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Town of Tillsonburg Asset Management Plan 2025 ASSET MANAGEMENT PLAN Town of Tillsonburg June 2025 2 Document Control Asset Management Plan Document ID : Rev No Date Revision Details Author Reviewer Approver 1.0 March 2025 Original Tracy Hird 2.0 April 2025 Updates from all Asset Managers Tracy Hird 3.0 May 12, 2025 Addition of Customer Satisfaction feedback Tracy Hird 3.5 May 26, 2025 Integration of lifecycle data, demand forecasts, risk forecasts Tracy Hird RP RP 4.0 May 27, 2025 Executive Summary, Plan Improvement and Financial Summary edits Renato Pullia 5.0 June 16, 2025 Final version presented to Council Renato Pullia KP KP The structure and content of this document is aligned to the International Infrastructure Management Manual (IIMM) and the ISO 550xx and 31000 series of standards. This document is based on a template developed by the Institute of Public Works Engineering Australasia (IPWEA), for which the IPWEA takes no responsibility for the end product. This Asset Management Plan has been prepared in line with the Town of Tillsonburg’s Strategic Asset Management Policy and 2025 10-year Capital Plan forecast, and will be used to inform a future Long-Term Financial Plan. © Copyright 2023 – All rights reserved The Institute of Public Works Engineering Australasia 3 Contents 1.0 EXECUTIVE SUMMARY 14 1.1 The Purpose of the Plan .............................................................................................................. 14 1.2 Asset Classes .............................................................................................................................. 14 1.3 Levels of Service .......................................................................................................................... 15 1.4 Future Demand ............................................................................................................................ 16 1.5 Lifecycle Management Plan ....................................................................................................... 18 1.6 Financial Summary ...................................................................................................................... 18 1.7 Asset Management Practices .................................................................................................... 20 1.8 Monitoring and Improvement Program ...................................................................................... 21 2.0 INTRODUCTION 23 2.1 Background .................................................................................................................................. 23 2.2 Goals and Objectives of Asset Ownership ................................................................................. 27 2.3 Strategic and Corporate Goals ................................................................................................... 29 2.4 Legislative Requirements ............................................................................................................ 29 2.5 O. Reg. 588/17 Compliance Review ........................................................................................... 31 3.0 ROAD NETWORK 33 3.1 Asset Categories/Description .................................................................................................... 33 3.2 Strategic and Corporate Goals ................................................................................................... 33 3.3 Legislative Requirements ............................................................................................................ 34 3.4 Lifecycle Management Summary ............................................................................................... 34 3.4.1 What does it Cost? ............................................................................................................................... 34 3.4.2 What we will do .................................................................................................................................... 35 3.4.3 What we cannot do .............................................................................................................................. 35 3.5 Risk Management ........................................................................................................................ 35 3.6 Financial Summary ...................................................................................................................... 36 3.7 Monitoring and Improvement Program ...................................................................................... 36 3.8 Levels of Service .......................................................................................................................... 36 3.8.1 Customer Research and Expectations ....................................................................................... 37 3.8.2 Customer Values ......................................................................................................................... 37 3.8.3 Customer Levels of Service ........................................................................................................ 39 3.8.4 Technical Levels of Service ................................................................................................................. 40 3.9 Future Demand ............................................................................................................................ 42 3.9.1 Demand Drivers ................................................................................................................................... 42 3.9.2 Demand Forecasts .............................................................................................................................. 42 3.9.3 Impacts and Demand Management Plan........................................................................................... 42 4 3.9.4 Asset Programs to meet Demand ...................................................................................................... 43 3.9.5 Climate Change Adaptation ................................................................................................................ 43 3.10 Lifecycle Management Plan ....................................................................................................... 44 3.10.1 Background Data ......................................................................................................................... 45 3.10.2 Asset capacity and performance ............................................................................................... 46 3.10.3 Asset condition ............................................................................................................................ 47 3.11 Operations and Maintenance Plan ............................................................................................. 47 3.11.1 Asset hierarchy .................................................................................................................................... 48 3.11.2 Summary of forecast operations and maintenance costs ............................................................... 48 3.12 Renewal Plan ............................................................................................................................... 49 3.12.1 Renewal ranking criteria .............................................................................................................. 49 3.12.2 Summary of future renewal costs .............................................................................................. 50 3.13 Acquisition Plan ........................................................................................................................... 50 3.13.1 Selection criteria .......................................................................................................................... 50 3.13.2 Summary of future asset acquisition costs ............................................................................... 51 3.14 Disposal Plan ............................................................................................................................... 52 3.15 Summary of asset forecast costs .............................................................................................. 52 3.16 Risk Management Planning ........................................................................................................ 53 3.16.1 Critical Assets ..................................................................................................................................... 53 3.16.2 Risk Assessment ................................................................................................................................. 54 3.16.3 Infrastructure Resilience Approach ................................................................................................... 55 3.16.4 Service and Risk Trade-Offs ....................................................................................................... 56 4.0 BRIDGES & CULVERTS 57 4.1 Asset Categories/Description .................................................................................................... 57 4.2 Strategic and Corporate Goals ................................................................................................... 57 4.3 Legislative Requirements ............................................................................................................ 58 4.4 Lifecycle Management Summary ............................................................................................... 58 4.4.1 What does it Cost? .............................................................................................................................. 58 4.4.2 What we will do .................................................................................................................................... 58 4.5 Risk Management ........................................................................................................................ 59 4.6 Financial Summary ...................................................................................................................... 59 4.7 Monitoring and Improvement Program ...................................................................................... 60 4.8 Levels of Service .......................................................................................................................... 60 4.8.1 Customer Research and Expectations ............................................................................................... 60 4.8.2 Customer Values ................................................................................................................................. 61 4.8.3 Customer Levels of Service ................................................................................................................ 61 4.8.4 Technical Levels of Service ................................................................................................................ 62 4.9 Future Demand ............................................................................................................................ 64 5 4.9.1 Demand Drivers ................................................................................................................................... 64 4.9.2 Demand Forecasts .............................................................................................................................. 64 4.9.3 Impacts and Demand Management Plan........................................................................................... 64 4.9.4 Asset Programs to meet Demand ...................................................................................................... 65 4.9.5 Climate Change Adaptation ................................................................................................................ 65 4.10 Lifecycle Management Plan ....................................................................................................... 67 4.10.1 Background Data ................................................................................................................................. 67 4.10.2 Asset capacity and performance ........................................................................................................ 68 4.10.3 Asset Condition ................................................................................................................................... 69 4.11 Operations and Maintenance Plan ............................................................................................. 69 4.11.1 Asset hierarchy .................................................................................................................................... 70 4.11.2 Summary of forecast operations and maintenance costs ............................................................... 70 4.12 Renewal Plan ............................................................................................................................... 71 4.12.1 Renewal ranking criteria ..................................................................................................................... 71 4.12.2 Summary of future renewal costs ...................................................................................................... 72 4.13 Acquisition Plan ........................................................................................................................... 72 4.13.1 Selection criteria ................................................................................................................................. 72 4.13.2 Summary of future asset acquisition costs ...................................................................................... 73 4.14 Disposal Plan ............................................................................................................................... 73 4.15 Summary of asset forecast costs .............................................................................................. 73 4.16 Risk Management Planning ........................................................................................................ 74 4.16.1 Critical Assets ..................................................................................................................................... 74 4.16.2 Risk Assessment ................................................................................................................................. 75 4.16.3 Infrastructure Resilience Approach ................................................................................................... 76 4.16.4 Service and Risk Trade-Offs .............................................................................................................. 76 5.0 STORMWATER NETWORK 77 5.1 Asset Categories/Description .................................................................................................... 77 5.2 Strategic and Corporate Goals ................................................................................................... 77 5.3 Legislative Requirements ............................................................................................................ 77 5.4 Lifecycle Management Summary ............................................................................................... 78 5.4.1 What does it Cost? .............................................................................................................................. 78 5.4.2 What we will do .................................................................................................................................... 78 5.4.3 What we cannot do .............................................................................................................................. 79 5.5 Risk Management ........................................................................................................................ 79 5.6 Financial Summary ...................................................................................................................... 79 5.7 Monitoring and Improvement Program ...................................................................................... 79 5.8 Levels of Service .......................................................................................................................... 79 6 5.8.1 Customer Research and Expectations ............................................................................................... 80 5.8.2 Customer Values ................................................................................................................................. 80 5.8.3 Customer Levels of Service ................................................................................................................ 81 5.8.4 Technical Levels of Service ................................................................................................................ 82 5.9 Future Demand ............................................................................................................................ 83 5.9.1 Demand Drivers ................................................................................................................................... 83 5.9.2 Demand Forecasts .............................................................................................................................. 83 5.9.3 Impacts and Demand Management Plan........................................................................................... 83 5.9.4 Asset Programs to meet Demand ...................................................................................................... 84 5.9.5 Climate Change Adaptation ................................................................................................................ 84 5.10 Lifecycle Management Plan ....................................................................................................... 85 5.10.1 Background Data ................................................................................................................................. 86 5.10.2 Asset capacity and performance ....................................................................................................... 87 5.10.3 Asset condition .................................................................................................................................... 87 5.11 Operations and Maintenance Plan ............................................................................................. 87 5.11.1 Asset hierarchy .................................................................................................................................... 88 5.11.2 Summary of forecast operations and maintenance costs ............................................................... 88 5.12 Renewal Plan ............................................................................................................................... 89 5.12.1 Renewal ranking criteria ..................................................................................................................... 89 5.12.2 Summary of future renewal costs ...................................................................................................... 90 5.13 Acquisition Plan ........................................................................................................................... 90 5.13.1 Selection criteria ................................................................................................................................. 90 5.13.2 Summary of future asset acquisition costs ...................................................................................... 91 5.14 Disposal Plan ............................................................................................................................... 92 5.15 Summary of asset forecast costs .............................................................................................. 92 5.16 Risk Management Planning ........................................................................................................ 93 5.16.1 Critical Assets ..................................................................................................................................... 93 5.16.2 Risk Assessment ................................................................................................................................. 93 5.16.3 Infrastructure Resilience Approach ................................................................................................... 95 5.16.4 Service and Risk Trade-Offs .............................................................................................................. 95 6.0 FACILITIES 97 6.1 Asset Categories/Description .................................................................................................... 97 6.2 Strategic and Corporate Goals ................................................................................................... 97 6.3 Legislative Requirements ............................................................................................................ 98 6.4 Lifecycle Management Summary ............................................................................................... 99 6.4.1 What does it Cost? .............................................................................................................................. 99 6.4.2 What we will do .................................................................................................................................... 99 7 6.4.3 What we cannot do ............................................................................................................................100 6.5 Risk Management ...................................................................................................................... 100 6.6 Financial Summary .................................................................................................................... 100 6.7 Monitoring and Improvement Program .................................................................................... 100 6.8 Levels of Service ........................................................................................................................ 101 6.8.1 Customer Research and Expectations .............................................................................................101 6.8.2 Customer Values ...............................................................................................................................101 6.8.3 Customer Levels of Service ..............................................................................................................102 6.8.4 Technical Levels of Service ..............................................................................................................103 6.9 Future Demand .......................................................................................................................... 105 6.9.1 Demand Drivers .................................................................................................................................105 6.9.2 Demand Forecasts ............................................................................................................................105 6.9.3 Impacts and Demand Management Plan.........................................................................................105 6.9.4 Asset Programs to meet Demand ....................................................................................................106 6.9.5 Climate Change Adaptation ..............................................................................................................106 6.10 Lifecycle Management Plan ..................................................................................................... 108 6.10.1 Background Data ...............................................................................................................................109 6.10.2 Asset capacity and performance .....................................................................................................110 6.10.3 Asset condition ..................................................................................................................................110 6.11 Operations and Maintenance Plan ........................................................................................... 111 6.11.1 Asset hierarchy ..................................................................................................................................112 6.11.2 Summary of forecast operations and maintenance costs .............................................................112 6.12 Renewal Plan ............................................................................................................................. 113 6.12.1 Renewal ranking criteria ...................................................................................................................113 6.12.2 Summary of future renewal costs ....................................................................................................114 6.13 Acquisition Plan ......................................................................................................................... 115 6.13.1 Selection criteria ...............................................................................................................................115 6.13.2 Summary of future asset acquisition costs ....................................................................................115 6.14 Disposal Plan ............................................................................................................................. 117 6.15 Summary of asset forecast costs ............................................................................................ 117 6.16 Risk Management Planning ...................................................................................................... 118 6.16.1 Critical Assets ...................................................................................................................................118 6.16.2 Risk Assessment ...............................................................................................................................118 6.16.3 Infrastructure Resilience Approach .................................................................................................120 6.16.4 Service and Risk Trade-Offs ............................................................................................................120 7.0 FLEET & FLEET EQUIPMENT 122 7.1 Asset Categories/Description .................................................................................................. 122 8 7.2 Strategic and Corporate Goals ................................................................................................. 122 7.3 Legislative Requirements .......................................................................................................... 123 7.4 Lifecycle Management Summary ............................................................................................. 123 7.4.1 What does it Cost? ............................................................................................................................123 7.4.2 What we will do ..................................................................................................................................123 7.4.3 What we cannot do ............................................................................................................................124 7.5 Risk Management ...................................................................................................................... 124 7.6 Financial Summary .................................................................................................................... 125 7.7 Monitoring and Improvement Program .................................................................................... 125 7.8 Levels of Service ........................................................................................................................ 125 7.8.1 Customer Research and Expectations .............................................................................................125 7.8.2 Customer Values ...............................................................................................................................126 7.8.3 Customer Levels of Service ..............................................................................................................127 7.8.4 Technical Levels of Service ..............................................................................................................128 7.9 Future Demand .......................................................................................................................... 129 7.9.1 Demand Drivers .................................................................................................................................129 7.9.2 Demand Forecasts ............................................................................................................................129 7.9.3 Impacts and Demand Management Plan.........................................................................................130 7.9.4 Asset Programs to meet Demand ....................................................................................................131 7.9.5 Climate Change Adaptation ..............................................................................................................131 7.10 Lifecycle Management Plan ..................................................................................................... 132 7.10.1 Background Data ...............................................................................................................................133 7.10.2 Asset capacity and performance ......................................................................................................134 7.10.3 Asset condition ..................................................................................................................................134 7.11 Operations and Maintenance Plan ........................................................................................... 135 7.11.1 Asset hierarchy ..................................................................................................................................136 7.11.2 Summary of forecast operations and maintenance costs .............................................................136 7.12 Renewal Plan ............................................................................................................................. 137 7.12.1 Renewal ranking criteria ...................................................................................................................137 7.12.2 Summary of future renewal costs ....................................................................................................138 7.13 Acquisition Plan ......................................................................................................................... 139 7.13.1 Selection criteria ................................................................................................................................139 7.13.2 Summary of future asset acquisition costs ....................................................................................139 7.14 Disposal Plan ............................................................................................................................. 141 7.15 Summary of asset forecast costs ............................................................................................ 141 7.16 Risk Management Planning ...................................................................................................... 142 7.16.1 Critical Assets ...................................................................................................................................142 7.16.2 Risk Assessment ...............................................................................................................................142 9 7.16.3 Infrastructure Resilience Approach .................................................................................................144 7.16.4 Service and Risk Trade-Offs ............................................................................................................144 8.0 MACHINERY & EQUIPMENT 145 8.1 Asset Categories/Descriptions................................................................................................. 145 8.2 Strategic and Corporate Goals ................................................................................................. 145 8.3 Legislative Requirements .......................................................................................................... 146 8.4 Lifecycle Management Summary ............................................................................................. 146 8.4.1 What does it Cost? ............................................................................................................................146 8.4.2 What we will do ..................................................................................................................................146 8.4.3 What we cannot do ............................................................................................................................147 8.5 Risk Management ...................................................................................................................... 147 8.6 Financial Summary .................................................................................................................... 147 8.7 Monitoring and Improvement Program .................................................................................... 147 8.8 Levels of Service ........................................................................................................................ 148 8.8.1 Customer Research and Expectations .............................................................................................148 8.8.2 Customer Values ...............................................................................................................................148 8.8.3 Customer Levels of Service ..............................................................................................................149 8.8.4 Technical Levels of Service ..............................................................................................................151 8.9 Future Demand .......................................................................................................................... 152 8.9.1 Demand Drivers .................................................................................................................................152 8.9.2 Demand Forecasts ............................................................................................................................152 8.9.3 Impacts and Demand Management Plan.........................................................................................152 8.9.4 Asset Programs to meet Demand ....................................................................................................153 8.9.5 Climate Change Adaptation ..............................................................................................................153 8.10 Lifecycle Management Plan ..................................................................................................... 154 8.10.1 Background Data ...............................................................................................................................155 8.10.2 Asset capacity and performance .....................................................................................................156 8.10.3 Asset condition ..................................................................................................................................156 8.11 Operations and Maintenance Plan ........................................................................................... 157 8.11.1 Asset hierarchy ..................................................................................................................................158 8.11.2 Summary of forecast operations and maintenance costs .............................................................158 8.12 Renewal Plan ............................................................................................................................. 159 8.12.1 Renewal ranking criteria ...................................................................................................................159 8.12.2 Summary of future renewal costs ....................................................................................................160 8.13 Acquisition Plan ......................................................................................................................... 160 8.13.1 Selection criteria ...............................................................................................................................160 8.13.2 Summary of future asset acquisition costs ....................................................................................161 10 8.14 Disposal Plan ............................................................................................................................. 161 8.15 Summary of asset forecast costs ............................................................................................ 161 8.16 Risk Management Planning ..................................................................................................... 162 8.16.1 Critical Assets ...................................................................................................................................162 8.16.2 Risk Assessment ...............................................................................................................................163 8.16.3 Infrastructure Resilience Approach .................................................................................................164 8.16.4 Service and Risk Trade-Offs ............................................................................................................165 9.0 LAND IMPROVEMENTS 166 9.1 Asset Categories/Description .................................................................................................. 166 9.2 Strategic and Corporate Goals ................................................................................................. 166 9.3 Legislative Requirements .......................................................................................................... 167 9.4 Lifecycle Management Summary ............................................................................................. 167 9.4.1 What does it Cost? ............................................................................................................................167 9.4.2 What we will do ..................................................................................................................................167 9.4.3 What we cannot do ............................................................................................................................168 9.5 Risk Management ...................................................................................................................... 168 9.6 Financial Summary .................................................................................................................... 169 9.7 Monitoring and Improvement Program .................................................................................... 169 9.8 Levels of Service ........................................................................................................................ 169 9.8.3 Customer Research and Expectations .............................................................................................169 9.8.4 Customer Values ...............................................................................................................................170 9.8.5 Customer Levels of Service ..............................................................................................................170 9.8.6 Technical Levels of Service ..............................................................................................................172 9.9 Future Demand .......................................................................................................................... 173 9.9.1 Demand Drivers .................................................................................................................................173 9.9.2 Demand Forecasts .................................................................................................................... 173 9.9.3 Impacts and Demand Management Plan ................................................................................ 173 9.9.4 Asset Programs to meet Demand ....................................................................................................174 9.9.5 Climate Change Adaptation ..............................................................................................................174 9.10 Lifecycle Management Plan ..................................................................................................... 175 9.10.1 Background Data ...............................................................................................................................176 9.10.2 Asset capacity and performance .....................................................................................................177 9.10.3 Asset condition ..................................................................................................................................177 9.11 Operations and Maintenance Plan ........................................................................................... 178 9.11.1 Asset hierarchy ..................................................................................................................................179 9.11.2 Summary of forecast operations and maintenance costs .............................................................179 9.12 Renewal Plan ............................................................................................................................. 179 11 9.12.1 Renewal ranking criteria ...................................................................................................................180 9.12.2 Summary of future renewal costs ....................................................................................................181 9.13 Acquisition Plan ......................................................................................................................... 181 9.13.1 Selection criteria ...............................................................................................................................181 9.13.2 Summary of future asset acquisition costs ....................................................................................182 9.14 Disposal Plan ............................................................................................................................. 183 9.15 Summary of asset forecast costs ............................................................................................ 183 9.16 Risk Management Planning ...................................................................................................... 184 9.16.1 Critical Assets ...................................................................................................................................184 9.16.2 Risk Assessment ...............................................................................................................................185 9.16.3 Infrastructure Resilience Approach .................................................................................................186 9.16.4 Service and Risk Trade-Offs ............................................................................................................186 10.0 TECHNOLOGY & COMMUNICATION 188 10.1 Asset Categories/Description .................................................................................................. 188 10.2 Strategic and Corporate Goals ................................................................................................. 188 10.3 Legislative Requirements .......................................................................................................... 