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150122 SP CouncilATTENDANCE Mayor Stephen Molnar Deputy Mayor Dave Beres Councillor Maxwell Adam Councillor Penny Esseltine Councillor Jim Hayes Councillor Chris Rosehart Councillor Brian Stephenson STAFF: David Calder, CAO Donna Wilson, Town Clerk Kevin De Leebeeck, Director of Operations Rick Cox, Director of Parks and Recreation Services Darrell Eddington, Director of Finance Jeff Smith, Fire Chief 1.Call to Order The Meeting was called to order at 9:04 a.m. Deputy Mayor Beres sat as Chair as Mayor Molnar was detained at a previously committed meeting. 2.Adoption of Agenda Moved By: Councillor Rosehart Seconded By: Councillor Hayes THAT the Agenda as prepared for the Council meeting of January 22, 2015, be adopted. Carried 3.Moment of Silence 4.Disclosures of Pecuniary Interest and the General Nature Thereof No disclosures of pecuniary interest were declared The Corporation of the Town of Tillsonburg SPECIAL COUNCIL MEETING Thursday, January 22, 2015 9:00 PM Council Chambers 200 Broadway, 2nd Floor MINUTES Council Meeting – Agenda 2 5.Adoption of Council Minutes of Previous Meeting 5.1. Minutes of the Meeting of January 15, 2015 Moved By: Councillor Hayes Seconded By: Councillor Rosehart THAT the Minutes of the January 15, 2015 Budget Council Meeting, be approved. Carried 6.Information Items 6.1. IT Strategic Review Town of Tillsonburg - IT Strategy Town of Tillsonburg - IT Strategy - Council Presentation 6.2. Asset Management Plan 2013 Asset Management Plan for the Town of Tillsonburg 2013 6.3. White Paper on the Roof Maintenance Program RCP 15-03 - White Paper on the Roof Maintenance Program RCP 15-03 - ATT 01 - Elliott Fairbairn roof report RCP 15-03 - ATT 02 - Elliott Fairbairn roof diagram RCP 15-03 - ATT 03 - Leak Repair - OPP building Discussion took place regarding roof repair and replacements to determine priorities and those needs. After budget deliberations, staff to look at the Elliot Fairbairn lease to determine if it makes financial scense to continue with this lease. 6.4. FIN 15-03 Tax Class Comparisons FIN 15-03 Tax Class Comparisons BMA 2014 Municipal Tax Study 6.5. Revised Debt Summary Information 2015 Long Term Debt Repayment 6.6. FIN 15-04 Town of Tillsonburg Ground Lease Agreement FIN 15-04 Town of Tillsonburg Ground Lease Agreements TOWN AMENDMENT GROUND LEASE NOV 1994 TOWN AMENDING AGREEMENT FEB 2004 Council Meeting – Agenda 3 7.Departmental Business Plans 7.1. Operations Business Plan Kevin De Leebeeck, Director of Operations 2015 Business Plan- Operations Services White Paper OPS 15-01 White Paper OPS 15-02 The Director of Operations reviewed asset management - what that is and how replacement and budgeting affect that plan. Mayor Molnar joined the meeting at 10:40 a.m. Council took a recess at 10:46 a.m. Council resumed at 10:54 a.m. Discussion took place regarding municipal policies or general procedures for purchasing new or used vehicles, the general practice of the Town is to purchase new vehicles. The Director suggests that vehicle costs be charged out to the various departments rather than hitting the tax base directly but through various departments. This would provide for department accountability for vehicle usage and would provide actual costs for each vehicles use for projects such as leaf pickup etc. Staff to move toward a responsible and sustainable asset management plan Option 3 is recommended for a future budget by the Director – Contributing any surplus from Fleet Services operating budget, while also funding the yearly capital investment requirements, until the $1.55M target is achieved. The department is asking the following: To establish a dedicated fleet and equipment account To move forward in a future budget with fleet and equipment reserve account to help build that reserve. To obtain pre budget approval for the road project on Camdon Court and Third street so that it can be tendered out now. To fund fleet and roads as presented. Council Meeting – Agenda 4 Moved By: Councillor Hayes Seconded By: Councillor Stephenson THAT Operations Business Plan be received as information; AND THAT Pre Budget approval be given for Third Street and Camdon Court reconstruction in order for RFP’s to be sent out. Carried Staff will be reaching out to the residents regarding the construction of sidewalks on Camdon Court. Council recessed for lunch at 12:31 p.m. Council resumed at 1:04 p.m. Mayor Molnar and the Director of Recreation, Culture & Parks, Rick Cox left to attend another meeting. 7.2. Fire Business Plan Jeff Smith, Fire Chief 2015 Business Plan- Fire Services White Paper Fire Prevention Officer Business Case `Fire & Rescue Stats has been added at the end of the package. Mayor Molnar returned to the meeting at 1:40 p.m. The Fire chief provided council with stats on calls and incidents from 2006 – 2014. Discussion took place regarding pre budget approval for hydraulic extrication equipment due to current risks. Director of Recreation, Culture & Parks, Rick Cox returned to the meeting at 2:30 p.m. Council took a 10 minute recess at 2:51 p.m. Council resumed at 3:00 p.m. and the Mayor resumed the chair. Fire prevention officer – staff looked at partnering with another municipality however there was no viable partner available. Due to downloading from the province the role is required to be fulfilled by the department. Council Meeting – Agenda 5 Staff to provide council with further information regarding the fluctuations between 2014 and 2015 for the following GL Accounts, 5415, 5420 and 5425. 7.3. Economic Development and Marketing Cephas Panschow, Development Commissioner 2015 Business Plan - Economic Development & Marketing White Paper DCS 15-01 Highway 3 Business Park Development Plan White Paper DCS 15-10 Membership in the Southwestern Ontario Marketing Alliance White Paper DCS 13-10 Southwestern Ontario Marketing Alliance White Paper Comparison of SCOR, SOMA & SWEA Discussion took place regarding lands at the airport and the acreage legally required to operate an airport which is 250 acres. Discussion took place regarding the taxation benefits to SW Oxford only. Discussion took place regarding Corporate communications and that Citizens would like to see more information through social media, this initiative would need to be consistently carried out in order for it to be effective. 8. Recommendations Moved By: Councillor Stephenson Seconded By: Councillor Esseltine THAT the White Paper on the Roof Maintenance Program be received as information; AND THAT FIN 15-03 Tax Class Comparisons be received as information; AND THAT Revised Debt Summary Information be received as information; AND THAT FIN 15-04 Town of Tillsonburg Ground Lease Agreement be received as information; AND THAT Fire Business Plan be received as information; AND THAT Economic Development and Marketing Business Plan be received as information. Carried Moved By: Councillor Stephenson Seconded By: Councillor Adam THAT Pre Budget approval be given for fire rescue auto extrication rescue equipment which includes air bags, hydraulic rescue tools, for $45,000 in total. Defeated Council Meeting – Agenda 6 9.By-Laws By-Laws from the Meeting of January 22, 2015 Moved By: Deputy Mayor Beres Seconded By: Councillor Adam THAT By-Law 3871, to Confirm the Proceedings of the Council Meeting of January 22, 2015, be read for a first and second time and this constitutes the first and second reading thereof; AND THAT By-Law 3871, be given third and final reading and the Mayor and Clerk be and are hereby authorized to sign the same, and place the Corporate Seal thereunto. Carried 10. Adjournment Move By: Councillor Esseltine Seconded By: Councillor Stephenson THAT the Council Meeting of January 22, 2015 be adjourned at 4:41 p.m. Carried Table of Contents Agenda 3 Minutes of the Meeting of January 15, 2015 Minutes of the Meeting of January 15, 2015 6 IT Strategic Review Town of Tillsonburg - IT Strategy - DRAFT3 10 Town of Tillsonburg - IT Strategy - Council Presentation 104 Asset Management Plan 2013 Asset Management Plan for the Town of Tillsonburg 2013 123 White Paper on the Roof Maintenance Program RCP 15-03 - White Paper on the Roof Maintenance Program 190 RCP 15-03 - ATT 01 - Elliott Fairbairn roof report 191 RCP 15-03 - ATT 02 - Elliott Fairbairn roof diagram 207 RCP 15-03 - ATT 03 - Leak Repair - OPP building 208 FIN 15-03 Tax Class Comparisons FIN 15-03 Tax Class Comparisons 217 BMA 2014 Municipal Tax Study 218 Revised Debt Summary Information 2015 Long Term Debt Repayment 220 FIN 15-04 Town of Tillsonburg Ground Lease Agreement FIN 15-04 Town of Tillsonburg Ground Lease Agreements 223 TOWN AMENDMENT GROUND LEASE NOV 1994 225 TOWN AMENDING AGREEMENT FEB 2004 248 2015 Business Plan - Operations Services 2015 Business Plan- Operations Services 262 Report OPS 15-01 White Paper on the Town's Asset Management Plan Report OPS 15-01 309 Report OPS 15-02 White Paper on the Town's Fleet and Equipment Report OPS 15-02 311 2015 Business Plan - Fire Services 2015 Business Plan- Fire Services 323 Fire Prevention Officer Business Case Fire Prevention Officer Business Plan 338 2015 Business Plan - Economic Development & Marketing 2015 Business Plan - Economic Development & Marketing 346 Report DCS 15-01 Hwy 3 Business Park Development Plan Report DCS 15-01 Highway 3 Business Park Development Plan 364 1 Report DCS 15-10 Membership in the Southwestern Ontario Marketing Alliance Report DCS 15-10 Membership in the Southwestern Ontario Marketing Alliance 372 Reports DCS 13-10 Southwestern Ontario Marketing Alliance 377 Comparison of SCOR, SOMA & SWEA(Dec8,11)383 By-Law 3871 By-Law 3871 457 2 1.Call to Order 2.Adoption of Agenda Proposed Resolution #1 THAT the Agenda as prepared for the Council meeting of January 22, 2015, be adopted. 3.Moment of Silence 4.Disclosures of Pecuniary Interest and the General Nature Thereof 5.Adoption of Council Minutes of Previous Meeting 5.1. Minutes of the Meeting of January 15, 2015 Proposed Resolution #2 THAT the Minutes of the January 15, 2015, be approved. 6.Information Items 6.1. IT Strategic Review Town of Tillsonburg - IT Strategy Town of Tillsonburg - IT Strategy - Council Presentation 6.2. Asset Management Plan 2013 Asset Management Plan for the Town of Tillsonburg 2013 6.3. White Paper on the Roof Maintenance Program RCP 15-03 - White Paper on the Roof Maintenance Program RCP 15-03 - ATT 01 - Elliott Fairbairn roof report RCP 15-03 - ATT 02 - Elliott Fairbairn roof diagram RCP 15-03 - ATT 03 - Leak Repair - OPP building The Corporation of the Town of Tillsonburg SPECIAL COUNCIL MEETING Thursday, January 22, 2015 9:00 PM Council Chambers 200 Broadway, 2nd Floor AGENDA 3 Council Meeting – Agenda 2 6.4. FIN 15-03 Tax Class Comparisons FIN 15-03 Tax Class Comparisons BMA 2014 Municipal Tax Study 6.5. Revised Debt Summary Information 2015 Long Term Debt Repayment 6.6. FIN 15-04 Town of Tillsonburg Ground Lease Agreement FIN 15-04 Town of Tillsonburg Ground Lease Agreements TOWN AMENDMENT GROUND LEASE NOV 1994 TOWN AMENDING AGREEMENT FEB 2004 7.Departmental Business Plans 7.1. Operations Business Plan Kevin De Leebeeck, Director of Operations 2015 Business Plan- Operations Services White Paper OPS 15-01 White Paper OPS 15-02 Lunch Break 7.2. Fire Business Plan Jeff Smith, Fire Chief 2015 Business Plan- Fire Services White Paper Fire Prevention Officer Business Case 7.3. Economic Development and Marketing Cephas Panschow, Development Commissioner 2015 Business Plan - Economic Development & Marketing White Paper DCS 15-01 Highway 3 Business Park Development Plan White Paper DCS 15-10 Membership in the Southwestern Ontario Marketing Alliance White Paper DCS 13-10 Southwestern Ontario Marketing Alliance White Paper Comparison of SCOR, SOMA & SWEA 4 Council Meeting – Agenda 3 8. Recommendations Proposed Resolution #3 THAT the White Paper on the Roof Maintenance Program be received as information; AND THAT FIN 15-03 Tax Class Comparisons be received as information; AND THAT Revised Debt Summary Information be received as information; AND THAT FIN 15-04 Town of Tillsonburg Ground Lease Agreement be received as information; AND THAT Operations Business Plan be received as information; AND THAT Fire Business Plan be received as information; AND THAT Economic Development and Marketing Business Plan be received as information. 9. By-Laws By-Laws from the Meeting of January 22, 2015 Proposed Resolution #4 THAT By-Law 3871, to Confirm the Proceedings of the Council Meeting of January 22, 2015, be read for a first and second time and this constitutes the first and second reading thereof; AND THAT By-Law 3870, be given third and final reading and the Mayor and Clerk be and are hereby authorized to sign the same, and place the Corporate Seal thereunto. 10. Adjournment Proposed Resolution #5 THAT the Council Meeting of January 22, 2015 be adjourned at _____ p.m. 5 1. Call to Order The meeting was called to order at 9:01 a.m. 2. Adoption of Agenda Moved By Councillor Rosehart Seconded By: Councillor Hayes THAT the Agenda as prepared for the Council meeting of January 15, 2015, be adopted. Carried 3. Disclosures of Pecuniary Interest and the General Nature Thereof No disclosures of pecuniary interest were declared. 4. Opening Remarks David Calder, Chief Administrative Officer opened the budget meeting with general comments on the budget and acknowledged the work of staff in its preparation. 5. 2015 Budget Overview Darrell Eddington, Director of Finance 2015 Business Plan and Budget 011515 Staff to find out if there will be taxation or funds in 2015 derived from the new School currently being built by the Thames Valley District School Board. Staff to provide a report to council regarding the comparison/taxation study of like size municipalities. Discussion took place regarding the ground lease pertaining to the mall and the loss of revenue as per rent agreements starting this year. Staff to provide Council with an education on the ground lease agreements with the Mall. The Corporation of the Town of Tillsonburg SPECIAL COUNCIL MEETING Thursday, January 15, 2015 9:00 AM Council Chambers 200 Broadway, 2nd Floor MINUTES 6 Council Meeting – Minutes 2 The amount of debt, principal and interest charges that the municipality can afford, ie the annual repayment limits set by the Ministry of Municipal Affairs and Housing (MMAH) is $2.3 million. Total current debt now is $11 million and if new debt is approved, projecting $11.2 million at the end of 2015. The debt servicing cost for 2015 is $1.9 million. Council has requested a 10 minute orientation session on asset management prior to the presentation from the Director of Operations. Council took a 10 minute recess at 11:01 a.m. Council resumed at 11:16 a.m. Operations to provide detailed data on individual vehicle history including year, km and hours on each vehicle and general condition. Staff to add the maturity dates to the debt principle balance line items Staff to provide Council with the debt details for the “Quarterline Railway Track” project. Staff to provide Council with the IT strategy that was approved by the previous Council. Staff to provide Council with an annualized costing regarding the impact of the FTE positions. Staff to report back to Council regarding the trail funding and how those funds have been allocated. Staff to review the sustainability of the Elliot Fairburn Building as the revenue may not be there to maintain that building. 2015 Capital Budget Overview 2015 Budget Summary-PSAB 2015 Long Term Debt Repayment 6. Departmental Business Plans 6.1. Finance Business Plan Darrell Eddington, Director of Finance 2015 Business Plan- Finance FIN 15-02 IT Work Plan 7 Council Meeting – Minutes 3 6.2. Human Resources Business Plan Ashley Andrews, Human Resources Manager 2015 Business Plan - Human Resources CAO-HR-15-02 6.3. Records Management Coordinator Business Case Donna Wilson, Municipal Clerk Business Case - Records Management Coordinator 2015 Lunch Break 6.4. Recreation, Culture and Parks Services Business Plan Rick Cox, Director of Recreation, Culture and Parks Services 2015 Business Plan- Recreation, Culture and Parks White Paper on the Roof Maintenance Program Elliot Fairbairn Roof Report Elliott Fairbairn Roof Diagram Moved By: Councillor Stephenson Seconded By: Councillor Esseltine THAT the 2015 Finance Business Plan and Budget be received as information; AND THAT the 2015 Human Resources Business Plan and Budget be received as information; AND THAT the 2015 Records Management Coordinator Business Case be received as information; AND THAT the 2015 Recreation, Culture and Parks Services Business Plan and Budget be received as information. Carried 8 Council Meeting – Minutes 4 7. By-Laws By-Laws from the Meeting of January 15, 2015 Moved By: Deputy Mayor Beres Seconded By: Councillor Adam THAT By-Law 3870, to Confirm the Proceedings of the Council Meeting of January 15, 2015, be read for a first and second time and this constitutes the first and second reading thereof; AND THAT By-Law 3870, be given third and final reading and the Mayor and Clerk be and are hereby authorized to sign the same, and place the Corporate Seal thereunto. Carried 8. Adjournment Moved By: Councillor Esseltine Seconded By: Stephenson THAT the Council Meeting of January 15, 2015 be adjourned at 4:05 p.m. Carried 9 Town of Tillsonburg IT Strategic Review January 2013 DRAFT 10 © Deloitte LLP and affiliated entities. Table of contents •Project background and objectives •Findings summary •Recommendations summary •5 year strategic roadmap •IT operating model current state assessment •Appendix A – Town IT role definition •Appendix B – Survey results •Appendix C – Benchmarking results •Appendix D – Functional gap Summary 1 Town of Tillsonburg - IT Strategy Review (DRAFT) 11 © Deloitte LLP and affiliated entities. Project background and objectives 2 Town of Tillsonburg - IT Strategy Review (DRAFT) 12 © Deloitte LLP and affiliated entities. Project approach 3 Town of Tillsonburg - IT Strategy Review (DRAFT) 1. Confirmation and initial planning 2. Current state assessment 4. IT Strategy finalization and presentation Project Approach 1.Confirmation of project scope, approach, and deliverables 2.Project kick-off presentation / meeting 3.Stakeholder interview and project schedule 1.Conduct survey of internal and external users 2.Conduct interviews with functional users to understand a.Current and future processes b.High priority / unique requirements c.System gaps and challenges with current systems 3.Perform internal and external security testing 4.Review gathered data and establish understanding of IT environment 5.Conduct benchmarking with similar municipalities 1.Finalize multi-year IT strategy aligning with the vision and objectives of the Town 2.Obtain sign off on deliverables from project sponsor 3.Present final report to Town Council Project Background The Town of Tillsonburg has engaged Deloitte to conduct an assessment of the Town’s technology controls, processes, policies and underlying infrastructure. At present the Town’s IT operations are outsourced to the County of Oxford and management is looking for direction on a future IT operating model as well as ensuring current infrastructure and applications are capable of meeting the business needs of the Town. The assessment focused on the following key areas: •Applications and infrastructure; •Governance and strategy; •Information security and vulnerability; and •Disaster recovery planning. Objectives •Benchmarking of the Town’s IT environment against comparable municipalities; •Future state IT organizational structure and governance model; •Directional hardware and software requirements; •Sustainable IT funding model; •Recommended Disaster Recovery and Record Storage Model; •Guidance on policies and procedures that should be in place to support the IT Strategy and impacted business units at the Town; •Identify the most effective strategy for meeting the Towns business needs and priorities; and •Define an action plan and roadmap for implementing that strategy 3. IT Strategy development 1.Compare current state assessment to identified leading practices, benchmarks, and maturity models 2.Evaluate alternative IT governance and delivery models 3.Draft proposed IT strategy 4.Conduct initial review with stakeholders and management 13 © Deloitte LLP and affiliated entities. Deloitte’s IT operating model was leveraged to ensure completeness of the strategic assessment 4 •The IT operating model covers all dimensions requested by the Town including applications, infrastructure, governance and strategy, information security, and disaster recovery planning. •The IT Operating Model provides a holistic view of the IT function, driven by the business strategy •The model highlights the core areas of IT Management: •Governance •Business Applications (Acquisition) •Systems Management: •Processes •Infrastructure •Organization •Each area is broken down into sub- categories which enable the ability to zero-in on specific components that are critical for the Town •Each of the components was customized for the Town(based on work completed to-date and stakeholder input) to ensure specific, pragmatic and tactical recommendations are defined for the organization’s IT function Organization Governance Project Management Project Prioritization Strategy and Architecture Processes Performance Management Policies and Procedures Continuous Improvement Org. Structure / Roles / Responsibilities Skills and Resources Sourcing (Resources) Business Strategy Systems Management Business Applications Processes Infrastructure Asset Management Change Management Service Desk / Problem Mgmt. Continuity & Disaster Recovery (DR) Security Capacity Management Network Telephony Server Data Centre Storage Backup Design Acquire / Enhance Define Test Deploy Requirements Definition Design Data Modeling Acquire / Enhance Configure Applications Plan and Define Testing Execute Testing Change Management Implementation Training and Development Deloitte’s IT operating model is based on COBIT and ITIL frameworks. Town of Tillsonburg - IT Strategy Review (DRAFT) 14 © Deloitte LLP and affiliated entities. Findings summary 5 Town of Tillsonburg - IT Strategy Review (DRAFT) 15 © Deloitte LLP and affiliated entities. Drivers of the IT strategy review Driver Deloitte Approach and Findings Infrastructure Investment in physical IT infrastructure has been neglected at the Town for several years Deloitte interviewed County IT staff responsible for managing infrastructure as well as end users to understand the impact of current hardware on operations. A key theme was significant lost productivity on the part of Town staff due to frequent workstation and server downtime or slow performance. Total lost productivity reported was 1 – 3 hours per employee per week. As well, significant time is spent by IT resources maintaining the server infrastructure and managing storage to ensure systems stay operational. Applications There is limited understanding of whether the Town’s current applications meet functional needs Deloitte interviewed senior management and staff to understand how current applications were meeting functional needs. Application functionality within the major applications was sufficient to meet current business needs. However it is noted that there may be overlap in applications between departments such as those related to fixed asset management. The various asset intensive departments and finance are each considering the use of different applications. In addition, some current applications could be consolidated into fewer larger hardware platforms to improve performance and reduce maintenance, while still enabling redundancy. Governance and Strategy The Town is in a state flux with regards to its operating model (short term arrangement with the County of Oxford). There is limited definition of IT governance. Deloitte conducted benchmarking and reviewed the Town’s budgetary and IT organizational model to determine a suitable go forward strategy. Of the municipalities consulted for benchmarking all had primarily in-house IT services. Information security and vulnerability Given the age of infrastructure and change in operating model there is uncertainty around whether security gaps exist to current systems. Deloitte conducted internal and external testing of the Town’s network using VA tools including QualysGuard and other tools, as well as manual verification. Several weaknesses in the current system were noted primarily due to the age of infrastructure and application areas. Disaster recovery planning There is limited redundancy, data backup, or business continuity currently in place. Deloitte reviewed system documentation and interviewed IT and functional staff to determine the current state of disaster recovery planning. There is currently a high risk of data loss due to the lack of data protection practices in place. 6 Town of Tillsonburg - IT Strategy Review (DRAFT) A detailed functional gap summary is provided in Appendix D which summarizes the key gaps noted through interviews with Town staff and management. 16 © Deloitte LLP and affiliated entities. Current high risk areas As part of the review Deloitte identified four high risk areas which should be addressed by the Town in the short term. These areas have the potential to significantly impact IT operations and service delivery to constituents if not prioritized for short term action. •Security and network vulnerability – There are significant weaknesses within the Town’s network largely due to its aging infrastructure and systems. Some system expose data to the internet that may lead to compromise of systems or disclosure of information. •Non-compliance of software licenses – Current Microsoft licenses are out of date at both the operating system and desktop application level. This is driven partly due to a lack of standardization across the Town (i.e., servers running on different versions of OS software) as well as a lack of oversight within the Town. There is potentially significant financial risk to the Town in the event of a license audit by the vendor. The Town should conduct an inventory of all Microsoft office and operating system installs and standardize versions while working with the vendor to update licenses. •Staff productivity - aged hardware infrastructure (servers and workstations) – The age of server and workstation infrastructure results in poor performance, and risk of imminent failure. Workstation performance results in significant lost productivity by Town staff impacting constituent service. Server performance is similarly poor with frequent downtime and impacts to application performance. Downtime impacts of 1 – 3 hours per employee results in lost productivity of $384,000 annually*. –The Town lacks the ability to upgrade certain applications due to out dated server configurations. Priority should be placed on completing a workstation refresh followed by server replacement based on a target architecture to modernize the current set up. •Disaster recovery – There is a lack of redundancy across the current architecture resulting in high risk of data loss. In the event of a disaster the Town has no business continuity capabilities outside of fully manual operations. Redundancy should be built in with the server replacement exercise recommended as part of the hardware refresh initiative above. 7 Town of Tillsonburg - IT Strategy Review - Council Update (DRAFT) *Based on 80 employees and an average fully loaded FTE cost of $50/hr 17 © Deloitte LLP and affiliated entities. Summary of observations – IT operating model dimensions 8 Town of Tillsonburg - IT Strategy Review (DRAFT) Overview Implications Dimension IT Governance •Lack of formalized IT policies, processes and management against defined approaches •Lack of structure to determine IT related decisions at an enterprise-wide level •Limited management of IT initiatives to prioritize investments •Lack of standards for application acquisition, hardware requirements, and training •Limited ability to align IT execution to the business strategy to make informed decisions •Lack of alignment on investments and direction when it comes to technology •Limited ability to enforce compliance with strategic decisions Applications Internal / External •Lack of a defined management mechanism to identify an “end of life” technology or optimize application portfolio •Business areas and departments acquire point solutions without management consultation leading to duplicate purchases, licensing and interface issues etc. •Lack of consistent and formalized IT standards (DB, OS, etc.,) that are also difficult to maintain with variety of applications in the current state •Vendor support staff and County IT are responsible for providing IT support •Application portfolios expand without bound and control leading to license compliance issues and interfacing issues •Increased costs related interfaces and/or manual re-keying of data •Technology is not appropriately leveraged across departments to enhance automation opportunities •Outdated applications result in license compliance risks Systems Mgmt Processes •Formal SLA’s are not in place with all software vendors including the County of Oxford •Lack of redundancy for data backups and business continuity •Lack of IT asset management plan including planned refreshes, standardization of hardware, etc., •Limited capacity management plans linked to future changes in the use of IT at the Town. •Out-dated infrastructure resulting in productivity losses •Inefficient infrastructure design resulting in increased costs and reduced level of service •Increased risk of data loss •Lack of storage capacity resulting in short term fixes to remain operational Systems Mgmt Infrastructure •Aging and outdated IT infrastructure including desktops, laptops, telephones, electronic devices etc. •IT infrastructure not being leveraged to its full potential (i.e. non-utilized SAN) while there is a need for basic infrastructure and hardware (i.e. full hard-drives, servers etc.) •Data integrity, duplication and security is an issue for some manual interface points to Great Plains •Increased user down-time resulting in increased costs, reduced productivity and service quality issues (each staff member spends at least 1 hour a week related to computer crashes) •Increased costs due to lack of maximum utilization of existing resources and systems Organization •Lack of user training in IT applications and systems •Limited application knowledge within functional areas (with the exception of Great Plains) •Role of IT within the organization is not well understood •There are limited resources within the Town to support business areas in assessing IT needs and recommending appropriate direction •Application features may not be appropriately leveraged due to lack of training •Ability for functional areas to conduct “self-support” is limited resulting in added dependency on the County •Business areas conduct independent decision making on IT without appropriate understanding the Town’s ability to support applications Initial Mature Initial Mature Initial Mature Initial Mature Initial Mature 18 © Deloitte LLP and affiliated entities. Targeted future state of IT 9 •The maturity model, a standard tool for effectively assessing an organization’s IT capabilities, is used to illustrate the current state maturity ranking of the Town across each of the components of the IT Operating Model Maturity Model – Definitions •Basic repeatable processes are established but are not applied consistently •Limited formal communication of processes or policies and procedures •Tools introduced to enable operations •Basic definition of roles / responsibilities •Processes are disorganized, even chaotic •Processes are not sufficiently defined and / or documented •Success is dependent on individual efforts, and is not considered to be repeatable •No tools in place •Roles / responsibilities are loosely defined •Processes are formalized through documentation, standardization, and integration •Policies and procedures are in place along with training to relevant stakeholders •Tools are in place to support processes •Roles / responsibilities are formally defined •Process / performance benchmarks and KPIs are established •Performance monitoring and continuous improvement is introduced •Consistent tool utilization •Resources are aligned against repeatable processes with documented roles / responsibilities •Proactive management of performance and focus on continuous improvement •Consistent and repeatable application of processes across the organization •Proactive review of tools performance •Full resource alignment against processes and performance management aligned roles Developing Initial Defined Managed Mature Increasing Maturity Increasing Maturity Developing Defined Managed Mature Initial Dimension Future State Maturity (5 Year Strategy) IT Governance Applications (Acquisition) Sys. Mgmt. Processes Sys. Mgmt. Infrastructure People Legend: 3 – 5 years Current State •To address the Town’s objectives to enhance services to constituents and staff while controlling costs, the IT function will need to mature to at least a “Defined” level •Some areas such as Governance and Infrastructure will need to move to the “Managed” level given their importance to addressing the stated goals •Depending on the Town’s direction in adopting a best-of-breed applications strategy the Applications (Acquisition) dimension will require greater development •Given the limited IT capacity within the organization today, and the level of investment and effort that will be required to achieve the future state maturity, a progressive approach is recommended within the operating model. •Overall, the most significant shifts will be required within IT Governance and Infrastructure, which are the traditional areas that require development within emerging organizations Town of Tillsonburg - IT Strategy Review (DRAFT) 19 © Deloitte LLP and affiliated entities. Recommendations summary 10 Town of Tillsonburg - IT Strategy Review (DRAFT) 20 © Deloitte LLP and affiliated entities. Summary recommendations Driver Summary recommendations Infrastructure Investment in physical IT infrastructure has been neglected at the Town for several years The Town should invest in upgrading its server and end user hardware in the short term. A workstation refresh should be made priority to enable staff productivity. Applications There is limited understanding of whether the Town’s current applications meet functional needs An in-depth application architecture strategy is recommended to assess where common applications can be rationalized, where additional functionality is required, and where County applications can be leveraged. Governance and Strategy The Town is in a state flux with regards to its operating model (short term arrangement with the County of Oxford). There is limited definition of IT governance. Given cost and skillset constraints, the short term the Town should continue to work with the County while ensuring strong internal IT management capabilities within the senior management group. Information security and vulnerability Given the age of infrastructure change in operating model there uncertainty around whether security gaps exist to current systems. Significant gaps should be addressed in the short term as provided to Town management. Disaster recovery planning There is limited redundancy, data backup, or business continuity currently in place. As part of the hardware refresh and system architecture migration basic redundancy should be put in place in the short term. Over the medium to long term a business impact analysis and detailed disaster recovery plan should be formed. 11 Town of Tillsonburg - IT Strategy Review (DRAFT) A detailed functional gap summary is provided in Appendix D which summarizes the key gaps noted through interviews with Town staff and management. 21 © Deloitte LLP and affiliated entities. Short term priority items Review of the Town’s IT operations revealed several gaps which require immediate attention to limit risks to the organization and overall constituent service. These items are highlighted below and are considered as part of the 5 year roadmap detailed on slide 12 of this report. •In the short term the Town should focus on addressing key gaps around IT infrastructure and governance. •Immediate investment should be conducting a full hardware refresh including servers, laptops/desktops, and network infrastructure. Specific items include: –Hardware refresh •End user systems: Due to the age of and lack of reliability, replacing end user systems will increase productivity by reducing downtime and waiting time, as well as reducing help desk calls •Infrastructure: Updating core infrastructure components and re-designing system addressing schemes (in progress) will improve network infrastructure performance –Email migration •The current email system is inefficient and out of date. Upgrading the infrastructure will reduce downtime, system management effort –Server architecture •Virtualization: Virtualization technology will enable redundancy and consolidation of systems, as well as optimize hardware usage •Redundancy: The ability to fail over or reinitialize servers on redundant hardware will improve the reliability of the town systems. As noted, virtualization enables redundancy without significant hardware purchase. •Consolidation: Consolidation of databases, email and other applications into common, redundant systems simplifies system maintenance and can reduce licensing costs •IT governance aspects such as oversight, policies and procedures should be developed and implemented. •An application strategy is recommended to ensure current investments are being appropriately leveraged and necessary functionality is being delivered. Over the long term aspects such as enabling mobility and business intelligence should be considered •With regards to disaster recovery/business continuity, short term focus should be on building redundancy as part of the hardware refresh. From 2015 a more fulsome business impact analysis and disaster recovery plan should be developed. 12 Town of Tillsonburg - IT Strategy Review (DRAFT) 22 © Deloitte LLP and affiliated entities. 5 year roadmap 13 Town of Tillsonburg - IT Strategy Review (DRAFT) The roadmap below presents the initiatives recommended for the Town over 5 years in order to achieve stability in IT operations and reach the target maturity levels recommended on slide 8. A disproportionate amount of effort and cost is allocated in the first two years of the plan in order to mitigate the high risk areas facing the Town as highlighted on slide 7 above. Determining a preferred operating model (initiative 7.1) and developing and implementing an IT governance section (initiative1.1) will help to further refine the scope and timing of the remaining recommended initiatives. Details of the initiatives are provided in the”5 year strategic roadmap” section beginning on slide 18. Thread/ Year 2014 2015 2016 2017 2018 Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec 1.0 Governance 1.1 Develop and implement IT governance structure 2.0 Network 2.1 Network baseline 2.2 Upgrades, replacements and maintenance 3.0 Servers 3.1 Target architecture 3.2 Architecture migration 3.3 Maintenance and refresh 4.0 End user computing 4.1 Workstation refresh 4.1.1 Mobility updates 4.2 Maintenance and refresh 5.0 Applications 5.1 Application strategy 5.2 Application enhancement and rationalization 5.3 Strategic enhancements 6.0 Systems Management 6.1 IT asset management 6.2 Conduct business impact analysis (BIA) and design and implement disaster recovery plan (DRP) 6.3 Ongoing capacity management 7.0 Organization 7.1 Operating model decision 7.2 Staff training (end user + functional power users) 23 © Deloitte LLP and affiliated entities. Cost summary (hardware, software, and licensing) Item 2014 2015 2016 2017 2018 2.1 & 2.2 Network baseline/upgrades 55,000 5,000 5,000 5,000 5,000 3.1 Target server architecture - - - - - 3.2 Architecture migration 40,000 – 60,000 - - - - 3.3 Server maintenance and refresh 15,000 – 20,000 10,000 – 15,000 10,000 – 15,000 10,000 – 15,000 10,000 – 15,000 4.1 Workstation refresh 120,000 - 150,000 - - - - 4.1.1 Mobility updates 25,000 - 40,000 5,000 – 10,000 5,000 – 10,000 5,000 – 10,000 5,000 – 10,000 4.2 End user maintenance - 20,000 – 30,000 20,000 – 30,000 20,000 – 30,000 20,000 – 30,000 5.2 Application enhancement - 30,000 – 40,000 - - - 5.2.1 Email replacement 40,000 – 60,000 - - - - Total hardware and software $295,000 – $395,000 $70,000 – $100,000 $40,000 – $60,000 $40,000 – $60,000 $40,000 – $60,000 14 Town of Tillsonburg - IT Strategy Review - Council Update The table below summarizes the capital impact of the recommendations outlined in this report. A significant capital investment must be made in the first two years to mitigate the risks currently facing the Town. Current 2014 placeholder costs The town has currently allocated $634,700 for various hardware, application and licensing costs. The overall cost meets the required spend for 2014 and 2015. However the pace and overall allocation will need to be evaluated by management based on the recommendations of this IT strategy. Item 2014 budget (placeholders) Licensing/maintenance contracts $319,200 Other $7,500 Workstation Refresh $80,000 Server $150,000 Laserfische $28,000 Strategic plan implementation $50,000 Total $634,700 24 © Deloitte LLP and affiliated entities. Cost summary (resourcing) Item 2014 2015 2016 2017 2018 1.1 Develop and implement IT governance structure 50,000 25,000 2.1 & 2.2 Network baseline/upgrades 45,000 - - - - 3.1 Target server architecture 25,000 - - - - 3.2 Architecture migration 25,000 50,000 - - - 4.1 Workstation refresh 25,000 - - - - 4.1.1 Mobility updates 25,000 - - - - 5.1 Application strategy 60,000 – 80,000 - - - - 5.2 Application enhancement - 25,000 10,000 - - 5.3 Strategic enhancements - - - 300,000 300,000 5.2.1 Email replacement 50,000 - - - - 6.1 IT asset management - - - - - 6.2 BIA and DRP - 50,000 30,000 - - Total resource $305,000 - $325,000 $150,000 $55,000 $300,000 $300,000 15 Town of Tillsonburg - IT Strategy Review - Council Update The table below summarizes the budget impact for staff or contract resources to execute the recommendations outlined in this report. This is the expected increase in budget over the current budget costs for the IT infrastructure. As most of these costs are one time project costs, the best funding is for most of the costs is as specific projects. Current 2014 placeholder costs The town has currently held $72,000 resourcing cost held for county payments. Overall resourcing costs will need to be evaluated in order to effectively execute on the recommendations in the IT strategic plan. Some re-allocation from hardware, software, and licensing costs may need to be considered. Item 2014 budget place holder Consultant/contractor - Payments to County $72,000 Employee - Total $72,000 25 © Deloitte LLP and affiliated entities. IT operating model options Town management should prioritize a decision around a future IT operating model which will help drive future planning for medium to longer term initiatives. The potential options and their related risks, benefits, and costs are described below. Regardless of the direction chosen an investment in IT needs to be made at the management level to ensure accountability and skillsets are present at the high level of Town administration. •Status quo – Maintain the current relationship with the County with limited defined IT accountability within Town management and maintaining existing processes and IT infrastructure. •Fully in-source IT – Develop an internal IT department with full time staff to maintain applications, infrastructure, and related IT processes. •County contract with defined governance – Maintain the relationship with the County, however clearly define IT ownership within Town management, build functional application skillsets within the department, and conduct infrastructure renewal. •Outsource to private provider – Contract a private 3rd party provider to manage all IT servers for the Town with a dedicated contract manager at the Town. 16 Town of Tillsonburg - IT Strategy Review (DRAFT) Option Risk Benefits Cost Decision 1.Status Quo HIGH Not scalable, aging infrastructure NEGATIVE Potential for application proliferation and significant loss of staff productivity NEGATIVE Potentially high financial impact to the Town with lost productivity, lack of data redundancy, and licensing risks Not a viable option 2.Fully in-source IT HIGH Limited internal skillsets to support diverse applications MODERATE Provides control and oversight of IT operations HIGH Hiring and training needs for applications and infrastructure support Not a viable option 3.County contract with defined governance LOW Current working relationship, HIGH Leverage County skillsets, potential to leverage applications and reduce costs MODERATE Initial hardware refresh costs will be high however longer term costs can be controlled with shared service opportunities Pursue in 3-5 year term 4.Outsource to private provider HIGH Few providers for municipal space in the region MODERATE Ability to immediately adopt leading practices HIGH There are limited providers in the Municipal space. Not a short term option 26 © Deloitte LLP and affiliated entities. Roles and Responsibility Map IT operating model recommendation •The Town should continue to engage the County for IT services with an enhanced governance framework. This should re-evaluated within 3-5 years as the Town completes is major upgrade initiatives to attain baseline operations. 17 Town of Tillsonburg - IT Strategy Review (DRAFT) Town of Tillsonburg County of Oxford Governance -IT ownership at executive level* -Defined contract and SLAs (service level agreements) -Established policies and procedures (refresh cycles, hardware and application standards, etc.,) -Asset management decision making Network -Town ownership of infrastructure -County maintenance and troubleshooting Servers -Town ownership of infrastructure -County maintenance and troubleshooting -Potential for shared DR capacity End user computing -Town ownership of infrastructure -County maintenance and troubleshooting Applications -Town ownership of infrastructure -County maintenance and troubleshooting -Potential for shared licensing on common applications Systems management -Maintenance of Town assets -Implement and operationalize DRP -Decision making / approvals for Town IT assets will remain the responsibility of the Town. Organization -End user training -Updating of operating model Organization -Staff training and hiring -Ensure sufficient resourcing for County and Town operations Key Stakeholders -Town Council -Senior Management -Functional Users Key Stakeholders -Senior Management -IT Management -IT Staff *The Town should define a specific role at the Senior Management level which holds executive accountability for IT. This position would be the policy and budget owner for all IT areas. The position would act as the primary contract manager between the County and Town, ensure SLAs are achieved, approve IT spending, and work with other Town stakeholders to meet IT needs. The responsibility can be attached to an existing position and would require a moderate level of IT experience. Further detail on these responsibilities are provided in Appendix A. 27 © Deloitte LLP and affiliated entities. 5 year strategic roadmap 18 Town of Tillsonburg - IT Strategy Review (DRAFT) 28 © Deloitte LLP and affiliated entities. 5 year roadmap 19 Town of Tillsonburg - IT Strategy Review (DRAFT) The roadmap below presents the initiatives recommended for the Town over 5 years in order to achieve stability in IT operations and reach the target maturity levels recommended on slide 8. A disproportionate amount of effort and cost is allocated in the first two years of the plan in order to mitigate the high risk areas facing the Town as highlighted on slide 7 above. Determining a preferred operating model (initiative 7.1) and developing and implementing an IT governance section (initiative1.1) will help to further refine the scope and timing of the remaining recommended initiatives. Thread/ Year 2014 2015 2016 2017 2018 Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec 1.0 Governance 1.1 Develop and implement IT governance structure 2.0 Network 2.1 Network baseline 2.2 Upgrades, replacements and maintenance 3.0 Servers 3.1 Target architecture 3.2 Architecture migration 3.3 Maintenance and refresh 4.0 End user computing 4.1 Workstation refresh 4.1.1 Mobility updates 4.2 Maintenance and refresh 5.0 Applications 5.1 Application strategy 5.2 Application enhancement and rationalization 5.3 Strategic enhancements 6.0 Systems Management 6.1 IT asset management 6.2 Conduct business impact analysis (BIA) and design and implement disaster recovery plan (DRP) 6.3 Ongoing capacity management 7.0 Organization 7.1 Operating model decision 7.2 Staff training (end user + functional power users) 29 © Deloitte LLP and affiliated entities. 1.1 Develop and implement IT governance structure 20 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Develop IT governance model related to planning, budgeting, and decision making of enterprise wide IT matters. The governance structure should include clearly defined roles and responsibilities of department management, senior management, and Council. In addition clear IT policies should be developed in relation to all aspects of the IT operating model. Key activities Stakeholders •Define IT governance framework including key committees, stakeholders and decision making protocols •Develop communication and training plan to relevant stakeholders •Develop IT policies for application, infrastructure, security and people management •Corporate services departments •Operating departments •Town Council Outcomes •Defined governance framework •Centralized IT decision making •IT policy repository Item 2014 2015 2016 2017 2018 Resourcing cost $50,000 $25,000 N/A N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 30 © Deloitte LLP and affiliated entities. 2.1 Network Baseline 21 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Review the network configuration, speeds, redundancy and loading, and determine target network capacity and growth based on initiatives. Key activities Stakeholders -Identify all network circuits and corresponding speeds (based on information provided during the assessment, several sites are T1 or DSL, with the rest connected via 100 MB/s or better, so link speeds between should be adequate for most requirements) -Update network diagrams and documentation -Monitor network performance and determine bottlenecks -Determine underserviced areas (slow or unreliable connections, wireless requirements, mobile connection) -Identify LAN capacity at all sites -Determine required capacity for planned initiatives •Corporate services departments •Operating departments •Network service provider Outcomes •Baseline network map •Prioritized upgrade plan •Target network baseline Item 2014 2015 2016 2017 2018 Resourcing cost $25,000 N/A N/A N/A N/A Hardware/licensing cost $30,000 $5,000 $5,000 $5,000 $5,000 *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 31 © Deloitte LLP and affiliated entities. 2.2 Network upgrades, replacements and maintenance 22 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Based on the required capacity and current baseline, upgrade active components, cabling and network circuits to meet capacity and reliability requirements identified in target baseline. Establish regular maintenance and upgrade activities to ensure the network capacity provides the required connectivity and bandwidth for all sites. Key activities Stakeholders -Identify priority circuit and device upgrades -Replace or upgrade critical infrastructure components -Upgrade slow or unreliable network circuits -Implement network management strategy and tools as appropriate -Develop and execute network maintenance plan, including rolling upgrade plan for future-proofing network investment -Cost of circuit upgrades can be high – need to determine ROI for upgrade vs. benefit to site •Corporate services departments •Town Council •Network service provider Outcomes •Increased network capacity •Network management plan •Network maintenance plan Item 2014 2015 2016 2017 2018 Resourcing cost* $20,000 N/A N/A N/A N/A Hardware/licensing cost $25,000 $5,000 - $10,000 $5,000 - $10,000 $5,000 - $10,000 $5,000 - $10,000 *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 32 © Deloitte LLP and affiliated entities. 3.1 Target server architecture 23 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Develop the target server architecture to support future applications, in conjunction with the application strategy. The target architecture should take into account supporting current applications and the future application strategy, and migration plans for moving from current to future. Key activities Stakeholders -Inventory current server capacity and utilization -Evaluate replacement technologies -Review application strategy and determine additional server capacity -Define target capacities and develop implementation plan -Determine and document application dependencies -Email is a high priority – current email infrastructure is not optimum and replacement or upgrade with modern software and hardware would decrease support time and operational cost (example: single server to maintain= 1/6 time spent on system maintenance, modern hardware would reduce power consumption for email to by 60-80%) •Corporate services departments •IT staff / provider •Town Council Outcomes •Target server architecture •Server migration plan Item 2014 2015 2016 2017 2018 Resourcing cost $25,000 N/A N/A N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 33 © Deloitte LLP and affiliated entities. 3.2 Architecture migration 24 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Implement the target server architecture, migrate the current components and retire the current architecture, based on migration strategy selected Key activities Stakeholders -Determine implementation phases for each of the infrastructure components -Install and configure infrastructure components per phase -Migrate existing systems and data to the new components -Retire the old systems after migration -Recommendation: use a virtualized approach, and utilize the virtualization “physical to virtual” capability to virtualize the current infrastructure and simplify upgrades •Corporate services departments •Operating departments •IT staff / provider Outcomes •Updated server architecture Item 2014 2015 2016 2017 2018 Resourcing cost* $25,000 $50,000 N/A N/A N/A Hardware/licensing cost $40,000 - $60-000 Refer to maintenance & refresh *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 34 © Deloitte LLP and affiliated entities. 3.3 Server maintenance and refresh 25 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Develop and execute the maintenance plan for keeping the server environment functional and current. The IT policies need to support the maintenance plan, including budget support for hardware upgrades. Key activities Stakeholders -Establish baseline system age and reliability requirements -Determine and implement patch and upgrade schedules -Implement planned upgrade cycle to ensure maximum age of systems does not exceed maximum system age (4 years recommended) -Incorporate hardware capacity increase into planned upgrade cycle •IT staff / provider Outcomes •Maintenance plan •Patch strategy and schedule •System upgrade and replacement schedule Item 2014 2015 2016 2017 2018 Resourcing cost N/A N/A N/A N/A N/A Hardware/licensing cost $15,000-$20,000 $10,000 – $15,000 $10,000 – $15,000 $10,000 – $15,000 $10,000 – $15,000 *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 35 © Deloitte LLP and affiliated entities. 4.1 Workstation refresh 26 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Acquire and install replacement workstations, laptops and other end user devices to update end user computing to a maximum defined age and capacity. In year 1, this is a larger cost, then budget needs to be allocated for annual refresh. It is feasible to defer refresh cycle start to year 3 if a 4 or 5 year refresh cycle is chosen, as initial rollout may take a full year, and with a full set of new systems, the risk of system failure in Y1/Y2 is very low. Key activities Stakeholders -Prioritize refresh roll-out based on functional needs (note: this has already been initiated by the Town) -Establish baseline system age and reliability requirements -Define refresh cycle requirements and define upgrade plans -Replace all obsolete workstations with state of the market systems -Where appropriate, provide portable systems (laptops, tablets, etc.) in lieu of or addition to desktop workstations to enable mobility •Corporate services departments •Operating departments •IT staff / provider Outcomes •System upgrade and replacement schedule •Refresh cycle plans Item 2014 2015 2016 2017 2018 Resourcing cost $25,000 N/A N/A N/A N/A Hardware/licensing cost $120,000 – $150,000 N/A N/A N/A N/A *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 36 © Deloitte LLP and affiliated entities. 4.1.1 Mobility updates 27 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives As part of the end user computing updates, define mobility requirements for users and acquire additional devices or mobile devices (laptops, tablets) instead of traditional workstations. Key activities Stakeholders -Identify mobility requirements -Acquire mobile devices in addition to workstations where applicable -Provide alternate hardware to workstations where feasible or practical •Corporate services departments •Operating departments •IT staff / provider Outcomes •Identified mobility requirements and systems Item 2014 2015 2016 2017 2018 Resourcing cost* $25,000 N/A N/A N/A N/A Hardware/licensing cost** $25,000 – 40,000 $5,000-$10,000 $5,000-$10,000 $5,000-$10,000 $5,000-$10,000 *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline **Hardware licensing is expected incremental cost, for example, replacing current workstation with laptop 37 © Deloitte LLP and affiliated entities. 4.2 End user computing maintenance and refresh 28 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Implement a workstation and end user device upgrade and maintenance strategy. This should be documented in the IT policies with management and budget support. Key activities Stakeholders -Based on the upgrade and replacement schedule, acquire and replace systems on an ongoing basis – example: for a 5 year revolving schedule, replace 20% of end user devices annually -Track system reliability and performance as metrics for determining system replacement ( in addition to the age of the system). -Consider leasing of systems through vendors if appropriate and cost effective •Corporate services departments •Operating departments •IT staff / provider Outcomes •Up to date end user computing systems Item 2014 2015 2016 2017 2018 Resourcing cost N/A N/A N/A N/A N/A Hardware/licensing cost N/A $20,000 - $30,000 $20,000 - $30,000 $20,000 - $30,000 $20,000 - $30,000 *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 38 © Deloitte LLP and affiliated entities. 5.1 Application strategy 29 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Conduct detailed assessment of current application inventory against desired functionality and identify rationalization opportunities and key functional gaps. Define set of core pillar applications in finance, HR, work/asset management, and constituent facing categories. Key activities Stakeholders •Develop current state application inventory •Assess application functionality against business needs •Identify end of life applications and rationalization opportunities •Define pillar applications and consider functional needs •Develop application enhancement or replace plan •Recommended priorities: •Email: migrate from the current Notes email system to a modern email infrastructure (as the environment is Microsoft server based, Exchange would be a strong option, a single Exchange server can easily handle all of the town’s email requirements) •Finance / town management: Evaluate unused capabilities of various software packages as well as comparable applications at the County (assuming the current agreement with the County is maintained) to rationalize application functionality across fewer applications •IT staff / provider •Corporate service departments •Operational departments •Town council Outcomes •Application rationalization and upgrade plan •Target infrastructure requirements Item 2014 2015 2016 2017 2018 Resourcing cost $60,000 - $80,000 N/A N/A N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A 39 © Deloitte LLP and affiliated entities. 5.2 Application enhancement and rationalization 30 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Based on the application strategy, enhance or rationalize applications in conjunction with architecture migration. Key activities Stakeholders •Migrate applications to the upgraded server architecture as appropriate •Upgrade application identified for continued use to the current version •Develop data migration plan and migrate applications that will be retired to replacement applications •Merge applications and/or application support components (e.g.: databases) where appropriate •Recommendations: •Where possible, run multiple database instances on a single server with failover or HA rather than each database on a separate server •Email, migrate to a modern email system as recommended for the application strategy •Application merging as determined by the application strategy •IT staff / provider •Corporate service departments •Operational departments •Town council Outcomes •Rationalized application environment *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline Item 2014 2015 2016 2017 2018 Resourcing Cost* N/A $25,000 $10,000 N/A N/A Hardware/licensing cost N/A $30,000 - $40,000 Potential reduced costs depending on extent of rationalization 40 © Deloitte LLP and affiliated entities. 5.2.1 Email replacement 31 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives As part of the application enhancement, replacement of the email environment with a more modern and compatible email system will need to be completed. Key activities Stakeholders •Acquire and install new email environment •Update end user workstations to support the new email environment •User training •Migrate users and resources to the new email environment •Option: Negotiate with the service provider (ie County) to host email for the town rather than install complete email environment •IT staff / provider •Corporate service departments •Operational departments •Town council Outcomes •Modern and efficient email system Item 2014 2015 2016 2017 2018 Resourcing cost* $50,000 N/A N/A N/A N/A Hardware/licensing cost $40,000 - $60,000 Reduced costs (single (or two in high availability) system vs 6 servers) *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 41 © Deloitte LLP and affiliated entities. 5.3 Strategic enhancements 32 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives This initiative is intended to evaluate and implement strategic enhancements to IT services once the Town has reached the identified level of IT stability and maturity. The projects resulting from this initiative would be prioritized to meet constituent needs on a sustainability basis. Key activities Stakeholders •Assess enhancement opportunities based on constituent and business needs. Current Municipal trends indicate a move towards: •HR technology – greater system support for attendance, performance management, etc., •Financial and project link to GIS data – ability to visual capital improvement projects online •E-Government – web enabled citizen service •Procure resourcing and infrastructure where required for enhancement •Implement and measure key metrics for benefits realization •IT staff / provider •Corporate service departments •Operational departments •Town council Outcomes •Modern and efficient email system *Enhancement costs may be attributed to either resourcing or hardware/licensing depending on the items selected. Item 2014 2015 2016 2017 2018 Resourcing cost N/A N/A N/A $300,000 $300,000 Hardware/licensing cost N/A N/A N/A N/A N/A 42 © Deloitte LLP and affiliated entities. 6.1 IT asset management 33 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Develop IT asset management framework including building defined lT asset management inventory. Define asset standards and refresh cycles. Develop capacity management plan and relevant asset management controls Key activities Stakeholders •Inventory key IT assets •Determine asset management requirements based on maintenance and refresh plans •Develop asset management plan and deploy systems as needed •Provide budget support for asset refresh cycles and asset controls •Define disaster recovery redundancy requirements •IT staff / provider •Corporate service departments •Operational departments •Town council Outcomes •Asset management plan •Implementation of asset management tools as applicable Item 2014 2015 2016 2017 2018 Resourcing cost N/A N/A N/A N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A 43 © Deloitte LLP and affiliated entities. 6.2 Conduct business impact analysis (BIA) and design and implement disaster recovery plan (DRP) 34 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives The objective of Business Continuity Plan and Disaster Recovery Plan review is to analyze the existing resiliency programs including crisis management, emergency response, and disaster recovery / business continuity elements to gain insight into the organization’s current capability versus industry standards and best practices to develop strategic planning recommendations. Key activities Stakeholders •Risk assessment •Business impact analysis •Plan development •Sustainable plan approach •Plan exercising/staff awareness •Implementation and long term maintenance plans •Corporate service departments •Operational departments •Town council Outcomes •Business Impact Assessment •Disaster Recovery Plan •Implementation schedule •Plan testing and maintenance schedules •Staff training plan Item 2014 2015 2016 2017 2018 Resourcing cost N/A $50,000 $30,000 N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 44 © Deloitte LLP and affiliated entities. 6.3 Ongoing capacity management 35 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Capacity management monitors the current and future capacity needs (processing, storage, network, etc.) and ensures that processes are in place to ensure that capacity is available when it is needed without putting undue stress on the infrastructure or incurring sudden costs to upgrade systems. Key activities Stakeholders •Define capacity management goals •Develop capacity management model •Implement tools and processes to monitor capacity usage over time and identify trends •Implement processes to determine capacity impacts of new initiatives and systems •IT staff / provider •Corporate service departments •Operational departments Outcomes •Capacity management plan •Tools and procedures to monitor and deploy IT capacity when and where required •Budget support for capacity initiatives Item 2014 2015 2016 2017 2018 Resourcing cost* N/A N/A N/A N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A *Resourcing costs are expected costs for staff, contracting and IT support to complete the project above current baseline 45 © Deloitte LLP and affiliated entities. 