2. Asset Management Plan Presentation to OPWA Transportation & Works Corporate Report 2005.173 Providing essential services that meet standards at minimum cost. Strategic Items 22 and 24 March 28, 2006

3. Agenda 1.History 2.Overview of Asset Management Plan 3.Putting to all together - Detailed Strategy for Paved Surfaces 4.Money, Money, Money 5.City Council 6.Conclusion 7.Help/Contacts 8.Q & A

4. New Foundation Strategic Plan A goal of the City of Thunder Bay’s New Foundation Living Strategic Plan is to “provide essential services that meet our standards at minimum cost”. Strategic Action Number 22 and 24 of the plan at March 2004 identified that an Infrastructure Maintenance Plan and Facilities Asset Management Plan for traffic signals, street lights, roads, sidewalks, bridges, sanitary sewers, storm sewers, water distribution, facilities and fleet needed to be developed.

5. Overview of Asset Management Plan Arial View of Island Drive Bridge

6. What is asset management? Asset Management is a systematic process which allows for the maintenance, upgrading and operation of our physical assets in a cost effective manner.

7. Why do we need asset management? Existing infrastructure is ageing Increased demand for better roads, bridges, sidewalks, lights and improved sewer & water systems Higher standards for safety & health Environmental protection concerns Regulations Growth

8. How was the plan developed? The Transportation & Works Department reviewed the existing long range infrastructure strategies and current technical and financial practices And compared the existing strategies and practices to Best management practices in other municipalities and the InfraGuide prepared by the FCM & NRC

9. What are the benefits of asset management? ►Facilitates the establishment of policy objectives & related measurement of performance ►Avoids problems & potential crisis ►Provides better & consistent levels of service for public ►Reduces life cycle costs

10. Benefits ( continued ) ►Allows for better decisions regarding resource allocation ►Reduces risk to municipality ►Allows for more effective financial planning ►Leads to more efficient data management ►Results in positive institutional change

11. What are the key principals? 1.Strategic & proactive in approach. 2.Places a premium on data, information, collaboration and interdisciplinary management. 3.A long term and comprehensive view of infrastructure performance and cost. 4.An explicit, visible, and transparent approach requiring effective communication among all stakeholders. 5.A business case involving investment choices that are policy driven with tradeoffs among competing priorities.

12. What are the essential components of the plan? 1.Asset Value 2.Life Cycle Management 3.Sustainability 4.Integration of Technical & Financial Plans 5.Risk Assessment 6.Performance Management

13. 1. Asset Value It must be recognized that all assets have a monetary value. This value is used to determine the depth of re-investment for each asset. By knowing the “value” the type of rehab strategy and/or optimum replacement time can be determined. Finance Dept is participating in the Ontario Municipal Benchmarking Initiative (OMBI) to determine actual value of assets through a capital cost study.

14. 2. Life Cycle Management All assets have a finite life expectancy. Estimate rate of deterioration Decision point – what impact will work done at any point in the life cycle have on remaining asset life, operation costs and other related expenses.

15. 3. Sustainability “Meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.” (National Guide to Sustainable Municipal Infrastructure) Current users pay a fair share for the service they receive so that future users do not have to pay a higher cost for the same level of service.

16. 4. Technical & Financial Plan Integration Financial PlanTechnical Plan Identify financial investment required per year for each asset’s life cycle over the long term Identify exceptional expenditures required to meet requirements of technical plan based on condition surveys Minimize life cycle costs Maintain adequate level of service Maintain service level at lowest possible risk Cash Flows

17. 5. Risk Assessment Acceptable risk tolerance for each asset must be part of the strategy Condition survey used to determine rate of failure and consequences of failure Risk Factors include: financial, environmental, regulatory/legal, public health and safety

18. 6.Performance Measurement We need to measure what we do Monitor strategies regularly Make adjustments at the right stage of the asset’s life cycle to achieve the balance between cost and level of service OMBI – use benchmarks to determine performance of assets