189 10.4 Lifecycle Management Summary ............................................................................................. 189 10.4.1 What does it Cost? ............................................................................................................................189 10.4.2 What we will do ..................................................................................................................................189 10.4.3 What we can do .................................................................................................................................190 10.5 Risk Management ...................................................................................................................... 190 10.6 Financial Summary .................................................................................................................... 190 10.7 Monitoring and Improvement Program .................................................................................... 191 10.8 Levels of Service ........................................................................................................................ 191 10.8.1 Customer Research and Expectations .............................................................................................191 10.8.2 Customer Values ...............................................................................................................................192 10.8.3 Customer Levels of Service ..............................................................................................................192 10.8.4 Technical Levels of Service ..............................................................................................................193 10.9 Future Demand .......................................................................................................................... 195 10.9.1 Demand Drivers .................................................................................................................................195 10.9.2 Demand Forecasts ............................................................................................................................195 10.9.3 Impacts and Demand Management Plan.........................................................................................195 10.9.4 Asset Programs to meet Demand ....................................................................................................196 10.9.5 Climate Change Adaptation ..............................................................................................................196 10.10 Lifecycle Management Plan ..................................................................................................... 197 10.10.1 Background Data ...............................................................................................................................198 10.10.2 Asset capacity and performance .....................................................................................................199 12 10.10.3 Asset condition ..................................................................................................................................199 10.11 Operations and Maintenance Plan ........................................................................................... 200 10.11.1 Asset hierarchy ..................................................................................................................................201 10.11.2 Summary of forecast operations and maintenance costs .............................................................201 10.12 Renewal Plan ............................................................................................................................. 202 10.12.1 Renewal ranking criteria ...................................................................................................................202 10.12.2 Summary of future renewal costs ....................................................................................................203 10.13 Acquisition Plan ......................................................................................................................... 204 10.13.1 Selection criteria ...............................................................................................................................204 10.13.2 Summary of future asset acquisition costs ....................................................................................204 10.14 Disposal Plan ............................................................................................................................. 206 10.15 Summary of asset forecast costs ............................................................................................ 206 10.16 Risk Management Planning ...................................................................................................... 206 10.16.1 Critical Assets ...................................................................................................................................207 10.16.2 Risk Assessment ...............................................................................................................................207 10.16.3 Infrastructure Resilience Approach .................................................................................................209 10.16.4 Service and Risk Trade-Offs ............................................................................................................209 11.0 FINANCIAL SUMMARY 211 11.1 Financial Statements and Projections ..................................................................................... 211 11.1.1 Asset valuations ................................................................................................................................211 11.1.2 Sustainability of service delivery .....................................................................................................211 11.1.3 Asset Renewal Funding Ratio 83.85% .............................................................................................212 11.1.4 Medium term – 10-year financial planning period .........................................................................212 11.1.5 Forecast Costs (outlays) for the long-term financial plan .............................................................212 11.2 Funding Strategy........................................................................................................................ 213 11.3 Use of Debt ................................................................................................................................ 214 11.4 Valuation Forecasts .................................................................................................................. 215 11.5 Key Assumptions Made in Financial Forecasts ...................................................................... 215 11.6 Forecast Reliability and Confidence ......................................................................................... 216 12.0 PLAN IMPROVEMENT AND MONITORING 218 12.1 Status of Asset Management Practices .................................................................................. 218 12.1.1 Accounting and financial data sources ...........................................................................................218 12.1.2 Asset management data sources ....................................................................................................218 12.2 Improvement Plan ..................................................................................................................... 218 12.3 Monitoring and Review Procedures ......................................................................................... 219 12.4 Performance Measures............................................................................................................. 219 13 13.0 REFERENCES 220 14.0 APPENDICES 221 Appendix A Acquisition Forecast ................................................................................................... 221 Appendix B Operation Forecast ...................................................................................................... 223 Appendix C Maintenance Forecast ................................................................................................ 224 Appendix D Renewal Forecast Summary ....................................................................................... 225 Appendix E Disposal Summary ...................................................................................................... 227 Appendix F Budget Summary by Lifecycle Activity ...................................................................... 228 14 1.0 EXECUTIVE SUMMARY 1.1 The Purpose of the Plan Asset management planning is a comprehensive process ensuring delivery of services from infrastructure is financially sustainable. This Asset Management Plan (AM Plan) details information about infrastructure assets with actions required to provide an agreed level of service in the most cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required to provide over the 10-year planning period. The Asset Management Plan (AMP) will link to a Long-Term Financial Plan (LTFP) which typically considers a 10-year planning period. This plan covers the infrastructure assets that provide transportation, stormwater management, structural connectivity, operational support, technological services, public space enhancements and facility-based services to support the delivery of municipal programs and services. 1.2 Asset Classes Core and non-core infrastructure assets are represented across eight asset classes in this plan. The table below outlines the current replacement values for each asset class included in the 2025 AMP, along with a comparison to the replacement values reported in the 2024 AMP. This comparison highlights changes due to inflation, asset re-evaluation, and updates to asset inventories. Asset Class 2024 AMP Current Replacement Value (CRV)* 2025 AMP Current Replacement Value (CRV)** Road Network $157,763,035 $180,418,992 Bridges & Culverts $30,933,500 $47,751,000 Stormwater Network $57,420,013 $86,735,992 Facilities $95,060,744 $103,777,329 Fleet & Fleet Equipment $11,217,834 $17,175,416 Machinery & Equipment $1,702,541 $2,501,333 Land Improvements $6,393,350 $10,836,727 Technology & Communication $1,939,593 $2,668,758 Total $362,430,610 $451,865,547 *2024 AMP CRVs based on 2022 year-end data. **2025 AMP CRVs based on 2024 year-end data. Data validation improved over the 2024 AMP; annual indexing for construction related assets changed to the Statistics Canada Non-residential Building Construction Price Index for London, Ontario [closest CMA to Tillsonburg], such index being available from 2023 (same index as allowed under the Development Charges (DC) Act for DC rates). 15 1.3 Levels of Service The Town is currently delivering sufficient levels of service across all asset classes, as demonstrated by compliance with legislative requirements, adherence to safety standards, and generally positive feedback received from the public and internal users through recent surveys. The 2025 Asset Management Plan Survey was open to the public and its internal asset users for their input over a three (3) week period. The survey focused on the customer satisfaction levels regarding the current condition, function and capacity of the eight asset infrastructure classes. Public Survey Overall Summary Performance Measure Satisfaction Level Condition/Function/Capacity Very Satisfied Satisfied Dissatisfied Very Dissatisfied Roads Network 15% 63% 17% 5% Bridges & Culverts 18% 74% 6% 1% Stormwater Network 16% 77% 5% 3% Facilities 20% 62% 13% 6% Fleet & Fleet Equipment 14% 76% 11% 0% Machinery & Equipment 12% 64% 19% 5% Land Improvements 23% 67% 8% 3% Technology & Communications 14% 65% 14% 7% Overall Average 16% 68% 11% 4% 2025 Current Replacement Costs by Asset Class 16 To maintain current levels of service as outlined in the plan, the operational budget supports the ongoing maintenance and operation of assets, helping to ensure reliable service delivery and effective risk management. As part of the 10-year capital budget planning process, staff have prioritized projects to align with Council’s financial guidelines. This approach has helped control capital spending and maintain a balanced plan. However, with this prioritization, pressures remain—particularly in areas where asset renewal and growth needs exceed available funding. To address these pressures, staff will review and prioritize both the identified renewals and new acquisitions. While some projects may be deferred or rescheduled to align with available funding, it is important to recognize that if key projects cannot be delayed and funding is not secured, the Town may experience a decline in current levels of service over time. Looking ahead, the Town plans to establish clear levels of service benchmarks across all asset classes. These benchmarks will define the expected standard of service delivery and help guide operational decision-making. By setting measurable targets, staff will have a clearer understanding of the service levels they are expected to provide and will be better equipped to monitor and report on their performance. This will improve transparency, support long-term planning, and ensure accountability in maintaining and enhancing service delivery across the organization. Our present funding levels are insufficient to continue to provide existing services at current service levels in the medium term. The main service consequences of the Planned Budget are:  Deferred capital projects  Decline in asset condition  Increased service interruptions  Reduced service quality and reliability  Strain on staff and resources 1.4 Future Demand The main demands for new services are created by:  Population growth  Housing development growth  Commercial & industrial Growth  Economic factors  Climate change  Technology changes Strategies to manage these demands are discussed in more detail in Section 3.9 of each asset class. 17 Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2021, the enumerated population of Tillsonburg was 18,615, representing a 17.3% change from 2016. This compares to the provincial average of 5.8% and the national average of 5.2%. In 2025, population is projected at 20,849. Population is expected to increase by 5,657 over the next 10 yrs (2025-2034). There will be greater demand for coordination, enabling cross-departmental, service-focused decisions. Monitor demand for requests, plus greater public engagement for identification of shifting community priorities. Housing Development Growth In 2021, there were 8,229 private dwellings occupied in Tillsonburg, which represent a change of 15.5% from 2016. For 2025, number of private properties has grown to 8,700, and with commercial and industrial, to 9,054. 4,205 new housing units are anticipated to be built over the next 10 yrs, a 51% growth rate. Development of new subdivisions will mean assumption of new assets; enhanced coordination of infrastructure planning, as roads, water, wastewater and utilities may need to be upsized in current locations to handle increased density. Working with developers, the Town has forecasted which development will be completed in which year, allowing for the coordination of infrastructure planning relative to all services. Monitoring of development activity will allow for proactive changes should plans change. Commercial & Industrial Growth 10% of the tax base is commercial and industrial. The linear infrastructure, such as roads carrying commercial transports and industrial machinery, will be reviewed as to whether it may need to be built to higher standards. 25 new industrial lots are expected to be filled in the next 10- 15 years. Increased demand for more resilient infrastructure, i.e. building higher classification of roads, meaning higher renewal costs, higher frequency of maintenance due to heavier loads on these roads. Forecast impact of such growth to capital requirements, address funding gaps through the Long Term Financial Plan (LTFP). Climate Change Exploring how business continuity, contingency planning and resilience impact all aspects of asset management. Increased frequency and severity of weather events. Greater impact on deterioration of linear infrastructure and the need to build in resiliency in infrastructure planning. Monitor trends, plan asset lifecycle activities accordingly through a risk assessment process, increased operational funding and dedicated reserves. Table 4.3: Population source: Statistics Canada, MPAC and Watson & Associates Economists Ltd. These demands will be approached using a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand. Demand management practices may also include a combination of non-asset solutions, insuring against risks and managing failures:  Optimization of existing assets including asset re-use or repurposing, capacity enhancements and maintenance strategy improvements.  Manage growth requirements by using policies, public education and partnerships to influence service use and reduce reliance on new infrastructure.  Risk and insurance management ensuring appropriate insurance policies are in place for critical infrastructure to mitigate risk. Prepare contingency plans and strategies to maintain service levels during asset failures.  Monitor citizen demands and increase public engagement to identify shifting community priorities. 18  Work with developers, monitor development activity to proactively inform regional infrastructure planning.  Technology integration using smart infrastructure and digital service delivery to reduce reliance on physical assets. 1.5 Lifecycle Management Plan What does it Cost? The forecast lifecycle costs necessary to provide the services covered by this AM Plan includes operation, maintenance, renewal, acquisition, and disposal of assets. Although the AM Plan may be prepared for a range of time periods, it typically informs a Long-Term Financial Planning period of 10 years. Therefore, a summary output from the AM Plan is the forecast of 10-year total outlays, which for all asset classes is estimated as $261,388,960 or $26,138,896 on average per year. 1.6 Financial Summary What we will do Estimated available funding for the 10 year period is $219,166,916 or $21,916,692 on average per year as per the Long-Term Financial plan or Planned Budget. This is 83.85% of the cost to sustain the current level of service at the lowest lifecycle cost. The infrastructure reality is that only what is funded in the long-term financial plan can be provided. The Informed decision making depends on the AM Plan emphasizing the consequences of Planned Budgets on the service levels provided and risks. The anticipated Planned Budget for all asset classes leaves a shortfall of $-4,222,204 on average per year of the forecast lifecycle costs required to provide services in the AM Plan compared with the Planned Budget currently included in the Long-Term Financial Plan. This is shown in the figures below. Forecast Lifecycle Costs and Planned Budgets 19 We currently do not allocate enough budget to sustain these services at the proposed standard or to provide all new services being sought. Works and services that cannot be provided under present funding levels are:  Complete all asset renewals identified through condition assessments or replacement schedules based on asset useful lives. As a result, these renewals will be deferred and prioritized based on asset criticality, risk and service impact.  Support all new proposed facility constructions or expansions within the 10-year planning period.  Replace high valued fleet & fleet equipment assets without utilizing debentures.  If anticipated growth does not occur, new acquisition projects funded with development charge revenue will be deferred or cancelled due to lack of funding. Asset Class Annual Req't Annual Budget Difference Road Network 5,127,067$ 5,125,495$ -$ 1,572 Bridges & Culverts 1,520,815$ 1,631,940$ $ 111,125 Stormwater 749,032$ 857,363$ $ 108,331 Facilities 9,058,605$ 5,051,103$ -$ 4,007,502 Fleet & Fleet Eq.2,451,128$ 2,563,678$ $ 112,550 Machinery & Eq 256,994$ 258,567$ $ 1,573 Land Improvements 1,805,074$ 1,263,726$ -$ 541,348 Tech & Commun 1,264,656$ 1,259,294$ -$ 5,362 4,222,205-$ 20 The 2024 AMP annual funding gap was $5,682,000. This 2025 AMP indicates a contribution shortfall of $4,222,205, which would require an 18.9% tax levy increase (based on 2025 levy of $22.2M) to address in one year or 1% per year for 17 years (assuming a 3% annual increase to the total levy). Managing the Risks Our present budget levels are insufficient to continue to manage risks in the medium term. The main risk consequences are:  Asset failures and service disruptions  Higher long-term costs  Increased liability exposure  Regulatory non-compliance We will endeavor to manage these risks within available funding by:  Performing condition assessments more frequently on all infrastructure.  Prioritize critical assets based on condition, risk and impact on safety and service delivery.  Focus on preventative maintenance and lifecycle strategies to extend useful life of assets and reduce costly errors.  Continue to seek external funding through grants and intergovernmental programs to support capital needs.  Define acceptable risk levels to guide decisions and maintain transparency under fiscal constraints. 1.7 Asset Management Practices Our current systems to manage assets include:  PSD Citywide Asset Manager [Asset Inventory Register]  MESH Work Order Management [Asset Maintenance]  Dynamic GP ERP [Financial System] 21  PSD Citywide FMW [Budgeting System]  ESRI GIS System [GIS System] Assets requiring renewal/replacement are identified from either the asset register or an alternative method. These methods are part of the Lifecycle Model. If Asset Register data is used to forecast the renewal costs this is done using the acquisition year and the useful life, Alternatively, an estimate of renewal lifecycle costs is projected from external condition modelling systems (such as Pavement Management Systems) and may be supplemented with, or based on, expert knowledge. The alternative method was used to forecast the renewal life cycle costs for this Asset Management Plan. 1.8 Monitoring and Improvement Program The next steps resulting from this AM Plan to improve asset management practices are:  Improve accuracy of a consolidated, integrated, up-to-date asset register with appropriate data structure components to ensure security and data integrity and improve confidence in the data.  Implement work order management within the Citywide Asset Manager system.  Ensure Asset Managers have the skills and training needed to utilize the asset management program.  Define roles and expectations for Asset Managers and embed AM responsibilities in job descriptions.  Define and document internal procedures for tracking all lifecycle events from the field and recording of these events in the appropriate system.  Ensure alignment and integration of systems and processes to improve data accuracy by linking asset inventories with financial systems, and by standardizing asset classifications and asset ID’s. Task Task Responsibility Resources Required Timeline 1 Increase the frequency of condition assessments to monitor expected deterioration of asset condition due to deferred maintenance. Asset Managers $, staff time, consultants, <3-5 yrs 2 Improve accuracy of a consolidated, integrated, up-to-date asset register with appropriate data structure components to ensure security and data integrity, and improve confidence in the data. Asset Managers Staff time <2 yrs 3 Define roles and expectations for Asset Managers and embed asset management responsibilities in job descriptions. Director of Finance, HR Manager Staff time <1 yr 4 Determine more accurate current and proposed levels of service and related costs. Asset Managers, AM Coordinator Staff time, Consultant 3 yrs 5 Define and document internal procedures for tracking all lifecycle events from the field, and recording of such event data in AM system. Asset Management Coordinator Staff time 2 yr 6 Adopt policies to support an AM framework. Director of Finance Staff time 1 yr 22 Task Task Responsibility Resources Required Timeline 7 Measure resilience in service delivery, to understand capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions and ensure continuity of service. Asset Managers of Linear Infrastructure and Facilities $, staff time, consulting engineer 3 yrs 8 Align AM data structure, policies and processes with financial systems, LTFP and capital and operating budgets. Director of Finance, AM Coordinator Staff time 2-3 yrs 9 Develop a communications program to engage citizens on the state of infrastructure, risks, expected levels of service, and long-term sustainability requirements. Communications Officer, AM Coordinator, Director of Finance, Asset Managers Staff time 2 yrs 10 Provide AM training for Asset Managers, Senior Management, Council members – enhance understanding of AM framework, and improve next iterations of AM Plans Asset Managers, Directors, CAO, Council members $, Staff/Council time 2-3 yrs 23 2.0 INTRODUCTION 2.1 Background This Asset Management Plan communicates the requirements for the sustainable delivery of services through management of assets, compliance with regulatory requirements, and required funding to provide the appropriate levels of service over the long-term planning period. The Asset Management Plan is to be read with the Town of Tillsonburg planning documents. This should include the Asset Management Policy and Asset Management Strategy, where developed, along with other key planning documents:  Official Plan: The AM Plan will influence land use policy directions for long-term growth and development as provided through coordination with the budgeting process.  Community Strategic Plan: The AM Plan will support the Sustainable Growth and Excellence in Local Government in Tillsonburg’s vision to become a regional hub for employment, recreation and culture.  By-laws, Standards, and Policies: The AM Plan will influence policies and by-laws related to infrastructure management practices and standards.  Regulations: The AM Plan must recognize and abide by industry and senior government regulations.  Business & Master Plans: The service levels, risks, and policies defined in the AM Plan will inform business and master plans as management strategies and performance measures. The Town is actively working to enhance its Asset Management (AM) practices through ongoing data refinement and system structure improvements within our AM platform. While core asset data is further developed then non- core assets, a full review of all assets is required to gain better confidence in the data. The Asset Management framework is increasingly being used to inform the development of the 10-year capital plan and the 4-year operating budget. Future implementation of the work order management system inside the AM platform will help with data integration and upkeep of the asset inventory. Council has demonstrated continued support for the AM program by allocating dedicated funding for an Asset Management Coordinator, as well as for external resources that contribute to staff training and the enhancement of our software systems. The Town maintains membership in one or more recognized AM organizations and select staff members have previously received formal training with several more currently enrolled. Staffing changes have impacted the depth of in-house AM knowledge; however, Council has committed additional resources to support training and the engagement of external expertise to rebuild and strengthen the internal capacity. Key stakeholders in the preparation and implementation of this Asset Management Plan are shown in Table 2.1. Table 2.1: Key Stakeholders in the AM Plan Key Stakeholder Role in Asset Management Plan Council  Represent needs of community/shareholders,  Allocate resources to meet planning objectives in providing services while managing risks,  Ensure service sustainable. Chief Administrative Officer  Champion the development of asset management integrated planning and provide the resources required to complete the task. Directors  Set high-level priorities for asset management development and raise the awareness of this function among staff and contractors.  Support the implementation of actions resulting from this plan. 24 Key Stakeholder Role in Asset Management Plan  Make changes to a better way of managing assets and delivering services. Asset Managers  Strategic planning and oversight of their respective asset classes  Oversees data collection and management  Administers condition assessments and risk analysis  Develops lifecycle management strategies  Coordinates performance monitoring and reporting  Facilitates continuous improvements  Member of the Asset Management Working Group Asset Management Coordinator  Development of asset management plans and the implementation of asset management practices.  Member of the Asset Management Working Group Finance Department  Consolidating the asset register and ensuring the asset valuations are accurate.  Development of supporting policies, such as capitalization, depreciation, debt financing, reserves, etc.  Preparation of asset sustainability and financial reports.  Compliance with current accounting standards.  Support for an asset management driven budget and LTFP. External Stakeholders  Community residents.  Local businesses.  Tourists and Visitors (as occasional users).  Emergency services (Fire, Police, EMS)  Utilities Companies.  Federal and Provincial Governments. Our organizational structure for service delivery for infrastructure assets is detailed below: 25 26 27 2.2 Goals and Objectives of Asset Ownership Our goal in managing infrastructure assets is to meet the defined level of service (as amended from time to time) in the most cost-effective manner for present and future consumers. The key elements of infrastructure asset management are:  Providing a defined level of service and monitoring performance,  Managing the impact of growth through demand management and infrastructure investment,  Taking a lifecycle approach to developing cost-effective management strategies for the long-term that meet the defined level of service,  Identifying, assessing and appropriately controlling risks, and  Linking to a Long-Term Financial Plan which identifies required, affordable forecast costs and how it will be allocated. Key elements of the planning framework are  Levels of service – specifies the services and levels of service to be provided,  Future demand – how this will impact on future service delivery and how this is to be met,  Lifecycle management – how to manage its existing and future assets to provide defined levels of service,  Financial summary – what funds are required to provide the defined services,  Asset management practices – how we manage provision of the services,  Monitoring – how the plan will be monitored to ensure objectives are met,  Asset management improvement plan – how we increase asset management maturity. Other references to the benefits, fundamentals principles and objectives of asset management are:  International Infrastructure Management Manual 2015 1  ISO 550002 A road map for preparing an Asset Management Plan is shown below. 1 Based on IPWEA 2015 IIMM, Sec 2.1.3, p 2| 13 2 ISO 55000 Overview, principles and terminology 28 Road Map for preparing an Asset Management Plan Source: IPWEA, 2006, IIMM, Fig 1.5.1, p 1.11 29 2.3 Strategic and Corporate Goals This AM Plan is prepared under the direction of the Town of Tillsonburg vision, mission, goals and objectives. Our vision is: “Our vision for Tillsonburg is to grow a vibrant and engaged community built on partnerships and entrepreneurial spirit. The vision includes diverse housing, employment options, modern amenities and sustainable growth that remains true to our culture and heritage and positions the community as a regional centre.” Our mission is: “The Town of Tillsonburg strives for excellence in local government by providing efficient and effective municipal services, facilitating partnerships, attracting and supporting businesses, promoting local heritage and identity, advancing the community as a regional centre and demonstrating results to the community.” Strategic goals have been set by the Town of Tillsonburg and are identified in the Town’s 10-year Strategic Plan found at https://www.tillsonburg.ca/town-hall/plans-reports-and-studies/. The relevant goals and objectives and how these are addressed for each asset class are summarized in their respective sections. 2.4 Legislative Requirements There are many legislative requirements relating to the management of assets. Legislative requirements that impact the delivery of the service to all asset classes are outlined below in Table 2.4. Table 2.4: Legislative Requirements – All Assets Legislation Requirement Infrastructure for Jobs and Prosperity Act, 2015, S.O. 2015, c. 15 https://www.ontario.ca/laws/statute/15i15#BK11 Gives municipalities the authority to own, operate, and manage infrastructure assets and requires them to plan responsibly and transparently. It supports long-term financial and strategic planning, which is essential for asset management. Public Sector Accounting Board (PSAB) PS 3150. https://www.frascanada.ca/en/public- sector/projects/gnfp-capital-assets Requirement to report values for all tangible capital assets on financial statements. It applies to local governments for fiscal years beginning and after January 1, 2009. Environmental Assessment Act https://www.ontario.ca/laws/statute/90e18 This act requires municipalities to assess the environmental impacts of certain infrastructure projects, integrating environmental considerations into asset management planning. Ontario Regulation 588/17, Asset Management Planning for Municipal Infrastructure. O. Reg. 588/17 Asset Management Planning for Municipal Infrastructure. Requirements per schedule below. 30 Ontario Regulation 588/17 – Asset Management Planning for Municipal Infrastructure The diagram below further outlines key reporting requirements under O. Reg. 588/17 and the associated timelines: Strategic Asset Management Policy Asset Management Plan for Core Assets with the following components: 1. Current levels of service 2. Inventory analysis 3. Lifecycle activities to sustain LOS 4. Cost of lifecycle activities 5. Population and employment forecasts 6. Discussion of growth impacts Asset Management Plan for All Assets with the following additional components: 1. Proposed levels of service for next 10 years 2. Updated inventory analysis 3. Lifecycle management strategy 4. Financial strategy and addressing shortfalls 5. Discussion of how growth assumptions impacted lifecycle and financial strategies Asset Management Plan for Core and Non-Core Assets (same components as 2022) and Asset Management Policy Update 2019 2024 2022 2025 31 2.5 O. Reg. 588/17 Compliance Review The following table identifies the requirements outlined in Ontario Regulation 588/17 for municipalities to meet by July 1, 2025. Next to each requirement a page or section reference is included in addition to any necessary commentary. 1. Requirement 2. O. Reg. Section 3. AMP Section Reference 4. Status Summary of assets in each category S.5(2), 3(i) 3.1 – 10.1 Complete Replacement cost of assets in each category S.5(2), 3(ii) 1.2 Complete Average age of assets in each category S.5(2), 3(iii) 3.10.1 – 10.10.1 Complete Condition of assets in each category S.5(2), 3(iv) 3.8.3 – 10.8.3 Complete Description of municipality’s approach to assessing the condition of assets in each category S.5(2), 3(v) 3.10.3 – 10.10.3 Complete Current levels of service in each category S.5(2), 1(i-ii) 3.8 – 10.8 Complete Current performance measures in each category S.5(2), 2 3.8 – 10.8 Complete Lifecycle activities needed to maintain current levels of service for 10 years S.5(2), 4 3.8.4 – 10.8.4 Complete Costs of providing lifecycle activities for 10 years S.5(2), 4 Appendix F Complete Growth assumptions S.5(2), 5(i-ii) S.5(2), 6(i-vi) 3.9 – 10.9 Complete This AMP relies on assessed condition data for 78% of assets; for the remaining portfolio, age is used as an approximation of condition. Assessed condition data is invaluable in asset management planning as it reflects the true condition of the asset and its ability to perform its functions. The table below identifies the source of condition data used throughout this AMP. 32 Asset Category Asset Segment % of Assets with Assessed Condition Source of Condition Data Road Network Roads 100% 2021 PCI Assessments Sidewalks 80% Internal Annual Sidewalk Inspections Streetlights & Poles 90% Internal Annual Streetlight Inspections Traffic Signals 100% Age Based & Staff Assessments Municipal Parking Lots 100% Age Based & Staff Assessments Road Signs 100% 2024 Retro-reflectivity Assessment Bridges & Culverts Bridges 100% 2023 OSIM Report Culverts 100% 2023 OSIM Report & Staff Assessments Retaining Walls 100% 2023 OSIM Report & Staff Assessments Storm Water All 0% N/A Facilities All 100% 2021 BCA & Staff Assessments Fleet & Fleet Equipment All 100% Staff Assessments Machinery & Equipment All 100% Staff Assessments Land Improvements All 100% 2021 BCA & Staff Assessments Technology & Communication All 100% Age Based & Staff Assessments 33 3.0 ROAD NETWORK This section details information about the road network asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 3.1 Asset Categories/Description The Road Network comprises: Roads - 122,093m Sidewalks – 119,362m Streetlights (Including arms & fixtures) – 2,725 Poles (Including pole and underground infrastructure) – 1,457 Traffic Signals – 16 Municipal Parking Lots – 18 Road Signs (Pooled Asset) - 21 The above infrastructure assets have replacement value estimated at $180,418,992. 3.2 Strategic and Corporate Goals In alignment with the Town’s strategic vision, mission and service delivery objectives, the road network plays a critical role in supporting safe, reliable, and sustainable services to the community. The following table summarizes the relevant goals and objectives and how they are addressed for the road network asset class. Goal Objective How Goal and Objectives are addressed in the AM Plan The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and opportunities to shape municipal initiatives. Position Tillsonburg as a leader in the municipal sector. The AM Plan captures levels of service, risk and financial forecast to ensure sustainability. Priority projects in the Strategic Plan are linked to, and informed by, elements that are addressed in the AM Plan, including: Multi-year budgeting; Financial Sustainability Plan; Municipal Service Review; Environmental Sustainability Plan. The Town of Tillsonburg will accommodate and support sustainable growth. Plan and develop a long-term financing strategy for new services and infrastructure to support growth. The AM Plan addresses lifecycle costs of current and future acquisitions of assets due to growth. Priority projects in the Strategic Plan linked and informed by elements in the AM Plan include; replenish and grow reserves; boundary expansion initiative; development charges study; resourcing review to service growth. Tillsonburg residents and businesses will be connected to each other, regional networks, and the world through effective traditional and digital infrastructure. Develop a robust, long- term asset management plan to inform evidence-based decisions on the maintenance, rehabilitation and The AM Plan specifically covers acquisition, operations, maintenance, and renewal costs and funding levels of roads assets, to ensure such assets can provide a network of roads to support local and regional connectivity. Linked priority projects in the Strategic Plan include development of an asset management plan; 34 Goal Objective How Goal and Objectives are addressed in the AM Plan replacement of municipal infrastructure. Transportation Master Plan; electric vehicle infrastructure study; and Master drainage planning study. 3.3 Legislative Requirements As discussed in 2.4, there are many legislative requirements relating to the management of assets. Legislative requirements that specifically impact the delivery of the road network service are outlined in Table 3.3. Table 3.3: Legislative Requirements Legislation Requirement Ontario Regulation 239/02, Minimum Maintenance Standards for Municipal Highways. https://www.ontario.ca/laws/regulation/020239 Covers such items as, but not limited to, patrolling frequency, snow accumulation, potholes and regulatory/warning signs and traffic signals. Highway Traffic Act (HTA) https://www.ontario.ca/laws/statute/90h08 This is provincial legislation applies to signage, speed limits, and road user behaviour within municipalities. Professional Engineering and Safety Standards Ontario Provincial Standards (OPS) Municipal road design and maintenance must follow recognized engineering standards (e.g., Ontario Provincial Standards - OPS) Professional engineers (P.Eng.) may be required to approve designs and capital work. Accessibility for Ontarians with Disabilities Act (AODA) https://www.ontario.ca/laws/regulation/110191 AODA requires municipal assets to be accessible to people with disabilities, especially during new construction or major upgrades. This includes features like ramps, tactile surfaces, and barrier-free paths in public spaces such as sidewalks, buildings, parks, and parking areas. 3.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when the Town commits to the upgrade of existing and acquisition of new assets, future operations, maintenance and renewal costs including depreciation will increase. 3.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $51,270,664 or $5,127,067 on average per year. Depreciation is excluded from these cost estimates. 35 3.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $51,254,944 or $5,125,495 on average per year which is approximately 99.97% of the cost to undertake the lifecycle activities. The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasising the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organisation is delivering the services in a financially sustainable manner. The 10-year LTFP results in a shortfall of $-1,572 on average per year which is negligible and has no impact on the forecast lifecycle costs required to provide services. This is shown in the figure below. Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). We plan to provide road network services for the following:  Operation, maintenance, renewal and acquisition of roads, sidewalks, streetlights and poles, traffic signals, municipal parking lots and road signs to meet service levels set by Town of Tillsonburg Council in annual budgets.  Undertake several significant capital projects focused on sustaining the road network. These include road surface renewals, sidewalk replacements and connectivity projects, streetlighting upgrades and subdivision assumptions within the 10-year planning period. 3.4.3 What we cannot do  There are no identified maintenance, and/or capital project activities that cannot be completed as planned with the current budget or forecasted in the next 10 years. 3.5 Risk Management The planned budget is sufficient to continue to manage risks in the medium term. Strategies and actions to manage these risks are discussed in Section 3.16. 36 3.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $5,125,495 on average per year, giving a 10-year funding shortfall of $-1,572 per year which is negligible and has no impact on the forecast lifecycle costs required to provide services. This indicates that 99.97% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are assumed. 3.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  The Town is projected to assume ownership of road network assets from subdivision developments with the following estimated values: $4,368,571 in 2027, $3,360,314 in 2028, $1,760,942 in 2031, $8,887,556 in 2033, and $2,511,146 in 2034.  Population is expected to increase by approximately 7,130 people by 2036.  4,205 new housing units are anticipated to be built over the next 10 years, a 51% growth rate. The Alternate Method utilizing information from the 10-year capital budget was used to forecast the renewal lifecycle costs for this AM Plan. This AM Plan is based on a low level of confidence in the information. The next steps resulting from this AM Plan to improve asset management practices are:  Tangible Capital Asset Policy review including the addition of a Schedule outlining key asset class and sub- class classifications and aligned financial details.  Asset inventory data verification and re-classification, including an alignment review of GIS data.  Asset register/hierarchy restructuring. 3.