7.1 Operating model decision 36 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Management commitment to future state operating model related to in-house, County partnership, or private outsourcing of IT services. Based on the direction chosen appropriate IT accountability will need to be built into a senior management role. Identification of key functional resources for application support should be identified for critical business applications. Key activities Stakeholders •Evaluate costs and benefits of operating model options •Propose option and obtain Council approval •Draft IT roles/responsibility into existing senior management role. •Determine whether appropriate IT decision making skillset/capability exists at the senior management level •Identify key functional resources available for application support in the business areas •Determine financial, organizational, process, and people impacts of future state operating model •Council •Senior Management •County •Operating departments Outcomes •Defined future state operating model •Refined job description for IT accountability at senior management level Resourcing •Requires commitment of senior management to weight costs/benefits and propose go-forward path for Council approval. Item 2014 2015 2016 2017 2018 Resourcing cost* N/A N/A N/A N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A 46 © Deloitte LLP and affiliated entities. 7.2 Staff training 37 Town of Tillsonburg - IT Strategy Review (DRAFT) Description and objectives Upgrade staff skillsets at the end user and functional super user levels. This initiative will include delivering third party training for business critical applications (CLASS, Great Plains, etc.,) to ensure the current investment in technology is being appropriately leveraged by users. Building functional super user capability will be key to allow for first level application support in the absence of in-house IT capability. Key activities Stakeholders •Identify business critical applications requiring end user training •Identify target staff for training at both end user and functional super user levels •Contract third party training provider for delivery of services (vendor or other party) •Schedule delivery of training at non-peak business periods to ensure maximum attendance •Modify job descriptions for functional super users to include items such as first level application support and training of new end users •Develop training plan for new users through hiring or transfers •Develop training plan for ongoing user currency with systems •Senior Management •Operating departments Outcomes •Training plan for end users and functional super users •Contract with third party for training delivery •Modified job descriptions for functional super users where required Resourcing •Training costs are dependent on scope of training selected, availability of vendor training, and use of external vs. internal resources. Item 2014 2015 2016 2017 2018 Resourcing cost TBD* N/A N/A N/A N/A Hardware/licensing cost N/A N/A N/A N/A N/A *Training costs are dependent on scope of training selected, availability of vendor training, and use of external vs. internal resources. 47 © Deloitte LLP and affiliated entities. IT Operating Model 38 Town of Tillsonburg - IT Strategy Review (DRAFT) 48 © Deloitte LLP and affiliated entities. Deloitte’s IT Operating Model 39 •The IT Operating Model provides a holistic view of the IT function, driven by the business strategy •The model highlights the core areas of IT Management: •Governance •Business Applications (Acquisition) •Systems Management: •Processes •Infrastructure •Organization •Each area is broken down into sub-categories which enable the ability to zero-in on specific components that are critical for the Town •Each of the components was customized for the Town(based on work completed to-date and stakeholder input) to ensure specific, pragmatic and tactical recommendations are defined for the organization’s IT function Organization Governance Project Management Project Prioritization Strategy and Architecture Processes Performance Management Policies and Procedures Continuous Improvement Org. Structure / Roles / Responsibilities Skills and Resources Sourcing (Resources) Business Strategy Systems Management Business Applications Processes Infrastructure Asset Management Change Management Service Desk / Problem Mgmt. Continuity & Disaster Recovery (DR) Security Capacity Management Network Telephony Server Data Centre Storage Backup Design Acquire / Enhance Define Test Deploy Requirements Definition Design Data Modeling Acquire / Enhance Configure Applications Plan and Define Testing Execute Testing Change Management Implementation Training and Development Deloitte’s IT operating model is based on COBIT and ITIL frameworks. Town of Tillsonburg - IT Strategy Review (DRAFT) 49 © Deloitte LLP and affiliated entities. Targeted future state of IT 40 •The maturity model, a standard tool for effectively assessing an organization’s IT capabilities, is used to illustrate the current state maturity ranking of the Town across each of the components of the IT Operating Model Maturity Model – Definitions •Basic repeatable processes are established but are not applied consistently •Limited formal communication of processes or policies and procedures •Tools introduced to enable operations •Basic definition of roles / responsibilities •Processes are disorganized, even chaotic •Processes are not sufficiently defined and / or documented •Success is dependent on individual efforts, and is not considered to be repeatable •No tools in place •Roles / responsibilities are loosely defined •Processes are formalized through documentation, standardization, and integration •Policies and procedures are in place along with training to relevant stakeholders •Tools are in place to support processes •Roles / responsibilities are formally defined •Process / performance benchmarks and KPIs are established •Performance monitoring and continuous improvement is introduced •Consistent tool utilization •Resources are aligned against repeatable processes with documented roles / responsibilities •Proactive management of performance and focus on continuous improvement •Consistent and repeatable application of processes across the organization •Proactive review of tools performance •Full resource alignment against processes and performance management aligned roles Developing Initial Defined Managed Mature Increasing Maturity Increasing Maturity Developing Defined Managed Mature Initial Dimension Future State Maturity (5 Year Strategy) IT Governance Applications (Acquisition) Sys. Mgmt. Processes Sys. Mgmt. Infrastructure People Legend: 3 – 5 years Current State •To address the Town’s objectives to enhance services to constituents and staff while controlling costs, the IT function will need to mature to at least a “Defined” level •Some areas such as Governance and Infrastructure will need to move to the “Managed” level given their importance to addressing the stated goals •Depending on the Town’s direction in adopting a best-of-breed applications strategy the Applications (Acquisition) dimension will require greater development •Given the limited IT capacity within the organization today, and the level of investment and effort that will be required to achieve the future state maturity, a progressive approach is recommended within the operating model. •Overall, the most significant shifts will be required within IT Governance and Infrastructure, which are the traditional areas that require development within emerging organizations Town of Tillsonburg - IT Strategy Review (DRAFT) 50 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications IT Governance Findings Current State Rank Implications Strategy and Architecture •New investment decisions are impacted by the current outdated IT architecture. System compatibility and integration must be considered prior to acquiring newer IT equipment that may not be compatible with the existing “aging” computers •There is limited executive/Councilor level buy in for core IT initiatives •IT planning is not formalized and consistent across departments. •Core IT support is provided by the County with limited IT management skillsets at the Town level •Short term visibility / horizon •Lack of alignment on investments and direction when it comes to technology •Limited ability to align IT with strategic business needs •Limited ability to enforce compliance with strategic decisions Initial Mature Processes •IT processes have not been defined by the Town. Currently reliant on County maintenance processes •Process documentation is either non-existent or inconsistent •Limited continuous improvement initiatives due to lack of IT governance body •Lack of process definition could lead to inefficiency, and redundancy •Responsibilities across working groups become unclear •Limited ability to measure and evaluate performance Initial Mature Policies and Procedures •Increased financial and operating risks where procedures and policies are not existent or followed Initial Mature •Lack of existing documented policies and procedures regarding the Town’s IT environment such as password policies, computer usage, data retention, record management, backup schedules, privacy and confidentiality, information disclosure etc. 41 Town of Tillsonburg - IT Strategy Review (DRAFT) 51 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications IT Governance Findings Current State Rank Implications Project Management •Formalized structure for IT project management has not been designed •Lack of formalized project management best practices or training •Project management tools and methodologies are not standardized •Centralized PMO group is not defined at the Town •Limited ability to measure true costs and performance •Limited ability to improve performance •Lack of holistic project oversight can lead to duplication of effort, and increased timing and resourcing risks. Performance Management •Lack of formal metrics exist to track IT and systems performance •Limited ability to understand baseline, evaluate performance and instill continuous improvement objectives Continuous Improvement •Limited ability to implement continuous improvement as there is a lack of defined metrics to monitor •Continuous improvement of business processes has not been part of the current IT service model •Limited ability to improve performance over time •Potential for suboptimal performance Initial Mature Initial Mature Initial Mature •IT planning is not formally performed. IT budget allocations are performed by Councilors •There is no process to scope and prioritize IT related small/medium/large projects •Lack of foresight can lead to only short-term consideration of technology needs •Limited understanding of the holistic IT project portfolio across the organization •Initiative dependencies, constraints, risks, costs, impacts, etc. are not well understood Initial Mature Project Prioritization 42 Town of Tillsonburg - IT Strategy Review (DRAFT) 52 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications Business Applications (Internal/External) Findings Current State Rank Implications Define •Individual users within each department engage in defining requirements and acquiring systems from multiple vendors. •In some cases Management is unaware of work being undertaken in the business area •Limited current-state process documentation exists •There is no central repository of project plans, requirements, application/system inventory, business cases and other related documentation •Poor definition could result in applications that are suboptimal and miss-prioritized Initial Mature Design •Business users conduct application acquisition decisions for small/niche solutions. There is no repository to consult to determine if desired applications are already bought and are being utilized. There is also no communication among departments to determine if desired applications are being utilized. •There is no established IT process to determine the needs of functional areas and conduct application acquisition in a cost- effective manner to meet broader business needs. •Lack of holistic architecture planning could lead to an unsustainable and piecemeal solution with underestimated costs (i.e. integration, support, etc.) •Integration points may not be well articulated/architected causing duplication of efforts, inability to execute upgrades according to plan, etc. Initial Mature Acquire / Enhance / Develop •Application support is driven based on County IT or vendor support •Inconsistent technical documentation for existing applications; some SLAs are not formalized or documented •Evaluation of the current environment and application updates and roadmaps have not been developed •Systems have not been upgraded and upgrade plans are not in place •Increased risk to data integrity due to complexity of interface environment •Inefficient use of staff time without appropriate technical guidance documentation Initial Mature 43 Town of Tillsonburg - IT Strategy Review (DRAFT) 53 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications Application Development Internal / External Findings Current State Rank Implications •No information was provided on testing of systems Deploy •Lack of formal impact review for changes and new deployments due lack of functional process maps •Lack of training to functional users of new features/application changes •Each business unit has its own set of applications that may be used for individual department-specific purposes •The Town runs canned versions of applications •Potential for disruption to users as they are not familiar with new capabilities and impacts on their day to day roles •Insufficient traPotential for disruption to users as they are not familiar with new capabilities and impacts on their day to day roles •ining leads to poor user experience •Gap in determining new system functionality and determining impact on business processes Initial Mature Test 44 Town of Tillsonburg - IT Strategy Review (DRAFT) Initial Mature •System and application upgrades may introduce issues if structured testing is not done 54 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications Systems Management Processes Findings Current State Rank Implications Service Desk / Problem Management •County of Oxford manages and provides IT support to Town employees. The Town purchases the equipment and infrastructure but allows the County to manage it •Formal SLA’s are not in place, instead high level objectives have been established by IT •Business application support is often constrained by County IT availability and resourcing •There is no on-site County IT support group at the Town of Tillsonburg •Impacted ability to measure performance and track issue resolution •Reduced ability to accurately track support needs and volumes •Users are unaware of the process for problem management, support, SLA’s, etc. Initial Mature Asset Management •Lack of an asset management software or plan •Inventory is informally tracked using excel (not a complete and accurate list); not a formalized process •The Town owns all IT infrastructure and assets but outsources IT service management to the County •Potential risk for increased costs when renewing licenses •Potential impact on ability to acquire assets most suited to Town functional needs if constrained by joint-purchasing agreement with Region Initial Mature Change Management •Some communications around impending outages / changes is provided, but actual change management is not fully developed •Lack of appropriate user buy-in and adoption •Potential for service interruptions and risk exposure •Inconsistent levels of IT performance Initial Mature Continuity and Disaster Recovery (DR) Initial Mature 45 Town of Tillsonburg - IT Strategy Review (DRAFT) •Lack of a Business Continuity/Disaster Recovery Plan (BC/DRP) •Out of date systems and software •Some systems may not be recoverable after failure •Potential risk for significant downtime, business interruptions and increased cost due to IT environment (i.e. network, server, computer, data center) unavailability due to disaster situation(s). 55 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications Systems Management Processes Findings Current State Rank Implications Security •Data integrity and security is an issue for some manual interface points between applications (e.g. manually downloading data and re- entering to Great Plains) •An information security policy is not in place at the Town •Password policies are not established for the various applications •Lack if system updates and patching exposes systems due to vulnerabilities •Appropriate controls may not be in place which can impact provisioning of services •Processes may not be reviewed and updated as the organization evolves •Risk of financial misstatement is increased due to data entry errors. 46 Town of Tillsonburg - IT Strategy Review (DRAFT) Initial Mature 56 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications Systems Management Infrastructure Findings Current State Rank Implications Servers Initial Mature Network Initial Mature Data Centre •Equipment is out of date and needs upgrading, Telephony Initial Mature Storage Initial Mature 47 Town of Tillsonburg - IT Strategy Review (DRAFT) •Approximately 20 servers and 3 RACKS all of which are primarily Windows 2000 and 2003 (some 2008) •The Town will be migrating to Windows 2008 servers post ITS Review •“Forklift upgrades” updates have been made to servers. Updating any more servers will cause them to break. •Some servers are 8-10 years old •There is no server share between County and Town – both are physically segregated (no virtualization) •There are no warranties on existing servers despite them running mission-critical applications •There is no documentation on server application/inventory (i.e. type, location of server etc.) •There are 3 networks centrally managed: 1 Internal network (AD authenticated), 1 network with pre-shared key with internet access, 1 guest LAN with one-time password generation •Standard Cisco WLC2504 is being run •Wireless access points have been setup at various Town sites for constituents (i.e. community center, Museum etc.) •Lack of a formalized complete network topology/map •BCM400 phone lines are currently used with 4.2.0.2.O3E software •There are 64 IP sets and 30 analog phones which range from11-20s to 72-16s and 72-08s •Currently PBX interface - the Town is planning to upgrade to more unified communication (upgrades to be done by 2015) •There are concerns around telephone volume configurations •The Town is experiencing constraints for server storage and disk space capacity (frequent server crashes). A $30,000 SAN (12 TB) was purchased in 2010 which has never been used. •Servers are 20GB, but 2 TB is used •Server unavailability due to frequent crashes and over exceeding capacity result in significant downtime and increased costs •Lack of adequate and complete server documentation and metrics hinder the Town’s ability to plan IT investments •Risks around single internet connection failure disrupting business operations •Higher likelihood of equipment failure •Volume configuration issues resulting in service disruptions •Lack of storage resulting in issues relating to duplication, version control etc. •Risk of data loss and impact on user ability to complete job tasks •Inefficient spending 57 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications Systems Management Infrastructure Findings Current State Rank Implications Backup Initial Mature 48 Town of Tillsonburg - IT Strategy Review (DRAFT) •Inefficient backup tape system (takes 2-3 day to do full monthly backup) •Lack of policies/procedures on backup schedule, backup frequency, backup storage etc. •Backups are not performed for all applications and systems (i.e. Collections SW) 58 © Deloitte LLP and affiliated entities. IT Current State of IT and Implications Organization Findings Current State Rank Implications Org. Structure / Roles / Responsibility Initial Mature Skills & Resources Initial Mature Training and Development •A lack of training for business end users can result in inefficient use of Town applications. The full functionality of applications may not be leveraged resulting in added manual effort Sourcing (Resources) 49 Town of Tillsonburg - IT Strategy Review (DRAFT) •As the Town’s IT is managed by the County of Oxford, the Town does not have an in-house corporate IT group. However, the Chief Administrative Officer and Director of Development and Communication Services oversees Town IT initiatives •County has 8 IT Support Technicians •Roles and responsibilities for certain tasks are not clearly defined between County IT and the functional groups such as report creation. •There is a concern that County IT can not manage the added responsibility of providing IT support to all of the Town employees along with maintaining County systems •As the Town continues to add niche applications the ability to provide application support will become strained •Limited training to functional users on applications •The training and development of County IT staff is a function of the County with limited/no involvement from the Town •Resourcing of IT staff is the responsibility of the County of Oxford N/A N/A •Potential turnaround time due to County IT’s unfamiliarity of Town IT systems and overall IT environment leading to increased costs. It is noted that there is now a full time contract staff person dedicated to the Town’s IT issues which will mitigate this risk. •No immediate concerns were identified Initial Mature 59 60 © Deloitte LLP and affiliated entities. Appendix A Town IT Role Definition 51 Town of Tillsonburg - IT Strategy Review (DRAFT) 61 © Deloitte LLP and affiliated entities. Town IT role definition •As recommended in this report the Town should clearly outline IT accountability at a senior position within Town management. •The role can be defined at two ends of a spectrum based on the level of contract management, oversight, and in-house controls required. •The responsibilities may be 52 Town of Tillsonburg - IT Strategy Review (DRAFT) “IT Leader” •Set IT strategic direction and execute on plans •Develop and implement policies and procedures for IT department •Assess business requirements across organization; help the organization in understand technology solutions and options •Determine the best use of technical resources •Develop and track IT budget •Conduct talent management and oversight •Serve as primary contact with outside vendors •Maintain security and privacy of information systems •Oversee all back-up and disaster recovery plans •Experience requirement: 8 – 10 years in IT •FTE requirement: 1FTE •Expected level in organization: Senior Management/Executive “IT Steward” •Act on behalf of the organization in crafting and managing third party contracts (including performance against established service level agreements (SLAs)) •Manage terms and conditions on an ongoing basis •Liaise with business areas to ensure needs are being met •Develop and track IT budget •Participate in setting general IT direction •Experience: 8-10 years in management role •FTE requirement: 0.25 - 0.5FTE •Expected level in organization: Senior management preferred; Department manager may be an option where strong skillsets are available. Low complexity IT environment Low core business reliance on IT Highly complex IT environment High core business reliance on IT Appendix A 62 © Deloitte LLP and affiliated entities. Appendix B Detailed benchmarking results 53 Town of Tillsonburg - IT Strategy Review (DRAFT) 63 © Deloitte LLP and affiliated entities. Benchmarking results 54 Town of Tillsonburg - IT Strategy Review (DRAFT) Town of Tillsonburg ITS Benchmarking Analysis Current IT Operations Services:In-house In-house and Outsourced In-house In-House Outsourced Outsourced Provider:-Xylotek Solutions --County of Oxford % of Overall IT and Operating Budget allocated to Outsourcing costs:-40% of Operating Budget (Est.)--N/A Total Management Staff:1 1 1 1 1 Total IT Staff:3 -3 3 0 IT Staff as a % of Total Employees:1.14%1.00%2%1.38%N/A Total IT Operating Budgets: 2011 $456,000.00 $588,433.00 $326,620.00 $457,017.67 $234,435.00 2012 $491,560.00 $610,314.00 $397,990.00 $499,954.67 $252,380.00 2013 $525,180.00 $680,453.00 $488,710.00 $564,781.00 $304,033.00 2013 operating budget/constituent $17.51 $22.68 $12.86 $17.68 $30.40 Total IT Capital Budgets: 2011 $87,000.00 $287,025.00 $448,000.00 $274,008.33 $99,424.00 2012 $65,000.00 $267,025.00 $276,000.00 $202,675.00 $80,000.00 2013 $72,000.00 $291,140.00 $261,000.00 $208,046.67 $120,000.00 (forecast) 2014 $87,500.00 $297,535.00 $268,000.00 $217,678.33 $125,241.00 (forecast) 2015 $90,000.00 $300,000.00 $139,000.00 $176,333.33 $140,000.00 (forecast) 2016 $90,000.00 $300,000.00 $265,000.00 $218,333.33 $60,000.00 (forecast) 2017 $95,000.00 $305,000.00 $178,000.00 $192,666.67 $60,000.00 (forecast) 2018 $100,000.00 $310,000.00 -$205,000.00 $120,000.00 2013 capital budget/constituent $2.40 $9.70 $6.87 $6.32 $12.00 Total IT Operating Spend as a % of Total Operating Budget:1.41%1.50%0.89%1.27%2.45% Total IT Capital Spend as a % of Total Capital Budget:0.86%1.90%2.37%1.71%15.51% Primary Applications: Finance/GL Microsoft Great Plains Microsoft Great Plains Microsoft Great Plains MS Great Plains Great Plains HR and Payroll InfoHR/Ceridian Microsoft Great Plains InfoHR/Ceridian InfoHR/Ceridian Ceridian Inview Ceridian Insync City Wide Solutions Weave Corp. Constituent facing (POS, recreation programs, etc.,)CLASS CLASS (ActiveNetwork)CLASS CLASS CLASS Moneris payment Citi Serve Amanda Builiding Permitting System Harris City Website Parking system Work and Asset Management Public Sector Digest City Wide CityWide Solutions Average Tier I Municipality Town of TillsonburgTown of Orangeville City of Stratford City of Woodstock CityWide Solutions/CRM Work Tech * Operating budget/constituent is based on total population numbers retrieved from publically available sources. Appendix B 64 © Deloitte LLP and affiliated entities. Appendix C Detailed survey results 55 Town of Tillsonburg - IT Strategy Review (DRAFT) 65 © Deloitte LLP and affiliated entities. Internal Survey Results - Summary 56 Town of Tillsonburg - IT Strategy Review (DRAFT) Survey participants by Departments Survey participants by Role Please identify your department Please identify your role level Commonly used IT Applications How important are the following applications to complete your responsibilities? Appendix C 66 © Deloitte LLP and affiliated entities. IT Dependency Percentage of manual work Overall, how dependent are you on Information Technology for your job? Overall, what percent of your work is manual (i.e. completed without the use of computers) IT Satisfaction How satisfied are you with the adequacy, functionality and sufficiency of the computer systems and general IT infrastructure provided to you? IT Information How informed are you about the Town’s IT systems, operations and usage policies and procedures? Internal Survey Results – Summary Cont’d 57 Town of Tillsonburg - IT Strategy Review (DRAFT) Appendix C 67 © Deloitte LLP and affiliated entities. Phone calls related to information already available on website Do you receive phone call questions for information that could be answered by the Town’s online website resources (i.e. Lottery licenses, property taxes)? Timely notification of IT-related notifications Do you receive timely notifications of technology maintenance? Internal Survey Results – Summary Cont’d 58 Town of Tillsonburg - IT Strategy Review (DRAFT) Appendix C 68 © Deloitte LLP and affiliated entities. Common IT-related issues What type of IT-related problems do you most commonly face? Frequency of issues Method of initiating technical support transaction How often do you have technical problems (i.e. computer crashes, freezes, etc.)? How do you initiate a technical support transaction? Internal Survey Results – Summary Cont’d 59 Town of Tillsonburg - IT Strategy Review (DRAFT) Other: -Access restrictions (1) -Inability to add/update software without admin permission (1) -Low telephone volume (1) Other: -All of the above (1) -Inform Supervisor (1) Appendix C 69 © Deloitte LLP and affiliated entities. Issue Reporting Time (hours) Issue Resolving Time (hours_ On average, how much time do you spend resolving technical issues (including rebooting, contact IT for support)? On average, how long does it take for your issue to be resolved by IT ? IT Group’s management of issues How satisfied are you with the following? Internal Survey Results – Summary Cont’d 60 Town of Tillsonburg - IT Strategy Review (DRAFT) Appendix C 70 © Deloitte LLP and affiliated entities. Internal Survey Results – Summary Cont’d 61 Town of Tillsonburg - IT Strategy Review (DRAFT) IT tool functionality satisfaction Do the tools that are available to you provide you with the necessary functionality to be productive in your role? Document Accessibility Are any of the following documents available to you? Computer/Software Training Have you been given any software or computer training in the last year? Appendix C 71 © Deloitte LLP and affiliated entities. External Survey Results – Summary 62 Town of Tillsonburg - IT Strategy Review (DRAFT) Survey participant age group (years) To what age group do you belong? Ease of access to Town-related information online How easy is it to access Town-related information online? Commonly used online services Which online services do you use on the Town's website? Appendix C 72 © Deloitte LLP and affiliated entities. External Survey Results – Summary 63 Town of Tillsonburg - IT Strategy Review (DRAFT) Ease of access to Town’s financial information online How accessible are the Town's public financial information such as audited financial statements, quarterly reports, financial information return etc.? Level of comfort with Town’s management of personal data How comfortable are you with the Town's management of your personal and confidential data? Level of comfort with providing personal data How comfortable are you with providing the Town with your personal data? Appendix C 73 © Deloitte LLP and affiliated entities. Personal data collection Do you believe your personal information is retained securely by the Town? Feasibility of live webcast of Town’s Council meeting Would you benefit from a live webcast of the Town's Council meetings? Feasibility of an online live Q/A forum Would you benefit from a live online question/answer forum in which you can speak with a Councilor? External Survey Results – Summary 64 Town of Tillsonburg - IT Strategy Review (DRAFT) Appendix C 74 © Deloitte LLP and affiliated entities. External Survey Results – Summary 65 Town of Tillsonburg - IT Strategy Review (DRAFT) Method of registering for programs and evens How do you register for programs and events in your community? Method of obtaining information How do you obtain information relating to building (residence, lot, etc.) inspection and encroachment permits, lot grading, engineering standards and specifications etc.? Preferred method of being contacted How would you prefer to be informed of important notices and messages? Appendix C 75 © Deloitte LLP and affiliated entities. Appendix D Functional Gap Summaries 66 Town of Tillsonburg - IT Strategy Review (DRAFT) 76 © Deloitte LLP and affiliated entities. Functional Gap Summary: Airport Town of Tillsonburg - IT Strategy Review (DRAFT) 67 Process areas Systems in use Process area description Key current state gaps Financial •CLASS POS (used to process payments and track payments due) •Microsoft Excel •Great Plains (for budget management) •Key financial sources of revenue include: Fuel charges, land leases for agriculture and hangers, parking charges for airplanes, maintenance fees, and property tax. •All flight-related transactions including fuel inventory and sales (liters of gasoline, date of purchase etc.) are manually logged and monitored in excel, causing difficulty in updating, maintaining version control , duplication etc. •As customer accounts in CLASS are synchronized between parks and recreation and the airport, a credit on recreational program may be applied against airport fees. Client Relationship Management •ACT (SAGE)CRM •Customers include recreational pilots and the general public that pay land lease fees, hangar fees, maintenance fees, agricultural fees, maintenance fees and/or property tax. •Customer contact information is stored in a separate CRM tool (ACT) which does not integrate or feed into CLASS POS. CLASS manages land leases, hanger fees, agricultural fees, maintenance fees etc. Customer information must be manually re-keyed into CLASS from ACT in order to setup payment accounts. Voice Communication •Town telephony •There is one phone line which is used for telephone and fax purposes to provide customer service. •Lack of an Automated Voice Response (ACR) system results in general inquiries being routed to the Manager, Town of Tillsonburg Airport as opposed to switchboard/reception. •Lack of a separate fax machine causes phone lines to be unavailable. Currently, one phone line is used for both telephony/fax purposes. Assets and Equipment •No application •Airport assets include aircrafts, facilities (i.e. runways, hangers etc.) and land. •The hour meter systems in the aircrafts are not integrated or connected to any systems that would allow for automated tracking or monitoring of engine time and in-air hours. As aircrafts are rented to recreational pilots, the hour meter systems serve the purpose of logging time (hours) that pilots spend in the air. There are no spare workstations or laptops for the pilots to use when they are at the Airports. Pilots need to check weather conditions, notam information (no fly zones) and flight plans prior to take-off. Currently, the pilots use the single standalone desktop that is also utilized by the Airport staff at the Airport. •The current laptop used to run ACT (CRM tool) does not meet minimum system requirements and suffers frequent performance issues when the application is in use. Data Management •Microsoft Excel •Microsoft Word •Microsoft Office is used for flight data logging, monitoring and reporting purposes. •All flight-related transactions including fuel inventory and sales (liters of gasoline, date of purchase etc.) are manually logged and monitored in excel, causing difficulty in updating, maintaining version control , duplication etc. •All reporting (i.e. memo, notice, report creations) is performed in Microsoft Word. Misc. •Lotus Notes (general email) •N/A •Lack of weather information on Airport’s website causes Pilots to manually call in to the Airport to inquire about Tillsonburg weather conditions. 67 Appendix D 77 © Deloitte LLP and affiliated entities. Functional Gap Summary: Building and Planning Town of Tillsonburg - IT Strategy Review (DRAFT) 68 Process areas Systems in use Process area description Key current state gaps Financial •CLASS POS (payments processed at Customer Service Center) •Key functional sources of revenue include building permit fees, application fees, inspection fees etc. •Lack of a building permit payment tracking system. Currently, a manual inspection of paper work at the Customer Service Center is required to determine if a permit has been paid for prior to issuing the permit. Client Relationship Management •County’s GIS (used for building permit and planning purposes) •Key functional areas for GIS include gathering and maintaining geographic and tabular data entry, storage and maintenance, etc. •Inability to take photographs of property/building deficiencies and print reports on-site. •The building permit application in-take/processing process is paper-based resulting in an inability to track the status of the application. •Inability to provide customers/public with information on-site during inspections. All information is currently conveyed via inspection reports. Voice Communication •Town telephony •N/A •N/A Assets and Equipment •County’s Land Related Information System (LRIS – used for tracking buildings in County’s GIS) •Photocopier/Scanner •Key functional areas including building tracking, building code compliance, disability access and assuring an established level of building safety and health for the public who purchase, own, build or use buildings and other structures etc. •All property drawings and files are currently paper-based and stored in physical files and/or H drive or Domino documents. •Lack of mobile equipment to assist with on-site inspections of the building for building code compliance (i.e. tablets). Currently, notes are hand written on-site and manually keyed into systems once staff are in the office. •Inability to scan large high-level planning project documents using the existing photocopier scanner machine. •Aging and outdated computer equipment resulting in unavailability of network and applications. The computer freezes and shuts down resulting in lost productivity of 1 hour/week. •Users noted server crashes due to maximum storage capacity being reached. •Server room overheats on a regular basis. The overheating alarms go off at least once a week. Data Management •Domino (document management system) •Critical documentation to be retained includes building planning documents, applications for building permits, certificates, zoning information etc. •Lack of a central data repository for planning documents (for sub-divisions and related items). Currently, records can be stored in the H drive or Domino documents resulting in difficulty in updating, maintaining version control , duplication etc. •There is no link between customer correspondence and permit documents which creates extra work when following up on status of permits etc., Misc. •ACR (Active Citizen Response – helpdesk) •ACR is used as a tracking system used to keep track of the number of inspections. •Lack of a central repository of complaints and helpdesk issues. Complaints can be administered via paper on-site due to lack of access to ACR. Additionally, ACR does not integrate and/or feed into County’s GIS or LRIS. •There are concerns around the long turnaround time for IT to resolve issues logged via ACR (average of 3+ hours). 68 Appendix D 78 © Deloitte LLP and affiliated entities. Functional Gap Summary: Cemetery Town of Tillsonburg - IT Strategy Review (DRAFT) 69 Process areas Systems in use Process area description Key current state gaps Financial •CLASS POS (used to process payments and track payments due) •Stone Orchard (used for deceased information billing) •N/A •N/A •As billing is also performed on Stone Orchard, all financial transactions have to be manually re-keyed from CLASS (POS) to Stone Orchard resulting in process delays and risk of data entry error. Client Relationship Management •Stone Orchard (used for deceased information management) •Key functional areas include providing public with grave location information, deceased location coordinates, memorial information etc. •Manager, Tillsonburg Cemetery is unable to assist customers and provide information (i.e. grave location of a deceased individual) during computer downtime. Currently, staff write down notes and calls them back when computers and applications are functional again. Voice Communication •No application •N/A •N/A Assets and Equipment •No application •N/A •Aging and outdated computer equipment resulting in unavailability of network and applications. The computer freezes and shuts down once a week. This results in slow processing speed and regular issues with network connectivity. Data Management •Stone Orchard (used for deceased information management) •Key functional areas include maintaining grave coordinates, memorial scheduling and booking, deceased database tracking etc. •N/A Misc. •Lotus Notes (general email) •N/A •There are concerns around the long turnaround time IT staff to resolve issues via ACR (average of 24-48 hours). •Lack of IT system user training provided to Staff using computer systems and applications such as Stone Orchard. 69 Appendix D 79 © Deloitte LLP and affiliated entities. Functional Gap Summary: Finance Town of Tillsonburg - IT Strategy Review (DRAFT) 70 Process areas Systems in use Process area description Key current state gaps Financial •Great Plains (used for budget management) •InView (used for payroll management) •Harris (used for hydro billing purposes) •Microsoft Excel •Key functional areas include billing, accounts receivable, accounts payable, forecasting and budgeting, reconciling, financial transactions and journal entries. •Prior year actuals of the budget have to be manually keyed in Great Plains due to lack of a auto roll-over functionality. This results in the budgeting/forecasting process to be an average of 1-2 weeks excluding the departmental review of the prior year actuals (approx. 1 month). •Manual upload to Great Plains of departmental budget information. Currently, all departmental budget files are condensed into 1 master excel file which takes approx. 1-2 days. The master excel is subsequently uploaded to Great Plains. •Data from Harris (billing application) has to be downloaded to excel. The electronic excel copy is sent to County as an invoice while the hard-copy of the excel is sent to Accounts Payable to process payment. •There are concerns around the high number of manual journal entries. Many other systems do not integrate with Great Plains and hence require manual upload to Great Plains. •Two separate accounts are maintained for Hydro resulting in increased journal entries (including recurring journal entries) for Tillsonburg Hydro. •Lack of an automated process to identify, manage and administer recurring journal entries. Client Relationship Management •No application •N/A •N/A Voice Communication •Town telephony •N/A •N/A Assets and Equipment •Microsoft Excel (used for tracking, data analysis, asset management etc.) •N/A •Microsoft Excel is used to track and monitor Town assets and perform data analysis for cost/budgeting related purposes. •Aging and outdated computer equipment resulting in unavailability of network and applications. The computer freezes and shuts down once a week. This results in slow processing speed and regular issues with network connectivity. •There is a lack of a defined asset management plan or multi-year capital budgeting across the Town. Data Management •Microsoft Excel (used for tracking, data analysis, asset management etc.) •N/A •There are concerns regarding the duplication of information. Information is stored on various applications and softwares causing difficulty in updating, maintaining version control , etc. •Microsoft Excel is used to track all full-time employees that charge indirectly to in-departments. Misc. •Lotus Notes (general email) •ACR (Active Citizen Response – helpdesk) •N/A •There are concerns around the long turnaround time of County’s IT staff to resolve issues via ACR (average of 24-48 hours). •Lack of IT system user training provided to Staff using computer systems and applications such as Stone Orchard. 70 Appendix D 80 © Deloitte LLP and affiliated entities. Functional Gap Summary: Clerks Office Town of Tillsonburg - IT Strategy Review (DRAFT) 71 Process areas Systems in use Process area description Key current state gaps Financial •No application •N/A •N/A Client Relationship Management •No application •N/A •N/A Voice Communication •Town telephony •All phone systems are on voice over IP (VoIP). •Clerks Office staff regularly experience volume issues when interacting with customers on the phone. A hardware upgrade has been completed and performance is being monitored by the County. Assets and Equipment •TeraView (provincial land registry system) •Key asset management responsibilities include identifying property owners, property registration information for land registry, mortgage information etc.. •Although installed, TeraView is not supported on Town’s computers. Clerks have to rely on Lawyers to obtain land registry information, resulting in additional costs. Additionally, there is a cost to use the TeraView program. •Aging and outdated computer equipment resulting in unavailability of network and applications. The computer freezes and shuts down 1-3 times a week. This results in slow processing speed and regular issues with network connectivity. •There are concerns around the lack of computer equipment such as laptops for Clerks Office staff. For example, One of the Clerks is currently using an outdated desktop. Additionally, there is no computer in the Council Chambers that would allow for recording meeting minutes and projecting information (via projectors) resulting in manual minute-taking and record management. Data Management •Domino* (document management system) •SuiteResponse eGenda (agenda management system) •Microsoft Office 2003 •Domino* (document management system) •SuiteResponse eGenda (agenda management system) •Microsoft Office 2003 •Key functional duties include creating and sending agendas to Councilors. •Agenda documents in eGenda (within Lotus Notes) require manual printing and scanning into Domino document management system. •Inability to process new Microsoft Office documents (.docx) due to lack of an updated Microsoft Office software. •The planning files on Domino are inaccessible by majority of the Town’s staff. The clerks have full access to publish and retrieve planning documents in Domino. However, Town staff do not have access to it and require Clerks’ assistance to retrieve planning documentation in Domino. •All planning files and records are paper-driven and physically stored in several different locations across the Town. Electronically, they are located on several different drives (G drive, town server, Domino etc.) resulting in difficulty with version control, duplication, navigating and tracking documents etc. •Lack of a Disaster Recovery (DR) plan for electronic and physically stored records and documents. Currently, the Clerks have no knowledge of whether electronic or physical documents are backed-up. •Lack of security controls around the monitoring and tracking of users with access to both electronic and physical files (i.e. missing files, thefts etc.). * Domino document management system is in the process of being replaced by Laserfiche. 71 Appendix D 81 © Deloitte LLP and affiliated entities. Functional Gap Summary: Clerks Office Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 72 Process areas Systems in use Process area description Key current state gaps Misc. •Lotus Notes (general email) •ACR (Active Citizen Response – helpdesk) •N/A •Difficulty in using ACR as staff find it difficult /time consuming to navigate screens and complete all required fields. •There is difficult in accessing information and navigating through the Town’s website. •Lack of IT system user training provided to staff using computer systems and applications. 72 Appendix D 82 © Deloitte LLP and affiliated entities. Functional Gap Summary: Communications/Marketing Town of Tillsonburg - IT Strategy Review (DRAFT) 73 Process areas Systems in use Process area description Key current state gaps Financial •N/A •N/A •N/A Client Relationship Management •N/A •Key functional areas include website development, content management, public speaking and relations, marketing and advertising. •Two separate websites are maintained: County and Town. •N/A Voice Communication •Own telephony •N/A •The Development & Communications Administrator/Deputy Clerk regularly experiences volume issues when interacting with customers on the phone as callers are unable to hear her. Although ACRs were lodged and the County’s IT investigated and performed fixes, the issue is continuing to reoccur and has not been effectively resolved. Assets and Equipment •Microsoft Office •N/A •Aging and outdated computer equipment resulting in unavailability of network and applications. This results in slow processing speed and regular issues with network connectivity. There is a “no shut down” policy as rebooting requires 20+ min. Data Management •Microsoft Office •Dropbox (file sharing) •N/A •There are difficulties around transferring and sharing files and images from Marketing and Partnerships Officer’s iMac to Town computers using Windows. Lotus Notes is not installed on the iMac as it is not compatible. As such, files and images have to be shared with Town employees using Dropbox. The iMac does not have Town’s network access. Misc •Lotus Notes (general email) •Joomla (used for website content management) •iMAC computers (used for video and design work) •N/A •Lack of an enforced mandate to building websites for Town departments such as Museum. •Town website lacks intuitive search capabilities and uploading features that allow users/customers to upload documents online to the Town. Additionally, the information on the Town and County calendars are inconsistent and do not interact with each other. •There are issues are the use of Internet Explorer (IE) and its compatibility with the website content/format. Currently, an old version of IE is used by the Town staff. •Lack of remote VPN access hinder the Development & Communications Administrator/Deputy Clerk’s ability to perform certain responsibilities such as typing meeting minutes and agendas. •Difficulty in using ACR as staff find it time-consuming. There are certain fields in ACR that are forced (requires entry) but are not necessary relevant to the complaint. Additionally, there is a concern regarding whether all issues via ACR even addressed and reviewed by the County. 73 Appendix D 83 © Deloitte LLP and affiliated entities. Functional Gap Summary: Economic Development Town of Tillsonburg - IT Strategy Review (DRAFT) 74 Process areas Systems in use Process area description Key current state gaps Financial •No application •N/A •N/A Client Relationship Management •County’s GIS (used for building permit and planning purposes) •ACT (CRM - customer/content relationship management system) •Key functional areas for GIS include gathering and maintaining geographic and business data. •Key process areas include business development, Town sales prospecting, etc. •Lack of fillable forms online that will allow public to fill and submit information. Currently, hard-locked PDF files are sent out to the public by Town. Voice Communication •No application •N/A •N/A Assets and Equipment •Microsoft Excel •N/A •Lack of general coordination and tracking, especially in the tender approval process due to a limited institutional memory. Currently, it is difficult to track the stage in which a building approval process is at. Building documents are not centrally monitored or tracked to determine building history. Data Management •ACT (CRM - customer/content relationship management system) •Domino (document management system) •Economic and business development notes, correspondence and documents are stored, tracked and maintained in ACT(CRM). •Lack of a central data repository for documents (tender documents, customer contacts, municipal contacts etc.). Currently, records can be stored in the corporate server as PDFs, website, ACT or outlook resulting in difficulty in updating, maintaining version control , duplication etc. •There is difficulty sharing planning and development information with/from and interacting with other departments such as Engineering, Clerk, Hydro and Building/Planning. Sharing documents involve contacting several departments leading to time-consuming and unnecessary interactions. •Limited data trending and tracking as it is only performed on a as-needed basis by Manager, Economic Development. •Domino document management system do not contain full information due to supposed legal reasons. Only key documents are maintained. Other sources have to be scouted for detailed documents. 74 Appendix D 84 © Deloitte LLP and affiliated entities. Functional Gap Summary: Economic Development Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 75 Process areas Systems in use Process area description Key current state gaps Mi s c . •General email •Economic and business development notes, correspondence and documents are stored, tracked and maintained in ACT(CRM). •Economic Development is also responsible for maintaining the Airport structure. •Lack connectivity and interaction between ACT/CRM, email and BlackBerry. •Lack of a online forum for the Economic Development department. Currently, Economic Development is hosted by the Municipality. There is a need for a separate website for Economic Development. •Town staff make certain commitments to investors, however, when these Town staff depart the organization, Investor commitments are not respected by incoming new hires. 75 Appendix D 85 © Deloitte LLP and affiliated entities. Functional Gap Summary: Engineering Town of Tillsonburg - IT Strategy Review (DRAFT) 76 Process areas Systems in use Process area description Key current state gaps Fin a n c i a l •Great Plains (for budget management) •Key functional tasks include tracking capital project funding and engineering accounting as GL accounts are setup by projects. •Human labor is not tracked against projects (lack of project metrics). •No tracking of labor costs as there has never been a need for it. Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •County’s GIS (used for building permit and planning purposes) •N/A •N/A Vo i c e C0 m m u n i ca t i o n s •No application •N/A •N/A As s e t s a n d Eq u i p m e n t •JMR (used for traffic counting) •*WorkTech (asset management system) •Key functional areas include traffic counting, maintaining safe infrastructure, engineering repairs, piping and municipal infrastructure equipment etc.). •Aging and outdated computer equipment resulting in unavailability of network and applications. This results in slow processing speed and regular issues with network connectivity. There is a 1hr+ processing time for applications such as Lotus Notes and AutoCAD to open. •Inability to carry laptops on-site for sidewalk inspections. Currently, a strap is worn in which the laptop is physically placed and worked on. However, the strap has broken several times in the past. •Laptop batteries last a few hours leading to constant charging and inability to travel off-site for long periods of time. •Lack of communication between Engineering and the purchasing of assets leading to insufficient assets being purchased that do not get utilized by Engineering. Da t a Ma n a g e m e n t •Plotters (used to scan engineering drawings – stored on server) •N/A •All inspection schedules and work plans are paper-based as they are logged in a single log book leading to difficulty in data analysis, misplacement, theft etc. * The Engineering department does not produce work order from WorkTech. It is currently used for asset management purposes. However, WorkTech does has the capability to track the type of repairs requires along with its cost which is monitored by Engineering. The Engineering department is in the process of potentially replacing WorkTech with MarMak, an engineering GIS solution which incorporate designing, engineering, mapping capabilities. The County is using CityWorks in lieu of WorkTech. 76 Appendix D 86 © Deloitte LLP and affiliated entities. Functional Gap Summary: Engineering Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 77 Process areas Systems in use Process area description Key current state gaps Mis c . •AutoCAD (used for graphic designing) •EaglePoint (AutoCAD add- on – used for surveying) •Google Earth •SketchUp •MS Silverlight •CivilSuite (used for infrastructure designing) •ACR (Active Citizen Response – helpdesk) •Key functional areas include plan, design, build, and manage Town infrastructure. •Lack of project work plan as it is not broken down into a planning phase, construction phase, development phase etc. A project is considered “one big project” without any coordination of the different stages involved within it. •Engineering staff experience a general feeling of disconnect between Engineering, Finance and Purchasing. •There is general frustration around the items requiring admin rights. Items with admin rights require IT support resulting in time consuming process delays. * The Engineering department does not produce work order from WorkTech. WorkTech has the capability to track the type of repairs requires along with its cost which is monitored by Engineering. The Engineering department is in the process of potentially replacing WorkTech with MarMak, an engineering GIS solution which incorporate designing, engineering, mapping capabilities. 77 Appendix D 87 © Deloitte LLP and affiliated entities. Functional Gap Summary: Facilities Town of Tillsonburg - IT Strategy Review (DRAFT) 78 Process areas Systems in use Process area description Key current state gaps Fi n a n c i a l •InView (web-based - used for time management and scheduling) •Key process areas include time management and scheduling. •InView system lacks certain metrics such as total work that has been allocated to certain individuals (i.e. utilization rates). It currently only display’s user’s availability. •There is a general consensus among the department that tracking cost against specific work orders is not feasible due to the large volume of assets. Additionally, Fleet primarily performs cost tracking against work orders. Currently, Facilities tracks work orders against cost centers. •Lack of deferred maintenance cost knowledge or similar metrics. Cli e n t Re l a t i o n s h i p Ma n a g e m e n t •Microsoft Excel •*CitiView (used for building inspections) •Key process areas include administering and maintaining the building inspection checklists including health and safety. •Service quality issues with firm-issued blackberries, however, only Managers and above receive blackberries at the moment. For example, ACR tickets can only be viewed on blackberries and not closed. Vo i c e C0 m m u n i c at i o n s •N/A •N/A •Lack of secured and reliable communication among Kelly Batt and Facilities staff in the field. Currently, phone/text is used to communicate repair/work orders to staff in the field. There is a radio frequency but it functions within a limited vicinity. As s e t s a n d Eq u i p m e n t •Microsoft Word and Excel (used to maintain work plans, building inspection checklists etc.) •Key functional areas including managing facilities, parks, trails, all Town assets including police and fire services, museum, public works etc. •Lack of an asset management software due to the fact projects get shuffled around and all projects are based on employee availability. •Aging and outdated computer equipment resulting in unavailability of network and applications. This results in slow processing speed and regular issues with network connectivity. It currently takes 25min+ to reboot. •Email servers fail on a frequent basis. There are 3-4 email servers that have failed several times and continue to do so. •There are concerns around computers that are not being used to its full capacity. For example, there is a standalone non-supported computer in the refrigeration room that is not connected to anything in particular. 78 Appendix D 88 © Deloitte LLP and affiliated entities. Functional Gap Summary: Facilities Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 79 Process areas Systems in use Process area description Key current state gaps da t a Ma n a g e m e n t •Microsoft Word and Excel (used to maintain work plans, building inspection checklists etc.) •N/A •All building inspection checklists and documents are scanned and maintained on the G drive. Mi s c . •ACR (Active Citizen Response – helpdesk) •Key functional areas include planning for capital projects, asset management, capital repairs, health and safety, inspection modules etc.). •Lack of formal project/work order planning as the Parks and Facilities Manager delegates tasks to individuals based on her judgment call of user schedules, availability and experience (lack of a capital planning software). •Lack of IT system user training provided to Staff using computer systems and applications such as InView and ACR. •Difficulty in using ACR as staff find it time-consuming. It is delegated to staff based on availability and experience (personal judgment call). Tickets are not closed for weeks/months as it accounts for the parts ordering/receiving process which may take weeks. As such, the total issue duration on the call upon ticket closing inaccurately portrays the total time. 79 Appendix D 89 © Deloitte LLP and affiliated entities. Functional Gap Summary: Taxation and Customer Service Town of Tillsonburg - IT Strategy Review (DRAFT) 80 Process areas Systems in use Process area description Key current state gaps Fi n a n c i a l •Great Plains (for budget and inventory management) •FRX (used for reporting) •CLASS POS (used to process payments and track payments due) •InSync (used for payroll) •InView (used for time scheduling) •Diamond (tax software) •Harris (used for hydro billing purposes) •Key functional areas include budget and inventory management. •Great Plains server capacity issues are experienced on a frequent basis due to data overload resulting in slow network processing. •Great Plains (budget and inventory management) does not support FRX (reporting software). •Existing Harris application version does not support Windows 8. It currently only supports Windows XP leading to compatibility issues. •There are concerns regarding the functionality of the Harris application as staff can not change the date in PAP or modify reports within the application (database issues). •Lack of integration between all tools, especially financial tools. Most tools require a manual download of data which have to be manually entered into Great Plains. •In order to send data from Harris to Great Plains, CLASS has to be used where information must be manually entered in Class, then upload to GP and subsequently to Harris. •There are decentralized budgetary controls as accounts sometimes go into deficits. However, these accounts are monitored on a regular basis. Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •CityServe (used for booking, program billing, program scheduling, receivables and recreational purposes) •Stone Orchard (used for deceased information management) •Key functional areas include recreational program booking, program billing, program scheduling, receivables etc. •N/A Vo i c e C0 m m u n i c a t i on s •No application •N/A •The telephone equipment is outdated and requires updating as it is 10-15 years old. There are minimal call tracking and monitoring options that do not metricize overall number of calls, duration etc. 80 Appendix D 90 © Deloitte LLP and affiliated entities. Functional Gap Summary: Taxation and Customer Service Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 81 Process areas Systems in use Process area description Key current state gaps As s e t s a n d Eq u i p m e n t •*WorkTech (asset management system) •Radix (used for handheld devices in meter reading) •The WorkTech software is not connected to the Great Plains and as such, data has to be manually downloaded from WorkTech and manually entered into Great Plains leading to time-consumption and process delays. •Aging and outdated computer equipment resulting in unavailability of network and applications. The computer freezes and shuts down once a week. This results in slow processing speed and regular issues with network connectivity. It takes roughly 20 minutes to reboot. According to the Tax/Billing Specialist, there are 4 computers, all of which crash 10 times a week. They take roughly 1+ hour to reboot. Additionally, computers freeze 4-5 times a day on average , especially when attempts are made for the documents to be saved. •Servers (SAN) crashes due to SAN maximum capacity being reached. •There are ergonomic issues resulting from the use of headsets for phones as staff work on several different workstations during the day. •Typewriters are highly relied upon to draft marriage licenses, lottery licenses and business licenses. Currently, there is only 1 typewriter. •CLASS printers are outdated and make loud noises leading to employee distraction. Currently, foam is placed underneath the printers to prevent noise. Additionally, printing bills takes approximately12+ hours. •Lack of a printer in the Tax department. •A manual download from Redix handheld has to be performed prior to it being manually uploaded to Harris application. Da t a Ma n a g e m e n t •Microsoft Access (used for querying, reporting and data analysis) •MeterSense (used for meter information retention) •Key data managed includes fleet data, facilities data, roads asset data, licenses etc. •There are concerns regarding the backup and confidentiality of data that is stored physically and electronically. Currently, all information is primarily stored on G drive and information on G drive is accessible to all employees. Mi s c . . •ACR (Active Citizen Response – helpdesk) •Lotus Notes (general email) •N/A •The ACR is not connected with the phone, as such, all complaints via phone (or other communications such as email) have to be manually inputted into ACR. •Reporting capabilities in ACR are not utilized to its full extent. •Lack of an Disaster Recovery/Business Continuity Planning (DR/BCP). •Outdated application versions result in IT-related application and computer crashes. * WorkTech is in the process of being replaced by CityWorks in October/November 2013. 81 Appendix D 91 © Deloitte LLP and affiliated entities. Functional Gap Summary: Roads Town of Tillsonburg - IT Strategy Review (DRAFT) 82 Process areas Systems in use Process area description Key current state gaps Fin a n c i a l •InView (used for payroll/time scheduling) •Key functional areas include fuel management, fuel tracking, etc. •Glitches are experienced regularly with the InView application especially when staff are swiping their cards. Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •Grey Island (GPS system – only used in the Winter) •Key process areas include road patrolling and inspections, road maintenance, sidewalk/tree maintenance, potholes and snow removals. •Lack of archiving and reporting capabilities in Grey Island leading to unnecessary manual effort. Road staff are in the process of scouting new vendors. •Although the Town pays a monthly fee to Grey Island in the Winter and reduced fee in the Summer, Grey Island is only used by Roads in the Winter season. Vo i c e C0 m m u n i c a t i on s •No application •N/A •N/A As s e t s a n d Eq u i p m e n t •Microsoft Word/Excel •WinField (used for fuel management) •N/A •Aging and outdated computer equipment resulting in unavailability of network and applications. The computer freezes and shuts down 3 times a week. This results in slow processing speed and regular issues with network connectivity. It takes roughly 1 hour to reboot. According to Randy Vince and Tracy Hird, opening more than 3 applications causes the computer to crash. •WinField causes laptop to crash every time it is activated due to the aging of IT infrastructure and equipment. •Road patrolling machines are not equipped with GPS systems. Da t a Ma n a g e m e n t •Microsoft Word/Excel •N/A •All inspections, road patrol information and work order are paper-driven. There is a lack of electronic logging and monitoring of critical information such as road inspections. •Lack of work order metrics to determine which work orders were completed vs. not completed. Mi s c . •ACR (Active Citizen Response – helpdesk) •N/A •Inability to add notes/comments to the ACR ticket. Only Customer Service Representatives can add notes to ACR. As such, when an ACR ticket is issued to Roads, a paper work order is drafted. 