 1 GOLF 2085569 DOON VALLEY GOLF RAIN SHELTER 2 GOLF 2085570 DOON VALLEY GOLF RAIN SHELTER 3 GOLF 2140872 DOON VALLEY GOLF RAIN SHELTER 4 GOLF 2140873 DOON VALLEY GOLF RAIN SHELTER 5 GOLF 2141037 DOON VALLEY GOLF RAIN SHELTER 6 GOLF 2133436 DOON VALLEY GOLF STARTER SHED 1 GOLF 2140852 DOON VALLEY GOLF STARTER SHED 2 GOLF 2053785 DOON VALLEY GOLF STORAGE BUILDING GOLF 2053786 DOON VALLEY GOLF STORAGE SHED GOLF 2011368 DOWNTOWN COMMUNITY CENTRE COMMUNITY CENTRES 2014592 DUKE AND ONTARIO STREET PARKING GARAGE PARKING GARAGES 2053788 EBY PARK FIELD HOUSE PARKS & OPEN SPACES 2014036 EBY PARK PICNIC SHELTER PARKS & OPEN SPACES 2149151 EDEN OAK PARK RINK SHACK PARKS & OPEN SPACES 2037557 FIRE STATION 1 FIRE 2158538 FIRE STATION 1 - DIRECT DETECT OFFICE FIRE 2158540 FIRE STATION 1- EQUIPMENT/TRACTOR SHED FIRE Page 353 of %28 2158536 FIRE STATION 1- STORAGE SHED FIRE 2005513 FIRE STATION 2 FIRE 2054504 FIRE STATION 3 AND AMBULANCE STATION FIRE 2033616 FIRE STATION 4 FIRE 2035460 FIRE STATION 5 FOREST HEIGHTS COMMUNITY CENTRE FIRE 2050710 FIRE STATION 6 FIRE 2084490 FIRE STATION 7 FIRE 2156714 FOREST HEIGHTS COMMUNITY CENTRE RINK SHACK PARKS & OPEN SPACES 2036689 FOREST HEIGHTS POOL AND LIBRARY SPORT 2007821 GEORGE LIPPERT PARK RINK SHACK PARKS & OPEN SPACES 2053790 GLENDALE PARK RINK SHACK PARKS & OPEN SPACES 2008927 GRAND RIVER ARENA ARENAS 2009494 GRAND RIVER RECREATION COMPLEX AQUATICS 2087188 GRAND RIVER TRANSIT FOUNTAIN BUNKER PARKS & OPEN SPACES 2132018 GUELPH STREET PARK RINK SHACK PARKS & OPEN SPACES 2085694 GUELPH STREET STORAGE OPERATIONS 2026087 GYMNASTICS/JUDO CENTRE SPORT 2022815 HARRY CLASS POOL AQUATICS 2023427 HARRY CLASS POOL PUMPHOUSE AQUATICS 2149311 HIBNER PARK FOUNTAIN VAULT PARKS & OPEN SPACES 2024389 HIGHLAND COURTS PARK LAWN BOWLING OFFICE SPORT 2024295 HIGHLAND COURTS PARK TENNIS COURT CLUB HOUSE SPORT 2050353 HOMER WATSON HOUSE AND GALLERY ARTS & CULTURE HOMER WATSON HOUSE AND GALLERY 2050345 ARTS & CULTURE CLASSROOM/STORAGE BUILDING HOMER WATSON HOUSE AND GALLERY COACH HOUSE 2050213 ARTS & CULTURE (ARTI ST STU D I O) 2085576 HOMER WATSON HOUSE AND GALLERY COTTAGE 1 ARTS & CULTURE 2085575 HOMER WATSON HOUSE AND GALLERY COTTAGE 2 ARTS & CULTURE 2085574 HOMER WATSON HOUSE AND GALLERY COTTAGE 3 ARTS & CULTURE 2154451 HURON COMMUNITY CENTRE COMMUNITY CENTRES 2082128 HURON NATURAL AREA COMFORT STATION PARKS & OPEN SPACES 2024568 IDLEWOOD POOL AQUATICS 2053795 KAUFMAN PARK FIELD HOUSE 1 PARKS & OPEN SPACES 2033076 KINGSDALE COMMUNITY CENTRE COMMUNITY CENTRES 2013795 KITCHENER CITY HALL ADMINISTRATION 2059159 KITCHENER MARKET COMMERCIAL KITCHENER MOUNT HOPE CEMETERY OFFICE AND 2011198 CEMETERIES GARAGE 2153814 KIWANIS PARK ADMISSIONS BOOTH PARKS & OPEN SPACES 2000002 KIWANIS PARK CHANGE ROOMS/FIRST AID AQUATICS 2000004 KIWANIS PARK CONCESSION BUILDING AQUATICS 2000008 KIWANIS PARK GATE HOUSE PARKS & OPEN SPACES Page 354 of'428 2000003 KIWANIS PARK PICNIC SHELTER 1 PARKS & OPEN SPACES 2136634 KIWANIS PARK PICNIC SHELTER 2 PARKS & OPEN SPACES 2000000 KIWANIS PARK PICNIC SHELTER TIM HORTONS PARKS & OPEN SPACES 2000001 KIWANIS PARK PUMP HOUSE AQUATICS 2132019 KIWANIS PARK RINK SHACK PARKS & OPEN SPACES 2000005 KIWANIS PARK STORAGE BUILDING PARKS & OPEN SPACES 2148631 KIWANIS PARK WATER DISTRIBUTION BUNKER AQUATICS 2149051 KIWANIS WINTERIZATION BUNKER AQUATICS 2085197 KMAC ARENA STORAGE SHED ARENAS 2138155 KMAC ARENA STORAGE SHED 2 ARENAS 2140737 KMAC HYDRO BUNKER ARENAS 2171310 KMAC JACK COUCH SHED PARKS & OPEN SPACES 2017627 KMAC JACK COUCH SUPPORT BUILDING PARKS & OPEN SPACES 2171309 KMAC WATER DISTRIBUTION BUNKER PARKS & OPEN SPACES 2140698 KNOLLWOOD PARK SHADE PAVILLION PARKS & OPEN SPACES 2138709 KOF - DEWATERING CANOPY OPERATIONS 2133892 KOF - DEWATERING SHED OPERATIONS 2087704 KOF - GREENHOUSE OPERATIONS 2146733 KOF - GREYWATER CONTROL SHED OPERATIONS 2043761 KOF - KITCHENER OPERATIONS FACILITY OPERATIONS 2102586 KOF - SALT HOPPER OPERATIONS 2102585 KOF - SALT STORAGE OPERATIONS 2138707 KOF - STORAGE CANOPY OPERATIONS 2053796 LAKESIDE PARK RINK SHACK PARKS & OPEN SPACES 2044564 LIONS ARENA ARENAS 2141391 LUDOLPH PARK RINK SHACK PARKS & OPEN SPACES 2132024 MAX BECKER COMMONS RINK SHACK PARKS & OPEN SPACES 2128575 MCLENNAN PARK COMFORT STATION PARKS & OPEN SPACES 2167401 MCLENNAN PARK GAZEBO PARKS & OPEN SPACES 2150811 MCLENNAN PARK SHADE PAVILLION PARKS & OPEN SPACES 2033385 MEINZINGER PARK STORAGE PARKS & OPEN SPACES 2025281 MILL COURTLAND COMMUNITY CENTRE COMMUNITY CENTRES 2087574 MILL COURTLAND COMMUNITY CENTRE PORTABLE COMMUNITY CENTRES 2053797 MILL COURTLAND COMMUNITY CENTRE RINK SHACK 1 PARKS & OPEN SPACES 2132191 MILL COURTLAND COMMUNITY CENTRE SHED 1 COMMUNITY CENTRES 2140391 MILL COURTLAND COMMUNITY CENTRE SHED 2 COMMUNITY CENTRES 2140851 MILL COURTLAND COMMUNITY CENTRE SHED 3 COMMUNITY CENTRES 2143921 MILL COURTLAND COMMUNITY CENTRE SHED 4 COMMUNITY CENTRES 2132020 MORRISON PARK RINK SHACK PARKS & OPEN SPACES 2150671 OKTOBERFEST PLATZ FOUNTAIN BUNKER PARKS & OPEN SPACES 2132431 PARKING LOT 19 SHED 1 PARKING GARAGES 2132432 PARKING LOT 19 SHED 2 PARKING GARAGES Page 355 of'428 2085698 PETER HALLMAN BALL YARD ELECTRICAL BUILDING PARKS & OPEN SPACES 2085697 PETER HALLMAN BALL YARD MAINTENANCE BUILDING PARKS & OPEN SPACES 2085699 PETER HALLMAN BALL YARD TOURNAMENT BUILDING PARKS & OPEN SPACES 2156674 PIONEER GROVE PARKETTE SHED PARKS & OPEN SPACES 2053791 PIONEER PARK RINK SHACK PARKS & OPEN SPACES 2139211 QUEENSMOUNT PARK GARAGE PARKS & OPEN SPACES 2029799 QUEENSMOUNT SPORTS BUILDING SPORT KITCHENER INDOOR RECREATION COMPLEX (KIRC) - 2160095 PARKS & OPEN SPACES BUNKER KITCHENER INDOOR RECREATION COMPLEX (KIRC) - 2052291 PARKS & OPEN SPACES HERITAGE WASHROOM BUILDING KITCHENER INDOOR RECREATION COMPLEX (KIRC) - 2153654 PARKS & OPEN SPACES MAINTENANCE BUILDING KITCHENER INDOOR RECREATION COMPLEX (KIRC) - 2159538 PARKS & OPEN SPACES UTILITY BUILDING 1 KITCHENER INDOOR RECREATION COMPLEX (KIRC) - 2159537 PARKS & OPEN SPACES UTILITY BUILDING 2 2024390 ROCKWAY CENTRE COMMUNITY CENTRES 2021955 ROCKWAY CENTRE POTTERY SHED COMMUNITY CENTRES ROCKWAY CENTRE STORAGE BUILDING (HYDRO 2024530 COMMUNITY CENTRES SUBSTATION) 2026294 ROCKWAY GOLF CART STORAGE GOLF 2086003 ROCKWAY GOLF CHEMICAL STORAGE BUILDING GOLF 2025685 ROCKWAY GOLF CLUB HOUSE GOLF 2053768 ROCKWAY GOLF COMFORT STATION GOLF 2053773 ROCKWAY GOLF CONCESSION BUILDING GOLF 2030050 ROCKWAY GOLF EQUIPMENT STORAGE SHED GOLF 2086004 ROCKWAY GOLF GASOLINE STORAGE BUILDING GOLF 2030152 ROCKWAY GOLF MAINTENANCE/STORAGE BUILDING GOLF 2053800 ROCKWAY GOLF PUMP HOUSE GOLF 2085567 ROCKWAY GOLF RAIN SHELTER 1 GOLF 2053801 ROCKWAY GOLF RAIN SHELTER 2 GOLF 2085566 ROCKWAY GOLF RAIN SHELTER 3 GOLF 2085565 ROCKWAY GOLF STARTER SHED GOLF 2053802 ROSENBERG PARK FIELD HOUSE PARKS & OPEN SPACES ROSENBERG PARK HERITAGE GREENS COMFORT 2009229 SPORT STATION 2084844 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 1 SPORT 2084853 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 10 SPORT 2084854 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 11 SPORT 2084855 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 12 SPORT 2140699 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 13 SPORT 2140700 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 14 SPORT 2140701 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 15 SPORT 2140702 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 16 SPORT Page 356 of'428 2084845 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 2 SPORT 2084846 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 3 SPORT 2084849 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 4 SPORT 2084848 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 5 SPORT 2084847 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 6 SPORT 2084850 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 7 SPORT 2084851 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 8 SPORT 2084852 ROSENBERG PARK HERITAGE GREENS RAIN SHELTER 9 SPORT 2084843 ROSENBERG PARK HERITAGE GREENS STORAGE SHED 1 SPORT 2086254 ROSENBERG PARK HERITAGE GREENS STORAGE SHED 2 SPORT 2086253 ROSENBERG PARK HERITAGE GREENS STORAGE SHED 3 SPORT 2132021 SALVATION ARMY CHURCH RINK SHACK PARKS & OPEN SPACES 2059181 SPORTSWORLD ARENA ARENAS 2053776 ST ALOYSIUS PUBLIC SCHOOL RINK SHACK PARKS & OPEN SPACES ST PETER'S LUTHERAN CEMETERY MAINTENANCE 2085497 CEMETERIES BUILDING 2016307 STANLEY PARK COMMUNITY CENTRE COMMUNITY CENTRES 2134594 STANLEY PARK COMMUNITY CENTRE RINK SHACK PARKS & OPEN SPACES 2053777 STANLEY PARK PUBLIC SCHOOL RINK SHACK PARKS & OPEN SPACES 2016930 THE AUD ARENAS 2017655 THE BOATHOUSE COMMERCIAL 2013884 THE REGISTRY THEATRE ARTS & CULTURE 2015184 THEMUSEUM ARTS & CULTURE 2053772 TIMBERLANE PARK RINK SHACK PARKS & OPEN SPACES 2158535 UNIROYAL -GOODRICH PARK GARDEN SHED PARKS & OPEN SPACES 2158434 UNIROYAL -GOODRICH PARK PICNIC SHELTER PARKS & OPEN SPACES 2050419 UPPER CANADA PARK SPORTSFIELD CLUBHOUSE PARKS & OPEN SPACES 2050382 UPPER CANADA PARK SPORTSFIELD PICNIC SHELTER PARKS & OPEN SPACES 2050351 UPPER CANADA PARK SPORTSFIELD STORAGE SHED 1 PARKS & OPEN SPACES 2156134 UPPER CANADA PARK SPORTSFIELD STORAGE SHED 2 PARKS & OPEN SPACES 2085338 UPPER CANADA PARK SPORTSFIELD STORAGE SHED 3 PARKS & OPEN SPACES 2053771 VANIER PARK RINK SHACK PARKS & OPEN SPACES 2020403 VICTORIA HILLS COMMUNITY CENTRE COMMUNITY CENTRES VICTORIA HILLS COMMUNITY CENTRE GARDEN STORAGE 2058940 COMMUNITY CENTRES SHED 1 VICTORIA HILLS COMMUNITY CENTRE GARDEN STORAGE 2058941 COMMUNITY CENTRES SHED 2 2132022 VICTORIA HILLS COMMUNITY CENTRE RINK SHACK PARKS & OPEN SPACES 2017888 VICTORIA PARK BANDSTAND PARKS & OPEN SPACES 2131631 VICTORIA PARK COMFORT STATION JUBILEE PARKS & OPEN SPACES 2019376 VICTORIA PARK COMFORT STATION SEASONAL PARKS & OPEN SPACES 2016906 VICTORIA PARK FRONT GARAGE PARKS & OPEN SPACES 2020042 VICTORIA PARK MACHINE SHOP PARKS & OPEN SPACES Page 357 of %28 2018874 VICTORIA PARK PAVILION COMMERCIAL 2011535 VICTORIA PARK PERGOLA 1 BY BOATHOUSE PARKS & OPEN SPACES 2085157 VICTORIA PARK PERGOLA 2 JUBILEE PARKS & OPEN SPACES 2019818 VICTORIA PARK PICNIC SHELTER PARKS & OPEN SPACES 2132023 VICTORIA PARK RINK SHACK PARKS & OPEN SPACES 2166761 VICTORIA PARK SHED PARKS & OPEN SPACES 2019870 VICTORIA PARK SUMMER KITCHEN PARKS & OPEN SPACES 2166762 VICTORIA PARK UTILITY SHED PARK ST PARKS & OPEN SPACES 2008244 WEBER PARK RINK SHACK PARKS & OPEN SPACES 2053778 WEST AVENUE STORAGE FACILITY PARKS & OPEN SPACES WILLIAMSBURG CEMETERY DEDICATION CENTRE AND 2051543 CEMETERIES CREMATORIUM 2051584 WILLIAMSBURG CEMETERY OFFICE AND MAINTENANCE CEMETERIES 2085760 WILLIAMSBURG COMMUNITY CENTRE COMMUNITY CENTRES 2087659 WILSON PARK CONCESSION BUILDING PARKS & OPEN SPACES 2121720 WILSON PARK STORAGE SHED PARKS & OPEN SPACES 2033597 WILSON POOL AQUATICS 2026261 WOODLAND CEMETERY CATHOLIC MAUSOLEUM CEMETERIES 2053770 WOODLAND CEMETERY OFFICE CEMETERIES 2026922 WOODLAND CEMETERY PROTESTANT MAUSOLEUM CEMETERIES 2172282 WOODLAND STORAGE SHED CEMETERIES 2023702 WOODSIDE PARK FIELD HOUSE PARKS & OPEN SPACES Page 358 of'428 Asset Management Plan Infrastructure Services - Fleet Division Page 359 of 428 Asset Management Plan Infrastructure Services - Fleet Division Contents FleetIntroduction................................................................................................................................................4 Fleet's Alignment with Strategic and Corporate Goals................................................................................... 