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers the infrastructure assets that provide essential services for a safe and reliable transportation system for vehicles, pedestrians, cyclists and public transit. They also enable emergency response, goods movement, community connectivity, and seasonal services like snow clearing. The current Level of Service (LOS) for road network assets is aligned with the provincial Minimum Maintenance Standards (MMS). This includes maintaining roads in a condition that supports safe and reliable travel, timely winter control, pothole repair, signage maintenance, and visibility standards. This level of service is considered appropriate and sustainable for the community at this time, balancing safety, regulatory compliance, and available resources. The allocation in the planned budget is sufficient to continue providing these services at current levels for the planning period. The main service consequences of the planned budget are:  With forecasted population growth, assets will further deteriorate from increased traffic flow.  Demand for additional capacity is likely to increase. With expected housing and commercial and industrial growth, upgrades to the classification of roads is likely, due to heavier equipment and increased volume.  While renewal activities are funded, the operational and maintenance budget will be insufficient with the addition of the acquired assets. This will cause faster deterioration of the assets over time if the budget is not increased. 37 3.8.1 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The 2025 Asset Management Plan Survey was open to the public and its internal asset users for their input over a three (3) week period. The survey focused on the customer satisfaction levels regarding the current condition, function and capacity of the road network infrastructure. Table 3.8.1 summarises the results for the Road Network. Table 3.8.1: Customer Satisfaction Survey Levels – Road Network Performance Measure Overall Condition/Function/Capacity Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Roads 10% 46% 33% 11% Sidewalks 13% 65% 17% 5% Streetlights & Poles 18% 68% 11% 3% Traffic Signals 17% 57% 18% 8% Municipal Parking Lots 17% 66% 16% 1% Road Signs 15% 78% 5% 2% 3.8.2 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. Customer Values indicate:  what aspects of the service is important to the customer  whether they see value in what is currently provided and  the likely trend over time based on the current budget provision Table 3.8.2: Customer Values Service Objective: Provide a safe, functional and well-maintained road network. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Roads that are safe, reliable and comfortable to use. Number of potholes, cracks and rutting. 56% of survey respondents are satisfied with the current condition, function and capacity of the roads. 44% dissatisfied respondents mention the abundance of potholes, poor surface quality and neglect of the older infrastructure. The expected trend is to decrease in the short-term, however, some high-priority road segments identified in the condition assessments are included in the 10-year plan, with some scheduled for repair under the asphalt maintenance program. 38 Service Objective: Provide a safe, functional and well-maintained road network. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Sidewalks that are accessible, safe, well-maintained and connected. Number of cracks, trip hazards, heaving or sinking, missing curb ramps, obstructions, connectivity gaps. 78% of survey respondents are satisfied with the current condition, function and capacity of the sidewalks. Dissatisfied respondents comment on the lack of sidewalks in older subdivisions, uneven/cracked/poorly installed conditions, inconsistent sidewalk design and winter maintenance hazards. The expected trend is to increase. Sidewalk connectivity plan should begin to address connectivity issues. The sidewalk maintenance budget will help address and reduce public complaints related to sidewalk conditions. Streetlights that are reliable, provide well- lit streets, parking lots and sidewalks, consistent coverage, bright enough to feel safe. Number of streetlight outages, pole deficiencies, adequate amount of streetlights/coverage. 86% of survey respondents are satisfied with the current condition, function and capacity of streetlights and poles. Dissatisfied comment on the broken or outdated lights in specific areas, poorly lit areas and the amount of time it takes for streetlight maintenance to occur. The expected trend is to remain the same. Traffic signals that are safe, efficient, responsive and accessible. Number of malfunctions/failures, pedestrian accessibility issues, poor timing & coordination. 74% of respondents are satisfied with the current condition, function and capacity of traffic signals. Dissatisfied respondents comment on the poor signal timing, too many or too few signals, lack of left turn signals and disregard of the signals from motorists. The expected trend is to remain the same. Municipal parking lots that are convenient, provide sufficient capacity, safe, affordable, and well-maintained. Number of potholes, cracks, uneven surfaces, inadequate capacity, accessibility problems. 83% of survey respondents are satisfied with the condition, function and capacity of municipal parking lots. Dissatisfied respondents comment on the number of potholes and unpaved parking areas and too much congestion. The expected trend is to remain the same. Road signs that are clear, visible, informative and reliable. Number of damaged/faded signs, obstructions, outdated information, improperly placed, missing signs. 93% of respondents are satisfied with the condition, function and capacity of road signs. -Dissatisfied respondents comment on the lack of signage in parking lots. The expected trend is to remain the same. 39 3.8.3 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? In Table 3.5 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. Table 3.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Condition of Assets Roads - Pavement Condition Index Sidewalks – Annual Sidewalk Inspections Streetlights & Poles - Annual Streetlight Inspections Traffic Signals – Internal condition assessment Municipal Parking Lots – Age based condition only Road Signs – Retro- Reflectivity Assessment, Staff inspections Road inspection study completed in 2021 found an average Pavement Condition Index of 65.9 which falls in the “Fair” category. -------- Internal sidewalk inspection in 2024 found an average sidewalk condition rating of 4 which falls in the “Good” category. --------- 2951 streetlights were inspected internally during the annual streetlight inspection in 2025. 95% of the streetlights and poles had no defects. ----------- Traffic signals – internal condition assessment of 3.5 which falls into the “fair” condition. ----------- Municipal parking lots have not been assessed, and the condition is strictly based on age. ------------ 98% of Road signs currently have an overall condition rating of good and 90% have a passing retro- reflectivity grade. It is expected that the trend will remain the same. Confidence levels Medium - Professional judgement supported by some data sampling Medium - Professional judgement supported by data sampling 40 Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Function Assets are functional and able to provide services to the community. Efficiency and effectiveness of the roads network as reviewed and informed by a Transportation Master Plan. Overall, the current road network is functioning efficiently. Transportation Master Plan is currently being finalized and will provide a long-term strategy. The Transportation Master Plan is a long-term strategy that will guide how the Town plans and improves its roads, sidewalks, transit, and overall transportation network. It supports safe, efficient, and sustainable travel while reflecting the community’s current and future needs. Confidence levels Medium - Professional judgement supported by some data sampling High - Professional Judgement supported by extensive data Capacity Assets are able to meet community demand. Increased demand via Traffic Impact Study Community Strategic Plan identified a need for a traffic impact study and a Transportation Master Plan, to plan appropriately for a growing community. Demand is expected to increase due to population growth, housing growth and commercial and industrial area growth. Confidence levels Medium - Professional judgement supported by some data sampling High - Professional Judgement supported by extensive data 3.8.4 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities (see Section 5) and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Service and asset managers plan, implement and control technical service levels to influence the service outcomes.3 Table 3.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. Table 3.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet demand Assumption of assets as part of a responsibility transfer of an assumed Subdivision. Measured by number of assumed assets per year. Subdivision assets are assumed after initial contractor responsibility period. Once assumed, Assumption of assets should be forecasted, and estimated values included in lifecycle costing requirements. 3 IPWEA, 2015, IIMM, p 2|28. 41 Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** assets are entered into asset register. Other new and upgraded road network assets are added upon installation. Budget $104,000 $146,500 Operation Regular activities for citizens to utilize the road network Street/sidewalk sweeping, debris removal, winter maintenance, patrols, inspections, electricity costs, labour. Operational budget is considered sufficient to maintain the current level of service. Actual expenditures vary depending on weather conditions but have generally been close to budget. As the Town continues to grow and more road network assets are assumed/put into service, this operational budget will need to increase as more staff/materials will be required to maintain the current level of service. Approximately 1 additional full-time employee will be required. Budget $2,726,875 $2,822,937 Maintenance Retain the road network assets as near as practicable to an appropriate service condition and provide service to the assets for the planned asset life. Crack sealing, patching, road repairs, sidewalk grinding/repairs, streetlight and pole repairs, traffic signal maintenance and repairs, sign repairs. Current budget allows staff to prioritize urgent needs first which delays other needs primarily due to current staffing demands. The current level of service is meeting minimum maintenance standards. Recommended performance is to continue with the current level of service and meeting the minimum maintenance standards. Any increases would require Council approval. Budget $561,821 $581,542 Renewal Return the road assets to the service capacity to which they provided when first put into service. Reconstruction/replacement of the road network assets when their condition assessment ratings are in the “poor” to “critical” category. The current renewal budget is sufficient to maintain the level of service. Recommended performance is to continue with the current level of service. Any renewals outside of the planned 10- year capital projects would require Council approval. Budget $1,732,798 $1,732,798 Disposal Remove assets and take them out of service. Roads, sidewalks and parking lot assets are not disposed; they are renewed per their condition rating. Streetlights, traffic signals, signs are replaced and disposed. Various road network assets are planned to be renewed/replaced and disposed. These costs are included in the renewal/replacement costs. Budget $ 0 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 42 3.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 3.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth  Housing Development Growth  Commercial & Industrial Growth Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 3.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 3.9.3. 3.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 3.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. Opportunities identified to manage demand are shown in Table 3.9.3. Further opportunities will be developed in future revisions of this AM Plan. Table 3.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 (As per Economic Development Commissioner). Population is expected to increase by approximately 7130 people by 2036. Greater demand for coordination of connected roads to arterial networks for commuting. Increased use of existing roads, sidewalks, and traffic systems, leading to more wear, higher maintenance costs, and the need for expansion and upgrades. Develop and follow a long-term transportation master plan, invest in infrastructure upgrades, and prioritize maintenance. Also use growth projections, traffic data, and public input to guide decisions, while ensuring new developments include complete streets, sidewalks, and transit-friendly design. Housing Development Growth In 2021, there were 8,229 private dwellings occupied in Tillsonburg, which represent a change of 15.5% from 2016. 4,205 new housing units are anticipated to be built over the next 10 yrs, a 51% growth rate. Development of new subdivisions will mean assumption of new assets; enhanced coordination of infrastructure planning, as roads, water, wastewater and utilities may need to be upsized in current locations to handle increased density. Working with developers, the Town has forecasted which development will be completed in which year, allowing for the coordination of infrastructure planning relative to roads and all other services. Monitoring of development activity will allow for proactive changes should plans change. 43 Demand driver Current position Projection Impact on services Demand Management Plan Commercial & Industrial Growth 10% of the tax base is commercial and industrial. Roads carrying commercial transports and industrial machinery needs to be built to higher standards. 25 new industrial lots are expected to be filled in the next 10 years. Increased demand for higher built classification of roads, meaning higher costs to maintain, higher frequency of maintenance due to heavier loads on these roads. Forecast impact of such growth to capital requirements, address funding gaps through long term financial plan. 3.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 3.13. Acquiring new assets will commit the Town to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 3.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.4 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 3.9.5. Table 3.9.5 Managing the Impact of Climate Change on Assets and Services Climate Change Description Projected Change Potential Impact on Assets and Services Management Roadway/sidewalk damage Sustained high temperatures can cause changes in asphalt composition damaging roadways. Higher temperatures can create rutting and potholes, particularly in high-traffic areas and can place stress on road seams and bridge joints. Structural adaptation measures: i.e., changing the composition of road surfaces so that they do not deform in high temperatures. Streetlight, pole, traffic signal, road sign damage Increase in intense storms cause damage to the assets. Damage to streetlight poles or wiring and power outages that knock out the lighting. Damage to road signs. Use durable, weather-resistant materials, switch to energy- efficient and solar-powered lights, and adopt smart lighting systems that adjust to environmental conditions. Extreme Precipitation Heavy precipitation can result in flooding, weaken or wash out the soil and culverts that support roads and bridges. Corrosion of the assets occurs sooner due to prolonged moisture exposure. Heavy precipitation can flood or leave debris on roadways, disrupting transit, and leading to premature pavement deterioration. Building seawalls or using permeable paving surfaces to reduce run-off during heavy rainfalls. 4 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 44 Climate Change Description Projected Change Potential Impact on Assets and Services Management Freeze-thaw Cycles Higher frequency of freeze-thaw cycles. Increases the need for sand, salt and brine during winter maintenance operations. Adjust budget levels for 5-10 yr trends and set up a reserve to manage surplus/deficits in winter operations. Water Level Rise Roads that are adjacent to waterways are vulnerable to water level rise. Could lead to accelerated deteriorations, soil erosion, delays as well as temporary and permanent closures. Develop slope improvement strategies through geotechnical investigations and assessment of several slope stability improvement options. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change;  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 3.9.6 summarises opportunities to build climate change resilience into new and existing assets. Table 3.9.6 Building Climate Change Resilience into New and Existing Assets New Asset Description Climate Change impact These assets? Build Resilience in New Works New Road Network Infrastructure Extreme temperatures When tendering, require new strategies of design and maintenance i.e. using heat resistant materials, frost resistant materials, solar-powered lights and green infrastructure. Conduct regular inspections and maintenance activities. Increased winter events, freeze-thaw cycles. Consider changing maintenance schedules and including adaptive management to account for uncertainty in the future. Extreme precipitation events Consider using natural infrastructure such as protecting or enhancing natural drainage systems. Use durable, weather-resistant materials (e.g., permeable pavement, corrosion-resistant poles, reinforced signal housings. 3.10 Lifecycle Management Plan The lifecycle management plan details how the Town plans to manage and operate the road network assets at the agreed levels of service throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximize the value of the assets while minimizing costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover: Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement). 45 Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost-effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 3.10. Figure 3.10: Asset Lifecycle Activities 3.10.1 Background Data Physical parameters - the assets covered by this AM Plan are shown in Table 3.10.1. Table 3.10.1: Assets covered by this Plan Asset Category Dimension Replacement Value Roads 122,093 meters $144,073,941 Sidewalks 119,362 meters $15,242,474 Streetlights (Includes arm(s) and fixtures 2725 $3,791,900 Poles (Includes underground infrastructure) 1457 $10,927,500 46 Asset Category Dimension Replacement Value Traffic Signals 16 $1,577,707 Municipal Parking Lots 18 $4,303,737 Road Signs 21 $501,734 Total $180,418,992 Average Age 21 Years The age profile of the assets included in this AM Plan are shown in Figure 3.10.1. Figure 3.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation). The chart shows that significant investments in the road network were made in peak years such as 1960, 1977, 1982, 1998, and 2008, indicating large-scale construction or reconstruction during those periods. As many of these asset’s approach or exceed their typical useful lives, the Town can expect upcoming peaks in renewal needs, highlighting the importance of proactive planning to manage aging infrastructure and avoid costly deferred maintenance. 3.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 3.10.2. Table 3.10.2: Known Service Performance Deficiencies Asset Type Service Deficiency Roads PCI < 25 Sidewalk SCI < 75 Road Signs Retro-reflectivity Fail Status 47 3.10.3 Asset condition Condition is currently monitored through road condition assessment studies (CPI), sidewalk inspections, streetlight & pole inspections, retro-reflectivity assessments and age related conditions. Condition is measured using customized grading systems for each asset type within the road network. This data has been converted to a 1 – 5 grading system5 as detailed in Table 3.10.3. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1 – 5 grading scale for ease of communication. Table 3.10.3: Condition Grading System Condition Grading Description of Condition 5 Very Good: free of defects, only planned and/or routine maintenance required 4 Good: minor defects, increasing maintenance required plus planned maintenance 3 Fair: defects requiring regular and/or significant maintenance to reinstate service 2 Poor: significant defects, higher order cost intervention likely 1 Very Poor: physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 3.10.3. Figure 3.10.3: Asset Condition Profile Approximately 55% of all road network assets are rated in the “good” or “very good” condition rating. Currently, roads, sidewalks and road signs are the only 3 asset types that have undergone 3rd party engineering assessments. The condition assessment results for traffic signals and parking lots are strictly based on internal judgement or aged based and are not currently monitored in a formal way. Future versions of this asset class should include formal condition assessments on all asset types. 3.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. 5 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 48 Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets are shown in Table 3.11. Table 3.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $561,821 2025 $579,125 2026 $596,500 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 3.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The Town has not developed a service hierarchy for this asset class. 3.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 5.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Figure 3.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). 49 The current operating and maintenance budget is sufficient for existing road network assets. Assumed assets will increase operating and maintenance costs over the 10-year period, which will require more budget dollars or will result in a decline in the level of service. 3.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The typical useful lives of assets used to develop projected asset renewal forecasts are shown in Table 3.12. Asset useful lives will be reviewed with the asset inventory re-structure and clean-up. Table 3.12: Useful Lives of Assets Asset Sub-Category Useful life Roads (Base and Surface) 25 Sidewalks 40 Streetlights (Arm(s) and fixtures) 50 Poles (With underground infrastructure) 50 Traffic Signals 20 Municipal Parking Lots 30 Road Signs 35 The estimates for renewals in this AM Plan were based on the 10-year plan. 3.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either:  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).6 It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide the equivalent service.7 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 3.12.1. 6 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 7 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 50 Table 3.12.1: Renewal Priority Ranking Criteria Criteria Weighting Condition 30 Utilization & Criticality 30 Safety 30 Cost 10 Total 100% 3.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 3.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. Figure 3.12.2: Forecast Renewal Costs Amounts are shown in real values (i.e., current values, net of inflation). Over the 10-year period the proposed renewal budget is sufficient to meet the forecast renewal costs. 3.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social or environmental needs. Assets may also be donated to the Town of Tillsonburg. 3.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services 51 are sustainable over the longer term. As the Town assumes the majority of assets in the road network class, the Town does not currently use a priority ranking criteria. 3.13.2 Summary of future asset acquisition costs Forecast acquisition asset costs are summarised / summarized in Figure 3.13.2 and shown relative to the proposed acquisition budget. The forecast acquisition capital works program is shown in Appendix A. Figure 3.13.2: Acquisition (Constructed) Summary Amounts are shown in real values (i.e., current values, net of inflation). When an Entity commits to new assets, they must be prepared to fund future operations, maintenance and renewal costs. They must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the Entity. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 3.13.3. 52 Figure 3.13.3: Acquisition Summary Amounts are shown in real values (i.e., current values, net of inflation). Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The annual sidewalk connectivity program is the only constructed acquisition project over the 10-year period. All other assets are donated through assumption by-laws at the completion of a subdivision development. 3.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 3.14. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 3.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 3.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings No Road Network assets have been identified for possible decommissioning or disposal in the 10-year plan. N/A N/A N/A N/A 3.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 3.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. 53 Figure 3.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). The budget trend increases slightly over the 10-year period while the renewals fluctuate with project scope. 3.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: ‘coordinated activities to direct and control with regard to risk’8. An assessment of risks9 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 3.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 3.16.1. Failure modes may include physical failure, collapse or essential service interruption. 8 ISO 31000:2009, p 2 9 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 54 Table 3.16.1 Critical Assets Critical Asset(s) Failure Mode Impact Roads (Class 2 & 3, Intersections) Potholes, cracking, surface deterioration. Subsurface failure (base/subgrade erosion). Traffic accidents, congestion and detours, emergency service delays, high repair costs and liability. Sidewalks (Primary) Cracking, heaving (tree roots, frost). Settling and trip hazards, surface spalling. Pedestrian injuries (trips, falls), legal liability for Town, accessibility barriers for mobility aids. Streetlights & Poles Lamp burnout or electrical failure. Pole corrosion and collapse, vehicular collisions knocking over poles. Poor nighttime visibility (increased accidents), multi-utility service disruption, property damage/injury risk. Traffic Signals (Arterials and Crossings) Power failure (blackout), controller malfunction, sensor or timing failure. Increased collision risk at intersections, pedestrian injuries at crossings, traffic disruptions. Municipal Parking Lots Surface deterioration (potholes, ponding). Poor drainage causing flooding, line fading or signage loss. Vehicle damage, accessibility and safety issues, reduced downtown/core service access. Road Signs (Regulatory, Warning, Guide) Physical damage (vehicular impact, vandalism), fading or illegibility, missing signs. Increased accident risk, poor driver guidance, delayed emergency response. By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 3.16.2 Risk Assessment The risk management process used is shown in Figure 3.16.2 below. It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. Fig 3.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 55 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 3.16.2. It is essential that these critical risks and costs are reported to management and Council. Table 3.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Roads (Class 2 & 3) Potholes, sinkholes, major surface failure H Regular inspections, asphalt maintenance program, prioritized rehabilitation M $25,000 to $150,000 per km Sidewalks (Primary) Cracking, heaving, trip hazards H Sidewalk condition inspections (annual), repair/replacement program, root barrier installations L $15,000 to $50,000 per km Streetlights & Poles Electrical failure, pole collapse H Annual inspections, proactive pole replacement (based on age/condition) L $300 to $5000 per streetlight/pole Traffic Signals Power outage, controller failure H Backup power (battery/solar), preventive maintenance program (controllers, wiring checks) L $5,000 to $25,000 per intersection Municipal Parking Lots Potholes, flooding, line fading M Routine maintenance schedule (crack sealing, drainage cleaning), repainting lines every 3–5 years L $10,000 to $100,00 per lot Road Signs (Critical) Missing, damaged, faded signs H Regular sign inspection program (annually), reflective sign replacement cycle L $200 to $500 per sign Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 3.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership. Our current measure of resilience is shown in Table 3.16.3 which includes the type of threats and hazards and the current measures that the organisation takes to ensure service delivery resilience. 56 Table 3.16.3: Resilience Assessment Asset Threat / Hazard Assessment Method Current Resilience Approach Roads Flooding, freeze-thaw cycles, heavy traffic, climate change Regular condition inspections (patrols), Pavement Condition Inspections Routine inspections, asphalt maintenance plans Sidewalks Tree root intrusion, winter freeze, trip hazards, flooding Visual inspections during spring/fall, reactive complaints tracking Annual sidewalk inspections, trip hazard grinding program tree management near sidewalks Streetlights & Poles Vehicle collisions, windstorms, corrosion, power surges Pole inspections (age/condition database), nighttime inspections, electrical system audits Replacement program, scheduled pole replacements (EUL basis), emergency response contracts Traffic Signals Power outages, cyber- attacks (modern systems), mechanical failure Scheduled functional testing, electrical system inspection, SCADA or controller vulnerability scans Preventative maintenance program, installing battery backups/solar, cybersecurity policies for smart controllers Municipal Parking Lots Flash flooding, ice buildup, vehicle overloading Surface drainage inspections, winter maintenance checks Crack sealing, proper lot grading improvements, storm drain cleaning programs Road Signs (Critical Signs) Vandalism, vehicle accident damage, high-wind damage, UV fading (climate) Annual visual inspections, retro- reflectivity checks (night drives) Reflective material upgrades, quick response to missing/damaged signs 3.16.4 Service and Risk Trade-Offs The decisions made in adopting this AM Plan are based on the objective to achieve the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  There are no identified maintenance, and/or capital project activities that cannot be completed as planned with the current budget or forecasted in the next 10 years. Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. There are currently no service consequences for this asset class. Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. There are currently no service consequences for this asset class. Any risks identified over the next 10-year period will result in additional actions and expenditures to be considered and included in the forecast costs, and where developed, a Risk Management Plan. 57 4.0 BRIDGES & CULVERTS This section details information about the bridges & culverts asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 4.1 Asset Categories/Description The bridges & culverts asset class comprises: Vehicular Bridges – 2 Pedestrian Bridges - 6 Culverts > 3m span – 7 Culverts < 3m span – 39 Retaining Walls > 1m in height – 10 The above infrastructure assets have replacement value estimated at $47,751,000. 4.2 Strategic and Corporate Goals In alignment with the Town’s strategic vision, mission and service delivery objectives, bridges, culverts, and retaining walls are essential municipal infrastructure that support safe and efficient transportation, manage stormwater, and stabilize terrain. They help prevent flooding, erosion, and structural failures, while ensuring public safety and maintaining connectivity across the road network. The following table summarizes the relevant goals and objectives and how they are addressed for the road network asset class. Table 4.2: Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in the AM Plan The Town of Tillsonburg will accommodate and support sustainable growth. Plan and develop a long-term financing strategy for new services and infrastructure to support growth. Developing a sustainable renewal program as well as operational and maintenance programs to maintain the current assets and address future expansion and service requirements. Tillsonburg residents and businesses will be connected to each other, regional networks, and the world through effective traditional and digital infrastructure. Develop a robust, long-term asset management plan to inform evidence- based decisions on the maintenance, rehabilitation and replacement of municipal infrastructure. The AM Plan specifically covers acquisition, operations, maintenance, and renewal costs and funding levels of roads assets, to ensure such assets can provide a network of roads to support local and regional connectivity. Linked priority projects in the Strategic Plan include; development of an asset management plan; Transportation Master Plan; electric vehicle infrastructure study; and Master drainage planning study. 58 4.3 Legislative Requirements As discussed in section 2.4 there are legislative requirements that are related to the management of all assets. The following requirements are specific to the bridges & culverts asset class. Table 4.3: Bridges & Culverts - Legislative Requirements Legislation Requirement Ontario Regulation 239/02, Minimum Maintenance Standards for Municipal Highways Ontario Regulation 239/02 (Minimum Maintenance Standards for Municipal Highways) sets requirements for inspecting and maintaining bridges and culverts, including regular condition assessments, timely repairs, and safety measures to ensure structural integrity and public safety. Standard for Bridges O. Reg. 104/97 Ontario Regulation 104/97 establishes standards for bridge inspections, requiring regular assessments and reporting to ensure structural safety and compliance with provincial guidelines. O. Reg. 500/21: General – Made under the Drainage Act Ontario Regulation 500/21 sets safety and maintenance requirements for culverts and retaining walls on provincial highways, ensuring proper inspection, repair, and structural integrity. 4.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when the Town commits to the upgrade of existing and acquisitions of new assets, future operations, maintenance and renewal costs including depreciation will increase. 4.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $14,096,900 or $1,409,690 on average per year. Depreciation is excluded from these cost estimates. 4.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $15,208,145 or $1,520,815 on average per year which is approximately 107.88% of the cost to undertake the lifecycle activities. The funding is higher than 100% as the additional funding represents the leftover funds in the respective capital reserve for future outlays and inflation adjustment. The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organization delivers the services in a financially sustainable manner. The 10-year LTFP results in a surplus of $111,125 on average per year of the forecast lifecycle costs required to provide services. This is shown in the figure below. 59 Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). We plan to provide bridges & culverts services for the following:  Operation, maintenance, renewal and acquisition of bridges, culverts and retaining walls to meet service levels set by Town of Tillsonburg Council in annual budgets.  Undertake several significant capital projects focused on sustaining the assets. These include replacement of the Kinsmen Bridge, Hawkins Bridge rehabilitation, Concession St. W Bridge rehabilitation, Simcoe Street Bridge maintenance, nine culvert renewals and four retaining wall projects within the 10-year planning period. 4.4.3 What we cannot do  There are no known operations, maintenance, and/or capital project activities that cannot be completed as planned 4.5 Risk Management The planned budget is sufficient to continue to manage risks in the medium term. The main risk consequences are:  There is currently no risk consequences identified. Strategies and actions to manage these risks are discussed in Section 4.16. 4.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $1,520,815 on average per year giving a 10 year funding surplus of $111,125 per year. This indicates that 107.88% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are added and put into service. 60 4.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  Most replacement costs were sourced from third-party contractors through OSIM inspection reports, while some were estimated internally by staff  In-service dates may be assumed using past knowledge or construction timelines. The Alternate Method utilizing information from the 10-year capital budget was used to forecast the renewal lifecycle costs for this AM Plan. This section of the AM Plan is based on a medium level of confidence in the asset information. The next steps resulting from this AM Plan to improve asset management practices are:  Continuous asset inventory data quality improvements 4.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers the infrastructure assets that provide critical transportation links, stormwater management, and slope stability, supporting public safety, economic activity, and infrastructure resilience. The current Levels of Service (LOS) for bridges, culverts, and retaining walls are determined based on OSIM inspections. These inspections provide critical information on asset performance, condition, and reliability, helping ensure safety, functionality, and regulatory compliance. The results inform maintenance strategies, inspection schedules, and capital planning efforts to align with community expectations and acceptable risk levels. The allocation in the planned budget is sufficient to continue providing these services at current levels for the planning period. The main service consequences of the planned budget are:  There are currently no service consequences identified. 4.8.1 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The 2025 Asset Management Plan Survey was open to the public and its internal asset users for their input over a three (3) week period. The survey focused on the customer satisfaction levels regarding the current condition, function and capacity of bridges & culverts infrastructure. Table 4.8.1 summarizes the results from our Customer Satisfaction Survey. Table 4.8.1: Customer Satisfaction Survey Levels – Bridges & Culverts Performance Measure Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Vehicular & Pedestrian Bridges 23% 71% 4% 2% Structural Culverts (Over 3m span) 16% 76% 8% 0% Retaining Walls (Over 1m high) 16% 75% 7% 2% 61 4.8.2 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. Customer Values indicate:  what aspects of the service is important to the customer,  whether they see value in what is currently provided and  the likely trend over time based on the current budget provision Table 4.8.2: Customer Values Service Objective: Develop a robust, long-term asset management plan to inform evidence-based decisions on the maintenance, rehabilitation and replacement of municipal infrastructure. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Bridges Bridge is safe and structurally adequate. Bridge provides reasonable level of connectivity and accessibility. AMP Survey # of Service Requests/Complaints received annually related to the structure, condition and any safety concerns. 94% of survey respondents are either satisfied or very satisfied. Average of 3 service requests/complaints per year. Expected to maintain trend Culverts Culvert is safe and structurally adequate. Culvert effectively manages flow of water. AMP Survey # of Service Requests/Complaints received annually related to the safety of culverts. 92% of survey respondents are either satisfied or very satisfied. Average of 4 service requests/complaints per year. Expected to maintain trend Retaining Walls Retaining wall is safe and structurally adequate Retaining wall effectively prevents soil displacement by stabilizing slopes AMP Survey # of Service Requests/Complaints received annually related to the structure, condition and any safety concerns. 91% of survey respondents are either satisfied or very satisfied. Average of 2 service requests/complaints per year. Expected to maintain trend 4.8.3 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? In Table 4.8.3 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. 62 These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. Table 4.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Overall Condition of assets Ontario Structures Inspection Manual 2023 OSIM Inspection condition rating for bridges, culverts & retaining walls is 3.3/5 which falls in the Fair category. Asset inventory clean-up will ensure all non-provisional structures are inspected for better confidence in data. With the 10-year capital budget, it is expected that the overall condition will be maintained. 2025 OSIM inspection results will help guide long-term decisions. Confidence levels Medium - Professional judgement supported by data sampling Medium - Professional judgement supported by data sampling Function Assets are functional and able to provide the intended service to the community Ontario Structures Inspection Manual Staff Input No bridge closures in the past 3 years. Culverts are all functioning and providing the intended level of service. All retaining walls are stable and performing as intended. With the 10-year capital budget, it is expected that the overall function will remain the same. Confidence levels Medium - Professional judgement supported by data sampling Medium - Professional judgement supported by data sampling Capacity Assets are able to meet community demand Ontario Structures Inspection Manual Staff Input No complaints received for the load capacity of any bridges. Current culvert capacity is sufficient. Current design capacity for retaining walls is adequate. With the 10-year capital budget, it is expected that the overall capacity will remain the same. Confidence levels Medium - Professional judgement supported by data sampling Medium - Professional judgement supported by data sampling 4.8.4 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. 63 Service and asset managers plan, implement and control technical service levels to influence the service outcomes.10 Table 4.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. Table 4.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet demand Number of planned new bridges, culverts and retaining walls No new constructed or assumed assets in current budget. No constructed or assumed assets expected in the 10-year plan. Budget $0 $0 Operations Regular activities/costs associated to utilize bridges, culverts & retaining walls OSIM Inspections, vegetation control, winter maintenance, bridge washing. The current operating budget covers OSIM inspections, reactive vegetation control, winter maintenance, and minimal bridge washing. An increase in PW staff would allow for frequent internal inspections and monitoring, identifying blockages and erosion, debris removal, proper annual bridge washing and establish a pro-active vegetation control program. Budget $60,000 $60,000 Maintenance Retain the bridges, culverts & retaining walls as near as practicable to an appropriate service condition and provide service for the planned lifecycle. Crack sealing/repairs, deck maintenance, replace bolts, repair supports, steel painting. The current maintenance budget allows for minimal reactive maintenance activities resulting from service requests and public complaints. With increased PW staff capacity, the focus can shift from reactive to proactive maintenance, improving asset longevity and safety. Some maintenance recommendations identified in the OSIM inspections could be completed internally. Budget $8,860 $8,860 Renewal Return the bridges, culverts & retaining walls to the service capacity to which they provided when first put into service. Full replacement or major rehabilitation for assets that are in the poor to critical category. The renewal budget is sufficient to renew all required assets within the next 10-year period. The current level of service is adequate. 10-yr renewal budget is sufficient to maintain the required renewals. Budget $2,451,211 $2,451,211 Disposal Remove bridges, culverts & retaining walls from service. Critical assets may be removed if sufficient budget is not No disposals currently planned. No disposals are recommended in the 10- year plan. 10 IPWEA, 2015, IIMM, p 2|28. 