82 Appendix D 92 © Deloitte LLP and affiliated entities. Functional Gap Summary: Fire Services Town of Tillsonburg - IT Strategy Review (DRAFT) 83 Process areas Systems in use Process area description Key current state gaps Fi n a n c i a l •No application •N/A •N/A Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •e911 (emergency phone system) •GPS based traffic assumption system •Key functional areas include providing emergency fire services including fire suppression and rescue, property damage assessment etc. •GPS system does not display all Town intersections leading to difficulty in emergency fire situations. •Lack of information around road closures and hydrant locations in the fire truck. •The Enhance 911 (e911) system lacks progressive mapping abilities that would allow for real-time illustrations of the caller location. Vo i c e C 0 m m u n i c a t i o n s •CVDS (voice recording system) •Remote radios •Key functional processes include receiving, logging and maintaining critical emergency calls and recordings. •Lack of redundancy in the computer-based voice recording system (CVDS) and CAD servers. •Frequent failure of CVDS system leading to disrupting in providing quality services. •All critical recordings via CVDS is recorded and maintained in external hard drive (security concern). Previously, Panasonic DVD writers were used to record contents of the call (recordings) to DVDs. However, these failed due to poor quality of hardware. Fire Services lacks the ability to place these critical recordings on a more permanent medium. As s e t s a n d Eq u i p m e n t •2 CAD workstations (standalone) •N/A •Aging and outdated computer equipment resulting in unavailability of network and applications. Some applications will not run in the Captain’s office and some computers won’t run PowerPoint without crashing. •There are concerns around the availability of the FirePro server and reliability of computer equipment. •Frequent failure of CAD system leading to disrupting in providing quality services. It takes approximately 1 week for CAD servers to be repaired and online. •Lack of functional GPS equipment in fire trucks. Currently, the dispatcher has to vocally visualize the GPS screen from the Fire Services office. Da t a Ma n a g e m e n t •FirePro (records management system) •N/A •All staff are equipped with USB keys which are utilized to store any necessary information (acts as a “records management” tool). These keys are prone to theft or misplacement as it is unreliable and not encrypted or password protected. 83 Appendix D 93 © Deloitte LLP and affiliated entities. Functional Gap Summary: Fire Services Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 84 Process areas Systems in use Process area description Key current state gaps Mi s c . •Lotus Notes (general email) •N/A •Limited IT support in the Fire Services department as there is no resource with adequate IT knowledge or ability to be able to provide support. •There is a shared network ID and password among all Communicator staff leading to certain files being deleted or moved unknowingly. •Inability to obtain MPAC (property assessment) data. Currently, Fire Services can not determine the property value loss as they do not have access to MPAC. Fire Services have to contact someone in the Corporate Office to extract this information from MPAC. •There is a concern regarding the inconsistent and ineffective training procedures for fire fighters. For example, WHMIS training is considered time- consuming as it is performed in person during “busy time” as opposed to eLearning or online courses. There is a general lack of annual refresher courses or automated learning opportunities for Fire fighters, especially during their off- time. •Lack of a Disaster Recovery (DR) plan for electronic and physically stored record, equipment and computer (IT-related) equipment in the case of a power outage. •There is no way for the fire truck lights and sirens to be tested to ensure functionality. •Limited ability to monitor fire fighters in the field (i.e. their air pressure, exact coordinates etc.). Although the X and Y coordinates are reported, the Z coordinate is not. Currently, the fire fighters are tracked manually on the ground via IDs/badges. 84 Appendix D 94 © Deloitte LLP and affiliated entities. Functional Gap Summary: Fleet Services Town of Tillsonburg - IT Strategy Review (DRAFT) 85 Process areas Systems in use Process area description Key current state gaps Fi n a n c i a l No application •Fleet Services purchases fleet-related equipment for all departments by using chargebacks. •Lack of standard policies around inventory and equipment purchases. Currently, the Fleet Department is not involved with formal fleet-related purchases. Only Capital purchases require Council approval. As a result, staff from Fleet Services order non-capital assets/equipment's on a ad-hoc basis (that are deemed necessary) and pays for it with GL code. •All fleet-related purchasing required by other departments (i.e. Facilities) are done centrally through Fleet Services, where Fleet Services would purchase the fleet-related asset. Departments are charged back via fleet chargebacks. •Lack of fleet chargeback rate knowledge. Every year, Fleet Services “guesses” the chargeback rate. It has remained at 0% for the past 3 years and will be 0% again for the current year as per Dave Davis in Fleet Services. •There is a general concern that Fleet Services is always approved last for budgets resulting in less favorable budgetary allocations. Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •OEM Diagnostic software •Key functional areas include diagnostics, repairs and maintenance. •N/A Vo i c e C0 m m u n i c a t i o ns •None •N/A •N/A As s e t s a n d Eq u i p m e n t •WinField (used for fuel management) •Fleet Services maintains fleet- related assets and equipment, repairs equipment in the Maintenance Shop and performs diagnostics on equipment. •There is a ad-hoc process of maintaining and repairing fleet equipment. Maintenance schedules are not tracked or monitored other than in a “logbook” (paper-based). Currently, maintenance is done on a ad-hoc basis (normally after 250 hours). There is difficulty in determining the equipment is updated vs. required updating due to a lack of metrics and monitoring. As a result, significant amounts of costs are being incurred as assets and equipment are breaking down due to lack of proper and timely maintenance. •The Maintenance/Repair Shop is open 24/7, however, the Fleet Services/Maintenance department only operates at a 8 hour day. As such, the Shop is not used by other departments post the 8 hours. •Limited spare inventory on-hand resulting in emergency orders. “Spare” parts are not kept on-hand as per Manager, Fleet Services. •Limited computer equipment such as laptops in the Shop area. Currently, the Shop is equipped with 1 laptop that is used to perform all diagnostics. 85 Appendix D 95 © Deloitte LLP and affiliated entities. Functional Gap Summary: Fleet Services Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 86 Process areas Systems in use Process area description Key current state gaps Da t a Ma n a g e m e n t •No application •Key functional areas include the management of supplier and vendor information for procurement purposes. •Lack of a central data repository for maintaining supplier/vendor contact information resulting in assets being brought from multiple vendors. Mi s c . •ShopKey (used for work orders) •N/A •Lack of accuracy in key fobs that are in every fleet vehicle. As a result, users can enter 0 km and still get fuel. •ShopKey’s inability to track costs against work orders. It currently only has the basic functionality of generating a work order with a unique work order number. Costs have to be manually calculated and written on the work order paper produced by ShopKey which gets emailed/faxed/mailed to the County. •Lack of a unique identifiers for each vehicle (i.e. barcodes). •Inability to report on the assets/equipment purchased as OEM warranties are not tracked or maintained resulting in warranty return and tire core credits not being utilized. Currently, $10,000 per year is lost in Fleet Service due to lack of asset metrics (i.e. proof of asset purchasing). •The single stand-by generator is not connected full-time; it would take approximately 45 minutes-1 hour to get power. This is a major concern as Fleet Services is considered a communication center (i.e. fueling depot, repairing depot etc.). •Lack of general knowledge on obtaining IT support as IT are not knowledgeable on Fleet-related IT problems. Additionally, IT support personnel are required to come on-site to set-up and enter a password every time the laptop is placed in the truck. Diagnostics on equipment can not be run without IT’s support. •Currently, all repairs are performed in-house as opposed to be outsourced to 3rd parties due to lack of man-power and resources required to transporting and coordinating equipment with 3rd parties. 86 Appendix D 96 © Deloitte LLP and affiliated entities. Functional Gap Summary: Hydro and Water Town of Tillsonburg - IT Strategy Review (DRAFT) 87 Process areas Systems in use Process area description Key current state gaps Fi n a n c i a l •Harris (used for hydro billing purposes) •Great Plains (for budget management) •InView (used for time scheduling) •Key process areas include hydro, water, billing and meter management. •The current version of Harris only runs on Windows XP leading to compatibility issues. •Lack of an experienced and dedicated resource to run queries on Harris. Currently, Northstar (Harris vendor) is paid to run queries on behalf of Town’s Hydro department. •There is difficulty working with the InView system as it time-consuming and difficult to navigate through due its complex layout, small-sized font and lack of dual monitors. Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •eCare (self-serve module for Harris - used for eBilling) •N/A •There are general security concerns with the use of eCare (module of Harris) which is used as a self-serve platform for eBilling purposes. Vo i c e C0 m m u n i c a t i on s •No application •N/A •N/A As s e t s a n d Eq u i p m e n t •Microsoft Word/Excel •N/A •Aging and outdated computer equipment resulting in unavailability of network and applications and disruption in the quality of service. Computers crash an average of 3 times a week when attempts are made to send/receive data. •There are concerns around the lack of computer equipment such as larger secondary monitors. Currently, there is difficulty working in Harris application due to lack of a secondary monitor resulting in time-consuming processes, employee frustration and ergonomic issues (i.e. eye strains). Da t a M a n a g e m e n t •MeterSense (used for smart-meter information retention) •Microsoft Word/Excel •Key functional areas include the management of hydro, water, meter and billing related information. •The G drive is used as the primary data storage medium. There are concerns regarding the reliability and security of the G drive as all employees have access to the contents within it. •Lack of consistency or structure regarding the flow of data. Staff are often unsure of who to send certain data (i.e. Province vs. upload to Harris) and which applications to process certain data through. •Inability to re-allocate laptops and desktops within the department to maximize efficiency. Currently, some roles that require mobile devices such as laptops are given desktops (vice-versa). 87 Appendix D 97 © Deloitte LLP and affiliated entities. Functional Gap Summary: Hydro and Water Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 88 Process areas Systems in use Process area description Key current state gaps Mis c . •ACR (Active Citizen Response – helpdesk) •N/A •Lack of hydro and water system knowledge by County’s IT support results in long IT turnaround time. Currently, no one in-house or at the County is experienced and knowledgeable to manage hydro and water system-related problems. •There is a general lack of knowledge regarding assets/equipment required for the group at the management level. The Director of Development and Communication Services is responsible for approving procurement requests, assessing the overall budget, and seeking council approval. However, they are not always knowledgeable on the details of the requirement and the benefit of procuring the requesting item. •Lack of IT system user training provided to Staff using computer systems and applications such as Harris and Great Plains. Many programs are not being utilized as no one is training to use and/or support them. •With the oncoming upgrade to the new Harris system, the use of ACR will be minimized/not required. •There is a general consensus that the Town purchases several standalone systems that do not integrate with other Town programs. 88 Appendix D 98 © Deloitte LLP and affiliated entities. Functional Gap Summary: Museum Town of Tillsonburg - IT Strategy Review (DRAFT) 89 Process areas Systems in use Process area description Key current state gaps Fi n a n c i a l •Great Plains (for budget management) •InView (used for time scheduling and workforce management) •CLASS POS (used to process payments and track payments due, facility book and program registration) •N/A •Although Finance performs all the journal entries, Manager, Museum at Town of Tillsonburg from the Museum department prefers to track her own budget in Great Plains. There may be a timeliness gap between entry of expense items and budget review by the Museum Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •No application •Key functional area includes facility booking, program registration, service management etc. •Lack of a system that would allow for program/event ticket tracking Vo i c e C0 m m u n i c a t i on s •No application •N/A •There are concerns around the lack of adequate IT infrastructure such as computers, phones, laptops etc. As the phone line is direct, calls can not be transferred to any of the Town’s departments or services. The phone line is separate from the fax/photocopy and security (elevator) phone line. As s e t s a n d Eq u i p m e n t •No application •N/A •There are concerns around the lack of adequate IT infrastructure such as computers, phones, laptops etc. There are currently 3 desktops and 1 direct phone line at the Museum which are shared among staff leading to process delays as staff have to “wait” for other members to finish using it. There is limited counter space, as such, laptops would be preferred over desktops. Aging and outdated computer equipment resulting in unavailability of network and applications and disruption in the quality of service. The computers are approximately 13 year old. •There is one standalone desktop in the basement that is not being utilized as it is considered “ancient”. It can not connect to the Town’s systems or internet. It was historically being used to input collections data but has been dormant for years. 89 Appendix D 99 © Deloitte LLP and affiliated entities. Functional Gap Summary: Museum Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 90 Process areas Systems in use Process area description Key current state gaps Da t a Ma n a g e m e n t •Microsoft Access •N/A •All documents and data, especially collections data is paper-based and managed in Microsoft Access. Mis c . •Microsoft Photoshop •Lotus Notes (general email) •N/A •Lack of IT system user training provided to Staff using computer systems and applications such as Harris and Great Plains. Many programs are not being utilized as no one is training to use and/or support them. •The Museum currently lacks its own website resulting in staff answering repetitive questions that can easily be available on-line. 90 Appendix D 100 © Deloitte LLP and affiliated entities. Functional Gap Summary: Programs Town of Tillsonburg - IT Strategy Review (DRAFT) 91 Process areas Systems in use Process area description Key current state gaps Fi n a n c i a l •CLASS POS (used for recreational program registration/tracking and to process payments and track payments due) •Great Plains (used for bank deposits) •Key revenue sources include program registration fees, facility booking fees, membership fees etc. •The CLASS POS is wiped out during severe weather such as storms and snow. •Inability to generate reports on CLASS (lack of an adequate reporting tool). Currently, information has to be manually extracted from CLASS and entered into Microsoft Office for reporting purposes. •Bank Deposits for Museum and Airport are done centrally through Program department. The Program department’s banking is dependent on Airport and Museum as they have to wait for Airport and Museum to submit their bank deposits/banking information. •There are security and privacy concerns around the Senior Center’s banking information accessible to Program department staff on Great Plains. It is currently visible to all staff in Programs department. Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •CLASS POS (used for recreational program registration/tracking and to process payments and track payments due) •Key functional areas include program registration, facility booking, program membership and class list management. •N/A Vo i c e C0 m m u n i c a t i on s •No application •N/A •Phone systems are prone to failing leading to service quality issues as phone is a primary medium of contact with the public. As s e t s a n d Eq u i p m e n t •No application •N/A •Aging and outdated computer equipment resulting in unavailability of network and applications and disruption in the quality of service. There is a “no shut down” policy enforced as rebooting takes approximately 1 hour+. The slow processing speed result in process delays. •There are concerns around the desk space issues as they are always full and require constant re-formatting. •The general printers and membership printers (used for printing pictures on cards) require frequent ribbon replacement and “quick fixes” as it is prone to break down frequently. •There are concerns around the lack of mobile equipment in the field (i.e. pool, park) such as tablets, especially during times when the public wants to register for programs on-site and/or inquire about membership and program changes. Currently, staff have to make manual notes and then travel from the field to a physical workstation in the office to process the request and make any membership/registration related changes. As a result, the staff print paper copies of the program information (registration details, class list etc.) every morning prior to field-work. 91 Appendix D 101 © Deloitte LLP and affiliated entities. Functional Gap Summary: Programs Cont’d Town of Tillsonburg - IT Strategy Review (DRAFT) 92 Process areas Systems in use Process area description Key current state gaps Da t a Ma n a g e m e n t •Microsoft Word/Excel •N/A •There is a general consensus that all processes are manual and paper-based. Mis c . •ACR (Active Citizen Response – helpdesk) •Lotus Notes (general email) •N/A •The Town’s wi-fi connection is slow and difficult to work with leading to process delays and frustrated employees. There are connectivity issues during sever weather conditions such as storms and snow. •There are concerns working with the Lotus Notes application as it does not provide adequate functionality for the staff to perform their jobs and lacks archiving abilities. •Although the County’s IT is contact for general IT support, the primary form of contact for CLASS is the CLASS vendor who provides adequate level of support. Annual fees are paid to the CLASS vendor. 92 Appendix D 102 © Deloitte LLP and affiliated entities. Functional Gap Summary: Real Estate Town of Tillsonburg - IT Strategy Review (DRAFT) 93 Process areas Systems in use Process area description Key current state gaps Fin a n c i a l •No application •N/A •N/A Cl i e n t Re l a t i o n s h i p Ma n a g e m e n t •County’s GIS (used for building permit and planning purposes) •GeoWare (used for assessing property value) •Key functional processes include property assessments, taxing, zoning and assessing topographical maps, etc. •N/A Vo i c e C0 m m u n i c a t i on s •No application •N/A •Inability to obtain tax billing information to verify property tax information due to Privacy Act. As such, Realtors have to rely on staff from Corporate office to obtain a user’s tax billing information. As s e t s a n d Eq u i p m e n t •No application •N/A •N/A Da t a Ma n a g e m e n t •No application •N/A •Lack of a central data repository for planning, real-estate and property documents. Currently, all documents are paper-based and stored in physical files. Mi s c . •No application •N/A •There is a general concern that the public has difficulty obtaining tax information from the Town. There are privacy issues as per the Privacy Act that Realtors can not disclose property tax information. 93 Appendix D 103 Town of Tillsonburg IT Strategic Review – Council Update January 13, 2014 104 © Deloitte LLP and affiliated entities. Table of contents •Project overview •Findings summary •Roadmap and costing 1 Town of Tillsonburg - IT Strategy Review - Council Update 105 © Deloitte LLP and affiliated entities. Project overview 2 Town of Tillsonburg - IT Strategy Review - Council Update 106 © Deloitte LLP and affiliated entities. Project overview 3 Town of Tillsonburg - IT Strategy Review - Council Update Project Background The Town of Tillsonburg has engaged Deloitte to conduct an assessment of the Town’s technology controls, processes, policies and underlying infrastructure. At present the Town’s IT operations are outsourced to the County of Oxford and management is looking for direction on a future IT operating model as well as ensuring current infrastructure and applications are capable of meeting the business needs of the Town. The assessment focused on the following key areas: •Applications and infrastructure; •Governance and strategy; •Information security and vulnerability; and •Disaster recovery planning. Objectives •Benchmarking of the Town’s IT environment against comparable municipalities; •Future state IT organizational structure and governance model; •Directional hardware and software requirements; •Sustainable IT funding model; •Recommended Disaster Recovery and Record Storage Model; •Guidance on policies and procedures that should be in place to support the IT Strategy and impacted business units at the Town; •Identify the most effective strategy for meeting the Towns business needs and priorities; and •Define an action plan and roadmap for implementing that strategy 107 © Deloitte LLP and affiliated entities. Findings summary 4 Town of Tillsonburg - IT Strategy Review - Council Update 108 © Deloitte LLP and affiliated entities. Drivers of the IT strategy review Driver Deloitte Approach and Findings Infrastructure Investment in physical IT infrastructure has been neglected at the Town for several years •Engagement with County IT staff and Town staff •A key theme was significant lost productivity on the part of Town staff due to frequent workstation and server downtime or slow performance. •Total lost productivity reported was 1 – 3 hours per employee per week. •Significant time spent by IT resources maintaining the server infrastructure and managing storage to ensure systems stay operational. Applications There is limited understanding of whether the Town’s current applications meet functional needs •Application functionality within the major applications is sufficient to meet current business needs. •Some current applications could be consolidated into fewer larger hardware platforms to improve performance and reduce maintenance, while still enabling redundancy. •Management has initiated CityWide as the primary fixed asset management system to achieve alignment across the Town. Governance and Strategy The Town is in a state flux with regards to its operating model (short term arrangement with the County of Oxford). There is limited definition of IT governance. •Benchmarking of the Town’s budgetary and IT organizational model to determine a suitable go forward strategy. •Of the municipalities consulted for benchmarking all had primarily in-house IT services. Information security and vulnerability Given the age of infrastructure and change in operating model there is uncertainty around whether security gaps exist to current systems. •Deloitte conducted internal and external testing of the Town’s network using VA tools including QualysGuard and other tools, as well as manual verification. •Several weaknesses in the current system were noted primarily due to the age of infrastructure and application areas. Disaster recovery planning There is limited redundancy, data backup, or business continuity currently in place. •Deloitte reviewed system documentation and interviewed IT and functional staff to determine the current state of disaster recovery planning. There is currently a high risk of data loss due to the lack of data protection practices in place. 5 Town of Tillsonburg - IT Strategy Review - Council Update 109 © Deloitte LLP and affiliated entities. Current high risk areas As part of the review Deloitte identified four high risk areas which should be addressed by the Town in the short term. These areas have the potential to significantly impact IT operations and service delivery to constituents if not prioritized for short term action. •Security and network vulnerability – There are significant weaknesses within the Town’s network largely due to its aging infrastructure and systems. •Non-compliance of software licenses – Current Microsoft licenses are out of date at both the operating system and desktop application level. The Town has initiated a license audit which will assist in gathering an inventory of all Microsoft office and operating system installs and standardize versions while working with the vendor to update licenses. •Staff productivity - aged hardware infrastructure (servers and workstations) – The age of server and workstation infrastructure results in poor performance, and risk of imminent failure. Server performance is similarly poor with frequent downtime and impacts to application performance. Downtime impacts of 1 – 3 hours per employee results in lost productivity of $384,000 annually*. –The Town lacks the ability to upgrade certain applications due to out dated server configurations. •Disaster recovery – There is a lack of redundancy across the current architecture resulting in high risk of data loss. In the event of a disaster the Town has no business continuity capabilities outside of fully manual operations. Redundancy should be built in with the server replacement exercise recommended as part of the hardware refresh initiative above. 6 Town of Tillsonburg - IT Strategy Review - Council Update *Based on 80 employees and an average fully loaded FTE cost of $50/hr. 110 © Deloitte LLP and affiliated entities. Summary recommendations Driver Summary recommendations Infrastructure Investment in physical IT infrastructure has been neglected at the Town for several years •Invest in upgrading its server and end user hardware in the short term. •Management has initiated a workstation refresh and continued priority should be given in this area. Applications There is limited understanding of whether the Town’s current applications meet functional needs An in-depth application architecture strategy is recommended to assess: •Where common applications can be rationalized; •Where additional functionality is required; and •Where County applications can be leveraged. Governance and Strategy The Town is in a state flux with regards to its operating model (short term arrangement with the County of Oxford). There is limited definition of IT governance. •Continue to work with the County while ensuring strong internal IT management capabilities within the senior management group. Information security and vulnerability Given the age of infrastructure change in operating model there uncertainty around whether security gaps exist to current systems. •Significant gaps should be addressed in the short term. Disaster recovery planning There is limited redundancy, data backup, or business continuity currently in place. •As part of the hardware refresh and system architecture migration basic redundancy should be put in place in the short term. •Over the medium to long term a business impact analysis and detailed disaster recovery plan should be formed. 7 Town of Tillsonburg - IT Strategy Review - Council Update 111 © Deloitte LLP and affiliated entities. Short term priority items Gaps requiring immediate attention to limit risks to the organization and overall constituent service include: •Hardware refresh –End user systems: Due to the age of and lack of reliability, replacing end user systems will increase productivity by reducing downtime and waiting time, as well as reducing help desk calls. –Infrastructure: Updating core infrastructure components and re-designing system addressing schemes (in progress) will improve network infrastructure performance. •Email migration –The current email system is inefficient and out of date. Upgrading the infrastructure will reduce downtime, system management effort •Server architecture –Virtualization: Virtualization technology will enable redundancy and consolidation of systems, as well as optimize hardware usage. –Redundancy: The ability to fail over or reinitialize servers on redundant hardware will improve the reliability of the town systems. As noted, virtualization enables redundancy without significant hardware purchase. –Consolidation: Consolidation of databases, email and other applications into common, redundant systems simplifies system maintenance and can reduce licensing costs. •IT governance aspects such as oversight, policies and procedures should be developed and implemented. •An application strategy is recommended to ensure current investments are being appropriately leveraged and necessary functionality is being delivered. •Disaster recovery/business continuity - short term focus should be on building redundancy as part of the hardware refresh. 8 Town of Tillsonburg - IT Strategy Review - Council Update 112 © Deloitte LLP and affiliated entities. Roadmap and costing 9 Town of Tillsonburg - IT Strategy Review - Council Update 113 © Deloitte LLP and affiliated entities. 5 year roadmap 10 Town of Tillsonburg - IT Strategy Review - Council Update The roadmap below presents the initiatives recommended for the Town over 5 years in order to achieve stability in IT operations and reach the target maturity levels recommended. A disproportionate amount of effort and cost is allocated in the first two years of the plan in order to mitigate the high risk areas facing the Town as highlighted on slide 7 above. Determining a preferred operating model (initiative 7.1) and developing and implementing an IT governance section (initiative1.1) will help to further refine the scope and timing of the remaining recommended initiatives. Thread/ Year 2014 2015 2016 2017 2018 Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec 1.0 Governance 1.1 Develop and implement IT governance structure 2.0 Network 2.1 Network baseline 2.2 Upgrades, replacements and maintenance 3.0 Servers 3.1 Target architecture 3.2 Architecture migration 3.3 Maintenance and refresh 4.0 End user computing 4.1 Workstation refresh 4.1.1 Mobility updates 4.2 Maintenance and refresh 5.0 Applications 5.1 Application strategy 5.2 Application enhancement and rationalization 5.3 Strategic enhancements 6.0 Systems Management 6.1 IT asset management 6.2 Conduct business impact analysis (BIA) and design and implement disaster recovery plan (DRP) 6.3 Ongoing capacity management 7.0 Organization 7.1 Operating model decision 7.2 Staff training (end user + functional power users) 114 © Deloitte LLP and affiliated entities. Cost summary (hardware, software, and licensing) Item 2014 2015 2016 2017 2018 2.1 & 2.2 Network baseline/upgrades 55,000 5,000 5,000 5,000 5,000 3.1 Target server architecture - - - - - 3.2 Architecture migration 40,000 – 60,000 - - - - 3.3 Server maintenance and refresh 15,000 – 20,000 10,000 – 15,000 10,000 – 15,000 10,000 – 15,000 10,000 – 15,000 4.1 Workstation refresh 120,000 - 150,000 - - - - 4.1.1 Mobility updates 25,000 - 40,000 5,000 – 10,000 5,000 – 10,000 5,000 – 10,000 5,000 – 10,000 4.2 End user maintenance - 20,000 – 30,000 20,000 – 30,000 20,000 – 30,000 20,000 – 30,000 5.2 Application enhancement - 30,000 – 40,000 - - - 5.2.1 Email replacement 40,000 – 60,000 - - - - Total hardware and software $295,000 – $395,000 $70,000 – $100,000 $40,000 – $60,000 $40,000 – $60,000 $40,000 – $60,000 11 Town of Tillsonburg - IT Strategy Review - Council Update The table below summarizes the capital impact of the recommendations outlined in this report. A significant capital investment must be made in the first two years to mitigate the risks currently facing the Town. Current 2014 placeholder costs The town has currently allocated $634,700 for various hardware, application and licensing costs. The overall cost meets the required spend for 2014 and 2015. However the pace and overall allocation will need to be evaluated by management based on the recommendations of this IT strategy. Item 2014 budget (placeholders) Licensing/maintenance contracts $319,200 Other $7,500 Workstation Refresh $80,000 Server $150,000 Laserfische $28,000 Strategic plan implementation $50,000 Total $634,700 115 © Deloitte LLP and affiliated entities. Cost summary (resourcing) Item 2014 2015 2016 2017 2018 1.1 Develop and implement IT governance structure 50,000 25,000 2.1 & 2.2 Network baseline/upgrades 45,000 - - - - 3.1 Target server architecture 25,000 - - - - 3.2 Architecture migration 25,000 50,000 - - - 4.1 Workstation refresh 25,000 - - - - 4.1.1 Mobility updates 25,000 - - - - 5.1 Application strategy 60,000 – 80,000 - - - - 5.2 Application enhancement - 25,000 10,000 - - 5.3 Strategic enhancements - - - 300,000 300,000 5.2.1 Email replacement 50,000 - - - - 6.1 IT asset management - - - - - 6.2 BIA and DRP - 50,000 30,000 - - Total resource $305,000 - $325,000 $150,000 $55,000 $300,000 $300,000 12 Town of Tillsonburg - IT Strategy Review - Council Update The table below summarizes the budget impact for staff or contract resources to execute the recommendations outlined in this report. This is the expected increase in budget over the current budget costs for the IT infrastructure. As most of these costs are one time project costs, the best funding is for most of the costs is as specific projects. Current 2014 placeholder costs The town has currently held $72,000 resourcing cost for county payments. Overall resourcing costs will need to be evaluated in order to effectively execute on the recommendations in the IT strategic plan. Some re-allocation from hardware, software, and licensing costs may need to be considered. Item 2014 budget place holder Consultant/contractor - Payments to County $72,000 Employee - Total $72,000 116 © Deloitte LLP and affiliated entities. Current budgetary placeholders IT Strategy Recommendations Current Town Placeholders Year Hardware, software, licensing Resourcing Total Hardware, software, licensing Resourcing Total 2014 $295,000 – $395,000 $305,000 - $325,000 $600,000 - $720,000 $634,700 $72,000 $706,700 2015 $70,000 – $100,000 150,000 $220,000 - $250,000 TBD TBD TBD 2016 $40,000 – $60,000 $55,000 $95,000 - $115,000 TBD TBD TBD 2017 $40,000 – $60,000 $300,000 $340,000 - $360,000 TBD TBD TBD 2018 $40,000 – $60,000 $300,000 $340,000 - $360,000 TBD TBD TBD Total $485,000 - $675,000 $1,110,000 – $1,130,000 $1,595,000 - $1,805,000 $634,700 $72,000 $706,700 13 Town of Tillsonburg - IT Strategy Review - Council Update Town management developed budgetary estimates for 2014 prior to the development of the IT strategic plan. Management will re-evaluate the overall allocation of funds to align with the strategy for 2014 and beyond. The forecasted start date of the initiatives recommended in the strategic plan and work initiated in 2013 will impact the overall allocation and timing of spend. A key area for consideration is allocating sufficient funds for people resources, whether through the County or contractors to complete the recommended initiatives. 117 © Deloitte LLP and affiliated entities. IT operating model options Town management should prioritize a decision around a future IT operating model which will help drive future planning for medium to longer term initiatives. The potential options and their related risks, benefits, and costs are described below. Regardless of the direction chosen an investment in IT needs to be made at the management level to ensure accountability and skillsets are present at the high level of Town administration. •Status quo – Maintain the current relationship with the County with limited defined IT accountability within Town management and maintaining existing processes and IT infrastructure. •Fully in-source IT – Develop an internal IT department with full time staff to maintain applications, infrastructure, and related IT processes. •County contract with defined governance – Maintain the relationship with the County, however clearly define IT ownership within Town management, build functional application skillsets within the department, and conduct infrastructure renewal. •Outsource to private provider – Contract a private 3rd party provider to manage all IT servers for the Town with a dedicated contract manager at the Town. 14 Town of Tillsonburg - IT Strategy Review - Council Update Option Risk Benefits Cost Decision 1.Status Quo HIGH Not scalable, aging infrastructure NEGATIVE Potential for application proliferation and significant loss of staff productivity NEGATIVE Potentially high financial impact to the Town with lost productivity, lack of data redundancy, and licensing risks Not a viable option 2.Fully in-source IT HIGH Limited internal skillsets to support diverse applications MODERATE Provides control and oversight of IT operations HIGH Hiring and training needs for applications and infrastructure support Not a viable option 3.County contract with defined governance LOW Current working relationship, HIGH Leverage County skillsets, potential to leverage applications and reduce costs MODERATE Initial hardware refresh costs will be high however longer term costs can be controlled with shared service opportunities Pursue in 3-5 year term 4.Outsource to private provider HIGH Few providers for municipal space in the region MODERATE Ability to immediately adopt leading practices HIGH There are limited providers in the Municipal space. Not a short term option 118 © Deloitte LLP and affiliated entities. Roles and Responsibility Map IT operating model recommendation •The Town should continue to engage the County for IT services with an enhanced governance framework. This should re-evaluated within 3-5 years as the Town completes is major upgrade initiatives to attain baseline operations. 15 Town of Tillsonburg - IT Strategy Review - Council Update Town of Tillsonburg County of Oxford Governance -IT ownership at executive level* -Defined contract and SLAs (service level agreements) -Established policies and procedures (refresh cycles, hardware and application standards, etc.,) -Asset management decision making Network -Town ownership of infrastructure -County maintenance and troubleshooting Servers -Town ownership of infrastructure -County maintenance and troubleshooting -Potential for shared DR capacity End user computing -Town ownership of infrastructure -County maintenance and troubleshooting Applications -Town ownership of infrastructure -County maintenance and troubleshooting -Potential for shared licensing on common applications Systems management -Maintenance of Town assets -Implement and operationalize DRP -Decision making / approvals for Town IT assets will remain the responsibility of the Town. Organization -End user training -Updating of operating model Organization -Staff training and hiring -Ensure sufficient resourcing for County and Town operations Key Stakeholders -Town Council -Senior Management -Functional Users Key Stakeholders -Senior Management -IT Management -IT Staff *The Town should define a specific role at the Senior Management level which holds executive accountability for IT. This position would be the policy and budget owner for all IT areas. The position would act as the primary contract manager between the County and Town, ensure SLAs are achieved, approve IT spending, and work with other Town stakeholders to meet IT needs. The responsibility can be attached to an existing position and would require a moderate level of IT experience. 119 © Deloitte LLP and affiliated entities. Targeted future state of IT 16 •The maturity model, a standard tool for effectively assessing an organization’s IT capabilities, is used to illustrate the current state maturity ranking of the Town across each of the components of the IT Operating Model Maturity Model – Definitions •Basic repeatable processes are established but are not applied consistently •Limited formal communication of processes or policies and procedures •Tools introduced to enable operations •Basic definition of roles / responsibilities •Processes are disorganized, even chaotic •Processes are not sufficiently defined and / or documented •Success is dependent on individual efforts, and is not considered to be repeatable •No tools in place •Roles / responsibilities are loosely defined •Processes are formalized through documentation, standardization, and integration •Policies and procedures are in place along with training to relevant stakeholders •Tools are in place to support processes •Roles / responsibilities are formally defined •Process / performance benchmarks and KPIs are established •Performance monitoring and continuous improvement is introduced •Consistent tool utilization •Resources are aligned against repeatable processes with documented roles / responsibilities •Proactive management of performance and focus on continuous improvement •Consistent and repeatable application of processes across the organization •Proactive review of tools performance •Full resource alignment against processes and performance management aligned roles Developing Initial Defined Managed Mature Increasing Maturity Increasing Maturity Developing Defined Managed Mature Initial Dimension Future State Maturity (5 Year Strategy) IT Governance Applications (Acquisition) Sys. Mgmt. Processes Sys. Mgmt. Infrastructure People Legend: 3 – 5 years Current State •To address the Town’s objectives to enhance services to constituents and staff while controlling costs, the IT function will need to mature to at least a “Defined” level •Some areas such as Governance and Infrastructure will need to move to the “Managed” level given their importance to addressing the stated goals •Depending on the Town’s direction in adopting a best-of-breed applications strategy the Applications (Acquisition) dimension will require greater development •Given the limited IT capacity within the organization today, and the level of investment and effort that will be required to achieve the future state maturity, a progressive approach is recommended within the operating model. •Overall, the most significant shifts will be required within IT Governance and Infrastructure, which are the traditional areas that require development within emerging organizations Town of Tillsonburg - IT Strategy Review - Council Update 120 © Deloitte LLP and affiliated entities. Conclusion •Key benefits –Direct impact to staff productivity and constituent service –Modernize system architecture; higher efficiency machines at lower maintenance costs going forward –Long term sustainability of IT organization; ensuring IT spend meets business and community needs •The risks of doing nothing –Inefficient IT spending; potentially duplicating applications –Security and data recovery risks; current lack of redundancy in the system –Impact to constituent service; system downtime impacts the organizations overall productivity 17 Town of Tillsonburg - IT Strategy Review - Council Update 121 122 THE ASSET MANAGEMENT PLAN FOR THE TOWN OF TILLSONBURG 2013 THE TOWN OF TILLSONBURG 10 LISGAR AVE TILLSONBURG, ONTARIO, N4G 5A5 SUBMITTED DECEMBER 2013 BY PUBLIC SECTOR DIGEST 148 FULLARTON STREET, SUITE 1410 LONDON, ONTARIO, N6A 5P3 123 Annual Funding Available Annual Funding Deficit State of the Infrastructure The Town of Tillsonburg AVERAGE ANNUAL FUNDING REQUIRED vs. AVERAGE ANNUAL FUNDING AVAILABLE $455,000 $0 $0 $455,000 -$2,027,000 -$431,000 -$329,000 -$2,787,000 ROAD NETWORK STORM NETWORK TOTALBRIDGES & CULVERTS Total Annual Deficit: $2,878,000 124 PUBLIC SECTOR DIGEST 148 Fullarton Street, Suite 1410 London, Ontario, N6A 5P3 T: 519.690.2565 F: 519.649.2010 www.publicsectordigest.com www.citywidesolutions.com December 2013 The Town of Tillsonburg 10 Lisgar Ave Tillsonburg, Ontario, N4G 5A5 We are pleased to submit the 2013 Asset Management Plan (AMP) for the Town of Tillsonburg. This AMP complies with the requirements as outlined within the provincial Building Together Guide for Municipal Asset Management Plans. It will serve as a strategic, tactical, and financial document, ensuring the management of the municipal infrastructure follows sound asset management practices and principles, while optimizing available resources and establishing desired levels of service. Given the broad and profound impact of asset management on the community, and the financial & administrative complexity involved in this ongoing process, we recommend that senior decision-makers from across the organization are actively involved in its implementation. The performance of a community’s infrastructure provides the foundation for its economic development, competitiveness, prosperity, reputation, and the overall quality of life for its residents. As such, we are appreciative of your decision to entrust us with the strategic direction of its infrastructure and asset management planning, and are confident that this AMP will serve as a valuable tool. Sincerely, The Public Sector Digest Inc. Matthew Dawe Israr Ahmad Vice President Managing Editor mdawe@publicsectordigest.com iahmad@publicsectordigest.com INTELLIGENCE FOR THE PUBLIC SECTOR. 125 PUBLIC SECTOR DIGEST Contacts Matthew Dawe Vice President mdawe@publicsectordigest.com Israr Ahmad Managing Editor iahmad@publicsectordigest.com Christine Beneteau Data Analyst cbeneteau@publicsectordigest.com Chad Gale Data Analyst cgale@publicsectordigest.com Jona Mema Data Analyst jmema@publicsectordigest.com Salman Zafar Data Analyst szafar@publicsectordigest.com Tyler Sutton Senior Research Analyst tsutton@publicsectordigest.com Matthew Van Dommelen Regional Director mvandommelen@publicsectordigest.com Gabe Metron Regional Director gmetron@publicsectordigest.com Holly Jennings Account Manager hjennings@publicsectordigest.com LEGAL NOTICE This report has been prepared by The Public Sector Digest Inc. (“PSD”) in accordance with instructions received from The Town of Tillsonburg (the “Client”) and for the sole use of the Client. The content of (and recommendations) this report reflects the best judgement of PSD personnel based on the information made available to PSD by the Client. Unauthorized use of this report for any other purpose, or by any third party, without the express written consent of PSD, shall be at such third party’s sole risk without liability to PSD. This report is protected by copyright. INTELLIGENCE FOR THE PUBLIC SECTOR. 126 1 T H E A S S E T M A N A G E M E N T P L A N F O R T H E T O W N O F T I L L S O N B U R G Table of Contents 1.0 Executive Summary ............................................................................................................................................... 4 2.0 Introduction ............................................................................................................................................................ 7 2.1 Importance of Infrastructure ....................................................................................................................................................... 7 2.2 Asset Management Plan (AMP) - Relationship to Strategic Plan .......................................................................................... 8 2.3 AMP - Relationship to other Plans ............................................................................................................................................... 8 2.4 Purpose and Methodology ......................................................................................................................................................... 9 2.5 CityWide Software alignment with AMP.................................................................................................................................. 11 3.0 State of the Infrastructure (SOTI) ......................................................................................................................... 12 3.1 Objective and Scope ................................................................................................................................................................. 12 3.2 Approach ..................................................................................................................................................................................... 12 3.2.1 Base Data ...................................................................................................................................................................................................... 12 3.2.2 Asset Deterioration Review ......................................................................................................................................................................... 12 3.2.3 Identify Sustainable Investment Requirements ......................................................................................................................................... 13 3.2.4 Asset Rating Criteria ..................................................................................................................................................................................... 13 3.2.5 Infrastructure Report Card........................................................................................................................................................................... 13 3.2.6 General Methodology and Reporting Approach ................................................................................................................................... 14 3.3 Road Network .............................................................................................................................................................................. 16 3.3.1 What do we own? ........................................................................................................................................................................................ 16 3.3.2 What is it worth? ............................................................................................................................................................................................ 16 3.3.3 What condition is it in? ................................................................................................................................................................................. 17 3.3.4 What do we need to do to it? .................................................................................................................................................................... 18 3.3.5 When do we need to do it? ........................................................................................................................................................................ 18 3.3.6 How much money do we need? ............................................................................................................................................................... 19 3.3.7 How do we reach sustainability? ............................................................................................................................................................... 19 3.3.8 Recommendations ....................................................................................................................................................................................... 20 3.4 Gravel Roads – Maintenance Requirements ......................................................................................................................... 21 3.4.1 Introduction ................................................................................................................................................................................................... 21 3.4.2 Maintaining a Good Cross Section ............................................................................................................................................................ 21 3.4.3 Grading Operations ..................................................................................................................................................................................... 22 3.4.4 Good Surface Gravel ................................................................................................................................................................................... 22 3.4.5 Dust Abatement and stabilization .............................................................................................................................................................. 22 3.4.6 The Cost of Maintaining Gravel Roads ...................................................................................................................................................... 22 3.4.7 Minnesota Study (2005)................................................................................................................................................................................ 22 3.4.8 South Dakota study (2004) .......................................................................................................................................................................... 23 3.4.9 Ontario Municipal Benchmarking Initiative (OMBI) ................................................................................................................................. 23 3.4.10 Conclusion ................................................................................................................................................................................................... 23 3.5 Bridges & Culverts ....................................................................................................................................................................... 25 3.5.1 What do we own? ........................................................................................................................................................................................ 25 127 2 3.5.2 What is it worth? ............................................................................................................................................................................................ 25 3.5.3 What condition is it in? ................................................................................................................................................................................. 26 3.5.4 What do we need to do to it? .................................................................................................................................................................... 27 3.5.5 When do we need to do it? ........................................................................................................................................................................ 27 3.5.6 How much money do we need? ............................................................................................................................................................... 28 3.5.7 How do we reach sustainability? ............................................................................................................................................................... 28 3.5.8 Recommendations ....................................................................................................................................................................................... 28 3.6 Storm Sewer Network .................................................................................................................................................................. 29 3.6.1 What do we own? ........................................................................................................................................................................................ 30 3.6.2 What is it worth? ............................................................................................................................................................................................ 30 3.6.3 What condition is it in? ................................................................................................................................................................................. 31 3.6.4 What do we need to do to it? .................................................................................................................................................................... 32 3.6.5 When do we need to do it? ........................................................................................................................................................................ 32 3.6.6 How much money do we need? ............................................................................................................................................................... 33 3.6.7 How do we reach sustainability? ............................................................................................................................................................... 33 3.6.8 Recommendations ....................................................................................................................................................................................... 33 4.0 Infrastructure Report Card ................................................................................................................................... 34 5.0 Desired Levels of Service .................................................................................................................................... 35 5.1 Key factors that influence a level of service: ......................................................................................................................... 35 5.1.1 Strategic and Corporate Goals .................................................................................................................................................................. 35 5.1.2 Legislative Requirements ............................................................................................................................................................................. 35 5.1.3 Expected Asset Performance ..................................................................................................................................................................... 35 5.1.4 Community Expectations ............................................................................................................................................................................ 35 5.1.5 Availability of Finances ................................................................................................................................................................................ 36 5.2 Key Performance Indicators ...................................................................................................................................................... 36 5.3 Transportation Services ............................................................................................................................................................... 37 5.3.1 Service Description ....................................................................................................................................................................................... 37 5.3.2 Scope of Services ......................................................................................................................................................................................... 38 5.3.3 Performance Indicators (reported annually) ............................................................................................................................................ 38 5.4 Storm Network ............................................................................................................................................................................. 38 5.4.1 Service Description ....................................................................................................................................................................................... 38 5.4.2 Scope of services .......................................................................................................................................................................................... 39 5.4.3 Performance Indicators (reported annually) ............................................................................................................................................ 39 6.0 Asset Management Strategy .............................................................................................................................. 40 6.1 Objective ...................................................................................................................................................................................... 40 6.2 Non-Infrastructure Solutions and Requirements ..................................................................................................................... 40 6.3 Condition Assessment Programs ............................................................................................................................................... 40 6.3.1 Pavement Network Inspections .................................................................................................................................................................. 41 6.3.2 Bridges & Culverts (greater than 3m) Inspections .................................................................................................................................... 42 6.3.3 Sewer Network Inspections (Sanitary & Storm) ......................................................................................................................................... 42 6.4 AM Strategy – Life Cycle Analysis Framework ........................................................................................................................ 44 6.4.1 Paved Roads ................................................................................................................................................................................................. 44 6.4.2 Gravel Roads................................................................................................................................................................................................. 46 6.4.3 Sanitary and Storm Sewers .......................................................................................................................................................................... 46 6.4.4 Bridges & Culverts (greater than 3m span) ............................................................................................................................................... 48 6.5 Growth and Demand ................................................................................................................................................................. 49 128 3 6.6 Project Prioritization ..................................................................................................................................................................... 49 6.6.1 Risk Matrix and Scoring Methodology ....................................................................................................................................................... 49 7.0 Financial Strategy ................................................................................................................................................ 52 7.1 General overview of financial plan requirements ................................................................................................................. 52 7.2 Financial information relating to Tillsonburg’s AMP ............................................................................................................... 53 7.2.1 Funding objective ......................................................................................................................................................................................... 53 7.3 Tax funded assets ........................................................................................................................................................................ 53 7.3.1 Current funding position .............................................................................................................................................................................. 53 7.3.2 Recommendations for full funding ............................................................................................................................................................. 54 7.4 Use of debt ................................................................................................................................................................................... 55 7.6 Use of reserves ............................................................................................................................................................................. 57 7.6.1 Available reserves......................................................................................................................................................................................... 57 7.6.2 Recommendation ........................................................................................................................................................................................ 58 8.0 Appendix A: Report Card Calculations ............................................................................................................. 