5 Fleet Asset Management Goals and Objectives.............................................................................................. 6 Core and Advanced Asset Management......................................................................................................... 7 Fleet Asset Categories and Type.....................................................................................................................7 AssetTypes by Category.................................................................................................................................. 8 AssetValue by Category................................................................................................................................11 Fleet Asset Distribution and Replacement Values............................................................................................12 OverallCondition of Assets...........................................................................................................................13 Overall Condition by Asset Category.............................................................................................................14 Levels of Service and Compliance.....................................................................................................................15 ServiceAgreement........................................................................................................................................15 LegislativeRequirements..............................................................................................................................16 Monitoring and Measurement Agents of Fleet Assets.....................................................................................18 AnnualEquipment Review............................................................................................................................18 FleetAssets Lifecycle.....................................................................................................................................20 Vehicle and Equipment Rating Management................................................................................................ 21 Condition Assessment Data...........................................................................................................................22 AssetAttributes.............................................................................................................................................23 Overall Assessment Value............................................................................................................................. 23 Related Risks and Mitigation Management of Fleet Assets.............................................................................. 25 FleetUsers Working Group........................................................................................................................... 25 Global Positioning System Tracking...............................................................................................................26 RepairPriority Matrix....................................................................................................................................27 Repair and Maintenance Costing Analysis........................................................................................................ 28 Fleet Management System (Flint).................................................................................................................28 Work Orders — Maintenance, Service and Repairs........................................................................................ 28 AssetsOut of Scope.......................................................................................................................................28 FinancialSummary............................................................................................................................................30 Fleet Ten Year Operating Budget..................................................................................................................30 Ten Year Capital Budget Forecast..................................................................................................................31 2 Page 360 of 428 Asset Management Plan Infrastructure Services - Fleet Division Asset Replacement Forecast......................................................................................................................... 32 Replacement Budget versus Replacement Forecast.....................................................................................33 3 Page 361 of 428 Asset Management Plan Infrastructure Services - Fleet Division Fleet Introduction Asset management planning is a comprehensive process to ensure delivery of services from Infrastructure is provided in a financially sustainable manner. This plan details information about the City of Kitchener, Fleet Division assets including actions required to provide an agreed level of service in the most cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required to provide the services over a 20 -year planning period. The Fleet Division manages approximately 1,900 vehicles and equipment for the City of Kitchener. The primary function of the Division is to ensure City vehicles and equipment are properly maintained, repaired, fueled, as agreed to in the service agreement. Fleet Division's primary objective is to ensure fleet users are capable of delivering their services to the public in a safe and efficient manner. In addition, the Fleet Division is also responsible for managing all fleet controls, policies and procedures across the City; including safe operation of the vehicle/equipment, meeting legislative requirements, fueling procedures, procurement practices to mitigate climate change, etc. Ultimately, Fleet Division must ensure that all fleet users are provided with a prescribed level of quality and service defined within the service agreement, and vehicles/equipment operate and function as expected and as intended. Operational services provided by Fleet Division related to asset management for City vehicles and equipment includes: • Procurement • Storage and identification • Monitoring and evaluation • Repair and maintenance • Fuel management • Commercial vehicle operator registration compliance monitoring and evaluation • Fleet user policy and procedural compliance monitoring and evaluation • Life cycle evaluations/risk management • Fleet user training and development Additional administrative and operational areas within Fleet Division, relevant to providing and maintaining the service agreement to fleet users: Fleet Planning: Fleet Division tracks and monitors vehicle and equipment usage, prepares life cycle costing and targets, reviews and evaluates vehicles and equipment annually and manages the Fleet Capital Replacement program and net new additional requests. 4 Page 362 of 428 Asset Management Plan Infrastructure Services - Fleet Division Fleet Mechanical: Fleet Division performs all required repairs, preventive maintenance and the scheduling of safety inspections to comply with legislative safety requirements with the goal of reducing vehicle and equipment breakdowns. Additionally, Fleet Division ensures vehicles and equipment are operating efficiently to reduce unnecessary GHG emissions and to optimize the financial return on the sale of surplus when an asset is decommissioned. Fuel Distribution and Management: Fleet Division monitors and maintains fuel distribution sites on a daily basis. Fleet also maintains records of fuel consumption and performs Technical Standards and Safety Act inspections as required. Fleet Safety and Compliance: The City of Kitchener has adopted an internal permitting system for all city vehicles and self-propelled equipment to ensure operators have received adequate training and skill development. Fleet Division provides an assortment of online training, in class training, practical training and assessments related to the different classes of vehicles, and types of equipment. Fleet Division also conducts safety and compliance audits in the field to ensure all operators comply with City, safety, and regulatory requirements and legislation. Commercial Vehicle Operators Registration (CVOR) Compliance: Commercial vehicle operator registration is a legal function of fleet management at the City of Kitchener, and governs all vehicles that fall within the scope of provincial regulations under the Highway Traffic Act. The regulatory affairs and compliance of the CVOR is closely monitored and addressed by the Safety and Compliance Department within Fleet Division. Fleet's Alignment with Strategic and Corporate Goals This asset management plan is prepared under the direction of the City of Kitchener's vision, mission, goals and objectives. Our Vision is: Building a city for everyone where, together, we take care of the world around us — and each other." This vision guides our 2023-2026 strategic plan, strategic goals and actions. Our mission is: • Building a connected city