64 Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** Decommission or disposal. provided to maintain the asset in satisfactory condition or if the asset is no longer needed. Budget $0 $0 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 4.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 4.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 4.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 4.9.3. 4.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 4.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. Opportunities identified to manage demand are shown in Table 4.9.3. Further opportunities will be developed in future revisions of this AM Plan. Table 4.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 Population is expected to increase by approximately 7,130 people by 2036. Increased traffic volumes, heavier vehicle loads, greater stormwater runoff from new developments, more frequent blockages, higher land use AMP for long-term tracking and decision-making, Preventive Maintenance Plans to extend asset life, Capital Improvement Plans for future upgrades, and Risk and Climate Adaptation Plans to 65 pressures, more frequent replacements. address vulnerabilities and changing conditions. 4.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 4.13. Acquiring new assets will commit the Town of Tillsonburg to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 4.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.11 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 4.9.5. Table 4.9.5 Managing the Impact of Climate Change on Assets and Services Climate change risk Projection Impact on services Climate Change Management Plan Increasing temperatures and more frequent temperature fluctuations between extreme heat and cold. The temperature in summer months are expected to be hotter with more extreme heat periods. Winter temperatures are also rising which causes fluctuation from freezing to warmer temperatures in a short period of time. Bridge structures built in this area may not have been designed to withstand extreme heat for long periods. Structure corrosion, concrete expansion, buckling bridge girders, cracking and crushing of bridge decks put more stress on the structure. Freezing and thawing also contributes to the deterioration of bridges. Also, increased thermal cycling can cause stresses more frequently, thereby increasing the deterioration impacts on the structure and lessen its life cycle. Review and implement various rehabilitation methods and materials that are more resilient to fluctuating temperatures. Monitor OSIM inspection reports to maintain safe structures. Extreme Precipitation Heavy precipitation can result in flooding, weakening or wash out the soil and culverts that support roads and bridges. Corrosion of the assets occurs Heavy precipitation can flood or leave debris on roadways, disrupting transit, and leading to premature pavement deterioration. Building seawalls or using permeable paving surfaces to reduce run-off during heavy rainfalls. 11 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 66 sooner due to prolonged moisture exposure. Freeze-thaw Cycles Higher frequency of freeze-thaw cycles. More frequent freeze-thaw cycles are causing faster wear and tear on bridges and culverts, increasing the need for ongoing maintenance and timely replacement. Prioritize regular inspections, implement resilient design standards, and adjust maintenance schedules to address emerging risks and extend asset life. Water Level Rise Increased water levels due to climate change are expected to place greater stress on bridges, culverts, and retaining walls. Frequent overtopping, scouring, erosion, and structural instability. Design standards, capacity requirements, and maintenance strategies will need to adapt to account for higher flow volumes, increased hydraulic pressures, and greater exposure to extreme weather events. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change;  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 4.9.6 summarizes opportunities to build climate change resilience into new and existing assets. Table 4.9.6 Building Climate Change Resilience into New Assets Asset Description Climate change risk Resilience Plan for New Assets Structure Structure stresses from extreme weather events, increased precipitation, snow load, ice formation and storm surges. Increase structure load capacity and increase height clearance to accommodate rising water levels and storm surges. Add redundancy and robustness to components to prevent failure. Surface Fluctuations in temperatures with increased frost, ice formation and snowfall will require more treatments on the surface due to expanding and contracting. Use materials that are durable, corrosion-resistant, and low- maintenance. Avoid materials that are prone to cracking, buckling, or warping due to thermal expansion and contraction. Apply protective coatings or treatments to enhance the resistance of materials to moisture, salt, and chemicals. Maintenance Service disruptions or closures due to more frequent precipitation/winter weather events. Increase winter maintenance budget to allow for more frequent maintenance. Adopt a more proactive and adaptive approach i.e. through anti-icing/salting or new technologies to monitor conditions. The impact of climate change on new and existing assets is evolving and new opportunities will be developed in future revisions of this AM Plan. 67 4.10 Lifecycle Management Plan The lifecycle management plan details how the Town of Tillsonburg plans to manage and operate the assets at the agreed levels of service throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximise the value of the assets while minimising costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover:  Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement).  Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost- effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 4.10. Figure 4.10: Asset Lifecycle Activities 4.10.1 Background Data Physical parameters - the assets covered by this AM Plan are shown in Table 4.10.1. 68 Table 4.10.1: Assets covered by this Plan Asset Category Dimension Replacement Value Bridges 2 Vehicular Bridges 6 Pedestrian Bridges $12,308,000 Culverts 7 > 3m Span 39 < 3m Span $23,924,000 Retaining Walls 10 > 1m in Height $11,519,000 Total $47,751,000 Average Age 36 Years .1sset Age Profile The age profile of the assets included in this AM Plan are shown in Figure 4.10.1. Figure 4.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation). The chart shows that significant investments in the bridges & culvert network were made in peak years such as early 1950’s through to mid-1970’s, 1994, 1998-2000, 2006, and 2009, indicating large-scale construction or reconstruction during those periods. As many of these assets approach or exceed their typical useful lives, the Town can expect upcoming peaks in renewal needs, highlighting the importance of proactive planning to manage aging infrastructure and avoid costly deferred maintenance. 4.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 4.10.2. Table 4.10.2: Known Service Performance Deficiencies Location Service Deficiency No known service performance deficiencies N/A The above information regarding service deficiencies was provided by the Manager of Engineering. 69 4.10.3 Asset Condition Condition is currently monitored bi-annually (every 2 years) through Ontario Structure Inspection Manual (OSIM) inspections that are completed by retained consultants providing an overall Bridge Condition Index (BCI) rating. The OSIM inspections are a high-level visual inspection completed on the structures and do not always identify the true needs of the structure. Structures that are in poor/very poor condition thus require further investigation. Condition is measured using a 1 – 5 grading system12 as detailed in Table 5.1.3. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1 – 5 grading scale for ease of communication. Table 4.10.3: Condition Grading System Condition Grading BCI Rating Description of Condition 5 70 to 80 Very Good: free of defects, only planned and/or routine maintenance required 4 60 to 69 Good: minor defects, increasing maintenance required plus planned maintenance 3 50 to 59 Fair: defects requiring regular and/or significant maintenance to reinstate service 2 40 to 49 Poor: significant defects, higher order cost intervention likely 1 <40 Very Poor: physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 4.10.3. Figure 4.10.3: Asset Condition Profile 46% of all bridges, culverts and retaining walls are rated in the “good” or “very good” condition rating. OSIM inspections are completed bi-annually by 3rd party consultants. 4.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. 12 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 70 Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets are shown in Table 4.11. Table 4.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $13,000 2025 $8,860 2026 $9,125 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 4.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The Town has not developed a service hierarchy for this asset class. 4.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 4.11.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Figure 4.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). 71 The current operating and maintenance budget is sufficient for existing bridges, culverts and retaining wall assets. 4.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The typical useful lives of assets used to develop projected asset renewal forecasts are shown in Table 4.12. Asset useful lives will be reviewed with the asset inventory re-structure and clean-up. Table 4.12: Useful Lives of Assets Asset (Sub)Category Useful life Bridges 50 to 115 Years Culverts 40 to 80 Years Retaining Walls 40 to 70 Years The estimates for renewals in this AM Plan were based on the alternate method. 4.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either:  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).13 It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide the equivalent service.14 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 4.12.1. Table 4.12.1: Renewal Priority Ranking Criteria Criteria Weighting Safety 70% 13 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 14 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 72 Criteria Weighting Performance 20% Appearance 5% Cost 5% Total 100% 4.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 4.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. Figure 4.12.2: Forecast Renewal Costs Amounts are shown in real values (i.e., current values, net of inflation). Over the 10-year period the proposed renewal budget is sufficient to meet the forecast renewal costs. 4.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social or environmental needs. Assets may also be donated to the Town of Tillsonburg. 4.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals can then be ranked by priority and available funds and scheduled in future works programmes. 73 The Town does not currently follow a priority ranking criteria for acquired assets for the bridges and culverts asset class. 4.13.2 Summary of future asset acquisition costs Forecast acquisition indicates no additional bridges, culverts or retaining walls are planned to be acquired over the 10-year period. Should the Town commit to new assets, it must be prepared to fund future operations, maintenance and renewal costs. It must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisitions, it is useful to consider the cumulative value of the acquired assets. Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. 4.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 4.14. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 4.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 4.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings No bridges, culverts or retaining wall assets have been identified for possible decommissioning or disposal in the 10-year plan. N/A N/A N/A N/A 4.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 4.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. 74 Figure 4.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). The budget trend peaks in 2025 for the proposed Kinsmen Bridge replacement project. The decrease in budget from 2031 to 2034 is due to no forecasted renewal expenditures. 4.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: ‘coordinated activities to direct and control with regard to risk’15. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 4.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 4.16.1. Failure modes may include physical failure, collapse or essential service interruption. Table 4.16.1 Critical Assets 15 ISO 31000:2009, p 2 75 Critical Asset(s) Failure Mode Impact Bridges Unsafe Out of Service Culverts Blockage Flooding Retaining Walls Displacement Adjacent Land Use By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 4.16.2 Risk Assessment The risk management process used is shown in Figure 4.16.2 below. It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. Fig 4.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 4.16.2. It is essential that these critical risks and costs are reported to management and the Council of the Town of Tillsonburg. 76 Table 4.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Bridges Structural failure, corrosion, overloading, erosion at abutments/piers H Biennial OSIM inspections, load posting and weight monitoring. Preventive maintenance, rehabilitation or replacement plans. Install scour protection. M $75,000 to $500,000 Culverts Blockage, flooding, erosion, washout, structural failure H Biennial OSIM inspections, periodic cleaning, rehabilitation or replacement plans. L $75,000 to $200,000 Retaining Walls Structural failure H Biennial OSIM inspections, rehabilitation or replacement plans. M $75,000 to $200,000 Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 4.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions to ensure continuity of service. Resilience includes recovery planning, financial capacity, climate change risk assessment and crisis leadership. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 4.16.4 Service and Risk Trade-Offs The decisions made in adopting this AM Plan are based on the objective of achieving the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  There are no known operations, maintenance, and/or capital project activities that cannot be completed as planned Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include:  N/A Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include:  N/A These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. 77 5.0 STORMWATER NETWORK This section details information about the stormwater network asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 5.1 Asset Categories/Description The bridges & culverts asset class comprises: Stormwater Mains – 84,100 m Manholes - 1213 Catch Basins - 2584 Catch Basin Leads - 2760 Inlets – 41 Oil & Grit Separators – 7 Storm Management Ponds – 121,618 m2 The above infrastructure assets have replacement value estimated at $86,735,992. 5.2 Strategic and Corporate Goals Aligned with the Town’s strategic vision, mission, and service objectives, stormwater networks serve as vital infrastructure for collecting and conveying rainfall runoff to mitigate flooding, protect public safety, and shield roads and buildings from water damage. They also enhance water quality by channelling runoff through treatment or natural filtration before it enters waterways. The following table summarizes the relevant goals and objectives and how they are addressed for the stormwater network asset class. Table 5.2: Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in the AM Plan The Town of Tillsonburg will accommodate and support sustainable growth. Ensure Stormwater infrastructure is designed and maintained to manage runoff from major events Targeted upgrades, ensuring sufficient capacity and green infrastructure. An overall tributary area will be done for the town to highlight insufficient areas. Tillsonburg residents and businesses will be connected to each other, regional networks, and the world through effective traditional and digital infrastructure. Regularly inspect and rate asset condition. Maintain an accurate asset inventory with condition assessments and maintenance history. Have a coherent storm network that works in unison with other assets. Inspection to occur more frequently, and a proper inventory is to be held to ensure accurate history of the Towns storm assets. Design new storm segments with a network as a whole in mind. 5.3 Legislative Requirements As discussed in section 2.4 there are legislative requirements that are related to the management of all assets. The following requirements are specific to the bridges & culverts asset class. 78 Table 5.3: Bridges & Culverts - Legislative Requirements Legislation Requirement Drainage Act and Conservation Authorities Act, R.S.O. 1990. https://www.ontario.ca/page/drainage-act-and- conservation-authorities-act-protocol-0 The Drainage Act governs the creation, improvement, and maintenance of municipal drainage systems, mainly in rural and agricultural areas. 5.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when the Town of Tillsonburg commits to the upgrade of existing and acquisition of new assets, future operations, maintenance and renewal costs including depreciation will increase. 5.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $7,490,316 or $749,032 on average per year. Depreciation is excluded from these cost estimates. 5.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $8,573,626 or $857,363 on average per year which is approximately 114.46% of the cost to undertake the lifecycle activities. The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organization delivers the services in a financially sustainable manner. The 10-year LTFP results in a surplus of $108,331 on average per year of the forecast lifecycle costs required to provide services. This is shown in the figure below. Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). 79 We plan to provide stormwater network services for the following:  Operation, maintenance, renewal and acquisition of storm mains, manholes, catch basins, catch basin leads, inlets, oil and grit separators, and storm management ponds to meet service levels set by Council in annual budgets.  Complete various storm reconstruction projects, new storm servicing and SWM pond maintenance within the 10-year planning period. 5.4.3 What we cannot do We currently allocate enough budget to sustain services at the proposed standard including the provision of new assets. Works and services that cannot be provided under present funding levels are:  There are no known operations, maintenance, and/or capital project activities that cannot be completed as planned 5.5 Risk Management The planned budget is sufficient to continue to manage risks in the medium term. The main risk consequences are:  There are currently no risk consequences identified. Strategies and actions to manage these risks are discussed in Section 6.0. 5.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $857,363 on average per year giving a 10 year funding surplus of $108,331 per year. This indicates that 114.46% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are assumed. 5.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  The Town is projects to assume ownership of stormwater assets from subdivision developments totalling approximately $19,946,202 over the 10-year period. The Alternate Method utilizing information from the 10-year capital plan was used to forecast the renewal lifecycle costs for this AM Plan. This AM Plan is based on a low level of confidence in the asset information. The next steps resulting from this AM Plan to improve asset management practices are:  Conduct formal condition assessments on stormwater assets. 5.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers the infrastructure assets that provide critical stormwater management services to the community by safely collecting and directing runoff. These systems help reduce flooding, protect infrastructure, and prevent environmental damage. Levels of service focus on system performance during storm events, public safety, environmental protection, regulatory compliance, and meeting community expectations. 80 The current levels of service are determined based on the system’s ability to manage rainfall events, routine maintenance practices, and compliance with regulatory requirements. The stormwater network generally performs well under normal conditions, with some limitations during extreme weather. The allocation in the planned budget is sufficient to continue providing these services at current levels for the planning period. The main service consequences of the planned budget are:  There are currently no service consequences identified. 5.8.1 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The Town has undertaken a customer satisfaction survey asking the citizens questions on the condition, function and capacity of stormwater assets. Table 5.8.1 summarises the results from the stormwater assets section of the Customer Satisfaction Survey. Table 5.8.1: Customer Satisfaction Survey Levels – Stormwater Performance Measure Condition/Function/Capacity Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Stormwater Conveyance Assets 16% 78% 4% 2% Stormwater Management Ponds 15% 76% 6% 3% 5.8.2 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. Customer Values indicate:  what aspects of the service is important to the customer,  whether they see value in what is currently provided and  the likely trend over time based on the current budget provision Table 5.8.2: Customer Values Service Objective: To provide reliable stormwater management that minimizes flooding, protects property, and meets community expectations. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Storm Conveyance Assets Storm system is functioning as designed to convey storm flows 2025 AMP Survey 94% of respondents are satisfied with the condition, function and capacity of the storm network. Expected to maintain trend Stormwater Management Ponds (SWM pond) SWM pond is functioning as designed to attenuate storm flows 2025 AMP Survey 91% of respondents are satisfied with the condition, function and capacity of the storm network. Expected to maintain trend 81 5.8.3 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? In Table 5.8.3 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. Table 5.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Condition of Assets CCTV, Flow Monitoring, and/or Lidar # of Service Requests/Complaints received annually related to the structure, condition and any safety concerns. Condition data for the stormwater network is outdated. No service requests received regarding the condition of storm network assets. With the 10-year capital budget, it is expected that the overall condition will be monitored following the 2026 Stormwater Master Plan. Confidence levels Low - Professional Judgement with no data evidence. Medium - Professional judgement supported by data sampling Function Assets are functional and able to provide the intended service to the community Network cohesion Tributary area map/ calcs Flow monitoring Overall storm network is collecting storm water as it should. CCTV shows networks working and collecting in cohesion. 8 service requests received/completed in 2024 regarding the function. With the 10-year capital budget, it is expected that the overall function will remain the same. Confidence levels Medium - Professional judgement supported by data sampling Medium - Professional judgement supported by data sampling Capacity Assets are able to meet community demand Continue requirements of design sheets and flow monitoring when required Minimal backup in high storm events Identified areas of insufficient capacity With the 10-year capital budget, it is expected that the overall capacity will remain the same. Confidence levels Medium - Professional judgement supported by data sampling Medium - Professional judgement supported by data sampling 82 5.8.4 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Service and asset managers plan, implement and control technical service levels to influence the service outcomes.16 Table 5.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. Table 5.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet demand Number of assets being assumed from new subdivision development. No stormwater network assets being assumed in 2025. Recommended to follow the current process which is to add assets to the inventory once assumption by-laws are approved by Council. Budget $0 $0 Operations Regular activities to ensure that the stormwater system functions effectively and reliably. Regular internal inspections, CCTV inspections, cleaning, debris, sediment and obstruction removal. The Town does not have a formal stormwater management program. Curren t budget allows staff to complete some preventative maintenance as well as reactive activities from service requests. Stormwater Master Plan is scheduled for development in 2026. This plan will serve as a foundational guide for establishing and implementing a comprehensive stormwater program. Budget $55,623 $58,464 Maintenance Ensure reliable drainage, prevent flooding, protect infrastructure, and support environmental compliance. Structural repairs, cracks, corrosion, joint separation, pipe replacement, leak sealing, re-setting lids, Modu-loc replacement. The current budget is sufficient for staff to undertake maintenance activities on a re- active basis. Recommended budget requirements and levels of service will be established once the Stormwater Management Program has been implemented. Budget $58,164 $61,479 Renewal Return storm networks to the service capacity to which they Full replacement or major rehabilitation for assets that are in the The renewal budget is sufficient to renew most The current level of service is adequate. 10-yr renewal budget is 16 IPWEA, 2015, IIMM, p 2|28. 83 Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** provided when first put into service while accommodating increased needs. poor to critical category. Relining could be an option in some cases. required assets within the next 10-year period. sufficient to maintain the required renewals. Budget $743,576 $743,576 Disposal Decommission water pipes and structures out of service. Critical assets may be removed if sufficient budget is not provided to maintain the asset in satisfactory condition or if the asset is no longer needed. No disposals currently planned. No disposals are recommended in the 10- year plan. Budget $0 $0 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 5.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 5.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 5.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 5.9.3. 5.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 5.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. Opportunities identified to manage demand are shown in Table 5.9.3. Further opportunities will be developed in future revisions of this AM Plan. 84 Table 5.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 (As per Economic Development Commissioner) Population is expected to increase by approximately 7130 people by 2036. Increased traffic volumes, heavier vehicle loads, greater stormwater runoff from new developments, more frequent blockages, higher land use pressures, more frequent replacements. AMP for long-term tracking and decision-making, Preventive Maintenance Plans to extend asset life, Capital Improvement Plans for future upgrades, and Risk and Climate Adaptation Plans to address vulnerabilities and changing conditions. 5.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 5.13. Acquiring new assets will commit the Town of Tillsonburg to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 5.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.17 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 5.9.5. Table 5.9.5 Managing the Impact of Climate Change on Assets and Services Climate Change Description Projected Change Potential Impact on Assets and Services Management Increasing temperatures and more frequent temperature fluctuations between extreme heat and cold. The temperature in summer months are expected to be hotter with more extreme heat periods. Winter temperatures are also rising which causes fluctuation from freezing to warmer temperatures in a short period of time. Climate change will result in an increase in the frequency and intensity of storms, leading to increased stormwater runoff, and potentially overwhelming the systems' capacity Review and implement design standards for storm systems that can handle increased rainfall intensity, more frequent extreme events and potential changes to seasonal rainfall patterns. More Intense Rainfall Events Warmer air holds more moisture, which means when it rains it rains harder which leads to sudden, heavy downpours The 100-year storm values, 20-year storm values etc., will change and effect design sheet calculations Confirm that design sheets reflect updated design storms values 17 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 85 Climate Change Description Projected Change Potential Impact on Assets and Services Management rather than steady, moderate rain Upgrade insufficient storm systems to handle larger storms Infrastructure Strain and Damage Increased volume of runoff pushes storm systems to their max capacity Pipes, culverts and drainage systems are being pushed to their limits Ensure storm designs have a safety factor so small changes in the design storm will not push the system over capacity. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change;  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 5.9.6 summarizes opportunities to build climate change resilience into new and existing assets. Table 5.9.6 Building Climate Change Resilience into New Assets New Asset Description Climate Change impact These assets? Build Resilience in New Works Low Impact Development (LID) LID is a land development approach that minimizes the negative environmental impacts of urbanization by managing stormwater runoff where it falls, mimicking natural processes. It focuses on preserving natural features, reducing impervious surfaces, and using practices that slow down, spread out, and soak in rainwater, ultimately improving water quality and reducing runoff volume. Consider the implementation of LID’s into future designs pending suitability, cost effectiveness, life expectancy etc. Larger storm mains in new developments Can collect more runoff more efficiently compared to smaller designed pipes. As storm systems are being designed, it is critical to look ahead at the trends of the design storms and adjust them so capacity is sufficient the whole life cycle. The impact of climate change on new and existing assets is evolving and new opportunities will be developed in future revisions of this AM Plan. 5.10 Lifecycle Management Plan The lifecycle management plan details how the Town of Tillsonburg plans to manage and operate the assets at the agreed levels of service throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximise the value of the assets while minimising costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover:  Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). 86 o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement).  Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost- effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 5.10. Figure 5.10: Asset Lifecycle Activities 5.10.1 Background Data Physical parameters - the assets covered by this AM Plan are shown in Table 5.10.1. Table 5.10.1: Assets covered by this Plan Asset Category Dimension Replacement Value Stormwater Mains 84,100 m $48,700,200 Manholes 1213 $10,264,100 Catch Basins 2584 $9,552,600 Catch Basin Leads 2760 $9,014,600 Inlets 41 $188,600 Oil and Grit Separator 7 $454,200 Storm Management Ponds 121,618 m2 $8,561,692 Total $86,735,992 Average Age 32 Years .1sset Age Profile The age profile of the assets included in this AM Plan are shown in Figure 5.10.1. 87 Figure 5.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation). The chart shows that significant investments in the road network were made in peak years such as 1977, 1990, 2008 indicating large-scale construction or reconstruction during those periods. As many of these assets approach or exceed their typical useful lives, the Town can expect upcoming peaks in renewal needs, highlighting the importance of proactive planning to manage aging infrastructure and avoid costly deferred maintenance. 5.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 5.10.2. Table 5.10.2: Known Service Performance Deficiencies Location Service Deficiency No known service performance deficiencies. N/A The above information regarding service deficiencies was provided by the Manager of Engineering. 5.10.3 Asset condition There is currently no formal process in place for monitoring the condition of stormwater network assets. Future versions of this asset management plan will include their condition. This has been noted in the improvement plan section later in this document. 5.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. 88 Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets are shown in Table 5.11. Table 5.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $56,862 2025 $58,164 2026 $59,909 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 5.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The Town has not developed a service hierarchy for this asset class. 5.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 5.11.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Figure 5.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). 89 The current operating and maintenance budget is sufficient for existing stormwater network assets. Assumed assets will increase operating and maintenance costs over the 10-year period which will require more budget dollars or will result in a decline in the level of service. 5.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The typical useful lives of assets used to develop projected asset renewal forecasts are shown in Table 5.12. Asset useful lives will be reviewed with the asset inventory re-structure and clean-up. Table 5.12: Useful Lives of Assets Asset (Sub)Category Useful life Storm Mains 75 Years Manholes 75 Years Catch Basins 75 Years Catch Basin Leads 75 Years Inlets 75 Years Oil and Grit Separator 75 Years Storm Management Ponds 150 Years The estimates for renewals in this AM Plan were based on the 10-year capital budget. 5.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either:  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).18 It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide the equivalent service.19 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 5.12.1. 18 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 19 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 90 Table 5.12.1: Renewal Priority Ranking Criteria Criteria Weighting Condition 30% Likelihood of Failure 30% Consequence of Failure 30% Cost 10% Total 100% 5.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 5.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. Figure 5.12.2: Forecast Renewal Costs Amounts are shown in real values (i.e., current values, net of inflation). Over the 10-year period the proposed renewal budget is sufficient to meet the forecast renewal costs. 5.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social or environmental needs. Assets may also be donated to the Town of Tillsonburg. 5.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new 91 work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. As the Town assumes most assets in the stormwater network class, the Town does not currently use a priority ranking criteria. 5.13.2 Summary of future asset acquisition costs Forecast acquisition asset costs are summarised / summarized in Figure 5.13.2 and shown relative to the proposed acquisition budget. The forecast acquisition capital works program is shown in Appendix A. Figure 5.13.2: Acquisition (Constructed) Summary Amounts are shown in real values (i.e., current values, net of inflation). When an Entity commits to new assets, they must be prepared to fund future operations, maintenance and renewal costs. They must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the Entity. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 5.13.3. Figure 5.13.3: Acquisition Summary Amounts are shown in real values (i.e., current values, net of inflation). 92 Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. All acquired stormwater network assets are donated through assumption by-laws at the completion of a subdivision development. 5.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 5.5. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 5.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 5.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings No stormwater network assets have been identified for possible decommissioning or disposal in the 10-year plan. N/A N/A N/A N/A 5.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 5.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. Figure 5.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). 93 The budget trend increases slightly over the 10-year period while the renewals fluctuate with project scope. 5.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: ‘coordinated activities to direct and control with regard to risk’20. An assessment of risks21 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 5.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 5.16.1. Failure modes may include physical failure, collapse or essential service interruption. Table 5.16.1 Critical Assets Critical Asset(s) Failure Mode Impact Storm Mains Blockages from debris/roots, collapse, joint failure. System-wide or localized flooding, road or property damage, environmental contamination. Manholes Structural failure from corrosion or cracks, infiltration/inflow, missing or damaged covers. Loss of system access, sewer overflow, public safety hazard. Catch Basins Grate clogging, sediment build- up, structural deterioration. Surface flooding, reduced flow to storm mains, trip or fall hazards. Oil and Grit Separators Clogging with sediment/oil, structural failure, lack of maintenance. Pollution of receiving waters, decreased separator efficiency, non-compliance fines. Storm Management Ponds Outlet structure blockage, sediment accumulation, bank failure or erosion. Downstream flooding, poor water quality, regulatory violations. By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 5.16.2 Risk Assessment The risk management process used is shown in Figure 5.16.2 below. 20 ISO 31000:2009, p 2 21 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 94 It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. Fig 5.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks22 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 5.16.2. It is essential that these critical risks and costs are reported to management and the Council of the Town of Tillsonburg. Table 5.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Storm Mains Structural failure, blockages, or surcharging due to under sizing, aging, high rainfall volumes, or population growth. VH Capacity upgrades through pipe replacement, proactive condition assessments and inspections using M $500,000 to $2,000,000 (depending on size/length for replacement); $250,000 inspection program. 22 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 95 Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs CCTV, prioritize high-risk areas for replacement. Catch Basins and Leads Blockages or structural failure causing local ponding or backups due to under sizing, debris, sediment, or collapse. H Scheduled cleaning and inspection program, replacement of damaged leads, invest and implement a program to install catch basin inserts (i.e. trash guards, drain guards, insert filters). M $5,000 to $10,000 per catch basin with lead for replacement. $200,000 to $400,000 inspection program and inserts. Manholes Infiltration or structural failure due to groundwater, corrosion, or aging. H Structural renewal (i.e. lining, re-parging), scheduled inspection program, replace failing units. M $5,000 to $10,000 per manhole for replacement. $250,000 inspection program. Ditch Inlets Clogging or erosion from heavy runoff or debris. H Scheduled cleaning and inspection program, vegetation control, stabilize area with erosion protection (i.e. rip-rap) as needed, replace failing units. M $5,000 to $7,000 per ditch inlet for replacement. $150,000 inspection program and maintenance. Stormwater Management Ponds (SWMPs) Sediment buildup, vegetation overgrowth, or functional failure reducing storage and performance. VH Install staff gauges and implement monitoring program to measure water levels, annual maintenance plan, dredging program every 20 years to manage sediment accumulation. M $200,000 to $400,000 per pond for monitoring, inspection, maintenance, and dredging program. Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 5.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 5.16.4 Service and Risk Trade-Offs The decisions made to adopt this AM Plan are based on the objective of achieving the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  There are no identified operations, maintenance, and/or capital project activities that cannot be completed. 96 Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include:  N/A Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include:  N/A These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. 97 6.0 FACILITIES This section details information about the facilities asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 6.1 Asset Categories/Description The facilities asset class comprises the following: Recreation Facilities – 4 Fairground Facilities - 5 Museums/Cultural Heritage – 2 Administration Offices - 1 Cemetery - 2 Public Works - 1 Airport - 1 Fire - 1 OPP - 2 Other (Clock Tower, Library Lane Covered Walkway) - 2 The above infrastructure assets have replacement value estimated at $103,777,329. 6.2 Strategic and Corporate Goals In alignment with the Town’s strategic vision, mission, and service delivery objectives, municipal facilities are vital assets that support the effective delivery of public services, foster community engagement, and ensure the health, safety, and well-being of residents and staff. These facilities—including administrative buildings, community centres, fire halls, public works depots, and recreation venues—enable efficient operations, provide accessible public spaces, and contribute to the overall quality of life. They play a key role in supporting emergency response, recreation, governance, and other essential municipal functions. The following table summarizes the relevant goals and objectives and how they are addressed for the facilities asset class. Table 6.2: Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in the AM Plan Enhancement of Lifestyle and Amenities for Tillsonburg Residents and other Users Within the community Tillsonburg will strive to offer all residents the amenities, services and attractions they require to enjoy balanced lifestyles. Update municipal sports facilities consistent with modern standards. Develop a robust, long-term asset management plan to inform evidence-based decisions regarding the maintenance, rehabilitation and replacement of community facilities. Increase opportunities to enjoy culture, events and leisure activities in Tillsonburg. 98 Goal Objective How Goal and Objectives are addressed in the AM Plan Maintain and enhance programs and facilities to support an active, engaged senior population. Maintain and enhance programs and facilities to support an active, engaged youth population. Target new programs, services, amenities and attractions that will be a magnet for young families. Expand community partnerships in the delivery of programs and amenities. Improved Customer Service, Communication and Engagement The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and opportunities to shape municipal initiatives. Continue to develop digital service delivery while maintaining counter and telephone channels. Increase opportunities and promotion for public engagement in municipal initiatives. Engage community groups, including advisory committees and service organizations, in shaping municipal initiatives. Advocate for community needs with other levels of government. Prepare for Upcoming Community Growth The Town of Tillsonburg will accommodate and support sustainable growth. Plan and develop a long-term financing strategy for new services and infrastructure to support growth. Follow the recommendations in the Recreation Master Plan for future capital expenses relating to community growth. Finding alternative uses and programs to better utilize existing facilities. 