59 129 4 1.0 Executive Summary The performance of a community’s infrastructure provides the foundation for its economic development, competitiveness, prosperity, reputation, and the overall quality of life for its residents. Reliable and well- maintained infrastructure assets are essential for the delivery of critical core services for the citizens of a municipality. A technically precise and financially rigorous asset management plan, diligently implemented, will mean that sufficient investments are made to ensure delivery of sustainable infrastructure services to current and future residents. The plan will also indicate the respective financial obligations required to maintain this delivery at established levels of service. This Asset Management Plan (AMP) for Tillsonburg meets all requirements as outlined within the provincial Building Together Guide for Municipal Asset Management Plans. It will serve as a strategic, tactical, and financial document, ensuring the management of the municipal infrastructure follows sound asset management practices and principles, while optimizing available resources and establishing desired levels of service. Given the expansive financial and social impact of asset management on both a municipality, and its citizens, it is critical that senior decision-makers, including department heads as well as the chief executives, are strategically involved. Measured in 2012 dollars, the replacement value of the asset classes analyzed totaled $161 million for Tillsonburg. Road Network, $117,983,773 , 73% Bridges & Culverts, $23,095,000 , 15% Storm Sewer Network, $19,762,702 , 12% 2012 Replacement Value by Asset Class Total: $160,841,475 130 5 While the municipality is responsible for the strategic direction, it is the taxpayer in Tillsonburg who ultimately bears the financial burden. As such, a ‘cost per household’ (CPH) analysis was conducted for each of the asset classes to determine the financial obligation of each household in sharing the replacement cost of the municipality’s assets. Such a measurement can serve as an excellent communication tool for both the administration and the council in communicating the importance of asset management to the citizen. The diagram below illustrates the total CPH, as well as the CPH for individual asset classes. In assessing the municipality’s state of the infrastructure, we examined, and graded, both the current condition (Condition vs. Performance) of the asset classes as well as the municipality’s financial capacity to fund the asset’s average annual requirement for sustainability (Funding vs. Need). We then generated the municipality’s infrastructure report card. The municipality received a cumulative GPA of ‘F’, with an annual infrastructure deficit of $2.8 million. Tillsonburg received an ‘F’ on the Funding vs. Need dimension for all three asset classes analyzed in this document, funding 0% of its annual infrastructure requirements for both the bridges & culverts assets, and its storm network. The town is funding only 18% of its annual requirements for its road network. Tillsonburg’s grades on the Condition vs. Performance for the three asset classes were better. Based on field condition data, the town received a ‘C’ on its road and storm network and a ‘B’ on its bridges & culverts. While a grade of ‘B+’ implies only minor deterioration in assets, a grade of ‘C’, is indicative of significant deterioration and a possible compromise in asset function. It also signals substantial demand on the municipality in the short term. For example, based on field condition assessment data, there is a significant portion of the road network in poor and critical condition, generating a backlog of needs totaling approximately $21 million in the next 5 years. Similarly, for the bridges & culverts assets, there are needs (generally culverts) to be addressed within the next 10 years totaling approximately $7.4 million. In order for an AMP to be effectively put into action, it must be integrated with financial planning and long- term budgeting. We have developed scenarios that would enable Tillsonburg to achieve full funding within 5 years or 10 years for the town’s road network (paved roads), bridges & culverts, and storm sewer network. Storm Sewer Network Total Replacement Cost: $19,762,702 Cost Per Household: $2,797 Road Network (excludes gravel) Total Replacement Cost: $117,368,175 Cost Per Household: $16,613 Infrastructure Replacement Cost Per Household Total: $22,679 per household Bridges & Culverts Total Replacement Cost: $23,095,000 Cost Per Household: $3,269 131 6 The average annual investment requirement for paved roads, bridges/culverts and storm sewers is $3,242,000. Annual revenue currently allocated to these assets for capital purposes is $455,000 leaving an annual deficit of $2,787,000. To put it another way, these infrastructure categories are currently funded at 14% of their long-term requirements. In 2013, Tillsonburg has annual tax revenues of $12,391,879. Without consideration of any other sources of revenue, full funding would require a combined tax increase of 22.5% over time. We recommend a 10 year option which involves full funding being achieved over 10 years by: a) when realized, reallocating the debt cost reductions of $636,000 to the infrastructure deficit as outlined above. b) increasing tax revenues by 1.7% each year for the next 10 years solely for the purpose of phasing in full funding to the tax based asset categories covered in this section of the AMP. c) allocating the $455,000 of gas tax revenue to the paved roads category. d) increasing existing and future infrastructure budgets by the applicable inflation index on an annual basis in addition to the deficit phase-in. The revenue options outlined in this plan allow Tillsonburg to fully fund its long-term infrastructure requirements without further use of debt. However, as explained in section 7.3.2, the recommended condition rating analysis may require otherwise. The General Infrastructure Reserves totaling approximately $3.7 million are available (ending December 31st, 2012) for use by applicable asset categories during the phase-in period to full funding. This, coupled with Tillsonburg’s judicious use of debt in the past, allows the scenarios to assume that, if required, available reserves and debt capacity can be used for high priority and emergency infrastructure investments in the short to medium-term. 132 7 2.0 Introduction This Asset Management Plan meets all provincial requirements as outlined within the Ontario Building Together Guide for Municipal Asset Management Plans. As such, the following key sections and content are included: 1. Executive Summary and Introduction 2. State of the Current Infrastructure 3. Desired Levels of Service 4. Asset Management Strategy 5. Financial Strategy The following asset classes are addressed: 1. Road Network: Paved and gravel 2. Bridges & Culverts: Bridges and large culverts with a span greater than 3m 3. Storm Sewer Network: Storm sewer mains, manholes Municipalities are encouraged to cover all asset classes in future iterations of the AMP. This asset management plan will serve as a strategic, tactical, and financial document ensuring the management of the municipal infrastructure follows sound asset management practices and principles, while optimizing available resources and establishing desired levels of service. At a strategic level, within the State of the Current Infrastructure section, it will identify current and future challenges that should be addressed in order to maintain sustainable infrastructure services on a long-term, life cycle basis. It will outline a Desired Level of Service (LOS) Framework for each asset category to assist the development and tracking of LOS through performance measures across strategic, financial, tactical, operational, and maintenance activities within the organization. At a tactical level, within the Asset Management Strategy section, it will develop an implementation process to be applied to the needs-identification and prioritization of renewal, rehabilitation, and maintenance activities, resulting in a 10 year plan that will include growth projections. At a financial level, within the Financial Strategy section, a strategy will be developed that fully integrates with other sections of this asset management plan, to ensure delivery and optimization of the 10 year infrastructure budget. Through the development of this plan, all data, analysis, life cycle projections, and budget models will be provided through the Public Sector Digest’s CityWide suite of software products. The software and plan will be synchronized, will evolve together, and therefore, will allow for ease of updates, and annual reporting of performance measures and overall results. This will allow for continuous improvement of the plan and its projections. It is therefore recommended that the plan be revisited and updated on an annual basis, particularly as more detailed information becomes available. 2.1 Importance of Infrastructure Municipalities throughout Ontario, large and small, own a diverse portfolio of infrastructure assets that in turn provide a varied number of services to their citizens. The infrastructure, in essence, is a conduit for the various public services the municipality provides, e.g., the roads supply a transportation network service; the water infrastructure supplies a clean drinking water service. A community’s prosperity, economic development, competitiveness, image, and overall quality of life are inherently and explicitly tied to the performance of its infrastructure. 133 8 2.2 Asset Management Plan (AMP) - Relationship to Strategic Plan The major benefit of strategic planning is the promotion of strategic thought and action. A strategic plan spells out where an organization wants to go, how it’s going to get there, and helps decide how and where to allocate resources, ensuring alignment to the strategic priorities and objectives. It will help identify priorities and guide how municipal tax dollars and revenues are spent into the future. The strategic plan usually includes a vision and mission statement, and key organizational priorities with alignment to objectives and action plans. Given the growing economic and political significance of infrastructure, the asset management plan will become a central component of most municipal strategic plans, influencing corporate priorities, objectives, and actions. 2.3 AMP - Relationship to other Plans An asset management plan is a key component of the municipality’s planning process linking with multiple other corporate plans and documents. For example: The Official Plan – The AMP should utilize and influence the land use policy directions for long-term growth and development as provided through the Official Plan. Long Term Financial Plan – The AMP should both utilize and conversely influence the financial forecasts within the long- term financial plan. Capital Budget – The decision framework and infrastructure needs identified in the AMP form the basis on which future capital budgets are prepared. Infrastructure Master Plans – The AMP will utilize goals and projections from infrastructure master plans and in turn will influence future master plan recommendations. By-Laws, standards, and policies – The AMP will influence and utilize policies and by-laws related to infrastructure management practices and standards. Regulations – The AMP must recognize and abide by industry and senior government regulations. Business Plans – The service levels, policies, processes, and budgets defined in the AMP are incorporated into business plans as activity budgets, management strategies, and performance measures. 134 9 INFRASTRUCTURE–STRATEGIC PLAN Strategic Plan Goals, Asset Performance & Community Expectations, Legislated Requirements STATE OF THE CURRENT INFRASTRUCTURE REPORTS Asset Inventory, Valuation, Current Condition/Performance, Sustainable Funding Analysis EXPECTED LEVELS OF SERVICE Key Performance Indicators, Performance Measures, Public Engagement ASSET MANAGEMENT STRATEGY Lifecycle Analysis, Growth Requirements, Risk Management, Project Prioritization Methodologies FINANCING STRATEGY Available Revenue Analysis, Develop Optional Scenarios, Define Optimal Budget & Financial Plan AMP PERFORMANCE REPORTING Project Implementation, Key Performance Measures Tracked, Progress Reported to Senior Management & Council Ar e l e v e l s o f s e r v i c e a c h i e v a b l e ? 2.4 Purpose and Methodology The following diagram depicts the approach and methodology, including the key components and links between those components that embody this asset management plan: It can be seen from the above that a municipality’s infrastructure planning starts at the corporate level with ties to the strategic plan, alignment to the community’s expectations, and compliance with industry and government regulations. Then, through the State of the Infrastructure analysis, overall asset inventory, valuation, condition and performance are reported. Also, a life cycle analysis of needs for each infrastructure class is conducted. This analysis yields the sustainable funding level, compared against actual current funding levels, and determines whether there is a funding surplus or deficit for each infrastructure program. The overall measure of condition and available funding is finally scored for each asset class and presented as a star rating (similar to the hotel star rating) and a letter grade (A-F) within the Infrastructure Report card. From the lifecycle analysis above, the municipality gains an understanding of the level of service provided today for each infrastructure class and the projected level of service for the future. The next section of the AMP provides a framework for a municipality to develop a Desired Level of Service (or target service level) and develop performance measures to track the year-to-year progress towards this established target level of service. 135 10 The Asset Management Strategy then provides a detailed analysis for each infrastructure class. Included in this analysis are best practices and methodologies from within the industry which can guide the overall management of the infrastructure in order to achieve the desired level of service. This section also provides an overview of condition assessment techniques for each asset class; life cycle interventions required, including those interventions that yield the best return on investment; and prioritization techniques, including risk quantification, to determine which priority projects should move forward into the budget first. The Financing Strategy then fully integrates with the asset management strategy and asset management plan, and provides a financial analysis that optimizes the 10 year infrastructure budget. All revenue sources available are reviewed, such as the tax levy, debt allocations, rates, reserves, grants, gas tax, development charges, etc., and necessary budget allocations are analysed to inform and deliver the infrastructure programs. Finally, in subsequent updates to this AMP, actual project implementation will be reviewed and measured through the established performance metrics to quantify whether the desired level of service is achieved or achievable for each infrastructure class. If shortfalls in performance are observed, these will be discussed and alternate financial models or service level target adjustments will be presented. 136 11 INFRASTRUCTURE–STRATEGIC PLAN Strategic Plan Goals, Asset Performance & Community Expectations, Legislated Requirements STATE OF THE CURRENT INFRASTRUCTURE REPORTS Asset Inventory, Valuation, Current Condition/Performance, Sustainable Funding Analysis EXPECTED LEVELS OF SERVICE Key Performance Indicators, Performance Measures, Public Engagement ASSET MANAGEMENT STRATEGY Lifecycle Analysis, Growth Requirements, Risk Management, Project Prioritization Methodologies FINANCING STRATEGY Available Revenue Analysis, Develop Optional Scenarios, Define Optimal Budget & Financial Plan AMP PERFORMANCE REPORTING Project Implementation, Key Performance Measures Tracked, Progress Reported to Senior Management & Council Ar e l e v e l s o f s e r v i c e a c h i e v a b l e ? 2.5 CityWide Software alignment with AMP The plan will be built and developed hand in hand with a database of municipal infrastructure information in the CityWide software suite of products. The software will ultimately contain the municipality’s asset base, valuation information, life cycle activity predictions, costs for activities, sustainability analysis, project prioritization parameters, key performance indicators and targets, 10 year asset management strategy, and the financial plan to deliver the required infrastructure budget. The software and plan will be synchronized, and will evolve together year-to-year as more detailed information becomes available. This synchronization will allow for ease of updates, modeling and scenario building, and annual reporting of performance measures and results. This will allow for continuous improvement of the plan and its projections. It is therefore recommended that it is revisited and updated on an annual basis. The following diagram outlines the various CityWide software products and how they align to the various components of the AMP. 137 12 3.0 State of the Infrastructure (SOTI) 3.1 Objective and Scope Objective: To identify the state of the municipality’s infrastructure today and the projected state in the future if current funding levels and management practices remain status quo. The analysis and subsequent communication tools will outline future asset requirements, will start the development of tactical implementation plans, and ultimately assist the organization to provide cost effective sustainable services to the current and future community. The approach was based on the following key industry state of the infrastructure documents: Canadian Infrastructure Report Card City of Hamilton’s State of the Infrastructure reports Other Ontario Municipal State of the Infrastructure reports The above reports are themselves based on established principles found within key, industry best practices documents such as: The National Guide for Sustainable Municipal Infrastructure (Canada) The International Infrastructure Management Manual (Australia / New Zealand) American Society of Civil Engineering Manuals (U.S.A.) Scope: Within this State of the Infrastructure report, a high level review will be undertaken for the following asset classes: 1. Road Network: Paved and gravel 2. Bridges & Culverts: Bridges and large culverts with a span greater than 3m 3. Storm Sewer Network: Storm sewer mains, manholes 3.2 Approach The asset classes above were reviewed at a very high level due to the nature of data and information available. Subsequent detailed reviews of this analysis are recommended on an annual basis, as more detailed conditions assessment information becomes available for each infrastructure program. 3.2.1 Base Data In order to understand the full inventory of infrastructure assets within Tillsonburg, all tangible capital asset data, as collected to meet the PSAB 3150 accounting standard, was loaded into the CityWide Tangible Asset™ software module. This data base now provides a detailed and summarized inventory of assets as used throughout the analysis within this report and the entire Asset Management Plan. 3.2.2 Asset Deterioration Review The town has supplied condition data for all of the road network and the large bridge and culvert structures. The condition data recalculates a new performance age for each individual asset and, as such, a far more accurate prediction of future replacement can be established and applied to the future investment requirements within this AMP report. For those assets without condition data, the storm assets, the deterioration review will rely on the ‘straight line’ amortization schedule approach provided from the accounting data. Although this approach is based on age data and useful life projections, and is not as accurate as the use of detailed condition data, it does provide a relatively reliable benchmark of future requirements. 138 13 3.2.3 Identify Sustainable Investment Requirements A gap analysis was performed to identify sustainable investment requirements for each asset category. Information on current spending levels and budgets was acquired from the organization, future investment requirements were calculated, and the gap between the two was identified. The above analysis is performed by using investment and financial planning models, and life cycle costing analysis, embedded within the CityWide software suite of applications. 3.2.4 Asset Rating Criteria Each asset category will be rated on two key dimensions: Condition vs. Performance: Based on the condition of the asset today and how well performs its function. Funding vs. Need: Based on the actual investment requirements to ensure replacement of the asset at the right time, versus current spending levels for each asset group. 3.2.5 Infrastructure Report Card The dimensions above will be based on a simple 1–5 star rating system, which will be converted into a letter grading system ranging from A-F. An average of the two ratings will be used to calculate the combined rating for each asset class. The outputs for all municipal assets will be consolidated within the CityWide software to produce one overall Infrastructure Report Card showing the current state of the assets. Grading Scale: Condition vs. Performance What is the condition of the asset today and how well does it perform its function? Star Rating Letter Grade Color Indicator Description A Excellent: No noticeable defects B Good: Minor deterioration C Fair: Deterioration evident, function is affected D Poor: Serious deterioration. Function is inadequate F Critical: No longer functional. General or complete failure Grading Scale: Funding vs. Need Based on the actual investment requirements to ensure replacement of the asset at the right time, versus current spending levels for each asset group. Star Rating Letter Grade Description A Excellent: 91 to 100% of need B Good: 76 to 90% of need C Fair: 61 to 75% of need D Poor: 46 – 60% of need F Critical: under 45% of need 139 14 3.2.6 General Methodology and Reporting Approach The report will be based on the seven key questions of asset management as outlined within the National Guide for Sustainable Municipal Infrastructure: What do you own and where is it? (inventory) What is it worth? (valuation / replacement cost) What is its condition / remaining service life? (function & performance) What needs to be done? (maintain, rehabilitate, replace) When do you need to do it? (useful life analysis) How much will it cost? (investment requirements) How do you ensure sustainability? (long-term financial plan) The above questions will be answered for each individual asset category in the following report sections. 140 15 3.3 Road Network Infrastructure F INFRASTRUCTURE REPORT CARD GRADE 3.3 Road Network 141 16 3.3 Road Network Note: The financial analysis in this section includes paved roads. Gravel roads are excluded from the capital replacement analysis, as by nature, they require perpetual maintenance activities and funding. However, the gravel roads have been included in the Road Network inventory and replacement value tables. There is also further information regarding gravel roads in section 3.4 “Gravel Roads – Maintenance Requirements” of this AMP. This has less relevance for Tillsonburg as, based on quantity, less than 1% of the road network comprises gravel. 3.3.1 What do we own? As shown in the summary table below, the entire network comprises approximately 870 centreline km square of road. Road Network Inventory Asset Type Asset Component Quantity/Units Road Network Arterial 18,262m Collector 14,516m Local 78,643m Sidewalks 87,789m Traffic Signs 19 units Street Lights 2,417 units Signalized Intersections 4 units Guide Rails 2,919m The road network data was extracted from the Tangible Capital Asset module of the CityWide software suite. 3.3.2 What is it worth? The estimated replacement value of the road network, in 2012 dollars, is approximately $118 million. The cost per household for the road network is $16,613 based on 7,065 households. Road Network Replacement Value Asset Type Asset Component Quantity/Units 2012 Unit Replacement Cost 2012 Overall Replacement Cost Road Network Arterial 18,262m $1,260/m $23,005,511 Collector commercial/industrial 6,553m $913/m $5,984,357 Collector residential 7,963m $873/m $6,953,631 Local commercial/industrial 12,511m $846/m $10,580,186 Local residential 66,132m $805/m $53,225,992 Gravel Surface 1,726m $357/m $615,598 Sidewalks 87,789m $115/m $10,059,729 Traffic Signs 19 units $17,590/unit $334,214 Street Lights 2,417 units $2,478/unit $5,989,326 Signalized Intersections 4 units $177,589/unit $710,356 Guide Rails 2,919m $180/m $524,873 $117,983,773 142 17 The pie chart below provides a breakdown of each of the network components to the overall system value. Road Network Components 3.3.3 What condition is it in? The majority, 70%, of the municipality’s road network is in fair to excellent condition, with the remaining 30% in poor to critical condition. As such, the municipality received a Condition vs. Performance rating of ‘C’. Road Network Condition by Length (m) 143 18 3.3.4 What do we need to do to it? There are generally four distinct phases in an asset’s life cycle that require specific types of attention and lifecycle activity. These are presented at a high level for the road network below. Further detail is provided in the “Asset Management Strategy” section of this AMP. Addressing Asset Needs Phase Lifecycle Activity Asset Life Stage Minor maintenance Activities such as inspections, monitoring, sweeping, winter control, etc. 1st Qtr Major maintenance Activities such as repairing pot holes, grinding out roadway rutting, and patching sections of road. 2nd Qtr Rehabilitation Rehabilitation activities such as asphalt overlays, mill and paves, etc. 3rd Qtr Replacement Full road reconstruction 4th Qtr 3.3.5 When do we need to do it? For the purpose of this report, ‘useful life’ data for each asset class was obtained from the accounting data within the CityWide software database. This proposed useful life is used to determine replacement needs of individual assets. These needs are calculated and quantified in the system as part of the overall financial requirements. Asset Useful Life in Years Asset Type Asset Component Useful Life Road Network Arterial 35 Collector commercial/industrial 35 Collector commercial/industrial 42 Collector residential 42 Local commercial/industrial 50 Local residential 50 Sidewalks 40 Traffic Signs 10 Traffic Signs 35 Street Lights 30 Signalized Intersections 20 Signalized Intersections 50 Guide Rails 40 144 19 Road Network Replacement Profile (excludes gravel roads) 3.3.6 How much money do we need? The analysis completed to determine capital revenue requirements was based on the following constraints and assumptions: 1. Replacement costs are based upon the unit costs identified within the “What is it worth” section. 2. The timing for individual road replacement was defined by the replacement year as described in the “When do you need to do it?” section. 3. All values are presented in 2012 dollars. 4. The analysis was run for a 50 year period to ensure all assets went through at least one iteration of replacement, therefore providing a sustainable projection. 3.3.7 How do we reach sustainability? Based upon the above parameters, the average annual revenue required to sustain Tillsonburg’s road network is approximately $2,482,000. Based on Tillsonburg’s current annual funding of $455,000, there is an annual deficit of $2,027,000. Given this deficit, the municipality received a Funding vs. Need rating of ‘F’. The following graph illustrates the expenditure requirements in five year increments against the sustainable funding threshold line. 145 20 Sustainable Funding Requirements (excludes gravel roads) In conclusion, based on field condition assessment data, there is a significant portion of the road network in poor and critical condition, generating a backlog of needs totaling approximately $21 million in the next 5 years. The condition assessment data, along with risk management strategies, should be reviewed together to aid in prioritizing overall needs for rehabilitation and replacement and assist with optimizing the long and short term budgets. Further detail is outlined within the “asset management strategy” section of this AMP. 3.3.8 Recommendations The municipality received an overall rating of ‘F’ for its road network, calculated from the Condition vs. Performance and the Funding vs. Need ratings. Accordingly, we recommend the following: 1. The condition assessment data, along with risk management strategies, should be reviewed together to aid in prioritizing overall needs for rehabilitation and replacement. 2. A tailored life cycle activity framework should also be developed by the Town as outlined further within the “Asset Management Strategy” section of this AMP. 3. Once the above studies are complete or underway, the condition data should be loaded into the CityWide software and an updated “current state of the infrastructure” analysis should be generated. 4. An appropriate % of asset replacement value should be used for operations and maintenance activities on an annual basis. This should be determined through a detailed analysis of O & M activities and be added to future AMP reporting. 5. The Infrastructure Report Card should be updated on an annual basis. 146 21 3.4 Gravel Roads – Maintenance Requirements 3.4.1 Introduction Paved roads are usually designed and constructed with careful consideration given to the correct shape of the cross section. Once paving is complete the roadway will keep its general shape for the duration of its useful life. Gravel roads are quite different. Many have poor base construction, will be prone to wheel track rutting in wet weather, and traffic will continually displace gravel from the surface to the shoulder area, even the ditch, during wet and dry weather. Maintaining the shape of the road surface and shoulder is essential to ensure proper performance and to provide a sufficient level of service for the public. Therefore, the management of gravel roads is not through major rehabilitation and replacement, but rather through good perpetual maintenance and some minor rehabilitation which depend on a few basic principles: proper techniques and cycles for grading; the use and upkeep of good surface gravel; and, dust abatement and stabilization. 3.4.2 Maintaining a Good Cross Section In order to maintain a gravel road properly, a good cross section is required consisting of a crowned driving surface, a shoulder with correct slope, and a ditch. The crown of the road is essential for good drainage. A road with no crown, or insufficient crown, will cause water to collect on the surface during a rainfall, will soften the crust, and ultimately lead to rutting which will become severe if the subgrade also softens. Even if the subgrade remains firm, traffic will cause depressions in the road where water collects and the road will develop potholes. It is a generally accepted industry standard that 1.25cm per 12cm (one foot), approximately 4%, on the cross slope is ideal for road crown. The road shoulder serves some key functions. It supports the edge of the travelled portion of the roadway, provides a safe area for drivers to regain control of vehicles if they are forced to leave the road, and finally, carries water further away from the road surface. The shoulder should ideally meet the edge of the roadway at the same elevation and then slope away gradually towards the ditch. The ditch is the most important and common drainage structure for gravel roads. Every effort should be made to maintain a minimal ditch. The ditch should be kept free of obstructions such as eroded soil, vegetation or debris. 147 22 3.4.3 Grading Operations Routine grading is the activity that ensures gravel roadways maintain a good cross section or proper profile. The three key components to good grading are: operating speed, blade angle, and blade pitch. Excessive operating speed can cause many problems such as inconsistent profile, and blade movement or bouncing that can cut depressions and leave ridges in the road surface. It is generally accepted that grader speed should not exceed 8km per hour. The angle of the blade is also critical for good maintenance and industry standards suggest the optimal angle is between 30 and 45 degrees. Finally, the correct pitch or tilt of the blade is very important. If the blade is pitched back too far, the material will tend to build up in front of the blade and will not fall forward, which mixes the materials, and will move along and discharge at the end of the blade. 3.4.4 Good Surface Gravel Once the correct shape is established on a roadway and drainage matters are taken care of, attention must be given to the placement of good gravel. Good surface gravel requires a percentage of stone which gives strength to support loads, particularly in wet weather. It also requires a percentage of sand size particles to fill the voids between the stones which provide stability. And finally, a percentage of plastic fines are needed to bind the material together which allows a gravel road to form a crust and shed water. Typical municipal maintenance routines will include activities to ensure a good gravel surface through both spot repairs (often annually) and also re-graveling of roadways (approximately every five years). 3.4.5 Dust Abatement and stabilization A typical maintenance activity for gravel roads also includes dust abatement and stabilization. All gravel roads will give off dust at some point, although the amount of dust can vary greatly from region to region. The most common treatment to reduce dust is the application of Calcium Chloride, in flake or liquid form, or Magnesium Chloride, generally just in liquid form. Of course, there are other products on the market as well. Calcium and Magnesium Chloride can be very effective if used properly. They are hygroscopic products which draw moisture from the air and keep the road surface constantly damp. In addition to alleviating dust issues, the continual dampness also serves to maintain the loss of fine materials within the gravel surface, which in turn helps maintain road binding and stabilization. A good dust abatement program can actually help waterproof and bind the road, in doing so can reduce gravel loss, and therefore, reduce the frequency of grading. 3.4.6 The Cost of Maintaining Gravel Roads We conducted an industry review to determine the standard cost for maintaining gravel roads. However, it became apparent that no industry standard exists for either the cost of maintenance or for the frequency at which the maintenance activities should be completed. Presented below, as a guideline only, are two studies on the maintenance costs for gravel roads: 3.4.7 Minnesota Study (2005) The first study is from the Minnesota Department of Transportation (MnDOT) Local Road Research Board (LRRB), where the researchers looked at historical and estimated cost data from multiple counties in Minnesota. The study team found that the typical maintenance schedule consisted of routine grading and re- graveling with two inches of new gravel every five years. They found that a typical road needed to be graded 21 times a year or three times a month from April – October, and the upper bound for re-graveling was five years for any road over 100 ADT; lower volume roads could possibly go longer. The calculated costs including materials, labour, and hauling totaled $1,400 per year or $67 per visit for the grading activity and $13,800 for the re-gravel activity every five years. The re-gravel included an estimate gravel cost of $7.00 per cubic yard and a 2.5” thick lift of gravel (to be compacted down to 2”). Therefore, they developed an average estimated annual maintenance cost for gravel roads at $4,160 per mile. This converts to $2,600 per km of roadway and if adjusted for inflation into 2012 dollars, using the Non- Residential Building Construction Price Index (NRBCPI), it would be $3,500. Reference: Jahren, Charles T. et. al. “Economics of Upgrading an Aggregate Road,” Minnesota Department of Transportation, St. Paul, Mn, January 2005. 148 23 3.4.8 South Dakota study (2004) This second study was conducted by South Dakota’s Department of Transportation (SDDOT). The default maintenance program for gravel roads from SDDOT’s report includes grading 50 times per year, re- graveling once every six years, and spot graveling once per year. The unit cost for grading was very similar to Minnesota at $65 per mile, re-gravel at $7,036 per mile and spot graveling or pothole repair at $2,420 per mile, totaling to an average annual maintenance cost of $6,843 per mile. Due to the frequency of the grading activity and the addition of the spot gravel maintenance, the SDDOT number is higher than Minnesota reported even though the re-gravel activity is reported at about half of the price in Minnesota. This converts to $4,277 per km of roadway and if adjusted for inflation into 2012 dollars, using the NRBCPI, it would be $5,758. Reference: Zimmerman, K.A. and A.S. Wolters. “Local Road Surfacing Criteria,” South Dakota Department of Transportation, Pierre, SD, June 2004. 3.4.9 Ontario Municipal Benchmarking Initiative (OMBI) One of the many metrics tracked through the Ontario Municipal Benchmarking Initiative is the “Operating costs for Unpaved (Loose top) Roads per lane Km.” As referenced from the OMBI data dictionary, this includes maintenance activities such as dust suppression, loose top grading, loose top gravelling, spot base repair and wash out repair. Of the six Ontario municipalities that included 2012 costs for this category, there is a wide variation in the reporting. The highest cost per lane km was $14,900 while the lowest cost was $397. The average cost was $6,300 per lane km. Assuming two lanes per gravel road to match the studies above, the Ontario OMBI average becomes $12,600 per km of roadway. Summary of Costs Source 2012 Maintenance Cost per km (adjusted for inflation using NRBCPI) Minnesota Study $3,500 South Dakota Study $5,758 OMBI Average (six municipalities) $12,600 3.4.10 Conclusion As discussed above, there are currently no industry standards in regards to the cost of gravel road maintenance and the frequency at which the maintenance activities should be completed. Also, there is no established benchmark cost for the maintenance of a km of gravel road and the numbers presented above will vary significantly due to the level of service or maintenance that’s provided (i.e., frequency of grading cycles and re-gravel cycles). Tillsonburg has a very small gravel road network and currently spends approximately $1,000 to maintain one lane km of gravel roadway. This appears to be significantly less than the typical budget limits as shown above. Of course, there are many variables in this analysis, therefore it is recommended that further study be undertaken to establish different cost options associated with different levels of service and that this be included with future updates to this AMP. 149 24 3.4 Bridges & Culverts D INFRASTRUCTURE REPORT CARD GRADE 3.5 Bridges & Culverts 150 25 3.5 Bridges & Culverts 3.5.1 What do we own? As shown in the summary table below, the municipality owns 10 bridges and 42 culverts. Bridges & Culverts Inventory Asset Type Asset Component Units Quantity Bridges & Culverts Bridges > 3m span 10 units 1,978.5m2 Culverts > 3m span 7 units 969.38m2 Culverts < 3m span 35 units 2,296.62m2 The bridges & culverts data was extracted from the Tangible Capital Asset module of the CityWide software suite. 3.5.2 What is it worth? The estimated replacement value of the municipality’s bridges & culverts, in 2012 dollars, is approximately $23 million. The cost per household for bridges & culverts is $3,269 based on 7,065 households. Bridges & Culverts Replacement Value Asset Type Asset Component Quantity 2012 Unit Replacement Cost 2012 Replacement Cost Bridges & Culverts Bridges > 3m span 1,978.5m2 $4,567/m2 $9,035,000 Culverts > 3m span 969.38m2 $3,301/m2 $3,200,000 Culverts < 3m span 2,296.62m2 $4,729/m2 $10,860,000 $23,095,000 151 26 The pie chart below provides a breakdown of each of the bridges & culverts components to the overall structures value. Bridges & Culverts Components 3.5.3 What condition is it in? The municipality’s bridges & culverts assets are all in fair to excellent condition. As such, the municipality received a Condition vs. Performance rating of ‘B’. Bridges and Culverts Condition by Area (square meters) 152 27 3.5.4 What do we need to do to it? There are generally four distinct phases in an asset’s life cycle. These are presented at a high level for the bridge and culvert structures below. Further detail is provided in the “Asset Management Strategy” section of this AMP. Addressing Asset Needs Phase Lifecycle Activity Asset Life Stage Minor Maintenance Activities such as inspections, monitoring, sweeping, winter control, etc. 1st Qtr Major Maintenance Activities such as repairs to cracked or spalled concrete, damaged expansion joints, bent or damaged railings, etc. 2nd Qtr Rehabilitation Rehabilitation events such as structural reinforcement of structural elements, deck replacements, etc. 3rd Qtr Replacement Full structure reconstruction 4th Qtr 3.5.5 When do we need to do it? For the purpose of this report, ‘useful life’ data for each asset class was obtained from the accounting data within the CityWide software database. This proposed useful life is used to determine replacement needs of individual assets, which are calculated in the system as part of the overall financial requirements. Asset Useful Life in Years Asset Type Asset Component Useful Life in Years Bridges & Culverts Concrete Structures 70 Steel Structures 80 HDPE 80 CSP/MPPA 40 The following graph shows the current projection of structure replacements based on the condition of the asset. Structures Replacement Profile 153 28 3.5.6 How much money do we need? The analysis completed to determine capital revenue requirements was based on the following constraints and assumptions: 1. Replacement costs are based upon the “What is it worth” section above. 2. The timing for individual structure replacement was defined by the replacement year as described in the “When do you need to do it?” section above. 3. All values are presented in 2012 dollars. 4. The analysis was run for a 80 year period to ensure all assets cycled through at least one iteration of replacement, therefore providing a sustainable projection. 3.5.7 How do we reach sustainability? Based upon the above assumptions, the average annual revenue required to sustain Tillsonburg’s bridges & culverts is $431,000. Based on Tillsonburg’s current annual funding of $0, there is an annual deficit of $431,000. As such, the municipality received a Funding vs. Need rating of ‘F’. The following graph presents five year blocks of expenditure requirements against the sustainable funding threshold line. Sustainable Revenue Requirement In conclusion, based on field condition assessment data, the majority of bridges and large structures are in excellent condition. There are needs to be addressed within the next 5 years totaling approximately $50,000. However, the needs over the next 10 years are approximately 7.4 million. As structures are a high liability asset the condition assessment data, along with risk management strategies, should be reviewed together to aid in prioritizing overall needs for rehabilitation and replacement and assist with optimizing the long and short term budgets. Further detail is outlined within the “asset management strategy” section of this AMP. 3.5.8 Recommendations The municipality received an overall rating of ‘D’ for its bridges & culverts, calculated from the Condition vs. Performance and the Funding vs. Need ratings. Accordingly, we recommend the following: 1. The condition assessment data, along with risk management strategies, should be reviewed together to aid in prioritizing overall needs for rehabilitation and replacement. 2. An appropriate % of asset replacement value should be used for operations and maintenance activities on an annual basis. This should be determined through a detailed analysis of O & M activities and added to future AMP reporting. 3. The Infrastructure Report Card should be updated on an annual basis. 154 29 3.7 Storm Sewer Infrastructure F INFRASTRUCTURE REPORT CARD GRADE 3.6 Storm Sewer Network 155 30 3.6 Storm Sewer Network 3.6.1 What do we own? The inventory components of the Storm Sewer Collection system are outlined in the table below. The entire network consists of approximately 61km of sewer mains. Storm Sewer Network Inventory (Detailed) Asset Type Asset Component Quantity Storm Sewer Network Storm Sewer Mains (200mm-450mm) 43,606.43m Storm Sewer Mains (525mm) 4,556.99m Storm Sewer Mains (600mm-825mm) 8,110.69m Storm Sewer Mains (900mm-1200mm) 4,450.6m Storm Sewer Manholes (600mm) 2 units Storm Sewer Manholes (1200mm) 698 units Storm Sewer Manholes (1500mm) 64 units Storm Sewer Manholes (1800mm) 48 units Storm Sewer Manholes (2400mm) 19 units Storm Sewer Manholes (3000mm) 4 units The storm sewer network data was extracted from the Tangible Capital Asset module of the CityWide software suite. 3.6.2 What is it worth? The estimated replacement value of the storm sewer network, in 2012 dollars, is approximately $20 million. The cost per household for the storm sewer network is $2,797 based on 7,065 households. Storm Replacement Value Asset Type Asset Component Quantity 2012 Unit Replacement Cost 2012 Overall Replacement Cost Storm Sewer Network Storm Sewer Mains (200mm- 450mm) 43,606.43m $250/m $10,901,608 Storm Sewer Mains (525mm) 4,556.99m $321/m $1,463,922 Storm Sewer Mains (600mm- 825mm) 8,110.69m $383/m $3,104,509 Storm Sewer Mains (900mm- 1200mm) 4,450.6m $387/m $1,720,778 Storm Sewer Manholes (600mm) 2 units $1,315/unit $2,630 Storm Sewer Manholes (1200mm) 698 units $2,807/unit $1,959,536 Storm Sewer Manholes (1500mm) 64 units $3,813/unit $244,046 Storm Sewer Manholes (1800mm) 48 units $5,085/unit $244,090 Storm Sewer Manholes (2400mm) 19 units $5,101/unit $96,912 Storm Sewer Manholes (3000mm) 4 units $6,168/unit $24,672 $19,762,703 156 31 The pie chart below provides a breakdown of each of the network components to the overall system value. Storm Sewer Network Components 3.6.3 What condition is it in? Approximately 76% of the municipality’s storm sewer mains are in fair to excellent condition. As such, the municipality received a Condition vs. Performance rating of ‘C’. Storm Sewer Mains Condition by Length (metres) 157 32 3.6.4 What do we need to do to it? There are generally four distinct phases in an assets life cycle. These are presented at a high level for the storm sewer network below. Further detail is provided in the “Asset Management Strategy” section of this AMP. Addressing Asset Needs Phase Lifecycle Activity Asset Age Minor Maintenance Activities such as inspections, monitoring, cleaning and flushing, zoom camera and CCTV inspections, etc. 1st Qtr Major Maintenance Activities such as repairing manholes and replacing individual small sections of pipe. 2nd Qtr Rehabilitation Rehabilitation events such as structural lining of pipes are extremely cost effective and provide an additional 75 plus years of life. 3rd Qtr Replacement Pipe replacements 4th Qtr 3.6.5 When do we need to do it? For the purpose of this report “useful life” data for each asset class was obtained from the accounting data within the CityWide software database. This proposed useful life is used to determine replacement needs of individual assets, which are calculated in the system as part of the overall financial requirements. Asset Useful Life in Years Asset Type Asset Component Useful Life in Years Storm Sewer Network Storm Sewer Mains (200mm-450mm) 60 Storm Sewer Manholes 60 As field condition information becomes available in time, the data should be loaded into the CityWide system in order to increasingly have a more accurate picture of current asset performance age and, therefore, future replacement requirements. The following graph shows the current projection of storm sewer main replacements based on the age of the asset only. Storm Sewer Network Replacement Profile 158 33 3.6.6 How much money do we need? The analysis completed to determine capital revenue requirements was based on the following assumptions: 1. Replacement costs are based upon the unit costs identified within the “What is it worth” section above. 2. The timing for individual storm sewer main replacement was defined by the replacement year as described in the “When do you need to do it?” section above. 3. All values are presented in 2012 dollars. 4. The analysis was run for a 60 year period to ensure all assets went through one iteration of replacement, therefore providing a sustainable projection. 3.6.7 How do we reach sustainability? Based upon the above assumptions, the average annual revenue required to sustain Tillsonburg’s storm sewer network is approximately $329,000. Based on Tillsonburg’s current annual funding of $0, there is an annual deficit of $329,000. As such, the municipality received a Funding vs. Need rating of ‘F’. Storm Sewer Main Replacement Profile In conclusion, Tillsonburg’s storm sewer collection network, based on age data only, is generally in fair to excellent condition, however, there are a significant percentage of mains in poor condition projected for replacement in the 10 – 15 year window. Funds should be directed towards a condition assessment program to gain a better understanding of current performance and actual field condition. A condition assessment program will aid in prioritizing overall needs for rehabilitation and replacement and will assist with optimizing the long term budget. Further detail is outlined within the “asset management strategy” section of this AMP. 3.6.8 Recommendations The municipality received an overall rating of ‘F’ for its storm sewer network, calculated from the Condition vs. Performance and the Funding vs. Need ratings. Accordingly, we recommend the following: 1. A condition assessment program should be established for the storm sewer network to gain a better understanding of current condition and performance as outlined further within the “Asset Management Strategy” section of this AMP. 2. Once the above study is complete or underway, the condition data should be loaded into the CityWide software and an updated “current state of the infrastructure” analysis should be generated. 3. An appropriate % of asset replacement value should be used for operations and maintenance activities on an annual basis. This should be determined through a detailed analysis of O & M activities and be added to future AMP reporting. 4. The Infrastructure Report Card should be updated on an annual basis. 159 34 4.0 Infrastructure Report Card CUMULATIVE GPA F Infrastructure Report Card The Town of Tillsonburg 1. Each asset category was rated on two key, equally weighted (50/50) dimensions: Condition vs. Performance, and Funding vs. Need. 2. See the “What condition is it in?” section for details on the grade of each asset category on the Condition vs. Performance dimension. 3. See the “How do we reach sustainability?” section for details on the grade of each asset category on the Funding vs. Need dimension. 4. The ‘Overall Rating’ below is the average of the two ratings. Asset Category Condition vs. Performance Funding vs. Need Overall Grade Comments Road Network C F F The majority, 70%, of the municipality’s road network is in fair to excellent condition, with the remaining 30% in poor to critical condition. The average annual revenue required to sustain Tillsonburg’s road network is approximately $2,482,000. Based on Tillsonburg’s current annual funding of $455,000, there is an annual deficit of $2,027,000. Bridges & Culverts B F D The municipality’s bridges & culverts assets are all in fair to excellent condition. The average annual revenue required to sustain Tillsonburg’s bridges & culverts is $431,000. Based on Tillsonburg’s current annual funding of $0, there is an annual deficit of $431,000. Storm Sewer Network C F F Approximately 75% of the municipality’s storm sewer mains are in fair to excellent condition. The average annual revenue required to sustain Tillsonburg’s storm sewer network is approximately $329,000. Based on Tillsonburg’s current annual funding of $0, there is an annual deficit of $329,000. 160 35 5.0 Desired Levels of Service Desired levels of service are high level indicators, comprising many factors, as listed below that establish defined quality thresholds at which municipal services should be supplied to the community. They support the organization’s strategic goals and are based on customer expectations, statutory requirements, standards, and the financial capabilities of a municipality to deliver those levels of service. Levels of Service are used: to inform customers of the proposed type and level of service to be offered; to identify the costs and benefits of the services offered; to assess suitability, affordability and equity of the services offered; as a measure of the effectiveness of the asset management plan as a focus for the AM strategies developed to deliver the required level of service In order for a municipality to establish a desired level of service, it will be important to review the key factors involved in the delivery of that service, and the interactions between those factors. In addition, it will be important to establish some key performance metrics and track them over an annual cycle to gain a better understanding of the current level of service supplied. Within this first Asset Management Plan, key factors affecting level of service will be outlined below and some key performance indicators for each asset type will be outlined for further review. This will provide a framework and starting point from which the municipality can determine future desired levels of service for each infrastructure class. 5.1 Key factors that influence a level of service: Strategic and Corporate Goals Legislative Requirements Expected Asset Performance Community Expectations Availability of Finances 5.1.1 Strategic and Corporate Goals Infrastructure levels of service can be influenced by strategic and corporate goals. Strategic plans spell out where an organization wants to go, how it’s going to get there, and helps decide how and where to allocate resources, ensuring alignment to the strategic priorities and objectives. It will help identify priorities and guide how municipal tax dollars and revenues are spent into the future. The level of importance that a community’s vision is dependent upon infrastructure, will ultimately affect the levels of service provided or those levels that it ultimately aspires to deliver. 5.1.2 Legislative Requirements Infrastructure levels of service are directly influenced by many legislative and regulatory requirements. For instance, the Safe Drinking Water Act, the Minimum Maintenance Standards for municipal highways, building codes, and the Accessibility for Ontarians with Disabilities Act are all legislative requirements that prevent levels of service from declining below a certain standard. 5.1.3 Expected Asset Performance A level of service will be affected by current asset condition, and performance and limitations in regards to safety, capacity, and the ability to meet regulatory and environmental requirements. In addition, the design life of the asset, the maintenance items required, the rehabilitation or replacement schedule of the asset, and the total costs, are all critical factors that will affect the level of service that can be provided. 5.1.4 Community Expectations Levels of services are directly related to the expectations that the general public has from the infrastructure. For example, the public will have a qualitative opinion on what an acceptable road looks like, and a quantitative one on how long it should take to travel between two locations. Infrastructure costs 161 36 are projected to increase dramatically in the future, therefore it is essential that the public is not only consulted, but also be educated, and ultimately make choices with respect to the service levels that they wish to pay for. 5.1.5 Availability of Finances Availability of finances will ultimately control all aspects of a desired level of service. Ideally, these funds must be sufficient to achieve corporate goals, meet legislative requirements, address an asset’s life cycle needs, and meet community expectations. Levels of service will be dictated by availability of funds or the Towns’ ability to increase funds, or the community’s willingness to pay. 5.2 Key Performance Indicators Performance measures or key performance indicators (KPIs) that track levels of service should be specific, measurable, achievable, relevant, and timebound (SMART). Many good performance measures can be established and tracked through the CityWide suite of software products. In this way, through automation, results can be reviewed on an annual basis and adjustments can be made to the overall asset management plan, including the desired level of service targets. In establishing measures, a good rule of thumb to remember is that maintenance activities ensure the performance of an asset and prevent premature aging, whereas rehab activities extend the life of an asset. Replacement activities, by definition, renew the life of an asset. In addition, these activities are constrained by resource availability (in particular, finances) and strategic plan objectives. Therefore, performance measures should not just be established for operating and maintenance activities, but also for the strategic, financial, and tactical levels of the asset management program. This will assist all levels of program delivery to review their performance as part of the overall level of service provided. This is a very similar approach to the “balanced score card” methodology, in which financial and non- financial measures are established and reviewed to determine whether current performance meets expectations. The “balanced score card”, by design, links day to day operations activities to tactical and strategic priorities in order to achieve an overall goal, or in this case, a desired level of service. The structure of accountability and level of indicator with this type of process is represented in the following table, modified from the InfraGuide’s best practice document, “Developing Indicators and Benchmarks” published in April 2003. 162 37 As a note, a caution should be raised over developing too many performance indicators that may result in data overload and lack of clarity. It is better to develop a select few that focus in on the targets of the asset management plan. Outlined below for each infrastructure class is a suggested service description, suggested service scope, and suggested performance indicators. These should be reviewed and updated in each iteration of the AMP. 5.3 Transportation Services 5.3.1 Service Description The town’s transportation network comprises approximately 870 square centreline km of road, 10 bridges, 17 large culverts, sidewalk, and the associated curbs, lane markings, traffic signals and street lights. Together, the above infrastructure enables the municipality to deliver transportation and pedestrian facility services and give people a range of options for moving about in a safe and efficient manner. STRATEGIC COUNCIL CAO CITY ENGINEER TACTICAL TACTICAL & OPERATIONAL OPERATIONAL WATER DEPARTMENT ROAD DEPARTMENT WATER MANAGER ROAD MANAGER LEVEL OF INDICATOR MUNICIPAL STRUCTURE 163 38 5.3.2 Scope of Services Movement – providing for the movement of people and goods. Access – providing access to residential, commercial, and industrial properties and other community amenities. Recreation –providing for recreational use, such as walking, cycling, or special events such as parades. 5.3.3 Performance Indicators (reported annually) Performance Indicators (reported annually) Strategic Indicators percentage of total reinvestment compared to asset replacement value completion of strategic plan objectives (related to transportation) Financial Indicators annual revenues compared to annual expenditures annual replacement value depreciation compared to annual expenditures total cost of borrowing compared to total cost of service revenue required to maintain annual network growth Tactical Indicators percentage of road network rehabilitated / reconstructed value of bridge / large culvert structures rehabilitated or reconstructed overall road condition index as a percentage of desired condition index overall bridge condition index as a percentage of desired condition index annual adjustment in condition indexes annual percentage of network growth percent of paved road lane km where the condition is rated poor or critical number of bridge / large culvert structures where the condition is rated poor or critical percentage of road network replacement value spent on operations and maintenance percentage of bridge / large culvert structures replacement value spent on operations and maintenance Operational Indicators percentage of road network inspected within last 5 years percentage of bridge / large culvert structures inspected within last two years operating costs for paved roads per lane km operating costs for gravel roads per lane km operating costs for bridge / large culvert structures per square metre number of customer requests received annually percentage of customer requests responded to within 24 hours 5.4 Storm Network 5.4.1 Service Description The storm water network comprises 61km of storm main and 835 manholes. Together, the above infrastructure enables the municipality to deliver a storm water collection service to the residents of the municipality. 164 39 5.4.2 Scope of services The removal of storm water through a collection network of storm sewer mains, and manholes 5.4.3 Performance Indicators (reported annually) Performance Indicators (reported annually) Strategic Indicators Percentage of total reinvestment compared to asset replacement value Completion of strategic plan objectives (related water / sanitary / storm) Financial Indicators Annual revenues compared to annual expenditures Annual replacement value depreciation compared to annual expenditures Total cost of borrowing compared to total cost of service Revenue required to maintain annual network growth Lost revenue from system outages Tactical Indicators Percentage of storm network rehabilitated / reconstructed Overall storm network condition index as a percentage of desired condition index Annual adjustment in condition indexes Annual percentage of growth in storm network Percentage of mains where the condition is rated poor or critical for each network Percentage of storm network replacement value spent on operations and maintenance Operational Indicators Percentage of storm network inspected Operating costs for storm water management Number of customer requests received annually Percentage of customer requests responded to within 24 hours per water / sanitary / storm network 165 40 6.0 Asset Management Strategy 6.1 Objective To outline and establish a set of planned actions, based on best practice, that will enable the assets to provide a desired and sustainable level of service, while managing risk, at the lowest life cycle cost. The Asset Management Strategy will develop an implementation process that can be applied to the needs identification and prioritization of renewal, rehabilitation, and maintenance activities. This will assist in the production of a 10 year plan, including growth projections, to ensure the best overall health and performance of the municipality’s infrastructure. This section includes an overview of condition assessment techniques for each asset class; the life cycle interventions required, including interventions with the best ROI; and prioritization techniques, including risk, to determine which priority projects should move forward into the budget first. 6.2 Non-Infrastructure Solutions and Requirements The municipality should explore, as requested through the provincial requirements, which non-infrastructure solutions should be incorporated into the budgets for the road, water, sewer (sanitary and storm), and bridges & culverts programs. Non- Infrastructure solutions are such items as studies, policies, condition assessments, consultation exercises, etc., that could potentially extend the life of assets or lower total asset program costs in the future. Typical solutions for a municipality include linking the asset management plan to the strategic plan, growth and demand management studies, infrastructure master plans, better integrated infrastructure and land use planning, public consultation on levels of service, and condition assessment programs. As part of future asset management plans, a review of these requirements should take place, and a portion of the capital budget should be dedicated for these items in each programs budget. It is recommended, under this category of solutions, that the municipality implement holistic condition assessment programs for their road, water, sanitary, and storm sewer networks. This will lead to higher understanding of infrastructure needs, enhanced budget prioritization methodologies, and a clearer path of what is required to achieve sustainable infrastructure programs. 6.3 Condition Assessment Programs The foundation of good asset management practice is based on having comprehensive and reliable information on the current condition of the infrastructure. Municipalities need to have a clear understanding regarding performance and condition of their assets, as all management decisions regarding future expenditures and field activities should be based on this knowledge. An incomplete understanding about an asset may lead to its premature failure or premature replacement. Some benefits of holistic condition assessment programs within the overall asset management process are listed below: Understanding of overall network condition leads to better management practices Allows for the establishment of rehabilitation programs Prevents future failures and provides liability protection Potential reduction in operation / maintenance costs Accurate current asset valuation Allows for the establishment of risk assessment programs Establishes proactive repair schedules and preventive maintenance programs Avoids unnecessary expenditures 166 41 Extends asset service life therefore improving level of service Improves financial transparency and accountability Enables accurate asset reporting which, in turn, enables better decision making Condition assessment can involve different forms of analysis such as subjective opinion, mathematical models, or variations thereof, and can be completed through a very detailed or very cursory approach. When establishing the condition assessment of an entire asset class, the cursory approach (metrics such as good, fair, poor, critical) is used. This will be a less expensive approach when applied to thousands of assets, yet will still provide up to date information, and will allow for detailed assessment or follow up inspections on those assets captured as poor or critical condition later. The following section outlines condition assessment programs available for road, bridge, sewer, and water networks that would be useful for the municipality. 