together • Cultivating a green city together • Creating an economically -thriving city together • Fostering a caring city together • Stewarding a better city together Page 363 of 428 Asset Management Plan Infrastructure Services - Fleet Division -n4 Relevant Relevant actions and objectives, and how these are addressed within Fleet Division's asset management plan are: ls�l Objective How Goal and Objectives are addressed in AM Plan Cultivating a green Continued implementation of the Ensuring that we continue to consider city together action items within the CorCap 2.0 to environmental impacts fleet vehicles and work achieve 50% GHG reduction by 2030 towards the goal reducing GHGs. and Net Zero by 2050 Cultivating a green Supporting the clean energy Continue to support transitioning fleet vehicles and city together transition. equipment to electric alternatives as well as exploring the implementation of alternative fuels where electric is not an option. Stewarding a better Procurement innovation Consider different emerging procurement strategies city together and innovations within the field to create efficiencies and ensure we are accountable public servants. Fleet Asset Management Goals and Objectives Fleet's primary objective is to ensure fleet users are capable of delivering their services to the public in a safe and efficient manner. In addition, the Fleet Division is also responsible for managing all fleet controls, policies and procedures across the City; including safe operation of the vehicle/equipment, meeting legislative requirements, fueling procedures, and procurement practices that mitigate climate change. Our goal in managing Fleet Division assets is to meet the defined level of service (as amended from time to time) in the most cost effective manner for present and future customers. The key elements of fleet asset management are: • Providing a defined level of service and monitoring performance, • Managing the impact of growth through demand management and investment, • Taking a lifecycle approach to developing cost-effective management strategies for the long-term that meet the defined level of service, • Identifying, assessing and appropriately controlling risks, and • Linking to a long-term financial plan which identifies required, affordable expenditure and how it will be allocated. Other references to the benefits, fundamentals principles and objectives of asset management are: International Infrastructure Management Manual 2015 1 ISO 550002 1 Based on IPWEA 2015 IIMM, Sec 2.1.3, p 21 13 2 ISO 55000 Overview, principles and terminology 6 Page 364 of 428 Asset Management Plan Infrastructure Services - Fleet Division Core and Advanced Asset Management LL_p-n4 This asset management plan has been created under the direction of Ontario Regulation 588/17 — Asset Management Planning for Municipal Infrastructure, beginning in clause 5 of the regulation, under the title Asset Management Plans. This asset management plan is prepared as anon -core' asset management plan over a 20 -year planning period in accordance with the International Infrastructure Management Manual'. Core asset management is a 'top down' approach where analysis is applied at the system or network level. An 'advanced' asset management approach uses a 'bottom up' approach for gathering detailed asset information for individual assets. Note: For the purposes of this asset management plan, there is a value threshold of $5,000.00 that eliminates the need for a Service Agreement and as a result, the need to monitor and provide preventive maintenance and repair. For small equipment under the threshold, Fleet Division repairs and services the asset as deemed necessary. Such assets are replaced once the repair costs exceed their current value. Fleet Asset Categories and Type Fleet Division assets are broken out into 6 categories as defined below: 1. Arena Equipment 2. Dump/Fire Truck 3. Lawn/Turf Equipment 4. Licensed Equipment S. Misc./Small Equipment 6. Off Road Equipment Each category is then broken out into asset type. The current asset category average age of asset has been included as calculated within out Flint Fleet Software program. 3 IPWEA, 2015, IIMM. 7 Page 365 of 428 Asset Management Plan Infrastructure Services - Fleet Division Asset Types by Category Ariel Truck Catch Basin Cleaner Tandem Dump Truck Single Dump Truck Single Chipper Body Dump Truck Single Water Dump Truck Tandem Dump Truck Tandem w/Crane Dump Truck Tri Axle Dump/Fire Truck Dump Truck Tri Axle Hook Lift 8 years Fire Aerial Ladder Fire Haz-Mat Unit Fire Pumper Fire Rescue Garbage Packer Jet Rodder Vactor Tridem Pavement Marker Rescue Truck Asset Category: Asset Type: Average Age of Asset Category Aerial Truck Trailer 10 Ton Deck Over Float Burial Cart Trailer 30 Ton Deck Over Float Car Trailer Box/Landscape Car Electric Trailer Cargo Cargo Van Trailer Drop Deck Cargo Van High Roof Electric Trailer Dump Cargo Van High Roof XL Hybrid Trailer Dump 5 Ton Crew Cab Trailer Enclosed Licensed Crew Cab 4x4 Trailer Fire Education Crew Cab Pickup Trailer Flatbed Equipment Crew Cab Dump Trailer Gas Pipe Hauler 22 ft. Crew Cab Dump 4x4 Trailer Gas Pipe Reel Crew Cab Pickup 4x4 Trailer Kut Kwik Crew Cab Utility Trailer Landscape Cube Truck Trailer Mount Tank Sprayer Fire Command Unit Trailer Pipe Generator Trailer Pressure Washer Maintenance Trailer Trailer Skateboard Motorcycle Electric Trailer Water Main 9 years 8 Page 366 of 428 Asset Management Plan Infrastructure Services - Fleet Division 41 hrnalry1 R ksset Category: Asset Aerator Aerator Tractor Mount 60" Bedknife Grinder Blower Debris Blower Ride On Blower Tow Behind Core Harvester Flail Boom Golf Cart Golf Cart 4 -Seater Groomer Infield Lawn/Turf Hydro Seeder Equipment Lawn Mower Fairway Line Painer Ride On Loader Dingo Mower 16' Winged Mower Gang Rotary Mower Fairway Mower Greens Mower Greens Walk Behind Mower Rotary Mower Rotary Out -front Mower Seven Plex Mower Sidewinder te: Avezage Ag sset Categio, Mower Triplex Mower Turn Electric Mower Zero Turn Mower Zero Turn Bagger Mower Zero Turns with Tracks Municipal Tractor Large Over Seeder Rake Sand Reel Grinder Seeder Split Sprayer Turf Spreader Fertilizer 9 years Sweepster Brush Tank Water Top Dresser Tractor Flail Mower Tractor Mower Turf Tractor Turf Tractor Loader Turf Tractor Mower Utility Vehicle Utility Vehicle Electric Page 367 of 428 Pickup Trailer Water Pump Pickup 4x4 Van Pickup Compact Van Cargo Pickup Compact Crew Cab Van Cargo Compact Pickup Compact Ext Cab Van Cargo Ext Pickup Compact Ext Cab 4x4 Van Cargo High Roof Pickup Crew Cab 4x4 Van Cargo Medium Roof Pickup Dump Van Cube Pickup Dump 4x4 Van Mini Passenger Pickup Dump 4x4 (SRW) Van Mini Pickup Dump Plow 4x4 Van Mini Cargo Pickup Ext Cab Van Passenger Pickup Ext Cab 4x4 Salter Sander Pickup Flatbed Welder Screener Pickup Plow 4x4 SUV Pickup Utility Body SUV Hybrid Pump Trash 6' Trailer ksset Category: Asset Aerator Aerator Tractor Mount 60" Bedknife Grinder Blower Debris Blower Ride On Blower Tow Behind Core Harvester Flail Boom Golf Cart Golf Cart 4 -Seater Groomer Infield Lawn/Turf Hydro Seeder Equipment Lawn Mower Fairway Line Painer Ride On Loader Dingo Mower 16' Winged Mower Gang Rotary Mower Fairway Mower Greens Mower Greens Walk Behind Mower Rotary Mower Rotary Out -front Mower Seven Plex Mower Sidewinder te: Avezage Ag sset Categio, Mower Triplex Mower Turn Electric Mower Zero Turn Mower Zero Turn Bagger Mower Zero Turns with Tracks Municipal Tractor Large Over Seeder Rake Sand Reel Grinder Seeder Split Sprayer Turf Spreader Fertilizer 9 years Sweepster Brush Tank Water Top Dresser Tractor Flail Mower Tractor Mower Turf Tractor Turf Tractor Loader Turf Tractor Mower Utility Vehicle Utility Vehicle Electric Page 367 of 428 Asset Management Plan Infrastructure Services - Fleet Division hrna�r�r�Z Asset Category: Boom Lift Electric Compactor Pressure Washer Asphalt Paver Pump Trash 4" Compressor Portable Pump Trash Backhoe Roll Off Bin Concrete Mixer Rake Landscape Diamond Wheel Guillotine Rock Drill Compactor Attachment Salter Epoke Floor Scrubber Salter Slide In Crack Router Sidewalk Lifter Groomer Scissor Lift Groomer Greens Sewer Cleaner Off Road Fork Lift Sprayer Asphalt Groomer Infield Snow Blower Walk Behind 9 years Groomer Trail Snow Pusher Hydraulic Breaker Sod Cutter Line Painter Pusher Sweeper Small Hydraulic Hammer Spreader Grader Loader Sweeper Sidewalk Hydraulic Packer Vactor Small Hydraulic Power Pack Valve Turner Front Mount Municipal Tractor Turf Tractor Leaf Blower Water Pump Tank and Reel Pipe Thawer Utility Vehicle Leaf Vacuum Winch Hydraulic Line Driver Asset Category: Asset Type: Average Age of Asset Category Asphalt Paver Pump Trash 4" Backhoe Roll Off Bin Brush Chipper Roller Brush Chipper Attachment Roller Vibratory Compactor Attachment Salter Epoke Crack Router Sidewalk Lifter Excavator Skid Steer Excavator Rubber Tire Snow Blower Large Off Road Fork Lift Sprayer Asphalt 9 years Equipment Generator Steam Stump Cutter Grader Stump Cutter Track Drive Hotbox Sweeper Line Painter Pusher Sweeper Small Loader Sweeper Sidewalk Loader Compactor Tar Kettle Loader Dingo Tractor Loader Municipal Tractor Turf Tractor Pipe Thawer Utility Vehicle 10 Page 368 of 428 Asset Management Plan Infrastructure Services - Fleet Division Asset Value by Category Asset Category Dump/Fire Truck Asset Value $29,799,815.49 Lawn/Turf Equipment $7,466,128.656 Licensed Equipment $19,490,353.71 Misc/Small Equipment $1,286,586.508 Off Road Equipment $18,729,999.23 Arena Equipment $1,364,465.98 Total $78,137,349.58 31?000000 JS00a000 WOW= 5000000 0 E)UMP/Are Truck Value by Asset Type I• I 11 Page 369 of 428 Asset Management Plan Infrastructure Services - Fleet Division Fleet Asset Distribution and Replacement Values Fleet Division assets covered by this asset management plan are used to provide a range of services including road maintenance, parks maintenance, facility maintenance, gas and water services, as well as many other municipal services, as shown below (includes assets valued above 5K): Asset Distribution lona Infrastructure Services Roads and Traffic 220 25.5M Infrastructure Services Parks and Cemeteries 902 18M Infrastructure Services Facility Maintenance 49 2M Infrastructure Services Gas and Water Utility 174 6.8M Infrastructure