6.3 Legislative Requirements As discussed in section 2.4 there are legislative requirements that are related to the management of all assets. The following requirements are specific to the facilities asset class. Table 6.3: Facilities - Legislative Requirements Legislation Requirement Canadian Standards Association, B52– 13 Mechanical Refrigeration Code https://scc- ccn.ca/standardsdb/standards/4027251 Establishes safety standards for the design, installation, operation, and maintenance of mechanical refrigeration systems in facilities. Building Code Act, 1992, S.O. 1992, c. 23 https://www.ontario.ca/laws/statute/92b23 Compliance with the Act with respect to ownership and responsibilities of the Town when constructing new/existing buildings. Ontario Fire Code O.Reg. 213/07 https://www.ontario.ca/laws/regulation/070213 Compliance with the Act with respect to a set of minimum requirements for fire safety within and around existing buildings and facilities. Elevating Devices O.Reg 209/01 under Technical Standards and Safety Act, 2000 https://www.ontario.ca/laws/regulation/010209 Compliance with the Act and regulation with respect to ownership and responsibilities of elevating devices including, but not limited to, annual inspections and licensing. 99 Electrical Safety Code O.Reg. 164/99 under Electricity Act, 1998 https://www.ontario.ca/laws/regulation/990164 Compliance with the Act and regulation with respect to ownership and responsibilities of buildings including, but not limited to, annual inspections. 6.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when the Town of Tillsonburg commits to the upgrade of existing and acquisition of new assets, future operations, maintenance and renewal costs including depreciation will increase. 6.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $130,736,832 or $13,073,683 on average per year. Depreciation is excluded from these cost estimates. 6.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $90,586,048 or $9,058,605 on average per year which is approximately 69.29% of the cost to undertake the lifecycle activities. The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organization delivers the services in a financially sustainable manner. The 10-year LTFP results in a shortfall of $-4,015,078 on average per year of the forecast lifecycle costs required to provide services. This is shown in the figure below. Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). 100 We plan to provide facility services for the following:  Operation, maintenance, renewal and acquisition of all municipal facilities to meet service levels set by Council through annual budgets.  Complete several facility component renewals, rehabilitations and new acquisitions, such as the Town hall project within the 10-year planning period. 6.4.3 What we cannot do We currently do not allocate enough budget to sustain services at the proposed standard including the provision of new assets. Works and services that cannot be provided under present funding levels are:  Complete all recommended renewal projects within the 10-year planning period.  Undertake all new facility acquisitions proposed in the 10-year budget. 6.5 Risk Management The planned budget is insufficient to continue to manage risks in the medium term. The main risk consequences are:  Higher repairs and maintenance costs  Level of service decline  Service interruption  Revenue generation loss  Safety of citizens and staff Strategies and actions to manage these risks are discussed in Section 6.16. 6.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $9,058,605 on average per year giving a 10 year funding shortfall of $-4,015,078 per year. This indicates that 69.29% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are added. 6.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  Population is expected to increase by approximately 7130 people by 2036.  Acquisition budgets are partially funded through development charges which are only available if the expected growth occurs. The Alternate Method utilizing information from the 10-year capital budget was used to forecast the renewal lifecycle costs for this AM Plan. This AM Plan is based on a low level of confidence in the asset information. The next steps resulting from this AM Plan to improve asset management practices are:  Staff-conducted inspections of all facilities to help gain a comprehensive understanding of their current conditions.  Staff review of building condition assessments to prioritize recommended renewals. 101 6.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers the infrastructure assets that support the delivery of essential municipal services, community well-being, and administrative functions. Municipal facilities provide safe, accessible, and efficient spaces for public engagement, staff operations, emergency response, and recreational activities—contributing to service continuity, quality of life, and organizational resilience. The current levels of service for municipal facilities reflect the Town’s commitment to providing safe, functional, and accessible spaces that support the delivery of core services and community programs. Facilities are maintained to meet regulatory requirements, health and safety standards, and operational needs. This includes ensuring appropriate building condition, cleanliness, security, energy efficiency, and accessibility. Performance is monitored through routine inspections, user feedback, and service request tracking to ensure that facilities continue to meet the needs of staff, residents, and stakeholders. The allocation in the planned budget is insufficient to continue providing these services at current levels for the planning period. The main service consequences of the planned budget are:  Decline in facility condition  Reduced availability and reliability  User dissatisfaction and more frequent complaints 6.8.1 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The Town has undertaken a customer satisfaction survey regarding the overall condition, capacity and function of its facility assets through an online survey over a three (3) week period. Table 6.8.1 summarizes the results from our Customer Satisfaction Survey. Table 6.8.1: Customer Satisfaction Survey Levels - Facilities Performance Measure Overall Condition/Function/Capacity Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Corporate Offices & Customer Service Centre 12% 56% 20% 12% Community Centre 18% 58% 21% 3% Cemetery 7% 62% 17% 14% Annandale National Historic Site 29% 65% 4% 2% Station Arts Centre 33% 60% 5% 2% Fire Hall 24% 62% 7% 7% OPP Station 28% 64% 5% 3% Tillsonburg Airport 27% 63% 7% 3% Public Works 3% 58% 30% 10% Lake Lisgar Water Park 16% 73% 11% 0% 6.8.2 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. 102 Customer Values indicate:  what aspects of the service is important to the customer,  whether they see value in what is currently provided and  the likely trend over time based on the current budget provision Table 6.8.2: Customer Values Service Objective: To provide safe, reliable, accessible, and functional spaces that support effective service delivery and meet community expectations. The Town strives to ensure buildings are compliant with regulations, welcoming in appearance, and operated with minimal disruptions to enhance user experience and public trust. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Condition – Well- maintained, clean, attractive facilities for visitors and staff. 2025 AMP Survey # of complaints received from service requests 82% of survey respondents are satisfied with the overall condition, function and capacity of all facilities. Expected trend will remain the same. Functionality – Provide essential services and resources to support the needs/wants of its users. 2025 AMP Survey # of complains received from service requests Expected trend will remain the same. Capacity – Provide the correct number of facilities to accommodate the number of users. 2025 AMP Survey # of complaints from service requests Expected trend will decrease as growth continues. Facilities are becoming busier, and capacity will become an issue if additional facilities/space do not become available. Hours of Operation – Facilities readily open for business. # of complaints received from service requests 1 complaint/issue received through service requests regarding hours of operation. Expected trend will remain the same. Safety & Security – Ensuring a safe and secure environment for visitors and staff. # of complaints received from service requests 6 complaints/issues received through service requests regarding security Expected trend will improve as additional security guards should be in place by 2026. Accessibility – Facilities should be inclusive and barrier- free for all users. # of Service Requests received relating to facility accessibility issues. 3 complaints/issues received through service requests regarding accessibility. Increase in complaints regarding facility accessibility due to current/future legislation requirements. 6.8.3 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? In Table 6.8.3 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. 103 Table 6.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Condition of facilities Building Condition Assessment Building Condition Index - Overall Condition of 4.1 which is classified as “Good” condition. With the 10-year renewal program, it is expected that the overall condition will decline based on the planned budget. Confidence levels Medium - Professional judgement supported by data sampling. High - Professional Judgement supported by extensive data. Current internal resources have better knowledge to prioritize recommended repairs from BCA’s in the future. Function Facilities are functional and provide essential services and resources to support the needs/wants of its users. Internal & External user feedback - Service Requests Staff Input 6 service requests received regarding the overall functionality of all facilities. The expected trend will remain the same. The functionality over 10 years will not change. Confidence levels Medium - Professional judgement supported by data sampling. Medium - Professional judgement supported by data sampling. Capacity Facilities have the capacity and are capable of handling current demand. Internal & External user feedback - Service Requests Staff Input - # of facility bookings 4 service requests received regarding the overall capacity of all facilities. The trend will decrease over time as the population grows, and the number of users increases. Confidence levels Medium - Professional judgement supported by data sampling. High - Professional Judgement supported by extensive data. 6.8.4 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Service and asset managers plan, implement and control technical service levels to influence the service outcomes.23 Table 6.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. 23 IPWEA, 2015, IIMM, p 2|28. 104 Table 6.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet demand – increased level of service. Number of planned new facilities or upgrades to facilities. No acquisitions for the current budget. New Town Hall Facility, Expansion and Renovation to Fire Hall, Public Works, Multi-use rec centre, 3rd Ice Pad. Budget $3,362,903 $6,504,536 Operations Regular Operational Maintenance Ice resurfacing, Set-ups/tear downs for rentals, cleaning, landscaping, daily inspections The current budget allows regular operational maintenance to be completed by internal staff at a satisfactory level. Recommended performance is to continue providing the current level of service within the current budget. Contracted Services Security, cleaning services, winter control, parking lot maintenance, rentals, garbage removal, elevator services, arena generators. The current budget allows for 1 security guard on evenings and weekends at the TCC. Current cleaning is at a “good” level. Winter control and parking lot maintenance as needed. Increase to 1 security guard for all operational hours and additional security guards for high attendance events at the TCC. Inspections H & S, ESA, TSSA, Fire Systems, Condition Assessments The current budget allows for all yearly legislated inspection requirements. 1 BCA completed in the last 10 years. Update BCA every five years for better capital planning. Heat/Light/Water, Insurance Annual cost of utilities and insurance for all Town facilities. Current budget allows for energy and water consumption for current operations and climate. Energy consumption may be on the rise with higher summer temperatures and more temperature fluctuations due to climate change. Additional budget will be required due to new acquisitions from growth. Fluctuations in required budget with better facility inventory data. Budget $2,232,948 $2,625,844 Maintenance General Repairs and Preventative Maintenance MESH work orders reactive to daily inspections, staff-initiated maintenance, complaints. Maintenance budget is currently sufficient for reactive daily requirements. Emerg ency maintenance is additional and Recommended performance is to continue providing the current level of service; however, additional staffing would allow for pro-active repairs 105 Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** Completed in- house and by contractors. exceeds planned budget. opposed to reactive repairs which would increase the useful life of the assets. Budget $649,033 $764,161 Renewal Major component replacements to return the assets to the service capacity to which they provided when first put into service. In-house staff suggestions, BCA recommendatio ns ie. HVAC, plumbing, window replacements, etc. Current budget allows for the replacement of some major components to keep facilities operational and energy efficient. Increased budget would allow for the timely replacement of major components to minimize overspending on repairs and improve energy efficiencies. Budget $2,813,721 $3,179,142 Disposal Remove assets from service. Demolition, sale or removal of a facility. No disposals planned. No disposals planned. Budget $0 $0 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 6.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 6.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth  Economic Factors  Environmental Awareness Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 6.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 6.9.3. 6.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 6.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. 106 Opportunities identified to manage demand are shown in Table 6.9.3. Further opportunities will be developed in future revisions of this AM Plan. Table 6.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 (As per Economic Development Commissioner) Population is expected to increase by approximately 7130 people by 2036. There will be a greater demand for additional facilities as well as increased usage of current assets to meet the service requirements of the municipality. Development Charge Study, Recreation Master Plan, Strategic Plan, Building Condition Assessments Economic Factors Building Condition Price Index (BCPI) increased 6.3% which has made everything substantially more expensive. Increase to tax levy does not cover the increases costs. Continue to steadily increase. Higher costs due to increases in the cost of materials, supplies, labour, equipment, overhead, etc. Procurement strategies to ensure competitive pricing. Environmental Awareness Current impacts of climate change. Increase in environmentally conscious behaviour by residents, staff and Council. Higher construction/renewal costs associated with LEED certification. Future facility design and rehabilitation should consider environmental factors, LEED certification and/or other approaches to sustainable design. 6.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 6.13. Acquiring new assets will commit the Town of Tillsonburg to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 6.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.24 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 6.9.5. 24 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 107 Table 6.9.5 Managing the Impact of Climate Change on Assets and Services Climate change risk Projection Impact on services Climate Change Management Plan Increasing temperatures and more frequent temperature fluctuations between hot and cold. Summer temperatures are expected to be hotter with more extreme heat days and winter temperatures are also rising. Deteriorating asset conditions due to increasing temperatures and increasing frequency of rapid temperature fluctuations between hot and cold; increased pressures on mechanical components (ie. HVAC); reduction in service life of certain building materials (ie. Asphalt shingles). Higher energy consumption costs. Modify maintenance activities and schedules to meet conditions. Review and implementation of various materials that are more resilient to fluctuating temperatures. Increased inspection frequency. Review of appropriate sizing/capacity of HVAC units to ensure they are capable of meeting cooling requirements associated with rising temperatures in summer months. Budget for higher energy consumption costs. Increasing number of heavy precipitation days Increase in the number of heavy precipitation days falling as rain, freezing rain and/or snow. Flooding, water infiltration, and structural weakening. It can overwhelm drainage systems, damage electrical and mechanical equipment, and lead to erosion. These issues increase maintenance costs and disrupt operations. Modify operations and maintenance activities to meet these challenges. Improve drainage, waterproofing, flood barriers, vegetation maintenance, elevate equipment, landscaping and winter maintenance will help reduce damage and ensure resilience. Maintain operational back-up systems. Increasing number of intense storms Increase in frequency and intensity of storms resulting in high winds and severe weather. Structural damage, flooding, power outages, debris impact, and ground erosion, leading to costly repairs. Reinforce structures with impact- resistant materials, secure roofs, and attached items. Manage flooding with improved drainage, waterproofing, and flood barriers. Ensure power resilience by installing backup generators and surge protectors. Regularly inspect and maintain buildings, including trimming trees and clearing gutters. Develop emergency plans, train staff, and stock supplies for quick response. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change;  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 6.9.6 summarizes opportunities to build climate change resilience into new and existing assets. Table 6.9.6 Building Climate Change Resilience into New Assets New Asset Description Climate Change impact These assets? Build Resilience in New Works New building and facility infrastructure Higher Temperatures Improve insulation, energy-efficient cooling systems, ventilation and airflow, shading and solar protection, utilize smart building systems. More frequent heavy precipitation days Enhance drainage systems, waterproofing and sealing, flood barriers and sump pumps, roof design 108 New Asset Description Climate Change impact These assets? Build Resilience in New Works and maintenance, elevate critical infrastructure, permeable landscaping. Increased intense storms Reinforced structural design, strengthen structural integrity, storm resistant windows and doors, flood protection, back-up power systems, emergency features, smart building technology, landscaping for protection. The impact of climate change on new and existing assets is evolving and new opportunities will be developed in future revisions of this AM Plan. 6.10 Lifecycle Management Plan The lifecycle management plan details how the Town of Tillsonburg plans to manage and operate the assets at the agreed levels of service (Refer to Section 3) throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximise the value of the assets while minimising costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover:  Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement).  Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost- effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 6.10. 109 Figure 6.10: Asset Lifecycle Activities 6.10.1 Background Data Physical parameters - the assets covered by this AM Plan are shown in Table 6.10.1. Table 6.10.1: Assets covered by this Plan Asset Category # of Buildings & Facilities Replacement Value Recreation, Culture and Parks 11 $70,804,741 Cemetery 2 $1,691,945 Corporate Services 1 $6,343,777 Public Works 1 $4,571,258 Airport 1 $5,922,404 Fire 1 $3,194,670 OPP 1 $5,711,838 Other (Clock Tower, Library Lane Covered Walkway, Elliott Fairbairn) 3 $5,536,696 Total 21 $103,777,329 Average Age 35 Years The age profile of the assets included in this AM Plan are shown in Figure 6.10.1. 110 Figure 6.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation). The chart shows that significant investments in facilities were made in peak years such as 1875, 1989 and 2004 indicating large-scale construction or reconstruction during those periods. As many of these asset’s approach or exceed their typical useful lives, the Town can expect upcoming peaks in renewal needs, highlighting the importance of proactive planning to manage aging infrastructure and avoid costly deferred maintenance. 6.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 6.10.2. Table 6.10.2: Known Service Performance Deficiencies Location Service Deficiency Gibson House Currently used for storage as facility is not maintained as suitable for the public. Clock Tower Brickwork repairs required. Currently fenced off to the public. The above service deficiencies were identified by the Manager of Parks & Facilities. 6.10.3 Asset condition Facility condition was initially determined using the Building Condition Index (BCI) from assessments conducted by Roth IAMS Ltd. in 2022. These BCI scores were then translated into a standardized 1-to-5 condition rating system, as outlined below. Ongoing condition evaluations are also carried out internally through regular inspections and review of work orders. Condition is measured using a 1 – 5 grading system25 as detailed in Table 6.10.3. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1 – 5 grading scale for ease of communication. 25 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 111 Table 6.10.3: Condition Grading System Condition Grading Description of Condition 5 Very Good: free of defects, only planned and/or routine maintenance required 4 Good: minor defects, increasing maintenance required plus planned maintenance 3 Fair: defects requiring regular and/or significant maintenance to reinstate service 2 Poor: significant defects, higher order cost intervention likely 1 Very Poor: physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 6.10.3. Figure 6.10.3: Asset Condition Profile Approximately 88% of all facility assets are rated in the “good’ or “very good” condition rating. The condition ratings for facilities are based on Building Condition Index (BCI) scores, which were determined by evaluating the buildings according to asset components, classified using Uniformat categories, as identified in the Building Condition Assessments. 6.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets are shown in Table 6.11. 112 Table 6.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $649,033 2025 $669,023 2026 $689,629 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 6.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The Town has not developed a service hierarchy for this asset class. 6.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 6.11.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Figure 6.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). 113 The current operating and maintenance budget is sufficient for existing facility assets. Assumed assets will increase operating and maintenance costs over the 10-year period which will require more budget dollars or will result in a decline in the level of service. 6.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The typical useful lives of assets used to develop projected asset renewal forecasts are shown in Table 6.12.26 These useful lives are based on building asset components (Uniformat Classifications) that were identified in the Building Condition Assessments and the useful lives were provided in that exercise. Asset useful lives will be reviewed with the asset inventory re-structure and clean-up. Table 6.12: Useful Lives of Assets Asset (Sub)Category Average Useful life (All asset components) Recreation, Culture and Parks 37 Cemetery 44 Corporate Services 36 Public Works 39 Airport 34 Fire 34 OPP 32 Other (Clock Tower, Library Lane Covered Walkway, Elliott Fairbairn) 38 The estimates for renewals in this AM Plan were based on the most recent Building Condition Assessment data and the current 10-year capital plan. 6.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either:  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).27 26 Enter Reference to Report documenting Review of Useful Life of Assets 27 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 114 It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide the equivalent service.28 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 6.12.1. Table 6.12.1: Renewal Priority Ranking Criteria Criteria Weighting Condition 60% Safety and Compliance 15% Impact on Operations 15% Utilization 10% Total 100% 6.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 6.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. Figure 6.12.2: Forecast Renewal Costs 28 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 115 Amounts are shown in real values (i.e., current values, net of inflation). Over the 10-year period the proposed renewal budget is not sufficient to undertake all recommended projects identified in the building condition assessments. Further review of projects and priority ranking will adjust project timelines and priorities to ensure alignment with financial limitations and strategic objectives. 6.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social or environmental needs. Assets may also be donated to the Town of Tillsonburg. 6.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals can then be ranked by priority and available funds and scheduled in future works programmes. The priority ranking criteria is detailed in Table 6.13.1. Table 6.13.1: Acquired Assets Priority Ranking Criteria Criteria Weighting Operational Readiness 35% Cost Efficiency 35% Level of Service Impact 10% Usage and Demand 10% Strategic Importance 10% Total 100% 6.13.2 Summary of future asset acquisition costs Forecast acquisition asset costs are summarised / summarized in Figure 6.13.2 and shown relative to the proposed acquisition budget. The forecast acquisition capital works program is shown in Appendix A. 116 Figure 6.13.2: Acquisition (Constructed) Summary Amounts are shown in real values (i.e., current values, net of inflation). When an Entity commits to new assets, they must be prepared to fund future operations, maintenance and renewal costs. They must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the Entity. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 6.13.3. Figure 6.13.3: Acquisition Summary Amounts are shown in real values (i.e., current values, net of inflation). Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The forecasted acquisition costs exceed the proposed budget envelope, particularly when factoring in debt servicing for major capital projects including the New Town Hall (2026), Fire Station Renovation (2027), Public 117 Works Yard (2030), Gymnasium & Multi-Use Space (2032), and a third ice pad (2034). To remain fiscally responsible, these projects may require rephasing, scope adjustments, or alternative funding strategies. 6.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 6.14. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 6.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 6.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings Elliott Fairbairn School Sale 2025 $0 $0 – Leased Facility 6.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 6.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. Figure 6.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). New acquisitions are contributing to fluctuations in the proposed budgets, with increased operating and maintenance costs also anticipated because of these new facility projects. Renewal projects in 2028 and 2029 will need to be re-evaluated and deferred to meet the expected budget. 118 6.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: ‘coordinated activities to direct and control with regard to risk’29. An assessment of risks30 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 6.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 6.16.1. Failure modes may include physical failure, collapse or essential service interruption. Table 6.16.1 Critical Assets Critical Asset(s) Failure Mode Impact Fire Hall Closure or use restrictions Emergency Response, Housing Fire Apparatus, Staff Quarters OPP Station Closure or use restrictions Law Enforcement Base, Detention Public Works Closure or use restrictions Vehicle/Equipment Storage, Fuel Island, Material Storage, Staff Base Customer Service Centre Closure or use restrictions Emergency Response Centre, Centralized Residential Service Community Centre Closure or use restrictions Emergency Shelters, Public Programs, Events By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 6.16.2 Risk Assessment The risk management process used is shown in Figure 6.16.2 below. It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. 29 ISO 31000:2009, p 2 30 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 119 Fig 6.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks31 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 6.16.2. It is essential that these critical risks and costs are reported to management and the Council of the Town of Tillsonburg. Table 6.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Operational Risks System failures, staffing shortages, fleet inaccessibility, access control malfunctions, utility outages, assets not covered by warranty/insurance. Downtime, reduced service delivery, response delays, high costs. H Preventative maintenance, annual inspections, emergency repair contracts, back-up generators. L $75,000 to $100,000 31 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 120 Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Condition Risks Aging infrastructure (Condition Failures), structural deterioration, fire or safety system degradation. Unsafe facilities, injuries/loss of life, costly repairs, early replacements/renewals. H Building Condition Assessments, capital replacement plan, routine inspections, scheduled renewals/replacements. L to M $50,000 Health & Safety Indoor air quality issues, slip, trip and fall hazards, non-compliance with AODA/accessibility requirements, fire hazards or lack of proper emergency routes. Staff/public injury/illness, liability claims, legal violations. H HVAC upgrades, regular H & S inspections, dehumidifiers, staff training, contractor maintenance programs. L to M $75,000 to $100,000 Security Unauthorized access or break-ins, vandalism or theft of equipment materials, inadequate surveillance or lighting. Staff/public safety risk, Costs to replace or repair assets. H Increase security guard usage, fencing, lighting, security cameras, access controls, staff training. L to M $100,000 to $150,000 Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 6.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 6.16.4 Service and Risk Trade-Offs The decisions made in adopting this AM Plan are based on the objective to achieve the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  Various recommended capital replacements from BCA inspections  All facility acquisitions proposed in the 10-year budget. Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include:  Service interruptions  Level of service decline  Higher repairs and maintenance costs 121 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include:  Safety of citizens and staff  Revenue generation loss  High emergency repair costs These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. 122 7.0 FLEET & FLEET EQUIPMENT This section details information about the fleet & fleet equipment asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 7.1 Asset Categories/Description The fleet and fleet equipment class comprises: Heavy Duty Units - 18 Fire Trucks - 4 Medium Duty Units - 6 Light Duty Units - 22 Off-Road Equipment - 23 Attachments - 46 Trailers - 13 The above infrastructure assets have replacement value estimated at $17,175,416. 7.2 Strategic and Corporate Goals In alignment with the Town’s strategic vision, mission, and service delivery objectives, fleet and fleet equipment are essential assets that support the efficient and safe delivery of municipal services. This includes vehicles and machinery used in road maintenance, water/wastewater operations, parks & cemetery, hydro, building & by-law, emergency response, and other core operations. A reliable fleet ensures operational efficiency, staff safety, and responsive service. The following table summarizes the relevant goals and objectives for the fleet asset class. Table 7.2: Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in the AM Plan The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and opportunities to shape municipal initiatives. Position Tillsonburg as a leader in the municipal sector. The AM Plan captures levels of service, risk and financial forecast to ensure sustainability. Priority projects in the Strategic Plan are linked to, and informed by, elements that are addressed in the AM Plan, including: Multi- year budgeting; Financial Sustainability Plan; Municipal Service Review; Environmental Sustainability Plan. The Town of Tillsonburg will accommodate and support sustainable growth. Plan and develop a long-term financing strategy for new services and infrastructure to support growth. The AM Plan addresses lifecycle costs of current and future acquisitions of assets due to growth. Priority projects in the Strategic Plan linked and informed by elements in the AM Plan include; replenish and grow reserves; development charges study; resourcing review to service growth. Tillsonburg residents and businesses will be connected to each other, regional networks, and the world through effective traditional and digital infrastructure. Develop a robust, long-term asset management plan to inform evidence-based decisions on the maintenance, rehabilitation and replacement of municipal infrastructure. The AM Plan specifically covers acquisition, operations, maintenance, and renewal costs and funding levels of fleet assets, to ensure such assets provide the necessary level of service. Linked priority projects in the Strategic Plan include; development of an 123 Goal Objective How Goal and Objectives are addressed in the AM Plan asset management plan; Transportation Master Plan; electric vehicle and infrastructure study. 7.3 Legislative Requirements As discussed in section 2.4 there are legislative requirements that are related to the management of all assets. The following requirements are specific to the facilities asset class. Table 7.3: Legislative Requirements Legislation Requirement The Highway Traffic Act (HTA), R.S.O. 1990, c.H.8 https://www.ontario.ca/laws/statute/90h08 Compliance with the Act with respect to ownership and responsibilities of Town owned motor vehicles. Ontario Regulation 555/06: Hours of Service https://www.ontario.ca/laws/regulation/060555 Compliance with the Regulation regarding the hours of service on the use of fleet. National Safety Code II Part B – Commercial vehicle safety requirements https://www.ontario.ca/page/commercial-vehicle- safety-requirements Maintenance and mandatory periodic inspection standards for commercial vehicles, the standards to which a vehicle will be inspection by an authorized technician at an authorized facility at a scheduled frequency. Commercial Vehicle Operator’s Registration (CVOR) https://www.ontario.ca/page/commercial-vehicle- operators-registration-cvor Commercial vehicle operator's registry carrier (the Town of Tillsonburg). Monitors and evaluates operators’ safety records. NFPA 1911 https://www.ontario.ca/document/firefighter- guidance-notes/1-2-apparatus-inspections-and- maintenance-program National Fire Protection Association standard for the inspection, maintenance, testing and retirement of in-service automotive fire apparatus. 7.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when Town of Tillsonburg Fleet & Fleet Equipment commits to the upgrade of existing and acquisition of new assets, future operations, maintenance and renewal costs including depreciation will increase. 7.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $24,511,278 or $2,451,128 on average per year. Depreciation is excluded from these cost estimates. 7.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $25,636,780 or $2,563,678 on average per year which is approximately 104.59% of the cost to undertake the lifecycle activities. The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organization delivers the services in a financially sustainable manner. 124 The 10-year LTFP results in a surplus of $112,550 on average per year of the forecast lifecycle costs required to provide services. This is shown in the figure below. Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). We plan to provide fleet and fleet equipment services for the following:  Operation, maintenance, renewal and acquisition of heavy-duty units, fire trucks, medium duty units, light duty units, off-road equipment, attachments and trailers to meet service levels set by Town of Tillsonburg Council in annual budgets.  Over the 10-year period the planned fleet renewals include key operational and emergency response assets such as an ice resurfacer, plow truck, hydro derrick truck, two sidewalk machines, a street sweeper, two trailers, four service trucks, a tractor, and a pumper tanker fire unit. These replacements are essential to maintain core service delivery, public safety, and operational efficiency across multiple departments.  Over the 10-year period, if the anticipated growth occurs, the planned new acquisitions include an additional plow truck, sidewalk machine, mini excavator, fire rescue unit, backhoe, loader, ice resurfacer, pick-up truck and two trailers. These units will be essential to support expanded service demands, maintain operational capacity and ensure timely and effective delivery of core municipal services as the community grows. 7.4.3 What we cannot do We currently allocate enough budget to sustain services at the proposed standard including the provision of new assets. Works and services that cannot be provided under present funding levels are:  Replace fleet units at their ideal replacement intervals  Maximize re-sale value by replacing at the most opportune intervals  Replace high dollar fleet units without utilizing debentures 7.5 Risk Management The planned budget is sufficient to continue to manage risks in the medium term. The main risk consequences are: 125  Frequent, unplanned, high-cost repairs  Service level impacts Strategies and actions to manage these risks are discussed in Section 7.16. 7.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $2,563,678 on average per year giving a 10 year funding surplus of $112,550 per year. This indicates that 104.59% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are added to the inventory. 7.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  Fleet units will remain in service for the updated, extended useful life periods.  Future fleet needs will grow at a rate consistent with population growth, service area expansion, or historical trends unless otherwise specified  Fleet utilization will remain consistent with historical trends.  Staff assessments of asset condition and performance are accurate and reflective of actual asset status. The Asset Register method was used to forecast the renewal lifecycle costs for fleet assets. This data was informed by a 2024 review of fleet chargeback rates and the deferred useful lives of most assets. This AM Plan is based on a medium level of confidence in the asset information. The next steps resulting from this AM Plan to improve asset management practices are:  Improve Asset Data Accuracy and Completeness  Implement Regular Condition Assessments  Enhance Maintenance and Cost Tracking  Establish Levels of Service Metrics 7.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers fleet and fleet equipment assets that enable the delivery of essential municipal services across various departments. Fleet assets, including light to heavy-duty vehicles, emergency response units, and specialized equipment, support operations such as road maintenance, fire response, parks & cemetery services, hydro operations, and public safety. A dependable and well-managed fleet contributes to service efficiency, staff productivity, and overall community well-being. The current levels of service for fleet and fleet equipment reflect the Town’s commitment to providing reliable, safe, and efficient resources that support daily operations and emergency response. Fleet assets are maintained in accordance with safety standards, manufacturer guidelines, and operational requirements. This includes regular inspections, preventative maintenance, and replacements to minimize downtime and ensure service continuity. Performance is tracked through maintenance records, operational data, and user feedback to ensure the fleet continues to meet the needs of staff and its users. 7.8.1 Customer Research and Expectations This section is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The 2025 Asset Management Plan Survey was open to internal customers/asset users for a three-week period. The survey requested input on the condition, function and capacity of the Fleet & Fleet Equipment asset class. 126 Table 7.8.1: Customer Satisfaction Survey Levels – Fleet & Fleet Equipment Performance Measure Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Heavy Duty Units 13% 70% 17% 0% Fire Trucks 19% 81% 0% 0% Medium Duty Units 14% 75% 11% 0% Off-Road Units 9% 91% 0% 0% Attachments 11% 68% 21% 0% Trailers 15% 70% 15% 0% 7.8.2 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. Customer Values indicate:  what aspects of the service is important to the customer,  whether they see value in what is currently provided and  the likely trend over time based on the current budget provision Table 7.8.2: Customer Values Service Objective: Provide a safe, functional, well-maintained, cost-effective fleet while considering the environment. Effectively communicate any service disruptions to departmental users. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Provide fleet units that are in good condition. 2025 Internal AMP Survey Results 89% of respondents are “Satisfied” with the overall condition of the fleet units. Current 10-yr renewal program extends estimated useful life to build an adequate fleet reserve. Expected trend is to decline as the condition of the units will deteriorate thereby affecting the level of satisfaction. Provide the appropriate number of fleet units to support user needs. 2025 Internal AMP Survey Results 77% of respondents are satisfied with the current capacity of fleet and fleet equipment. As the development of the Town increases, there will be more demand for additional fleet and fleet equipment to maintain the current levels of service. Provide fleet units that meet the functional requirements of the user departments. 2025 Internal AMP Survey Results 83% of respondents have no concerns with the current functionality of the fleet units. The expected trend is to remain the same. Fleet staff will begin to meet directly with the user departments to discuss their fleet and equipment needs. Provide fleet units that are properly serviced and maintained. 2025 Internal AMP Survey Results # of Operator Equipment Issues 96% of respondents are satisfied with the overall maintenance program. As the fleet units age beyond their scheduled useful life, this trend is expected to remain the same, however, there will be additional pressures on maintenance staff. 127 7.8.3 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? In Table 7.8.3 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. Table 7.