6.3.1 Pavement Network Inspections Typical industry pavement inspections are performed by consulting firms using specialised assessment vehicles equipped with various electronic sensors and data capture equipment. The vehicles will drive the entire road network and typically collect two different types of inspection data – surface distress data and roughness data. Surface distress data involves the collection of multiple industry standard surface distresses, which are captured either electronically, using sensing detection equipment mounted on the van, or visually, by the van's inspection crew. Examples of surface distresses are: For asphalt surfaces alligator cracking; distortion; excessive crown; flushing; longitudinal cracking; map cracking; patching; edge cracking; potholes; ravelling; rippling; transverse cracking; wheel track rutting For concrete surfaces coarse aggregate loss; corner 'C' and 'D' cracking; distortion; joint faulting; joint sealant loss; joint spalling; linear cracking; patching; polishing; potholes; ravelling; scaling; transverse cracking Roughness data capture involves the measurement of the roughness of the road, measured by lasers that are mounted on the inspection van's bumper, calibrated to an international roughness index. Most firms will deliver this data to the client in a database format complete with engineering algorithms and weighting factors to produce an overall condition index for each segment of roadway. This type of scoring database is ideal for upload into the CityWide software database, in order to tag each road with a present condition and then further life cycle analysis to determine what activity should be completed on which road, in what timeframe, and to calculate the cost for the work will be completed within the CityWide system. The above process is an excellent way to capture road condition as the inspection trucks will provide detailed surface and roughness data for each road segment, and often include video or street imagery. Another option for a cursory level of condition assessment is for municipal road crews to perform simple windshield surveys as part of their regular patrol. Many municipalities have created data collection inspection forms to assist this process and to standardize what presence of defects would constitute a good, fair, poor, or critical score. Lacking any other data for the complete road network, this can still be seen as a good method and will assist greatly with the overall management of the road network. The CityWide Works software has a road patrol component built in that could capture this type of inspection data during road patrols in the field, enabling later analysis of rehabilitation and replacement needs for budget development. It is recommended that the municipality establish a pavement condition assessment program and that a portion of capital funding is dedicated to this. 167 42 6.3.2 Bridges & Culverts (greater than 3m) Inspections Ontario municipalities are mandated by the Ministry of Transportation to inspect all structures that have a span of 3 metres or more, according to the OSIM (Ontario Structure Inspection Manual). At present, in the municipality, there are 17 structures that meet this criterion. Structure inspections must be performed by, or under the guidance of, a structural engineer, must be performed on a biennial basis (once every two years), and include such information as structure type, number of spans, span lengths, other key attribute data, detailed photo images, and structure element by element inspection, rating and recommendations for repair, rehabilitation, and replacement. The best approach to develop a 10 year needs list for the municipality’s relatively small structure portfolio would be to have the structural engineer who performs the inspections to develop a maintenance requirements report, and rehabilitation and replacement requirements report as part of the overall assignment. In addition to refining the overall needs requirements, the structural engineer should identify those structures that will require more detailed investigations and non-destructive testing techniques. Examples of these investigations are: Detailed deck condition survey Non-destructive delamination survey of asphalt covered decks Substructure condition survey Detailed coating condition survey Underwater investigation Fatigue investigation Structure evaluation Through the OSIM recommendations and additional detailed investigations, a 10 year needs list will be developed for the municipality’s bridges. The 10 year needs list developed could then be further prioritized using risk management techniques to better allocate resources. Also, the results of the OSIM inspection for each structure, whether BCI (bridge condition index) or general condition (good, fair, poor, critical) should be entered into the CityWide software to update results and analysis for the development of the budget. 6.3.3 Sewer Network Inspections (Sanitary & Storm) The most popular and practical type of sanitary and storm sewer assessment is the use of Closed Circuit Television Video (CCTV). The process involves a small robotic crawler vehicle with a CCTV camera attached that is lowered down a maintenance hole into the sewer main to be inspected. The vehicle and camera then travels the length of the pipe providing a live video feed to a truck on the road above where a technician / inspector records defects and information regarding the pipe. A wide range of construction or deterioration problems can be captured including open/displaced joints, presence of roots, infiltration & inflow, cracking, fracturing, exfiltration, collapse, deformation of pipe and more. Therefore, sewer CCTV inspection is a very good tool for locating and evaluating structural defects and general condition of underground pipes. Even though CCTV is an excellent option for inspection of sewers it is a fairly costly process and does take significant time to inspect a large volume of pipes. Another option in the industry today is the use of Zoom Camera equipment. This is very similar to traditional CCTV, however, a crawler vehicle is not used but in it’s a place a camera is lowered down a maintenance hole attached to a pole like piece of equipment. The camera is then rotated towards each connecting pipe and the operator above progressively zooms in to record all defects and information about each pipe. The downside to this technique is the further down the pipe the image is zoomed, the less clarity is available to accurately record defects and measurement. The upside is the process is far quicker and significantly less expensive and an assessment of the manhole can be provided as well. Also, it is important to note that 80% of pipe deficiencies generally occur within 20 metres of each manhole. The following is a list of advantages of utilizing Zoom Camera technology: A time and cost efficient way of examining sewer systems; Problem areas can be quickly targeted; 168 43 Can be complemented by a conventional camera (CCTV), if required afterwards; In a normal environment, 20 to 30 manholes can be inspected in a single day, covering more than 1,500 meters of pipe; Contrary to the conventional camera approach, cleaning and upstream flow control is not required prior to inspection; Normally detects 80% of pipe deficiencies, as most deficiencies generally occur within 20 meters of manholes. The following table is based on general industry costs for traditional CCTV inspection and Zoom Camera inspection; however, costs should be verified through local contractors. It is for illustrative purposes only but supplies a general idea of the cost to inspect Tillsonburg’s entire storm network. Sanitary and Sewer Inspection Cost Estimates Sewer Network Assessment Activity Cost Metres of Main / # of Manholes Total Storm Full CCTV $10 (per m) 58,000m $580,000 Zoom $300 (Per mh) 745 manholes $223,500 It can be seen from the above table that there is a significant cost savings achieved through the use of Zoom Camera technology. A good industry trend and best practice is to inspect the entire network using Zoom Camera technology and follow up on the poor and critical rated pipes with more detail using a full CCTV inspection. In this way, inspection expenditures are kept to a minimum, however, an accurate assessment on whether to rehabilitate or replace pipes will be provided for those with the greatest need. It is recommended that the municipality establish a sewer condition assessment program and that a portion of capital funding is dedicated to this. In addition to receiving a video and defect report of each pipe’s CCTV or Zoom camera inspection, many companies can now provide a database of the inspection results, complete with scoring matrixes that provide an overall general condition score for each pipe segment that has been assessed. Typically pipes are scored from 1 – 5, with 1 being a relatively new pipe and 5 being a pipe at the end of its design life. This type of scoring database is ideal for upload into the CityWide software database, in order to tag each pipe with a present condition and then further life cycle analysis to determine what activity should be done to which pipe, in what timeframe, and to calculate the cost for the work will be completed by the CityWide system. 169 44 6.4 AM Strategy – Life Cycle Analysis Framework An industry review was conducted to determine which life cycle activities can be applied at the appropriate time in an asset’s life, to provide the greatest additional life at the lowest cost. In the asset management industry, this is simply put as doing the right thing to the right asset at the right time. If these techniques are applied across entire asset networks or portfolios (e.g., the entire road network), the municipality could gain the best overall asset condition while expending the lowest total cost for those programs. 6.4.1 Paved Roads The following analysis has been conducted at a fairly high level, using industry standard activities and costs for paved roads. With future updates of this Asset Management Strategy, the municipality may wish to run the same analysis with a detailed review of municipality activities used for roads and the associated local costs for those work activities. All of this information can be input into the CityWide software suite in order to perform updated financial analysis as more detailed information becomes available. The following diagram depicts a general deterioration profile of a road with a 30 year life. As shown above, during the road’s life cycle there are various windows available for work activity that will maintain or extend the life of the asset. These windows are: maintenance; preventative maintenance; rehabilitation; and replacement or reconstruction. 170 45 The windows or thresholds for when certain work activities should be applied to also coincide approximately with the condition state of the asset as shown below: Asset Condition and Related Work Activity: Paved Roads Condition Condition Range Work Activity Excellent condition (Maintenance only phase) 100-76 maintenance only Good Condition (Preventative maintenance phase) 75 - 51 crack sealing emulsions Fair Condition (Rehabilitation phase) 50 -26 resurface - mill & pave resurface - asphalt overlay single & double surface treatment (for rural roads) Poor Condition (Reconstruction phase) 25 - 1 reconstruct - pulverize and pave reconstruct - full surface and base reconstruction Critical Condition (Reconstruction phase) 0 critical includes assets beyond their useful lives which make up the backlog. They require the same interventions as the “poor” category above. With future updates of this Asset Management Strategy the municipality may wish to review the above condition ranges and thresholds for when certain types of work activity occur, and adjust to better suit the municipality’s work program. Also note: when adjusting these thresholds, it actually adjusts the level of service provided and ultimately changes the amount of money required. These threshold and condition ranges can be easily updated with the CityWide software suite and an updated financial analysis can be calculated. These adjustments will be an important component of future Asset Management Plans, as the Province requires each municipality to present various management options within the financing plan. The table below outlines the costs for various road activities, the added life obtained for each, the condition range at which they should be applied, and the cost of 1 year added life for each (cost of activity / added life) in order to present an apples to apples comparison. Road Lifecycle Activity Options Treatment Average Unit Cost (per sq. m) Added Life (Years) Condition Range Cost Of Activity/Added Life Urban Reconstruction $205 30 25 - 0 $6.83 Urban Resurfacing $84 15 50 - 26 $5.60 Rural Reconstruction $135 30 25 - 0 $4.50 Rural Resurfacing $40 15 50 - 26 $2.67 Double Surface Treatment $25 10 50 - 26 $2.50 Routing & Crack Sealing (P.M) $2 3 75 - 51 $0.67 171 46 As can be seen in the table above, preventative maintenance activities such as routing and crack sealing have the lowest associated cost (per sq. m) in order to obtain one year of added life. Of course, preventative maintenance activities can only be applied to a road at a relatively early point in the life cycle. It is recommended that the municipality engage in an active preventative maintenance program for all paved roads and that a portion of the maintenance budget is allocated to this. Also, rehabilitation activities, such as urban and rural resurfacing or double surface treatments (tar and chip) for rural roads have a lower cost to obtain each year of added life than full reconstruction activities. It is recommended, if not in place already, that the municipality engages in an active rehabilitation program for urban and rural paved roads and that a portion of the capital budget is dedicated to this. Of course, in order to implement the above programs it will be important to also establish a general condition score for each road segment, established through standard condition assessment protocols as previously described. It is important to note that a “worst first” budget approach, whereby no life cycle activities other than reconstruction at the end of a roads life are applied, will result in the most costly method of managing a road network overall. 6.4.2 Gravel Roads The life cycle activities required for these roads are quite different from paved roads. Gravel roads require a cycle of perpetual maintenance, including general re-grading, reshaping of the crown and cross section, gravel spot and section replacement, dust abatement and ditch clearing and cleaning. Gravel roads can require frequent maintenance, especially after wet periods and when accommodating increased traffic. Wheel motion shoves material to the outside (as well as in-between travelled lanes), leading to rutting, reduced water-runoff, and eventual road destruction if unchecked. This deterioration process is prevented if interrupted early enough, simple re-grading is sufficient, with material being pushed back into the proper profile. As a high proportion of gravel roads can have a significant impact on the maintenance budget, it is recommended that with further updates of this asset management plan the municipality study the traffic volumes and maintenance requirements in more detail for its gravel road network. Similar studies elsewhere have found converting certain roadways to paved roads can be very cost beneficial especially if frequent maintenance is required due to higher traffic volumes. Roads within the gravel network should be ranked and rated using the following criteria: Usage - traffic volumes and type of traffic Functional importance of the roadway Known safety issues Frequency of maintenance and overall expenditures required Through the above type of analysis, and since Tillsonburg have so few gravel roads, a program could be introduced to convert certain gravel roadways into paved roads, reducing overall maintenance costs, and be brought forward into the long range budget. 6.4.3 Sanitary and Storm Sewers The following analysis has been conducted at a fairly high level, using industry standard activities and costs for sanitary and storm sewer rehabilitation and replacement. With future updates of this asset management strategy, the municipality may wish to run the same analysis with a detailed review of municipality activities used for sewer mains and the associated local costs for those work activities. All of this information can be input into the CityWide software suite in order to perform updated financial analysis as more detailed information becomes available. 172 47 The following diagram depicts a general deterioration profile of a sewer main with a 100 year life. As shown above, during the sewer main’s life cycle there are various windows available for work activity that will maintain or extend the life of the asset. These windows are: maintenance; major maintenance; rehabilitation; and replacement or reconstruction. The windows or thresholds for when certain work activities should be applied also coincide approximately with the condition state of the asset as shown below: Asset Condition and Related Work Activity: Sewer Main Condition Condition Range Work Activity Excellent condition (Maintenance only phase) 100-76 maintenance only (cleaning & flushing etc.) Good Condition (Preventative maintenance phase) 75 - 51 mahhole repairs small pipe section repairs Fair Condition (Rehabilitation phase) 50 -26 structural relining Poor Condition (Reconstruction phase) 25 - 1 pipe replacement Critical Condition (Reconstruction phase) 0 critical includes assets beyond their useful lives which make up the backlog. They require the same interventions as the “poor” category above. With future updates of this Asset Management Strategy the municipality may wish to review the above condition ranges and thresholds for when certain types of work activity occur, and adjust to better suit the municipality’s work program. Also note: when adjusting these thresholds, it actually adjusts the level of service provided and ultimately changes the amount of money required. These threshold and condition ranges can be easily updated with the CityWide software suite and an updated financial analysis can be calculated. These adjustments will be an important component of future Asset Management Plans, as the province requires each municipality to present various management options within the financing plan. 173 48 The table below outlines the costs, by pipe diameter, for various sewer main rehabilitation (lining) and replacement activities. The columns display the added life obtained for each activity, the condition range at which they should be applied, and the cost of 1 year added life for each (cost of activity / added life) in order to present an apples to apples comparison. Sewer Main Lifecycle Activity Options Category Cost (per m) Added Life Condition Range 1 year Added Life Cost (Cost / Added Life) Structural Rehab (m) 0 - 325mm $174.69 75 50 - 75 $2.33 325 - 625mm $283.92 75 50 - 75 $3.79 625 - 925mm $1,857.11 75 50 - 75 $24.76 > 925mm $1,771.34 75 50 - 75 $23.62 Replacement (m) $475.00 100 76 - 100 $4.75 325 - 625mm $725.00 100 76 - 100 $7.25 625 - 925mm $900.00 100 76 - 100 $9.00 > 925mm $1,475.00 100 76 - 100 $14.75 As can be seen in the above table, structural rehabilitation or lining of sewer mains is an extremely cost effective industry activity and solution for pipes with a diameter less than 625mm. The unit cost of lining is approximately one third of replacement and the cost to obtain one year of added life is half the cost. For Tillsonburg, this diameter range would account for over and 90% of storm mains. Structural lining has been proven through industry testing to have a design life (useful life) of 75 years, however, it is believed that liners will probably obtain 100 years of life (the same as a new pipe). For sewer mains with diameters greater than 625mm specialized liners are required and therefore the costs are no longer effective. It should be noted, however, that the industry is continually expanding its technology in this area and therefore future costs should be further reviewed for change and possible price reductions. It is recommended, if not in place already, that the municipality engage in an active structural lining program for sanitary and storm sewer mains and that a portion of the capital budget be dedicated to this. In order to implement the above, it will be important to also establish a condition assessment program to establish a condition score for each sewer main within the sanitary and storm collection networks, and therefore identify which pipes are good candidates for structural lining. 6.4.4 Bridges & Culverts (greater than 3m span) The best approach to develop a 10 year needs list for the municipality’s relatively small bridge structure portfolio would be to have the structural engineer who performs the inspections to develop a maintenance requirements report, a rehabilitation and replacement requirements report and identify additional detailed inspections as required. This approach is described in more detail within the “Bridges & Culverts (greater than 3m) Inspections” section above. 174 49 6.5 Growth and Demand Typically a municipality will have specific plans associated with population growth. It is essential that the asset management strategy should address not only the existing infrastructure, as above, but must include the impact of projected growth on defined project schedules and funding requirements. Projects would include the funding of the construction of new infrastructure, and/or the expansion of existing infrastructure to meet new demands. The municipality should enter these projects into the CityWide software in order to be included within the short and long term budgets as required. 6.6 Project Prioritization The above techniques and processes when established for the road, water, sewer networks and bridges will supply a significant listing of potential projects. Typically the infrastructure needs will exceed available resources and therefore project prioritization parameters must be developed to ensure the right projects come forward into the short and long range budgets. An important method of project prioritization is to rank each project, or each piece of infrastructure, on the basis of how much risk it represents to the organization. 6.6.1 Risk Matrix and Scoring Methodology Risk within the infrastructure industry is often defined as the probability (likelihood) of failure multiplied by the consequence of that failure. RISK = LIKELIHOOD OF FAILURE x CONSEQUENCE OF FAILURE The likelihood of failure relates to the current condition state of each asset, whether they are in excellent, good, fair, poor or critical condition, as this is a good indicator regarding their future risk of failure. The consequence of failure relates to the magnitude, or overall effect, that an asset’s failure will cause. For instance, a small diameter water main break in a sub division may cause a few customers to have no water service for a few hours, whereby a large trunk water main break outside a hospital could have disastrous effects and would be a front page news item. The following table represents the scoring matrix for risk: All of the municipality’s assets analyzed within this asset management plan have been given both a likelihood of failure score and a consequence of failure score within the CityWide software. 175 50 The following risk scores have been developed at a high level for each asset class within the CityWide software system. It is recommended that the municipality undertake a detailed study to develop a more tailored suite of risk scores, particularly in regards to the consequence of failure, and that this be updated within the CityWide software with future updates to this Asset Management Plan. The current scores that will determine budget prioritization currently within the system are as follows: All assets: The Likelihood of Failure score is based on the condition of the assets: Likelihood of Failure: All Assets Asset condition Likelihood of failure Excellent condition Score of 1 Good condition Score of 2 Fair condition Score of 3 Poor condition Score of 4 Critical condition Score of 5 Bridges (based on valuation): The consequence of failure score for this initial AMP is based upon the replacement value of the structure. The higher the value, probably the larger the structure and therefore probably the higher the consequential risk of failure: Consequence of Failure: Bridges Replacement Value Consequence of failure Up to $100k Score of 1 $101 to $200k Score of 2 $201 to $300k Score of 3 $301 to $400k Score of 4 $401k and over Score of 5 Roads (based on classification): The consequence of failure score for this initial AMP is based upon the road classification as this will reflect traffic volumes and number of people affected. Consequence of Failure: Roads Road Classification Consequence of failure Gravel Score of 1 Local residential Score of 2 Local commercial/industrial Score of 3 All Collectors Score of 4 All Arterials Score of 5 176 51 Storm Sewer (based on diameter): The consequence of failure score for this initial AMP is based upon pipe diameter as this will reflect potential upstream service area affected. Consequence of Failure: Storm Sewer Pipe Size Consequence of failure Less than 200mm Score of 1 201mm-450mm Score of 2 451mm-825mm Score of 3 826mm-1200mm Score of 4 1,201mm and over Score of 5 177 52 7.0 Financial Strategy 7.1 General overview of financial plan requirements In order for an AMP to be effectively put into action, it must be integrated with financial planning and long- term budgeting. The development of a comprehensive financial plan will allow Tillsonburg to identify the financial resources required for sustainable asset management based on existing asset inventories, desired levels of service and projected growth requirements. The following pyramid depicts the various cost elements and resulting funding levels that should be incorporated into AMP’s that are based on best practices. This report develops such a financial plan by presenting several scenarios for consideration and culminating with final recommendations. As outlined below, the scenarios presented model different combinations of the following components: a) the financial requirements (as documented in the SOTI section of this report) for: existing assets existing service levels requirements of contemplated changes in service levels (none identified for this plan) requirements of anticipated growth (none identified for this plan) b) use of traditional sources of municipal funds: tax levies user fees reserves debt (no additional debt required for this AMP) development charges (not applicable) 178 53 c) use of non-traditional sources of municipal funds: reallocated budgets (not required for this AMP) partnerships (not applicable) procurement methods (no changes recommended) d) use of senior government funds: gas tax grants (not included in this plan due to Provincial requirements for firm commitments) If the financial plan component of an AMP results in a funding shortfall, the Province requires the inclusion of a specific plan as to how the impact of the shortfall will be managed. In determining the legitimacy of a funding shortfall, the Province may evaluate a municipality’s approach to the following: a) in order to reduce financial requirements, consideration has been given to revising service levels downward b) all asset management and financial strategies have been considered. For example: if a zero debt policy is in place, is it warranted? If not, the use of debt should be considered. do user fees reflect the cost of the applicable service? If not, increased user fees should be considered. This AMP includes recommendations that avoid long-term funding deficits. 7.2 Financial information relating to Tillsonburg’s AMP 7.2.1 Funding objective We have been asked to develop scenarios that would enable the Town of Tillsonburg to achieve full funding within 5 to 10 years for the following assets: tax funded assets - paved roads; bridges & culverts; storm sewers. Notes: 1. For the purposes of this AMP, we have excluded the category of gravel roads since gravel roads are a perpetual maintenance asset and end of life replacement calculations do not normally apply. If gravel roads are maintained properly they, in essence, could last forever. 2. Sanitary and water services are the responsibility of the upper tier government of Oxford County so are not included in this AMP. For each scenario developed we have included strategies, where applicable, regarding the use of tax revenues, user fees, reserves and debt. 7.3 Tax funded assets 7.3.1 Current funding position Tables 1 and 2 outline, by asset category, the Town of Tillsonburg’s average annual asset investment requirements, current funding positions and funding increases required to achieve full funding on assets funded by taxes. Table 1. Summary of Infrastructure Requirements & Current Funding Available Asset Category Average Annual Investment Required 2013 Annual Funding Available Annual Deficit Taxes (see note below) Gas Tax Other Total Paved Roads 2,482,000 0 455,000 0 455,000 2,027,000 Bridges & Culverts 431,000 0 0 0 0 431,000 Storm Sewers 329,000 0 0 0 0 329,000 Total 3,242,000 0 455,000 0 455,000 2,787,000 179 54 7.3.2. Recommendations for full funding The average annual investment requirement for paved roads, bridges/culverts and storm sewers is $3,242,000. Annual revenue currently allocated to these assets for capital purposes is $455,000 leaving an annual deficit of $2,787,000. To put it another way, these infrastructure categories are currently funded at 14% of their long-term requirements. In 2013, Tillsonburg has annual tax revenues of $12,391,879. As illustrated in table 2, without consideration of any other sources of revenue, full funding would require the following tax increase over time: Table 2. Tax Increases Required for Full Funding Asset Category Tax Increase Required for Full Funding Road Network 16.4% Bridges & Culverts 3.5% Storm Sewer Network 2.6% Total 22.5% As illustrated in table 6, Tillsonburg’s debt payments for these asset categories will be decreasing by $552,000 from 2013 to 2017 (5 years). Although not illustrated, debt payments will decrease by $636,000 from 2013 to 2022 (10 years). Our recommendations include capturing those decreases in cost and allocating them to the infrastructure deficit outlined above. Table 3 outlines this concept and presents a number of options: Table 3. Effect of Reallocating Decreases in Debt Costs Without Reallocation of Decreasing Debt Costs With Reallocation of Decreasing Debt Costs 5 Years 10 Years 5 Years 10 Years Infrastructure Deficit as Outlined in Table 1 2,787,000 2,787,000 2,787,000 2,787,000 Change in Debt Costs 0 0 -552,000 -636,000 Resulting Infrastructure Deficit 2,787,000 2,787,000 2,235,000 2,151,000 Resulting Tax Increase Required: Total Over Time 22.5% 22.5% 18% 17.4% Annually 4.5% 2.2% 3.6% 1.7% Considering all of the above information, we recommend the 10 year option in table 3 that includes the debt reallocations. This involves full funding being achieved over 10 years by: a) when realized, reallocating the debt cost reductions of $636,000 to the infrastructure deficit as outlined above. b) increasing tax revenues by 1.7% each year for the next 10 years solely for the purpose of phasing in full funding to the asset categories covered in this section of the AMP. c) allocating the $455,000 of gas tax revenue to the paved roads category. d) increasing existing and future infrastructure budgets by the applicable inflation index on an annual basis in addition to the deficit phase-in. 180 55 Notes: 1. As in the past, periodic senior government infrastructure funding will most likely be available during the phase-in period. By Provincial AMP rules, this funding cannot be incorporated into the AMP unless there are firm commitments in place. 2. We realize that raising tax revenues by the amounts recommended above for infrastructure purposes will be very difficult to do. However, considering a longer phase-in window may have even greater consequences in terms of infrastructure failure. Although this option achieves full funding on an annual basis in 10 years and provides financial sustainability over the period modeled (to 2050), the recommendations do require prioritizing capital projects to fit the resulting annual funding available. As of 2013, condition based data shows a pent up investment demand of $12,329,000 for paved roads, $0 for bridges & culverts. Age based data shows a pent up investment demand of $29,000 for storm sewers. Although our recommendations include no further use of debt, the results of the condition based analysis may require otherwise. 7.4 Use of debt For reference purposes, table 4 outlines the premium paid on a project if financed by debt. For example, a $1M project financed at 3.0%1 over 15 years would result in a 26% premium or $260,000 of increased costs due to interest payments. For simplicity, the table does not take into account the time value of money or the effect of inflation on delayed projects. Table 4. Total Interest Paid as a % of Project Costs Interest Rate Number Of Years Financed 5 10 15 20 25 30 7.0% 22% 42% 65% 89% 115% 142% 6.5% 20% 39% 60% 82% 105% 130% 6.0% 19% 36% 54% 74% 96% 118% 5.5% 17% 33% 49% 67% 86% 106% 5.0% 15% 30% 45% 60% 77% 95% 4.5% 14% 26% 40% 54% 69% 84% 4.0% 12% 23% 35% 47% 60% 73% 3.5% 11% 20% 30% 41% 52% 63% 3.0% 9% 17% 26% 34% 44% 53% 2.5% 8% 14% 21% 28% 36% 43% 2.0% 6% 11% 17% 22% 28% 34% 1.5% 5% 8% 12% 16% 21% 25% 1.0% 3% 6% 8% 11% 14% 16% 0.5% 2% 3% 4% 5% 7% 8% 0.0% 0% 0% 0% 0% 0% 0% It should be noted that current interest rates are near all-time lows. Sustainable funding models that include debt need to incorporate the risk of rising interest rates. The following graph shows where historical lending rates have been: 1 Current municipal Infrastructure Ontario rates for 15 year money is 3.2%. 181 56 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 Year Historical Prime Business Interest Rate As illustrated in table 4, a change in 15 year rates from 3% to 6% would change the premium from 26% to 54%. Such a change would have a significant impact on a financial plan. Tables 5 and 6 outline how the Town of Tillsonburg has historically used debt for investing in the asset categories as listed. There is currently $3,502,000 of debt outstanding for the assets covered by this AMP. In terms of overall debt capacity, At the end of 2012, Tillsonburg has $13,972,000 of total outstanding debt and $2,910,000 of total annual principal and interest payment commitments (this includes $1,046,000 balloon payment in 2013). These principal and interest payments are well within its provincially prescribed annual maximum of $4,236,000, before existing debt commitments. Table 5. Overview of Use of Debt Asset Category Current Debt Outstanding Use Of Debt In Last Five Years 2009 2010 2011 2012 2013 Paved Roads 3,083,000 2,116,000 639,000 0 0 0 Bridges & Culverts 167,000 193,000 0 0 0 0 Storm Sewers 252,000 0 0 0 0 0 Total AMP Debt 3,502,000 2,309,000 639,000 0 0 0 Non AMP Debt 10,470,000 7,334,0002 297,000 641,000 0 0 Overall Total 13,972,000 2,998,000 936,000 641,000 0 0 2 This amount includes Non-AMP debt issued prior to 2009 182 57 Table 6. Overview of Debt Costs Asset Category Principal & Interest Payments In Next Five Years 2013 2014 2015 2016 2017 Paved Roads 772,000 246,000 279,000 228,000 221,000 Bridges & Culverts 15,000 15,000 14,000 14,000 14,000 Storm Sewers 42,000 42,000 42,000 42,000 42,000 Total AMP Debt 829,000 303,000 335,000 284,000 277,000 Non AMP Debt 2,081,000 1,209,000 1,326,000 1,143,000 1,121,000 Overall Total 2,910,000 1,512,000 1,661,000 1,427,000 1,398,000 The revenue options outlined in this plan allow Tillsonburg to fully fund its long-term infrastructure requirements without further use of debt. However, as explained in section 7.3.2, the recommended condition rating analysis may require otherwise. 7.6 Use of reserves 7.6.1 Available reserves Reserves play a critical role in long-term financial planning. The benefits of having reserves available for infrastructure planning include: the ability to stabilize tax rates when dealing with variable and sometimes uncontrollable factors financing one-time or short-term investments accumulating the funding for significant future infrastructure investments managing the use of debt normalizing infrastructure funding requirements Tillsonburg does not allocate its reserves by infrastructure category. Table 7 outlines the reserves currently available. Table 7. Summary of Reserves Available Asset Category Balance at December 31, 2012 General Infrastructure Reserve 3,736,000 Other 0 Total Tax Funded 3,736,000 There is considerable debate in the municipal sector as to the appropriate level of reserves that a municipality should have on hand. There is no clear guideline that has gained wide acceptance. Factors that municipalities should take into account when determining their capital reserve requirements include: breadth of services provided age and condition of infrastructure use and level of debt economic conditions and outlook internal reserve and debt policies. The reserves in table 7 are available for use by applicable asset categories during the phase-in period to full funding. This, coupled with Tillsonburg’s judicious use of debt in the past, allows the scenarios to assume that, if required, available reserves and debt capacity can be used for high priority and emergency infrastructure investments in the short to medium-term. 183 58 7.6.2 Recommendation As the Town of Tillsonburg updates its AMP and expands it to include other asset categories, that future planning should include determining what its long-term reserve balance requirements are and a plan to achieve such balances in the long-term. 184 59 8.0 Appendix A: Report Card Calculations Key Calculations 1. “Weighted, unadjusted star rating”: (% of assets in given condition) x (potential star rating) 2. “Adjusted star rating” (weighted, unadjsted star rating) x (% of total replacement value) 3. “Overall Rating” (Condition vs. Performance star rating) + (Funding vs. Need star rating) ___________________________________________________________________ 2 185 Ro a d N e t w o r k Se g m e n t r e p l a c e m e n t v a l u e $9 9 , 7 4 9 , 6 7 7 100.0% Se g m e n t C o n d i t i o n Le t t e r gr a d e St a r r a t i n g Qu a n t i t y ( m ) i n g i v e n co n d i t i o n % o f A s s e t s i n g i v e n co n d i t i o n We i g h t e d , u n a d j u s t e d st a r r a t i n g Ex c e l l e n t A 5 3 5 , 3 6 4 3 2 % 1 . 5 9 Go o d B 4 1 8 , 4 2 0 1 7 % 0 . 6 6 Fa i r C 3 2 4 , 0 1 2 2 2 % 0 . 6 5 Po o r D 2 1 8 , 9 5 5 1 7 % 0 . 3 4 Cr i t i c a l F 1 1 4 , 6 7 0 1 3 % 0 . 1 3 To t a l s 1 1 1 , 4 2 1 1 0 0 % 3 . 3 7 3.4 C Av e r a g e a n n u a l in v e s t m e n t r e q u i r e d 20 1 3 f u n d i n g av a i l a b l e De f i c i t Category star ratingCategory letter grade $2 , 4 8 2 , 0 0 0 $ 4 5 5 , 0 0 0 $2 , 0 2 7 , 0 0 0 Av e r a g e s t a r r a t i n g To w n o f T i l l s o n b u r g 1. Co n d i t i o n v s . P e r f o r m a n c e To t a l c a t e g o r y r e p l a c e m e n t v a l u e $9 9 , 7 4 9 , 6 7 7 Se g m e n t v a l u e a s a % o f t o t a l c a t e g o r y re p l a c e m e n t v a l u e Segment adjusted star rating Ro a d s ( e x c l u d e s gr a v e l ) 3.4 Category star ratingCategory letter grade 2. Fu n d i n g v s . N e e d Fu n d i n g p e r c e n t a g e 18 . 3 % 0.0 F 3. Ov e r a l l R a t i n g Co n d i t i o n v s P e r f o r m a n c e s t a r r a t i n g Fu n d i n g v s . N e e d s t a r r a t i n g Ov e r a l l l e t t e r g r a d e 3. 4 0 . 0 1. 7 F 18 6 Br i d g e s & C u l v e r t s Se g m e n t r e p l a c e m e n t v a l u e $2 3 , 0 9 5 , 0 0 0 100.0% Se g m e n t C o n d i t i o n Le t t e r gr a d e St a r r a t i n g Qu a n t i t y ( m . s q ) i n g i v e n co n d i t i o n % o f A s s e t s i n g i v e n co n d i t i o n We i g h t e d , u n a d j u s t e d st a r r a t i n g Ex c e l l e n t A 5 2 , 7 3 3 5 2 % 2 . 6 1 Go o d B 4 1 , 2 7 5 2 4 % 0 . 9 7 Fa i r C 3 1 , 2 3 7 2 4 % 0 . 7 1 Po o r D 2 0 0 % 0 . 0 0 Cr i t i c a l F 1 0 0 % 0 . 0 0 To t a l s 5 , 2 4 5 1 0 0 % 4 . 2 9 4.3 B Av e r a g e a n n u a l in v e s t m e n t r e q u i r e d 20 1 3 f u n d i n g av a i l a b l e De f i c i t Category star ratingCategory letter grade $4 3 1 , 0 0 0 $ 0 $4 3 1 , 0 0 0 Av e r a g e s t a r r a t i n g Segment adjusted star rating To w n o f T i l l s o n b u r g 1. Co n d i t i o n v s . P e r f o r m a n c e To t a l c a t e g o r y r e p l a c e m e n t v a l u e $2 3 , 0 9 5 , 0 0 0 Se g m e n t v a l u e a s a % o f t o t a l c a t e g o r y re p l a c e m e n t v a l u e Br i d g e s & C u l v e r t s 4.3 Category star ratingCategory letter grade 2. Fu n d i n g v s . N e e d Fu n d i n g p e r c e n t a g e 0. 0 % 0.0 F 3. Ov e r a l l R a t i n g Co n d i t i o n v s P e r f o r m a n c e s t a r r a t i n g Fu n d i n g v s . N e e d s t a r r a t i n g Ov e r a l l l e t t e r g r a d e 4. 3 0 . 0 2. 1 D 18 7 St o r m S e w e r Se r v i c e s Se g m e n t r e p l a c e m e n t v a l u e $1 7 , 1 9 0 , 8 1 6 87.0% Se g m e n t C o n d i t i o n Le t t e r gr a d e St a r r a t i n g Qu a n t i t y ( m ) i n g i v e n co n d i t i o n % o f A s s e t s i n g i v e n co n d i t i o n We i g h t e d , u n a d j u s t e d st a r r a t i n g Ex c e l l e n t A 5 1 1 , 9 4 8 2 0 % 0 . 9 8 Go o d B 4 1 7 , 8 2 6 2 9 % 1 . 1 7 Fa i r C 3 1 6 , 6 4 1 2 7 % 0 . 8 2 Po o r D 2 1 4 , 1 6 1 2 3 % 0 . 4 7 Cr i t i c a l F 1 1 4 8 0 % 0 . 0 0 To t a l s 6 0 , 7 2 5 1 0 0 % 3 . 4 5 Se g m e n t r e p l a c e m e n t v a l u e $2 , 5 7 1 , 8 8 7 13.0% Se g m e n t C o n d i t i o n Le t t e r gr a d e St a r r a t i n g U n i t s i n g i v e n c o n d i t i o n % o f A s s e t s i n g i v e n co n d i t i o n We i g h t e d , u n a d j u s t e d st a r r a t i n g Ex c e l l e n t A 5 1 9 2 2 3 % 1 . 1 5 Go o d B 4 2 6 8 3 2 % 1 . 2 8 Fa i r C 3 2 1 2 2 5 % 0 . 7 6 Po o r D 2 1 6 3 2 0 % 0 . 3 9 Cr i t i c a l F 1 0 0 % 0 . 0 0 To t a l s 8 3 5 1 0 0 % 3 . 5 9 3. 5 C Av e r a g e a n n u a l in v e s t m e n t r e q u i r e d 20 1 3 f u n d i n g av a i l a b l e De f i c i t Ca t e g o r y s t a r ra t i n g Category letter grade $3 2 9 , 0 0 0 $ 0 $3 2 9 , 0 0 0 Av e r a g e s t a r r a t i n g 3. Ov e r a l l R a t i n g Co n d i t i o n v s P e r f o r m a n c e s t a r r a t i n g Fu n d i n g v s . N e e d s t a r r a t i n g Ov e r a l l l e t t e r g r a d e 3. 5 0 . 0 1. 7 F 2. Fu n d i n g v s . N e e d Fu n d i n g p e r c e n t a g e 0. 0 % 0. 0 F Ca t e g o r y s t a r ra t i n g Category letter grade Se g m e n t a d j u s t e d s t a r r a t i n g Ap p u r t e n a n c e s 0.5 To t a l c a t e g o r y r e p l a c e m e n t v a l u e $1 9 , 7 6 2 , 7 0 2 Se g m e n t v a l u e a s a % o f t o t a l c a t e g o r y re p l a c e m e n t v a l u e To w n o f T i l l s o n b u r g 1. Co n d i t i o n v s . P e r f o r m a n c e To t a l c a t e g o r y r e p l a c e m e n t v a l u e $1 9 , 7 6 2 , 7 0 2 Se g m e n t v a l u e a s a % o f t o t a l c a t e g o r y re p l a c e m e n t v a l u e Se g m e n t a d j u s t e d s t a r r a t i n g Ma i n s 3.0 18 8 Town of Tillsonburg Daily Investment Required Per Household for Infrastructure Sustainability $0.90 $0.17 $0.13 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 Road Network Bridges & Culverts Storm Sewer Network Daily cup of coffee: $1.56 Daily infrastructure investment: $1.25 Storm Sewer Network Total Replacement Cost: $19,762,702 Cost Per Household: $2,797 Road Network (excludes gravel) Total Replacement Cost: $117,368,175 Cost Per Household: $16,613 Infrastructure Replacement Cost Per Household Total: $22,679 per household Bridges & Culverts Total Replacement Cost: $23,095,000 Cost Per Household: $3,269 189 STAFF REPORT RECREATION, CULTURE & PARKS Title: White Paper on the Roof Maintenance Program Report No.: RCP 15-03 Author: RICK COX Meeting Type: BUDGET MEETING Council/Committee Date: JANUARY 15, 2015 Attachments: • Elliot Fairbairn Roof Report • Elliott Fairbairn Roof Diagram • Leak Repair - OPP Roof EXECUTIVE SUMMARY Town staff has been working with outside experts for a number of years to monitor the condition of the roofs on Town facilities, to prioritize capital repairs, to identify annual maintenance requirements, and to prepare the specifications and tender documents for approved capital repairs. BACKGROUND The 2015 draft Budget includes three significant roof repair projects which have been identified and scheduled for 2015 through the Town’s ongoing roof monitoring program. The projects include the replacement of the OPP HQ roof, and repairs to roofs at the Elliott Fairbairn and Tillsonburg Community Centre. Attached to this report are copies of the most recent reports on the Elliott Fairbairn roof and OPP roof. The comprehensive analysis uses infrared thermography to identify the problem areas. By doing these on each facility every few years, areas of concern can be identified and addressed, and/or monitored more closely. Annual preventative maintenance actions and capital repairs are identified, scheduled, and planned for using these roof reports. RCP 15-03 - White paper on roof maintenance.docx 1/1 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 Progress Report Client:The Corporation of the Town of Tillsonburg Facility:OPP Roof Section:All Report Date: 07/07/2014 Report Data Title Leak inspection 07032014 Notes: UPDATE: These repairs required as described below were perfromed by All Pro Roofing on July 9th 2014. Nick Fedorow, Garland representative, was onsite to document the repair progress. All repairs were performed as per specifcation and with a good quality of workmanship. See photos for repair progress. A leak investigation was performed on 7/3/2014 by Nick Fedorow, Garland representative. The leak was reported as coming from the west side of a roof top HVAC unit. Upon inspection of the membrane flashing of the unit, it was evident that the leak is the result of EPDM seam deterioration and multiple punctures. The seams have failed in this area due to tenting and the nature of EPDM to shrink over time and from UV exposure. The roof is 20+ years old and typically carries a 12-15 year life expectancy. Tears in the perimeter flashings of the entire roof system were noted during inspection. These openings are the result of an old, dried out membrane being past the point of its effective life. These holes were not seen during the January 2014 inspection due to the snow, and have presumably been there for 3-5 years, allowing water to enter the underlying insulation and likely saturating it. This roof should be scheduled for immediate replacement, as leaks will become more and more frequent. The saturated insulation will compromise the structural integrity of the roof deck, eliminate the RValue resulting in higher heating and cooling costs, as well as allow for the growth of mold. For now, "baby sitting" this roof will have limited success, as water that enters any deficiency can travel freely accross the deck and enter any vulnerable opening. Tracking down the soure of leaks on this type of roof is difficult, as there is an extreme amount of mallast and dirt to remove to look for a small pinhole puncture. It is my recommendation that we address the visible openings along the roof perimeter, as wel as the multiple punctures in the HVAC flashing, and budget this roof for at least partial replacement beginning in 2015. It will be important to gather bids as early as January to secure the best pricing. The following scope of work should be administered to the HVAC flashings and openings along the perimeters: 1) Remove river rock ballast from immediate area of leak repair. Use the same scope for all areas of EPDM deterioration outlined in inspection. 2) If required, move patio stones to allow for at least 3" of overlap of repair material onto field of roof. 3) Thoroughly clean the membrane surrounding the repair and the deteriorated membrane using a 10% TSP cleaner 4) Once the membrane is dry and free of dirt, prepare the area using PlioSeal Splice wash applied with a scuff pad 5) Scuff the area to ensure maximum adhesion of repair membrane 6) Allow splice wash to completely flash off. Membrane will feel tacky 7) Apply self adhering EPDM flashing repair patch by removing the backing and pressing firmly 208 into place. The patch must cover the deficiency by at least 3" in all directions, and should come onto the field of the roof by 3". 8) Use a roller to press the edges of the patch firmly into place. 9) Replace the river rock ballast 10) Replace any moved patio stones 11) Remove any visible sharp debris from all areas of the roof Large tears in the perimeter flashing membrane. A racoon lives on this roof. Closer look at the extent of ther perimeter tears. These areas can be patched, but due to the age of this roof, tears and seam failures will become more and more frequent. Another large perimeter flashing tear 209 Another large perimeter tear. Single Ply Tenting: Single Ply Tenting occurs at the perimeter of the roof. As the single ply membrane is exposed to UV rays it shrinks. This in turn causes the perimeter to look like a tent and exerts extreme pressure on this 1 millimeter thin membrane. Couple this pressure with the brittleness of this old rubber membrane and multiple tears/punctures develop which in turn cause leaks inside the building and will lead to complete roof failure. Perimeter flashing deficiencies were marked for repair using marking paint Same as previous 210 The following photos show the existing leak area. The patch seen here was applied in January 2014 and is still performing well. Sealant deterioration around the base of the HVAC unit should be reinforced with new sealant. Punctures in the membrane flashing of the HVAC unit are evident and newly formed since January's repairs. These failures are a result of the membranes brittleness and rupture during expansion and contraction caused by thermal changes. Another membrane puncture on the same HVAC unit 211 Another puncture in the same area A complete seam failure on the same unit The areas were marked in paint on the unit for quick identifiaction during repair. Ballst was removed from the base of the unit to search for more punctures Same as previous 212 Same as previous Same as previous The following photos show the repairs that were perfromed on July 9th 2014 by All Pro Roofing All perimeter tears identified during the leak investigation were reinforced using an EPDM patch 213 Same as previous Same as previous Same as previous All tears and punctures on the HVAC unit were reinforced with an EPDM patch. This should stop the current leaks in this area. 214 River rock ballast is removed from the repair area. Membrane is thoroughly cleaned using a TSP cleaning solution Splice wash is applied to the membrane as a primer for the patch The patch is applied to the existing membrane and pressed flat 215 A hand roller is used to ensure the edges of the patch adhere properly to the primed membrane Polyurethane sealant was applied to the areas of failed sealant along the HVAC adapter A proper and safe ladder set up was observed. 216 STAFF REPORT FINANCE Title: Tax Class Comparisons Report No.: FIN 15-03 Author: DARRELL EDDINGTON Meeting Type: COUNCIL BUDGET MEETING Council/Committee Date: JANUARY 22, 2015 Attachments: BMA 2014 MUNICIPAL TAX STUDY RECOMMENDATIONS: THAT Council receives report FIN 15-03 Tax Class Comparisons as information. EXECUTIVE SUMMARY To provide a tax class comparison report to Council. BACKGROUND At the budget meeting of January 15, 2015, Council requested further information on Tillsonburg property taxes compared to other municipalities. The attached document was compiled from a 2014 BMA Management Consulting Inc. study and compares Tillsonburg property taxes by tax class to other municipalities with a population of 15,000 to 29,999. In addition, Council also requested property tax information pertaining to the new school in Tillsonburg. Staff has confirmed with MPAC that since the new school is a public school, the school is exempt from taxation. APPROVALS Director Name/Signature Darrell Eddington Date: 01/16/15 Finance Name/Signature Darrell Eddington Date: 01/16/15 CAO Name/Signature David Calder Date: 1 CAO 217 Provincial Range Tax Class Comparisons - Typical Properties Low High Average Tillsonburg Residential - Detached Bungalow Based on a detached 3 bedroom, single story home with 1.5 bathrooms and 1 car garage. $1,338 $4,825 $3,091 $2,752 (Low Relative Taxes) Residential - Two Storey Home Based on 2 storey, 3 bedroom home with 2.5 bathrooms, two car garage. Total area of the house is approximately 2,000 sq. ft. of living space. $2,541 $7,133 $4,295 $3,734 (Low) Residential - Senior Executive Based on a detached 2 story, 4-5 bedrooms, 3 baths, 2 car garage with approximately 3,000 sq. ft of living space. $4,330 $12,314 $5,854 $5,662 (Mid) Multi-Residential-Walk-up Apartments Multi-residential apartments containing more than 6 self contained units, 2-4 stories high $516 $2,393 $1,383 $1,556 (Mid) Multi-residential - Mid/High-Rise Apartment Based on a multi-residential property of more than 6 self contained units and over 4 stories high. Comparison of taxes is based on a per unit basis. $808 $3,027 $1,664 $1,971 (High) Commercial – Neighborhood Shopping Typically the smallest type of centre comprised of retail tenants that cater to everyday needs such as drug stores, variety stores and hardware stores. Can vary in size from 4,000 to 10,000 sq.ft. Comparison of taxes based on a per square foot of floor area. $1.04 $5.62 $3.35 $3.21 (Mid) Commercial - Office Building Per square foot of gross leasable area $1.36 $5.31 $3.02 $3.28 (Mid) Commercial - Motels Taxes per suite $267 $2,882 $1,179 $976 (Mid) Standard Industrial Under 125,000 sq. ft. in size. Comparison of taxes based on a per square foot of floor area. $0.62 $2.62 $1.53 $1.22 (Low) Large Industrial Greater than 125,000 sq. ft. Comparison of taxes based on a per square foot of floor area. $0.69 $1.74 $1.16 $0.94 (Low) Industrial Vacant Land Based on taxes per acre $296 $5,646 $2,023 $1,142 (Low) Source: 2014 BMA Management Consulting Inc. (Ontario municipalities with populations 15,0000 – 29,999 218 219 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 $14,000,000 $15,000,000 De b t P r i n c i p a l Year Debt Principal Balance at Year End Notes The following two amounts below requirierefinancing or a "balloon" payment to pay off the remaining principal in that year. 2015 Q1 -$ 332,384.38 2015 Q4 -$ 181,702.51 2015 - New Debt Request: $1,722,000 Year H:\Finance\Financial Plans\2015\2015 Council Presentation\2015 Debt Summary-Graph.xlsx 16/01/2015220 Le g e n d Pr o j e c t s t o r e f i n a n c e i n e a r l y 2 0 1 5 Pr o j e c t s t o r e f i n a n c e i n Q 4 o f 2 0 1 5 BA L A N C E S O / S A T D E C . 3 1 TE R M EX P . Y E A R Co n t r a c t I n t e r e s t 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 De p t # BY - L A W # Ra t e PR I N C I P A L PR I N C I P A L PR I N C I P A L PRINCIPAL PRINCIPAL 50 0 P a r k i n g G a r a g e 25 2 0 2 0 2. 0 0 0 % 5 9 4 , 2 0 1 . 0 5 5 0 9 , 2 9 6 . 6 7 4 1 7 , 3 9 3 . 4 3 3 1 7 , 9 1 4 . 4 2 2 1 0 , 2 3 5 . 1 3 BI A 3 1 7 3 B r o a d w a y - B I A 10 2 0 1 4 5. 0 0 1 % 4 3 , 0 8 2 . 5 4 4 1 , 2 5 6 . 0 9 3 3 , 2 9 6 . 6 4 2 5 , 1 9 3 . 9 2 1 6 , 9 4 5 . 3 5 46 5 3 1 7 3 A r e n a 10 2 0 1 4 5. 0 0 1 % 1 4 4 , 6 2 4 . 2 3 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 17 0 3 1 7 3 R i d g e B l v d 10 2 0 1 4 5. 0 0 1 % 1 3 , 1 6 2 . 4 9 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 26 0 3 1 7 3 N o r t h P a r k D r a i n 10 2 0 1 4 5. 0 0 1 % 1 8 9 , 5 2 7 . 8 4 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 22 0 3 1 8 4 B r o a d w a y S i d e w a l k 10 2 0 1 5 4. 6 8 0 % 2 8 , 6 0 1 . 4 0 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 22 0 3 1 8 4 Q u a r t e r l i n e S i d e w a l k 10 2 0 1 5 4. 6 8 0 % 1 6 , 3 7 0 . 3 1 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 13 5 3 1 8 4 C S C R o o f 10 2 0 1 5 4. 6 8 0 % 4 5 , 0 9 1 . 9 3 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 13 5 3 1 8 4 A r e n a I c e R e s u r f a c e r 10 2 0 1 5 4. 6 8 0 % 3 , 3 7 6 . 5 3 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 13 5 3 1 8 4 S E C R o o f 10 2 0 1 5 4. 6 8 0 % 9 , 2 1 4 . 4 3 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 13 5 3 1 8 4 P u b l i c W o r k s G a r a g e 10 2 0 1 5 4. 6 8 0 % 2 , 4 1 8 . 0 1 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 46 5 3 1 8 4 A r e n a H V A C 10 2 0 1 5 4. 6 8 0 % 8 , 0 0 9 . 5 5 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 45 0 3 1 8 4 G o l f C o u r s e 10 2 0 1 5 4. 6 8 0 % 1 3 , 5 7 1 . 1 4 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 50 0 3 1 8 4 C a n a d i a n T i r e 10 2 0 1 5 4. 6 8 0 % 7 7 , 5 7 1 . 2 4 0 . 0 0 0 . 0 0 0 . 0 0 0 . 0 0 46 7 3 1 7 9 E l l i o t F a i r b a i r n C e n t r e 25 2 0 3 1 5. 2 9 0 % 2 6 2 , 9 4 7 . 4 8 2 4 7 , 4 8 3 . 0 4 2 3 2 , 0 1 8 . 6 0 2 1 6 , 5 5 4 . 1 6 2 0 1 , 0 8 9 . 7 2 46 5 3 1 7 9 S u p e r b u i l d P r o j e c t 25 2 0 3 1 5. 2 9 0 % 1 3 5 , 9 8 3 . 3 6 1 2 7 , 9 8 1 . 2 8 1 1 9 , 9 7 9 . 2 0 1 1 1 , 9 7 7 . 1 2 1 0 3 , 9 7 5 . 0 4 46 5 3 1 7 9 A r e n a H V A C 25 2 0 3 1 5. 0 4 0 % 4 7 5 , 1 9 3 . 8 8 4 4 6 , 3 9 3 . 1 6 4 1 7 , 5 9 2 . 4 4 3 8 8 , 7 9 1 . 7 2 3 5 9 , 9 9 1 . 0 0 45 0 3 1 7 9 G o l f C o u r s e 25 2 0 3 1 5. 0 4 0 % 2 9 7 , 0 0 6 . 1 2 2 7 9 , 0 0 6 . 8 4 2 6 1 , 0 0 7 . 5 6 2 4 3 , 0 0 8 . 2 8 2 2 5 , 0 0 9 . 0 0 22 0 3 1 6 6 G l e n d a l e / G l e n r i d g e / P o p l a r 20 2 0 2 6 5. 2 2 0 % 6 , 0 0 2 . 2 4 5 , 5 0 2 . 5 2 5 , 0 0 2 . 8 0 4 , 5 0 3 . 0 8 4 , 0 0 3 . 3 6 22 0 3 1 6 6 G l e n d a l e / G l e n r i d g e / W i n o n a 20 2 0 2 6 5. 2 2 0 % 9 6 , 0 0 0 . 6 4 8 8 , 0 0 0 . 7 2 8 0 , 0 0 0 . 8 0 7 2 , 0 0 0 . 8 8 6 4 , 0 0 0 . 9 6 22 0 3 1 6 6 G l e n d a l e / A l l e n 20 2 0 2 6 5. 2 2 0 % 4 4 , 9 9 9 . 2 8 4 1 , 2 4 9 . 1 9 3 7 , 4 9 9 . 1 0 3 3 , 7 4 9 . 0 1 2 9 , 9 9 8 . 9 2 22 0 3 1 6 6 E l g i n 20 2 0 2 6 5. 2 2 0 % 8 , 6 5 1 . 4 4 7 , 9 2 9 . 3 7 7 , 2 0 7 . 3 0 6 , 4 8 5 . 2 3 5 , 7 6 3 . 1 6 22 0 3 1 6 6 L i s g a r 20 2 0 2 6 5. 2 2 0 % 3 2 , 5 6 5 . 8 4 2 9 , 8 5 3 . 3 2 2 7 , 1 4 0 . 8 0 2 4 , 4 2 8 . 2 8 2 1 , 7 1 5 . 7 6 22 0 3 1 6 6 D e r e h a m 20 2 0 2 6 5. 2 2 0 % 1 0 , 3 4 5 . 4 4 9 , 4 8 3 . 6 2 8 , 6 2 1 . 8 0 7 , 7 5 9 . 9 8 6 , 8 9 8 . 1 6 22 0 3 1 6 6 T a n a g e r 20 2 0 2 6 5. 2 2 0 % 8 , 8 3 4 . 8 8 8 , 0 9 7 . 9 9 7 , 3 6 1 . 1 0 6 , 6 2 4 . 2 1 5 , 8 8 7 . 3 2 22 0 3 1 6 6 T o w n l i n e 20 2 0 2 6 5. 2 2 0 % 4 6 , 7 0 0 . 2 4 4 2 , 8 0 8 . 2 7 3 8 , 9 1 6 . 3 0 3 5 , 0 2 4 . 3 3 3 1 , 1 3 2 . 3 6 13 0 O I P C F o r d F 2 5 0 10 2 0 1 7 4. 6 6 0 % 1 8 , 0 9 0 . 0 0 1 2 , 0 6 0 . 0 0 6 , 0 3 0 . 0 0 0 . 0 0 0 . 0 0 13 0 O I P C F o r d F 3 5 0 10 2 0 1 7 4. 6 6 0 % 1 5 , 8 1 0 . 0 0 1 0 , 5 4 0 . 0 0 5 , 2 7 0 . 0 0 0 . 0 0 0 . 0 0 46 5 O I P C R e v e r s e O s m o s i s 10 2 0 1 7 4. 6 6 0 % 1 1 , 9 5 5 . 0 0 7 , 9 7 0 . 0 0 3 , 9 8 5 . 0 0 0 . 0 0 0 . 0 0 13 0 O I P C F o r d F r e e s t a r 10 2 0 1 7 4. 6 6 0 % 7 , 1 1 0 . 0 0 4 , 7 4 0 . 0 0 2 , 3 7 0 . 0 0 0 . 0 0 0 . 0 0 22 0 O I P C D e l e v a n R o a d W o r k 30 2 0 3 7 4. 9 5 0 % 5 4 , 5 1 0 . 0 0 5 2 , 1 4 0 . 0 0 4 9 , 7 7 0 . 0 0 4 7 , 4 0 0 . 0 0 4 5 , 0 3 0 . 0 0 22 0 O I P C R o a d s R e s u r f a c i n g 30 2 0 3 7 4. 9 5 0 % 5 7 , 5 0 0 . 0 0 5 5 , 0 0 0 . 0 0 5 2 , 5 0 0 . 0 0 5 0 , 0 0 0 . 0 0 4 7 , 5 0 0 . 0 0 22 0 O I P C E d g e w o o d D r i v e 30 2 0 3 7 4. 9 5 0 % 7 9 , 5 2 6 . 2 4 7 6 , 0 6 8 . 5 6 7 2 , 6 1 0 . 8 8 6 9 , 1 5 3 . 2 0 6 5 , 6 9 5 . 5 4 22 0 O I P C V e n i s o n E a s t 30 2 0 3 7 4. 9 5 0 % 1 4 , 2 7 5 . 2 4 1 3 , 6 5 4 . 5 6 1 3 , 0 3 8 . 8 8 1 2 , 4 1 3 . 2 0 1 1 , 7 9 2 . 5 4 22 0 O I P C Q u a r t e r l i n e S o u t h 30 2 0 3 7 4. 9 5 0 % 1 4 1 , 8 3 3 . 3 8 1 3 5 , 6 6 6 . 7 2 1 2 9 , 5 0 0 . 0 6 1 2 3 , 3 3 3 . 4 0 1 1 7 , 1 6 6 . 7 2 22 0 O I P C C o n c e s s i o n S t . B r i d g e 30 2 0 3 7 4. 9 5 0 % 1 5 3 , 3 3 3 . 3 8 1 4 6 , 6 6 6 . 7 2 1 4 0 , 0 0 0 . 0 6 1 3 3 , 3 3 3 . 4 0 1 2 6 , 6 6 6 . 7 2 22 0 O I P C G l e n d a l e P o p l a r 30 2 0 3 7 4. 9 5 0 % 4 0 , 8 8 8 . 6 8 3 9 , 1 1 0 . 9 2 3 7 , 3 3 3 . 1 6 3 5 , 5 5 5 . 4 0 3 3 , 7 7 7 . 6 4 13 0 O I P C G P S E q u i p m e n t 20 2 0 2 7 4. 8 5 0 % 1 3 , 3 5 7 . 5 0 1 2 , 3 3 0 . 0 0 1 1 , 3 0 2 . 5 0 1 0 , 2 7 5 . 0 0 9 , 2 4 7 . 5 0 24 0 O I P C A i r p o r t H a n g e r T a x i w a y 20 2 0 2 7 4. 8 5 0 % 3 2 , 5 0 0 . 0 0 3 0 , 0 0 0 . 0 0 2 7 , 5 0 0 . 0 0 2 5 , 0 0 0 . 0 0 2 2 , 5 0 0 . 0 0 24 0 O I P C A i r p o r t L i g h t i n g 20 2 0 2 7 4. 8 5 0 % 5 , 8 5 0 . 0 0 5 , 4 0 0 . 0 0 4 , 9 5 0 . 0 0 4 , 5 0 0 . 0 0 4 , 0 5 0 . 0 0 24 0 O I P C A i r p o r t T a x i w a y 20 2 0 2 7 4. 8 5 0 % 1 5 , 3 7 9 . 0 0 1 4 , 1 9 6 . 0 0 1 3 , 0 1 3 . 0 0 1 1 , 8 3 0 . 0 0 1 0 , 6 4 7 . 0 0 46 5 O I P C A r e n a F l o o r 25 2 0 3 2 4. 9 1 0 % 2 7 3 , 2 8 5 . 3 6 2 5 8 , 1 0 2 . 8 4 2 4 2 , 9 2 0 . 3 2 2 2 7 , 7 3 7 . 8 0 2 1 2 , 5 5 5 . 2 8 46 5 O I P C T e n n i s C o u r t s 25 2 0 3 2 4. 9 1 0 % 6 9 , 1 2 0 . 0 0 6 5 , 2 8 0 . 0 0 6 1 , 4 4 0 . 0 0 5 7 , 6 0 0 . 0 0 5 3 , 7 6 0 . 0 0 46 5 O I P C C C C L o b b y F l o o r 25 2 0 3 2 4. 9 1 0 % 1 1 , 5 4 8 . 8 0 1 0 , 9 0 7 . 2 0 1 0 , 2 6 5 . 6 0 9 , 6 2 4 . 0 0 8 , 9 8 2 . 4 0 13 5 O I P C C S C - H V A C 20 2 0 2 8 5. 4 9 0 % 2 5 , 2 0 0 . 0 0 2 3 , 4 0 0 . 0 0 2 1 , 6 0 0 . 0 0 1 9 , 8 0 0 . 0 0 1 8 , 0 0 0 . 0 0 22 0 O I P C M a p l e L a n e 30 2 0 3 8 5. 7 7 0 % 2 7 9 , 6 2 1 . 4 8 2 6 7 , 9 7 0 . 5 6 2 5 6 , 3 1 9 . 6 4 2 4 4 , 6 6 8 . 7 2 2 3 3 , 0 1 7 . 8 0 22 0 O I P C L i n c o l n S t r e e t 30 2 0 3 8 5. 7 7 0 % 1 4 2 , 0 6 2 . 4 4 1 3 6 , 1 4 3 . 1 8 1 3 0 , 2 2 3 . 9 2 1 2 4 , 3 0 4 . 6 6 1 1 8 , 3 8 5 . 4 0 22 0 O I P C Q u a r t e r l i n e 30 2 0 3 8 5. 7 7 0 % 3 2 5 , 0 5 2 . 8 4 3 1 1 , 5 0 8 . 9 8 2 9 7 , 9 6 5 . 1 2 2 8 4 , 4 2 1 . 2 6 2 7 0 , 8 7 7 . 4 0 24 0 O I P C A i r p o r t A s p h a l t 10 2 0 1 8 4. 7 5 0 % 2 , 4 0 0 . 0 0 1 , 8 0 0 . 0 0 1 , 2 0 0 . 0 0 6 0 0 . 0 0 0 . 0 0 13 0 O I P C 3 5 0 H P T r u c k R e p # 1 1 1 20 2 0 2 9 4. 9 6 0 % 8 1 , 3 5 9 . 5 0 7 5 , 7 4 8 . 5 0 7 0 , 1 3 7 . 5 0 6 4 , 5 2 6 . 5 0 5 8 , 9 1 5 . 5 0 13 0 O I P C T r a c k l e s s M T 5 10 2 0 1 9 4. 0 0 0 % 5 5 , 6 6 9 . 0 5 4 3 , 2 9 8 . 1 5 3 0 , 9 2 7 . 2 5 1 8 , 5 5 6 . 3 5 6 , 1 8 5 . 4 5 22 0 O I P C Q u a r t e r l i n e R a i l w a y T r a c k 30 2 0 3 9 5. 3 0 0 % 4 7 1 , 2 4 1 . 9 1 4 5 2 , 0 0 7 . 5 3 4 3 2 , 7 7 3 . 1 5 4 1 3 , 5 3 8 . 7 7 3 9 4 , 3 0 4 . 3 9 22 0 O I P C M i s c S t r e e t P a v i n g 30 2 0 3 9 5. 3 0 0 % 3 1 0 , 3 3 3 . 3 7 2 9 7 , 6 6 6 . 7 1 2 8 5 , 0 0 0 . 0 5 2 7 2 , 3 3 3 . 3 9 2 5 9 , 6 6 6 . 7 3 H: \ F i n a n c e \ F i n a n c i a l P l a n s \ 2 0 1 5 \ 2 0 1 5 C o u n c i l P r e s e n t a t i o n \ 2 0 1 5 D e b t S u m m a r y - G r a p h . x l s x 1 6 / 0 1 / 2 0 1 5 22 1 Le g e n d Pr o j e c t s t o r e f i n a n c e i n e a r l y 2 0 1 5 Pr o j e c t s t o r e f i n a n c e i n Q 4 o f 2 0 1 5 BA L A N C E S O / S A T D E C . 3 1 TE R M EX P . Y E A R Co n t r a c t I n t e r e s t 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 De p t # BY - L A W # Ra t e PR I N C I P A L PR I N C I P A L PR I N C I P A L PRINCIPAL PRINCIPAL 13 5 O I P C W o r k s B u i l d i n g D r a i n 30 2 0 3 9 5. 3 0 0 % 2 4 , 5 0 0 . 0 0 2 3 , 5 0 0 . 0 0 2 2 , 5 0 0 . 0 0 2 1 , 5 0 0 . 0 0 2 0 , 5 0 0 . 0 0 45 0 O I P C T r a i l D e v e l o p m e n t 30 2 0 3 9 5. 3 0 0 % 4 9 9 , 2 4 7 . 9 7 4 7 8 , 8 7 0 . 5 1 4 5 8 , 4 9 3 . 0 5 4 3 8 , 1 1 5 . 5 9 4 1 7 , 7 3 8 . 1 3 22 0 O I P C W i l l i a m t o B e e c h B l v d 30 2 0 4 0 4. 8 0 0 % 2 1 1 , 7 3 0 . 4 3 2 0 3 , 4 4 0 . 9 7 1 9 5 , 1 5 1 . 5 1 1 8 6 , 8 6 2 . 0 5 1 7 8 , 5 7 2 . 5 9 23 0 O I P C D o w n t o w n P a r k i n g - E p p l e 30 2 0 4 0 4. 8 0 0 % 1 7 4 , 0 0 1 . 2 4 1 6 7 , 1 6 3 . 9 6 1 6 0 , 3 2 6 . 6 8 1 5 3 , 4 8 9 . 4 0 1 4 6 , 6 5 2 . 1 2 13 0 O I P C H y d r o H y b r i d B u c k e t T r u c k 15 2 0 2 5 4. 3 3 0 % 2 0 8 , 1 1 6 . 3 0 1 8 8 , 2 9 5 . 7 0 1 6 8 , 4 7 5 . 1 0 1 4 8 , 6 5 4 . 5 0 1 2 8 , 8 3 3 . 9 0 50 5 O I P C H w y # 3 I n d . P a r k 10 2 0 2 0 3. 9 2 0 % 5 5 , 0 0 0 . 0 0 4 5 , 0 0 0 . 0 0 3 5 , 0 0 0 . 0 0 2 5 , 0 0 0 . 0 0 1 5 , 0 0 0 . 0 0 50 5 O I P C R o k e b y R o a d / V o d d e n 10 2 0 2 0 3. 9 2 0 % 2 0 9 , 8 4 8 . 6 5 1 7 1 , 6 9 4 . 3 5 1 3 3 , 5 4 0 . 0 5 9 5 , 3 8 5 . 7 5 5 7 , 2 3 1 . 4 5 50 5 O I P C H w y # 3 G r a y d o n 10 2 0 2 0 3. 9 2 0 % 2 0 4 , 3 0 3 . 0 0 1 6 7 , 1 5 7 . 0 0 1 3 0 , 0 1 1 . 0 0 9 2 , 8 6 5 . 0 0 5 5 , 7 1 9 . 0 0 50 5 O I P C H w y # 3 H a z e n 10 2 0 2 0 3. 9 2 0 % 1 2 0 , 0 2 4 . 8 5 9 8 , 2 0 2 . 1 5 7 6 , 3 7 9 . 4 5 5 4 , 5 5 6 . 7 5 3 2 , 7 3 4 . 0 5 24 0 O I P C A i r p o r t H a n g e r T a x i w a y 10 2 0 2 0 3. 9 2 0 % 2 5 , 2 8 4 . 6 0 2 0 , 6 8 7 . 4 0 1 6 , 0 9 0 . 2 0 1 1 , 4 9 3 . 0 0 6 , 8 9 5 . 8 0 24 0 O I P C A i r p o r t H a n g e r T e r m i n a l 10 2 0 2 0 3. 9 2 0 % 2 0 , 9 0 0 . 0 0 1 7 , 1 0 0 . 0 0 1 3 , 3 0 0 . 0 0 9 , 5 0 0 . 0 0 5 , 7 0 0 . 0 0 24 0 O I P C A i r p o r t H a n g e r O v e r l a y 10 2 0 2 0 3. 9 2 0 % 3 5 , 7 5 0 . 0 0 2 9 , 2 5 0 . 0 0 2 2 , 7 5 0 . 0 0 1 6 , 2 5 0 . 0 0 9 , 7 5 0 . 0 0 24 0 O I P C A i r p o r t H a n g e r E x t e n s i o n 10 2 0 2 0 3. 9 2 0 % 7 3 , 7 0 0 . 0 0 6 0 , 3 0 0 . 0 0 4 6 , 9 0 0 . 0 0 3 3 , 5 0 0 . 0 0 2 0 , 1 0 0 . 0 0 22 0 O I P C L i s g a r & 4 t h 30 2 0 4 0 4. 5 9 0 % 3 3 8 , 0 0 0 . 0 0 3 2 5 , 0 0 0 . 0 0 3 1 2 , 0 0 0 . 0 0 2 9 9 , 0 0 0 . 0 0 2 8 6 , 0 0 0 . 0 0 13 0 F i r e T r u c k 15 2 0 2 6 3. 3 2 0 % 5 1 2 , 7 9 9 . 9 8 4 7 0 , 0 6 6 . 6 4 4 2 7 , 3 3 3 . 3 0 3 8 4 , 5 9 9 . 9 6 3 4 1 , 8 6 6 . 6 2 OI P C L i b r a r y S o f t w a r e 10 2 0 1 8 4. 7 5 0 % 5 0 , 0 0 0 . 0 0 3 7 , 5 0 0 . 0 0 2 5 , 0 0 0 . 0 0 1 2 , 5 0 0 . 0 0 0 . 0 0 50 0 TD - F l o a t VO I P 15 20 1 9 Pr i m e - 1 % 3 6 , 8 5 5 . 8 2 2 9 , 4 9 8 . 9 8 2 2 , 1 4 2 . 1 4 14,785.30 7,428.46 22 0 TD - F l o a t Ba y h a m 15 20 1 9 Pr i m e - 1 % 3 9 , 8 4 4 . 2 1 3 2 , 0 6 6 . 9 7 2 4 , 2 8 9 . 7 3 16,512.49 8,735.25 46 5 - 7 7 0 3 TD - F l o a t SE C 15 20 1 9 Pr i m e - 1 % 4 5 6 , 1 0 7 . 4 4 3 6 6 , 1 4 3 . 8 0 2 7 6 , 1 8 0 . 1 6 186,216.52 96,252.88 15 0 Ca p i t a l l e a s e - F i r e B r e a t h i n g A p p a r a t u s 6 9 , 7 9 9 . 7 5 4 9 , 4 4 5 . 5 0 2 9 , 0 9 1 . 2 5 8 , 7 3 7 . 0 0 0 . 0 0 Ar e n a 10 2 0 2 3 2 , 0 5 7 , 3 3 0 . 8 5 1 , 8 5 8 , 1 0 8 . 1 6 1 , 6 5 2 , 2 8 3 . 6 4 1 , 4 3 9 , 2 8 3 . 5 0 1 , 2 1 9 , 0 3 8 . 2 8 Ru r a l B r o a d b a n d 10 2 0 2 3 1 8 2 , 8 8 1 . 3 1 1 6 5 , 1 8 0 . 3 4 1 4 6 , 8 9 2 . 8 0 1 2 7 , 9 6 7 . 7 0 1 0 8 , 3 9 8 . 8 8 Ne w D e b t R e q u e s t e d 0 . 0 0 1 , 7 2 2 , 0 0 0 . 0 0 1 , 6 2 7 , 9 1 1 . 3 7 1,531,207.07 1,431,814.40 TO T A L D E B T 16 , 6 2 4 , 8 9 4 $ 10 , 9 2 8 , 8 9 3 . 1 0 $ 11 , 1 6 9 , 3 9 1 . 6 4 $ 10 , 1 2 5 , 0 2 5 . 3 9 $ 9,062,501.25 $ 8,010,331.06 $ 20 1 0 20 1 4 20 1 5 20 1 6 2017 2018 GR O S S P R I N C I P A L P A Y M E N T S 1, 2 3 8 , 5 9 0 $ 1, 0 0 9 , 7 1 4 . 3 3 $ 1, 4 6 1 , 1 4 7 . 2 1 $ 1, 0 4 4 , 3 6 6 . 2 5 $ 1,062,524.14 $ 1,052,170.19 $ Le s s : Fi r e C a p i t a l L e a s e - C a p i t a l P r o j e c t C o s t 20 , 3 5 4 -$ 20 , 3 5 4 . 0 0 -$ 20 , 3 5 4 . 0 0 -$ 20 , 3 5 4 . 0 0 -$ 20,354.00 -$ 20,354.00 -$ In d u s t r i a l L a n d - C a p i t a l i z e d t o B a l a n c e S h e e t 10 7 , 1 2 3 -$ 10 7 , 1 2 3 -$ 10 7 , 1 2 3 -$ 10 7 , 1 2 3 -$ 107,123 -$ 107,123 -$ TO T A L P R I N C I P A L P A Y M E N T S 1, 1 1 1 , 1 1 3 $ 88 2 , 2 3 7 $ 1, 3 3 3 , 6 7 0 $ 91 6 , 8 8 9 $ 935,047 $ 924,693 $ TO T A L I N T E R E S T P A Y M E N T S 82 8 , 1 7 4 $ 51 6 , 9 3 4 $ 47 5 , 5 1 8 $ 47 5 , 9 4 9 $ 430,509 $ 389,617 $ H: \ F i n a n c e \ F i n a n c i a l P l a n s \ 2 0 1 5 \ 2 0 1 5 C o u n c i l P r e s e n t a t i o n \ 2 0 1 5 D e b t S u m m a r y - G r a p h . x l s x 1 6 / 0 1 / 2 0 1 5 22 2 STAFF REPORT FINANCE Title: Town of Tillsonburg Ground Lease Agreement Report No.: FIN 15-04 Author: DARRELL EDDINGTON Meeting Type: COUNCIL BUDGET MEETING Council/Committee Date: JANUARY 29, 2015 Attachments: GROUND LEASE AGREEMENT: NOVEMBER, 1994; FEBRUARY, 2004. RECOMMENDATIONS: THAT Council receives report FIN 15-04 Town of Tillsonburg Ground Lease Agreement as information. EXECUTIVE SUMMARY To provide background information to Council on the existing ground lease agreements. BACKGROUND At the budget meeting of January 15, 2015, Council requested further background information on the existing ground lease pertaining to the lands under the Tillsonburg Town Centre. Over the years, the Tillsonburg Town Centre, and therefore the ground lease, has changed ownership and now rests with Arcturus Realty Corporation. The attached documents form one aspect of a complicated arrangement between lessee and lessor. Noteworthy items: • Section 2.1 of the 1994 agreement defines the renewal term, with renewal options expiring on December 31 2071; • Section 2.2 (b) of the 1994 agreement provides for the rent. Section B defines that the rent to December 31, 2014 would be $141,600 and Section C defines the rent from January 1, 2015 thereafter would be $60,000; • Section 2.4 of the 2004 agreement increases the rent by $20,000 from November 4, 1999. 