Services Storm and Sanitary Utility 74 SAM Infrastructure Services Fleet 30 600K Community Services Fire 104 15M Community Services Golf 94 2.5M Community Services Arenas 95 2M Development Services Building 17 600K Community Services By law Enforcement 14 600K Development Services Parking 11 300K Development Services Engineering 4 150K Community Services Special Events 3 50K Financial Services Stores 3 60K Total 1794 Asset Distribution lona 900 aoo Ino �00 Sao 400 300 Zan IOD 1 1 1 '. a r � — ■ � � 010 10, QP FP' ■ Total 12 Page 370 of 428 Asset Management Plan Infrastructure Services - Fleet Division -n4 Overall Overall Condition of Assets Due to the number of assets, condition is not currently monitored formally for all fleet assets. Therefore, the age of the asset used to provide a simplified way of illustrating condition. However, all licensed vehicles and equipment require annual safety inspections and preventive maintenance inspections. Therefore, assets are inspected regularly; they are not provided condition assessment at this time. During a safety inspection, if a vehicle is deemed unsafe, it will be removed from service. Typically, this occurs when an asset is kept well beyond its expected life or has been severely damaged due to an accident. of Expected Life Used ConditionPercentage d on A• 0%-20% Very Good 21%-65% Good 66%-99% Fair 100% Met Expected Life - Fair Once an asset has met the expected life, this triggers a comprehensive condition assessment and review. The asset is considered Met Expected Life — Fair until it is replaced and removed from service or has been deemed poor. Due to the risks associated with driving an asset that have been deemed "poor" the city will not permit poor vehicles to be driven. Therefore, any vehicles that have been designated as poor will be immediately removed from service and sent to auction or will be repaired to elevate the status to either "fair" or "met expected life—fair". Count of Condition of Asset Met Expecte 45% Summary of Condition of Assets Very Good 12% Fair Good 25% • Fair • Good • Met Expected Life Very Good 13 Page 371 of 428 Asset Management Plan Infrastructure Services - Fleet Division Overall Condition by Asset Category �l KITC Ir~.NER Asset Category Fair ... Met Expected Life - Fair Very Good Totals Arena Equipment 1 2 11 2 16 Dump/Fire Truck 15 17 36 9 77 Lawn/Turf Equipment 29 47 98 22 196 Licensed Equipment 83 114 154 45 396 Misc/Small Equipment 7 10 61 10 88 Off Road Equipment 33 45 60 24 162 Totals 168 235 420 112 935 )m °L ISD 14M So 0 MENA 6QUPk(NT ULMP/Fw Tem LAElN/TLL)F EgUPME NT WINCED EQUIPMENT MISC SMALL EQiIPMENT Off R= EQUPMENT ! W. N G.md ■ MAI EAwled L* ■Gwd ■ Falr 14 Page 372 of 428 Asset Management Plan Infrastructure Services - Fleet Division Levels of Service and Compliance The preparation and definition of City equipment and vehicle use, function and purpose, is generated as a collaborative effort between City users and Fleet management. Asset purpose and functionality within the City is identified via historical knowledge of the asset, the manufacturer's recommendations, and user input during the creation of the Service Agreement. Additional and betterment purposes can be requested during the completion of the Equipment Replacement Request form. For equipment assets, there is a value threshold of $5,000.00 that eliminates the need for a Service Agreement and as a result, the need to monitor and provide preventive maintenance and repair. For small equipment under the threshold, Fleet Division repairs and services the asset as deemed necessary. Such assets are replaced once the repair costs exceed their current value. Service Agreement The Service Agreement is provided by the Fleet Division of the Infrastructure Services Department, with the purpose of prescribing a customized level of service at a competitive cost that enables the user department to fulfill their customer needs in an efficient, effective, and timely manner. Assumptions and expectations are defined throughout the Service Agreement and cover the following areas/elements to be provided by Fleet to the user, on an annual basis: Planning: 1. Vehicle and equipment procurement 2. New vehicle and equipment outfitting 3. Technical specifications, selector list 4. Vehicle titling, licensing, and insurance 5. Manage equipment reserve system - depreciation, life cycles 6. Control vehicle and equipment operating costs 7. Vehicle and equipment re -marketing 8. Fleet administration and management reports 9. Outsourcing of vehicles and equipment 10. Continuous review and development of improved methods, policies and procedures 11. Bulk fuel supplies 12. Spare equipment through pool system 13. Assist with vehicle costing and utilization analysis Mechanical: 1. Vehicle and equipment repair and maintenance 2. Daily equipment maintenance 3. Fuel/Wash/Inspect 4. Collision/damage estimates and repair 5. Preventative maintenance program and schedules 6. Legislated maintenance and inspection programs 7. Warranty administration 8. Clean vehicles 15 Page 373 of 428 Asset Management Plan Infrastructure Services - Fleet Division Safety and Compliance: 1. Collision Review 2. Operator training programs 3. Commercial vehicle operator registration monitoring 4. Permit System 5. Driver abstract review 6. Hours of Service Legislative Requirements As part of their commitment to quality service to the City of Kitchener users, Fleet is governed by a myriad of laws and regulations related to the environment, health and safety and the transportation ministry of Ontario. To ensure knowledge, enforce compliance and regulate policy and procedures, Fleet management annually performs internal and external audits of the laws and regulations. In addition, the Safety and Compliance department of Fleet also performs random audits and inspections of City users in the field. The following laws and regulations govern the Fleet management system scope of purpose: 0 TRANSPORTATION OF DANGEROUS GOODS ACT Transportation of Dangerous Goods Regulations ENVIRONMENTAL BILL OF RIGHTS ACT Hazardous Products Act R.S.C., 1985, c. H-3 Controlled Products Regulations SOR/88-66 Occupational Health and Safety Act Ontario Provincial ENVIRONMENTAL PROTECTION ACT • Part iii Motor Vehicles including additional environmental controls added to vehicles after purchase • Part v.1 Vehicle Permits and Number Plates • Part x Spills Motor Vehicles - O. Reg. 361 General —Air Pollution — Local Air Quality - O Reg. 419 16 Page 374 of 428 Asset Management Plan Infrastructure Services - Fleet Division MINISTRY OF TRANSPORTATION - Highway Traffic Act al Vehicle Inspections O. Reg. 199 )afety Inspections — O. Reg. 611 and Harmonization of Commercial Vehicle Inspection Requirements - O. Reg. 601, 611 and 199 17 Page 375 of 428 Asset Management Plan Infrastructure Services - Fleet Division Monitoring and Measurement Agents of Fleet Assets Fleet Administration ensures all vehicles and equipment are inventoried within Flint (software program maintained by Fleet), capable of providing all details associated with each piece of equipment and each vehicle. Users with access to Flint are able to quickly extract vehicle and equipment data and information including procurement data, lifecycle status, asset attributes, asset category, and/or type. Annual Equipment Review The Annual Equipment Review is a comprehensive review, analysis and determinant for all Fleet assets that have been met the expected life. The review reports to City executive vehicle and equipment inventory, values and replacement needs juxtaposed against the asset's purpose and capability to maintain that purpose for the user. The Annual Equipment Review is governed as follows: M01001 Activity 1. Generate list of equipment/vehicles met expected life (including deferred assets January from previous year) 2. Schedule ER Meeting for Sept/Oct. February/March 1. Fleet management completes a comprehensive review of each asset that has met expected life — including utilization, function, repair costs versus replacement costs. 1. Create Equipment Review (ER) sheets for all units evaluated 2. Fleet enters points into ER sheets based on evaluations and makes recommendation April on replacement or deferral 3. Send list of equipment/vehicles qualifying for replacement to all operating areas 4. Evaluations sent to Directors for approval May/June 1. Approved ER sheets returned to Fleet 2. Fleet updates database with recommendations, labour and parts costs July 1. Print and check ER sheets from database 2. Any additional equipment forms completed August 1. Compile book and send for printing 2. Deliver books and meeting timelines 1. Meeting September/October 2. Approved replacements and additional reports 3. Flint updated with approved replacements The purpose of the annual process is to provide a financial risk assessment and impact analysis of equipment and vehicles that have come to their targeted lifecycle expectancy and require replacement. Membership of Review Committee: • Chief Financial Officer (Chair) • Chief Administrative Officer (Optional) • Deputy CAO & General Manager of Community Services or designate • General Manager of Corporate Services or designate • General Manager of Development Services or designate • General Manager of Infrastructure Services or designate • Director of Fleet • Director of Asset Management or designate 18 Page 376 of 428 Asset Management Plan Infrastructure Services - Fleet Division Advisory: • Director of Supply Services or designate • Manager of Fleet Planning • Manager of Fleet Mechanical • Supervisors of Fleet • Manager/Supervisor of operating area Including any staff required to support vehicl%quipment purchases. The assets recommended for replacement at the Equipment Review are deemed Met Expected Life — Fair and generally require minor to moderate mechanical and/or body repairs. Since most assets have met their expected life it may not be cost effective to continue to repair and/or restore the asset. Occasionally, assets that have not met the expected life will be recommended for replacement. Through the year, input received from the using department and fleet mechanical (maintenance) to provide Fleet management with additional information relevant to condition of the asset. Subsequently, an asset may be deemed "poor" and removed from service prior to the Equipment Review. As a method of analysis, Fleet management prepares body and mechanical estimates for all units that have met the recommended life cycle and also identified the equipment utilization from the Fleet FLINT record and appraisal system. Equipment Replacement Form The Equipment Replacement Request form provides communication of service definition for City equipment and vehicles which includes requests for betterment costs. The Equipment Replacement Request is the dialogue between the users and Fleet management in an effort to ensure the asset is right for fit, function and serviceability. The Equipment Replacement Request form also allows users to make additional and rental requests to meet service growth requirements and short term/emergency requirements. Users are required to provide details related to the function of the asset, such as the total number of hours of service required per day and any betterment or upgrades to be added to the asset. 