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Condition of assets Internal condition assessments and scheduled preventative maintenance checklists. # of Fleet Work Orders Per the internal condition assessment conducted in 2025, the average condition rating was 3.4 which falls in the fair category. This level of service is being maintained at the current funding level. With the current 10-yr renewal program, this is expected to decrease due to the planned age of the units at renewal. Maintenance costs will increase significantly to maintain current condition level. Confidence levels High Confidence Levels Internal professional judgement supported by data. High Confidence Levels Due to lack of funding and prolonged useful life, there is high confidence that the condition will decrease in the next 10 years. Function Assets are functional and able to provide the required services Efficiency and effectiveness of the current fleet inventory as informed from input from departmental users/management. # of departmental user complaints Fleet units are currently meeting the functional needs of the departmental users. The expected trend will remain the same. Confidence levels Medium Confidence Levels Professional judgement supported by data sampling Medium Confidence Levels Professional judgement supported by data sampling Capacity Assets meet the demands of the departmental users. Number and types of units available in the fleet to meet operational needs. Fleet units are currently meeting the capacity needs of the departmental users. Trend is expected to decrease. As the Town grows, and more employees are required to provide services, there will be a need for additional fleet to maintain the current levels of service. Confidence levels Medium Confidence Levels Professional judgement supported by data sampling High Confidence Levels 128 Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Internal professional judgement supported by data. 7.8.4 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Service and asset managers plan, implement and control technical service levels to influence the service outcomes.32 Table 7.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. Table 7.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet demand Additional fleet units required due to growth. Additional/upgraded units required to maintain levels of service. Only acquisitions supported by growth are currently being added to the fleet. Increase - If anticipated growth occurs, follow 10 yr capital plan for new acquisitions captured in the DC study. Budget $220,886 $331,940 Operations Annual vehicle licensing, fuel costs, AVL/GPS, vehicle leases, insurance, internal & external inspections, staff wages, IT charges, debt interest and principal. 28 License Renewals 19 AVL/GPS camera units installed 11 units leased 27 units with debenture payments Current budget is sufficient to maintain current level of service which meets legislative requirements. Recommended performance is to maintain the current level of service. Operating costs will increase if the expected growth is realized, and additional fleet is acquired. Budget $1,026,964 $1,082,075 Maintenance Annual Safety, PM- A, PM-B, preventative maintenance and seasonal preparation, reactive maintenance. CVOR Maintenance Standard – States frequency. % of preventative maintenance completed as required for current level of service Current budget is sufficient to complete the following: Annual Inspections - Yearly PM Inspections - Every 200 engine Recommended performance is to maintain the current level of service. Maintenance costs will increase if/when additional fleet units are acquired. 32 IPWEA, 2015, IIMM, p 2|28. 129 Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** hours or 140 calendar days. 90% to 95% of all preventative and reactive maintenance complete. Budget $531,664 $560,233 Renewal Replacement or betterment to existing fleet to return the assets to new condition. Fleet Replacement Strategy Replacement of units at scheduled intervals/at their end of life. Currently not following the Fleet Replacement Strategy. 10-yr capital budget strictly allows for the replacement of critical units only. Increase – Follow the Fleet Replacement Strategy allowing for the replacement of units at policy set intervals to control the total cost of ownership and overall performance. Budget $784,164 $784,164 Disposal Take the assets out of service Fleet units are currently disposed of when they are deemed critical or can no longer be repaired. Currently, there are no costs associated to disposing fleet assets. Most units with a value over $1000 are sold. Maintain current process. Budget $0 $0 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 7.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 7.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth  Housing Development Growth  Economic Factors  Changing Technology Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 7.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 7.9.3. 130 7.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 7.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. Opportunities identified to manage demand are shown in Table 7.9.3. Further opportunities will be developed in future revisions of this AM Plan. Table 7.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 (As per Economic Development Commissioner) Population is expected to increase by approximately 7130 people by 2036. There will be a greater demand for additional fleet units as well as increased usage of current units to meet the service requirements of the municipality. Development Charge Study, Equipment Replacement Strategy, Preventative Maintenance Housing Development Growth In 2021, there were 8,229 private dwellings occupied in Tillsonburg, which represents a change of 15.5% from 2016. 4,205 new housing units are anticipated to be built over the next 10 years, a 51% growth rate. Development of new subdivisions will mean assumption of new assets, such as roads, bridges, storm, water/wastewater and utilities which will require additional fleet units to service the new areas. Development Charge Study, Internal Planning for additional required assets. Economic Factors The Town is currently facing higher costs for all vehicles, equipment, parts & supplies due to inflation. Extended wait times for new units and parts has created the need to plan ahead to maintain service levels. Experiencing some difficulties finding replacement parts. It is anticipated that the costs will continue to increase due to tariffs and further inflation. Wait times are expected to remain the same or increase. Sourcing replacement parts will increase as units are operated to failure. Higher costs, delay in receiving new units/parts resulting in more down- time. Inability to repair units due to no parts available. Better planning for capital replacements. Re-evaluate specification requirements to only tender for required features to keep costs manageable. Continue preventative maintenance activities to reduce major failures before they happen. Purchase units off dealership lots if they meet specification to reduce wait times. Changing Technology Currently the Town has installed AVL/GPS on some units for tracking purposes and route optimization. Expected to complete rest of fleet outfitting for GPS/AVL for tracking, route optimization, fuel efficiency along with driver behaviour. Will help with fuel efficiency and driver behaviour. Hours of service and Schedule 1 compliance can also be monitored. Evaluate data to check for cost savings like fuel and time. Compliance for hours of service and Schedule 1 will be monitored along with real time GPS to help track units. 131 7.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 7.13. Acquiring new assets will commit the Town of Tillsonburg Fleet & Fleet Equipment to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 7.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.33 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 7.9.5 Table 7.9.5 Managing the Impact of Climate Change on Assets and Services Climate Change Description Projected Change Potential Impact on Assets and Services Management Heavy Precipitation Days Increase in number of heavy precipitation days falling as rain, freezing rain and/or snow. Increased pressures on fleet vehicles and equipment to clear ice and snow to meet LOS and MMS. Increased damage to units caused by road salts. Increased operation activities related to flooding, erosion/washouts, potholes, etc. Ensure preventative maintenance activities and inspections are kept up to date. Complete required repairs to ensure unit availability. Undercoat units to mitigate salt damage. Intense Storms Increased frequency and intensity of storms resulting in high winds and severe weather. Increased pressures on fleet vehicles and equipment to clear debris and vegetation and respond to emergencies. Vegetation management to reduce likelihood, consider alternative equipment that are multipurpose, ensure preventative maintenance and inspections are completed. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change;  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 7.9.6 summarizes opportunities to build climate change resilience into new and existing assets. 33 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 132 Table 7.9.6 Building Climate Change Resilience into New Assets New Asset Description Climate Change impact These assets? Build Resilience in New Works New Fleet Assets Heavy Precipitation Days When building specifications, include enhanced sealing and waterproofing, corrosion-resistant materials, improved tires and traction, increased engine performance and cooling, improved lighting and visibility. Intense Storms The impact of climate change on new and existing assets is evolving and new opportunities will be developed in future revisions of this AM Plan. 7.10 Lifecycle Management Plan The lifecycle management plan details how the Town of Tillsonburg Fleet & Fleet Equipment plans to manage and operate the assets at the agreed levels of service throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximise the value of the assets while minimising costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover:  Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement).  Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost- effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 7.10. 133 Figure 7.10: Asset Lifecycle Activities 7.10.1 Background Data Physical parameters - the assets covered by this AM Plan are shown in Table 7.10.1. Table 7.10.1: Assets covered by this Plan Asset Category Number of Assets Current Replacement Value Heavy Duty 18 $5,346,722 Fire Trucks 4 $5,659,500 Medium Duty 6 $377,910 Light Duty 22 $737,802 Off-Road Equipment 23 $3,844,550 Attachments 46 $1,028,182 Trailers 13 $180,750 Total 132 $17,175,416* Average Age Years *Fleet small equipment is captured in the Machinery & Equipment asset class. The age profile of the assets included in this AM Plan are shown in Figure 7.10.1. 134 Figure 7.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation). The chart shows that significant investments in the fleet & fleet equipment asset class were made in peak years such as 2011, 2017, 2019, 2023 indicating large-scale acquisitions/renewals. As many of these asset’s approach or exceed their typical useful lives, the Town can expect upcoming peaks in renewal needs, highlighting the importance of proactive planning to manage aging fleet assets and avoid costly deferred maintenance. 7.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 7.10.2. Table 7.10.2: Known Service Performance Deficiencies Unit # Service Deficiency 23 Engine repairs – Unit out of Service 60 Conveyer rebuilt – Side chute inoperable 63 Hydraulic tank rotten and leaking – Out of Service 100 Requires new clutch before leaf collection season – Out of Service The above service deficiencies were identified from internal staff resources. 7.10.3 Asset condition Condition is currently monitored through scheduled preventative maintenance schedules and annual inspections conducted by internal staff resources. 135 Condition is measured using a 1 – 5 grading system34 as detailed in Table 7.10.3. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1 – 5 grading scale for ease of communication. Table 7.10.3: Condition Grading System Condition Grading Description of Condition 5 Very Good: free of defects, only planned and/or routine maintenance required 4 Good: minor defects, increasing maintenance required plus planned maintenance 3 Fair: defects requiring regular and/or significant maintenance to reinstate service 2 Poor: significant defects, higher order cost intervention likely 1 Very Poor: physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 7.10.3. Figure 7.10.3: Asset Condition Profile Approximately 43% of all fleet and fleet equipment assets are rated in the “good” or “very good” condition rating. 7.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets are shown in Table 7.11. 34 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 136 Table 7.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $531,664 2025 $574,139 2026 $600,000 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 7.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The Town has not developed a service hierarchy for this asset class. 7.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 7.11.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Figure 7.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). 137 The current operating and maintenance budget is sufficient for existing fleet and fleet equipment assets. Additional acquired assets will increase operating and maintenance costs over the 10-year period which will require more budget dollars or will result in a decline in the level of service. 7.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The typical useful lives of assets used to develop projected asset renewal forecasts are shown in Table 7.12. Asset useful lives of fleet assets were last reviewed in 2024. Further review will take place with the asset inventory re-structure and clean-up. Table 7.12: Useful Lives of Assets Asset (Sub)Category Useful life Heavy Duty 10 Fire Trucks 18 Medium Duty 10 Light Duty 8 Off-Road Equipment 10 to 15 Attachments 10 Trailers 20 The estimates for renewals in this AM Plan were based on the 10-year budget. 7.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either:  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).35 It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide the equivalent service.36 35 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 36 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 138 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 7.12.1. Table 7.12.1: Renewal Priority Ranking Criteria Criteria Weighting Operational Criticality 50% Cost of Replacement 25% Downtime Frequency 10% Lead Time 10% Re-Sale Value 5% Total 100% 7.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 7.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. 139 Figure 7.12.3: Forecast Renewal Costs Amounts are shown in real values (i.e., current values, net of inflation). Over the 10-year period the proposed renewal budget is sufficient to meet the forecast renewal costs. 7.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social or environmental needs. Assets may also be donated to the Town. 7.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals can then be ranked by priority and available funds and scheduled in future works programmes. The priority ranking criteria is detailed in Table 7.13.1. Table 7.13.1: Acquired Assets Priority Ranking Criteria Criteria Weighting Operational Criticality 50% Cost 40% Utilization Rate 10% Total 100% 7.13.2 Summary of future asset acquisition costs Forecast acquisition asset costs are summarised / summarized in Figure 7.13.2 and shown relative to the proposed acquisition budget. The forecast acquisition capital works program is shown in Appendix A. 140 Figure 7.13.2: Acquisition (Constructed) Summary Amounts are shown in real values (i.e., current values, net of inflation). When an Entity commits to new assets, they must be prepared to fund future operations, maintenance and renewal costs. They must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the Entity. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 7.13.3. Figure 7.13.3: Acquisition Summary Amounts are shown in real values (i.e., current values, net of inflation). Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. Additional fleet and fleet equipment is acquired as recommended from the Development Charge Study and is only realized when anticipated growth occurs. 141 7.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 5.5. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 7.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 7.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings No fleet or fleet equipment assets have been identified for disposal. N/A N/A N/A N/A 7.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 7.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. Figure 7.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). The overall renewal budget is fluctuating due to the timing of end of life renewals and new acquisitions from growth. 142 7.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: coordinated activities to direct and control with regard to risk’37. An assessment of risks38 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 7.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 7.16.1. Failure modes may include physical failure, collapse or essential service interruption. Table 7.16.1 Critical Assets Critical Asset(s) Failure Mode Impact Fire Apparatus Unit/Component Failure – Out of Service Fire apparatus down time, life safety risk, increased liability, loss of infrastructure. Winter Maintenance Units Unit/Component Failure – Out of Service Road safety risk, life safety risk, public service delays, legal exposure. Hydro Units Unit/Component Failure – Out of Service Delays in power restoration, maintenance, and emergency response. By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 7.16.2 Risk Assessment The risk management process used is shown in Figure 7.16.2 below. It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. 37 ISO 31000:2009, p 2 38 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 143 Fig 7.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks39 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 7.16.2. It is essential that these critical risks and costs are reported to management and Council. Table 7.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Fire Apparatus Fire trucks, rescue vehicles, support units Mechanical failure or unit out of service during an emergency. VH Preventative maintenance schedule with frequent inspections. Maintain reserve units(s). Priority repair scheduling with Fleet mechanics. M $10,000 to $50,000 annually for inspections, parts and reserve unit upkeep Winter Maintenance Equipment Snowplows, salt spreaders, grader Equipment failure during snow/ice events causing delayed road clearing. Inability for H Conduct pre-season inspections. Stockpile critical spare parts. Cross-train operators for L $25,000 to $100,000 annually depending on the severity of the winter season 39 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 144 Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs emergency response vehicles to reach destinations. flexible deployment. Maintain a list of rental/contract options. Hydro Operations Equipment Bucket trucks, digger derricks Out-of-service vehicles delay emergency power restoration. H Prioritize essential unit maintenance. Monitor fleet usage to prevent overloading. Follow replacement schedule. Maintain a list of rental/contract options. M $15,000 to $60,000 annually Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 7.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand, and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership. We do not currently measure our resilience in service delivery. This will be included in future iterations of this plan. 7.16.4 Service and Risk Trade-Offs The decisions made in adopting this AM Plan are based on the objective of achieving the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  Replace fleet units at their ideal replacement intervals  Maximize re-sale value by replacing at the most opportune intervals  Replace high dollar fleet units without utilizing debentures Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include:  Downtime for affected units (service disruptions)  Budget constraints  Acquisition lead time Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include:  Operate fleet units to failure  Frequent, unplanned, high-cost repairs  Service level impacts These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. 145 8.0 MACHINERY & EQUIPMENT This section details information about the machinery and equipment asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 8.1 Asset Categories/Descriptions The Machinery and Equipment asset class includes both pooled and individually tracked assets, primarily consisting of the following types: Furniture - 9 Fleet Small Equipment - 89 Fire Equipment - 34 Health Club Equipment – 22 Generators – 12 Miscellaneous Equipment – 11 The above infrastructure assets have replacement value estimated at $2,501,333. 8.2 Strategic and Corporate Goals In alignment with the Town’s strategic vision, mission, and service delivery objectives, machinery and equipment are essential assets that enable the effective operation of municipal services and programs. These assets support frontline service delivery, enhance staff efficiency, and ensure the safety and well-being of both employees and the public. They play a critical role in maintaining service standards across various departments, contributing to operational readiness, emergency response, and overall service quality. The following table summarizes the relevant goals and objectives and how they are addressed for the machinery and equipment asset class. Table 8.2: Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in the AM Plan The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and opportunities to shape municipal initiatives. Position Tillsonburg as a leader in the municipal sector. The AM Plan captures levels of service, risk and financial forecast to ensure sustainability. Priority projects in the Strategic Plan are linked to, and informed by, elements that are addressed in the AM Plan, including: Multi-year budgeting; Financial Sustainability Plan; Municipal Service Review; Environmental Sustainability Plan. The Town of Tillsonburg will accommodate and support sustainable growth. Plan and develop a long-term financing strategy for new services and infrastructure to support growth. The AM Plan addresses lifecycle costs of current and future acquisitions of assets due to growth. Priority projects in the Strategic Plan linked and informed by elements in the AM Plan include; replenish and grow reserves; development charges study; resourcing review to service growth. 146 8.3 Legislative Requirements As discussed in section 2.4 there are legislative requirements that are related to the management of all assets. The following requirements are specific to the machinery & equipment asset class. Table 8.3: Legislative Requirements Legislation Requirement Ontario Electrical Safety Code (OESC), established under Ontario Regulation 164/99 pursuant to the Electricity Act, 1998 https://www.ontario.ca/laws/regulation/990164 This regulation mandates that all electrical work and equipment installations within the province comply with the standards set forth in the OESC National Fire Protection Association (NFPA) Standards https://www.nfpa.org/for-professionals/codes- and-standards NFPA 1981 - Breathing apparatus (SCBA) NFPA 1971 - Standard on Protective Ensembles for Structural NFPA 1932 - Fire ladders NFPA 1221 / 1225 - Radios Occupational Health and Safety Act (OHSA) - OHSA, R.S.O. 1990, c. O.1 https://www.ontario.ca/laws/statute/90o01 Provide safe, ergonomic workstations 8.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when the Town of Tillsonburg commits to the upgrade of existing and acquisition of new assets, future operations, maintenance and renewal costs including depreciation will increase. 8.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $2,585,670 or $258,567 on average per year. Depreciation is excluded from these cost estimates. 8.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $2,569,940 or $256,994 on average per year which is approximately 99.39% of the cost to undertake the lifecycle activities. The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organization delivers the services in a financially sustainable manner. The 10-year LTFP results in a shortfall of $-1,573 on average per year which is negligible and has no impact on the forecast lifecycle costs required to provide services. This is shown in the figure below. 147 Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). We plan to provide machinery & equipment services for the following:  Operation, maintenance, renewal and acquisition of furniture, fleet small equipment, fire equipment, health club equipment, generators and miscellaneous equipment to meet service levels set by Council in annual budgets.  Pooled asset class annual renewals as required within the 10-year planning period. 8.4.3 What we cannot do We currently allocate enough budget to sustain services at the proposed standard including the provision of new assets. Works and services that cannot be provided under present funding levels are:  N/A 8.5 Risk Management The planned budget is slightly underfunded; however, the shortfall is minor and not expected to pose any significant risks. Strategies and actions to manage risk are discussed in Section 8.16. 8.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $256,994 on average per year giving a 10 year funding shortfall of $-1,573 per year which is insignificant to the lifecycle costs. This indicates that 99.39% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are added. 8.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  Asset condition assessments are based solely on staff judgement  Replacement cost estimates are determined using staff expertise  Some acquisition dates are assumed based on staff memory or project timelines. 148 The Alternate Method utilizing information from the 10-year capital budget was used to forecast the renewal lifecycle costs for this AM Plan. This AM Plan is based on a low level of confidence in the asset information. The next steps resulting from this AM Plan to improve asset management practices are:  Continuous asset inventory improvements  Conduct more comprehensive condition assessments 8.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers machinery and equipment assets that support the delivery of municipal services, facility operations, and community programs. These assets enable staff to perform their duties safely and efficiently while contributing to public safety, wellness, and service continuity. The current levels of service reflect the Town’s commitment to maintaining reliable, safe, and functional equipment. Assets are managed through regular inspections, maintenance, and timely replacement to ensure they remain operational and meet service demands. The allocation in the planned budget is sufficient to continue providing these services at current levels for the planned period. The main service consequences of the planned budget are:  N/A 8.8.1 Customer Research and Expectations This section is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The Internal 2025 Asset Management Plan Survey was open to staff/asset users for a three-week period. The survey requested input on the condition, function and capacity of the machinery & equipment asset class. Table 8.8.1 summarizes the results from our Customer Satisfaction Survey. Table 8.8.1: Customer Satisfaction Survey Levels – Machinery & Equipment Performance Measure Overall Condition/Function/Capacity Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Furniture 3% 63% 26% 8% Fleet Small Equipment 17% 75% 4% 4% Fire Equipment 20% 72% 8% 0% Health Club Equipment 9% 44% 38% 9% 8.8.2 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. Customer Values indicate:  what aspects of the service is important to the customer,  whether they see value in what is currently provided and 149  the likely trend over time based on the current budget provision Table 8.8.2: Customer Values Service Objective: To provide machinery and equipment that is safe, reliable, readily available when needed, and supports consistent, high-quality service delivery. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Provide furniture that is in good condition, functional and meets the capacity needs of its users. 2025 Internal Survey Results 66% of respondents are satisfied with the current furniture. Most complaints from the 33% unsatisfied comments are regarding the need for new desks and chairs to provide ergonomically correct workstations. The expected trend is to decline. Lack of budget dollars for ergonomical assessment and new furniture will result in more complaints and potential health and safety incidents. Provide fleet small equipment in good condition, functional and meets the need of its users. 2025 Internal Survey Results 92% of respondents are satisfied with the current fleet small equipment. The expected trend is to remain the same. Fleet small equipment budget is recuperated through departmental fleet charges. Provide fire equipment in good condition, functional and meets the need of its users. 2025 Internal Survey Results 92% of respondents are satisfied with the current fire equipment. The expected trend is to remain the same as fire equipment is replaced as required per legislation. Provide health club equipment in good condition, functional and meets the need of its users. 2025 Internal Survey Results 53% of respondents are satisfied with the current health club equipment. All negative comments received from respondents feel that the health club equipment is outdated and needs to be replaced. The expected trend is to remain the same. The current budget allows for minimal replacements. If Town is successful with a grant application, replacements will occur sooner. 8.8.3 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? In Table 8.8.3 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. 150 Table 8.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Condition of assets Internal condition assessments Average internal condition rating of 3 which falls in the “fair” category. High probability that the current inventory is not complete. Expected to remain the same. More accurate data will capture more machinery and equipment assets in the future. Better condition assessments are required for higher confidence levels. Confidence levels Low - Professional Judgement with no data evidence Medium - Professional judgement supported by data sampling Function Assets are functional and able to provide the required services # of Service Requests Staff Input Fleet small equipment and fire equipment is functional and is providing the required service. Few to no service requests have been received. Few to no service requests have been received regarding furniture, however, staff has confirmed there is a need for an ergonomics review for some areas that have old desks and chairs. Sharing of office space also makes this challenging. Few to no service requests received for health club equipment functionality, however, survey results show a need for the outdated equipment to be replaced. Fleet small equipment and fire equipment is expected to remain the same. Health club equipment should slowly increase as budget allows for replacements over the next 10 years. Internal review of current processes for workstation furniture acquisitions and replacements is required. Further updating of inventory and assessments will increase confidence levels. Confidence levels Low - Professional Judgement with no data evidence) Medium - Professional judgement supported by data sampling Capacity Assets meet the demands of the departmental users. Number and types of equipment available to meet operational needs. The current capacity of machinery and equipment assets is sufficient to meet user needs. Trend is expected to decrease slightly due to growth. Confidence levels Medium - Professional judgement supported by data sampling) Medium - Professional judgement supported by data sampling) 151 8.8.4 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Service and asset managers plan, implement and control technical service levels to influence the service outcomes.40 Table 8.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. Table 8.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet demand Additional machinery & equipment assets required due to growth. Additional/upgrade d units required to maintain levels of service. No new machinery & equipment assets are currently being acquired. The recommended performance is to increase. If anticipated growth occurs additional machinery & equipment assets will be required in the 10-year plan. The amount of increase will be dependent on how quickly/if it occurs. Budget $0 $0 Operations Regular costs/activities to ensure that machinery & equipment assets are reliable and perform their intended service. Fuel costs, insurance, training, staff wages, inspections. The current budget is adequate for all operational costs to maintain the current level of service. The recommended performance is to remain the same. The current level of service meets the needs of its users. Budget $91,243 $91,243 Maintenance Maintain assets as close as possible to optimal service conditions and ensure they remain functional throughout their useful life. Staff wages, parts & supplies, 3rd party repair costs. The current budget is adequate for all maintenance costs to maintain the current level of service. The recommended performance is to remain the same. The current level of service meets the needs of its users. Budget $71,707 $71,707 Renewal Replacement or betterment to existing assets to Replacement strategies, condition assessments. This asset class is comprised of some individual assets and some pooled assets. It is recommended to increase. Better inventory data will help inform renewals over the 10-year 40 IPWEA, 2015, IIMM, p 2|28. 152 Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** return the assets to new condition. Replacement of units at scheduled intervals/at their end of useful life. Annual renewals take place on assets in critical condition, which may include partial dispositions. plan. It is anticipated that large amounts of assets are not included in the asset inventory. This will increase the amount of budget required. Budget $94,044 $95,617 Disposal Remove the assets from service Destruction or selling of assets that have reached their end of useful life There are no disposal costs associated with the current budget. Recommended performance is to realize actual disposal costs going forward, if any. Budget $0 $0 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 8.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 8.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth  Housing Development Growth  Economic Factors Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 8.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 8.9.3. 8.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 8.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. Opportunities identified to manage demand are shown in Table 8.9.3. Further opportunities will be developed in future revisions of this AM Plan. 153 Table 8.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 (As per Economic Development Commissioner) Population is expected to increase by approximately 7130 people by 2036. There will be a greater demand for additional machinery and equipment as well as increased usage of current assets to meet the service requirements of the municipality. Development Charge Study, Equipment Replacement Strategy, Preventative Maintenance Housing Development Growth In 2021, there were 8,229 private dwellings occupied in Tillsonburg, which represents a change of 15.5% from 2016. 4,205 new housing units are anticipated to be built over the next 10 years, a 51% growth rate. Development of new subdivisions will mean assumption of new assets, such as roads, bridges, storm, water/wastewater and utilities which will require additional machinery and equipment assets to service the new areas. Additional staff will be required which will also increase the need for additional assets. Development Charge Study, Internal Planning for additional required assets. Economic Factors The Town is currently facing higher costs for all machinery & equipment due to inflation. It is anticipated that the costs will continue to increase due to tariffs and further inflation. Higher costs, longer lead times for new acquisitions and replacements. Better long-term planning for capital replacements. Assess what is required to perform the service to keep costs down. Continue preventative maintenance activities to reduce major failures before they happen. 8.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 8.13. Acquiring new assets will commit the Town of Tillsonburg to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 8.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. 154 How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.41 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 8.9.5. Table 8.9.5 Managing the Impact of Climate Change on Assets and Services Climate Change Description Projected Change Potential Impact on Assets and Services Management Changes in temperature and humidity Increased number of days with temperature fluctuations and humidity. Material degradation, corrosion, electronic failures, and reduced lifespan. Use climate-controlled storage, protective coverings and select materials designed to withstand heat, moisture, and corrosion. Regular maintenance and proactive replacement planning also help extend asset life and ensure reliability. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 8.9.6 summarizes opportunities to build climate change resilience into new and existing assets. Table 8.9.6 Building Climate Change Resilience into New Assets New Asset Description Climate Change impact These assets? Build Resilience in New Works New Machinery & Equipment Assets Temperature fluctuations and humidity resulting in material degradation, corrosion, electronic failures, and reduced lifespan due to temperature. Prioritize equipment and materials that are specifically designed to withstand environmental stressors like heat, humidity, and moisture. Look for durable, weather-resistant specifications, and consider total lifecycle costs. The impact of climate change on new and existing assets is evolving and new opportunities will be developed in future revisions of this AM Plan. 8.10 Lifecycle Management Plan The lifecycle management plan details how the Town plans to manage and operate the assets at the agreed levels of service throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximise the value of the assets while minimising costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover: 41 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 155  Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement).  Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost- effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 8.10. Figure 8.10: Asset Lifecycle Activities 8.10.1 Background Data The assets covered by this AM Plan are shown in Table 8.10.1. Table 8.10.1: Assets covered by this Plan Asset Category Number of Assets Replacement Value Furniture 9 $124,166 Fleet Small Equipment 89 $350,892 Fire Equipment 34 $812,809 Health Club Equipment 22 $387,150 Generators 12 $650,864 156 Asset Category Number of Assets Replacement Value Miscellaneous Equipment 11 $175,452 Total 177 $2,501,333 Average Age 11 years This asset class includes individual assets as well as pooled assets. The age profile of the assets included in this AM Plan are shown in Figure 8.10.1. Figure 8.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation) Significant investments in machinery and equipment assets were made in 1998, 2007, and 2009 which suggest these assets may soon need replacement. The rise in spending from 2015 on reflects a more proactive approach and may be from more assets being recorded in the AM system. 8.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 8.10.2. Table 8.10.2: Known Service Performance Deficiencies Asset Service Deficiency Health Club Equipment - Treadmill Currently only have 4 treadmills in service. Facilities Floor Scrubber Machine Down to 1 floor scrubber machine – no back up for this size Restroom Cleaner Currently out of service Various Tables & Chairs Some inventory out of service. Insufficient number of tables. The above service deficiencies were identified from internal staff resources. 8.10.3 Asset condition Condition is currently monitored internally using staff opinion gauged through regular maintenance and inspections. More detailed condition assessments will be included in future versions of the AMP. 157 Condition is measured using a 1 – 5 grading system42 as detailed in Table 8.10.3. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1 – 5 grading scale for ease of communication. Table 8.10.3: Condition Grading System Condition Grading Description of Condition 5 Very Good: free of defects, only planned and/or routine maintenance required 4 Good: minor defects, increasing maintenance required plus planned maintenance 3 Fair: defects requiring regular and/or significant maintenance to reinstate service 2 Poor: significant defects, higher order cost intervention likely 1 Very Poor: physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 8.10.3. Figure 8.10.3: Asset Condition Profile Approximately 64% of all machinery & equipment assets are rated in the “fair” category. Condition assessments for this asset class are all based on staff opinion. Future versions should include a more formal condition assessment process. 8.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets are shown in Table 8.11. 42 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 158 Table 8.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $68,269 2025 $71,707 2026 $74,4234 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 8.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The Town has not developed a service hierarchy for this asset class. 8.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 8.11.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Figure 8.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). The current operating and maintenance budget is sufficient for existing machinery & equipment assets. 159 8.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The typical useful lives of assets used to develop projected asset renewal forecasts are shown in Table 8.12. Asset useful lives will be reviewed with the asset inventory re-structure and clean-up. Table 8.12: Useful Lives of Assets Asset (Sub)Category Useful life Furniture 10 to 20 years Fleet Small Equipment 10 to 30 years Fire Equipment 5 to 20 years Health Club Equipment 15 to 20 years Generators 25 to 30 years Miscellaneous Equipment 5 to 15 years The estimates for renewals in this AM Plan were based on the 10-year budget. 8.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either:  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).43renewal It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide the equivalent service.44 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 8.12.1. 43 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 44 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 160 Table 8.12.1: Renewal Priority Ranking Criteria Criteria Weighting Asset Condition/Age 25% Criticality/Service Impact 25% Utilization 25% Safety & Risk Exposure 25% Total 100% 8.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 8.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. Figure 8.12.2: Forecast Renewal Costs Amounts are shown in real values (i.e., current values, net of inflation). The current renewal budget is slightly underfunded over the 10-year planning period; however, the shortfall is minimal and is not expected to impact planned asset renewals. 8.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social or environmental needs. Assets may also be donated to the Town of Tillsonburg. 8.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and 161 new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals can then be ranked by priority and available funds and scheduled in future works programmes. The Town has not developed an acquired assets priority ranking criteria for this asset class. 