1 CAO 223 APPROVALS Director Name/Signature Darrell Eddington Date: 01/19/15 Finance Name/Signature Darrell Eddington Date: 01/19/15 CAO Name/Signature David Calder Date: 2 CAO 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 TOWN OF TILLSONBURG 2015 OPERATION SERVICES BUSINESS PLAN DIRECTOR OF OPERATIONS 262 2015 Business Objectives – Continued Item Division Owner Budget Value Target Date Subdivision Agreement revision to mitigate construction & financial issues Engineering Director of Operations Q1 Restructure Encroachment Permit process to reduce exposure to risk Engineering Director of Operations Q1 Revise Construction Contract documentation to current specifications Engineering Manager of Engineering Q1to current specifications Engineering Update Engineering Design Criteria to current industry standards & practices Engineering Manager of Engineering Q2 Asset Management Projects Road Condition Assessments Sewer CCTV Inspections Engineering Manager of Engineering $54,870 Q2/Q3 OSIM biennially bridge & culvert inspections (O.Reg. 104/97)Engineering Manager of Engineering $40,000 Q3 Traffic Count Study Engineering Manager of Engineering $30,000 Q2/Q3 263 2015 Business Objectives – Continued Item Division Owner Budget Value Target Date Swance Municipal Drain (Norwich drainage improvement initiative)Engineering Manager of Engineering $100,000 Q3/Q4 Baldwin St. Storm Outlet Repair Engineering Manager of Engineering $50,000 Q2/Q3 Asphalt Resurfacing Program Engineering / Roads Manager of Engineering/ Roads Manager $400,000 Q2/Q3/ Roads Roads Manager North Street Sidewalk – Phase B (Oxford County Rd 20)Engineering Manager of Engineering $50,000 Q3/Q4 TrottierSubdivision Phase 1 Reconstruction – Stage 3 Engineering Manager of Engineering $400,000 Q3/Q4 CamdonCourt Reconstruction Engineering Manager of Engineering $210,000 Q3/Q4 ThirdSt. Reconstruction Engineering Manager of Engineering $70,000 Q3/Q4 264 2015 Business Objectives – Continued Item Division Owner Budget Value Target Date Implement Road Patrol Software IT / Roads IT / Roads Manager $35,000 Q3 Update GPS/AVL winter tracking system Roads / Fleet Roads Manager / Fleet Manager $15,000 Q2 Light Duty Vehicle Replacements Water Unit # 22 – 2001 Ford F150 Fleet Fleet Manager $35,000 Q4 Roads Unit # 23 –2003 Ford F150 Fleet Fleet Manager $35,000 Q4Roads Unit # 23 –2003 Ford F150 Fleet Fleet Manager $35,000 Q4 Engineering Unit # 31 – 2001 Ford F150 Fleet Fleet Manager $35,000 Q4 Pool Unit # 32 – 2002 Pontiac Montana Van Fleet Fleet Manager $35,000 Q4 By-law Unit # 36 – 2004 Chevrolet Cavalier Fleet Fleet Manager $25,000 Q4 MediumDuty Vehicle Replacements Cemetery Unit # 33 – 1997 GMC 2500 Fleet Fleet Manager $55,000 Q3 Fire Unit # 37 – 2007 Ford F250 Fleet Fleet Manager $55,000 Q3 Roads Unit # 40 – 2003 Ford F350 Fleet Fleet Manager $60,000 Q3 Fleet Unit # 42 – 1990 Chevrolet 3500 Fleet Fleet Manager $60,000 Q3 Parks Unit # 43 – 2001 Ford F250 Fleet Fleet Manager $55,000 Q3 Parks Unit # 46 – 2002 Dodge 3500 Fleet Fleet Manager $60,000 Q3 265 2015 Business Objectives – Continued Item Division Owner Budget Value Target Date Heavy Duty Vehicle Replacements Roads Unit # 62 – 2004 Peterbuilt Plow Truck Fleet Fleet Manager $235,000 Q3 Fire Unit # 72 – 1995 Freightliner FL70 Truck Fleet Fleet Manager $300,000 Q2 Off Road Equipment Replacements Roads Unit # 100 – 2002 Leaf Loader Fleet Fleet Manager $45,000 Q3 Roads Unit # 125 – 2000 Underslung Plow Fleet Fleet Manager $15,000 Q3 Parks Unit # 140 – 2006 Hiway Sander Fleet Fleet Manager $12,000 Q3 Hydro Unit # 143 – 1978 Toyota Forklift Fleet Fleet Manager $55,000 Q2 Roads Unit # 155 – 2008 Portable Pump Fleet Fleet Manager $7,000 Q2 Roads Unit # 204 – 2006 Gravely Mower Fleet Fleet Manager $15,000 Q2 266 Risks The Public Transportation and Highway Improvement Act, O.Reg. 104/97 requires all bridges and culverts with a span greater than 3m that are part of the road allowance to be inspected biennially under the direction of a professional engineer. Traffic Count Studies should be completed at a minimum once every 5 years to capture changing traffic patterns to ensure compliance with the Minimum Maintenance Standards O.Reg. 239/02. The Township of Norwich initiated drainage improvements under the Drainage Act to the Swance Municipal Drain. The Drainage Engineers Report assessed the Town with the costs to complete the culvert replacement at Cranberry Road as part ofwiththecoststocompletetheculvertreplacementatCranberryRoadaspartof these drainage improvements. Failure to complete the Baldwin St. Storm Outlet repair could result in slope stability issues and the potential undermining of the roadway and 250mm dia. water main. Early issuance of capital reconstruction tenders is critical to obtain best pricing. Failure to complete capital reconstruction projects will delay other asset needs and increase maintenance costs. 267 Risks Pavement management investment is vital to ensure the right maintenance strategy is executed at the right time to minimize lifecycle costs, prolong asset life and maintain service levels. Implementation of a Road Patrol solution will ensure compliance with the Minimum Maintenance Standards O.Reg. 239/02 and provide protection in claim situations. Current GPS/AVL winter tracking system is on the verge of becoming obsolete and in need of upgrade and expansion for litigation defense purposes. The overall condition &performance of fleet and equipment assets is very poorTheoverallcondition&performance of fleet and equipment assets is very poor resulting in operator safety and service level issues. Continuing along this path will substantially increase annual maintenance costs. Significant long-term investment is required to re-establish condition of fleet and equipment assets. Legislated implementation of Ontario One-Call requires comprehensive review of processes to ensure compliance with the Ontario Underground Infrastructure Notification System Act. Water Distribution, Sewage Collection, and Engineering Services contracts with County currently running on year-to-year basis. Loss of these contracts would significantly affect many of the department in Operation Services. 268 Opportunities Revision of Subdivision Agreement will ensure compliance with municipal design standards and policies, regulatory requirements, and will mitigate future construction and/or financial related issues. Restructuring Encroachment Permit process will increase contractor accountability and public safety while reducing Town’s exposure to risk. Updating the Construction Contract documentation to current specifications will reduce legal liability, project scope creep, and ensure the interests and needs of the Town and its residents are protected. Modifying Engineering Design Criteria of all municipal infrastructure assets to current industry standards and practices will support operational objectives and ensure compliance with changing legislative requirements. An incomplete understanding of an asset’s condition can lead to premature failure or premature replacement. Establishing condition assessment programs will allow updates to the Town’s Asset Management Plan providing a better understanding of the overall network condition as well as preventing future failures, providing liability protection, and avoiding unnecessary expenditures. 269 Opportunities Under the Urban Maintenance Agreement with Oxford County the Town is responsible for only 50% of the costs associated with new sidewalk installations along County roadways. Develop Town specific asset management strategies for all linear infrastructure including a standardized capital project prioritization methodology based on asset risk to provide both short term business plans and long range planning objectives. Implementation of a Fleet and Equipment maintenance program to track true costs will provide additional support when selecting unit replacements. Implementation of accurate GIS infrastructure mapping to increase Ontario One-Call locate request efficiency. Detailed review of Rates & Fees Bylaw to ensure the appropriate cost recovery charges are applied for hot water tanks, labour, fleet, etc. 270 Future Departmental Directions: 3 year outlook Rehabilitate/Replace infrastructure identified following a standardized capital project methodology based on asset risk to maximize approved capital budgets. Continue asset condition assessment programs to adjust deterioration curves, predict end of life scenarios, and optimize life cycle maintenance strategies. Review winter maintenance program including the development of a winter 2016 Review winter maintenance program including the development of a winter operations plan to identify efficiencies and optimize overall winter operations. Accurately inventory regulatory signs, streetlights and signalized intersection infrastructure and incorporate into Asset Management Plan. Continue Fleet & Equipment asset management and financing strategy to improve overall condition, operator safety and service levels. Comprehensive review of Roads, Water, Wastewater, and Engineering policies and procedures to improve documentation and information retention. Water & Wastewater Rates review for implementation in 2017 to 2020. Pursue Provincial and Federal capital funding programs when available 271 Future Departmental Directions: 3 year outlook Rehabilitate/Replace infrastructure identified following a standardized capital project methodology based on asset risk to maximize approved capital budgets. Continue asset condition assessment programs to adjust deterioration curves, predict end of life scenarios, and optimize life cycle maintenance strategies. Prepare an update to the Town’s Asset Management Plan. 2017 Prepare an update to the Town’s Asset Management Plan. Investigate and develop business case for LED streetlight conversion. Continue Fleet & Equipment asset management and financing strategy to improve overall condition, operator safety and service levels. Implement a leak detection program to reduce costs associated with potable water losses through leaks. Pursue Provincial and Federal capital funding programs when available 272 Future Departmental Directions: 3 year outlook Rehabilitate/Replace infrastructure identified following a standardized capital project methodology based on asset risk to maximize approved capital budgets. Continue asset condition assessment programs to adjust deterioration curves, predict end of life scenarios, and optimize life cycle maintenance strategies. Implement LED streetlight conversion program (if viable) 2018 Implement LED streetlight conversion program (if viable) Continue Fleet & Equipment asset management and financing strategy to improve overall condition, operator safety and service levels. Implement an inflow and infiltration program to identify areas to reduce flows to Sewage treatment plant. Pursue Provincial and Federal capital funding programs when available 273 Human Resources Allocation/Deployment Plan 2014 2015 2016 Total FTE Requirements 18.25 19 19.25 Change from previous year (.25).75 .25 2014 2015 2016 Total FTE Requirements-Full time 36 34 34 Total FTE Requirements-Part time 4.47 4.47 4.47 Change from previous year (.25).75 .25 Contract Staff 0 0 0 Change from previous year 0 (2) 0 274 Roads - Consolidated 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential - - - 3005 Taxes - Multi-Residential - - - 3010 Taxes - Commercial - - - 3012 Taxes - Commercial Vacant Unit - - - 3014 Taxes - Commercial Vacant Land - - - 3020 Taxes - Shopping Centre - - - 3022 Taxes - Shopping Centre Vacant Unit - - - 3030 Taxes - Industrial - - - 3032 Taxes - Industrial Vacant Unit - - - 3034 Taxes - Industrial Vacant Land - - - 3040 Taxes - Pipelines - - - 3050 Taxes - Farmland - - - 3055 Taxes - Farmland Dev. Phase 1 - - - 3060 Taxes - Large Industrial - - - 3062 Taxes - Large Industrial Vacant Unit - - - 3070 Taxes - Supplementaries - - - 3075 Taxes - Bill 79 Capped Levy - - - 3080 Taxes - Capped Rebates/Claw Backs - - - 3085 Taxes - W/O's - - - 3090 Taxes - PIL's - - - 3095 Local Improvements - Residential - - - 3096 Local Improvements - Commercial - - - 3100 Tax Adjustments - - - 3105 Taxes - Penalty & Interest - - - Government Grants & Subsidies - - - 3200 Grants & Subsidies - Federal - - - 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other 68,602 76,000 71,130 User Charges - - - 3300 Miscellaneous Revenue - - - 3301 Residential Usage - - - 3302 General Usage - - - 3305 Admissions - - - 3310 Fares & Fees - - - 3315 Memberships - - - 3320 Seasonal Revenues - - - 3325 Sports Fields Fees - - - 3330 Youth Program Fees - - - 3335 Adult Program Fees - - - 3340 Summer Programs - - - 3345 Participate Programs - - - 3350 Minor Hockey - - - 3355 Figure Skating - - - 3360 Programs - - - 3365 Landscaping - - - 3400 Permit Fees - - - 3410 Licence Fees - - - 3420 Certificates - - - 3430 Inspections - - - 3500 Rentals - - - 3505 Merchandise - - - 3510 Concession Sales - - - 3515 Vending Machines - - - 3600 Interest - - - 3601 Late Payment Charges - - - 3700 Special - - - 3701 Capital Surchrge - Residential - - - 3702 Capital Surchrge - General - - - 3705 Donations - - - 3800 Sewer Revenue-Surcharge - - - 3801 Reg 170 Surchrge - Residential - - - 3802 Reg 170 Surchrge - General - - - 3815 Extraordinary Revenue - - - 3999 Revenue Clearing Account - - - Specified Revenues - - - 3805 Development Charges - - - 3810 Sale of Assets - - - 3820 Debenture Proceeds - - - Contribution from Reserves - - - 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves - - - 68,602 76,000 71,130 Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 170, 220, 225, 235, 260 Roads - Consolidated.xls 08/01/2015 1:38 PM Page 1 of 2 275 Roads - Consolidated 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 658,772 609,434 687,643 5002 Full-Time Overtime 40,805 89,228 51,800 5003 Part-Time Regular 105,630 168,842 151,757 5004 Part-Time Overtime 6,646 20,502 9,400 Purchases - - - 5105 Equipment Rental 3,500 6,334 4,700 5110 Fuel & Oil - - - 5115 Discounts Taken - - - 5200 Materials/Inventory 11,000 12,299 12,000 5300 Supplies 175,200 200,768 176,600 5305 Program Supplies - - - 5310 Equipment Supplies & Repairs 3,527 2,075 2,800 5315 Books & Publications 500 498 500 5320 Building Repairs & Maintenance 4,000 1,200 4,000 5325 Heat, Light & Water 242,000 246,218 267,200 5330 Insurance 132,076 134,231 120,501 5331 Insurance Claims - 2,343 - 5335 Telephone, Fax & Modem 5,000 4,960 5,000 5400 Miscellaneous Expense 6,600 5,713 6,500 5405 Meeting Expenses - - - 5410 Advertising & Promotions - 2,927 - 5415 Training & Workshops 4,500 4,695 4,500 5420 Special Events - - - 5425 Special Projects 2,000 2,000 - 5430 Membership Expenses 1,000 1,383 1,500 5600 Rent Expense - - - 5605 Interest And Finance Charges - - - 5850 Bad Debt Expense - - - 5800 Tax External Payments - - - Contracted Services - - - 5500 Consultants, Legal & Audit 5,000 - 1,500 5505 Subcontractors Expense 262,500 266,293 268,000 5510 Equipment Maintenance Contracts - - - Contributions to Reserves - - - 5950 Contributions to Reserves 82,698 82,698 - 5955 Contributions to DC Reserves - 1,840 - 1,752,954 1,866,480 1,775,901 1,684,352 1,790,480 1,704,771 Interfunctional Adjustments 5100 Fleet Allocation 325,579 333,029 351,784 5650 Facilities Allocation - - - 5700 Corp Admin Allocation 53,176 53,176 54,459 5705 Comm. Services Allocation - - - 5710 Operations Allocation - - - 378,755 386,205 406,243 2,063,107 2,176,685 2,111,014 Debt Principal and Interest 5900 Debt Interest 171,187 171,187 155,907 5905 Debt Principal 178,719 180,719 151,757 3950 Prior year (surplus) deficit - - - Total Net Levy 2,413,014 2,528,590 2,418,679 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 170, 220, 225, 235, 260 Roads - Consolidated.xls 08/01/2015 1:38 PM Page 2 of 2 276 170 - Conservation 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vancant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial 3210 Grants & Subsidies-Other Other Revenues 3300 Miscellaneous Revenue Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 170 Conservation.xls 08/01/2015 1:38 PM Page 1 of 3 277 170 - Conservation 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves - - - Expenditures Labour 5001 Full-time Regular 1,980 3,026 3,000 5002 Full-Time Overtime - 199 - 5003 Part-Time Regular 120 290 500 5004 Part-Time Overtime - 153 - Purchases 5105 Equipment Rental 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 1,000 818 1,000 5305 Program Supplies 5310 Equipment Supplies & Repairs 5315 Books & Publications 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 5330 Insurance 5331 Insurance Claims 5335 Telephone, Fax & Modem 5400 Miscellaneous Expense 1,500 680 1,500 5400 Miscellaneous Expense 1,500 680 1,500 5405 Meeting Expenses 5410 Advertising & Promotions 5415 Training & Workshops 5420 Special Events 5425 Special Projects 5430 Membership Expenses 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5505 Subcontractors Expense 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves 4,600 5,166 6,000 4,600 5,166 6,000 Interfunctional Adjustments 5100 Fleet Allocation 567 564 1,560 5650 Facilities Allocation 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation 567 564 1,560 5,167 5,730 7,560 Debt Principal and Interest 5900 Debt Interest 759 759 179 5905 Debt Principal 2,303 2,303 587 3950 Prior year (surplus) deficit - - - H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 170 Conservation.xls 08/01/2015 1:38 PM Page 2 of 3 278 170 - Conservation 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Total Net Levy 8,229 8,792 8,325 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 170 Conservation.xls 08/01/2015 1:38 PM Page 3 of 3 279 5 year Capital Plan Description Expenditures Contribution to Reserves 1 2 3 4 5 2015 - - 1 2 3 4 5 2016 - - 1 2 3 4 5 2017 - - Town of Tillsonburg 2015 Financial Plan Capital Costs 5 yr Capital Plan Page 1 of 2 08/01/2015280 5 year Capital Plan Description Expenditures Contribution to Reserves Town of Tillsonburg 2015 Financial Plan Capital Costs 1 2 3 4 5 2018 - - 1 2 3 4 5 2019 - - 5 yr Capital Plan Page 2 of 2 08/01/2015281 220 - Roads 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vacant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential - - - 3096 Local Improvements - Commercial - - - 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal - - - 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other 68,602 76,000 71,130 User Charges 3300 Miscellaneous Revenue - - - 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges - - - 3810 Sale of Assets 3820 Debenture Proceeds Contributions from Reserves 3900 Contribution From Reserves - - - 3905 Contributions From DC Reserves - - - 68,602 76,000 71,130 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 220 Roads.xls 08/01/2015 1:39 PM Page 1 of 2 282 220 - Roads 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 505,179 421,975 506,993 5002 Full-Time Overtime 14,950 46,208 22,800 5003 Part-Time Regular 70,360 115,309 101,107 5004 Part-Time Overtime 1,000 6,294 1,400 Purchases 5105 Equipment Rental 2,000 1,493 2,000 5110 Fuel & Oil - - - 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 45,000 43,260 43,600 5305 Program Supplies 5310 Equipment Supplies & Repairs 3,527 2,075 2,800 5315 Books & Publications 500 498 500 5320 Building Repairs & Maintenance 4,000 1,200 4,000 5325 Heat, Light & Water 30,000 31,525 34,000 5330 Insurance 132,076 134,231 120,501 5331 Insurance Claims - 2,343 - 5335 Telephone, Fax & Modem 5,000 4,960 5,000 5400 Miscellaneous Expense 5,100 4,888 5,000 5405 Meeting Expenses 5410 Advertising & Promotions - 2,927 - 5415 Training & Workshops 3,000 3,195 3,000 5420 Special Events 5425 Special Projects 5430 Membership Expenses 1,000 1,383 1,500 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5,000 - 1,500 5505 Subcontractors Expense 215,700 216,644 216,000 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves 82,698 82,698 - 5955 Contributions to DC Reserves - - - 1,126,090 1,123,106 1,071,701 1,057,488 1,047,106 1,000,571 Interfunctional AdjustmentsInterfunctional Adjustments 5100 Fleet Allocation 129,065 127,967 136,042 5650 Facilities Allocation - - - 5700 Corp Admin Allocation 53,176 53,176 54,459 5705 Comm. Services Allocation 5710 Operations Allocation 182,241 181,143 190,501 1,239,729 1,228,249 1,191,072 Debt Principal and Interest 5900 Debt Interest 159,912 159,912 153,249 5905 Debt Principal 144,508 146,507 143,044 3950 Prior year (surplus) deficit - - - Total Net Levy 1,544,149 1,534,668 1,487,365 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 220 Roads.xls 08/01/2015 1:39 PM Page 2 of 2 283 5 year Capital Plan Description Total Project Expenditures Hydro Sanitary Sewer Water Roads 2014 Work in Progress 1 - - 2 226 Ridge Boulevard Stage 2 - Suface Asphalt 371,968 371,968 3 235 Glendale Area Recon - Stage 1 - Surface Asphalt 174,802 174,802 4 244 Glendale Area Recon - Stage 2 - Surface Asphalt 324,741 324,741 5 6 7 871,511 - - - 871,511 2015 CAPITAL PROJECTS 1 Asphalt Resufacing Program 400,000 400,000 2 North Street Sidewalk - Phase B 50,000 50,000 3 Road Patrol Software - - 4 Trottier Subdivision Phase 1 Reconstruction - Stage 3 660,000 10,000 250,000 350,000 5 Thrid St. Reconstruction 160,000 85,000 5,000 55,000 6 Camdon Court Reconstruction 375,000 10,000 155,000 165,000 7 Asset Management Projects 54,870 54,870 1,699,870 - 105,000 410,000 1,074,870 2016 CAPITAL PROJECTS 1 Asphalt Resufacing Program 400,000 400,000 2 North Street Sidewalk - Phase C 60,000 60,000 3 Trottier Subdivision Phase 1 Reconstruction - Stage 4 450,000 160,000 240,000 Town of Tillsonburg 2015 Financial Plan Non-Town Portion 3 Trottier Subdivision Phase 1 Reconstruction - Stage 4 450,000 160,000 240,000 4 Riverview Area Recon. - Stage 1 (Hillyndale, Highland)788,332 279,972 216,216 176,022 5 Bradurn Area Recon - Stage 1 (James, Hilltop, Brad)440,000 5,000 175,000 240,000 6 7 2,138,332 - 284,972 551,216 1,116,022 5 yr Capital Plan Page 1 of 2 08/01/2015284 5 year Capital Plan Description Total Project Expenditures Hydro Sanitary Sewer Water Roads Town of Tillsonburg 2015 Financial Plan Non-Town Portion 2017 CAPITAL PROJECTS 1 Asphalt Resufacing Program 300,000 300,000 2 Concession St. E. Recon. - Maple to Demeyere 889,251 10,000 10,000 759,526 3 Riverview Area Recon. - Stage 2 (Brich, Hillside)658,046 233,310 181,180 146,685 4 5 6 7 1,847,297 - 243,310 191,180 1,206,211 2018 CAPITAL PROJECTS 1 Asphalt Resufacing Program 400,000 300,000 2 Rolling Meadows Recon - Stage 1 (Woodcock)370,000 10,000 120,000 215,000 3 Bradburn Area Recon - Stage 2 (James, Woodland)465,000 5,000 185,000 250,000 4 Goshen St. Area Recon - Stage 1 (Hwy 3 to Townline)565,000 200,000 155,000 125,000 5 Young St. Recon - Stage 1 (Storm Outlet)260,000 6 Old Vienna Rd - Big Otter Creek Erosion 270,000 270,000 7 2,330,000 - 215,000 460,000 1,160,000 2019 CAPITAL PROJECTS 1 Asphalt Resufacing Program 300,000 300,000 2 Rolling Meadows Recon - Stage 2 (Owl, Tanger, Falcon)865,000 285,000 275,000 185,000 3 Goshen St. Area Recon - Stage 2 (Townline & Goshen)695,000 250,000 190,000 155,000 3 Goshen St. Area Recon - Stage 2 (Townline & Goshen)695,000 250,000 190,000 155,000 4 Young St. Recon - Stage 2 (Vienna to North of Hwy 3)535,000 15,000 15,000 395,000 5 Lincoln St. Recon - Stage 1 (Cedar to Tilson)755,000 270,000 205,000 160,000 6 7 3,150,000 - 820,000 685,000 1,195,000 5 yr Capital Plan Page 2 of 2 08/01/2015285 225 - Winter Maintenance 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vacant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial 3210 Grants & Subsidies-Other User Charges 3300 Miscellaneous Revenue 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves 3905 Contribution from DC Reserves - - - H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 225 Winter Maintenance.xls 08/01/2015 1:40 PM Page 1 of 2 286 225 - Winter Maintenance 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 101,088 116,224 109,595 5002 Full-Time Overtime 23,355 39,759 26,500 5003 Part-Time Regular 35,150 42,088 39,350 5004 Part-Time Overtime 5,646 13,123 8,000 Purchases 5105 Equipment Rental 1,500 4,842 2,700 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 110,000 149,919 116,000 5305 Program Supplies 5310 Equipment Supplies & Repairs 5315 Books & Publications 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 5330 Insurance 5331 Insurance Claims - - - 5335 Telephone, Fax & Modem 5400 Miscellaneous Expense 5405 Meeting Expenses 5410 Advertising & Promotions - - - 5415 Training & Workshops 1,500 1,500 1,500 5420 Special Events 5425 Special Projects 5430 Membership Expenses 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5505 Subcontractors Expense 1,800 4,876 3,000 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves 5955 Contributions to DC Reserves 280,039 372,331 306,645 280,039 372,331 306,645 Interfunctional AdjustmentsInterfunctional Adjustments 5100 Fleet Allocation 175,338 175,723 175,352 5650 Facilities Allocation 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation 175,338 175,723 175,352 455,377 548,054 481,997 Debt Principal and Interest 5900 Debt Interest 5905 Debt Principal 3950 Prior year (surplus) deficit Total Net Levy 455,377 548,054 481,997 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 225 Winter Maintenance.xls 08/01/2015 1:40 PM Page 2 of 2 287 235 - Streetlights 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vacant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial 3210 Grants & Subsidies-Other User Charges 3300 Miscellaneous Revenue - - - 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special - - - 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds Contribution fom Reserves 3900 Contribution fom Reserves 3905 Contribution fom DC Reserves - - - H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 235 Streetlights.xls 08/01/2015 1:40 PM Page 1 of 2 288 235 - Streetlights 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 24,000 30,985 26,460 5002 Full-Time Overtime 1,500 1,378 1,500 5003 Part-Time Regular - - - 5004 Part-Time Overtime Purchases 5105 Equipment Rental 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 11,000 12,299 12,000 5300 Supplies 12,000 1,984 11,000 5305 Program Supplies 5310 Equipment Supplies & Repairs 5315 Books & Publications 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 212,000 214,692 233,200 5330 Insurance 5331 Insurance Claims 5335 Telephone, Fax & Modem 5400 Miscellaneous Expense - 144 - 5405 Meeting Expenses 5410 Advertising & Promotions - - - 5415 Training & Workshops 5420 Special Events 5425 Special Projects 5430 Membership Expenses 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5505 Subcontractors Expense 3,000 2,331 3,000 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves 263,500 263,814 287,160 263,500 263,814 287,160 Interfunctional Adjustments 5100 Fleet Allocation 8,248 16,415 17,200 5100 Fleet Allocation 8,248 16,415 17,200 5650 Facilities Allocation 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation 8,248 16,415 17,200 271,748 280,229 304,360 Debt Principal and Interest 5900 Debt Interest 5905 Debt Principal 3950 Prior year (surplus) deficit - - - Total Net Levy 271,748 280,229 304,360 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 235 Streetlights.xls 08/01/2015 1:40 PM Page 2 of 2 289 5 year Capital Plan Description Expenditures Contribution to Reserves 1 Town of Tillsonburg 2015 Financial Plan Capital Costs 1 2 3 4 5 2015 - - 1 LED Streetlights Conversion - 2 3 4 5 2016 - - 2016 - - 1 2 3 44 5 2017 - - 1 2 3 4 5 2018 - - 1 2 3 4 5 2019 - - 5 yr Capital Plan Page 1 of 1 08/01/2015290 260 - Storm Sewers 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vacant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial 3210 Grants & Subsidies-Other User Charges 3300 Miscellaneous Revenue - - - 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges - - - 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves 3905 Contribution from DC Reserves - - - H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 260 Storm Sewers.xls 08/01/2015 1:41 PM Page 1 of 2 291 260 - Storm Sewers 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 26,525 37,224 41,595 5002 Full-Time Overtime 1,000 1,683 1,000 5003 Part-Time Regular - 11,154 10,800 5004 Part-Time Overtime - 931 - Purchases 5105 Equipment Rental - - - 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 7,200 4,788 5,000 5305 Program Supplies 5310 Equipment Supplies & Repairs 5315 Books & Publications 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 5330 Insurance 5331 Insurance Claims - - - 5335 Telephone, Fax & Modem 5400 Miscellaneous Expense - - - 5405 Meeting Expenses 5410 Advertising & Promotions 5415 Training & Workshops - - - 5420 Special Events 5425 Special Projects 2,000 2,000 - 5430 Membership Expenses 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5505 Subcontractors Expense 42,000 42,442 46,000 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves - 1,840 - 78,725 102,063 104,395 78,725 102,063 104,395 Interfunctional Adjustments 5100 Fleet Allocation 12,361 12,360 21,630 5100 Fleet Allocation 12,361 12,360 21,630 5650 Facilities Allocation 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation 12,361 12,360 21,630 91,086 114,423 126,025 Debt Principal and Interest 5900 Debt Interest 10,516 10,516 2,479 5905 Debt Principal 31,908 31,908 8,127 3950 Prior year (surplus) deficit - - - Total Net Levy 133,511 156,847 136,631 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 260 Storm Sewers.xls 08/01/2015 1:41 PM Page 2 of 2 292 5 year Capital Plan Description Expenditures Contribution to Reserves 1 Swance Municipal Drain - Norwich 38,000 Town of Tillsonburg 2015 Financial Plan Capital Costs 1 Swance Municipal Drain - Norwich 38,000 2 3 4 5 2014 CARRY FORWARD PROJECTS 38,000 - 1 Swance Municipal Drain - Norwich 100,000 2 Baldwin St Storm Outlet 50,000 3 4 5 2015 CAPITAL PROJECTS 150,000 - 1 2 3 4 5 2016 CAPITAL PROJECTS - - 2016 CAPITAL PROJECTS - - 1 2 3 4 5 2017 CAPITAL PROJECTS - - 1 2 33 4 5 2018 CAPITAL PROJECTS - - 1 22 3 4 5 2019 CAPITAL PROJECTS - - 5 yr Capital Plan Page 1 of 1 08/01/2015293 230 - Parking 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 15,044 15,044 15,044 3005 Taxes - Multi-Residential 2,592 6,514 2,592 3010 Taxes - Commercial 118,453 118,202 118,453 3012 Taxes - Commercial Vacant Unit - - - 3014 Taxes - Commercial Vacant Land - 464 - 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial - - - 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries - 52 - 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 2,171 (1,041) 2,171 3090 Taxes - PIL's 1,200 - 1,200 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial 3210 Grants & Subsidies-Other User Charges 3300 Miscellaneous Revenue - - - 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special - 1,430 - 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges - 8,356 - 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves - - - 139,460 149,021 139,460 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 230 Parking.xls 08/01/2015 1:42 PM Page 1 of 2 294 230 - Parking 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 22,848 16,736 26,800 5002 Full-Time Overtime - 275 500 5003 Part-Time Regular 5,100 3,988 5,500 5004 Part-Time Overtime 5060 Retroactive Pay Expense Purchases 5105 Equipment Rental 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 3,950 2,675 3,000 5305 Program Supplies 5310 Equipment Supplies & Repairs 5315 Books & Publications 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 5330 Insurance 5331 Insurance Claims - - - 5335 Telephone, Fax & Modem 5400 Miscellaneous Expense - - - 5405 Meeting Expenses 5410 Advertising & Promotions - - - 5415 Training & Workshops 5420 Special Events 5425 Special Projects 5430 Membership Expenses 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5505 Subcontractors Expense 25,694 54,169 27,000 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves 328 328 - 5955 Contributions to DC Reserves - 9,786 - 57,920 87,958 62,800 (81,540) (61,063) (76,660) Interfunctional Adjustments 5100 Fleet Allocation 33,922 33,928 28,516 5100 Fleet Allocation 33,922 33,928 28,516 5650 Facilities Allocation 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation 33,922 33,928 28,516 (47,618) (27,135) (48,144) Debt Principal and Interest 5900 Debt Interest 8,591 8,591 8,287 5905 Debt Principal 6,837 6,837 6,837 3950 Prior year (surplus) deficit - - - Total Net Levy (32,189) (11,708) (33,020) H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 230 Parking.xls 08/01/2015 1:42 PM Page 2 of 2 295 5 year Capital Plan Description Expenditures Contribution to Reserves 1 Future parking lot repairs 33,020 2 3 4 5 2015 - 33,020 1 Future parking lot repairs 34,011 2 Rehabilitate Parking Lot 9A - 3 Rehabilitate Parking Lots 5A - 4 5 2016 - 34,011 1 Future parking lot repairs 35,031 2 Rehabilitate Parking Lot 7A - 3 4 5 2017 - 35,031 1 Future parking lot repairs 36,082 2 Rehabilitate Parking Lots 8A - 3 Rehabilitate Parking Lots 11A - 4 5 2018 - 36,082 1 Future parking lot repairs 37,164 2 Rehabilitate Parking Lot 6A - 3 4 5 2019 - 37,164 Town of Tillsonburg 2015 Financial Plan Capital Costs 5 yr Capital Plan Page 1 of 1 08/01/2015296 280 - Solid Waste & Recycling 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vancant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial 3210 Grants & Subsidies-Other 131,660 142,888 143,420 User Charges 3300 Miscellaneous Revenue 20,000 20,316 21,000 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 3505 Merchandise 88,000 118,774 116,700 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Captial Surchrge - Residential 3702 Captial Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves 239,660 281,978 281,120 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 280 Solid Waste.xls 08/01/2015 1:43 PM Page 1 of 2 297 280 - Solid Waste & Recycling 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 50,300 68,568 73,300 5002 Full-Time Overtime 2,430 2,046 1,200 5003 Part-Time Regular 21,900 11,964 26,800 5004 Part-Time Overtime - 109 125 Purchases 5105 Equipment Rental 600 1,129 1,300 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 83,500 124,268 95,800 5300 Supplies 500 500 500 5305 Program Supplies 5310 Equipment Supplies & Repairs 5315 Books & Publications 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 500 1,022 1,200 5330 Insurance 17 - - 5331 Insurance Claims 5335 Telephone, Fax & Modem 5400 Miscellaneous Expense - - - 5405 Meeting Expenses 5410 Advertising & Promotions 1,400 1,270 - 5415 Training & Workshops - - - 5420 Special Events 5425 Special Projects 5430 Membership Expenses 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5505 Subcontractors Expense 95,800 83,528 94,300 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves 256,947 294,404 294,525 17,287 12,426 13,405 Interfunctional Adjustments 5100 Fleet Allocation 90,285 90,288 84,220 5650 Facilities Allocation5650Facilities Allocation 5700 Corp Admin Allocation 25,225 25,224 25,533 5705 Comm. Services Allocation 5710 Operations Allocation 6,895 6,504 6,835 122,405 122,016 116,588 139,692 134,442 129,993 Debt Principal and Interest 5900 Debt Interest 5905 Debt Principal 3950 Prior year (surplus) deficit - - - Total Net Levy 139,692 134,442 129,993 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 280 Solid Waste.xls 08/01/2015 1:43 PM Page 2 of 2 298 5 year Capital Plan Description Expenditures Contribution to Reserves 1 2 3 4 5 2015 - - 1 2 3 4 5 2016 - - 1 2 3 4 5 2017 - - 1 2 3 4 5 2018 - - 1 2 3 4 5 2019 - - Town of Tillsonburg 2015 Financial Plan Capital Costs 5 yr Capital Plan Page 1 of 1 08/01/2015299 130 - Fleet 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential - - - 3005 Taxes - Multi-Residential - - - 3010 Taxes - Commercial - - - 3012 Taxes - Commercial Vacant Unit - - - 3014 Taxes - Commercial Vancant Land - - - 3020 Taxes - Shopping Centre - - - 3022 Taxes - Shopping Centre Vacant Unit - - - 3030 Taxes - Industrial - - - 3032 Taxes - Industrial Vacant Unit - - - 3034 Taxes - Industrial Vacant Land - - - 3040 Taxes - Pipelines - - - 3050 Taxes - Farmland - - - 3055 Taxes - Farmland Dev. Phase 1 - - - 3060 Taxes - Large Industrial - - - 3062 Taxes - Large Industrial Vacant Unit - - - 3070 Taxes - Supplementaries - - - 3075 Taxes - Bill 79 Capped Levy - - - 3080 Taxes - Capped Rebates/Claw Backs - - - 3085 Taxes - W/O's - - - 3090 Taxes - PIL's - - - 3095 Local Improvements - Residential - - - 3096 Local Improvements - Commercial - - - 3100 Tax Adjustments - - - 3105 Taxes - Penalty & Interest - - - Government Grants & Subsidies - - - 3200 Grants & Subsidies - Federal - - - 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other - - - User Charges - - - 3300 Miscellaneous Revenue 8,000 3,173 1,400 3301 Residential Usage - - - 3302 General Usage - - - 3305 Admissions - - - 3310 Fares & Fees - - - 3315 Memberships - - - 3320 Seasonal Revenues - - - 3325 Sports Fields Fees - - - 3330 Youth Program Fees - - - 3335 Adult Program Fees - - - 3340 Summer Programs - - - 3345 Participate Programs - - - 3350 Minor Hockey - - - 3355 Figure Skating - - - 3360 Programs - - - 3365 Landscaping - - - 3400 Permit Fees - - - 3410 Licence Fees - - - 3420 Certificates - - - 3430 Inspections - - - 3500 Rentals 1,134,622 1,135,351 1,161,382 3505 Merchandise - - - 3510 Concession Sales - - - 3515 Vending Machines - - - 3600 Interest - - - 3601 Late Payment Charges - - - 3700 Special - - - 3701 Capital Surchrge - Residential - - - 3702 Capital Surchrge - General - - - 3705 Donations - - - 3800 Sewer Revenue-Surcharge - - - 3801 Reg 170 Surchrge - Residential - - - 3802 Reg 170 Surchrge - General - - - 3815 Extraordinary Revenue - - - 3999 Revenue Clearing Account - - - Specified Revenues - - - 3805 Development Charges - 38,294 - 3810 Sale of Assets - - - 3820 Debenture Proceeds - - - Contribution from Reserves - - - 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves - - - 1,142,622 1,176,818 1,162,782 Town of Tillsonburg 2015 Financial Plan 2014 Operating Plan - Cost Code Summary Total H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 130 Fleet.xls 08/01/2015 1:43 PM Page 1 of 2 300 130 - Fleet 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan 2014 Operating Plan - Cost Code Summary Total Expenditures Labour 5001 Full-time Regular 217,120 226,397 243,160 5002 Full-Time Overtime - 35,040 8,912 5003 Part-Time Regular - - - 5004 Part-Time Overtime - - - Purchases 5105 Equipment Rental - 1,634 1,000 5110 Fuel & Oil 136,750 156,211 167,542 5115 Discounts Taken - - - 5200 Materials/Inventory - - - 5300 Supplies 23,500 26,002 26,000 5305 Program Supplies - - - 5310 Equipment Supplies & Repairs 173,450 320,486 238,300 5315 Books & Publications 400 - 400 5320 Building Repairs & Maintenance 2,000 1,990 3,500 5325 Heat, Light & Water - - - 5330 Insurance 35,254 33,848 30,685 5331 Insurance Claims 5335 Telephone, Fax & Modem 11,000 8,971 11,000 5400 Miscellaneous Expense 13,999 16,758 17,990 5405 Meeting Expenses - - - 5410 Advertising & Promotions 800 1,023 - 5415 Training & Workshops 3,500 1,410 3,500 5420 Special Events - - - 5425 Special Projects 4,500 4,205 4,500 5430 Membership Expenses 250 219 250 5600 Rent Expense - - - 5605 Interest And Finance Charges - - - 5850 Bad Debt Expense - - - 5800 Tax External Payments - - - Contracted Services - - - 5500 Consultants, Legal & Audit - - - 5505 Subcontractors Expense 7,000 5,936 14,200 5510 Equipment Maintenance Contracts - - - Contributions to Reserves - - - 5950 Contributions to Reserves 3,730 - - 5955 Contributions to DC Reserves - 38,294 - 633,253 878,423 770,939 (509,369) (298,395) (391,843) Interfunctional Adjustments - - - 5100 Fleet Allocation - - - 5650 Facilities Allocation - - - 5700 Corp Admin Allocation - - - 5705 Comm. Services Allocation - - - 5710 Operations Allocation - - - - - - (509,369) (298,395) (391,843) Debt Principal and Interest - - - 5900 Debt Interest 37,802 38,570 34,202 5905 Debt Principal 95,715 95,472 95,611 3950 Prior year (surplus) deficit - - - Total Net Levy (375,852) (164,352) (262,030) H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 130 Fleet.xls 08/01/2015 1:43 PM Page 2 of 2 301 5 year Capital Plan Description Expenditures Contribution to Reserves 1 062 330 Underslung Plow Truck $235,000 2 072 FL70 Truck $300,000 3 023 F150 Pickup Truck $35,000 4 031 F150 Pickup Truck $35,000 5 032 Montana Van $35,000 6 022 F150 Pickup Truck $35,000 7 037 F250 Pickup Truck $55,000 Town of Tillsonburg 2015 Financial Plan Capital Costs 7 037 F250 Pickup Truck $55,000 8 036 Cavalier Car $25,000 9 040 F350 Pickup Truck $60,000 10 042 3500 Pickup Truck $60,000 11 043 F250 Pickup Truck $50,000 12 046 D3500 Pickup Truck $60,000 13 033 2500 Dump Pickup Truck $55,000 14 125 Underslung $15,000 15 100 Leaf Loader $45,000 16 155 Portable Pump $7,000 17 140 Slide-in Sander $12,000 18 143 Forklift $55,000 19 204 Y320 Mower $15,000 067 CFWD - Trackless MT6 $130,000067CFWD - Trackless MT6 $130,000 069 CFWD - Hydro Bucket $325,000 2015 1,644,000 - 1 Fire Pumper and Rescue replacements for #70 & 72 200,000 2 066 Snowplow sander replacement #75 - Roads 100,000 3 1 Ton crewcab with service body and crane - replacement #23 - Roads 139,010 4 1 Ton with steel dump body - replacement #41 - Water 90,000 5 1 ton with aluminum contractor dump body - replacement #40 Parks 112,743 6 Snowplow sander replacement #62 - Roads 332,000 6 Snowplow sander replacement #62 - Roads 332,000 7 Cargo van replacement #45 - Water 35,000 8 Loader replacement #80 - Roads 200,000 9 Tractor backhoe - replacement #86 Water 126,677 10 Pickup Truck replacement #29 - Parks 35,000 11 Trackless broom attachment - replacement #95 9,501 12 Road Line Painting Machine replacement # 115 - Roads 12,360 13 Tractor replacement #88 - Parks 45,604 14 Cable Stringing Truck replacement #74 - Hydro 412,000 2016 1,849,895 - 1 Snowplow sander replacement #64 - Roads 332,000 2 Passenger car replacement #36 - Bylaw 30,402 3 Tractor _ replacement #89 Parks 46,972 4 Trackless MT6 - replacement #84 roads 154,698 5 Flail mower replacement #98 - Roads 16,000 6 Rotary mower replacement #202 - Airport 20,000 7 Boom flail replacement #135 - Roads 19,000 8 Tandem trailer replacement #231 - Roads 16,000 9 Diamond groomer replacement #132 - Parks 22,000 10 Tractor backhoe - replacement #87 Cemetery 126,677 11 Paint trailer replacement #230 - Roads 17,000 12 Pickup replacement #19 - Engineering 45,000 13 Minivan replacement #26 - Water 34,000 14 Sewer rodder replacement #110 - Roads 63,000 14 Sewer rodder replacement #110 - Roads 63,000 15 Plow replacement #120 - Roads 11,069 16 Plow replacement #121 - Roads 11,068 17 Wing replacement #122 - Roads 11,069 18 Wing replacement #123 - Roads 11,068 19 Wing replacement #124 - Roads 11,069 20 Mini van replacement #20 - Fleet pool 41,500 21 Pickup replacement #25 - Roads 36,271 5 yr Capital Plan Page 1 of 2 08/01/2015302 5 year Capital Plan Description Expenditures Contribution to Reserves Town of Tillsonburg 2015 Financial Plan Capital Costs 2017 1,075,863 - 1 Aerial Platform - replacement #73 - Fire 1,221,671 2 RBD Derrick replacement #68 - Hydro 500,000 3 Pickup truck replacement #21 - Roads 37,360 4 One ton service truck with crane replacement #44 - Water 147,476 5 One ton with aluminum dump body replacement #47 - Roads 112,743 6 7 8 2018 2,019,250 - 1 Snowplow sander replacement #60 - Roads 332,000 2 Loader replacement #81 - Roads 220,000 4 Road Sweeper replacement #85 - Roads 203,000 5 Trackless MT6 - replacement #83 roads 154,698 6 2019 909,698 - 5 yr Capital Plan Page 2 of 2 08/01/2015303 210 - Engineering 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vancant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 1,280 - - 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other Other Revenues 3300 Miscellaneous Revenue 62,500 86,500 54,000 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs - - - 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 950 100 1,000 3430 Inspections 9,000 - 4,500 3500 Rentals 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves 73,730 86,600 59,500 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 210 Engineering.xls 08/01/2015 1:44 PM Page 1 of 2 304 210 - Engineering 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 315,750 315,750 521,100 5002 Full-Time Overtime 9,000 9,097 11,000 5003 Part-Time Regular 37,060 34,899 37,800 5004 Part-Time Overtime 600 195 400 5085 Telephone Allowance Purchases 5105 Equipment Rental 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 3,000 2,826 3,600 5305 Program Supplies - - - 5310 Equipment Supplies & Repairs 3,500 1,256 3,300 5315 Books & Publications 800 390 1,400 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 5330 Insurance 5331 Insurance Claims 5335 Telephone, Fax & Modem 3,000 2,479 4,400 5400 Miscellaneous Expense 5,000 4,807 8,000 5405 Meeting Expenses 600 166 1,220 5410 Advertising & Promotions - 49 - 5415 Training & Workshops 8,000 7,196 13,100 5420 Special Events 5425 Special Projects 20,000 814 - 5430 Membership Expenses 2,500 1,727 3,800 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5505 Subcontractors Expense 5510 Equipment Maintenance Contracts - - - Contributions to Reserves 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves 408,810 381,652 609,120 335,080 295,052 549,620 335,080 295,052 549,620 Interfunctional Adjustments 5100 Fleet Allocation 12,000 12,000 12,390 5650 Facilities Allocation 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation (167,255) (167,255) (177,180) (155,255) (155,255) (164,790) 179,825 139,797 384,830 Debt Principal and Interest 5900 Debt Interest 5905 Debt Principal 3950 Prior year (surplus) deficit - - - Total Net Levy 179,825 139,797 384,830 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 210 Engineering.xls 08/01/2015 1:44 PM Page 2 of 2 305 5 year Capital Plan Description Expenditures Contribution to Reserves 1 OSIM Bridge Inspections (O.Reg. 104/97)40,000 2 Traffic Count Study 30,000 3 4 5 2015 70,000 - 1 2 3 4 5 2016 - - 1 OSIM Bridge Inspections (O.Reg. 104/97)40,000 2 3 4 5 2017 40,000 - 1 2 3 4 5 2018 - - 1 OSIM Bridge Inspections (O.Reg. 104/97)40,000 2 Traffic Count Study 30,000 3 4 5 2019 70,000 - Town of Tillsonburg 2015 Financial Plan Capital Costs 5 yr Capital Plan Page 1 of 1 08/01/2015306 145 - Enterprise Services 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential - - - 3005 Taxes - Multi-Residential - - - 3010 Taxes - Commercial - - - 3012 Taxes - Commercial Vacant Unit - - - 3014 Taxes - Commercial Vancant Land - - - 3020 Taxes - Shopping Centre - - - 3022 Taxes - Shopping Centre Vacant Unit - - - 3030 Taxes - Industrial - - - 3032 Taxes - Industrial Vacant Unit - - - 3034 Taxes - Industrial Vacant Land - - - 3040 Taxes - Pipelines - - - 3050 Taxes - Farmland - - - 3055 Taxes - Farmland Dev. Phase 1 - - - 3060 Taxes - Large Industrial - - - 3062 Taxes - Large Industrial Vacant Unit - - - 3070 Taxes - Supplementaries - - - 3075 Taxes - Bill 79 Capped Levy - - - 3080 Taxes - Capped Rebates/Claw Backs - - - 3085 Taxes - W/O's - - - 3090 Taxes - PIL's - - - 3095 Local Improvements - Residential - - - 3096 Local Improvements - Commercial - - - 3100 Tax Adjustments - - - 3105 Taxes - Penalty & Interest - - - Government Grants & Subsidies - - - 3200 Grants & Subsidies - Federal - - - 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other - - - User Charges - - - 3300 Miscellaneous Revenue 2,163,078 12,206 2,203,131 3301 Residential Usage - - - 3302 General Usage - - - 3305 Admissions - - - 3310 Fares & Fees - - - 3315 Memberships - - - 3320 Seasonal Revenues - - - 3325 Sports Fields Fees - - - 3330 Youth Program Fees - - - 3335 Adult Program Fees - - - 3340 Summer Programs - - - 3345 Participate Programs - - - Operating Plan - Cost Code Summary Consolidated Total Tillsonburg Hydro Inc. 2015 Financial Plan 2014 3345 Participate Programs - - - 3350 Minor Hockey - - - 3355 Figure Skating - - - 3360 Programs - - - 3365 Landscaping - - - 3400 Permit Fees - - - 3410 Licence Fees - - - 3420 Certificates - - - 3430 Inspections - - - 3500 Rentals 25,900 28,219 28,000 3505 Merchandise - - - 3510 Concession Sales - - - 3515 Vending Machines - - - 3600 Interest 150,000 150,020 150,000 3601 Late Payment Charges - - - 3602 Return on Capital - - - 3700 Special - - - 3701 Capital Surchrge - Residential - - - 3702 Capital Surchrge - General - - - 3705 Donations - - - 3800 Sewer Revenue-Surcharge - - - 3801 Reg 170 Surchrge - Residential - - - 3802 Reg 170 Surchrge - General - - - 3815 Extraordinary Revenue - - - 3999 Revenue Clearing Account - - - Specified Revenues - - - 3805 Development Charges - - - 3810 Sale of Assets - - - 3820 Debenture Proceeds - - - Contribution from Reserves 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves - - - 2,338,978 190,445 2,381,131 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 145 Enterprise Services.xls 08/01/2015 1:46 PM Page 1 of 2 307 145 - Enterprise Services 2015 Budget Projection Budget Operating Plan - Cost Code Summary Consolidated Total Tillsonburg Hydro Inc. 2015 Financial Plan 2014 Expenditures Labour - - - 5001 Full-time Regular 1,116,270 35,675 1,247,815 5002 Full-Time Overtime - 794 - 5003 Part-Time Regular - 172 - 5004 Part-Time Overtime - - - Purchases - - - 5105 Equipment Rental - - - 5110 Fuel & Oil - - - 5115 Discounts Taken - - - 5200 Materials/Inventory 6,000 6,713 6,000 5300 Supplies 700 7,253 8,700 5305 Program Supplies - - - 5310 Equipment Supplies & Repairs - - - 5315 Books & Publications - - - 5320 Building Repairs & Maintenance - - - 5325 Heat, Light & Water 4,000 5,286 4,800 5330 Insurance - - 1,149 5331 Insurance Claims - - - 5335 Telephone, Fax & Modem - - - 5400 Miscellaneous Expense - 1,126 - 5405 Meeting Expenses - - - 5410 Advertising & Promotions - - - 5415 Training & Workshops - - - 5420 Special Events - - - 5425 Special Projects - - - 5430 Membership Expenses - - - 5600 Rent Expense - - - 5605 Interest And Finance Charges - - - 5850 Bad Debt Expense - - - 5800 Tax External Payments - - - Contracted Services - - - 5500 Consultants, Legal & Audit - - - 5505 Subcontractors Expense - 4,148 6,000 5510 Equipment Maintenance Contracts - (140,000) - Contributions to Reserves - - - 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves - - - 1,126,970 (78,835) 1,274,464 (1,212,008) (269,280) (1,106,667) Interfunctional Adjustments - - - 5100 Fleet Allocation 174,782 8,268 183,827 5650 Facilities Allocation - - - 5650 Facilities Allocation - - - 5700 Corp Admin Allocation 624,779 - 643,160 5705 Comm. Services Allocation - - - 5710 Operations Allocation 151,435 - 18,150 950,996 8,268 845,137 (261,012) (261,012) (261,530) Debt Principal and Interest - - - 5900 Debt Interest - - - 5905 Debt Principal - - - 3950 Prior year (surplus) deficit - - - Total Net Levy (261,012) (261,012) (261,530) H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 145 Enterprise Services.xls 08/01/2015 1:46 PM Page 2 of 2 308 STAFF REPORT OPERATIONS SERVICES Report Title: White Paper on the Town’s Asset Management Plan Report No.: OPS 15-01 Author: Kevin De Leebeeck, P.Eng., Director of Operations Meeting Type: BUDGET MEETING Council Date: JANUARY 22, 2015 Attachments: NONE BACKGROUND While asset management is not a new concept to the Town of Tillsonburg, up until 2014 there has not been a documented asset management plan in place. In 2012 through the Municipal Infrastructure Investment Initiative (MIII) program the Province of Ontario tied future infrastructure funding assistance to a requirement that municipalities must demonstrate that a full range of available financing and revenue generation tools have been explored and applied prior to requesting financial support from the Government. In addition, projects selected for Provincial funding must be compared against other competing projects in order to prove their priority based on their condition and the need for investment. By developing and implementing a comprehensive asset management plan the Town will continue to meet this requirement. The plan will not only assist the Town to qualify for future Provincial funding programs, but will also act as a tool to allocate other funding sources to renewal projects in the most efficient and cost effective manner. There are currently three asset networks included in the asset management plan being Roads (including curbs, sidewalks and guiderails), Bridges & Culverts, and the Stormwater network. The scope of the plan will grow in the coming years to include other assets such as recreation and administration facilities, fleet and equipment, traffic and street lighting infrastructure, parks and park amenities, information technology, and so on to develop a comprehensive asset management plan. The asset management plan is a living document that will require regular updates to ensure that condition assessments are up to date and that the inventory of assets is accurate and complete. Asset data is stored in enterprise wide systems such as the Geographical Information System (GIS), the Towns financial system and in the capital planning software of CityWide. The ability for the Town of Tillsonburg to provide services to the community relies on the existence of a network of assets and is restricted by the condition that those assets are in. Choosing a financially sustainable level of service and maintaining, rehabilitating and replacing 309 Page 2 / 2 assets in order to meet that level of service in the most efficient and effective manner is important for the fiscal health of the community. Adherence to the asset management plan will be instrumental in ensuring the Town is able to meet the financial needs associated with keeping assets in the condition they need to be in now and in the future. The Town of Tillsonburg’s average annual investment requirement for Roads, Bridges & Culverts, and Stormwater networks is approximately $3.24 Million as summarized in Table 1. Annual revenue currently allocated to these assets for capital purposes is about $455,000 resulting in an annual deficit of approximately $2.79 Million. In other words these infrastructure categories are currently funded at 14% of their long-term annual requirement. (Source: The Asset Management Plan for the Town of Tillsonburg, 2013) The 2015 draft budget seeks to increase the capital investment for these infrastructure assets to approximately $1.24 Million or about 38% of the annual requirement through the combined use of reserves, taxation and debt. As part of the 2015 Asset Management Plan update, Council will be provided the opportunity to determine the extent and which funding sources to utilize, as well as a phase in strategy to achieve financial sustainability ensuring infrastructure needs are met now and in the future. 310 STAFF REPORT OPERATIONS SERVICES Report Title: White Paper on the Town’s Fleet & Equipment Report No.: OPS 15-02 Author: Kevin De Leebeeck, P.Eng., Director of Operations Meeting Type: BUDGET MEETING Council Date: JANUARY 22, 2015 Attachments: 2015 PROPOSED FLEET & EQUIPMENT REPLACEMENTS STATE OF LOCAL INFRASTRUCTURE Inventory The fleet and equipment that serves the Town of Tillsonburg spans all departments and consists of a range of light, medium and heavy duty trucks, trailers, generators, and various types of off- road and small equipment. These components have been identified within Table 1 below. Table 1: Fleet & Equipment Inventory Asset Type Asset Component Quantity (ea) Fleet & Equipment Light Duty Trucks 19 Medium Duty Trucks 9 Heavy Duty Trucks 14 Off Road Equipment 67 Trailers 9 Generators 12 Small Equipment 55 Total 185 The information used to compile the above inventory was determined by reviewing and extracting asset information from various incomplete databases, query reports from Worktech, and by conducting in-field data collection. This data forms the basis for analysis and the entire Fleet & Equipment Asset Management Plan. Valuation The replacement cost for fleet and equipment was estimated using current standards, historical tender pricing, and current market replacement values. The estimated replacement value of the 311 fleet and equipment assets, based upon current dollar value (2014) following table (Table 2) and associated pie contribution of each of the fleet and equipment assets to the overall system value. Table 2: Fleet & Equipment Replacement Value Asset Type Asset Component Fleet & Equipment Light Duty Trucks Medium Duty Trucks Heavy Duty Trucks Off Road Equipment Trailers Generators Small Equipment As can be seen from the pie chart of make up about 55% of the fleet and equipment assets based on replacement value. If this total asset value is translated to an average value per household assuming 7,200 dwellings, then the average household fleet and equipment assets. Figure 1: Breakdown of Fleet & Equipment Components by Value Condition vs. Performance Figure 2 below demonstrates that about 30% of the fleet and equipment assets are in very good condition, but that nearly 70% are in poor or very poor condition representing approximately $7.1 Million. Medium Duty Trucks 5.7% Heavy Duty Trucks 55.4% Page 2 / 12 fleet and equipment assets, based upon current dollar value (2014) is $10.1 Million associated pie-chart (Figure 1) provides a breakdown of the contribution of each of the fleet and equipment assets to the overall system value. Table 2: Fleet & Equipment Replacement Value sset Component Quantity Replacement Value Light Duty Trucks 19 $ 615,000 Medium Duty Trucks 9 $ 582,000 Heavy Duty Trucks 14 $ 5,604,000 Off Road Equipment 65 $ 2,804,000 9 $ 125,000 Generators 12 $ 313,000 Small Equipment 57 $ 81,000 TOTAL $ 10,124,000 As can be seen from the pie chart of Figure 1, the Town’s heavy duty trucks by themselves % of the fleet and equipment assets based on replacement value. If this total asset value is translated to an average value per household assuming 7,200 dwellings, then the average household would have an investment of approximately $1,400 in Figure 1: Breakdown of Fleet & Equipment Components by Value below demonstrates that about 30% of the fleet and equipment assets are in very good condition, but that nearly 70% are in poor or very poor condition representing Light Duty Trucks 6.1% Medium Duty Trucks 5.7% Small Equipment 0.8% $10.1 Million. The ) provides a breakdown of the contribution of each of the fleet and equipment assets to the overall system value. Replacement Value $ 615,000 $ 582,000 $ 5,604,000 $ 2,804,000 $ 125,000 $ 313,000 $ 81,000 $ 10,124,000 , the Town’s heavy duty trucks by themselves % of the fleet and equipment assets based on replacement value. If this total asset value is translated to an average value per household assuming 7,200 would have an investment of approximately $1,400 in Figure 1: Breakdown of Fleet & Equipment Components by Value below demonstrates that about 30% of the fleet and equipment assets are in fair to very good condition, but that nearly 70% are in poor or very poor condition representing Off Road Equipment 27.7% Trailers 1.2% Generators 3.1% Equipment 312 The overall Condition & Performance rating of fleet and equipment assets is Very Poor (7%), meaning that on average, the fleet and estimated service life of 13 years, and have 7% of their service life remaining (i.e. the weighted average estimated age of the fleet and equipment assets is 12 years old). Figure 2: Fleet & Equipme The Fire and Hydro Departments consists of four (4) heavy duty trucks while the Roads Department consists of six (6) heavy duty trucks. $3.8 Million in Very Poor heavy duty trucks and indicates that about 75% of the Fire Departments and about 50% of the Hydro Departments heavy duty trucks are in very poor condition while approximately 85% of the Roads Dep condition, all based on replacement value. Figure 3: Very Poor Heavy Duty Trucks by Replacement Value $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Very Good Light Duty Trucks Trailers $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Page 3 / 12 The overall Condition & Performance rating of fleet and equipment assets is Very Poor (7%), meaning that on average, the fleet and equipment assets are 93% into their weighted average estimated service life of 13 years, and have 7% of their service life remaining (i.e. the weighted average estimated age of the fleet and equipment assets is 12 years old). Figure 2: Fleet & Equipment Condition by Replacement Value The Fire and Hydro Departments consists of four (4) heavy duty trucks while the Roads Department consists of six (6) heavy duty trucks. Figure 3 below provides a breakdown of the $3.8 Million in Very Poor heavy duty trucks and indicates that about 75% of the Fire Departments and about 50% of the Hydro Departments heavy duty trucks are in very poor condition while approximately 85% of the Roads Department heavy duty trucks are in very poor all based on replacement value. Figure 3: Very Poor Heavy Duty Trucks by Replacement Value Very Good Good Fair Poor Medium Duty Trucks Heavy Duty Trucks Off Road Equipment Generators Small Equipment Fire Hydro Roads 5 units 2 units 3 units The overall Condition & Performance rating of fleet and equipment assets is Very Poor (7%), equipment assets are 93% into their weighted average estimated service life of 13 years, and have 7% of their service life remaining (i.e. the weighted nt Condition by Replacement Value The Fire and Hydro Departments consists of four (4) heavy duty trucks while the Roads below provides a breakdown of the $3.8 Million in Very Poor heavy duty trucks and indicates that about 75% of the Fire Departments and about 50% of the Hydro Departments heavy duty trucks are in very poor artment heavy duty trucks are in very poor Figure 3: Very Poor Heavy Duty Trucks by Replacement Value Very Poor Off Road Equipment 313 Page 4 / 12 DESIRED LEVELS OF SERVICE Service Level Indicators and Benchmarks The goal of asset management is to move away from reactive and “worst first” planning to maintenance of assets in a “state of good repair”. This is the most economical way to manage assets and to provide higher levels of service. The path to get there requires a long-term strategy and customer buy-in to assure change. To aid in the evaluation of this change three types of indicators and associated performance measures have been developed. Strategic Level Strategic indicators are the highest and most abstract type of indicators. They are set and reviewed by the highest level of municipal decision makers. Examples would include the percentage of reinvestment compared to the value of the system, or assessing deficit needs versus budget. Tactical Level Tactical indicators result from analyzing different but related operational indicators to obtain an overview of an asset’s condition. A tactical indicator provides managerial-level municipal decision makers with an overview of an asset’s condition, state, or value. Tactical indicators would include the percentage amount for operations and maintenance compared to the value of the system or the overall asset condition. Operational Level An operational indicator is generally raw data collected about an asset by work crews while performing their duties or as part of an asset inventory process. Operational indicators can be expressed as a dollar value per repair or simply by the number of repair requests per year. Fleet & Equipment Goal To maintain, repair, and renew the Town’s fleet and equipment assets with the goal of providing the necessary vehicles and equipment to enable the safe, reliable, and efficient operations of the various Town departments that deliver essential services to the public and residents of the Municipality. Objective • Maintenance, repair, disposal, and acquisition of fleet vehicles and equipment • Comply with Provincial standards and regulations for the Fire Department • Maintain the Town’s Commercial Vehicle Operators Registration (CVOR) certificate and Carrier Safety Rating (CSR) as per the Highway Traffic Act and associated regulations. 314 Page 5 / 12 Performance Indicators Decision Level Performance Indicator Measure Current (2014) Desired (2024)* Strategic Level Cost per 7,200 households per day $0.41 /hh $0.58 /hh Percentage of capital reinvestment compared to total fleet & equipment replacement value 4.53% 9.21% Backlog value of fleet & equipment shortfall (accumulated asset network deficit) $6,217,000 $2,000,000 Tactical Level Overall Condition vs. Performance Rating 7% 60% Total Inventory of fleet vehicles and equipment 185 187 Percentage of fleet & equipment replacement value spent on operations and maintenance 6.10% 5.89% Operatio nal Level Number of repair requests received annually 300 250 Percentage of repair requests serviced in 48 hours 67% 80% Average cost per repair serviced in 48 hours $3,084 /ea $2,981 /ea * Does not account for inflation, expressed in 2014 dollars. ASSET MANAGEMENT STRATEGY Objective An asset management strategy is a set of planned actions that will enable the asset to provide the desired levels of service in a sustainable way, while managing risk, at the lowest lifecycle cost. Lifecycle activities of an asset can be viewed in the context of four phases; minor maintenance, major maintenance, rehabilitation, and replacement as detailed in Table 3 below. Table 3: Lifecycle Activities vs. Asset Age Activity Definition Asset Age Minor Maintenance Planned activities such as visual inspections, monitoring, cleaning, testing, etc. 0 - 25% of assets life Major Maintenance Maintenance and repair activities, generally unplanned, however they can be anticipated and would generally be accounted for with the Towns annual operating budget. 25 - 50% of assets life 315 Page 6 / 12 Rehabilitation Are generally one-time events that rebuild or replace components of an asset to restore the asset to a required functional condition and extend the assets useful life. Typically involves repairing the asset to deliver its original level of service without resorting to significant upgrading or renewal, using available techniques and standards. 50 - 75% of assets life Replacement Assets will reach the end of their useful life and require replacement. The expected life of an asset is impacted by the natural properties of its materials and can vary greatly depending on a number of environmental factors that impact the degree of deterioration and performance. 75 - 100% of assets life The fleet and equipment asset management strategy will develop a process that can be applied to the lifecycle of an asset that will assist in the development of a 25-year plan to ensure the best overall health and performance of the Towns fleet and equipment. Fleet & Equipment Useful Life The range of values used for typical expected useful life for the fleet and equipment assets are summarized in Table 4 below. It should be recognized that the actual asset life is influenced by many variables such as the extent and type of usage, operation by the operator, manufacturing quality, exposure to local weather conditions, etc, and may be greater than the expected useful life in favourable conditions. Town staff will continue to refine the asset’s expected useful life as more specific data becomes available. Table 4: Fleet & Equipment Useful Life Asset Component Expected Useful Life (years) Light Duty 6 - 8 Medium Duty 8 - 10 Heavy Duty 8 - 15 Off Road Equip. 10 - 15 Trailers 20 - 25 Generators 20 - 25 Small Equip. 3 - 5 316 Page 7 / 12 Lifecycle Activities During a vehicle or equipments lifecycle there are various windows available for work activity that will maintain or extend the life of the asset. These windows of work activity generally coincide with the assets condition. A summary of available lifecycle work activities for the fleet and equipment assets are provided in Table 5 below. Table 5: Fleet & Equipment Lifecycle Activities Minor Maintenance Activity Options • Preventative maintenance service work and inspections • Annual motor vehicle inspections • Annual Commercial Vehicle Inspections (CVIS) and service work to meet legislative requirements Major Maintenance Activity Options • In-house repairs of breakdowns and service requests • Outsource major unplanned repair work Rehabilitation Activity Options • Sandblast and repaint vehicles and equipment • Recap heavy duty truck tires • Upgrade and/or refurbish critical asset components/parts Replacement Activity Options • Relocation to another department, if feasible • Disposal of decommissioned asset through public auction • Replace following procurement methods of Purchasing Policy Asset Hierarchy An asset hierarchy will provide a base for planning maintenance, rehabilitation, and renewal. This structure will allow the Town to focus its resources on assets that have been identified as critical where these assets have a high consequence of failure but not necessarily a high risk of failure. Since not all assets can be maintained at the desired level of service, prioritizing critical assets over lower risk assets ensures that the system is protected against the most severe risks. Figure 6 below identifies the critical fleet and equipment assets. 