19 Page 377 of 428 Asset Management Plan Infrastructure Services - Fleet Division Fleet Fleet Assets Lifecycle -n4 The lifecycle of the vehicle and/or equipment begins the process of determining the asset's risk; operational and financial. Lifecycle expectancies are pre -determined by the Manager, Fleet Planning, and calculated based on historical data and annual depreciation costs in association with projected repair and maintenance costs. In addition, the Fleet Rating points system provides an objective opportunity to prioritize the risks replacement requirements. Equipment Description Cars Estimated Life Cycle 8 Years Pickups 8 Years Vans 8 Years Crew Cabs 8 Years Small Dumps (10,000 to 18,000 Ib. GVW) 7 Years Single Axle Dump Trucks (30,000 to 39,000 Ib. GVW) 8 Years Tandem Dump Trucks (50,000 to 55,000 Ib. GVW) 9 Years Tridem 11 Years Flushers 16 Years Sweepers (large and small) 6 Years Rollers 13 Years Tractor Loaders 11 Years Tractor Loader Backhoes 10 years Heavy Loaders 16 Years Graders 16 Years Turf Tractors LCG 13 Years Tar Kettles 16 Years Self -Propelled Gang Mowers 11 Years Trailer -Mounted Compressors 160 CFM 11 Years Ice Machines 11Years Self -Propelled Rotary and Reel Mowers 8 Years Diesel Garden Tractor 13 Years DEPRECIATION PERIOD YRS 18 16 16 16 16 16 13 13 13 14 11 11 11 11 11 12 9 10 10 8 8 8 8 8 8 8 — 6 — 6 I 4 2 0 - Z. �e 4 �O� X00 X00 �� X00 0�� c�J \S�C� �O ��po� p� �pP ��P���Q P'R- $�F Q ��J �Pt4F �P , O\F`' 20 Page 378 of 428 Asset Management Plan Infrastructure Services - Fleet Division Vehicle and Equipment Rating Management All assets that have met the expected life are monitored and rated via the Fleet Point rating system as defined below: Factor Points Age Maximum 10 points for meeting the life cycle or less one point for every 10% beneath the current life cycle. Utilization One point for every 10,000 kms. or 1,000 hours for heavy equipment. One point for every 400 hours on equipment under 120 hp. Service Type Points are assigned based on the type of service that the vehicle provides i.e. 5 = easily replaced, 10 = heavy duty or specialized. Reliability Points are assigned based on the frequency that the vehicle is in the shop for repair i.e. 1 point for every 10 days (Flint Downtime Report). M&R Costs Points are assigned based on the maintenance and repair costs in relation to the purchase price. 1W Fuel Efficiency Points are assigned based on best -in -class fuel economy factor: Best - 0 points, Medium — 5 points, Worst — 10 points. Condition This category takes into consideration the ratio of the estimated repair cost to the depreciated cost. Point Ranges Under 40 points Very Good 41-45 Good 46-55 Fair 56 and above Met Expected Life In addition, data associated with the "Condition" is ascertained via trained mechanical staff within Fleet services. Condition data that supplements the above Rating system includes a visual examination with an estimate of the cost associated with bringing the condition to normal condition or "fair" or "good". Estimated asset condition values are provided during the Equipment Review to aid in the discussion and determination of replacement. 21 Page 379 of 428 Asset Management Plan Infrastructure Services - Fleet Division Condition Assessment Data Factor Points Body Condition The overall condition of the body is analyzed by a qualified service technician who provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment of the body condition, an estimated cost of repair/replacement to bring the body's condition Aw"M to normal/good. Interior Condition The overall condition of the interior of the vehicle is analyzed by a qualified service technician who provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment of the interior condition, an estimated cost of repair/replacement to bring the interior's condition to normal/good. Tire Condition The overall condition of the tires is analyzed by a qualified service technician whjthe provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment o tires condition, an estimated cost of replacement of the tires required. Engine Condition The overall condition of the engine is analyzed by a qualified service technician who provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment of the engine condition, an estimated cost of repair/replacement to bring the engine's condition to normal/good. Transmission Condition The overall condition of the transmission is analyzed by a qualified service technician who provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment of the transmission condition, an estimated cost of repair/replacement to bring the transmission's condition to normal/good. Rear Axle Condition The overall condition of the rear axle is analyzed by a qualified service technician who provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment of the rear axle's condition, an estimated cost of repair/replacement to bring the axle's condition to normal/good. Front Axle Condition The overall condition of the front axle is analyzed by a qualified service technicianwho provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment of the front axle condition, an estimated cost of repair/replacement to bring the axle's =14 condition to normal/good. Accessories Condition The overall condition of the accessories is analyzed by a qualified service technician who provides an estimated rating of either: poor, good, or excellent. In addition, the service technician will include as part of the overall assessment of the accessories' condition, an estimated cost of repair/replacement to bring the accessories' condition to normal/good. The condition data is assessed, analyzed and calculated into the overall condition rating, and highlighted within the annual vehicle report at the Annual Equipment Review. 22 Page 380 of 428 Asset Management Plan Infrastructure Services - Fleet Division Asset Attributes The following asset attributes are extrapolated from the CMMS and populated on the Equipment Review sheet to be included in the analysis of the comprehensive condition assessment. Factor Points Division The location of the vehicle or equipment is indicated via department and division. Identification Each asset is identified with a unique number which is maintained in Flint. The number identification number provides tracking and monitoring capabilities during the equipment review and analysis process. Make, model and The vehicle or equipment make and model is identified in Flint along with the year year the asset was manufactured. Gross vehicle weight This category takes into consideration the weight of the asset. For vehicle assets, it is used to determine the necessity of registering the vehicle under the commercial vehicle operator's registration regulation in Ontario. Mileage For vehicle assets, the mileage as indicated on the odometer in the vehicle and is recorded and maintained in Flint. For equipment, the approximate number of hours of service, utilization is recorded and maintained in Flint. Previous year For vehicle assets, the mileage as indicated on the odometer year to year is mileage recorded and maintained in Flint. For equipment, the approximate number of hours of service, utilization year over year is recorded and maintained in Flint. Description A description of the asset is recorded. W M Attachments If an addition to the asset have been made (such as a snow plow on a pick-up truck), it will be noted. Life cycle The number of years projected for the asset's life cycle is noted. Overall Assessment Value 1. Very Good 2. Good 3. Fair 4. Met Expected Life — Fair 5. Poor The Overall Assessment Value provides a guideline tool during the risk assessment process at the annual Fleet Review. Values can be ignored providing proponents articulate and rationalize their objection to the provided value. Additional data that is utilized to assist with determining the ongoing commitment to maintain the asset include: 23 Page 381 of 428 Asset Management Plan Infrastructure Services - Fleet Division • Estimated Purchase Price • Estimated Annual Depreciation • Estimated Repair Cost • Depreciation versus Repair Costs Overall recommendations can include: 1. Keep one more year 2. Replace 3. Remove from service Recommendation provides a guideline tool during the risk assessment process at the annual Fleet Review. The recommendation can be modified providing proponents articulate and rationalize their objection to the provided value. 