19. Putting to all together Asset Management Strategy for Paved Surfaces

20. Paved Surfaces - Overall Condition Index (OCI) Asset:Paved Roads Inventory:1932 lane kilometres of paved lane surface Anticipated asset life cycle: Pavement Life of a newly constructed road is affected by design, traffic volumes & loads, construction quality and climate but generally the end of its useful life is: Arterial Roads – 15 years, Collector Roads – 25 years, Local Roads – 35 years Integrated:With other buried assets located in the utility corridor, such as hydro or telephone or sewer & water Rehab & Replacement Criteria: Overall Condition Index (OCI) is a pavement condition rating between zero and ten which measures defects in the pavement. An OCI equal to ten is a new pavement & and OCI equal to zero is a pavement that is impassable. OCI Threshold point of rehabilitation or reconstruction for: Arterials & Collectors – Rehabilitation = 6.0 (extend life up to 28 years depending on strategy); Reconstruction = 3.0 (total replacement of pavement). Locals – Rehabilitation = 5.0, Reconstruction = 3.0 Rehab and Replacement Strategies: Based on OCI index, road classification (arterial, collector, local), rural or urban, curbed or no curbs, benefit/cost ratio the following rehabilitation strategies are selected: Total reconstruction of pavement with 80 mm or 120 m of hot mix asphalt. Mill & resurface pavement with 50mm or 80mm of hot mix asphalt. Mill and resurface pavement with 50mm or 80mm or hot mix asphalt. Strip & resurface pavement with 50mm or 80mm of hot mix asphalt. Pulverization & remixing with 50mm or 80mm of hot mix asphalt. Overlay with 50mm or hot mix asphalt. Mill & resurface patches of pavement with 50mm of hot mix asphalt. Routing & crack sealing pavements Life Cycle Consequences: Under funding pavement rehabilitation results in more pavement falling below an OCI of 6.0 & results in quadrupling construction costs. Rehabilitating a pavement with an OCI of 6.0 reflects a cost of $15/square meter & an added life of up to 28 years versus reconstruction a pavement with an OCI of 3.0 reflects a cost of $65/.square meter. Pavements falling to an OCI = 3.0 affects level of service, and increases risk & liabilities. Integrated Asset Priorities: Pavement rehabilitation forecast is compared to underground utility forecast. The integration of projects occurs internally within T&W & externally with utility members of the Thunder Bay Public Utility Charts/Tables:See attached OCI Charts. Note the difference in % length of roads within the zero to four (reconstruction category following ten years of funding at $4M or funding at $10M Estimated Cost per year for strategy described $7M/yr to $10M/yr based on OCI development in 2000. A new OCI will be developed in 2005-6 which may change the estimated cost.

21. Paved Surfaces OCI Distribution Non-Arterial Streets 4M/Yr

22. Paved Surfaces OCI Distribution Non-Arterial Streets 10M/Yr

23. Money

24. What is the current tax supported funding gap? ASSET$/YR REQUIRED2006 Paved Roads10.0M5.2M Bridges1.5 M.00M Sidewalks1.0M.77M Traffic Signals.4M.37M Street Lights.35M.36M Storm Sewers2.5M.65M Facilities5.0M2.75M Fleet5.0M4.75M Total25.75M14.85M Shortfall/Gap10.9M

25. How do we bridge the gap? 1.Revise asset management strategies from time to time in accordance with best management practices, technology, financial constraints and condition assessments. 2.Continue to work together to accommodate the technical and financial requirements of the plan. 3.Continue to investigate and pursue any grant funding opportunities that are related to the sustainability of this Plan.

26. It is concluded that the Asset Management Plan as presented is a systematic process for the maintenance, upgrading and operating of our physical assets in a cost effective manner. Living Strategic Action Plan Action Items 22 & 24

27. City Council

28. Achievements/Benefits Benefits were immediate; Very well received - Asset Management Plan complied with the intent of the Strategic Plan; Assisted with increasing the “roads” rehab budget by 1.0 million (tax supported) in 2006;

29. Achievements/Benefits Federal gas tax monies/Grants directed to Asset Management Plan to assist with funding gap; Provided an opportunity for dialogue; Provided for excellent understanding as to why (based upon the OCI for roads) specific roads are rehabilitated prior to others.

30. Achievements/Benefits Few questions at budget time; Minimal requests to modify capital priorities at budget time; Unspecified funds in budget to allow for intervention when liability is found; Request to include this overview as part of City Council orientation.

31. Where to go for “HELP” Federation of Canadian Municipalities and National Research Council –InfraGuide www.infraguide.ca Other Municipalities (BMP’s) Call Us for our Plan, Templates, Presentations and Reports CTB Web site www.thunderbay.ca

32. Contacts Pat Mauro, P,Eng Manager of Engineering 807-625-2137 pmauro@thunderbay.ca Darrell Matson GM Transportation and Works 807-625-2137 dmatson@thunderbay.ca