317 Page 8 / 12 Figure 6: Fleet & Equipment Asset Hierarchy Ranking Service Hierarchy Service Level Objective Critical Risk 1 Emergency Fleet & Equipment Provide safe, reliable, and efficient fire fighting vehicles and equipment • Unable to effectively fight fires and perform rescues • Injury or loss of life • Breakdowns • Incorrect use • Damage to other assets as a result of malfunctioning equipment • Loss of equipment 2 Hydro and Road Maintenance Fleet & Equipment Provide safe, dependable, and efficient vehicles and equipment for hydro operations and road maintenance / snow removal • Unable to effectively restore power to residents • Unable to effectively provide winter maintenance of roadways • Injury or loss of life • Breakdowns • Incorrect use • Damage to others as a result of malfunctioning equipment • Loss of equipment 3 Remaining Fleet and Equipment Provide safe, efficient and reliable vehicles and equipment for the overall operation of the Town • Injury or loss of life • Breakdowns • Incorrect use • Damage to other assets as a result of malfunctioning equipment • Loss of equipment FINANCING STRATEGY Replacement Profile The projected capital investment for fleet and equipment is summarized in Figure 4 below. The analysis was run over a 25-year period to ensure that all assets went through at least one cycle of replacement in order to provide a sustainable projection. The capital investment required in any given year ranges from $500,000 to $1.25 Million over the 25-year planning horizon. Based on 2014 replacement values, the average annual capital investment required is $930,000 compared to the historical 5-year average annual capital investment of $345,000 resulting in a funding gap of approximately $585,000. 318 Page 9 / 12 Figure 4: Fleet & Equipment 25-Year Replacement Profile Investment Profile The historical operations and maintenance expenditures have increased by approximately 8% over the past 5 years as illustrated in Figure 5 below. However in recent years this relatively linear upwards trend has begun to accelerate due to a significant increase in the number of breakdown repairs, overtime, and the cost of obsolete replacement parts. Figure 5: Fleet & Equipment Operations and Maintenance Expenditures $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Annual Requirement Current Funding Level $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2009 2010 2011 2012 2013 2014 2015 2016 Year 319 Page 10 / 12 The investment profile considers lifecycle costs comprised of the required capital investments for replacement of the Town’s existing fleet and equipment and the operations and maintenance estimates included in annual operating budgets. It should be noted that the straight-line deprecation of the historical acquisition cost of fleet and equipment is approximately $620,000 per year. This does not account for the increase in capital investment required for future replacement. Table 7: Fleet & Equipment Investment Profile Investment Measure Description Investment per year % of Current Replacement Value Capital Investment Requirement Average annual capital replacement over 25 years $930,000 9.21% Current Average Annual Investment Level Historical total fleet and equipment capital investment over past 5 years $345,000 3.41% Current Average Annual Operating Budget Historical total operations and maintenance cost over past 5 years $620,000 6.10% Average Annual Lifecycle Investment Requirements Average annual capital and operating costs $1,550,000 15.31% Funding Sustainability The timely and continued replacement of vehicles and equipment strikes an optimum balance when the rising maintenance costs/decreased reliability begins to exceed the depreciating asset value/re-sale value. In order to operate within this optimum balance adequate dedicated funding must be available and sustainable. One strategy of achieving sustainability is to dedicate the annual capital investment requirement from taxation on a year to year basis to fleet and equipment replacement. However, historically this strategy has often gone unfulfilled resulting in the current situation of a very poor aging fleet. Another strategy is to establish a dedicated equipment replacement reserve account, which the Town currently does not have, to ensure that adequate funds are available to facilitate the optimum future replacement of vehicles and equipment and to eliminate the large year to year capital requirement fluctuations from taxation. Typical equipment replacement reserve account balances range between 10% - 20% of the total overall replacement value depending on the average age and condition of the existing fleet. Establishing a Fleet & Equipment Reserve account equal to $1.55M (approximately 15% of the overall Fleet & Equipment replacement value) for the Town of Tillsonburg can be accomplished in a variety of manners such as: 320 Page 11 / 12 1) A one-time dedication of $1.55M 2) Annual dedications of $310,000 for the next five years in addition to the yearly capital investment requirements. 3) Contributing any surplus from Fleet Services operating budget, while also funding the yearly capital investment requirements, until the $1.55M target is achieved. Once the Fleet & Equipment Reserve has been fully establish it will be important to adjust the inter-department fleet and equipment charges to ensure the appropriate cost recovery of all expenses, including sufficient contribution to replenish the reserve account, for sustainable continued future replacements. This will likely be in the form of daily or hourly rental rates for each vehicle and piece of equipment and will include all overhead, fixed and running costs with the exception of fuel. These rental rates can then be used to charge a job code for the time that a vehicle or piece of equipment was utilized in performing a task. 321 AT T A C H M E N T 1 20 1 5 P R O P O S E D F L E E T & E Q U I P M E N T R E P L A C E M E N T S Ve h i c l e Nu m b e r Ma k e Ve h i c l e T y p e De s c r i p t i o n De p a r t m e n t Ac q u i s i t i o n Ye a r Km ' s t o en d o f 20 1 4 Hr s t o en d o f 20 1 4 Rating Category Net Rep. Cost Est. 22 Fo r d L i g h t D u t y F 1 5 0 P i c k u p T r u c k W a t e r 2 0 0 1 1 3 0 , 0 5 2 8 , 0 7 3 V e r y P o o r $ 3 5 , 0 0 0 23 Fo r d L i g h t D u t y F 1 5 0 P i c k u p T r u c k R o a d s 2 0 0 3 1 1 4 , 8 7 0 7 , 7 0 6 V e r y P o o r $ 3 5 , 0 0 0 31 Fo r d L i g h t D u t y F 1 5 0 P i c k u p T r u c k E n g i n e e r i n g 20 0 1 9 8 , 3 9 8 5 , 0 5 3 V e r y P o o r $ 3 5 , 0 0 0 32 Po n t i a c L i g h t D u t y M o n t a n a V a n P o o l 2 0 0 2 1 3 0 , 4 0 6 0 Very Poor $35,000 36 Ch e v y L i g h t D u t y C a v a l i e r C a r B y - l a w 2 0 0 4 4 5 , 8 2 2 0 Very Poor $25,000 33 GM C M e d i u m D u t y 2 5 0 0 D u m p P i c k u p T r u c k C e m e t e r y 1 9 9 7 6 6 , 7 4 5 5 , 8 8 5 V e r y P o o r $ 5 5 , 0 0 0 37 Fo r d M e d i u m D u t y F 2 5 0 P i c k u p T r u c k F i r e 2 0 0 7 5 0 , 6 2 2 1 , 3 7 2 V e r y P o o r $ 5 5 , 0 0 0 40 Fo r d M e d i u m D u t y F 3 5 0 P i c k u p T r u c k R o a d s 2 0 0 3 1 0 8 , 1 40 7 , 7 6 4 V e r y P o o r $ 6 0 , 0 0 0 42 Ch e v y M e d i u m D u t y 3 5 0 0 P i c k u p T r u c k F l e e t 1 9 9 0 1 4 7 , 98 2 2 , 0 6 8 V e r y P o o r $ 6 0 , 0 0 0 43 Fo r d M e d i u m D u t y F 2 5 0 P i c k u p T r u c k P a r k s 2 0 0 1 1 0 2 , 2 32 6 , 7 8 1 V e r y P o o r $ 5 0 , 0 0 0 46 Do d g e M e d i u m D u t y D 3 5 0 0 P i c k u p T r u c k P a r k s 2 0 0 2 1 2 4 ,3 6 9 0 V e r y P o o r $ 6 0 , 0 0 0 62 Pe t e r b u i l t H e a v y D u t y 3 3 0 U n d e r s l u n g P l o w T r u c k R o a ds 2 0 0 4 1 4 6 , 8 9 2 6 , 2 9 0 V e r y P o o r $ 2 3 5 , 0 0 0 72 Fr e i g h t l i n e r H e a v y D u t y F L 7 0 T r u c k F i r e 1 9 9 5 1 4 , 9 9 8 1 , 7 5 1 V e r y P o o r $ 3 0 0 , 0 0 0 10 0 Tr a c k l e s s O f f R o a d E q u i p m e n t Le a f L o a d e r R o a d s 2 0 0 2 0 0 V e r y P o o r $ 4 5 , 0 0 0 12 5 Fr i n k O f f R o a d E q u i p m e n t Un d e r s l u n g R o a d s 2 0 0 0 0 0 V e r y P o o r $ 1 5 , 0 0 0 14 0 Hi w a y O f f R o a d E q u i p m e n t Sl i d e - i n S a n d e r P a r k s 2 0 0 6 0 0 V e r y P o o r $ 1 2 , 0 0 0 14 3 To y o t a O f f R o a d E q u i p m e n t Fo r k l i f t H y d r o 1 9 7 8 0 4 , 6 8 4 V e r y P o o r $ 5 5 , 0 0 0 15 5 CE T O f f R o a d E q u i p m e n t Po r t a b l e P u m p R o a d s 2 0 0 8 0 0 V e r y P o o r $ 7 , 0 0 0 20 4 Gr a v e l y O f f R o a d E q u i p m e n t Y3 2 0 M o w e r R o a d s 2 0 0 6 0 1 , 8 0 1 V e r y P o o r $ 1 5 , 0 0 0 Ra t i n g C a t e g o r i e s b a s e d o n S e r v i c e L i f e a n d C o n d i t i on Ra t i n g Ca t e g o r y % o f Re m a i n i n g Se r v i c e L i f e (R S L ) De f i n i t i o n Ve r y G o o d 81 % - 1 0 0 % Fi t f o r t h e F u t u r e - T h e i n f r a s t r u c t u r e i n t h e s y s t e m o r n e t w o r k i s g en e r a l l y i n ve r y g o o d c o n d i t i o n , t y p i c a l l y n e w o r r e c e n t l y r e h a bi l i t a t e d . A f e w e l e m e n t s sh o w g e n e r a l s i g n s o f d e t e r i o r a t i o n t h a t r e q u i r e a t te n t i o n . Go o d 6 1 % - 8 0 % Ad e q u a t e f o r N o w - S o m e i n f r a s t r u c t u r e e l e m e n t s s h o w g e n e r a l s i g n s o f de t e r i o r a t i o n t h a t r e q u i r e a t t e n t i o n . A f e w e l e m e nt s e x h i b i t s i g n i f i c a n t de f i c i e n c i e s . Fa i r 4 1 % - 6 0 % Re q u i r e s A t t e n t i o n - T h e i n f r a s t r u c t u r e i n t h e s y s t e m o r n e t w o r k s h o w s ge n e r a l s i g n s o f d e t e r i o r a t i o n a n d r e q u i r e s a t t e n t i on w i t h s o m e e l e m e n t s ex h i b i t i n g s i g n i f i c a n t d e f i c i e n c i e s . Po o r 2 1 % - 4 0 % At R i s k - T h e i n f r a s t r u c t u r e i n t h e s y s t e m o r n e t w o r k i s i n p o o r c o n d i t i o n a n d mo s t l y b e l o w s t a n d a r d , w i t h m a n y e l e m e n t s a p p r o a c h i ng t h e e n d o f t h e i r se r v i c e l i f e . A l a r g e p o r t i o n o f t h e s y s t e m e x h i b i ts s i g n i f i c a n t d e t e r i o r a t i o n . Ve r y P o o r < 2 0 % Un f i t f o r S u s t a i n e d S e r v i c e - T h e i n f r a s t r u c t u r e i n t h e s y s t e m o r n e t w o r k i s i n un a c c e p t a b l e c o n d i t i o n w i t h w i d e s p r e a d s i g n s o f a d v an c e d d e t e r i o r a t i o n . Ma n y c o m p o n e n t s i n t h e s y s t e m e x h i b i t s i g n s o f i m m i ne n t f a i l u r e , w h i c h i s af f e c t i n g s e r v i c e o r h a s e f f e c t i v e l y e x c e e d e d i t s t he o r e t i c a l s e r v i c e l i f e . 32 2 TOWN OF TILLSONBURG 2015 BUSINESS PLAN TILLSONBURG FIRE AND RESCUE SERVICES AND THE COMMUNITY EMERGENCY MANAGEMENT PROGRAM 323 2015 Business Objectives Item Dept Owner Budget Value Target Date Auto Extrication Rescue Equipment Fire Department Fire Chief $54,500 Q3 Traffic Signal Priority Control System Fire Department with support from Operations Fire Chief $17,500 Q3Traffic Signal Priority Control System from Operations (Roads & Engineering) Fire Chief (DC)Q3 Water Rescue Equipment (Phase 2 of 2)Fire Department Deputy Chief $10,000 Q2 Fire Ground Power Equipment & Tools Fire Department Fire Chief $12,200 Q1 324 2015 Business Objectives Item Dept Owner Budget Value Target Date MSA SCBA Lease (year 10 of 10)Fire Department Fire Chief $22,000 Q2 Recruit and Hire Fire Prevention Officer Fire Department Fire Chief $78,624 Q1Recruit and Hire Fire Prevention Officer Fire Department Fire Chief $78,624 Q1 Strategic Planning Process – Long Term Fire Department Fire Chief $0 Ongoing Succession Management Plan, including Officer Development Training Fire Department Fire Chief $0 Ongoing 325 Risks 1. Lack of a Strategic Plan based upon sound planning principles to help prioritize goals and objectives. 2. Pre-plans of buildings in Tillsonburg have not been developed which places Firefighters & property at risk. 3.Increased Legislated responsibilities to inspect and monitor 3.Increased Legislated responsibilities to inspect and monitor occupancies with vulnerable occupants. 4. Officers & Firefighters need to continue to be developed to meet provincial standards, including education such as Building Construction and Fireground Safety Officer. 326 Risks 5. The 1990 Pumper is no longer recognized as a emergency vehicle by the Fire Underwriters Survey. Due to age, at increased risk of mechanical failure at emergency scenes. 6. Current hydraulic extrication equipment increasingly unable to perform as required on newer automobile technology and materials. Lifting air as required on newer automobile technology and materials. Lifting air bags removed from service due to safety concerns. 7. The 36-year old fire station does not meet current building code, health and safety standards, accessibility standards and the ergonomic needs of the employees who work in it. 8. Changing building construction techniques and materials resulting in evolving equipment needs for safely mitigating building fires. Thermal imaging cameras approaching end of useful life. 327 Opportunities 1. The Ontario Fire Marshal no longer supports the Shaping Fire Safe Communities initiative and the Master Fire Planning process. As such, the opportunity exists to conduct a Strategic Planning process designed to produce future excellence. 2. Succession Management plan for firefighters was developed in 2013. Continue staff development through Professional 2013. Continue staff development through Professional Development training. 3. Continue evolving Emergency Operations Centre operations to an Incident Management System based Emergency Response Plan. 328 Opportunities 4. Continue to promote a Culture of Safety in fire department through a high commitment to the Occupational Health & Safety Act. Develop pre-fire plans, create new and revise existing SOGs. Opportunity to develop and implement Fire Service specific near-miss program. 5. Conduct proactive Fire & Life Safety inspections in addition to inspections upon complaint and request. 6. Market Fire Communications to develop into a more viable Division. Develop partnership prospects and non-core business opportunities. 329 Future Departmental Directions: 3 year outlook 2016 1. Continue Strategic fire planning process. 2. In collaboration with the Manager of Fleet Services, issue a request for proposal for new fire pumper apparatus. 3.Convert the analogue radio system to digital narrowband to 3.Convert the analogue radio system to digital narrowband to meet the Industry Canada standard (2002). 4. Fire Station building condition engineering report. 5. Acquire propane fueled live fire training equipment. 6. Begin contribution to reserves for SCBA equipment replacement in 2018. 7. Thermal Imaging Camera replacement. 330 Future Departmental Directions: 3 year outlook 2017 1. Implementation of Strategic Planning initiatives. 2. Emergency Operations Center enhancements, including telecommunications and interoperability equipment. 3. Initiate selection process to replace SCBA packs and Rapid Intervention Kits (2018). Continue reserve contribution. 4. Replacement of the Zetron dispatch console with Event Management Dispatch system, and ergonomic replacement of CAD workstations in Fire Communications. 331 Future Departmental Directions: 3 year outlook 2018 1. Replacement of Self-Contained Breathing Apparatus (minimum 26) and Rapid Intervention Kits (minimum 3). 2. Continued implementation of Strategic Planning initiatives. 3.Conduct needs analysis for aerial device and reserve 3.Conduct needs analysis for aerial device and reserve contribution for replacement of Ladder 4 (2019). 332 Human Resources Allocation/Deployment Plan 2014 2015 2016 Total FTE Requirements 18.25 19 19.25 Change from previous year (.25).75 .25 2014 2015 2016 Total FTE Requirements-Full time 7 7.75 8 Total FTE Requirements-Part time 3.00 3.00 3.00 Change from previous year (.25).75 .25 Contract Staff 0 0 0 Change from previous year 0 0.75 0.25 333 150 - Fire 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vancant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal - - - 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other - - - User Charges 3300 Miscellaneous Revenue 25,900 34,353 23,800 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 214,200 218,537 218,607 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 1,200 850 1,200 3500 Rentals - - - 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations - - - 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges - 18,500 - 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves 241,300 272,240 243,607 Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 150 Fire.xls 08/01/2015 1:27 PM Page 1 of 2 334 150 - Fire 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 483,100 491,185 552,475 5002 Full-Time Overtime - - - 5003 Part-Time Regular 378,926 379,936 401,920 5004 Part-Time Overtime 4,000 131 - Purchases 5105 Equipment Rental 440 905 800 5110 Fuel & Oil 400 561 600 5115 Discounts Taken 5200 Materials/Inventory - - - 5300 Supplies 23,350 7,783 16,150 5305 Program Supplies 1,800 738 2,100 5310 Equipment Supplies & Repairs 12,940 26,124 26,530 5315 Books & Publications 1,200 2,371 2,250 5320 Building Repairs & Maintenance 10,000 4,700 10,000 5325 Heat, Light & Water 18,000 19,357 20,000 5330 Insurance 12,476 16,941 15,625 5331 Insurance Claims - - - 5335 Telephone, Fax & Modem 19,000 22,610 22,750 5400 Miscellaneous Expense 1,750 5,750 7,000 5405 Meeting Expenses 1,650 468 1,550 5410 Advertising & Promotions 2,100 899 - 5415 Training & Workshops 16,250 22,319 32,475 5420 Special Events 8,484 9,462 23,484 5425 Special Projects 4,250 3,523 39,000 5430 Membership Expenses 1,800 1,054 1,800 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 750 - - 5505 Subcontractors Expense 7,000 19,129 20,000 5510 Equipment Maintenance Contracts 42,000 34,106 40,000 Contributions to Reserves 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves - 18,500 - 1,051,664 1,088,553 1,236,509 810,364 816,313 992,902 Interfunctional Adjustments 5100 Fleet Allocation 208,697 206,993 215,480 5650 Facilities Allocation 5700 Corp Admin Allocation (78,816) (78,816) (81,617) 5705 Comm. Services Allocation 5710 Operations Allocation 129,881 128,177 133,863 940,245 944,490 1,126,764 Debt Principal and Interest 5900 Debt Interest - - - 5905 Debt Principal - - - 3950 Prior year (surplus) deficit - - Total Net Levy 940,245 944,490 1,126,764 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 150 Fire.xls 08/01/2015 1:27 PM Page 2 of 2 335 5 year Capital Plan Description Expenditures Contribution to Reserves 1 Auto Extrication Rescue Equipment 54,500 Town of Tillsonburg 2015 Financial Plan Capital Costs 1 Auto Extrication Rescue Equipment 54,500 2 144 Traffic Signal Priority Control system expansion (Phase 1&2 of 4)17,000 3 Fleet - Pump 1 replacement - 4 Annual replacement of firefighter Personal Protective Equipment (PPE)- 5 Water Rescue Equipment (Phase 2 of 2)10,000 6 Hose, nozzles and appliances - 7 Fireground euipment 12,200 8 MSA SCBA lease agreement 10th yr of 10 22,000 8 MSA SCBA lease agreement 10th yr of 10 22,000 9 Portable radio replacement - 2015 115,700 - 2 Annual replacement of firefighter Personal Protective Equipment (PPE)- 2 Annual replacement of firefighter Personal Protective Equipment (PPE)- 3 SCBA Replacement reserve contribution 25,000 4 Hoses, nozzles and appliances - 5 Traffic Signal Priority Control system expansion (Phase 3 of 4)17,000 6 Fire Comm hardware replacement and upgrades 45,000 7 Fleet - Purchase rescue apparatus to replace R3 200,000 8 Bunker gear extractor and dryer 12,000 9 Engineering for Fire Station Renovation 16,000 9 Engineering for Fire Station Renovation 16,000 10 Live fire training simulators (propane fueled)46,000 2016 336,000 25,000 5 yr Capital Plan Page 1 of 2 08/01/2015336 5 year Capital Plan Description Expenditures Contribution to Reserves Town of Tillsonburg 2015 Financial Plan Capital Costs 1 Event Management Dispatch and Hardware 49,000 1 Event Management Dispatch and Hardware 49,000 2 Fleet - Technical Rescue & Support Squad (2018)110,000 3 Annual replacement of firefighter Personal Protective Equipment (PPE)- 4 EM Mobile system for in apparatus access to critical information 19,000 5 Hoses, nozzles and appliances - 6 Traffic Signal Priority Control system expansion (Phase 4 of 4)34,500 7 SCBA Replacement reserve contribution 30,000 8 Fire Station Renovation / Replacement reserve contribution 200,000 8 Fire Station Renovation / Replacement reserve contribution 200,000 9 Emergency Operations Centre enhancements 18,000 2017 120,500 340,000 1 Fire Station Renovation / Replacement reserve contribution 200,000 2 Annual replacement of firefighter Personal Protective Equipment (PPE)- 2 Annual replacement of firefighter Personal Protective Equipment (PPE)- 3 Hoses, nozzles and appliances - 4 26 Self Contained Breathing Apparatus & personal face masks 247,500 5 Traffic Signal Priority Control system expansion (Phase 4 of 4)17,000 6 Fleet - Ladder 4 Replacement reserve contribution 600,000 2018 264,500 800,000 1 Annual replacement of firefighter Personal Protective Equipment (PPE)- 2 Hoses, nozzles and appliances - 3 FLEET - Ladder 4 replacment 1,200,000 4 Training facility multi-media upgrades 7,500 5 Fire Station Renovation / Replacement reserve contribution (2020)200,000 2019 1,207,500 200,000 5 yr Capital Plan Page 2 of 2 08/01/2015337 Business Case: Fire Prevention Officer Prepared for 2015 Budgetary Considerations Page | 1 338 Fire Prevention Officer Business Plan Tillsonburg Fire & Rescue Services Executive Summary The business plan herein was developed to demonstrate the need for a proposed full time Fire Prevention Officer. While the major focus of this new position will be, if approved, fire code inspection and enforcement, there will also be responsible for delivering and/or coordinating other fire prevention activities (plans examinations, licensing requests, etc.), public education (both fire safety and emergency preparedness), and in the absence of the Fire Chief or Deputy Chief, fire investigation. Additionally, the position will have responsibilities for conducting pre-incident response plans for building in the Town, preparing training plans and lessons. The need for a Fire Prevention Officer is based on several needs, including an existing shortfall of available inspection hours to meet an identified inspection demand and to meet an anticipated demand on inspection hours based on amendments to the Ontario Fire Code, including legislated annual inspections of certain vulnerable occupancies, additional regulations regarding smoke alarms and recently introduced carbon monoxide alarm legislation. The intent of this position is to lower the likelihood of fire and/or limit fire spread by increasing our Ontario Fire Code compliance profile in the Town through increased inspections of higher risk occupancies. Background The Fire Protection and Prevention Act (FPPA) prescribes that: 2.(1) Every municipality shall, (a) establish a program in the municipality which must include public education with respect to fire safety and certain components of fire prevention, and (b) provide such other fire protection as it deems necessary in accordance with its needs and circumstances Further, the methods for providing services under the FPPA are prescribed under Subsection 2. (1) as follows: In discharging its responsibilities under subsection 2. (1), a municipality shall establish a fire department, or appoint a community safety officer or a community fire safety team. The Fire Protection and Prevention Act describes in legislation what the Office of the Fire Marshal (OFM) is responsible for: Page | 2 339 (a) To investigate the cause, origin and circumstances of any fire or of any explosion or condition that in the opinion of the Fire Marshal might have caused a fire, explosion, loss of life or damage to property; (b) To advise municipalities in the interpretation and enforcement of this Act and the regulations; (c) To provide information and advice on fire safety matter and fire protection matters by means of public meetings, newspaper articles, publications, electronic media and exhibitions and otherwise as the Fire Marshal considers advisable; (d) To develop training programs and evaluation systems for persons involved in the provision of fire protection services and to provide programs to improve practices relating to fire protection services; (e) To maintain and operate a central fire college; (f) To keep a record of every fire reported to the Fire Marshal with the facts, statistics and circumstances that are required under this Act; (g) To develop and maintain statistical records and conduct studies in respect of fire protection services; and (h) To perform such other duties as may be assigned to the Fire Marshal under this Act. 1997, c.4, s9(2). The Office of the Fire Marshal provides municipalities with direction as to what should be included as a minimum in a municipality’s fire safety and prevention program. Currently, the minimum fire safety program should include: • Simplified Risk Assessment • Smoke Alarm Program with home escape planning • Distribution of fire safety education materials and delivery of public education programs, and • Participating in inspection upon complaint or request to assist with Fire Code compliance. More recent, two Regulations made under the Fire Protection and Prevention Act, 1997, have and will place significant demands on the fire department for fire prevention and code enforcement. Ontario Regulation 364/13 establishes the mandatory requirement for fire services to inspect and observation of fire drills in care occupancies, care and treatment occupancies and retirement homes. Compliance with Ontario Regulation 364/13 requires the fire service to work closely with facilities housing vulnerable occupants to: • Appropriately assess and classify the occupancy • Conduct annual (minimum) inspections for Fire Code compliance and timely follow-up inspections and enforcement to address contraventions • Assist with the development, implementation and approval of a Fire Safety Plan • Ensure all Supervisory staff understand and are trained in the roles and responsibilities outlined in the Fire Safety Plan Page | 3 340 • Ensure that required fire drills are conducted as required and involve Supervisory staff • Observe and monitor the annual fire drill to ensure compliance with established evacuation times with minimal facility staffing • Review and comment on minimum staffing of facility • Ensure property owners and managers keep appropriate records of tests, inspections, fire drills, etc. as required The Ontario Fire Marshal’s Directive 2014-003 Inspections of All Buildings, issued under the provisions of the Fire Protection and Prevention Act, 1997, S.O. 1997, in part states that: “Ontario Regulation 365/13 (O.Reg.365/13) requires that fire safety assessments and inspections if necessary, be undertaken as directed by the Fire Marshal for: (1) Every building for which a fire safety complaint is received; and (2) Every building for which a request for assistance to comply with the Fire Code is received and the involvement of the Chief Fire Official is required.” Three Lines of Defence The Office of the Fire Marshal, through the Fire Protection and Prevention Act, 1997, S.O. 1997 (FPPA) recognizes the importance of implementing three lines of defence to achieve an acceptable level of fire safety within communities. In order, the three lines of defence are: 1. Public Education 2. Fire Safety Standards & Code Enforcement 3. Emergency Response Public Education activities such as the distribution of fire safety education materials, advertisements, etc. as well as Fire Safety Standards & Code Enforcement (inspections, plans review, etc.) are considered to be proactive approaches to protecting lives and property from fire. Emergency Response (fire suppression) occurs after lives have been endangered or property damaged from fire and is a highly time sensitive, reactionary effect. The Fire Prevention Officer position would strengthen the Tillsonburg Fire & Rescue Service’s ability to deliver proactive inspections and public education programs. Fire Safety Inspections and Enforcement The Fire Protection and Prevention Act, 1997, S.O. 1997 (FPPA) prescribes requirements for the inspection and enforcement of the provisions of the Ontario Fire Code as it relates to fire and life safety. In relation to Part VI Inspections of the Act, fire safety includes “safety from the risk that a fire, if started, would seriously endanger the health and safety of any person or the quality of the natural environment for any use that can be made of it. 1997, c. 4, s. 18”. Firefighters responding to a fire are also included within the definition of “any person”. For example, a damaged fire separation Page | 4 341 will allow the passage of fire from one compartment to another, potentially impacting search and rescue operations and even the lives of the firefighters. The FPPA and the Ontario Fire Code set minimum requirements for building and properties in regards to fire and life safety. As an example, smoke alarm(s) must be installed in all residential buildings. In May of 2012, the Office of the Fire Marshal released Technical Guideline TG-01-2012 “Fire Safety Inspections and Enforcement”. This Guideline outlines an inspection and enforcement process that is legislated under the FPPA, and relieves the municipality and inspector of liability in the event that a violation of the Ontario Fire Code results in a fire loss. Once an inspection has taken place and violation(s) noted, the inspector and the municipality carries the potential liability of the property and the occupants during the period from the time of inspection to the date an Inspection Order under the FPPA has been issued. The basic statement which has been proved in court has ushered a new way of enforcement of the Ontario Fire Code for municipalities. The enforcement option selected by the Inspector (and by extension, the municipality) should ensure that the Ontario Fire Code contraventions are dealt with in the most expeditious manner. The complexities of applying the legislation (Fire Protection and Prevention Act, RSO, 1997) and its associated regulation (Ontario Fire Code, O. Reg 217/07) has made the use of volunteer firefighters to conduct inspections and issue compliance orders difficult and possibly a liability for the municipality. Proper interpretation and consistency in application of the Ontario Fire Code ensures that a steady level of compliance is found throughout the municipality. Case law has been established which has increased a municipality’s exposure to liability as a result of not following the legislated enforcement options under the FPPA as outlined in Technical Guideline TG-01-2012 “Fire Safety Inspections and Enforcement”. (Banihashem-Bakhtiari v. Axes Investments Inc., 2004 and Smith v. Jacklin, 1994). Fire Underwriters Survey The Fire Underwriters Survey (FUS) is a national organization administered by SCM Risk Management Services Inc. FUS recommends that there be one (1) “Fire Safety Inspection Officer” per 15,000 of population. In addition, FUS recommends that, “the frequency of fire prevention inspections for all occupancies should be specifically appropriate for the level of fire risk within the occupancy.” Furthermore, the frequency of inspections will vary from one occupancy to another depending on: 1. Type of occupancy 2. Occupant load 3. Function 4. Grade of hazard Page | 5 342 As the fire risk increases, the frequency of inspections should also be increased. The following table is the minimum frequency guideline for occupancies (as identified within the National Building Code of Canada) as published by the Fire Underwriters Survey. Minimum Frequency Group – Division (NBC) Occupancy Inspection Frequency A-1 Assembly Occupancy 6 months A-2 6 months A-3 6 months A-4 6 months B-1 Institutional 6 months B-2 6 months C Residential 6 months D Business & Personal Services 12 months E Mercantile 12 months F-1 Industrial Occupancies 3 months F-2 6 months F-3 6 months FUS uses information regarding frequency of fire prevention inspections as one of many indicators to assist in establishing values for fire insurance grading purposes. Current Situation Currently, Tillsonburg Fire & Rescue Services conducts fire inspections on a complaint or request basis, the minimum level of standard as mandated by the Fire Protection and Prevention Act, 1997. The requirement for the Fire Prevention Officer is based on several needs, including: • An existing shortfall with available inspection hours to meet an identified inspection demand; • To facilitate a shift in administrative responsibilities from the Fire Chief and Deputy Chief; and • To meet Ontario Regulation 364/13 Mandatory Inspection – Fire Drill in Vulnerable Occupancy demand. Any affect the Fire Prevention Officer position can have on the reduction of fire losses will have a positive impact on the Town of Tillsonburg: • Through reduced fire suppression response, • A decrease in life threatening exposures for firefighting staff and the public, • Reduced or no interruption to the business affected by fire loss, and • Potential insurance savings and ratings for compliant structures. A Fire Prevention Officer for the Town of Tillsonburg will assist the municipality in addressing: Page | 6 343 • The inability to provide fire and life safety device inspections for high risk occupancies on a complaint, request or routine basis, or in a timely manner • Concerns with inconsistencies in fire code enforcement and inspection practises • Other key administrative short comings by shifting most inspection duties away from the Chief officers, to provide: o Fire administration with the tools to address opportunities not currently identified and meet or exceed the needs, circumstances and expectations of our community o An increased focus on fire prevention and public education needs o A shift of administrative duties away from the Chief officers, allowing a focus on municipal emergency planning, departmental training programs and a proactive/strategic approach to fire protection services • The timely and consistent review of site plan and zoning applications The Fire Prevention Officer position consists of a multi-faceted approach to meeting our fire department requirements to meet our responsibility for fire protection services under Part 2 of the Fire Protection and Prevention Act, 1997. Position Responsibilities Fire services in Canada have three basic mandates, in the following order: 1. Educate the public regarding fire safety 2. Inspect and enforce fire code contraventions 3. Provide fire suppression when incidents of fire occur With this in mind, the Fire Prevention Officer would provide services to the residents of Tillsonburg, including but not limited to: • Fire safety inspection in accordance with the provisions of the Ontario Fire Code and under the authority of the Fire Protection and Prevention Act, 1997, including routine inspections • Inspections upon request of the property owner • Inspections upon the request of the owner or representative related to the sale of property • Inspections as a result of business license applications • Inspections as a result of a complaint • Inspections requested by other municipal, provincial, or federal agencies, inspections related to building permit process, and plans examinations related to building permits, zoning applications, etc. • Conducting technical seminars for the benefit of building and property managers, insurance adjusters, and in house training for fire suppression personnel • Development and delivery of programs that would be tailored to local needs and circumstances Page | 7 344 • Demonstrations and hands-on training (such as fire extinguisher) for interested groups, organizations and businesses • Fire incident evaluation and arson investigation to determine area of origin and possible cause • Ad-hoc consultation during regular business hours, providing guidance and interpretation of codes, explanations and technical information • Public education programs for children, seniors and other audiences using multi-media formats • Performance of such other tasks necessary to maintain the continuity of the fire department within the scope of the position description Page | 8 345 TOWN OF TILLSONBURG 2015 BUSINESS PLAN ECONOMIC DEVELOPMENT & MARKETING Cephas Panschow, Development Commissioner 346 2015 Business Objectives Item Dept Owner Budget Value Target Date Hwy 3 Business Park – Final Design Engineering/ External Development Commissioner $100,000 Q1, Q2, Q3 Hwy 3 Business Park – Hwy 3 Improvements Engineering Development Commissioner $506,000 TBD Design/Build Partnership Economic Dev’t Development Commissioner $5,000 Q2 Post Secondary Programming Economic Dev’t Development Commissioner N/A Q1, Q2, Q3 Online Targeted Campaign Economic Dev’t Development Commissioner $12,000 Q2 – Q4 Tillsonburg Ambassador Program Economic Dev’t Development Commissioner /Marketing & Partnership Officer $5,000 Q3 Retail Recruitment Economic Dev’t/BIA Development Commissioner $1,000 Q3 High School Career Fair Support Economic Dev’t/MSC External $1,000 Q2 Corporate Communications Plan Economic Dev’t Marketing & Partnership Officer N/A Q2 Town Youtube Channel Economic Dev’t Marketing & Partnership Officer $1,000 Q1 Discover Tillsonburg Economic Dev’t Marketing & Partnership Officer $16,600 Q1 – Q4 Marketing Strategy (Visitor to Champion) Economic Dev’t Marketing & Partnership Officer TBD Q4 347 2015 Business Objectives Item Dept Owner Budget Value Target Date New Town Branding Economic Dev’t Marketing & Partnership Officer $10,000 Q2 Airport Website Refresh Airport Airport Administrator/ Marketing & Partnership Officer County Q1 Airport Master Plan Update Airport Airport Administrator $3,000 Q1 - Q2 Airport Lands Maintenance (Brush) Airport Airport Administrator $10,000 Q2 Taxiway D Extension (West)*Airport Airport Administrator $150,000 Q3Taxiway D Extension (West)*Airport Airport Administrator $150,000 Q3 Airport Ramp – Preparation* Airport Airport Administrator $40,000 Q4 Airport Land Acquisition* Airport Airport Administrator/ Development Commissioner TBD Q2 Airport Woodlot Clearing* Airport Airport Administrator $78,000 Q4 *Airport Taxiway, Ramp , Land Acquisition, and Woodlot Clearing contingent upon funding through asset sale 348 Risks •Delaying investment in Town owned employment lands again will detract from investment attraction objectives •Not working to attract post-secondary programming will impact workforce development objectives and future growth •Not supporting investment in resident attraction will impact growth objectives •Not supporting sale of Airport assets will limit ability to grow airport into a tourism destination and aviation employment hub •Not supporting woodlot acquisition and removal will also limit ability to •Not supporting woodlot acquisition and removal will also limit ability to grow airport 349 Opportunities •Create an investment ready environment by: •Investing in infrastructure to support industrial attraction •Preparing industrial building design options to increase interest •Creating an investment attraction ambassador program •Attracting increased education opportunities matched to local business need •Attract investment interest by using new online/web marketing tools and strategiesstrategies •Community (Based) Strategic Plan •Improve communication by implementing Corporate Communications Plan •Make Tillsonburg an attractive place to live by launching Youtube channel targeting youth and young professionals •Finalizing Marketing Strategy (creating community champions) •Redoing branding and website •Take Airport to next level and support zero net levy requirement goal by selling strategic assets to support infrastructure investments 350 Future Departmental Directions: 3 year outlook 2016 •New Town Signage •Launch Economic Development Standalone Website •Highway 3 Business Park Construction (Phase 1) •Airport Primary Metering, Ramp – Phase A, Woodlot clearing and taxiway investments funded by sale of assets •Multi-year marketing planning – Cross departmental with all Town business units. Basically, a coordinated approach to “selling” Town services. 351 Future Departmental Directions: 3 year outlook 2017 •Highway 3 Business Park Construction & Completion (Phase 2) •Airport main ramp and private access road funded by sale of assets 352 Future Departmental Directions: 3 year outlook •Airport Woodlot Clearing 2018 353 Human Resources Allocation/Deployment Plan 2014 2015 2016 Total FTE Requirements-Full time 5 4 5 Total FTE Requirements-Part time 1.495 1.33 1.33Total FTE Requirements-Part time 1.495 1.33 1.33 Contract Staff 0 0.75 0 Change from previous year 0 -0.415 0.25 Notes: 2015 0.75 FTE Contract is proposed to move to permanent in 2016 354 505 - Econ Devlpmt 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vancant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal - - - 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other - - - User Charges 3300 Miscellaneous Revenue - 22,294 27,352 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 24,955 21,026 21,026 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations - - - 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves 26,172 26,172 22,042 3905 Contribution from DC Reserves 51,127 69,492 70,420 Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 505 Economic Development.xlsx 08/01/2015 1:25 PM Page 1 of 2 355 505 - Econ Devlpmt 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 179,400 173,966 186,900 5002 Full-Time Overtime - 836 - 5003 Part-Time Regular - - 50,680 5004 Part-Time Overtime Purchases 5105 Equipment Rental 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 200 - 100 5305 Program Supplies 5310 Equipment Supplies & Repairs 5315 Books & Publications 200 514 500 5320 Building Repairs & Maintenance 5325 Heat, Light & Water - - - 5330 Insurance 926 1,404 1,404 5331 Insurance Claims 5335 Telephone, Fax & Modem 1,550 1,197 1,400 5400 Miscellaneous Expense 3,000 14,235 5,800 5405 Meeting Expenses 10,000 11,906 14,000 5410 Advertising & Promotions 23,749 23,495 20,500 5415 Training & Workshops 2,789 1,242 2,000 5420 Special Events 2,000 5,887 2,000 5425 Special Projects 7,080 7,226 12,000 5430 Membership Expenses 2,422 1,415 2,422 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 5,000 5,232 4,500 5505 Subcontractors Expense 2,400 1,685 - 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves 24,188 46,482 47,352 5955 Contributions to DC Reserves 264,904 296,721 351,558 213,778 227,229 281,138 Interfunctional Adjustments 5100 Fleet Allocation 5650 Facilities Allocation 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation - - - 213,778 227,229 281,138 Debt Principal and Interest 5900 Debt Interest 26,172 26,172 22,042 5905 Debt Principal - (1) - 3950 Prior year (surplus) deficit - - - Total Net Levy 239,950 253,400 303,180 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 505 Economic Development.xlsx 08/01/2015 1:25 PM Page 2 of 2 356 5 year Capital Plan Description Expenditures Contribution to Reserves 1 811 Design/Build Indust Park - CFWD 75,366 2 Design/Build Indust Park - Detailed Design 100,000 3 Hwy 3 Business Park - Hwy 3 Widening 506,000 4 5 2015 681,366 - 1 Hwy 3 Business Park Construction - Phase 1 895,000 2 Hwy 3 Business park Construction (Supervision)50,000 3 Hwy 3 Business Park Construction (Tendering/Administration)55,000 4 5 2016 1,000,000 - 1 Hwy 3 Business Park Construction - Phase 2 525,000 2 Hwy 3 Business park Construction (Supervision)25,000 3 Hwy 3 Business Park Construction (Tendering/Administration)25,000 4 5 2017 575,000 - 1 2 3 4 5 2018 - - 1 2 3 4 5 2019 - - Town of Tillsonburg 2015 Financial Plan Capital Costs 5 yr Capital Plan Page 1 of 1 08/01/2015357 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vancant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial - - - 3210 Grants & Subsidies-Other - - - User Charges 3300 Miscellaneous Revenue 109,850 107,311 25,712 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping 3400 Permit Fees - 11,270 - 3410 Licence Fees 3420 Certificates - 1,560 - 3430 Inspections 3500 Rentals 80,000 80,000 80,000 3505 Merchandise 3510 Concession Sales 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds Contribution from Reserves 3900 Contribution from Reserves 20,000 5,947 - 3905 Contribution from DC Reserves 209,850 206,088 105,712 Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 500 - Development & Communication Services H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 500 Development and Communication Services.xlsx 08/01/2015 1:25 PM Page 1 of 2 358 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 500 - Development & Communication Services Expenditures Labour 5001 Full-time Regular 216,800 92,792 71,300 5002 Full-Time Overtime - - - 5003 Part-Time Regular - 7,395 - 5004 Part-Time Overtime Purchases 5105 Equipment Rental 5110 Fuel & Oil 5115 Discounts Taken 5200 Materials/Inventory 5300 Supplies 2,000 1,280 2,000 5305 Program Supplies 5310 Equipment Supplies & Repairs - - - 5315 Books & Publications 400 - - 5320 Building Repairs & Maintenance 5325 Heat, Light & Water 1,300 1,520 1,500 5330 Insurance 5331 Insurance Claims 5335 Telephone, Fax & Modem 1,000 1,009 1,000 5400 Miscellaneous Expense 1,000 1,504 1,200 5405 Meeting Expenses 2,000 199 - 5410 Advertising & Promotions 2,000 - - 5415 Training & Workshops 4,000 391 - 5420 Special Events 25,000 1,423 25,000 5425 Special Projects 34,369 33,096 41,600 5430 Membership Expenses 800 377 - 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 20,000 5,947 - 5505 Subcontractors Expense - - - 5510 Equipment Maintenance Contracts - - - Contributions to Reserves 5950 Contributions to Reserves - - - 5955 Contributions to DC Reserves 310,669 146,930 143,600 100,819 (59,158) 37,888 Interfunctional Adjustments 5100 Fleet Allocation 5650 Facilities Allocation 5700 Corp Admin Allocation - - - 5705 Comm. Services Allocation 5710 Operations Allocation - - - 100,819 (59,158) 37,888 Debt Principal and Interest 5900 Debt Interest 61,857 61,858 54,522 5905 Debt Principal 106,557 106,558 111,161 3950 Prior year (surplus) deficit - - - Total Net Levy 269,234 109,258 203,572 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 500 Development and Communication Services.xlsx 08/01/2015 1:25 PM Page 2 of 2 359 5 year Capital Plan Description Expenditures Contribution to Reserves 1 803 Project satellite- CFWD 395,000 2 3 4 5 6 7 8 9 2015 395,000 - 1 2 3 - 4 2016 - - 1 2 3 - 4 5 2017 - - 1 - 2 3 4 5 2018 - - 1 2 3 4 5 2019 - - Town of Tillsonburg 2015 Financial Plan Capital Costs 5 yr Capital Plan Page 1 of 1 08/01/2015360 240 - Airport 2015 Budget Projection Budget Revenues Special Levy, Local Improvements, PILS 3000 Taxes - Residential 3005 Taxes - Multi-Residential 3010 Taxes - Commercial 3012 Taxes - Commercial Vacant Unit 3014 Taxes - Commercial Vancant Land 3020 Taxes - Shopping Centre 3022 Taxes - Shopping Centre Vacant Unit 3030 Taxes - Industrial 3032 Taxes - Industrial Vacant Unit 3034 Taxes - Industrial Vacant Land 3040 Taxes - Pipelines 3050 Taxes - Farmland 3055 Taxes - Farmland Dev. Phase 1 3060 Taxes - Large Industrial 3062 Taxes - Large Industrial Vacant Unit 3070 Taxes - Supplementaries 3075 Taxes - Bill 79 Capped Levy 3080 Taxes - Capped Rebates/Claw Backs 3085 Taxes - W/O's 3090 Taxes - PIL's 3095 Local Improvements - Residential 3096 Local Improvements - Commercial 3100 Tax Adjustments 3105 Taxes - Penalty & Interest Government Grants & Subsidies 3200 Grants & Subsidies - Federal 3205 Grants & Subsidies - Provincial 3210 Grants & Subsidies-Other 7,000 5,000 5,000 User Charges 3300 Miscellaneous Revenue - 5,273 - 3301 Residential Usage 3302 General Usage 3305 Admissions 3310 Fares & Fees 3315 Memberships 3320 Seasonal Revenues 3325 Sports Fields Fees 3330 Youth Program Fees 3335 Adult Program Fees 3340 Summer Programs 3345 Participate Programs Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 3345 Participate Programs 3350 Minor Hockey 3355 Figure Skating 3360 Programs 3365 Landscaping - 13,860 - 3400 Permit Fees 3410 Licence Fees 3420 Certificates 3430 Inspections 3500 Rentals 178,606 176,724 177,064 3505 Merchandise 231,028 272,370 237,250 3510 Concession Sales - 47 200 3515 Vending Machines 3600 Interest 3601 Late Payment Charges 3700 Special - 142,430 - 3701 Capital Surchrge - Residential 3702 Capital Surchrge - General 3705 Donations - - 1,000 3800 Sewer Revenue-Surcharge 3801 Reg 170 Surchrge - Residential 3802 Reg 170 Surchrge - General 3815 Extraordinary Revenue 3999 Revenue Clearing Account Specified Revenues 3805 Development Charges 3810 Sale of Assets 3820 Debenture Proceeds - - - Contribution from Reserves 3900 Contribution from Reserves - - - 3905 Contribution from DC Reserves 416,634 615,705 420,514 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 240 Airport.xls 08/01/2015 1:26 PM Page 1 of 2 361 240 - Airport 2015 Budget Projection Budget Town of Tillsonburg 2015 Financial Plan Operating Plan - Cost Code Summary 2014 Expenditures Labour 5001 Full-time Regular 144,600 144,554 146,300 5002 Full-Time Overtime - 1,614 - 5003 Part-Time Regular 26,973 29,185 27,128 5004 Part-Time Overtime 1,701 - - Purchases 5105 Equipment Rental 5110 Fuel & Oil 2,088 2,564 2,670 5115 Discounts Taken 5200 Materials/Inventory 190,848 226,161 191,150 5300 Supplies 2,200 3,505 3,600 5305 Program Supplies 5310 Equipment Supplies & Repairs 7,000 5,267 2,100 5315 Books & Publications 150 41 50 5320 Building Repairs & Maintenance 1,500 1,817 2,000 5325 Heat, Light & Water 9,048 13,723 14,500 5330 Insurance 6,522 6,280 6,258 5331 Insurance Cl;aims 5335 Telephone, Fax & Modem 3,072 3,235 3,420 5400 Miscellaneous Expense 7,300 8,946 9,305 5405 Meeting Expenses 3,200 2,321 3,200 5410 Advertising & Promotions 5,000 2,388 1,000 5415 Training & Workshops 1,950 500 1,000 5420 Special Events 8,000 152,703 1,500 5425 Special Projects 1,000 20,017 8,000 5430 Membership Expenses 1,246 1,016 1,391 5600 Rent Expense 5605 Interest And Finance Charges 5850 Bad Debt Expense 5800 Tax External Payments Contracted Services 5500 Consultants, Legal & Audit 11,000 10,254 11,000 5505 Subcontractors Expense 21,000 27,866 26,000 5510 Equipment Maintenance Contracts Contributions to Reserves 5950 Contributions to Reserves 1,335 1,335 6,000 5955 Contributions to DC Reserves 456,733 665,292 467,572 40,099 49,587 47,059 Interfunctional Adjustments 5100 Fleet Allocation 3,000 3,000 3,098 5650 Facilities Allocation - - - 5650 Facilities Allocation - - - 5700 Corp Admin Allocation 5705 Comm. Services Allocation 5710 Operations Allocation 3,000 3,000 3,098 43,099 52,587 50,156 Debt Principal and Interest 5900 Debt Interest 9,800 9,800 8,487 5905 Debt Principal 33,030 33,030 33,030 3950 Prior year (surplus) deficit - - - Total Net Levy 85,929 95,416 91,673 H:\Finance\Financial Plans\2015\2015 Budgets\2015 Budget 240 Airport.xls 08/01/2015 1:26 PM Page 2 of 2 362 5 year Capital Plan Description Expenditures Contribution to Reserves 1 Main Ramp - Drainage & Outlet to Pearce Drain 39,750 2 Taxiway D Extension (West)150,000 326 Office Customs - CFWD from 2014 5,000 327 Taxiway Rehab - CFWD from 2014 44,000 Land Acquisition (Woodlot)212,000 60,250 1 Woodlot Clearing (Town)78,000 2015 528,750 60,250 1 Main Ramp - Phase A 222,000 2 Primary Metering (Hydro)50,000 3 Taxiway D Extension (East)150,000 Woodlot Clearing (to 5,000 ft Threshold)54,000 62,000 2016 476,000 62,000 1 Main Ramp- Phase B 217,000 2 Private Access road 150,000 3 4 5 6 2017 367,000 - 1 Woodlot Clearing (Remainder)169,150 2 3 4 2018 169,150 - 1 New Industrial Road 450,000 2 3 4 2019 450,000 - Town of Tillsonburg 2015 Financial Plan Capital Costs 5 yr Capital Plan Page 1 of 1 08/01/2015363 STAFF REPORT DEVELOPMENT & COMMUNICATIONS SERVICES Report Title: HIGHWAY 3 BUSINESS PARK DEVELOPMENT PLAN Report No.: DCS 15-01 Author: CEPHAS PANSCHOW Meeting Type: COUNCIL BUDGET MEETING Council Date: JANUARY 22, 2015 Attachments: RECOMMENDATION: “THAT Council receive Report DCS 15-01 Highway 3 Business Park Development Plan; AND THAT the development plan as outlined in Report DCS 15-01 be considered as part of the 2015 budget discussions.” EXECUTIVE SUMMARY The purpose of this report is to seek Council approval through the 2015 budget process to move forward with a development plan for the Highway 3 Business Park with the goal of facilitating investment in Tillsonburg and creating jobs and tax revenue. These lands have been in the Town’s ownership for decades although constrained until 2012 by a restrictive covenant in favour of the County of Oxford due to the former landfill located to the rear of these lands. Two residential properties were acquired in 2008/2009 in order to enable full ownership of the property. Although the acquisition costs for the subject property were zero as the property was already owned by the Town, there have been expenditures of $827,636 incurred to date for the development of the business park due to the purchase of two corner residential properties as well as costs for the preliminary design and approval processes (Plan of Subdivision). BACKGROUND INFORMATION On June 13, 2013 staff provided Report DCS 13-44 Industrial Land Update – Highway 3 Business Park to Council for information purposes. The report provided an overview of the actions undertaken with respect to the development of the Highway 3 Business Park. 364 On February 27, 2014 the following motion regarding an extension in the period to obtain plan registration was approved by Town Council and subsequently provided by Oxford County: That Tillsonburg Council advise Oxford County that the Town supports a 3 year extension to the draft approval of the Town Industrial Plan of Subdivision, (32T- 09004), for lands described as Part Lots 1 &2, Concession 5 (Middleton), Town of Tillsonburg, to March 9, 2017. Staff is recommending that Council move forward with the development of the Highway 3 Business Park for the following reasons:  Industrial vacancy rates across Southwestern Ontario are declining and this will lead to increased interest in Greenfield development opportunities;  Manufacturing employment is increasing and this points to decreased capacity within existing manufacturer facilities in the region;  Some local manufacturers have been contemplating expansions to meet demand;  Improving the “shovel-ready” status of these lands will make these lands more attractive to prospective purchasers and improve the likelihood that the Town will be successful in attracting investment and in a shorter timeframe. With the extension in the draft plan approval, the Town has an additional three years to obtain registration of the plan. Registration of the plan typically requires the installation of all roads/services. The cost estimate for the construction of the Highway 3 Business Park (2009 prices), including Highway 3 improvements and costs incurred to date, is $2,862,626. As this is a significant financial outlay with no offsetting revenue from land sales at this time, staff is recommending that the Business Park be constructed in phases as follows: Phase Steps Timeline Final Design  Engineering Department to complete road/services design  CJDL to complete Stormwater Design & Servicing Report Q1 Q1 Marketing  Obtain design/build options for speculative industrial building construction through RFQ process  Obtain appraisal of value for lands  Reface existing sign on site Q2 Q3 2015 Q4 2015 Hwy 3 Interchange improvements  Monitor status of Ministry of Transportation Hwy improvements and timing  Release of Tender for Town led Hwy 3 Interchange Improvements  Construction of Hwy 3 Interchange Improvements Q1 – Q2 Q3 Q3 – Q4 Phase 1:  Release of Tender for Partial Construction 2016 Page 2 / 8 CAO 365 Construction  Partial road/SWM pond construction Phase 2: Construction  Completion of Construction 2017 The following steps have been identified for 2015: Step Timeline Comment Confirm financing plan for Final Design and Construction Q4 14 Funded primarily through Debentures with design funded by Industrial Land Reserve. Goal is for all costs to be offset by future land sales. Obtain Council approval for financing Q1 15 As per Report DCS 15-01 Final design of Stormwater Pond and updated Servicing Report Q1 15 CJDL Engineering to handle Stormwater pond revisions and servicing report Final design of road/services Q1 15 Engineering Department to schedule in- house completion of final design for road/services Develop Phasing Plan Q1 15 Based on revised servicing report Hwy 3 improvements Q3 – Q4 Engineering to prepare and manage tenders for both road and pond and also do contraction administration and inspection (with some CJDL support for SWM pond as needed). Savings estimated at $80,000. Cost-sharing through Local Improvement Bylaw Q1 – Q2 15 Process for cost sharing with adjacent property owners to be determined The cost estimate originally prepared for the Highway 3 Business Park construction is from 2009 and staff will be requesting an updated estimate from CJDL Engineering Limited based on the final servicing report. Staff are also recommending that the Town obtain an appraisal on the value of land in the Business Park, and specifically, land parcels of different sizes and locations within the park. One issue relating to the attractiveness of municipal industrial land sales in Southwestern Ontario is the low gross commission payable to a real estate broker/agent who brings a client to the Town. A comparable sale in a larger city would result in a commission that is much higher than in Tillsonburg. An example of this is shown in the below table. As one can see in this illustration, commercial real estate brokers are incentivized by an difference of $115,000 to prefer larger communities over smaller communities based on the simple fact that prices per acre are higher in larger communities. One of Tillsonburg’s competitive advantages (low prices) is potentially reduced by this disincentive. One way that Tillsonburg can overcome this disincentive is to pay a higher commission on land sale transactions. Page 3 / 8 CAO 366 Community Size of Parcel Price/Acre Total Price Commission Payable @ 5% Tillsonburg 10 Acres $70,000 $700,000 $35,000 Larger City 10 Acres $300,000 $3,000,000 $150,000 Instead of lowering the asking price/acre to generate interest in the Highway 3 Business Park, Council could approve an increased commission rate for land sales and, by so doing, generate increased interest from the broker/agent community. If Council were to approve an increased commission rate as follows, the overall impact would be slightly higher costs, but also increased sales and revenue. Council may want to consider the following criteria:  Increased commission for first 10 acres purchased only;  10% commission rate (would result in commission of $70,000 in above example instead of $35,000 – almost half of larger city example);  Applicable to first few land sales only. CONSULTATION/COMMUNICATION The recently approved Community (Based) Strategic Plan identifies the value of promoting environmentally sustainable living (Culture and Community Goal 4.3). Although this particular goal relates to public transportation, staff has investigated what other communities are doing in terms of incorporating sustainability into the development of new business and industrial parks. Although there are not a lot of examples of this yet, they have been able to find some information on environmental features that are incorporated into either the development of the park or in the actual buildings within the park. Page 4 / 8 CAO 367 Boxwood Business Park David Johnston Research & Technology Park (University of Waterloo) McMaster Innovation Park Environmental Features  Conducted public workshop to collect ideas on how to incorporate green or sustainable features into infrastructure and building design  Protection of trees/vegetation  LED Street Lighting  Future Transit stop  Trails  Large buffer zones from natural features  Accommodation for passive solar  Included corridor for future district energy system  Improved Stormwater Mgmt  Use existing topography where possible  109 hectare (269 acre) Environmental Reserve along Laurel Creek  Provide a rehabilitation and management plan for the preservation and enhancement of environmental functions of the reserve  Bicycle lanes incorporated into road structure  Permeable hard surfaces to increase water infiltration and reduce runoff  Rainwater collection for grey water and irrigation use  Drainage swales where needed  Walking paths (future) Sustainable Features in Buildings  Optimize building to street ratio  Water conservation features  Increased vegetation for aesthetics and site energy Buildings are encouraged to make use of environmental best practices such as passive and active solar technology, green roofs and environmental  Utilize a ground source heat pump system with eco chillers and boilers to heat and cool the entire park (three buildings so far) with a district energy Page 5 / 8 CAO 368  Maximize natural light  Provide green areas between lots and pedestrian linkages  Financial incentives for green building features including fast track permits, reduced development charges, and rebates wastewater processing systems Primary landscape areas should convey a strong sense of environmental responsibility and corporate image system.  Two of the buildings have been built to LEED Silver and one to LEED Platinum standards.  Several features of the park and buildings incorporate locally sources products, or health and vitality to our tenants (such as an onsite fitness centre) Although there are not a lot of examples of sustainable business parks in Ontario, a number of Ontario municipalities provide for new development to include sustainable design features above and beyond the building code. For example, Toronto has a green strategy for commercial buildings, Caledon has a development charge incentive for green design, Hamilton has a green Tax Incentive Grant program, and East Gwillumbury has an extensive list of features that are incorporated into plans during the Site Plan Review process. Typically the goal is to create commercial or industrial areas that are more efficient and raise the standard of sustainability, which ultimately reduces the impact on the natural environment. Other benefits include lower costs to operate the building, greater employee comfort/productivity/satisfaction. Tillsonburg could proceed with the development of the park in keeping with the principles of Low Impact Development, or LID, which has emerged as a highly effective and attractive approach to controlling stormwater pollution and protecting watersheds. LID stands apart from other approaches through its emphasis on cost-effective, lot-level strategies that natural processes and reduce the impacts of development. By addressing runoff close to the source, LID can enhance the local environment and protect public health while saving developers and local government money. It is staff’s intention to work with the Long Point Region Conservation Authority to incorporate as many practical features related to Low Impact Development as possible in the new business park subject to meeting satisfactory cost/benefit analysis. These features would then be incorporated into the final design of the industrial park. It may also be desirable to engage the community in the naming of a business park that will ultimately benefit the whole community. In this regard, one suggestion that Council Page 6 / 8 CAO 369 may want to consider is a naming contest for the overall Business Park. Currently, the Town has two business parks (the VanNorman and Forest Hill) with the VanNorman Industrial Park being named after one of the founding families of Tillsonburg. The Town could lead a process to have an open competition for the business park naming, and in so doing, engage the community in this significant project. An additional benefit could be the marketing coverage obtained through this unique initiative. FINANCIAL IMPACT/FUNDING SOURCE The estimated construction costs for the Highway 3 Business Park are as follows: Item Cost Earth Grading & Site Preparation $365,000 Storm Water Pond $100,000 Sanitary Sewer $142,000 Storm Sewer $269,000 Watermain $117,000 Roadwork $417,000 Detailed Design $75,000 Tendering, Inspection, Supervision & Administration (Third Party)** $80,000 SUBTOTAL $1,575,000 MTO Required Improvements to Highway 3** $460,000 TOTAL $2,035,000 *Cost estimate from July 1, 2009 and does not take into account any changes in prices nor impact of reduced Storm Water Management requirement due to development of 1 Clearview Dr site. **Third party engineering/inspection costs included in these figures The 2015 draft Economic Development capital budget contains a plan to fund these works over the next three years with completion in 2017 and full registration of the plan of subdivision. Debentures would be used to fund the works in 2015 and 2016 with Phase 3 being financed by land sales once development is able to proceed in the business park. Overall, the goal is to recoup all or a significant portion of these costs through future land sales. The benefit of developing these lands is the generation of new tax revenues once development occurs. In terms of alternative financing, a portion of these costs could possibly be financed through the Industrial Land Reserve although proceeding in this regard should be considered cautiously as the current balance of the account is $495,960.21 (2014) and there are other commitments on these funds. Costs incurred to date for land acquisition, design, and approvals total $827,626. When construction costs are added to this, the estimated grand total to develop these lands is $2,862,626 or $78,001 per developable acre. Page 7 / 8 CAO 370 APPROVALS Author Name/Signature CEPHAS PANSCHOW Date: JAN 2, 2015 Chief Administrative Officer Name/Signature DAVID CALDER Date: Finance Name/Signature DARRELL EDDINGTON Date: Page 8 / 8 CAO 371 STAFF REPORT DEVELOPMENT AND COMMUNICATION SERVICES REPORT TITLE: MEMBERSHIP IN THE SOUTHWESTERN ONTARIO MARKETING ALLIANCE Report No.: DCS 15-10 Author: CEPHAS PANSCHOW Meeting Type: COUNCIL BUDGET MEETING Council Date: JANUARY 22, 2015 Attachments: REPORT DCS 13-10 SOUTHERN ONTARIO MARKETING ALLIANCE PRESENTATION - COMPARISON OF SCOR, SOMA & SWEA FROM DEC 8, 2011 RECOMMENDATION: “THAT Council receive Report DCS 15-10 Membership in the Southwestern Ontario Marketing Alliance; AND THAT the Town of Tillsonburg become a member in the Southwestern Ontario Marketing Alliance subject to the following conditions: 1. SOMA agrees to discuss and find a solution to centralized lead follow up by June 30, 2015; 2. SOMA agrees to review need for policy on investment attraction/support for smaller members by December 31, 2015; and, 3. 1 year term for membership with review at the end of 2015.” EXECUTIVE SUMMARY The purpose of this report is to seek Council approval to rejoin the Southwestern Ontario Marketing Alliance to augment the Town’s Foreign Direction Investment (FDI) attraction activities. 372 BACKGROUND INFORMATION On July 14, 2003, Tillsonburg Town Council passed a by-law authorizing a Shareholders’ Agreement with the Southwestern Ontario Marketing Alliance (SOMA). At their August 12, 2013 meeting, Council passed the following resolution: THAT Council receive Report DCS 13-10 Southern Ontario Marketing Alliance (SOMA) Report; AND THAT Staff implement the following recommendations:  Advise SOMA that the municipality will take up to an additional two year leave from SOMA.  