24 Page 382 of 428 Asset Management Plan Infrastructure Services - Fleet Division Related Risks and Mitigation Management of Fleet Assets A key part of the asset management process, is a risk analysis of vehicles and equipment that is performed based on a lifecycle target. Every year, the Manager of Fleet Planning, undergoes a thorough examination of Fleet inventory based on the lifecycle objectives associated with each piece of equipment and vehicle. Detailed summaries/reports are provided for the following user groups within the City: • Community Services Enterprise (Neighbourhood Programs and Services) • Community Services (Bylaw Enforcement) • Community Services (Fire) • Community Services Enterprise (Sport) • Corporate Services (Human Resources) • Development Services (Building) • Development Services (Engineering) • Development Services (Transportation Services) • Financial Services (Supply Services) • Infrastructure Services (Parks and Cemeteries) • Infrastructure Services (Facilities Management) • Infrastructure Services (Fleet) • Infrastructure Services (Operations — Roads and Traffic) • Infrastructure Services (Utilities) This method of ongoing assessment and rating provides Fleet with a comprehensive tool to provide risk assessment and optimize the level of quality service for City users. The function of the quality management system will enhance Fleet's capacity to provide a measured and continually monitored performance of quality customer service to the City user. During the Annual Equipment Review, each piece of equipment and vehicle (selected for review based on the lifecycle assessment) undergoes an analysis based on the ratings juxtaposed with financial requirements, losses and projected costs. Fleet Users Working Group The primary objective of the Fleet Users Working Group is to improve user satisfaction and service, while educating City users to vehicle and equipment tendencies and uses. Users of Fleet vehicles and equipment are represented via the Fleet Users Working Group (FUWG); a committee made up of management from across the City. The committee meets on a regular basis and minutes are recorded and maintained by the Fleet, Administrative Assistant. Members of FUWG include: • All Operating Areas utilizing Fleet Assets shall have representation on the FUWG. • Waterloo Region Insurance Pool shall be represented to provide insight and information with respect to Risk Management. 25 Page 383 of 428 Asset Management Plan Infrastructure Services - Fleet Division • The Corporate Sustainability Officer shall participate in providing insight, information and support with respect to Corporate Sustainability Initiatives which guide improvement to the environmental impacts of the Fleet. • The Manager of Corporate Health & Safety shall participate in the provision of information and oversight regarding Health & Safety. • The Human Resources Associate responsible for Fleet shall participate in providing information and oversight regarding Labour Relations. • Other participants may be invited to present information or request feedback as applicable to the FUWG. FUWG is the most active and productive committee for City Fleet users. Its function is ensuring there is an ongoing internal dialogue associated with monitoring, discussing, communicating and educating Fleet users on vehicle and equipment use. FUWG provides the best forum for changes and modifications to Fleet inventory, its policies, procedures and practices. The committee provides a consistent and reliable format for Fleet administration to improve users' understanding and awareness of the vehicles and equipment available for City use. Global Positioning System Tracking All vehicles, large equipment and some small equipment utilize GPS as a method of ongoing data analysis and reporting. Service of vehicles and large equipment and related objectives and targets are monitored by Fleet administration via GPS data received in addition to service records entries as: % of Completed Inspections Non-CVOR % of Completed Inspections CVOR 1. Vehicle/equipment operation Idling Time 2. Vehicle/equipment history 3. Vehicle/equipment capabilities and limitations Harsh Breaking Incidents 4. Vehicle/equipment serviceability and risk 5. Vehicle/equipment value and replacement index Harsh Cornering Incidents Speeding Incidents All of the above data and information is provided by Fleet Administration on a daily bases. By monitoring user behaviours, the City is able to address employees who are considered a high risk. 26 Page 384 of 428 Asset Management Plan Infrastructure Services - Fleet Division Repair Priority Matrix The following matrix is applied to determine priority of repairs. CORPORATE PRIORITY MATRIX DESCRIPTION 1. EMERGENCY 1. SSU emergency equipment A threat to life and/or the 2. Winter maintenance equipment (Nov. 1 environmental destruction of property, to Apr. 7) equipment or facility. 3. Utilities main break equipment 4. Forestry — aerial truck 5. Fire Department 2. BREAKDOWN • Road service Questions: Immediate response with appropriate 1. Is it a hazardous situation? resources. 2. Is it in an unsafe area? 3. What is the problem (type of repair)? Permanent or corrective action will be 4. When needed? Is there a spare? completed through one of the lower 5. Supervisor of Fleet negotiate time frame. priorities. 3. RUNNING REPAIRS • Defects 1. How long down? Does not render the • Building 2. Is there a spare? vehicle/equipment inoperative, but 3. User and Fleet negotiate time frame for can be completed during the shift. repair. Vehicle cannot operate and ca be repaired during the shift with minimal inconvenience to the user. 4. SCHEDULED REPAIRS • Bodywork 1. Fleet to negotiate with contact person on Work that can be scheduled and • Collisions time frame. completed within a week and can be • Pre -delivery inspection 2. Can be upgraded to a higher priority at interrupted for work of higher priority. • Servicing (i.e. clean, fuel) any time. • PM inspection/repairs • Legislated inspection/repairs • Retrofitting (i.e. H & S) • Building maintenance 5. SEASONAL/CAPITAL • Rebuilding 1. Fleet to negotiate with user on time Completion date required. • New vehicle outfitting frame. • Seasonal overhauls 2. Can be upgraded to a higher priority at Work is scheduled on quarterly basis any time. (from 1 week to 12 weeks) Work that can be interrupted for work of a higher priority. 27 Page 385 of 428 Asset Management Plan Infrastructure Services - Fleet Division Repair and Maintenance Costing Analysis Fleet Management System (Flint) The Fleet Management System (Flint) is a statistics management system utilized by Fleet and maintained by the Manager, Fleet Planning. The primary function of Flint is to record and maintain data relevant to each uniquely identified vehicle and equipment utilized by City users. Users have access to Flint via Chrystal Reports with an approved access and password from Fleet. Chrystal Reports only provide costs and vehicle/equipment values. Users may obtain detailed information and data for any vehicle or equipment by request. Jobs and service requests for vehicles and equipment are created and input into Flint by the Manager, Fleet Planning. Jobs and service requests may be accessed by our Service Technicians in Flint in the shop. Technicians must enter work performed and additional notes and details in Flint once the job/service is complete. This process maintains complete and accurate data relevant to maintaining a high level of customer service for City users. Preventive maintenance schedules are automatically generated in Flint as prescribed in the Service Agreement. Work Orders — Maintenance, Service and Repairs Work orders are initiated via Flint and by the Fleet Mechanical staff. For the most part, work orders are generated for the purpose of asset maintenance and repair but may also be executed for betterment, non- routine and/or service requests. Service work orders are entered into Flint. Data received from the service technicians in Flint is utilized as part of the value criteria for each asset. Typical examples include accessory items and attachments to vehicles and equipment such as: plows, running boards, Geotab GPS, back rack, box alarms 9 Typical examples include: oil changes, filter changes, tire rotation and changes, brake changes Typical examples include: battery replacement, transmission replacement, replacement of water pump, power steering unit Assets Out of Scope Although this plan generally covers vehicle and equipment assets, there are two groups of assets that have not been included or monitored in our CMMS. Vehicle Charging Stations The city currently owns and operates 48 charging stations (59 charging ports) both for public use and dedicated fleet use. Repair and maintenance occurs on an on -demand basis. Performance is monitored through the 3 party provider (Chargepoint). 28 Page 386 of 428 Asset Management Plan Infrastructure Services - Fleet Division Fuel Stations The Fleet Division is responsible for 17 Fuel tanks of varying size and type. Although these tanks are not monitored within our CMMS, they are inspected monthly by fleet staff and are inspected annually by a 3rd party to insure TSSA compliance. TANK LOCATION FUELTYPE TANKTYPE DESIGN CAPACITY ESTIMATED COST OF NUMBER DISPOSAL 1 KOF - 131 Goodrich Drive Diesel, Clear Steel Above Ground 78, 000 L $20,000.00 2 KOF - 131 Goodrich Drive Diesel, Marked Steel Above Ground 39, 000 L $10,000.00 3 KOF - 131 Goodrich Drive Regular Gas Steel Above Ground 39,000 L $10,000.00 4 KOF - 131 Goodrich Drive Premium Gas Steel Above Ground 1,136 L $1,000.00 5 Rockway Golf Course - Regular Gas Fiberglass Underground 2,250 L $100,000.00 280 Carwood Drive 6 Rockway Golf Course - Diesel, Marked Fiberglass Underground 4,500 L $150,000.00 280 Carwood Drive 7 Doon Valley Golf Course Regular Gas Steel Protected Underground 2,250 L $100,000.00 - 500 Doon Valley Drive 8 Doon Valley Golf Course Diesel, Marked Fiberglass Underground 4,500 L $150,000.00 - 500 Doon Valley Drive 9 Woodland Cemetery - Regular Gas Steel Above Ground 2,200 L $1,000.00 119 Arlington Blvd. 10 Woodland Cemetery - Diesel, Marked Steel Above Ground 2,200 L $1,000.00 119 Arlington Blvd. 11 Williamsburg Cemetery - Regular Gas Steel Above Ground 1,136 L $1,000.00 1541 Fischer Hallman Rd. 12 Williamsburg Cemetery - Diesel, Marked Steel Above Ground 1,136 L $1,000.00 1541 Fischer Hallman Rd. 13 Victoria Park - 135 Dill St. Diesel, Marked Steel Above Ground 1,136 L $1,000.00 14 Budd Park - 1111 Homer Diesel, Marked Steel Above Ground 1,1361 $1,000.00 Watson Blvd. 15 Bridgeport Sportsfields - Diesel, Marked Steel Above Ground 1,136 L $1,000.00 Bridge St. E. 16 Queensmount Arena - Diesel, Marked Steel Above Ground 1,136 L $1,000.00 1260 Queen's Blvd. 17 Peter Hallman Ball Yard - Diesel, Marked Steel Above Ground 1,136 L $1,000.00 Lennox Lewis way 29 Page 387 of 428 Asset Management Plan Infrastructure Services - Fleet Division Financial Summary Fleet Ten Year Operating Budget Operating and maintenance charges are applied against each asset through an hourly shop rate. The shop consists of the hourly technician rate plus percentage increases to include benefits, shop supplies and management/ administration fees. The following 10 -year operating budget has been extrapolated via the previous year of actual Work Order costs associated with all asset categories and a 2% inflation rate has been applied to build out the projection. The Fleet Operating budget is intended for the repair and maintenance of Fleet assets. This includes ongoing routine maintenance, preventative maintenance, annual safety inspections, defect repairs and body repairs. 