8.13.2 Summary of future asset acquisition costs There is no forecast acquisition capital works program within the next 10 year forecast. Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. When an Entity commits to new assets, they must be prepared to fund future operations, maintenance and renewal costs. They must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the Entity. 8.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 8.14. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 8.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 8.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings No machinery and equipment assets have been identified for possible decommissioning or disposal in the 10-year plan. N/A N/A N/A N/A 8.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 8.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. 162 Figure 8.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). The Town’s machinery and equipment costs are stable and well-managed over the 10-year period, with renewal as the main cost driver. Operations and maintenance are consistently funded, and the slight budget shortfall is minimal and is not expected to affect service delivery. 8.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: ‘coordinated activities to direct and control with regard to risk’45. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 8.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 8.16.1. Failure modes may include physical failure, collapse or essential service interruption. 45 ISO 31000:2009, p 2 163 Table 8.16.1 Critical Assets Critical Asset(s) Failure Modes Impact Large Capacity Generators/Back-up power for buildings Engine failure, fuel system issues, battery or electrical failure, cooling system failure. Loss of backup power for critical infrastructure, service interruption during power outages, increased risk to public safety, regulatory non- compliance if emergency system fails. Fleet Small Equipment – Fire Related Battery failure, engine failure, calibration, drift, glitches, physical damage. Impaired situational awareness, delayed response or evacuation, increased risk to firefighter safety, reduced effectiveness in rescue operations. Fire Equipment SCBA air supply failure or regulator malfunction, hose leakage or burst, gear degradation, ladder damage or instability. Life-threatening risk to firefighters, inability to fight fires effectively, property loss or escalation of fire, failure to meet NFPA/regulatory standards. By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 8.16.2 Risk Assessment The risk management process used is shown in Figure 8.16.2 below. It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. Fig 8.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 164 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 8.16.2. It is essential that these critical risks and costs are reported to management and the Council of the Town of Tillsonburg. Table 8.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Furniture Structural failure, instability, ergonomic issues M Routine inspections, repair/replace damaged furniture, ergonomic assessment program L $300 – $1,000 per item Fleet Small Equipment Engine failure, hydraulic leaks, safety feature malfunction H Preventive maintenance schedule, operator training, replacement based on condition/age M $5,000 – $25,000 per unit Fire Equipment SCBA malfunction, hose failure, turnout gear degradation VH Regular NFPA inspections, SCBA flow testing, hose pressure tests, gear replacement on cycle L $1,000 – $10,000 per item Health Club Equipment Electrical failure, motor burnout, injury from worn parts H Daily user inspections, quarterly maintenance checks, replace aging equipment based on hours of use M $2,000 – $10,000 per unit Generators (Large Capacity) Fuel system or engine failure, battery/panel malfunction VH Monthly testing, annual load testing, preventive servicing, part replacements based on hours or age L $10,000 – $50,000 per unit Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 8.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 165 8.16.4 Service and Risk Trade-Offs The decisions made in adopting this AM Plan are based on the objective of achieving the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  There are no identified maintenance, and/or capital project activities that cannot be completed as planned with the current budget or forecasted in the next 10 years. Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include:  N/A Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include:  N/A These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. 166 9.0 LAND IMPROVEMENTS This section details information about the land improvements asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 9.1 Asset Categories/Description The land improvements asset class comprises the following: Sports fields & Courts - 21 Outdoor Structures – 28 Playground Equipment – 23 Retaining Walls – 18 Walkways – 25 Transfer Station - 1 The above infrastructure assets have replacement value estimated at $10,836,727. 9.2 Strategic and Corporate Goals In alignment with the Town’s strategic vision, mission, and service delivery objectives, land improvements are important municipal assets that enhance the safety, usability, and visual appeal of public spaces. These assets support recreational opportunities, environmental stewardship, and community well-being by contributing to accessible, functional, and welcoming outdoor environments. The following table summarizes the relevant goals and objectives and how they are addressed for the land improvements asset class. Table 9.2: Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in the AM Plan Enhancement of Lifestyle and Amenities for Tillsonburg Residents and other Users Within the community, Tillsonburg will strive to offer all residents the amenities, services and attractions they require to enjoy balanced lifestyles. Update municipal outdoor sports facilities consistent with modern standards. Develop a robust, long-term asset management plan to inform evidence-based decisions regarding the maintenance, rehabilitation and replacement of community facilities. Increase opportunities to enjoy culture, events and leisure activities in Tillsonburg. Maintain and enhance programs and facilities to support an active, engaged senior population. Maintain and enhance programs and facilities to support an active, engaged youth population. Target new programs, services, amenities and attractions that will be a magnet for young families. Expand community partnerships in the delivery of programs and amenities. Improved Customer Service, Communication and Engagement The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and Continue to improve informational and directional signage throughout the Parks, Trails and Outdoor Recreational Facilities. Increase opportunities and promotion for public engagement in municipal initiatives. 167 Goal Objective How Goal and Objectives are addressed in the AM Plan opportunities to shape municipal initiatives. Engage community groups, including advisory committees and service organizations, in shaping municipal initiatives. Advocate for community needs with other levels of government. Prepare for Upcoming Community Growth The Town of Tillsonburg will accommodate and support sustainable growth. Plan and develop a long-term financing strategy for new services and infrastructure to support growth. Follow the recommendations in the Recreation Master Plan for future capital expenses relating to community growth. Finding alternative uses and programs to better utilize existing facilities. 9.3 Legislative Requirements As discussed in section 2.4 there are legislative requirements that are related to the management of all assets. The following requirements are specific to the facilities asset class. Table 9.3: Legislative Requirements Legislation Requirement Building Code Act, 1992 O.Reg.332/12 https://www.ontario.ca/laws/regulation/120332 Compliance with the Act with respect to ownership and responsibilities of the Town when constructing new/existing buildings. Electrical Safety Code O.Reg.164/99 under Electricity Act, 1998 https://www.ontario.ca/laws/regulation/990164 Compliance with the Act and regulation with respect to ownership and responsibilities of buildings including, but not limited to, annual inspections. Occupiers’ Liability Act, R.S.O. 1990, c.O.2 https://www.ontario.ca/laws/statute/90o02 This Act outlines the responsibilities of landowners, with respect to trails, requiring them to reasonably maintain the trail for recreational use and protect users from unreasonable risks. Canadian Standards Association CAN/CSA·Z614- 20 https://scc- ccn.ca/standardsdb/standards/4030444 This Standard provides requirements for public-use playground equipment intended for use by children aged 18 months to 12 years, with anthropometric limits based on the 95th percentile. 9.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when the Town of Tillsonburg commits to the upgrade of existing and acquisition of new assets, future operations, maintenance and renewal costs including depreciation will increase. 9.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $18,050,742 or $1,805,074 on average per year. Depreciation is excluded from these cost estimates. 9.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $12,637,259 or $1,263,726 on average per year which is approximately 70.01% of the cost to undertake the lifecycle activities. 168 The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organization is delivering the services in a financially sustainable manner. The 10-year LTFP results in a shortfall of $-541,348 on average per year of the forecast lifecycle costs required to provide services. This is shown in the figure below. The LTFP, on average, for the first 10-years is sufficient to provide services. This is shown in the figure below. Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). We plan to provide land improvements services for the following:  Operation, maintenance, renewal and acquisition of sports and courts, outdoor structures, playground equipment, retaining walls, walkways and a transfer station to meet service levels set by Council in annual budgets.  Various high priority renewal and acquisition projects within the 10-year planning period. 9.4.3 What we cannot do We currently do not allocate enough budget to sustain services at the proposed standard including the provision of new assets. Works and services that cannot be provided under present funding levels are:  All identified sports lighting installations and upgrades to LED  Pavilion installations and replacements  All parking lot expansions or conversions to asphalt  All playground replacements, other than those that pose a high health and safety risk 9.5 Risk Management The planned budget is insufficient to continue to manage risks in the medium term. The main risk consequences are:  Higher repair and maintenance costs Strategies and actions to manage these risks are discussed in Section 6.0. 169 9.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $1,263,726 on average per year giving a 10 year funding shortfall of $-541,348 per year. This indicates that 70.01% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are added. 9.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  Most asset conditions reflect staff opinions  Useful life estimates are based on employee opinions  Replacement costs are assumed to reflect recent market pricing or historical purchase data The Alternate Method utilizing information from the 10-year capital budget was used to forecast the renewal lifecycle costs for this AM Plan. This AM Plan is based on a low level of confidence in asset information. The next steps resulting from this AM Plan to improve asset management practices are:  Improve Asset Data Accuracy and Completeness  Implement Regular Condition Assessments  Enhance Maintenance and Cost Tracking  Establish Levels of Service Metrics 9.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers land improvement assets that support municipal services, enhance outdoor environments, and contribute to community well-being. These assets help provide safe, accessible, and appealing spaces that encourage recreation, connectivity, and a high quality of life for residents and visitors. The current levels of service for land improvements demonstrate the Town’s commitment to maintaining these assets in a condition that meets safety, accessibility, and functionality standards. Through regular inspections, preventative maintenance, and community feedback, the Town ensures these assets continue to support public use and operational needs effectively. The allocation in the planned budget is insufficient to continue providing these services at current levels for the planning period. The main service consequences of the planned budget are:  Level of service decline  Overuse of existing assets  Asset demand exceeds current supply, resulting in availability gaps. 9.8.3 Customer Research and Expectations This AM Plan is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The Town has undertaken a customer satisfaction survey regarding the overall condition, capacity and function of its Land Improvements assets through an online survey over a three (3) week period. Table 9.8.1 summarises the results for Land Improvements. 170 Table 9.8.1: Customer Satisfaction Survey Levels – Land Improvements Performance Measure Condition/Function/Capacity Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Parks & Trails (Including pavilions and playground equipment) 25% 63% 9% 3% Sports fields and courts 20% 71% 6% 3% 9.8.4 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. Customer Values indicate:  what aspects of the service is important to the customer,  whether they see value in what is currently provided and  the likely trend over time based on the current budget provision Table 9.8.2: Customer Values Service Objective: To provide safe, accessible, and well-maintained outdoor spaces that support recreation, connectivity, and community enjoyment. To ensure land improvements are reliable, functional, visually appealing, and managed sustainably to meet the diverse needs of residents and visitors. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Condition – Well- maintained, clean, attractive parks, trails, and outdoor recreation facilities for visitors and staff. 2025 AMP Survey. # of complaints received from service requests. 90% of survey respondents are satisfied with the current condition, function and capacity of land improvement assets. Expected trend is to remain the same. Functionality – Provide essential services and resources to support the needs/wants of its users. 2025 AMP Survey. # of complaints received from service requests. Expected trend is to remain the same. Capacity – Provide the correct number of amenities to accommodate the number of users. 2025 AMP Survey. # of complaints received from service requests. Expected trend is to decrease. As population increases, amenities, especially rental availability, is expected to be strained. Hours of Operation – Amenities readily open for business. # of complaints received from service requests. Minimal requests for an increase of operational hours. Expected trend is to remain the same. Safety & Security – Ensuring a safe and secure environment for visitors and staff. # of complaints received from service requests. With homeless encampments and drug use, safety and security are becoming a growing concern within the community. Expected trend is to increase as security enhancements/by-law presence will be increased with updated procedures. Accessibility – Parks, trails and outdoor recreations facilities should be inclusive and barrier-free for all users. # of complaints received from service requests. Increase in complaints regarding facility accessibility due to current/future legislation requirements. Expected trend is to increase. All future capital budgets include accessibility upgrades when required. 9.8.5 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? 171 Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? In Table 3.5 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. Table 9.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Condition of parks, trails and outdoor recreational facilities Condition assessments, inspection records. Current condition rating is 3.5 which falls in between the “fair” and “good” category. Majority of playgrounds have been replaced in the last 5 years. Maintenance and repairs are completed on an as needed basis. With the current 10-year budget and as usership increases it’s expected that the overall condition will decline over time. As outdoor facilities and amenities age; maintenance, repair and operational costs are expected to increase. Confidence levels Medium - Professional judgement supported by data sampling Medium - Professional judgement supported by data sampling Function Parks, trails and outdoor recreational facilities are functional and provide essential services and resources to support the needs/wants of its users Internal & External user feedback Staff Input Service Requests Currently functioning as intended. Issues addressed on an operational level as required. The expected trend will remain the same. The functionality over 10 years will not change. Confidence levels Medium - Professional judgement supported by data sampling. Medium - Professional judgement supported by data sampling Capacity Parks, trails and outdoor recreational facilities are able to meet user demands Internal & External user feedback Staff Input - # of facility bookings Service Requests Capacity of these amenities is sufficient during prime time (evenings and weekends). Much availability during non- prime time. The trend will decrease over time as the population grows, and the number of users increases. Confidence levels Medium - Professional judgement supported by data sampling. High - Professional Judgement supported by extensive data. 172 9.8.6 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Asset managers plan, implement and control technical service levels to influence the service outcomes.46 Table 9.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. Table 9.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet demand – increased level of service. Number of planned new assets or upgrades to assets. No acquisitions for the current budget. Project Big Swing, multiple paved parking lots, sports fields lighting installations, new splash pad. Budget $115,947 $334,557 Operation Lawn & Tree Maintenance, Landscaping, Grounds Maintenance, Winter Control, Season Start- Ups/Shut-Downs, Trail Grooming, Garbage Removal Annual operational costs for all outdoor recreational facilities. The current operational budget is sufficient to support the completion of planned activities. The current level of service is adequate. Recommended performance is to continue providing the current level of service with the current budget. Inspections H & S, ESA, Condition Assessments, Playground inspections. Current budget allows for annual, legislated inspection requirements. Proper documentation of regular inspections will assist with AM and capital replacements. Budget $509,258 $583,120 Maintenance General repairs and preventative maintenance # of MESH work orders received, both internal and external. Overall maintenance requirements. Current budget allows for reactive maintenance as required. Any emergency repairs addressed on an individual basis, budget and level of service considered. As population grows, additional staffing is required to maintain added parks, trails and new/upgraded outdoor recreational facilities. Budget $297,581 $340,798 Renewal Major component replacements to return the assets to the service capacity to which they provided when first put into service. Inspection reports, condition assessments, in-house staff suggestions. Minimal, only as needed. Paving projects likely to be left out. Minimal funding for number of projects in capital plan. Additional funding required to complete wants in capital forecast. Parking lots, pickleball lighting, Trottier Park splash pad will likely have to be deferred. Budget $340,940 $546,600 Disposal Take the asset out of service. Demolition or removal of asset. No disposals planned. No disposals planned. Budget $0 $0 46 IPWEA, 2015, IIMM, p 2|28. 173 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 9.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 9.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth  Economic Factors  Environmental Awareness Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 9.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 9.9.3. 9.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 9.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. Opportunities identified to manage demand are shown in Table 9.9.3. Further opportunities will be developed in future revisions of this AM Plan. Table 9.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 (As per Economic Development Commissioner). The population is expected to increase by approximately 7,130 people by 2036. There will be greater demand for additional parks, trails and outdoor recreation facilities as well as increased usage of current assets to meet the service requirements of the municipality. Development Charge Study, Recreation Master Plan, Strategic Plan, Condition Assessments. Economic Factors Building Condition Price Index (BCPI) increased 6.3% which has made everything substantially more expensive. Increase to tax levy does not cover the increases costs. Continue to steadily increase. Higher costs due to increases in the cost of materials, supplies, labour, equipment, overhead, etc. Procurement strategies to ensure competitive pricing. 174 Demand driver Current position Projection Impact on services Demand Management Plan Environmental Awareness Current impacts of climate change. Increase in environmentally conscious behaviour by residents, staff and Council. Higher construction/ renewal costs associated with LEED certification. Future facility design and rehabilitation should consider environmental factors, LEED certification and/or other approaches to sustainable design. 9.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 9.13. Acquiring new assets will commit the Town of Tillsonburg to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 9.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.47 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 9.9.5. Table 9.9.5 Managing the Impact of Climate Change on Assets and Services Climate Change Description Projected Change Potential Impact on Assets and Services Management Increasing temperatures and more frequent temperature fluctuations between hot and cold. Summer temperatures are expected to be hotter with more extreme heat days and winter temperatures are also rising. Deteriorating asset condition due to increasing temperatures and increasing frequency of rapid temperature fluctuations between hot and cold; reduction in service life of certain materials and components; increased importance on shade throughout outdoor amenities. Increased water usage (ie. Irrigation and outdoor water parks) Modify maintenance activities and schedules to meet conditions. Review and implementation of various materials that are more resilient to fluctuating temperatures. Increased inspection frequency. Increase budgets for urban canopy and higher water consumption costs. Increasing number of heavy precipitation days. Increase in the number of heavy precipitation days falling as rain, freezing rain and/or snow. Flooding, water infiltration, and structural weakening. It can overwhelm drainage systems, damage electrical equipment, and lead to erosion. These issues increase maintenance costs and disrupt operations. Modify operations and maintenance activities to meet these challenges. Improve drainage, waterproofing, flood barriers, vegetation maintenance, landscaping and winter maintenance will help reduce damage and ensure resilience. Enhanced winterization practices for outdoor amenities. 47 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 175 Climate Change Description Projected Change Potential Impact on Assets and Services Management Increasing number of intense storms Increase in frequency and intensity of storms resulting in high winds and severe weather. Structural damage, flooding, power outages, debris impact, tree damages/failures, damage and erosion to sports fields and grounds, leading to costly repairs. Reinforce structures with impact-resistant materials and secure amenities. Manage flooding with improved drainage, waterproofing, and flood barriers. Ensure power resilience by installing surge protectors. Regularly inspect and maintain all outdoor amenities and features, including trees. Develop emergency plans, train staff, and stock supplies for quick response. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change;  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 9.9.6 summarizes opportunities to build climate change resilience into new and existing assets. Table 9.9.6 Building Climate Change Resilience into New Assets New Asset Description Climate Change impact These assets? Build Resilience in New Works New parks, trails or outdoor recreational facilities Hotter temperatures and heat waves Increase urban canopy, installation of irrigation systems for sports fields, improved turf management practices making them more resilient to drought. More frequent heavy precipitation days Enhanced drainage systems, flood barriers/ diversion, elevate critical infrastructure, permeable landscaping. Increased intense storms Reinforced structural design, strengthen structural integrity, flood protection, emergency infrastructure (ie. warning system, shelters), landscaping for protection The impact of climate change on new and existing assets is evolving and new opportunities will be developed in future revisions of this AM Plan 9.10 Lifecycle Management Plan The lifecycle management plan details how the Town of Tillsonburg plans to manage and operate the assets at the agreed levels of service throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximise the value of the assets while minimising costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover:  Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement). 176  Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost- effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 9.10. Figure 9.10: Asset Lifecycle Activities 9.10.1 Background Data Physical parameters - the assets covered by this AM Plan are shown in Table 9.10.1. Table 9.10.1: Assets covered by this Plan Asset Category # of Assets Replacement Value Sports fields & courts 21 $6,659,257 Outdoor Structures 28 $1,230,847 Playground Equipment 23 $1,790,000 Retaining Walls 18 $182,140 Walkways 25 $491,293 Transfer Station 1 $483,190 Total 116 $10,836,727 Average Age 20 Years .1sset Age Profile The age profile of the assets included in this AM Plan are shown in Figure 9.10.1. 177 Figure 9.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation). The 2019 spike reflects the donated Scott McLean Outdoor Rink, with subsequent years showing steady, lower capital spending. As many assets near or exceed their useful lives, proactive planning is critical to address renewal needs and avoid costly deferred maintenance. 9.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 9.10.2. Table 9.10.2: Known Service Performance Deficiencies Location Service Deficiency Pump Track Significant cracks, holes, heaving throughout. Significant liability concerns. Rotary Park Parking Lot Accessibility issues, improper drainage, poor delineation. Sports Lighting Aging infrastructure, repair parts becoming obsolete, insufficient illumination. The above service deficiencies were identified from the Manager of Parks & Facilities. 9.10.3 Asset condition Currently, the condition ratings for outdoor structures are based on building asset components (Uniformat Classifications) that were identified in the Building Condition Assessments. All other conditions were provided internally by departmental staff based on past inspections and work orders. Condition is measured using a 1 – 5 grading system48 as detailed in Table 9.10.3. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1 – 5 grading scale for ease of communication. 48 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 178 Table 9.10.3: Condition Grading System Condition Grading Description of Condition 5 Very Good: free of defects, only planned and/or routine maintenance required 4 Good: minor defects, increasing maintenance required plus planned maintenance 3 Fair: defects requiring regular and/or significant maintenance to reinstate service 2 Poor: significant defects, higher order cost intervention likely 1 Very Poor: physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our land improvements assets is shown in Figure 9.10.3. Figure 9.10.3: Asset Condition Profile Approximately 50% of all land improvement assets are rated in the “good’ or “very good” condition rating. 9.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets are shown in Table 9.11. Table 9.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $284,008 2025 $297,581 2026 $308,830 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a 179 lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 9.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The Town has not developed a service hierarchy for this asset class. 9.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 9.11.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. Figure 9.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). The current operating and maintenance budget is sufficient for existing land improvement assets. Assumed assets will increase operating and maintenance costs over the 10-year period, which will require more budget dollars or will result in a decline in the level of service. 9.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). 180 The useful lives for outdoor structures are based on building asset components (Uniformat Classifications) that were identified in the Building Condition Assessments and their useful lives were provided in that exercise. The other asset categories useful lives were last reviewed in 2024. All asset useful lives will be further reviewed with the asset inventory re-structure and clean-up. Table 9.12: Useful Lives of Assets Asset (Sub)Category Average Useful life (All Asset Components) Sports fields & courts 10 to 25 Outdoor Structures 25 to 75 Playground Equipment 20 Retaining Walls 50 Walkways 20 to 40 Transfer Station 30 The estimates for renewals in this AM Plan were based on the most recent Building Condition Assessment data and the current 10-year capital plan. 9.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either:  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).49 It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide equivalent service.50 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 9.12.1. Table 9.12.1: Renewal Priority Ranking Criteria Criteria Weighting Inspections and Assessments 60% Safety and Compliance 15% Impact on Operations 15% Utilization 10% Total 100% 49 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 50 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 181 9.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 9.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. Figure 9.12.2: Forecast Renewal Costs Amounts are shown in real values (i.e., current values, net of inflation). Over the 10-year period the proposed renewal budget is not sufficient to undertake all recommended projects identified in the building condition assessments or 10-year capital plan. Further review of projects and priority ranking will adjust project timelines and priorities to ensure alignment with financial limitations and strategic objectives. 9.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social or environmental needs. Assets may also be donated to the Town of Tillsonburg. 9.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals can then be ranked by priority and available funds and scheduled in future works programmes. The priority ranking criteria is detailed in Table 9.13.1. Table 9.13.1: Acquired Assets Priority Ranking Criteria Criteria Weighting Operational Readiness 35% Cost Efficiency 35% 182 Level of Service Impact 10% Usage and Demand 10% Strategic Importance 10% Total 100% 9.13.2 Summary of future asset acquisition costs Forecast acquisition asset costs are summarised / summarized in Figure 9.13.2 and shown relative to the proposed acquisition budget. The forecast acquisition capital works program is shown in Appendix A. Figure 9.13.2: Acquisition (Constructed) Summary Amounts are shown in real values (i.e., current values, net of inflation). When an Entity commits to new assets, they must be prepared to fund future operations, maintenance and renewal costs. They must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the Entity. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 9.13.3. 183 Figure 9.13.3: Acquisition Summary Amounts are shown in real values (i.e., current values, net of inflation). Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The forecast acquisition costs exceed the proposed budget for major capital projects including parking lot expansions/paving, new playground structures, trail development, additional pickleball courts/tennis court, baseball diamonds/lighting and additional splash pad. To remain fiscally responsible, these projects may require rephasing, scope adjustments, or alternative funding strategies. 9.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 9.14. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 9.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 9.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings There are currently no land improvement assets identified for disposal. N/A N/A N/A N/A 9.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 9.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. 184 Figure 9.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). The lifecycle summary shows steady operational and maintenance costs, with significant spikes in renewal and acquisitions between 2027 and 2031—resulting in total costs exceeding the available budget during those years. This trend underscores the importance of aligning lifecycle strategies with funding levels to support the long-term performance and sustainability of land improvement assets. 9.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: ‘coordinated activities to direct and control with regard to risk’51. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 9.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 9.16.1. Failure modes may include physical failure, collapse or essential service interruption. The Town of Tillsonburg’s Land Improvement assets do not provide critical services. Most of the assets are for recreational purposes. 51 ISO 31000:2009, p 2 185 By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 9.16.2 Risk Assessment The risk management process used is shown in Figure 9.16.2 below. It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. Fig 9.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 9.16.2. It is essential that these critical risks and costs are reported to management and the Council of the Town of Tillsonburg. Table 9.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Sports Fields and Courts Surface wear, drainage failure, injuries H Regular inspections, resurfacing schedules, improved drainage systems M $25,000 - $50,000 Outdoor Structures Weather damage, structural failure M Periodic structural assessments, annual in-house inspections, weather-resistant L $15,000 to $20,000 186 Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs materials, prompt repairs Playground Equipment Equipment failure, child injury, vandalism H Monthly safety inspections, compliance with safety standards, user feedback/service requests L $15,000 to $20,000 Retaining Walls Erosion undermining wall, minor collapses, traffic hazard M Visual inspections, minor repairs (e.g., mortar, drainage holes), roadside barriers L $5,000 to $10,000 Transfer Station Waste spillage, fire risk, vehicle damage M Daily operational checks, fire suppressions systems, driver training (equipment) L $15,000 to $30,000 Walkways Trip hazards, surface wear, flooding M Inspections, routine maintenance, improved drainage L $10,000 to $25,000 Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 9.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership. We do not currently measure our resilience in service delivery. This will be included in future iterations of the AM Plan. 9.16.4 Service and Risk Trade-Offs The decisions made in adopting this AM Plan are based on the objective of achieving the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  Sports lighting upgrades to LED, other than those that pose a high health and safety risk  Sports lighting installation for Pickleball Court  Pavilion installations and replacements  Parking lot expansions or conversion to asphalt  Playground replacements, other than those that pose a high health and safety risk  Splash pad at Trottier Park Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include:  Level of service decline (ie. Daylight baseball only) 187  Overuse of existing assets (ie. Failure to expand as population increases)  Higher repair and maintenance costs  Continued AODA incompliance Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include:  Increased liability  Safety of users  Revenue generation loss  Higher costs for emergency repairs  Possible legal implications due to non-compliance 188 10.0 TECHNOLOGY & COMMUNICATION This section details information about the technology & communication asset class with key actions required to maintain service levels, optimise lifecycle costs, and support long-term financial sustainability. It defines the services, how they are provided and what funds are required to provide the services over the 10-year year planning period. The AM Plan expenditure forecasts inform the Long-Term Financial Plan which typically considers a 10-year planning period. 10.1 Asset Categories/Description The technology and communication asset class consists of both pooled and individual assets, comprising the following: Workstations – Laptops, desktops, monitors, etc. Communication Equipment – Cell phones, desk phones, etc. Servers/Network Equipment - Servers, switches, firewalls, etc. Fire Dispatch Equipment – 911 call equipment, CAD terminals, radio consoles, etc. The above infrastructure assets have replacement value estimated at $2,668,758. 10.2 Strategic and Corporate Goals In alignment with the Town’s strategic vision, mission, and service delivery objectives, technology and communication assets are vital for supporting efficient operations, enhancing public engagement, and ensuring timely information access. They enable effective communication, data management, and service delivery, playing a key role in emergency response, governance, and other essential municipal functions. The following table summarizes the relevant goals and objectives and how they are addressed for this asset class. Table 10.2: Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in the AM Plan The Town of Tillsonburg will strive for excellence and accountability in government, providing effective and efficient services, information, and opportunities to shape municipal initiatives. Continue to develop digital service delivery while maintaining counter and telephone channels. This AM Plan will aim to address the technology and communication assets that internal and external users require to expand digital services. Multi-year budgeting. AM plan establishes a 10-year funding analysis and plan for these assets. Position Tillsonburg as a leader in the municipal sector. Maintenance, renewal and upgrade of assets in a timely manner, when funding is available, will enhance the staffs’ efforts in being leaders in their respective fields. Tillsonburg residents and businesses will be connected to each other, regional networks, and the world through effective traditional and digital infrastructure. Develop a robust, long-term asset management plan to inform evidence-based decisions on the maintenance, rehabilitation and replacement of municipal infrastructure. This AM Plan is a transparent and open document that explains the Authority’s intentions in maintaining and operating its assets. Continue to support and advocate for reliable, affordable and universal access to broadband services. 189 10.3 Legislative Requirements As discussed in section 2.4 there are legislative requirements that are related to the management of all assets. The following requirements are specific to the technology and communication asset class. Table 10.3: Technology & Communications - Legislative Requirements Legislation Requirement National Fire Protection Association (NFPA) Standards NFPA 1221 / 1225 - Emergency services communications equipment Radiocommunication Act (federal) CRTC Emergency Services Regulations Licensing and management of municipal radio and emergency communication assets. Compliance with 911 standards and PSAP system reliability. Municipal Freedom of Information and Protection of Privacy Act (MFIPPA) Protects personal information held by municipalities. Requires secure handling and access control of digital assets. 10.4 Lifecycle Management Summary How we plan to manage and operate the assets at the agreed levels of service throughout their lifecycle is contingent on 10-year Long-Term Financial Plan (LTFP). Furthermore, when the Town of Tillsonburg commits to the upgrade of existing and acquisition of new assets, future operations, maintenance and renewal costs including depreciation will increase. 10.4.1 What does it Cost? The lifecycle costs necessary to provide the services covered by this AM Plan include operations, maintenance, renewal and upgrade of existing assets, and the acquisition of new assets to meet demand. Disposal of assets is also considered. When lifecycle costs are prepared for a minimum 10-year planning period, they can be used to inform the 10-year LTFP. The first 10-year lifecycle forecast is estimated to cost $12,646,560 or $1,264,656 on average per year. Depreciation is excluded from these cost estimates. 10.4.2 What we will do The funding made available in the first 10-years’ of the LTFP is $12,700,176 or $1,270,018 on average per year which is approximately 100.42% of the cost to undertake the lifecycle activities. The reality is, only what is funded in the LTFP can be provided. Informed decision making depends on the AM Plan emphasizing the consequences of planned budgets on the service levels provided and communicating the residual risks. It is important to ensure the organization delivers the services in a financially sustainable manner. The 10-year LTFP results in a surplus of $5,362 on average per year of the forecast lifecycle costs required to provide services. This is shown in the figure below. The LTFP, on average, for the first 10-years is sufficient to provide services. This is shown in the figure below. 190 Forecast Lifecycle Costs and Planned Budgets Amounts are shown in real values (i.e., current values, net of inflation). We plan to provide technology & communication services for the following:  Operation, maintenance, renewal and acquisition of workstations, communication equipment, servers/network equipment and fire dispatch equipment to meet service levels set by Council in annual budgets.  Annual computer hardware replacements, cell phone replacements, servers, network equipment replacements, within the 10-year planning period. 10.4.3 What we can do We currently allocate enough budget to sustain services at the proposed standard including the provision of new assets. Works and services that can be provided under present funding levels are:  Support ongoing operations and maintenance activities, including those of the established internal IT department within the 10-year planning period.  Planned annual hardware renewals, along with new acquisitions to equip additional staff as the workforce grows within the 10-year planning period. 10.5 Risk Management The planned budget is sufficient to continue to manage risks in the medium term. The main risk consequences are:  There are currently no identified risk consequences. Strategies and actions to manage these risks are discussed in Section 10.16. 10.6 Financial Summary Providing financially sustainable and affordable services from infrastructure requires the careful management of service levels, costs and risks. The 10-year LTFP is $1,270,018 on average per year giving a 10 year funding surplus of $5,362 per year. This indicates that 100.42% of the forecast costs needed to provide the services documented in this AM Plan are accommodated in the LTFP. Asset values are forecast to increase as additional assets are added. 