Maintain the $20,000 SOMA Membership fee in reserve for the purposes of economic development.  Direct staff to report to Council by the first Council meeting in November 2013 the following: - what other options may exist to address the scope of work that SOMA addresses; - to assess what regional alliances may exist if any to accomplish the same focus as SOMA; and - report on meetings with SOMA and if a change could occur in their structure or to create alliances. At that time, the main concern raised regarding membership in SOMA was the amount of annual membership contributions paid by the Town of Tillsonburg to the organization over the 10 year membership period versus the lack of investment received directly as a result of participation in SOMA. During the two year hiatus from SOMA, staff have used the opportunity to refocus Economic Development efforts to be more effective through the development of a “grassroots” focused investment attraction activities. Staff defined this type of plan as one that is based on the communities existing assets, and specifically, its existing opportunities. This means first developing a list of local investment opportunities and then prospecting companies that could possibly undertake the investments. The outcome of this change in tactics has been apparent in both the more practical investment interest cultivated as well as desirable development opportunities like the 253 Broadway project. Page 2 / 5 CAO 373 Staff have also investigated how membership in the following regional groups could assist with Foreign Direct Investment attraction efforts: Organization Name Comment Economic Developers Council of Ontario – Real Estate Alliance Minimum fee of $5,000 that is used to obtain Federal government funding. Fee only includes participation in one foreign event so more fees payable if expand activities. Included in SOMA membership at no extra cost. Ontario Food Cluster Initiation fee plus annual membership fee. Included in SOMA membership at no extra cost. Ontario Clean Tech Alliance Initiation fee plus annual membership fee. Included in SOMA membership at no extra cost. South Central Ontario Region (SCOR) Economic Development Corporation Annual contribution of $35,000 paid by the County of Oxford, but no investment attraction activities. South West Economic Alliance (SWEA) Annual contribution of $10,000 paid by the County of Oxford, but no investment attraction activities. In reviewing other regional economic development groups, it became apparent that there are none that offer the same benefits as SOMA in terms of generating investment leads and at a reasonable cost to taxpayers. However, the question still remains as to if leads generated through membership in SOMA can be turned into real investments in Tillsonburg. There are also other organization challenges associated with rejoining SOMA and they are summarized as:  Capacity – Due to SOMA’s large number of partnerships and memberships in various investment attraction groups (Automotive Communities Program, Ontario Clean Tech Alliance, Ontario Food Cluster, [NEW] EDCO Real Estate Alliance, etc), the amount of leads generated cannot be handled by existing staff resources within the Town. It is expected that rejoining SOMA would increase the number of leads received by the Town by 100 to 200. At even 3.5 hours/lead (total committed time), the number of days of work it would take to support this increase ranges from 50 to 86 additional days of work.  Centralized Lead Follow-up – SOMA does not have a centralized follow up system to reduce the time/resource requirements of each member. Instead, each member has to do their own follow up, which results in duplication of effort. If SOMA had a staff resource that could do the initial (and time consuming) follow up and nurture these leads until they are ready to visit the area, this would substantially increase efficiency of the organization. Page 3 / 5 CAO 374  Co-opetition Model – SOMA currently has a model where communities work together to generate leads, but then do their own follow up and investment attraction efforts. This model means that there is no concern or political will put into directing any investment to individual communities. That means that if all the investment happens in one of the member communities, then so be it. Staff are not satisfied with this model and believe that some policies should be developed to encourage investment in all member communities. Notwithstanding these issues, it is clear that the Town of Tillsonburg has missed some substantial opportunities that have been filtered from the Province and other levels of Government/agencies down to the local level through regional partnerships. In addition to this, it does not make economic sense for the Town to try and join any of the groups mentioned above on its own as the costs of doing so – from initiation fees to annual fees to non-reimbursed travel costs – are close to or more than the annual SOMA membership fee, especially once SOMA Per Diems refunds are credited towards the overall membership cost. Hence, staff is recommending that the Town of Tillsonburg re-join SOMA, but only under the following conditions: Condition Explanation SOMA agrees to discuss and find a solution to centralized lead follow up by June 30, 2015 SOMA should identify, and/or hire, a staff resource to handle the primary lead follow up activities with that resource being responsible for cultivating these leads with the goal of facilitating visits to the SOMA member communities, and eventually, investment in those communities. Potential for Tillsonburg Contract person to be funded by SOMA. SOMA agrees to review need for policy on investment attraction/support for smaller members by December 31, 2015 It should not be accepted that investment will “land-where-it-will land” without consideration of directing investment to all members, especially smaller members, on a proactive basis 1 year term for membership with review at the end of 2015 This will enable staff to evaluate the benefits of re-joining SOMA and provide a recommendation as to continued participation. In addition to these conditions, staff would participate in SOMA based on the philosophy that local investment projects and lead generation should take primary focus and participation in foreign investment attraction events should be limited in number and to those that promise to provide the maximum benefits to the Town of Tillsonburg. Page 4 / 5 CAO 375 CONSULTATION/COMMUNICATION The 2015 Economic Development Work Plan, including participation in the Southwestern Ontario Marketing Alliance, has been reviewed by the Development Committee and they are supportive of proceeding in the manner outlined in this report. FINANCIAL IMPACT/FUNDING SOURCE As approved by Council, the $20,000 annual allocation for SOMA membership has been maintained since 2013 and these funds have been placed in reserve for future Economic Development initiatives. The draft 2015 Economic Development budget also contains $20,000 in SOMA savings that are currently allocated to be put into reserves. Should Council accept this recommendation, the $20,000 would have to be reallocated to the Membership budget line, but there would be no change in the net levy amount included in the draft budget. APPROVALS Author Name/Signature CEPHAS PANSCHOW Date: JAN 15, 2014 Chief Administrative Officer Name/Signature DAVID CALDER Date: Director of Finance Name/Signature DARRELL EDDINGTON Date: Page 5 / 5 CAO 376 1 CAO STAFF REPORT DEVELOPMENT & COMMUNICATION SERVICES Title: Report No.: Author: Meeting Type: Council/Committee Date: Southern Ontario Marketing Alliance (SOMA) DCS 13-10 David Samis COUNCIL MEETING AUGUST 12, 2013 Attachments: RECOMMENDATION RESOLVED THAT Council receive Report DCS 13-10 Southern Ontario Marketing Alliance (SOMA) Report; AND THAT Staff implement the following recommendations: Advise SOMA that the municipality will take up to an additional two year leave from SOMA. Maintain the $20,000 SOMA Membership fee in reserve for the purposes of economic development. Direct staff to report to Council by the first Council meeting in November 2013 the following: o what other options may exist to address the scope of work that SOMA addresses; o to assess what regional alliances may exist if any to accomplish the same focus as SOMA; and o report on meetings with SOMA and if a change could occur in their structure or to create alliances. EXECUTIVE SUMMARY In July of 2003, Town of Tillsonburg Municipal Council passed a by-law to authorize a Shareholders’ Agreement with the Southwestern Ontario Marketing Alliance (SOMA). 377 2 CAO This report outlines research staff have undertaken with regards to the benefits of actively participating with the SOMA group and other options that may exist to accomplish similar objectives that SOMA addresses if the municipality were not to participate with SOMA. HISTORY/BACKGROUND SOMA is a partnership of seven Southwestern Ontario communities. SOMA is made up of the municipalities (shareholders) of Aylmer, Ingersoll, Stratford, St. Mary’s, St. Thomas, Tillsonburg and Woodstock, and was incorporated on January 10, 2001. Alymer and St. Mary’s have recently left SOMA. The following are salient facts with regards to SOMA: What is the financial contribution and financial picture of SOMA? Each shareholder holds votes on the SOMA Board and pays an annual contribution. Tillsonburg’s annual contribution is $20,000 per year, this is based on population. Since Tillsonburg has been a shareholder the municipality has contributed the following: Initiation fee in 2003 (approximately $10,000), plus $20,000/year from 2004 - 2012 = $180,000 + $10,000 = $190,000 To better understand the financial picture of the Alliance, a copy of the 2013 Operating Statement is attached to this report. SOMA gets funding from the Invest in Canada partnership as well as the partner municipalities. What Businesses or Opportunities has SOMA Created for Tillsonburg? SOMA Generated leads: Year Lead – SOMA Region Conversion Rate - Tillsonburg Leads from Other Sources 2006 14 0 2007 12 0 2008 14 0 2009 13 0 2010 42 0 2011 31 0 2012 47 0 Total Leads: 173 (does not include years from 2003 - 2005) 6 42 51 5264 51 41 378 3 CAO To date, Tillsonburg has not had any investments from SOMA leads that have been generated, but the community has been on the short list of a few companies (3 -4 Japanese suppliers that ended up in the region, Takumi - went to St Thomas, Sanyo when they were contemplated a solar panel plant). What is the reporting models to the member municipalities? All reporting is through the economic development staff of the corresponding member. In the past, monthly updates to the Economic Development Advisory Committee were also provided, but this was stopped with the creation of the new Development Committee. Due to issues raised in 2012 by the Tillsonburg CAO and materials presented from the Development Committee, a revised reporting structure was created which resulted in regular e -blasts being sent out to the Board of Directors, Mayors and CAO’s to keep everyone coordinated and informed on important dates, ongoing activities and anything Mayors should have a knowledge base on. How are things done - are they by by-law? Minutes are kept and approved as per the SOMA Bylaw attached. How is the organization structured? SOMA has a flat structure with only Directors and an executive comprised of the president, Treasurer and Secretary. What voting rights does Tillsonburg have? Each member has voting rights. Tillsonburg holds one voting right, similar to Ingersoll and Alymer. Woodstock, Stratford and St. Thomas, each hold two voting rights. Is there a strategic plan? SOMA was created through an initial strategic plan that identified the rationale for the communities to work together. Subsequently, there have been a number of specific sector strategies (auto, renewable, food processing, etc) that provide guidance on how to proceed with respect to activities. Nothing has been done recently to be in-line with the Province, regional groups or strategies. How does SOMA decide on what activities they will support such as tradeshows etc.? 379 4 CAO Historically, trade shows in SOMA's targeted sectors have been identified and then more research is conducted by talking to the Province, foreign consulates (where applicable) and other contacts. Once it has been determined that a show looks promising then typically a couple of members are sent to walk the show and confirm the initial research. This is usually followed by a presence in the form of exhibiting at the show. Sometimes show exhibiting is accompanied by additional marketing/ads that are designed to drive traffic to the booth. These trips are usually accompanied by visits to the local consulate or other provincial/federal government office to add more value to the trip. Recently, groups like the World Economic Development Alliance (WEDA) have been used to generate meetings with site selectors. SOMA is also part of the Ontario Automotive Communities Alliance, which is a member of the US based Automotive Communities Partnership through the Center for Automotive Research and they attend the annual sector show with the group. Since the Ontario Clean Tech Alliance and the Ontario Food Cluster were joined in early 2012, SOMA has moved almost entirely away from exhibiting at trade shows, but still uses the same methods to decide on shows to attend. The exception is that SOMA works with the OCTA and OFC groups, creating a direct conduit to the province's Ministry of Economic Development, Trade and Employment staff who have a director assigned to assist in decision making for these shows. The Province also contributes a significant amount (around $100,000) towards prospecting at these shows, which covers approximately half the annual budget for these organizations. How is SOMA accountable to it's members? Each member community is able to appoint a director to the board and this is formalized by bylaw. Reporting is then through that representative. An annual AGM is also held and is open to all representatives of the member communities. The addition of regular e-blasts has been established in order to address issues raised throughout the year. What is the staff time to participate in SOMA? Meetings - 4 hours/month x 12 months = 48 hours or ~ 7 days/year Trade shows - Average of 15 days/year (Estimated 10 days in 2013) Tasks/lead follow up - 12 days/year Is the focus of SOMA largely international or domestic? Mainly international focused. 380 5 CAO Does Tillsonburg need to have a presence internationally for Economic Development? Yes in partnership with other groups and bodies. Within Oxford County what funds and efforts exist for Economic Development? SCOR (South Central Ontario Region) - $35,000 - paid by County Oxford Connection - $25,000 - paid by County Tourism Oxford - $150,000 - paid by County SWEA (South-west Economic Alliance) - $5,000 paid by County Local Municipal Economic Development and Tourism Efforts - ???? Does SOMA have any full-time staff compliments? No, the work is undertaken by the partner municipalities. Are there opportunities to combine efforts and define roles between, SCOR, SOMA and SWEA? Yes, roles need to be defined and collaboration occur. What are the next steps that need to be examined with regards to economic development partnerships? Meet with Economic Development in the County and Tourism Staff, SOMA President, SCOR Staff and determine what synergies may exist to define relationships and develop a strategy and focus for economic development efforts. How would the municipality withdraw from SOMA? For Tillsonburg to resign would be pursuant to section 7.01.1 of the attached agreement, which allows a shareholder to sell all of its shares to the Corporation. This section is triggered by written notice to the Corporation, and is mandatory. If this option is triggered, section 8.0 sets out the requirements that must be fulfilled (within) 5 days after giving notice. Which requires the following: 1.Deliver to the Corporation, signed resignation of the Selling Shareholder; 2.Assign and transfer to the Corporation the Selling Shareholder’s Shares and deliver the required share certificates duly endorsed; 3.Deliver good and marketable title free of any encumbrances, claims and liens; 4.Deliver to the Corporation a release of any claims and liens against the Corporation; and 5.Deliver to the Corporation a release of any claims by it’s Directors and Officers. Generally there is a great deal of experience and literature with regards to regional economic development groups having great success. Models such as the Greater Toronto Marketing Alliance – GTMA, CTT (Canada’s Technology Triangle should be examined, 381 6 CAO where resources and alliances exist which include full-time staffing, participation from the private sector and focuses towards community goals and objectives. Tillsonburg is a community with many benefits and strengths. A refocus is needed to ensure community resources are used effectively to be in line with local, regional and provincial goals and to ensure that economic development initiatives are in line with community value, strategic plans and the economic development strategy. Staff recommend that the alliance to the SOMA group be put on hold for up to one year to present to Council what investments in economic development make sense for the community. FINANCIAL IMPACT/FUNDING SOURCE In the Economic Development Budget, $20,000 is allocated for the 2013 membership in SOMA, staff recommend this be kept in a reserve for economic development purposes. APPROVALS Author Name/Signature David Samis DATE: JUNE 27, 2013 Director Name/Signature David Samis DATE: JULY 27, 2013 Finance Name/Signature DATE: 382 Co m p a r i s o n o f S C O R , S O M A & S W E A De c e m b e r 9 , 2 0 1 1 38 3 Ou t l i n e • S O M A • S W E A • SC O R • SC O R • S u m m a r y • E c o n o m i c D e v e l o p m e n t A c t i v i t i e s • R e c o m m e n d a t i o n • C o n c l u s i o n 38 4 So u t h e r n O n t a r i o M a r k e t i n g A l l i a n c e • O u t l i n e : – B a c k g r o u n d – M a n d a t e – Ta r g e t I n d u s t r i e s – Ta r g e t I n d u s t r i e s – S t r u c t u r e – D i r e c t o r s – M e m b e r s h i p F e e s – N o t a b l e A c h i e v e m e n t s – R e c e n t A c t i v i t i e s – L e a d G e n e r a t i o n – A n n u a l B u d g e t – S u c c e s s e s 38 5 Ba c k g r o u n d • T h e S o u t h w e s t e r n O n t a r i o M a r k e t i n g A l l i a n c e (S O M A ) i s a p a r t n e r s h i p o f s i m i l a r l y s i z e d co m m u n i t i e s t h a t h a s g r o w n o u t o f n a t u r a l e c o n o m i c ti e s w i t h t h e g o a l o f a t t r a c t i n g a d d i t i o n a l f o r e i g n d irect ti e s w i t h t h e g o a l o f a t t r a c t i n g a d d i t i o n a l f o r e i g n d irect in v e s t m e n t t o o u r r e g i o n • T h i s r e g i o n , k n o w n a s O n t a r i o ' s H e a r t l a n d , en c o m p a s s e s t h e m u n i c i p a l i t i e s o f A y l m e r , I n g e r s o l l , St r a t f o r d , S t . M a r y s , S t . T h o m a s , T i l l s o n b u r g a n d Wo o d s t o c k . I t s t r e t c h e s a c r o s s E l g i n , O x f o r d a n d Pe r t h c o u n t i e s 38 6 38 7 Ma n d a t e • S O M A w o r k s w i t h l o c a l m u n i c i p a l i t i e s , p r o v i n c i a l a n d fe d e r a l g o v e r n m e n t s a n d i n d u s t r y t o e n s u r e t h a t a po s i t i v e b u s i n e s s c l i m a t e a n d s u p p o r t i v e in f r a s t r u c t u r e a r e i n p l a c e • SO M A a n d i t s p a r t n e r s o f f e r s u p p o r t s e r v i c e s t o n e w • SO M A a n d i t s p a r t n e r s o f f e r s u p p o r t s e r v i c e s t o n e w an d e x i s t i n g b u s i n e s s e s a n d i n d u s t r i e s l o c a t e d i n t h e re g i o n . T h e s e s e r v i c e s i n c l u d e : – C o n f i d e n t i a l s i t e s e l e c t i o n a s s i s t a n c e – P r o v i d i n g b u s i n e s s d e v e l o p m e n t o p p o r t u n i t i e s t o a r ea ma n u f a c t u r e r s – M a r k e t d i v e r s i f i c a t i o n s e m i n a r s a n d e v e n t s t o a s s i st ma n u f a c t u r e r s i n e x p l o r i n g n e w m a r k e t s • S O M A ' s p r i m a r y o b j e c t i v e i s f o r e i g n d i r e c t i n v e s t m e n t at t r a c t i o n ! 38 8 Ta r g e t I n d u s t r i e s • T r a n s p o r t a t i o n ( A u t o m o t i v e p a r t s a n d as s e m b l y ) • Ma c h i n i n g a n d T o o l i n g ( A d v a n c e d • Ma c h i n i n g a n d T o o l i n g ( A d v a n c e d Ma n u f a c t u r i n g ) • P l a s t i c s • F o o d ( F o o d P r o c e s s i n g a n d A g r i - b u s i n e s s ) • G r e e n E n e r g y ( R e n e w a b l e a n d A l t e r n a t i v e En e r g y ) 38 9 St r u c t u r e • F o r m e d i n 2 0 0 0 b y e c o n o m i c d e v e l o p m e n t s t a f f w i t h Wo o d s t o c k l e a d i n g t h e i n i t i a t i v e • R e g i s t e r e d a s a c o r p o r a t i o n o n J a n u a r y 1 0 , 2 0 0 1 • On e o f t h e f i r s t r e g i o n a l e c o n o m i c d e v e l o p m e n t a g e n cies • On e o f t h e f i r s t r e g i o n a l e c o n o m i c d e v e l o p m e n t a g e n cies in O n t a r i o a n d t h e f i r s t i n S o u t h w e s t e r n O n t a r i o • E a c h c o m m u n i t y p a y s a m e m b e r s h i p f e e b a s e d o n t h e si z e o f t h e c o m m u n i t y • R e c e i v e s o n e o r m o r e d i r e c t o r p o s i t i o n s o n t h e b o a rd • A l l d i r e c t o r s a r e m u n i c i p a l e c o n o m i c d e v e l o p m e n t s taff or ot h e r s t a f f w i t h e c o n o m i c d e v e l o p m e n t r e s p o n s i b i l i t ies • A c c o u n t a b i l i t y t h r o u g h p r o v i s i o n o f A n n u a l G e n e r a l Me e t i n g ( A u g ) r e p o r t s t o m e m b e r s a s w e l l a s i n f o r m a l re p o r t i n g t h r o u g h b o a r d o f d i r e c t o r s 39 0 Di r e c t o r s • B i l l M a t e s ( I n g e r s o l l ) – P r e s i d e n t • L a r r y A p p l e ( S t r a t f o r d ) – T r e a s u r e r • Le n M a g y a r ( W o o d s t o c k ) – Se c r e t a r y • Le n M a g y a r ( W o o d s t o c k ) – Se c r e t a r y • B o b W h e e l e r ( S t T h o m a s ) – P a s t P r e s i d e n t • C e p h a s P a n s c h o w ( T i l l s o n b u r g ) – D i r e c t o r • G r a n t B r o u e r ( S t M a r y ’ s ) – D i r e c t o r • J e n n i f e r R e y n a e r t ( A y l m e r ) – D i r e c t o r • R a n d y M a t t i c e ( S t r a t f o r d ) – D i r e c t o r • B r a d H a m m o n d ( W o o d s t o c k ) – D i r e c t o r • S e a n D y k e ( S t T h o m a s ) – D i r e c t o r 39 1 Me m b e r s h i p F e e s Ca t e g o r i e s P o p u l a t i o n Co s t p e r Mu n i c i p a l i t y / Y r On e T i m e In i t i a t i o n F e e V o t e s 1 0 - 10 , 0 0 0 $1 0 , 0 0 0 $2 , 0 0 0 1 1 0 - 10 , 0 0 0 $1 0 , 0 0 0 $2 , 0 0 0 1 2 1 0 , 0 0 0 - 2 0 , 0 0 0 $ 2 0 , 0 0 0 $ 3 , 0 0 0 2 3 2 0 , 0 0 0 - 4 0 , 0 0 0 $ 3 0 , 0 0 0 $ 4 , 0 0 0 3 4 4 0 , 0 0 0 - 8 0 , 0 0 0 $ 4 5 , 0 0 0 $ 6 , 0 0 0 3 5 > 8 0 , 0 0 0 $ 1 / p e r c a p i t a $ 0 . 1 0 / c a p i t a 4 39 2 No t a b l e A c h i e v e m e n t s 1 9 9 9 - 2 0 1 1 • C o m p l e t e d a n d u p d a t e d a s t r a t e g i c e c o n o m i c a n a l y s i s o f t h e fo u r c o u n t y a r e a i d e n t i f y i n g o p p o r t u n i t i e s f o r m a n u fa c t u r i n g in v e s t m e n t ( 1 9 9 9 a n d 2 0 0 6 ) • C o m p l e t e d s e c t o r s p e c i f i c s t u d i e s f o r F o o d P r o c e s s in g a n d Gr e e n E n e r g y s e c t o r s ( 2 0 0 9 ) Gr e e n E n e r g y s e c t o r s ( 2 0 0 9 ) • C r e a t i o n o f t h e S O M A B r a n d i n g w h i c h i s n o w r e c o g n i ze d in t e r n a t i o n a l l y • R e s e a r c h e d , d e s i g n e d a n d p r i n t e d i n v e s t m e n t b r o c h u re s • D e s i g n e d a n d m a n u f a c t u r e d f r e e s t a n d i n g 1 0 a n d 2 0 f oo t w i d e tr a d e s h o w b o o t h s • D e v e l o p e d S O M A w e b s i t e ( ww w . s o m a s i t e . c o m ) • S i n c e 1 9 9 9 S O M A h a s a c c e s s e d o v e r $ 3 0 0 , 0 0 0 i n f u n d ing from th e F e d e r a l G o v e r n m e n t 39 3 No t a b l e A c h i e v e m e n t s 1 9 9 9 - 2 0 1 1 • I n v e s t m e n t s e m i n a r i n C h i c a g o w i t h P r o v i n c i a l a n d th e F e d e r a l Go v e r n m e n t s • E x h i b i t e d a t n u m e r o u s t r a d e s h o w s t h r o u g h o u t t h e U ni t e d St a t e s , G e r m a n y a n d J a p a n • Pr e s e n t e d a n I n v e s t m e n t S e m i n a r i n G e r m a n y a t t h e H annover • Pr e s e n t e d a n I n v e s t m e n t S e m i n a r i n G e r m a n y a t t h e H annover Fa i r i n c o n j u n c t i o n w i t h t h e O n t a r i o G o v e r n m e n t • P r e s e n t e d i n f o r m a t i o n U S b a s e d s i t e s e l e c t o r s o n f am i l i a r i z a t i o n to u r s o f O n t a r i o • P r e p a r e d p r o p o s a l f o r p r o v i n c i a l c o n s i d e r a t i o n f o r a S O M A T a x In c e n t i v e z o n e • O n g o i n g m e e t i n g s w i t h D e t r o i t a n d C h i c a g o c o n s u l a t e o f f i c i a l s to i n v e s t i g a t e i n v e s t m e n t p a r t n e r s h i p o p p o r t u n i t i e s • R e c o g n i z e d b y t h e C a n a d i a n C o n s u l a t e i n M u n i c h a s one of on l y t h r e e O n t a r i o j u r i s d i c t i o n s t h a t a r e a c t i v e i n t h e G e r m a n ma r k e t 39 4 No t a b l e A c h i e v e m e n t s 1 9 9 9 - 2 0 1 1 • R e t a i n e d M r . K a t s u y a Y a m a g u c h i a s a n a g e n t f o r S O M A in Ja p a n t o d e v e l o p F o r e i g n D i r e c t I n v e s t m e n t o p p o r t u n it i e s • R e t a i n e d D r . K l a u s K e m p f t o a c t a s a n a g e n t f o r S O MA i n Ge r m a n y t o d e v e l o p F D I o p p o r t u n i t i e s • SO M A t r a d e m i s s i o n s t o G e r m a n y a n d J a p a n t o m e e t w i th • SO M A t r a d e m i s s i o n s t o G e r m a n y a n d J a p a n t o m e e t w i th Em b a s s y a n d C o n s u l a t e o f f i c i a l s , c o n d u c t I n v e s t m e n t s e m i n a r s , to a t t e n d t r a d e f a i r s a n d t o m e e t w i t h c o m p a n i e s • C o - o r d i n a t e d s i t e s e l e c t i o n v i s i t s o f a m a j o r J a p a ne s e s o l a r co m p a n y a n d T o y o t a s u p p l i e r s t o t h e S O M A r e g i o n . • C o n t r a c t e d w i t h U S s i t e s e l e c t i o n c o n s u l t a n t s t o d ev e l o p in v e s t m e n t o p p o r t u n i t i e s a n d t o a r r a n g e f o r m e e t i n g s • H o s t e d o n g o i n g A u t o m o t i v e I n v e s t m e n t s e m i n a r s i n c oo p e r a t i o n wi t h o t h e r E c o n o m i c D e v e l o p m e n t a g e n c i e s 39 5 20 1 1 A c t i v i t i e s Na m e D a t e S e c t o r L o c a t i o n C o m m e n t s Co m p o s i t e s F e b 2 - 4 P l a s t i c s F o r t L a u d e r d a l e Wi n d p o w e r Ma y 2 2 -25 Re n e w a b l e An a h e i m Wi n d p o w e r Ma y 2 2 -25 Re n e w a b l e En e r g y An a h e i m In t e r S o l a r N A J u l 1 2 - 1 4 R e n e w a b l e En e r g y Sa n F r a n c i s c o AN U G A O c t 8 - 1 2 F o o d Pr o c e s s i n g Co l o g n e Tr a d e M i s s i o n t o Ja p a n No v 1 – 1 2 A d v a n c e d Ma n u f a c t u r i n g To k y o / N a g o y a 39 6 Tr a d e S h o w S e l e c t i o n P r o c e s s Na m e L o c a t i o n D a t e f r o m D a t e t o S e c t o r Mo d e x 2 0 1 2 A t l a n t a , G A 0 6 - F e b - 1 2 0 9 - F e b - 1 2 A d v a n c e d M f g . Co m p o s i t e s 2 0 1 2 L a s V e g a s , N V 2 1 - F e b - 1 2 2 3 - F e b - 1 2 C o m p o sites An u g a F o o d t e c C o l o g n e , G e r m a n y 2 7 - M a r - 1 2 3 0 - M a r - 1 2 F o o d NP E 2 0 1 2 O r l a n d o , F L 0 1 - A p r - 1 2 0 5 - A p r - 1 2 P l a s t i c s IM T S 2 0 1 2 Ch i c a g o , I L 10 -Se p -12 15 -Se p -12 Advanced Mfg. IM T S 2 0 1 2 Ch i c a g o , I L 10 -Se p -12 15 -Se p -12 Advanced Mfg. Au t o m e c h a n i k a F r a n k f u r t , G e r m a n y 1 1 - S e p - 1 2 1 6 - S e p - 1 2 A u to SI A L 2 0 1 2 P a r i s , F r a n c e 2 1 - O c t - 1 2 2 5 - O c t - 1 2 F o o d SE M A 2 0 1 2 L a s V e g a s , N V 3 0 - O c t - 1 2 0 2 - N o v - 1 2 A u t o JE C S h o w A m e r i c a s B o s t o n , M A 0 7 - N o v - 1 2 0 9 - N o v - 1 2 C o m p o sites IZ B 2 0 1 2 W o l f s b u r g , G e r m a n y F a l l 2 0 1 2 F a l l 2 0 1 2 A u t o So l a r P o w e r I n t ' l O r l a n d o , F L 1 0 - S e p - 1 2 1 3 - S e p - 1 2 S o l a r In t e r s o l a r N A S a n F r a n c i s c o , C A 1 0 - J u l - 1 2 1 2 - J u l - 1 2 S o l ar Wi n d p o w e r 2 0 1 2 A t l a n t a , G A 0 3 - J u n - 1 2 0 6 - J u n - 1 2 W i n d Fa b T e c h 2 0 1 2 L a s V e g a s , N V 1 2 - N o v - 1 2 1 4 - N o v - 1 2 A d v a n c e d Mfg. 39 7 Te n t a t i v e 2 0 1 2 A c t i v i t i e s Ex h i b i t Na m e L o c a t i o n D a t e f r o m D a t e t o S e c t o r JE C S h o w A m e r i c a s B o s t o n , M A 0 7 - N o v - 1 2 0 9 - N o v - 1 2 C o m p o sites In t e r s o l a r N A S a n F r a n c i s c o , C A 1 0 - J u l - 1 2 1 2 - J u l - 1 2 S o l a r At t e n d / W a l k w i t h C o m p a n y M e e t i n g s Na m e L o c a t i o n D a t e f r o m D a t e t o S e c t o r NP E 2 0 1 2 O r l a n d o , F L 0 1 - A p r - 1 2 0 5 - A p r - 1 2 P l a s t i c s IM T S 2 0 1 2 C h i c a g o , I L 1 0 - S e p - 1 2 1 5 - S e p - 1 2 A d v a n c e d M f g . SE M A 2 0 1 2 La s V e g a s , N V 30 -Oc t -12 02 -No v -12 Au t o SE M A 2 0 1 2 La s V e g a s , N V 30 -Oc t -12 02 -No v -12 Au t o So l a r P o w e r I n t ' l O r l a n d o , F L 1 0 - S e p - 1 2 1 3 - S e p - 1 2 S o l a r Wi n d p o w e r 2 0 1 2 A t l a n t a , G A 0 3 - J u n - 1 2 0 6 - J u n - 1 2 W i n d WE D A S h o w s Fa b T e c h 2 0 1 2 L a s V e g a s , N V 1 2 - N o v - 1 2 1 4 - N o v - 1 2 A d v a n c e d Mfg. Re n e w a b l e E n e r g y Wo r l d C o n g r e s s L o n g B e a c h , C A 1 4 - F e b - 1 1 1 6 - F e b - 1 1 Pl a s t e c S o u t h F o r t W o r t h , T X 1 4 - M a r - 1 1 1 5 - M a r - 1 1 AM I I n t e r n a t i o n a l D a l l a s , T X 3 0 - A p r - 1 1 0 3 - M a y - 1 1 Pl a s t e x E a s t P h i l d e l p h i a , P A 2 2 - M a y - 1 1 2 4 - M a y - 1 1 Wi n d p o w e r Co n f e r e n c e A t l a n t a , G A 0 3 - J u n - 1 1 0 6 - J u n - 1 1 OA C A S h o w s IZ B o r I A A G e r m a n y MB S Tr a v e r s e C i t y , M I Au g u s t 39 8 Le a d G e n e r a t i o n Ye a r L e a d s f r o m S O M A v s To t a l T i l l s o n b u r g Le a d s % S h a r e o f Ti l l s o n b u r g L e a d s 20 0 7 12 / 5 4 22 % 20 0 7 12 / 5 4 22 % 20 0 8 1 4 / 6 5 2 2 % 20 0 9 1 3 / 6 5 2 0 % 20 1 0 4 0 / 1 0 5 3 8 % 20 1 1 Y T D 2 1 / 6 5 3 2 % 39 9 Ex a m p l e s o f L e a d s f r o m S O M A 20 1 0 - 5 2 I S - H a s c l i e n t f r o m I n d i a t h a t m a y m f g r i n O n t ar i o 20 1 0 - 5 3 I S - L o o k i n g a t s e t t i n g u p m f g i n O n t a r i o 20 1 0 - 5 4 I S - L o o k i n g t o e s t a b l i s h o f f i c e f o r s o l a r i n s ta l l a t i o n s 20 1 0 - 5 5 I S - P l a n n i n g f o r s a l e s a n d m f g i n O n t a r i o 20 1 0 -56 IS - Se e k i n g l a n d f o r s o l a r f a r m a n d 5 0 , 0 0 0 sf bu i l d i n g 20 1 0 -56 IS - Se e k i n g l a n d f o r s o l a r f a r m a n d 5 0 , 0 0 0 sf bu i l d i n g 20 1 0 - 8 4 I M T S - L o o k i n g t o e s t a b l i s h a s a l e s o f f i c e i n O n t a r i o 20 1 0 - 8 5 I M T S - C o n s i d e r i n g e x p a n s i o n i n t o C a n a d a 20 1 0 - 8 6 I M T S - N e e d a c e n t r a l N A o f f i c e / m f g p r e s e n c e 20 1 0 - 8 7 I M T S - S e e k i n g 2 0 - 3 0 , 0 0 0 s f i n d u s t r i a l b u i l d in g 20 1 0 - 8 8 I M T S - D i s t r i b u t o r r e l o c a t i o n f r o m B C 20 1 1 - 2 6 A W E A - C o n s i d e r i n g p a r t i a l t o w e r m f g i n O n t a r i o 20 1 1 - 4 2 I S - C o n s i d e r i n g s o l a r p a n e l p l a n t i n O N 20 1 1 - 4 7 W E D A - U S M f g r s e e k i n g 2 0 , 0 0 0 s f 40 0 SO M A B u d g e t Ca t e g o r y 2 0 1 1 2 0 1 2 ( P r o p o s e d Re v e n u e -M e m b e r s h i p -F e d e r a l G o v ’ t ( I C C I ) -O t h e r $1 4 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 , 0 0 0 $1 4 0 , 0 0 0 $ 1 0 , 0 0 0 $ 1 , 0 0 0 TO T A L $ 1 5 1 , 0 0 0 $ 1 5 1 , 0 0 0 Ex p e n d i t u r e s -T r a d e S h o w & R e l a t e d -A d v e r t i s i n g -I C C I -P r i n t e d M a t e r i a l s -D a t a b a s e & W e b s i t e -F o r e i g n R e p r e s e n t a t i o n -A d m i n i s t r a t i o n & M i s c -S p e c i a l P r o j e c t s $ 5 0 , 0 0 0 $ 2 , 0 0 0 $ 7 , 5 0 0 $ 5 , 0 0 0 $ 2 , 0 0 0 $ 5 7 , 0 0 0 $ 2 7 , 5 0 0 $ 5 0 , 0 0 0 $ 2 , 0 0 0 $ 5 , 0 0 0 $ 2 , 0 0 0 $ 3 5 , 0 0 0 $ 1 3 , 0 0 0 $ 4 3 , 5 0 0 TO T A L $ 1 5 1 , 0 0 0 $ 1 5 1 , 0 0 0 40 1 We b s i t e 40 2 Bo o t h 40 3 Su c c e s s e s • C r e a t i o n o f a n o r g a n i z a t i o n t h a t e n a b l e s s m a l l e r mu n i c i p a l i t i e s t o l e v e r a g e t h e i r b u d g e t s i n o r d e r t o le v e l t h e p l a y i n g f i e l d w i t h m u c h l a r g e r a n d b e t t e r fi n a n c e d i n v e s t m e n t a t t r a c t i o n o r g a n i z a t i o n s • C r e a t e d i n t e r n a t i o n a l a w a r e n e s s o f o u r r e g i o n • R e c e i v e d r e c o g n i t i o n a n d s u b s t a n t i a l f i n a n c i a l su p p o r t f r o m s e n i o r g o v e r n m e n t • G e n e r a t i n g i n c r e a s i n g n u m b e r o f l e a d s f o r m e m b e r s • S O M A i s T i l l s o n b u r g ’ s o n l y f o r e i g n d i r e c t i n v e s t m e n t ve h i c l e a t t h i s t i m e 40 4 So u t h W e s t E c o n o m i c A l l i a n c e ( S W E A ) • O u t l i n e : – B a c k g r o u n d – M a n d a t e – O b j e c t i v e s – Be n e f i t s – Be n e f i t s – C u r r e n t P r i o r i t i e s – S t r u c t u r e – D i r e c t o r s – M e m b e r s / N o n - M e m b e r s – M e m b e r s h i p F e e s – N o t a b l e A c h i e v e m e n t s – B u d g e t – S u c c e s s e s 40 5 Ba c k g r o u n d • J a n 7 , 2 0 0 9 c a l l f o r t h e G o v e r n m e n t o f C a n a d a t o mo v e q u i c k l y t o b o l s t e r t h e r e g i o n ’ s e c o n o m y , r e b u i l d it s i n f r a s t r u c t u r e , a n d e s t a b l i s h a f e d e r a l a g e n c y t o pr o m o t e i t s e c o n o m i c d e v e l o p m e n t pr o m o t e i t s e c o n o m i c d e v e l o p m e n t • S o u t h w e s t O n t a r i o , o n e o f C a n a d a ’ s e c o n o m i c en g i n e s , i s ( w a s ) f a l t e r i n g , s h e d d i n g t h o u s a n d s o f au t o ‐se c t o r a n d o t h e r m a n u f a c t u r i n g j o b s • A t t h e c e n t r e o f $ 7 5 0 ‐bi l l i o n w o r t h o f C a n a d a ’ s an n u a l t r a d e w i t h t h e U n i t e d S t a t e s … t h e l a r g e s t bi ‐na t i o n a l t r a d i n g r e l a t i o n s h i p i n t h e w o r l d 40 6 Ba c k g r o u n d C o n ’ t • C o n k l i n a n d H o l b u r n ( 2 0 0 8 ) R e p o r t c o n c l u d e d t h a t ne w p u b l i c i n f r a s t r u c t u r e i n v e s t m e n t i s e s s e n t i a l f o r th e r e g i o n ’ s e c o n o m i c d e v e l o p m e n t • T h e y p r o p o s e d i m p r o v e d i n f r a s t r u c t u r e l i n k s w i t h i n th e r e g i o n a n d a t b o r d e r c r o s s i n g s , e n h a n c e d hi g h w a y a n d r a i l i n f r a s t r u c t u r e , n e w i n t e r m o d a l fa c i l i t i e s , a n d n e w o r e n h a n c e d b o r d e r ‐se c u r i t y pr o c e s s e s . • A l s o e m p h a s i z e d t h e n e e d t o c o o r d i n a t e r e g i o n a l in v e s t m e n t s t h r o u g h i n c r e a s e d r e g i o n a l c o o p e r a t i o n 40 7 Ma n d a t e • T h e m i s s i o n o f t h e S o u t h w e s t E c o n o m i c As s e m b l y ( S W E A ) i s t o b u i l d O n t a r i o ' s ec o n o m y i n t h e S o u t h w e s t t h r o u g h s t r o n g ec o n o m y i n t h e S o u t h w e s t t h r o u g h s t r o n g re g i o n a l l e a d e r s h i p a n d c o o p e r a t i o n • “ C r e a t i n g o n e s t r o n g v o i c e f o r S o u t h w e s t e r n On t a r i o ” 40 8 Ma p o f S W E A R e g i o n 40 9 Ob j e c t i v e s • I n c l u d e : – P r o m o t e r e g i o n a l e c o n o m i c c o o p e r a t i o n – Ce l e b r a t e r e g i o n a l e c o n o m i c s u c c e s s e s – Ce l e b r a t e r e g i o n a l e c o n o m i c s u c c e s s e s – I d e n t i f y w h e r e e c o n o m i c c o o p e r a t i o n w i l l p a y di v i d e n d s – S i g n a l t h e b e n e f i t s f o r i m p r o v e d c o o p e r a t i o n a m o n g ke y s e c t o r s o f t h e e c o n o m y – O u t l i n e t h e c h a l l e n g e s t o e n h a n c e d p r o d u c t i v i t y – R e c o g n i z e t h e p o l i t i c a l c h a l l e n g e s – P r o d u c e a r e g i o n a l e c o n o m i c i n f o r m a t i o n b a s e 41 0 Ob j e c t p e r L e t t e r s P a t e n t • " c o o p e r a t i v e l y p r o m o t e t h e c o m p e t i t i v e ad v a n t a g e s a n d b u s i n e s s o p p o r t u n i t i e s i n t h e co u n t i e s a n d r e g i o n s o f S o u t h w e s t O n t a r i o a n d co u n t i e s a n d r e g i o n s o f S o u t h w e s t O n t a r i o a n d to r a i s e t h e p r o f i l e o f t h e S o u t h w e s t O n t a r i o Ar e a a s a w o r l d c l a s s b u s i n e s s l o c a t i o n i n or d e r t o e x p a n d t h e e c o n o m y o f t h e r e g i o n , an d o t h e r s u c h o t h e r c o m p l e m e n t a r y p u r p o s e s no t i n c o n s i s t e n t w i t h t h e s e o b j e c t s . " 41 1 Be n e f i t s • A f o r u m t o p r o m o t e e c o n o m i c c o o p e r a t i o n t h r o u g h o u t th e r e g i o n a n d a c r o s s k e y s e c t o r s o f t h e e c o n o m y • A m e a n s t o i d e n t i f y w h e r e r e g i o n a l i n v e s t m e n t w i l l • A m e a n s t o i d e n t i f y w h e r e r e g i o n a l i n v e s t m e n t w i l l pa y d i v i d e n d s • A b e t t e r u n d e r s t a n d i n g o f c h a l l e n g e s t h a t i m p a c t pr o d u c t i v i t y • A c c e s s t o i n - d e p t h e c o n o m i c i n f o r m a t i o n a b o u t t h e re g i o n • I m p r o v e d p o l i c y d e v e l o p m e n t a n d b e t t e r c o o p e r a t i o n be t w e e n j u r i s d i c t i o n s o f g o v e r n m e n t 41 2 Cu r r e n t p r i o r i t i e s 1. R e s e a r c h a n d A d v o c a c y 2. Re g i o n a l B r a n d B u i l d i n g 2. Re g i o n a l B r a n d B u i l d i n g 3. S e r v i c e s f o r F o r e i g n D i r e c t I n v e s t m e n t ( F D I ) At t r a c t i o n 41 3 St r u c t u r e • F o r m e d i n 2 0 0 6 b y e c o n o m i c d e v e l o p m e n t s t a f f w i t h Ch a t h a m - K e n t , L o n d o n a n d W i n d s o r l e a d i n g t h e i n i t i a tive • P o l i t i c i a n s w e r e a d d e d a s t h e o r g a n i z a t i o n w a s f o r malized • R e g i s t e r e d a s a c o r p o r a t i o n i n M a y 2 0 0 7 • Se c o n d r e g i o n a l e c o n o m i c d e v e l o p m e n t a g e n c y i n • Se c o n d r e g i o n a l e c o n o m i c d e v e l o p m e n t a g e n c y i n So u t h w e s t e r n O n t a r i o • E a c h c o u n t y p a y s a m e m b e r s h i p f e e b a s e d o n t h e s i z e of th e c o m m u n i t y • G o v e r n e d b y a 1 1 m e m b e r b o a r d o f d i r e c t o r s e l e c t e d by th e m e m b e r s h i p e a c h y e a r a t t h e a n n u a l g e n e r a l m e e t ing • A c c o u n t a b i l i t y t h r o u g h A n n u a l G e n e r a l M e e t i n g ( J u n e) as we l l a s i n f o r m a l r e p o r t i n g t h r o u g h b o a r d o f d i r e c t o rs and st a f f 41 4 Di r e c t o r s • D a n M a t h i e s o n , M a y o r o f S t r a t f o r d - B o a r d C h a i r • K r i s t i n a V e r n e r , U n i v e r s i t y o f W i n d s o r - V i c e - C h a i r • D o n M c K a y , W a r d e n , C o u n t y o f O x f o r d - T r e a s u r e r • R o n G a u d e t , W i n d s o r - E s s e x E c o n o m i c D e v e l o p m e n t Co r p o r a t i o n - S e c r e t a r y • J i m M a u d s l e y , M a y o r , T h a m e s C e n t r e • S e r g e L a v o i e ( e x - o f f i c i o ) , P r e s i d e n t , S W E A • D a n G i e r u s z a k , T r a n s f o r m a t i o n S e r v i c e s G r o u p , B r u c e C o u n t y • J o h n G r a c e , D e p u t y M a y o r , T o w n o f G o d e r i c h • R a n d y H o p e , M a y o r o f C h a t h a m - K e n t • D o n M u m f o r d , ' A ' C h a n n e l L o n d o n & W i n d s o r • P e t e r W h i t e , L o n d o n E c o n o m i c D e v e l o p m e n t C o r p o r a t i on 41 5 El i g i b l e M e m b e r s / M e m b e r s Mu n i c i p a l M e m b e r s M u n i c i p a l N o n - M e m b e r s Br u c e C o u n t y Ch a t h a m K e n t El g i n C o u n t y Es s e x C o u n t y Br a n t C o u n t y * / B r a n t f o r d Ha l d i m a n d C o u n t y No r f o l k C o u n t y * St T h o m a s Es s e x C o u n t y Gr e y C o u n t y Hu r o n C o u n t y La m b t o n C o u n t y Ci t y o f L o n d o n Mi d d l e s e x C o u n t y Ox f o r d C o u n t y Pe r t h C o u n t y Ci t y o f S t . M a r y s Ci t y o f S t r a t f o r d Ci t y o f W i n d s o r St T h o m a s Wa t e r l o o R e g i o n We l l i n g t o n C o u n t y * / G u e l p h *F o r m a l a l l i a n c e s w i t h b o t h S C O R a n d W O W C m e a n s t h a t N or f o l k , B r a n t a n d We l l i n g t o n a r e c o n n e c t e d t o S W E A 41 6 Me m b e r s h i p F e e s • M e m b e r s h i p f e e s s u p p o r t o r g a n i z a t i o n o n l y • D o e s n o t i n c l u d e a n y c o n f e r e n c e f e e s n o r in v e s t m e n t a t t r a c t i o n i n i t i a t i v e s 41 7 No t a b l e A c h i e v e m e n t s ( 2 0 1 0 ) • C o m p l e t i o n o f t w o r e s e a r c h d o c u m e n t s • W e b s i t e & e m a i l d i s t r i b u t i o n l i s t • “D r i v e r s o f C h a n g e ” a u d i o s y n d i c a t i o n • “D r i v e r s o f C h a n g e ” a u d i o s y n d i c a t i o n • S W E A A s s e m b l y • O u t r e a c h m e e t i n g s • S p o n s o r o f O n t a r i o W e s t M u n i c i p a l F o r u m 41 8 No t a b l e A c h i e v e m e n t s ( 2 0 1 1 ) • E c o n o m i c D e v ’ t C a u c a s ( F e b ) • M i s s i o n t o N e t h e r l a n d s ( M a y 2 3 - 2 7 ) • An n u a l G e n e r a l M e e t i n g ( J u n 1 0 ) • An n u a l G e n e r a l M e e t i n g ( J u n 1 0 ) • S o u t h w e s t e r n O n t a r i o A d v o c a c y D a y a t Qu e e n s P a r k ( D e c 1 5 ) 41 9 SW E A B u d g e t Ca t e g o r y 2 0 1 1 2 0 1 2 ( P r o p o s e d ) Re v e n u e -M e m b e r s h i p -C o n f e r e n c e s -O t h e r $1 1 3 , 3 7 5 $ 3 2 , 0 0 0 $ 1 5 0 $1 3 6 , 0 0 0 $ 3 4 , 5 0 0 $ 1 5 0 TO T A L $ 1 4 5 , 5 2 5 $ 1 7 0 , 6 5 0 Ex p e n d i t u r e s -S t a f f i n g -T r a v e l & A c c o m -G e n e r a l O f f i c e -W e b s i t e -M e e t i n g s $1 0 8 , 0 0 0 $ 1 0 , 0 0 0 $ 1 5 , 2 0 0 $ 4 , 0 0 0 $ 1 1 , 5 0 0 $1 1 3 , 5 0 0 $ 1 0 , 0 0 0 $ 1 5 , 9 0 0 $ 4 , 0 0 0 $ 1 2 , 0 0 0 TO T A L $ 1 4 8 , 7 0 0 $ 1 5 5 , 4 0 0 42 0 Su c c e s s e s • C r e a t i o n o f F e d D e v O n t a r i o ? • 20 1 1 C o m m i t m e n t b y O n t a r i o L i b e r a l s t o c r e a t e • 20 1 1 C o m m i t m e n t b y O n t a r i o L i b e r a l s t o c r e a t e a f u n d f o r S o u t h w e s t e r n O n t a r i o …. T o b e d e t e r m i n e d 42 1 So u t h C e n t r a l O n t a r i o R e g i o n • O u t l i n e : – B a c k g r o u n d – M a n d a t e / V i s i o n – 7 S t r a t e g i c D i r e c t i o n s – T a r g e t I n d u s t r i e s – S t r u c t u r e – D i r e c t o r s – M e m b e r s h i p F e e s – N o t a b l e A c h i e v e m e n t s – B u d g e t – S u c c e s s e s 42 2 Ba c k g r o u n d • R e g i o n h a s e n j o y e d a l m o s t a c e n t u r y o f pr o s p e r i t y • B a s e d o n s u c c e s s f u l c r o p p r o d u c t i o n • Bu t . . . • Bu t . . . – C o l l a p s e o f t h e t o b a c c o i n d u s t r y – L o c a l f o o d p r o c e s s i n g i n d u s t r y i n d e c l i n e – I n c r e a s i n g c o s t o f e n e r g y a n d l a b o u r , g l o b a l ec o n o m i c u n c e r t a i n t i e s a n d d e c r e a s i n g c o m m o d i t y va l u e s • D e s p i t e t h e c h a l l e n g e s , t h e r e g i o n ’ s e c o n o m y is b e c o m i n g m o r e d i v e r s i f i e d a n d o p p o r t u n i t i e s ar e e m e r g i n g 42 3 Ma p o f S C O R R e g i o n 42 4 Ma n d a t e 1. T o p u r s u e a r e g i o n a l a p p r o a c h t o e c o n o m i c de v e l o p m e n t t h u s e n s u r i n g t h e v i t a l i t y a n d su s t a i n a b i l i t y o f o u r c o m m u n i t i e s su s t a i n a b i l i t y o f o u r c o m m u n i t i e s 2. T o h a r n e s s t h e r e g i o n ’ s p o t e n t i a l a n d b e c o m e a r u r a l e c o n o m i c p o w e r h o u s e i n O n t a r i o a n d Ca n a d a 3. T o e s t a b l i s h S C O R a s a s t r a t e g i c , i n t e g r a t e d an d g l o b a l l y c o m p e t i t i v e e c o n o m i c r e g i o n 42 5 Vi s i o n In 2 0 2 0 , S C O R h a s a s u s t a i n a b l e , p r o s p e r o u s an d d i v e r s e e c o n o m y d r i v e n b y i n n o v a t i o n . an d d i v e r s e e c o n o m y d r i v e n b y i n n o v a t i o n . Ou r b o u n t i f u l l a n d , e n t e r p r i s i n g p e o p l e a n d dy n a m i c c o m m u n i t i e s a r e t h e f o u n d a t i o n f o r o u r su c c e s s . 42 6 7 S t r a t e g i c D i r e c t i o n s • A g r i b u s i n e s s & F o o d I n d u s t r y – C a p t u r e & r e t a i n v a l u e f r o m f i e l d t o c o n s u m e r th r o u g h i n n o v a t i o n , c o m m e r c i a l i z a t i o n a n d v a l u e th r o u g h i n n o v a t i o n , c o m m e r c i a l i z a t i o n a n d v a l u e ad d e d p r o c e s s i n g – E x p a n d i n t o n e w a n d g r o w i n g m a r k e t s r e l a t e d t o hu m a n h e a l t h , l a n d s c a p i n g a n d t h e b i o e c o n o m y • T o u r i s m – L e v e r a g e a n d m a r k e t e x i s t i n g n a t u r a l a s s e t s , au t h e n t i c s m a l l t o w n l i f e s t y l e , c u l t u r a l a s s e t s a n d ev e n t s a n d a g r i c u l t u r e / f o o d a s s e t s t o b e c o m e t h e to u r i s m d e s t i n a t i o n o f c h o i c e . 42 7 7 S t r a t e g i c D i r e c t i o n s C o n ’ t • M a n u f a c t u r i n g – A t t r a c t n e w b u s i n e s s e s a n d i n d u s t r i e s , a n d r e t a i n an d e x p a n d e x i s t i n g b u s i n e s s e s a n d i n d u s t r i e s – Se e k o u t a n d s u p p o r t d e v e l o p m e n t o f b u s i n e s s e s – Se e k o u t a n d s u p p o r t d e v e l o p m e n t o f b u s i n e s s e s an d i n d u s t r i e s o f f e r i n g i n n o v a t i v e p r o d u c t s a n d se r v i c e s t h a t a r e p a r t o f t h e n e w e c o n o m y – A c h i e v e a b a l a n c e d m a n u f a c t u r i n g s e c t o r re p r e s e n t i n g a b r o a d d i v e r s i t y o f b u s i n e s s s i z e s a n d se c t o r s • E n e r g y – B e c o m e a g l o b a l l e a d e r i n s u s t a i n a b l e e n e r g y a n d i n di v e r s e r e n e w a b l e e n e r g y p r o d u c t i o n . 42 8 7 S t r a t e g i c D i r e c t i o n s C o n ’ t • E n v i r o n m e n t – B e c o m e a r e c o g n i z e d l e a d e r i n e n v i r o n m e n t a l a n d re s o u r c e s t e w a r d s h i p . – Ex p a n d b u s i n e s s a c t i v i t y i n g r e e n s e r v i c e s , – Ex p a n d b u s i n e s s a c t i v i t y i n g r e e n s e r v i c e s , pr o c e s s e s a n d p r o d u c t s – C r e a t e a C e n t r e o f E x c e l l e n c e f o r r e s e a r c h a n d de v e l o p m e n t i n e n v i r o n m e n t a l a n d e n e r g y s o l u t i o n s 42 9 7 S t r a t e g i c D i r e c t i o n s C o n ’ t • C u l t u r e & Q u a l i t y o f L i f e – I n c r e a s e d e v e l o p m e n t o f l i f e s k i l l s a n d s k i l l s as s o c i a t e d w i t h e n t r e p r e n e u r s h i p a n d e m p l o y m e n t i n ne w e c o n o m y b u s i n e s s e s a n d j o b s ne w e c o n o m y b u s i n e s s e s a n d j o b s – I n c r e a s e r e t e n t i o n o f o u r y o u t h – S u p p o r t c r e a t i v e i n d i v i d u a l s a n d e n t e r p r i s e s , b o t h co m m e r c i a l a n d n o n p r o f i t , t h a t c o n t r i b u t e t o t h e re g i o n a l e c o n o m y b y c r e a t i n g a n d d i s t r i b u t i n g cu l t u r a l g o o d s a n d s e r v i c e s – O f f e r a h i g h q u a l i t y o f l i f e i n b o t h o u r r u r a l a n d urban co m m u n i t i e s – C e l e b r a t e o u r l o c a l c u l t u r e a n d s e n s e o f p l a c e 43 0 7 S t r a t e g i c D i r e c t i o n s C o n ’ t • P u b l i c I n f r a s t r u c t u r e – P u t i n p l a c e t h e i n f r a s t r u c t u r e - w a t e r , s e w e r , p u b l i c tr a n s p o r t a t i o n , t r a n s p o r t a t i o n a n d b r o a d b a n d co m m u n i c a t i o n s - ne e d e d t o s u p p o r t a n d g r o w o u r co m m u n i c a t i o n s - ne e d e d t o s u p p o r t a n d g r o w o u r ne w e c o n o m y – I m p l e m e n t a s u s t a i n a b l e a p p r o a c h t o d e v e l o p m e n t of r e g i o n a l l y s i g n i f i c a n t i n f r a s t r u c t u r e 43 1 Ta r g e t I n d u s t r i e s • A g r i b u s i n e s s & F o o d I n d u s t r y • T o u r i s m • Ma n u f a c t u r i n g • Ma n u f a c t u r i n g • E n e r g y • E n v i r o n m e n t • 5 o u t o f 7 s t r a t e g i c d i r e c t i o n s a r e s e c t o r a l l y ba s e d 43 2 St r u c t u r e • F o r m e d i n 2 0 0 6 a s a M a y o r ’ s R o u n d t a b l e l e d b y m ay o r s o f A y l m e r , N o r f o l k a n d T i l l s o n b u r g • R e g i s t e r e d a s a c o r p o r a t i o n i n A u g u s t 2 0 1 0 • T h e t h i r d r e g i o n a l e c o n o m i c d e v e l o p m e n t a g e n c y i n So u t h w e s t e r n O n t a r i o So u t h w e s t e r n O n t a r i o • E a c h c o u n t y p a y s a $ 5 , 0 0 0 m e m b e r s h i p f e e b a s e d on t h e s i z e o f t h e c o m m u n i t y • Go v e r n e d b y a 1 0 m e m b e r b o a r d o f d i r e c t o r s t h a t ha s t w o r e p r e s e n t a t i v e s f r o m l o c a l o r c o u n t y c o u n c i l s i n e a c h C o u n t y • A c c o u n t a b i l i t y t h r o u g h A n n u a l G e n e r a l M e e t i n g ( O c t ) wh e r e m e m b e r s a r e C o u n t y r e p r e s e n t a t i v e s a s w e l l as i n f o r m a l r e p o r t i n g t h r o u g h b o a r d o f d i r e c t o r s / s t a f f 43 3 Di r e c t o r s • M a y o r D e n n i s T r a v a l e ( N o r f o l k ) - C h a i r • M a y o r J o h n L e s s i f ( O x f o r d ) - V i c e C h a i r • Ma y o r J a c k C o u c k u y t ( E l g i n ) - Tr e a s u r e r • Ma y o r J a c k C o u c k u y t ( E l g i n ) - Tr e a s u r e r • M a y o r D o n a l d D o a n ( O x f o r d ) • M a y o r R o n E d d y ( B r a n t ) • C o u n c i l l o r D a v i d M i l l e r ( B r a n t ) • M a y o r C h u c k H a l l ( M i d d l e s e x ) • M a y o r J i m M a u d s l e y ( M i d d l e s e x ) • C o u n c i l l o r J i m O l i v e r ( N o r f o l k ) • M a y o r P a u l E n s ( E l g i n ) 43 4 Me m b e r s h i p F e e s • $ 5 , 0 0 0 p e r y e a r p e r c o u n t y f r o m 2 0 0 9 – 2 0 1 1 • A r e q u e s t f o r a n i n c r e a s e t o $ 2 5 , 0 0 0 f r o m e a c h co u n t y h a s b e e n m a d e f o r t h e 2 0 1 2 b u d g e t co u n t y h a s b e e n m a d e f o r t h e 2 0 1 2 b u d g e t ye a r • R e c e i v e d a $ 4 8 5 , 0 0 0 g r a n t f r o m S a n d P l a i n s Co m m u n i t y D e v e l o p m e n t F u n d t h a t p r o v i d e d ma j o r i t y o f o p e r a t i n g b u d g e t f r o m 2 0 1 0 t o Ma r c h 3 1 , 2 0 1 2 43 5 15 P r i o r i t i e s 1. M a i n t a i n i n g T h e C o m p e t i t i v e E d g e 2. S u p p o r t i n g E n t r e p r e n e u r s h i p 3. Ac c e s s i n g B u s i n e s s C a p i t a l 3. Ac c e s s i n g B u s i n e s s C a p i t a l 4. I n v e s t i n g i n I n f r a s t r u c t u r e 5. E x p a n d i n g R e s e a r c h , D e v e l o p m e n t & Co m m e r c i a l i z a t i o n 6. R e c o g n i z i n g Y o u t h A s I n n o v a t o r s 7. A c c e s s i n g t h e M a r k e t p l a c e 8. I m p l e m e n t i n g a R e g i o n a l C o m m u n i c a t i o n s St r a t e g y o n S k i l l s & T r a i n i n g 43 6 15 P r i o r i t i e s 9. E n h a n c i n g t h e Q u a l i t y o f L i f e o f O u r Co m m u n i t i e s 10 . Fi e l d i n g a W i n n i n g T e a m 10 . Fi e l d i n g a W i n n i n g T e a m 11 . A d v a n c i n g t h e R u r a l R o l e i n R e n e w a b l e En e r g y 12 . R e d u c i n g O u r C a r b o n F o o t p r i n t 13 . P r o t e c t i n g D r i n k i n g W a t e r 14 . M a r k e t i n g T h e m e d T o u r i n g R o u t e s 15 . D e v e l o p i n g A n A g r i - T o u r i s m S h o w c a s e 43 7 No t a b l e A c h i e v e m e n t s • L a u n c h o f S C O R B u s i n e s s P o r t a l ( A p r 2 0 1 1 ) • M a i n t a i n i n g t h e c o m p e t i t i v e e d g e • A c c e s s t o M a r k e t S t u d y • St r a t e g i c A l l i a n c e s w i t h : • St r a t e g i c A l l i a n c e s w i t h : – O M A F R A , A A F C , E r i e I n n o v a t i o n & C o m m e r c i a l i z a t i o n , So u t h W e s t E c o n o m i c A l l i a n c e , W o r k f o r c e P l a n n i n g & De v e l o p m e n t B o a r d s , W e s t e r n O n t a r i o W a r d e n ’ s C a u c u s 43 8 No t a b l e A c h i e v e m e n t s • W i n e T o u r ( S e p 2 0 1 1 ) • P a r t n e r s h i p o n A g r i c u l t u r e & A g r i - F o o d C a n a d a Co m m u n i t y I n f o r m a t i o n D a t a b a s e Co m m u n i t y I n f o r m a t i o n D a t a b a s e • A s s i s t b u s i n e s s e s i n i d e n t i f y i n g o t h e r s o u r c e s o f fu n d i n g • A d v o c a c y a t R u r a l O n t a r i o M u n i c i p a l A s s o c i a t i o n a n d As s o c i a t i o n o f M u n i c i p a l i t i e s o f O n t a r i o c o n f e r e n c e s – M e e t i n g s w i t h 1 5 m i n i s t e r s • D e t a i l e d i n p u t i n t o O n t a r i o P r o v i n c i a l P o l i cy st at e m e n t s • M e e t i n g s w i t h 5 M P P s a n d 4 M P s 43 9 Bu d g e t Ca t e g o r y 20 1 1 20 1 2 ( P r o p o s e d ) Re v e n u e -C a r r y o v e r f r o m Co m m i t t e e t o C o r p -C a r r y o v e r - S a n d Pl a i n s -Sa n d P l a i n s C D F $ 6 0 , 4 3 5 . 9 0 $ 7 4 , 1 4 3 . 0 9 $2 2 5 , 2 4 7 . 0 1 $ 7 3 , 0 0 0 -Sa n d P l a i n s C D F -S h a r e h o l d e r L e v y -I n t e r e s t -R u r a l S e c r e t a r i a t / C D P $2 2 5 , 2 4 7 . 0 1 $ 2 5 , 0 0 0 . 0 0 $ 0 $ 7 3 , 0 0 0 $1 2 5 , 0 0 0 $ 5 0 0 $ 5 0 , 0 0 0 TO T A L $ 3 8 4 , 8 2 6 . 0 0 $ 2 4 8 , 5 0 0 Ex p e n d i t u r e s -S t a f f i n g -P r o j e c t -B o a r d E x p e n s e -G e n e r a l E x p e n s e $1 4 2 , 1 2 6 . 0 0 $1 7 3 , 2 0 0 . 0 0 $ 1 7 , 0 0 0 . 0 0 $ 5 2 , 5 0 0 . 0 0 $1 4 6 , 5 0 0 $ 9 , 0 0 0 $ 9 3 , 0 0 0 TO T A L $ 3 8 4 , 8 2 6 . 0 0 $ 2 4 8 , 5 0 0 44 0 Su c c e s s e s • R e g i o n a l s u p p o r t f o r t h e c r e a t i n g o f “ a r u r a l po w e r h o u s e ” • In c r e a s e d a w a r e n e s s a n d s u p p o r t o f t h e • In c r e a s e d a w a r e n e s s a n d s u p p o r t o f t h e re g i o n f r o m s e n i o r l e v e l s o f g o v e r n m e n t • T h r o u g h S a n d P l a i n s C o m m u n i t y De v e l o p m e n t F u n d i n g i n f l u e n c e d 6 3 l o a n s t o bu s i n e s s v a l u e d a t o v e r $ 1 0 M w i t h m a t c h i n g fu n d s o f $ 2 5 M f o r a t o t a l i n v e s t m e n t o f $ 3 5 M in r e g i o n w i t h 6 3 1 j o b s a n d n e w s a l e s re v e n u e o f o v e r $ 3 4 M 44 1 Su m m a r y SC O R S O M A S W E A Pr i m a r y F o c u s Ca p a c i t y b u i l d i n g & s e c u r i n g f u n d s fo r i n f r a s t r u c t u r e In v e s t m e n t at t r a c t i o n t h r o u g h le a d g e n e r a t i o n Re g i o n a l ec o n o m i c co o p e r a t i o n Es t a b l i s h e d 20 1 0 2 0 0 1 2 0 0 7 In c o r p o r a t e d Ye s Y e s Y e s Go v e r n e d Po l i t i c a l l y Bu r e a u c r a t i c a l l y Co m b i n a t i o n Go v e r n e d Po l i t i c a l l y Bu r e a u c r a t i c a l l y Co m b i n a t i o n St a f f Tw o 0 O n e 20 1 2 B u d g e t $2 4 8 , 5 0 0 1 5 1 , 0 0 0 $ 1 5 5 , 4 0 0 Me m b e r s h i p F e e $2 5 , 0 0 0 $ 2 0 , 0 0 0 $ 1 0 , 0 0 0 Ti l l s o n b u r g Me m b e r s h i p F e e 0 $ 2 0 , 0 0 0 0 Pe r D i e m s Re i m b u r s e m e n t No Y e s , u p t o $ 3 0 0 pe r d a y No 20 1 0 L e a d s 0 4 0 0 44 2 Su m m a r y • S C O R - G r a s s r o o t s c o m m u n i t y d e v e l o p m e n t e f f o r t s f o c used on cr e a t i n g a r u r a l e c o n o m i c p o w e r h o u s e a n d w h o s e e f f o rt s a r e fo u n d a t i o n a l f o r e c o n o m i c d e v e l o p m e n t a n d g r o w t h . • S O M A - L o c a l g o v e r n m e n t f o r e i g n d i r e c t i n v e s t m e n t a tt r a c t i o n co r p o r a t i o n f o c u s e d l a r g e l y o n e x p l o r i n g n e w m a r k e t s a n d op p o r t u n i t i e s f o r a t t r a c t i n g f o r e i g n i n v e s t m e n t a n d w h o s e e f f o r t s ar e k e y t o w i n n i n g t h a t i n v e s t m e n t . • S W E A - R e g i o n a l g o v e r n m e n t i n i t i a t i v e f o c u s e d o n i n te r - r e g i o n a l is s u e s r e l a t i n g t o t h e t r a n s p o r t a t i o n o f g o o d s a n d se r v i c e s a n d id e n t i f y i n g o p p o r t u n i t i e s t o l e v e r a g e S o u t h e r n O n t a ri o ' s p o s i t i o n on a m a j o r t r a d e c o r r i d o r i n t o m a j o r i n v e s t m e n t s i n in f r a s t r u c t u r e , w h i c h w o u l d b e a c c o m p a n i e d b y i n c r e as e d pr i v a t e s e c t o r i n v e s t m e n t . Ne w f o c u s o n i n v e s t m e n t a t t r a c t i o n . 44 3 Su m m a r y - C o m m i t t e d R e s o u r c e s SC O R SO M A SW E A Me e t i n g s 1 h r / m o n t h 4 h r s / m o n t h < 1 h r / m o n t h Ta s k s 2 h r / m o n t h 1 h r / m o n t h < 1 h r / m o n t h Tr a d e Tr a d e Sh o w s / C o n f 0 1 0 h r s / m o n t h 7 h r s / y e a r To t a l 3 h r s / m o n t h 1 5 h r s / m o n t h 9 h r s / y e a r 44 4 Bu s i n e s s Co m m u n i t y Re v i t a l i z a t i o n Human Capital/ Pl a n n i n g & I n f r a s t r u c t u r e De v e l o p m e n t Re g i o n a l In i t i a t i v e s Sp e c t r u m o f E c o n o m i c D e v e l o p m e n t A c t i v i t i e s Bu s i n e s s De v e l o p m e n t Human Capital/ Wo r k f o r c e D e v e l o p m e n t In v e s t m e n t At t r a c t i o n Ma r k e t i n g & Co m m u n i c a t i o n s Re s e a r c h & I n f o . Ma n a g e m e n t Fo c u s e d S e c t o r De v e l o p m e n t Mi s c . Ac t i v i t i e s So u r c e : O M A F R A 2 0 1 0 , C E D 1 0 1 S e r i e s 44 5 Wh e r e d o w e w a n t t o g o ? Hi g h C o n t r o l Ho t S p o t •Co n v e r g e n c e o f p l a n n i n g t o m e e t kn o w l e d g e b a s e d b u s i n e s s g r o w t h n e e d s Ea s y b u t … •Es t a b l i s h b r a n d a n d s u p p o r t wi t h m a r k e t i n g i n i t i a t i v e High Impact Lo w Im p a c t Wa s t e o f Ti m e Di f f i c u l t bu t Ne c e s s a r y •St r a t e g i c i n f r a s t r u c t u r e i n v e s t m e n t •Bu s i n e s s c o m m i t m e n t t o V i s i o n a n d Di r e c t i o n s •Pa r t n e r m e e t i n g s w i t h o u t l e a d e r s h i p an d r e s o u r c e c o m m i t m e n t s •En g a g e k e y s t a k e h o l d e r s – b r i n g in t o t h e g r o w t h e q u a t i o n ( i n c r e a s e co n t r o l ) 44 6 Ec o n o m i c D e v e l o p m e n t • R e s p o n s i b i l i t i e s i n c l u d e : – B u s i n e s s A t t r a c t i o n – Bu s i n e s s R e t e n t i o n – Bu s i n e s s R e t e n t i o n – S u p p o r t i n g E n t r e p r e n e u r s h i p – T i l l s o n b u r g R E G I O N A L A i r p o r t – T o u r i s m T i l l s o n b u r g • W i d e r a n g e o f a c t i v i t i e s • C o m p e t i t i v e p o s i t i o n i n g 44 7 Ho w d o w e a c c o m p l i s h t h i s ? • L o c a l – E c o n o m i c D e v e l o p m e n t O f f i c e a s a c h a m p i o n – I n c r e a s e C o l l a b o r a t i o n – In c r e a s e C a p a c i t y – In c r e a s e C a p a c i t y – I m p r o v e m a r k e t i n g & b r a n d • R e g i o n a l – S o u t h C e n t r a l O n t a r i o R e g i o n – I n f o r m a l n e t w o r k s • N a t i o n a l / I n t e r n a t i o n a l – S o u t h w e s t e r n O n t a r i o M a r k e t i n g A l l i a n c e – S o u t h W e s t E c o n o m i c A l l i a n c e 44 8 Re c e n t I n v e s t m e n t s Co m p a n y De t a i l s Co m m e n t s Si e m e n s C a n a d a L t d 2 5 3 , 0 0 0 S F w i n d b l a d e m f g fa c i l i t y w i t h u p t o 3 0 0 em p l o y e e s Ma r t i n r e a I n t e r n a t i o n a l 7 0 , 0 0 0 S F w i t h 3 0 e m p l o y e e s E m p l o y m e n t h a s i n c r e a s e d Fu t u r e T r a n s f e r C o m p a n y 3 0 0 , 0 0 0 S F s e e d p r o c e s s i n g , wa r e h o u s i n g & d i s t r i b u t i o n $2 M i n v e s t m e n t . M o n s a n t o co n t r a c t . R e s u l t e d i n wa r e h o u s i n g & d i s t r i b u t i o n co n t r a c t . R e s u l t e d i n Mo n s a n t o r e l o c a t i n g f i e l d of f i c e h e r e Eb e r h a r d H a r d w a r e 3 0 , 0 0 0 S F f o r h i g h t e c h m f g E x p a n s i o n Na u t i c a l L a n d s G r o u p (H a r v e s t R e t i r e m e n t Co m m u n i t y ) 7 P h a s e r e t i r e m e n t co m m u n i t y w i t h o v e r 3 0 em p l o y e e s Up t o $ 4 5 M i n v e s t m e n t Lo n g P o i n t R e g i o n Co n s e r v a t i o n A u t h o r i t y 10 , 0 0 0 s q u a r e f e e t w i t h 2 0 fu l l - t i m e a n d u p t o 5 0 se a s o n a l e m p l o y e e s Pu r c h a s e d 1 2 , 0 0 0 s q u a r e fo o t b u i l d i n g Ho m e H a r d w a r e N e w 2 2 , 0 0 0 s q u a r e f o o t s t o r e $ 2 . 2 M i n v e s t m e n t 44 9 Ne w B u s i n e s s e s – E x a m p l e f r o m 2 0 0 9 Ca t e g o r y N u m b e r o f B u s i n e s s e s C o m m e n t s St a r t u p s 2 0 I n c l u d e s M i l l T a l e s I n n , Fo o D e l i c i o u s ( F o o d wh o l e s a l e r ) , e t c . Ne w F r a n c h i s e s / B r a n c h e s 1 0 I n c l u d e s A r d e n e ’ s , T i l l s o n burg La s e r C l i n i c , O x f o r d P l u m b i n g , No r m a J e a n ’ s , e t c . Ex p a n s i o n s 6 I n c l u d e s O P P T r a i n i n g C e n t r e , Ox f o r d C o u n t y E m e r g e n c y Me d i c a l S e r v i c e s S t a t i o n , Se r v i c e M a s t e r , A n a s t a c i a ' s , Br e w M a s t e r , H o m e H a r d w a r e 45 0 De c i s i o n M a t r i x - S O M A 1. D o e s T i l l s o n b u r g w a n t t o a t t r a c t f o r e i g n d i r e c t i o n i n v e s t m e n t ? 2. I f y e s , h o w i s t h e b e s t w a y t o d o t h i s ? 3. I s t h e S O M A m o d e l c o s t e f f e c t i v e ? 4. Mo r e i m p o r t a n t l y , d o e s t h e S O M A m o d e l g e t r e s u l t s ? 4. Mo r e i m p o r t a n t l y , d o e s t h e S O M A m o d e l g e t r e s u l t s ? 5. H o w d o e s o n e d e f i n e r e s u l t s ? 6. C a n w e d o m o r e o n o u r o w n ? 7. H o w w i l l t h i s c o s t i n t e r m s o f m a r k e t i n g c o l l a t e r a l / b o o t h s , t r a d e sh o w / t r a v e l c o s t s , a d d i t i o n a l s t a f f r e s o u r c e s ? 8. H o w i m p o r t a n t i s i t t o b e p a r t o f a r e g i o n i n t e r m s o f re p r e s e n t i n g y o u r c o m m u n i t y i n t e r n a t i o n a l l y ? 9. H o w d o e s S O M A c o m p a r e t o o t h e r r e g i o n a l e f f o r t s l i k e t h e On t a r i o C l e a n T e c h A l l i a n c e , O n t a r i o ’ s F o o d C o r r i d o r , e t c ? 45 1 De c i s i o n M a t r i x – S W E A 1. W h i c h o f T i l l s o n b u r g ’ s n e e d i s g r e a t e s t ? – A d v o c a c y / l o b b y i n g – R e g i o n a l i n f r a s t r u c t u r e – Fo r e i g n D i r e c t i o n I n v e s t m e n t ( F D I ) – Fo r e i g n D i r e c t i o n I n v e s t m e n t ( F D I ) 2. I s S W E A t h e m o s t e f f e c t i v e F D I v e h i c l e ? 3. I s t h e i r F D I m o d e l c o s t e f f e c t i v e ? 4. D o e s S W E A h a v e a g o o d e n o u g h t r a c k r e c o r d w i t h r e s p e c t t o FD I i n i t i a t i v e s y e t ? 5. W i l l T i l l s o n b u r g r e c e i v e g r e a t e r b e n e f i t s f r o m S W E A o r S O M A FD I e f f o r t s o r b o t h ? 6. H o w m u c h w i l l t h i s c o s t i n t e r m s o f m a r k e t i n g c o l l a t e r a l / b o o t h s , tr a d e s h o w / t r a v e l c o s t s , a d d i t i o n a l s t a f f r e s o u r c e s ? 45 2 De c i s i o n M a t r i x - S C O R • I s e c o n o m i c d e v e l o p m e n t c a p a c i t y b e i n g b u i l t in t h e r e g i o n a n d i n T i l l s o n b u r g ? • Ar e w e r e a c h i n g o u r g o a l o f b e c o m i n g a r u r a l • Ar e w e r e a c h i n g o u r g o a l o f b e c o m i n g a r u r a l ec o n o m i c p o w e r h o u s e ? • A r e r e g i o n a l i n f r a s t r u c t u r e c o m m i t m e n t s ha p p e n i n g ? 45 3 Re c o m m e n d a t i o n • T h a t t h e T o w n o f T i l l s o n b u r g c o n t i n u e t o b e e n g a g e d wi t h t h e t h r e e m a j o r r e g i o n a l e c o n o m i c d e v e l o p m e n t gr o u p s i n S o u t h w e s t e r n O n t a r i o w i t h a f o c u s o n u s i n g ea c h s p e c i f i c g r o u p a s f o l l o w s : ea c h s p e c i f i c g r o u p a s f o l l o w s : – S C O R – C o m m u n i t y e c o n o m i c d e v e l o p m e n t e f f o r t s t o b u i l d ca p a c i t y a n d t h e l o c a l i n f r a s t r u c t u r e n e e d e d f o r l o n g t e r m gr o w t h – S O M A – F o r e i g n d i r e c t i n v e s t m e n t a t t r a c t i o n – S W E A – A d v o c a c y a n d l a r g e r r e g i o n a l i n f r a s t r u c t u r e in i t i a t i v e s w i t h p a r t i c i p a t i o n i n s p e c i f i c F D I i n i t i a t i v e s t h a t a r e be n e f i c i a l t o T i l l s o n b u r g 45 4 • O n e c a v e a t … T h a t S O M A s e e k t o i n c r e a s e t h e i r en g a g e m e n t w i t h o t h e r r e g i o n a l e c o n o m i c de v e l o p m e n t g r o u p s w h e r e m u t u a l l y b e n e f i c i a l de v e l o p m e n t g r o u p s w h e r e m u t u a l l y b e n e f i c i a l 45 5 Q & A 45 6 THE CORPORATION OF THE TOWN OF TILLSONBURG BY-LAW NUMBER 3871 BEING A BY-LAW to confirm the proceedings of Council at its meetings held on the 22nd day of January, 2015 WHEREAS Section 5 (1) of the Municipal Act, 2001, as amended, provides that the powers of a municipal corporation shall be exercised by its council; AND WHEREAS Section 5 (3) of the Municipal Act, 2001, as amended, provides that municipal powers shall be exercised by by-law; AND WHEREAS it is deemed expedient that the proceedings of the Council of the Town of Tillsonburg at this meeting be confirmed and adopted by by-law; NOW THEREFORE THE MUNICIPAL COUNCIL OF THE CORPORATION OF THE TOWN OF TILLSONBURG ENACTS AS FOLLOWS: 1.All actions of the Council of The Corporation of the Town of Tillsonburg at its special meeting and regular meeting held on January 22, 2015, with respect to every report, motion, by-law, or other action passed and taken by the Council, including the exercise of natural person powers, are hereby adopted, ratified and confirmed as if all such proceedings were expressly embodied in this or a separate by-law. 2.The Mayor and Clerk are authorized and directed to do all the things necessary to give effect to the action of the Council of The Corporation of the Town of Tillsonburg referred to in the preceding section. 3.The Mayor and the Clerk are authorized and directed to execute all documents necessary in that behalf and to affix thereto the seal of The Corporation of the Town of Tillsonburg. 4.This by-law shall come into full force and effect on the day of passing. READ A FIRST AND SECOND TIME THIS 22ND DAY OF JANUARY, 2015. READ A THIRD AND FINAL TIME AND PASSED THIS 22ND DAY OF JANUARY, 2015. ________________________________ Mayor – Stephen Molnar ________________________________ Municipal Clerk – Donna Wilson 457