2024 BudgetYear $10,597,280.00 2025 $10,809,225.60 2026 $11,025,410.11 2027 $11,245,918.31 2028 $11,470,836.68 2029 $11,700,253.41 2030 $11,934,258.48 2031 $12,172,943.65 2032 $12,416,402.53 2033 $12,664,730.58 2034 $12,918,025.19 Total $128,955,284.50 Funding for this operating budget is generated through an internal charge out rate when vehicles and equipment are applied to an operations workorder. Any repair and maintenance completed on an asset will draw down on this account according to the hourly Shop Rate. The operating budget for Fleet division is intended to operate at net zero dollars. Therefore, if there is a deficit at year end, the gap will be funded through internal charges spread across the different users (divisions). If there is a surplus, the funds will be moved to maintenance the Fleet Equipment Reserve. S,- c' f.JOG" .Q Operating Budget Forecast 120MC 100mo SOD= 6000 DW 4ODM 202b2027 20Z8 ZD29 20 YDSR ■TMI 30 Page 388 of 428 Asset Management Plan Infrastructure Services - Fleet Division LL_p-n4 Ten Year Capital Budget Forecast The 10 year Capital Budget Forecast is the budget that is currently entered into the budget system. However, this forecast is reviewed and updated annually after the Equipment Review process. Fleet Capital purchases are funded through the Equipment Reserve. The Equipment Reserve is maintained by depreciating the cost of the asset on a monthly basis through internal charges to the user (division). This forecast also incudes the budget for Equipment Acquisitions & Upgrades. This funding is applied to net new assets and upgrades to replacement vehicles & equipment. This funding source is from the City's enterprises (Kitchener Gas & Water Utilities) and the City's Development Charges. Year Capi#�I Replacement Equip. Acquisitions & 11dLEt UnL7radas 6udeet 2024 $ 6,987,000 $ 1,353,000 $ 8,340,000 2025 $ 7,124,000 $ 1,381,000 $ 8,505,000 2026 $ 6,387,000 $ 1,407,000 $ 7,794,000 2027 $ 4,768,000 $ 1,435,000 $ 6,203,000 2028 $ 5,966,000 $ 1,464,000 $ 7,430,000 2029 $ 6,354,000 $ 1,493,000 $ 7,847,000 2030 $ 6,225,000 $ 1,523,000 $ 7,748,000 2031 $ 6,042,000 $ 1,554,000 $ 7,596,000 2032 $ 5,971,000 $ 1,585,000 $ 7,556,000 2033 $ 6,091,000 $ 1,616,000 $ 7,707,000 2034 $ 6,000,000 $ 1,650,000 $ 7,650,000 Sum of Equip. Acquistions & Upgrades Budget Sum of Capital Replacement Budget 9006000 8000060 7000600 600000O 5000000 1000000 0 2024 10 Year Capital Budget Forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 . Sum d Capiml Repi—ent Budget. ■ Sum of Equip. Acqu ctions & Vpgrad es Budget 31 Page 389 of 428 Asset Management Plan Infrastructure Services - Fleet Division Asset Replacement Forecast The Replacement Forecast is based on the expected life cycle and based on current estimated replacement values. Although there is a high estimated value for the year 2024, this value is a sum the assets that have met the expected life at the year 2024 or prior and are considered fair and therefore, still in service. These assets are evaluated each year as part of the Equipment Review process and are continually maintained according to the prescribed level of service. This value will continue to move forward year to year as assets continue to meet the expected life and assets are replaced (removed from inventory). �l KiTc-;i-[F.rir.R 10 Year Capital Forecast mpg M7 M28 2029 2030 2.03, 32 Page 390 of 428 EstimatedYear Replacement 2024 Value $29,623,039.04 2025 $6,404,288.68 2026 $5,323,942.34 2027 $5,693,383.50 2028 $6,301,473.28 2029 $4,833,451.39 2030 $4,629,617.97 2031 $4,331,981.24 2032 $3,906,939.22 2033 $1,632,217.82 2034 $1,899,824.73 Total $74,580,159.20 10 Year Capital Forecast mpg M7 M28 2029 2030 2.03, 32 Page 390 of 428 $8,004,000 $6.004,000 $4.064,000 $2,064,000 so -52,404,040 -54,460,000 Yew . Asset Management Plan Infrastructure Services - Fleet Division Replacement Budget versus Replacement Forecast In order to budget for the value of assets being deferred, the total value is divided over the 10 Capital Budget Forecast. Although there is a projected gap, the gap is expected to be funded from the Fleet Equipment Reserve. Again, these budgets are reviewed annually after the Equipment Review. Row Labels Sum of Total Sum of Canital Sum of Funding 2024 2025 2026 Forecast a& $7,620,063 $8,849,064 $7,768,717 Replacement Budget $6,987,000 $7,124,000 $6,387,000 Gap -$633,063 -$1,725,064 -$1,381,717 2027 $8,138,159 $4,768,000 -$3,370,159 2028 $8,746,248 $5,966,000 -$2,780,248 2029 $7,278,227 $6,354,000 -$924,227 2030 $7,074,393 $6,225,000 -$849,393 2031 $6,776,756 $6,042,000 -$734,756 2032 $6,351,714 $5,971,000 -$380,714 2033 $4,076,993 $6,091,000 $2,014,007 2034 $4,344,600 $6,000,000 $1,655,400 Grand Total $77,024,934 $67,915,000 -$9,109,934 FL,"=== S_m: _:= R=1=:=-- F-::= S�11F — G=0 Replacement Budget vs Replacement Forecast ■ Sum of7ot3l Forecast ■ Sun of Capital Rephmn—t Budget ■ Sun ofFundng6ap 33 Page 391 of 428 1 Non -Core Assets Facilities Cemeteries Stormwater Parks & Trails Roads Parking POLICY Policy No: GOV-COR-506 Policy Title: CORPORATE ASSET Approval Date: Click here to enter a Transportation MANAGEMENT date. Reviewed Date: May 2024 Policy Type: ADMINISTRATIVE Next Review Date: May 2029 Category: Governance Reviewed Date: -a1CK neve zo enter text. Sub -Category: Corporate Last Amended: ;lick hereto enter a Author: Manager, Infrastructure Asset date. Planning Replaces: Click here to enter text. Dept/Div: Financial Services, Financial Planning & Asset Management Repealed: Click here to enter a date. Replaced by: Click here to enter text. Related Policies, Procedures and/or Guidelines: Corporate Asset Management Strategy Update O. Reg 588/17 Asset Management Planning For Municipal Infrastructure 1. POLICY PURPOSE: Concise, easy -to -understand statement, which explains the objective or philosophy underpinning the policy. To outline the Corporation's principles and governance models regarding the coordinated approach for the management of municipal assets. 2. DEFINITIONS: Unusual or specialized language, acronym, jargon or unique application of words. Asset: Any item, thing or entity that has potential or actual value to the organization. For this policy assets are categorized as core and non-core as shown in the table below. Water Wastewater Non -Core Assets Facilities Cemeteries Stormwater Parks & Trails Roads Parking Bridges & Culverts Golf Gas Forestry Transportation Fleet 1 of 8 Page 392 of 428 Policy No: Policy Title: Asset Management (AM): A coordinated set of activities to realize optimal value from the organization's assets throughout their lifecycle. Asset Management Plan (AMP): Document that details how groups of assets are to be managed over their lifespan. The plan describes the characteristics and conditions of infrastructure assets, the levels of service expected from them, planned operational and maintenance actions to help assets provide the expected level of service, and financing strategies to try to implement the planned actions. This document also addresses the impacts and maintenance risks associated with owning the asset. Asset Management System: A set of processes and procedures that govern how Asset Management is to be implemented. Level of Service: Defined service for a particular activity or service area against which service performance may be measured. Service levels relate to measures like capacity & use, function, quality & reliability, and financial sustainability. Lifecycle: The various phases of an asset's life that are identified as; planning and construction, operations, maintenance and disposal. Each phase has its own opportunities, risks, impacts and costs. Optimization: The City will apply consistent application of practices based on the needs of the asset classes, interventions and operations to achieve sustainability and provide optimum value for the public through the: • Implementation of a lifecycle approach to managing infrastructure; • Inclusion of changes that consider and addresses impacts to equity deserving groups; • Evaluation of risk related to environmental, social and external impacts; and, • Incorporation of sustainability criteria into infrastructure projects to help ensure a responsible balance between cost, performance, people -centered outcomes and risk. Subject Matter Expert (SME): Individuals that accumulate knowledge over time in particular fields or topics and have a level of understanding that is broader than just common knowledge. SMEs are an important resource in maintaining or improving municipal processes or assets. 2 of 8 Page 393 of 428 Policy No: Policy Title: Sustainable: Achieving or retaining an optimum compromise between performance, costs, and risk of the asset life, while avoiding adverse long-term impacts to the organization from short- term decisions. Treatment: Any infrastructure improvement activity, including but not limited to maintenance, betterment, renewal, rehabilitation, reconstruction, replacement, lifecycle management activity 3. SCOPE: Statement as to whom the policy applies, as well as exceptions and the ramifications of non- compliance, if any and deemed appropriate to include. [Start typing here] 4. POLICY CONTENT: Policy details, including specific roles and responsibilities relating to the policy. Guiding Principles The City's Corporate Asset Management methodology is designed to be an integrated network that will create a systematic framework to critically evaluate municipal infrastructure decisions. The principles in this policy will guide the City in developing an effective approach to managing its assets and deliver optimal value. The City will do it's best to: 1. Adopt a Lifecycle Approach: Applying a whole -life methodology for managing infrastructure assets through the various phases of its lifecycle; 2. Provide Optimal Value: Balance cost, risk, and performance of assets; 3. Ensure Sustainability: Prioritize environmental, and financial outcomes while meeting expected levels of service; 3 of 8 Page 394 of 428 POLICY APPLIES TO THE FOLLOWING: ❑x All Employees ❑ All Full -Time Employees ❑ All Union ❑ Management ❑ C.U.P.E. 68 Civic ❑ Non Union ❑ C.U.P.E. 68 Mechanics ❑ Temporary ❑ C.U.P.E. 791 ❑ Student ❑ I.B.E.W.636 ❑ Part -Time Employees ❑ K.P.F.F.A. ❑ Specified Positions only: ❑ Other: ❑ Council ❑ Local Boards & Advisory Committees [Start typing here] 4. POLICY CONTENT: Policy details, including specific roles and responsibilities relating to the policy. Guiding Principles The City's Corporate Asset Management methodology is designed to be an integrated network that will create a systematic framework to critically evaluate municipal infrastructure decisions. The principles in this policy will guide the City in developing an effective approach to managing its assets and deliver optimal value. The City will do it's best to: 1. Adopt a Lifecycle Approach: Applying a whole -life methodology for managing infrastructure assets through the various phases of its lifecycle; 2. Provide Optimal Value: Balance cost, risk, and performance of assets; 3. Ensure Sustainability: Prioritize environmental, and financial outcomes while meeting expected levels of service; 3 of 8 Page 394 of 428 Policy No: Policy Title: 4. Develop Service Knowledge: Asset service levels will be clearly defined and communicated; 5. Continuously Improve: Adopt and improve asset management practices and processes throughout the City; and, 6. Endorse Evidence Based Decisions: Improve asset optimization by using up-to-date infrastructure information. Objectives The City has a social, environmental and fiduciary responsibility to develop a structured method of effectively managing assets on behalf of the public. Significant portions of the City's assets have long lifecycles and are in service for decades. Through the establishment of good asset management practices, the City will critically evaluate the impact of the assets lifecycle to ensure the asset is providing optimum value for the public in a fiscally responsible manner. The combination of lifecycle analysis, financial sustainability, and risk analysis will be the driver of asset management recommendations. Asset management planning itself will not occur in isolation from other municipal goals, plans, and policies. An integrated approach will be followed to successfully develop practical asset management plans and procedures that align with the overarching accountabilities and aspirations of the community. When working as it should, asset management plans and principles will be integrated into everyday decisions that achieve the goals articulated in other City documents such as the Strategic Plan, Official Plan, Master Plans, and the budget. In addition to integrating into everyday decisions, as part of its asset management planning, the City is committed to consider the actions that may be required to address the vulnerabilities caused by climate change to the City's infrastructure assets with respect to operations, levels of service, and lifecycle management. This includes, but is not limited to: • Anticipating the costs related to any vulnerabilities • Identifying adaptation opportunities to manage the risks associated with vulnerabilities • Developing mitigation approaches to climate change • Conducting disaster planning exercises • Identifying contingency funding 4 of 8 Page 395 of 428 9 Policy No: Policy Title: The objectives of the Corporate Asset Management Program are to: 1. Ensure all legislative requirements and regulatory standards are met. 2. Support the improvement of data -driven decision-making that promotes doing the right thing, to the right asset, at the right time. 3. Establish a set of consistent corporate standards and processes to help optimize how assets are managed throughout their lifecycle including acquisition, maintenance, disposition, and service provision. 4. Develop tools to clearly communicate complex asset management concepts in plain language that can be understood by stakeholders. 5. Achieve continuous improvement in asset management processes related to data quality and related systems, thereby improving forecast reliability. Roles and Responsibilities The model described is the internal governance structure to outline the connections and flow of information in regards to the City's AM model. • Overall Governance Mr.rporate 4— • Strategic Alignment LeadershipTeam • Internal Champion ■ Oversight • Develop & Recommend Subject Matter Technical Expert Asset Support Coordinate Management Section Council's Role — Overall Governance 1. Approve policies and asset management plans (AMPs). 2. Approve levels of service for different program areas across the City. 3. Approve funding allocations through the City's annual budget process to support desired levels of service. 4. Support ongoing efforts to continuously improve and implement the City's asset management plans. 5 of Page 396 of 428 Policy No: Policy Title: Corporate Leadership Team Role — Strategic Alignment 1. Promote alignment between corporate goals and asset management principles. 2. Endorse the asset management policy, AMPs, and any related updates in advance of seeking Council approval. Executive Lead (CFO) Role — Internal Champion 1. Champion corporate adoption and integration of asset management principles, objectives and practices. 2. Encourage an integrated approach to planning and communication to help ensure asset management goals are achieved. Asset Management Steering Committee Role - Oversight 1. Steering Committee will be comprised of Directors from the various asset areas included in the AMPs, as well as the Director of Financial Planning & Asset Management, and Manager of Infrastructure Asset Planning. 2. Provide oversight and guidance to asset management issues. 3. Monitor progress towards stated asset management goals. 4. Decide on recommendations for changes to asset management principles, objectives, and practices. 5. Seek approval for adequate staff and financial resources to support asset management goals. 6. Promote corporate adoption and integration of asset management principles, objectives and practices throughout the corporation. Asset Management Working Group Role — Develop & Recommend 1. Working Group will be comprised of Managers/Supervisors/Technical staff from the various asset areas included in the AMPs, as well as related support divisions (e.g. TIS, ERP Solutions, Financial Planning) and the Manager of Infrastructure Asset Planning. 2. Develop and recommend improvements related to asset management issues. 3. Report progress towards stated asset management goals. 4. Develop asset management principles, objectives, and practices to be applied in specific asset areas. 5. Identify staff and financial resources needs to support asset management goals. 6. Promote adoption and integration of asset management principles, objectives and practices in their respective areas including the value of the activities staff are undertaking and the asset information they are providing. 7. Coordinate with SMEs regarding assets in their area. 6 of 8 Page 397 of 428 Policy No: Policy Title: Subject Matter Experts (SMEs) Role — Technical Input 1. Collect and track asset information for assets within their portfolio. This includes but is not limited to asset inventory, condition, estimated service life, treatment strategies, deterioration rates, treatment costs, replacement costs. 2. Help establish and maintain the risk profile and levels of service for assets in their area. 3. Use asset management processes and data to inform decisions in their rehabilitation and replacement prioritization decisions. 4. Apply a full lifecycle perspective when considering the construction or acquisition of assets and development of future capital and operating plans. Asset Management Section Role — Guide, Support & Coordinate 1. Guide divisions related to asset management principles, objectives and practices and facilitate related skill development. 2. Support the continuous improvement of asset management processes, data, and systems. 3. Coordinate and prepare AMPs and other asset management reports (such as an asset management report card) based on input from SMEs, the AM Working Group, and the AM Steering Committee. 4. Ensure asset management plan information is considered in the development of the municipal budget. 5. The Manager of Infrastructure Asset Planning is the centralized point of contact for asset management and is responsible for the integration of AM principles. They advise the AM Steering Committee, AM Working Group and SMEs. Other Legislative Requirements In addition to the preceding content of this policy, the following items are included to comply with legislation. Capitalization Thresholds The capitalization thresholds for the City are detailed in the policy FIN -REP -698, Tangible Capital Assets (TCA). Every asset that provides value or has the potential to provide value and connects to the ability to deliver a level of service will be evaluated for inclusion within the appropriate Asset Management Plan. Inclusion will not be based solely on the established TCA capitalization thresholds. Interrelated Assets The City is committed to coordinate the planning of asset management for municipal infrastructure connected to other municipalities or jointly -owned municipal bodies. 7 of 8 Page 398 of 428 5. E-* Policy No: Policy Title: Input Into Asset Management Planning The City is committed to provide opportunities for residents and other interested parties to provide input into the City's asset management planning. HISTORY OF POLICY CHANGES Administrative Updates The date (yyyy-mm-dd) and a short annotation on the nature of the change to reflect the current corporate structure i.e. Departmental re -organization / Titling changes / Standing Committee restructuring. [Start typing here] Formal Amendments The date of the resolution passed by Council or CLT, for example, "2020-01-20 - As per Council/CLT directive" [Start typing here] 8 of Page 399 of 428