191 10.7 Monitoring and Improvement Program Key assumptions made in this AM Plan are:  Recently established internal IT department is still in the process of becoming fully familiar with the municipality’s IT assets.  Inventory replacement costs are estimates provided by internal staff. The Alternate Method utilizing information from the 10-year capital budget was used to forecast the renewal lifecycle costs for this AM Plan. This AM Plan is based on a low level of confidence in the asset information. The next steps resulting from this AM Plan to improve asset management practices are:  Improve Asset Data Accuracy and Completeness  Develop asset condition assessment procedure  Establish service levels and performance metrics 10.8 Levels of Service Levels of service define the standards and performance targets that infrastructure assets are expected to meet to ensure they provide reliable, safe, and efficient services to the community. This section covers technology and communication assets that support essential municipal services, administrative functions, and community engagement. These assets enable efficient information flow, service delivery, and emergency response—contributing to organizational resilience and quality of life. The current levels of service reflect the Town’s commitment to maintaining reliable, secure, and accessible technology systems that support core operations. Assets are managed to meet performance standards, security protocols, and operational requirements. Performance is monitored through regular assessments, user feedback, and issue tracking to ensure ongoing effectiveness for staff and residents. The allocation in the planned budget is sufficient to continue providing these services at current levels for the planning period. The main service consequences of the planned budget are:  There are no identified consequences of the planned budget. 10.8.1 Customer Research and Expectations This section is prepared to facilitate consultation prior to adoption of levels of service by the Council of the Town of Tillsonburg. The Internal 2025 Asset Management Plan Survey was open to staff/asset users for a three-week period. The survey requested input on the condition, function and capacity of the Technology & Communication asset class Table 10.8.1 summarizes the results from our Customer Satisfaction Survey. Table 10.8.1: Customer Satisfaction Survey Levels – Technology & Communication Performance Measure Overall Condition/Function/Capacity Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Workstations (Laptops, desktop computers, monitors, etc) 13% 68% 13% 6% Cell Phones/Desk Phones 14% 64% 11% 11% 192 Performance Measure Overall Condition/Function/Capacity Satisfaction Level Very Satisfied Satisfied Dissatisfied Very Dissatisfied Internet/Network Connections 13% 56% 20% 11% Fire Dispatch equipment 17% 71% 12% 0% 10.8.2 Customer Values Service levels are defined in three ways, customer values, customer levels of service and technical levels of service. Customer Values indicate:  what aspects of the service is important to the customer,  whether they see value in what is currently provided and  the likely trend over time based on the current budget provision Table 10.8.2: Customer Values Service Objective: To provide reliable, secure, and accessible technology that supports efficient service delivery and effective communication. To maintain user-friendly systems that ensure timely information access and protect data, while promptly addressing technical issues to minimize disruptions. Customer Values Customer Satisfaction Measure Current Feedback Expected Trend Based on Planned Budget Provide a reliable and secure network with internet access for internal and external customers. 2025 AMP Survey Staff IT Service Tickets 69% of respondents are satisfied. 8% of respondents feel the internet connection could be better. Expected trend should increase as the internet connection has been upgraded to a dedicated Town connection vs. a shared County connection. Provide reliable hardware and software with current technology. 2025 AMP Survey Staff IT Service Tickets 81% of respondents are satisfied with the condition, function and capacity of the provided hardware. 2 suggestions received regarding software upgrades required. Expected trend should increase as the current replacement plan will be followed for hardware assets. Software will be upgraded and supported in a timelier fashion due to internal IT department. Provide reliable communications infrastructure (Cell Phones, Desk Phones, etc.) 2025 AMP Survey Staff IT Service Tickets 78% of respondents are satisfied with the condition, function and capacity. 3 complaints received regarding telephone system. Expected trend should increase as the Bell Total Connect telephone system is due for replacement in the next year. Provide assets that are in-service/available when needed. 2025 AMP Survey Staff IT Service Tickets No complaints received regarding the availability of technology and communication assets. Expected trend should remain the same. 10.8.3 Customer Levels of Service The Customer Levels of Service are considered in terms of: Condition How good is the service … what is the condition or quality of the service? Function Is it suitable for its intended purpose …. Is it the right service? Capacity/Use Is the service over or under used … do we need more or less of these assets? 193 In Table 10.8.3 under each of the service measures types (Condition, Function, Capacity/Use) there is a summary of the performance measure being used, the current performance, and the expected performance based on the current budget allocation. These are measures of fact related to the service delivery outcome (e.g. number of occasions when service is not available or proportion of replacement value by condition %’s) to provide a balance in comparison to the customer perception that may be more subjective. Table 10.8.3: Customer Level of Service Measures Type of Measure Level of Service Performance Measure Current Performance Expected Trend Based on Planned Budget Condition Condition of the assets IT Service Tickets, warranty claims, repair statistics Average condition rating is 3, which falls in the fair category. Moderate amount of IT service tickets. Low warranty claims. Minimal physical repairs. Expected trend is to increase. The level of service should also increase within the current budget due to internal IT department and upgraded ticketing system. Confidence levels Medium - Professional judgement supported by data sampling High - Professional Judgement supported by extensive data Function Assets are functional and are providing the required service to internal and external customers IT Service Tickets No complaints from end users on the functionality of the assets. Expected trend is to remain the same within the current budget. Confidence levels Medium - Professional judgement supported by data sampling High - Professional Judgement supported by extensive data Capacity Assets are meeting the requirements for internal and external customers IT Service Tickets Low amount of IT service tickets regarding the capacity. Expected trend is to remain the same within the current budget. Confidence levels Medium - Professional judgement supported by data sampling High - Professional Judgement supported by extensive data 10.8.4 Technical Levels of Service Technical Levels of Service – To deliver on the customer values, and impact they have on Customer Levels of Service, are operational or technical measures of performance. These technical measures relate to the lifecycle activities and allocation of resources to best achieve the desired customer outcomes and demonstrate effective performance. Service and asset managers plan, implement and control technical service levels to influence the service outcomes.52 Table 10.8.4 shows the lifecycle activities related to the current 10 year planned budget, and the forecast costs recommended in this AM Plan. 52 IPWEA, 2015, IIMM, p 2|28. 194 Table 10.8.4: Technical Levels of Service Lifecycle Activity Purpose of Activity Activity Measure Current Performance* Recommended Performance ** TECHNICAL LEVELS OF SERVICE Acquisition New and upgraded assets to meet the demands of the internal and external customers. New technology and communications assets required to accommodate growth. Currently only budgeting for additional hardware. Growth in the municipality has resulted in new/additional hires. Better information will be provided in the future once more knowledge is obtained from internal IT Department. Budget $20,000 $20,000 Operations Regular activities and costs for internal and external customers to utilize the assets. Software subscriptions, cloud services and hosting, internal and network services, staff salaries and benefits, training, cybersecurity measures, mobile device and communication costs, leasing/rental contracts Current budget is sufficient to complete the required operational activities. Level of service should increase at the current budget as internal IT department is now monitoring network and hardware performance. Cybersecurity training and monitoring of completion. Communication monitoring and switching providers for cell phones. Budget $838,038 $838,038 Maintenance Maintain assets as close as possible to optimal service conditions and ensure they remain functional throughout their useful life. Hardware upkeep and repairs, software updates and patches, network infrastructure maintenance, security system maintenance, server room maintenance, end-user equipment servicing Current budget is sufficient to complete the required maintenance activities. Level of service should increase at the current budget as internal IT department is now completing required maintenance and patches, preventative maintenance and upgrading when required. Budget $244,668 $244,668 Renewal Replace or return the assets to the service capacity to which they provided when first put into service Replacement hardware, communication equipment, fire dispatch equipment, mobile devices, network infrastructure, back- up power systems. Current budget allows for annual replacements occurring at scheduled replacement intervals. Maintain current level of service. Some fire dispatch equipment will come due for replacement in 10-yearr budget. FireComm reserves should fund a majority replacements. Budget $167,312 $167,312 Disposal Remove the assets from service Destruction or selling of assets that have reached their end of useful life e-Waste depots are used to recycle assets. If there is any value, Gov-Deals auction is utilized. e-Waste process to be maintained as well as Gov-Deals. Budget $0 $0 195 Note: * Current activities related to planned budget. ** Expected performance related to forecast lifecycle costs. It is important to monitor the service levels regularly as circumstances can and do change. Current performance is based on existing resource provision and work efficiencies. It is acknowledged that circumstances such as technology and customer priorities will change over time. 10.9 Future Demand Future demand refers to the anticipated need for infrastructure services driven by factors such as population movement, economic development, technological advancements, and changing environmental or community expectations. 10.9.1 Demand Drivers A demand driver refers to the factors or trends that influence the need for infrastructure services and capacity. The factors influencing future demand are created by:  Population Growth  Economic Factors  Technology Changes Demand drivers help predict future infrastructure needs and guide planning and investment decisions. 10.9.2 Demand Forecasts The current position and projections for demand drivers that may impact future service delivery and use of assets have been identified and documented in Table 10.9.3. 10.9.3 Impacts and Demand Management Plan The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 10.9.3. The impact on service delivery will be managed through a combination of managing and upgrading existing assets and the provision of new assets to meet demand. Demand management practices can include non-asset solutions, insuring against risks and managing failures. Opportunities identified to manage demand are shown in Table 10.9.3. Further opportunities will be developed in future revisions of this AM Plan. Table 10.9.3: Demand Management Plan Demand driver Current position Projection Impact on services Demand Management Plan Population Growth In 2024 the population was estimated at 20,470 (As per Economic Development Commissioner) Population is expected to increase by approximately 7130 people by 2036. There will be a greater demand for additional technology and communication assets as well as increased usage of current assets to meet the service requirements of the municipality. Assess current capacity through audits and usage analysis, then project future demand based on population growth. Identify key technology needs, including network expansion, cybersecurity, and smart infrastructure. Develop a scalable strategy with cloud adoption, fibre upgrades, and modernized communication tools. Economic Factors Inflation has significantly raised costs for IT hardware, software, communication devices and maintenance. It is anticipated that the costs will continue to increase due to tariffs and further inflation. Higher costs, delay in receiving new units/parts resulting in more down- time. Inability to repair units due to no parts available. Prioritize critical renewals/upgrades, optimize spending through shared services, partnerships, bulk purchasing and leverage cloud solutions to reduce infrastructure costs. 196 Demand driver Current position Projection Impact on services Demand Management Plan Technology Changes Technology is constantly changing and advancing at a fast pace. It is anticipated that it will continue to keep changing and advancing rapidly. Continuously adapt technology and communication assets, balancing innovation with budget constraints. Regularly assess assets, prioritize upgrades and adopt cloud solutions. Invest in cybersecurity, workforce training, and proactive maintenance ensures sustainability. Continuous monitoring and adaptive planning keep these assets aligned with evolving demands. 10.9.4 Asset Programs to meet Demand The new assets required to meet demand may be acquired, donated or constructed. Additional assets are discussed in Section 10.13. Acquiring new assets will commit the Town of Tillsonburg to ongoing operations, maintenance and renewal costs, and depreciation expenses for the period that the service provided from the assets is required. These future costs and expenses are identified and considered in developing the long-term financial plan. 10.9.5 Climate Change Adaptation The impacts of climate change may have a significant impact on the assets we manage and the services they provide. In the context of the Asset Management Planning process climate change can be considered as both a future demand and a risk that needs to be managed. How climate change impacts on assets will vary depending on the location and the type of services provided, as will the way in which we respond and manage those impacts.53 As a minimum we consider how to manage our existing assets given potential climate change impacts for our region. Risk and opportunities identified to date are shown in Table 10.9.5. Table 10.9.5 Managing the Impact of Climate Change on Assets and Services Climate change risk Projection Impact on services Climate Change Management Plan eWaste Recycling Recycling fees for batteries or hardware. Costs to increase. Monitor fee structures and impacts. Heavy Precipitation Days Increase in number of heavy precipitation days falling as rain, freezing rain and/or snow. Physical damage, service interruptions and data loss. Fiber-optic cables and underground infrastructure may be damaged or washed away disrupting internet and phone services. Water infiltration can short-circuit servers, data centres and networking hardware leading to costly repairs. Implement elevated installations, waterproof enclosures, redundant data centres, and backup power solutions to ensure resilience against flooding events. Intense Storms Increased frequency and intensity of storms resulting in high Satellite communications and mobile network disruptions impacting emergency services and Invest in reliable back-up power systems, hardened infrastructure, and disaster recovery plans to minimize 53 IPWEA Practice Note 12.1 Climate Change Impacts on the Useful Life of Infrastructure 197 Climate change risk Projection Impact on services Climate Change Management Plan winds and severe weather and power outages. public communication systems. Damage to communication towers, power lines and equipment, causing power outages, service disruptions, and data loss. the impact of storm-related disruptions. Additionally, the way in which we construct new and upgrade existing assets should recognise that there is opportunity to build in resilience to climate change impacts. Building resilience can have the following benefits:  Assets will withstand the impacts of climate change;  Services can be sustained; and  Assets that can endure may potentially lower the lifecycle cost and reduce their carbon footprint. Table 10.9.6 summarizes opportunities to build climate change resilience into new and existing assets. Table 10.9.6 Building Climate Change Resilience into New Assets New Asset Description Climate Change impact These assets? Build Resilience in New Works Back-up power systems Increased frequency and severity of extreme weather causing damage to power infrastructure and blackouts. Flooding and storm surges causing disruptions with power generation and grid infrastructure. Back-up power systems should use renewable energy with storage, be elevated to avoid flood damage, and include redundancy and smart monitoring. Flood-proof data centres should be built on higher ground or elevated, waterproofed, and have offsite backups and independent cooling. These measures help ensure continuous operation during extreme weather events. Flood-proof data centres The impact of climate change on new and existing assets is evolving and new opportunities will be developed in future revisions of this AM Plan. 10.10 Lifecycle Management Plan The lifecycle management plan details how the Town of Tillsonburg plans to manage and operate the assets at the agreed levels of service (Refer to Section 3) throughout their entire lifecycle, from acquisition or creation to disposal. The goal is to maximise the value of the assets while minimising costs and risks, ensuring they continue to meet performance requirements over time. From a financial perspective, infrastructure activities tend to be classified as being either Operating or Capital. The lifecycle activities used in the asset management and financial planning and reporting process cover:  Capital o Acquisition – the activities to provide a higher level of service (e.g., widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (e.g. a new library). o Renewal – the activities that replace or restore assets to the standard it had originally provided (e.g., road resurfacing and pavement reconstruction, pipeline replacement and building component replacement).  Operating o Operations - the routine activities that keep services accessible and effective, balancing efficiency with user expectations (e.g. opening hours, cleansing, mowing grass, energy, inspections, etc.) o Maintenance – the preventative and corrective actions to sustain asset functionality and minimise unexpected failures. Maintenance activities enable an asset to provide service for its planned life (e.g., road patching, unsealed road grading, building and structure repairs). 198 o Disposal – the decommissioning, removing, or repurposing of assets that are no longer cost- effective, safe, or necessary (e.g. shutting down an old water treatment plant, demolishing unsafe buildings, dismantling old bridges, etc.). A pictorial representation of the asset lifecycle activities is shown below in Figure 10.10. Figure 10.10: Asset Lifecycle Activities 10.10.1 Background Data Physical parameters - the assets covered by this AM Plan are shown in Table 10.10.1. Table 10.10.1: Assets covered by this Plan Asset Category Replacement Value Workstations $367,515 Communication Equipment $317,684 Servers/Network Equipment $116,250 Fire Dispatch Equipment $1,867,309 Total $2,668,758 Average Age 8 Years .1sset Age Profile The age profile of the assets included in this AM Plan are shown in Figure 10.10.1. 199 Figure 10.10.1: Asset Age Profile Amounts are shown in real values (i.e., current values, net of inflation). There has been a steady increase in technology and communication assets starting in 2016. The significant peaks observed in 2022 and 2023 are primarily due to NG-911 grant funding, which supported the acquisition of new fire dispatch equipment. Additional NG-911 grants received in 2024 and 2025 will further expand the asset inventory as the new equipment is put into service. To support long-term sustainability, the Town must develop a comprehensive replacement strategy for its technology assets. Future iterations of this plan will benefit from a more accurate and complete inventory, as the newly established Internal IT Department takes on responsibility for managing the full lifecycle of these assets. 10.10.2 Asset capacity and performance Assets are generally provided to meet design standards where these are available. However, there is insufficient resources to address all known deficiencies. Locations where deficiencies in service performance are known are detailed in Table 10.10.2. Table 10.10.2: Known Service Performance Deficiencies Location Service Deficiency Server Room - CSC Aging SQL Server is still in use. In the process of moving data to a new SQL server and decommissioning the old one Server Room - CSC Aging Laserfiche server in use and storing documents. In the process of moving to a cloud setup Older Monitor Upgrades Older odd sized and poor preforming monitors are in use, and we are starting to replace them as needed. The above service deficiencies were identified by the Manager of IT. 10.10.3 Asset condition Condition is currently monitored by the age of the asset and staff opinion. Technology and communication assets are replaced on an as needed basis. Expected useful life is used as a guideline for replacements and is followed when possible. Utilization, capacity and staff errors may cause early replacements. Condition is measured using a 1 – 5 grading system54 as detailed in Table 10.10.3. It is important that a consistent approach is used in reporting asset performance enabling effective decision support. A finer grading 54 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 200 system may be used at a more specific level, however, for reporting in the AM plan results are translated to a 1 – 5 grading scale for ease of communication. Table 10.10.3: Condition Grading System Condition Grading Description of Condition 5 Very Good: free of defects, only planned and/or routine maintenance required 4 Good: minor defects, increasing maintenance required plus planned maintenance 3 Fair: defects requiring regular and/or significant maintenance to reinstate service 2 Poor: significant defects, higher order cost intervention likely 1 Very Poor: physically unsound and/or beyond rehabilitation, immediate action required The condition profile of our assets is shown in Figure 10.10.3. Figure 10.10.3: Asset Condition Profile Condition is not currently monitored in a formal way. It is based on staff resources opinion with age being a large factor. 10.11 Operations and Maintenance Plan Operations include regular activities to provide services. Examples of typical operational activities include cleaning, street sweeping, asset inspection, and utility costs. Maintenance includes all actions necessary for retaining an asset as near as practicable to an appropriate service condition including regular ongoing day-to-day work necessary to keep assets operating. Examples of typical maintenance activities include pipe repairs, asphalt patching, and equipment repairs. The trend in maintenance budgets is shown in Table 10.11. Table 10.11: Maintenance Budget Trends Year Maintenance Budget $ 2024 $233,060 201 2025 $244,668 2026 $253,917 Maintenance budget levels are considered to be adequate to meet projected service levels, which may be less than or equal to current service levels. Where maintenance budget allocations are such that they will result in a lesser level of service, the service consequences and service risks have been identified and are highlighted in this AM Plan and service risks considered in the Infrastructure Risk Management Plan. Assessment and priority of reactive maintenance is undertaken by staff using experience and judgement. 10.11.1 Asset hierarchy An asset hierarchy provides a framework for structuring data in an information system to assist in collection of data, reporting information and making decisions. The hierarchy includes the asset class and component used for asset planning and financial reporting and service level hierarchy used for service planning and delivery. The service hierarchy is shown is Table 10.11.1. Table 10.11.1: Asset Service Hierarchy Service Hierarchy Service Level Objective Workstations/Laptops Ensure availability and operational for each staff member assigned a laptop asset. Communication Equipment Ensure adequate uptime, rapid issue response, regular maintenance, and accurate asset tracking to support uninterrupted municipal operations. Servers/Network Equipment Ensure adequate uptime, ensure prompt response to outages, perform regular maintenance and updates, and keep asset records accurate to support reliable and secure municipal services. Fire Dispatch Equipment Ensure adequate uptime, immediate response to any failures, regular maintenance and testing, and accurate asset tracking to support continuous and reliable emergency communication services. 10.11.2 Summary of forecast operations and maintenance costs Forecast operations and maintenance costs are expected to vary in relation to the total value of the asset stock. If additional assets are acquired, the future operations and maintenance costs are forecast to increase. If assets are disposed of the forecast operation and maintenance costs are expected to decrease. Figure 10.11.2 shows the forecast operations and maintenance costs relative to the proposed operations and maintenance Planned Budget. 202 Figure 10.11.2: Operations and Maintenance Summary Amounts are shown in real values (i.e., current values, net of inflation). The projected operational and maintenance costs remain consistent through 2034 which is sufficient to provide the current level of service. Operational costs make up the bulk of expenses, with maintenance relatively steady. Continued monitoring and budget adjustments will help ensure financial sustainability and asset reliability. 10.12 Renewal Plan Renewal is major capital work which does not significantly alter the original service provided by the asset, but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is considered to be an acquisition resulting in additional future operations and maintenance costs. Assets requiring renewal are identified from one of two approaches in the Lifecycle Model.  The first method uses Asset Register data to project the renewal costs (replacement cost) and renewal timing (acquisition year plus updated useful life to determine the renewal year), or  The second method uses an alternative approach to estimate the timing and cost of forecast renewal work (i.e. condition modelling system, staff judgement, average network renewals, or other). The typical useful lives of assets used to develop projected asset renewal forecasts are shown in Table 10.12. Asset useful lives will be reviewed with the asset inventory re-structure and clean-up. Table 10.12: Useful Lives of Assets Asset (Sub)Category Useful life Workstations 5 Communication Equipment 5 Servers/Network Equipment 10 Fire Dispatch Equipment 15 The estimates for renewals in this AM Plan were based on information provided by the Manager of IT Services and the 10-year capital plan. 10.12.1 Renewal ranking criteria Asset renewal is typically undertaken to either: 203  Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (e.g. replacing a bridge that has a 5 t load limit), or  To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. condition of a playground).55 It is possible to prioritise renewals by identifying assets or asset groups that:  Have a high consequence of failure,  Have high use and subsequent impact on users would be significant,  Have higher than expected operational or maintenance costs, and  Have potential to reduce life cycle costs by replacing it with a modern equivalent asset that would provide the equivalent service.56 The ranking criteria used to determine priority of identified renewal proposals is detailed in Table 10.12.1. Table 10.12.1: Renewal Priority Ranking Criteria Criteria Weighting Criticality – Importance to Operations 60% Risk of Failure - Likelihood and Impact of Failure 15% Security Vulnerability – Security Risk 10% User/Level of Service Impact 10% Replacement Cost 5% Total 100% 10.12.2 Summary of future renewal costs Forecast renewal costs are projected to increase over time if the asset stock increases. The forecast costs associated with renewals are shown relative to the proposed renewal budget in Figure 10.12.2. A detailed summary of the forecast renewal costs is shown in Appendix D. 55 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 56 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97. 204 Figure 10.12.2: Forecast Renewal Costs Amounts are shown in real values (i.e., current values, net of inflation). Capital investment is projected to be highest in 2026 due to a planned CAD upgrade for Fire Dispatch, then stabilizes from 2027 onward. Estimated costs remain consistent and gradually increase, while the capital budget also grows slightly each year. Starting in 2027, estimated expenditures align more closely with the budget, indicating improved long-term financial planning. 10.13 Acquisition Plan Acquisition reflects are new assets that did not previously exist or works which will upgrade or improve an existing asset beyond its original service level. They may result from growth, demand, social, or environmental needs. Assets may also be donated to the Town of Tillsonburg. 10.13.1 Selection criteria Proposed acquisition of new assets, and upgrade of existing assets, are identified from various sources such as community requests, proposals identified by strategic plans or partnerships with others. Potential upgrade and new works should be reviewed to verify that they are essential to the Entities needs. Proposed upgrade and new work analysis should also include the development of a preliminary renewal estimate to ensure that the services are sustainable over the longer term. Verified proposals can then be ranked by priority and available funds and scheduled in future works programs. The Town currently does not have an acquired assets priority ranking criteria for the technology and communication asset class. 10.13.2 Summary of future asset acquisition costs Forecast acquisition asset costs are summarised / summarized in Figure 10.13.2 and shown relative to the proposed acquisition budget. The forecast acquisition capital works program is shown in Appendix A. 205 Figure 10.13.2: Acquisition (Constructed) Summary Amounts are shown in real values (i.e., current values, net of inflation). When an Entity commits to new assets, they must be prepared to fund future operations, maintenance and renewal costs. They must also account for future depreciation when reviewing long term sustainability. When reviewing the long-term impacts of asset acquisition, it is useful to consider the cumulative value of the acquired assets being taken on by the Entity. The cumulative value of all acquisition work, including assets that are constructed and contributed shown in Figure 10.13.3. Figure 10.13.3: Acquisition Summary Amounts are shown in real values (i.e., current values, net of inflation). Expenditure on new assets and services in the capital works program will be accommodated in the long-term financial plan, but only to the extent that there is available funding. The new acquisitions budget of $20,000 is allocated for workstation equipment to support additional or new employees resulting from organizational growth. 206 10.14 Disposal Plan Disposal includes any activity associated with the disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 10.14. A summary of the disposal costs and estimated reductions in annual operations and maintenance of disposing of the assets are also outlined in Table 10.14. Any costs or revenue gained from asset disposals is included in the long-term financial plan. Table 10.14: Assets Identified for Disposal Asset Reason for Disposal Timing Disposal Costs Operations & Maintenance Annual Savings There are currently no technology and communication assets identified for disposal. N/A N/A N/A N/A 10.15 Summary of asset forecast costs The financial projections from this asset plan are shown in Figure 10.15. These projections include forecast costs for acquisition, operation, maintenance, renewal, and disposal. These forecast costs are shown relative to the proposed budget. The bars in the graphs represent the forecast costs needed to minimize the life cycle costs associated with the service provision. The proposed budget line indicates the estimate of available funding. The gap between the forecast work and the proposed budget is the basis of the discussion on achieving a balance between costs, levels of service and risk to achieve the best value outcome. Figure 10.15: Lifecycle Summary Amounts are shown in real values (i.e., current values, net of inflation). Unused reserves from 2025 will adequately cover the increase in renewal costs in 2026. From 2027 onward, all expenditures remain stable, and the average annual budget over the 10-year period is sufficient to meet all projected expenses. 10.16 Risk Management Planning The purpose of infrastructure risk management is to document the findings and recommendations resulting from the periodic identification, assessment and treatment of risks associated with providing services from 207 infrastructure, using the fundamentals of International Standard ISO 31000:2018 Risk management – Principles and guidelines. Risk Management is defined in ISO 31000:2018 as: ‘coordinated activities to direct and control with regard to risk’57. An assessment of risks associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, and the consequences should the event occur. The risk assessment should also include the development of a risk rating, evaluation of the risks and development of a risk treatment plan for those risks that are deemed to be non- acceptable. 10.16.1 Critical Assets Critical assets are defined as those which have a high consequence of failure causing significant loss or reduction of service. Critical assets have been identified and along with their typical failure mode, and the impact on service delivery, are summarized in Table 10.16.1. Failure modes may include physical failure, collapse, or essential service interruption. Table 10.16.1 Critical Assets Critical Asset(s) Failure Mode Impact Critical services assets Inoperable Loss of life protection services to potentially 100,000+ individuals Payment generating assets Inoperable Inability to process payments, verify accounts, collect fines Security infrastructure Malfunction, Failure System compromise, data breaches/corruption, service disruption, theft By identifying critical assets and failure modes an organization can ensure that investigative activities, condition inspection programs, maintenance and capital expenditure plans are targeted at critical assets. 10.16.2 Risk Assessment The risk management process used is shown in Figure 10.16.2 below. It is an analysis and problem-solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks. The process is based on the fundamentals of International Standard ISO 31000:2018. 57 ISO 31000:2009, p 2 208 Fig 10.16.2 Risk Management Process – Abridged Source: ISO 31000:2018, Figure 1, p9 The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, development of a risk rating, evaluation of the risk and development of a risk treatment plan for non-acceptable risks. An assessment of risks58 associated with service delivery will identify risks that will result in loss or reduction in service, personal injury, environmental impacts, a ‘financial shock’, reputational impacts, or other consequences. Critical risks are those assessed with ‘Very High’ (requiring immediate corrective action) and ‘High’ (requiring corrective action) risk ratings identified in the Infrastructure Risk Management Plan. The residual risk and treatment costs of implementing the selected treatment plan is shown in Table 10.16.2. It is essential that these critical risks and costs are reported to management and Council. 58 REPLACE with Reference to the Corporate or Infrastructure Risk Management Plan as the footnote 209 Table 10.16.2: Risks and Treatment Plans Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Residual Risk * Treatment Costs Workstations Device failure M to H Back-up workstations maintained. Repair within the warranty period. Replace with lifecycle management. L $1,000 to $3,000 Communication Equipment Device failure H Repair within Warranty Replace with lifecycle management Stock maintained to avoid work disruption L $500 to $5,000 Servers/Network Equipment Device failure - Network down, time lost not being able to work. H Repair within warranty period. Replace with lifecycle management. Stock maintained to avoid work disruption. L $5,000 to $50,000 Fire Dispatch Equipment Device failure – Loss of critical services, loss of life/injuries. VH Have on call emergency support. Repair within the warranty period. Replace with lifecycle management. M $10,000 to $50,000 Note * The residual risk is the risk remaining after the selected risk treatment plan is implemented. 10.16.3 Infrastructure Resilience Approach The resilience of our critical infrastructure is vital to the ongoing provision of services to customers. To adapt to changing conditions we need to understand our capacity to ‘withstand a given level of stress or demand, and to respond to possible disruptions to ensure continuity of service. Resilience recovery planning, financial capacity, climate change risk assessment and crisis leadership. Our current measure of resilience is shown in Table 10.16.3 which includes the type of threats and hazards and the current measures that the organisation takes to ensure service delivery resilience. 10.16.4 Service and Risk Trade-Offs The decisions made in adopting this AM Plan are based on the objective of achieving the optimum benefits from the available resources. What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:  There are no identified maintenance, and/or capital project activities that cannot be completed as planned within the current budget or forecasted in the next 10 years. 210 Service trade-off If there is forecast work (operations, maintenance, renewal, acquisition or disposal) that cannot be undertaken due to available resources, then this will result in service consequences for users. These service consequences include:  N/A Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may sustain or create risk consequences. These risk consequences include:  N/A These actions and expenditures are considered and included in the forecast costs, and where developed, the Risk Management Plan. 211 11.0 FINANCIAL SUMMARY This section contains the financial requirements resulting from the information presented in the previous sections of this Asset Management Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. This section contains the financial requirements resulting from the information presented in the previous sections of this Asset Management Plan. The financial projections will be improved as the discussion on desired levels of service and asset performance matures. 11.1 Financial Statements and Projections 11.1.1 Asset valuations The best available estimates of the value of assets included in this Asset Management Plan are shown below. The assets are valued at fair market value at cost to replace service capacity: Replacement Cost (Gross) $451,865,536 Depreciable Amount $451,870,496 Current Replacement Cost59 $139,540,544 Depreciation $13,566,328 11.1.2 Sustainability of service delivery There are two key indicators of sustainable service delivery that are considered in the Asset Management Plan for this service area. The two indicators are the:  asset renewal funding ratio (proposed renewal budget for the next 10 years / forecast renewal costs for next 10 years), and  medium term forecast costs/proposed budget (over 10 years of the planning period). 59 Also reported as Written Down Value, Carrying or Net Book Value. 212 11.1.3 Asset Renewal Funding Ratio60 83.85% The Asset Renewal Funding Ratio is an important indicator and illustrates that over the next 10 years we expect to have 83.85% of the funds required for the optimal renewal of assets. The forecast renewal work along with the proposed renewal budget, and the cumulative shortfall, is illustrated in the following image and in Appendix D. Funding Shortfall by Asset Class 11.1.4 Medium term – 10-year financial planning period This Asset Management Plan identifies the forecast operations, maintenance and renewal costs required to provide an agreed level of service to the community over a 10-year period. This provides input into 10 year financial and funding plans aimed at providing the required services in a sustainable manner. This forecast work can be compared to the proposed budget over the 10-year period to identify any funding shortfall. The forecast operations, maintenance and renewal costs over the 10-year planning period is $18,801,364 on average per year. The proposed (budget) operations, maintenance and renewal funding is $18,092,956 on average per year giving a 10-year funding shortfall or funding excess of $-708,408 per year. This indicates that 96.23% of the forecast costs needed to provide the services documented in this Asset Management Plan are accommodated in the proposed budget. This excludes acquired assets. Providing sustainable services from infrastructure requires the management of service levels, risks, forecast outlays and financing to achieve a financial indicator of approximately 1.0 for the first years of the Asset Management Plan and ideally over the 10-year life of the Long-Term Financial Plan. 11.1.5 Forecast Costs (outlays) for the long-term financial plan Table 7.1.3 shows the forecast costs (outlays) for the 10-year long-term financial plan. Forecast costs are shown in 2024-dollar values. 60 AIFMM, 2015, Version 1.0, Financial Sustainability Indicator 3, Sec 2.6, p 9. Asset Class Annual Req't Annual Budget Difference Road Network 5,127,067$ 5,125,495$ -$ 1,572 Bridges & Culverts 1,520,815$ 1,631,940$ $ 111,125 Stormwater 749,032$ 857,363$ $ 108,331 Facilities 9,058,605$ 5,051,103$ -$ 4,007,502 Fleet & Fleet Eq.2,451,128$ 2,563,678$ $ 112,550 Machinery & Eq 256,994$ 258,567$ $ 1,573 Land Improvements 1,805,074$ 1,263,726$ -$ 541,348 Tech & Commun 1,264,656$ 1,259,294$ -$ 5,362 22,233,371$ 18,011,166$ 4,222,205-$ 213 Table 11.1.3: Forecast Costs (Outlays) for the Long-Term Financial Plan 11.2 Funding Strategy The proposed funding for assets is outlined in the Entity’s budget and Long-Term financial plan. The financial strategy of the entity determines how funding will be provided, whereas the Asset Management Plan communicates how and when this will be spent, along with the service and risk consequences of various service alternatives. Reinvestment Rate As assets age and deteriorate, they require additional investment to maintain a state of good repair. The reinvestment of capital funds, through asset renewal or replacement, is necessary to sustain an adequate level of service. The reinvestment rate is a measurement of available or required funding relative to the total replacement cost. By comparing the actual vs. target reinvestment rate the Town can determine the extent of any existing funding gap. The reinvestment rate is calculated as follows: 𝑇𝑎𝑟𝑔𝑒𝑡 𝑅𝑒𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒=𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑚𝑒𝑛𝑡 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 𝐴𝑐𝑡𝑢𝑎𝑙 𝑅𝑒𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒=𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐹𝑢𝑛𝑑𝑖𝑛𝑔 𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑝𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 2025 $ 220,000 $ 7,575,949 $ 2,423,498 $ 10,587,127 $ - 2026 $ 11,522,700 $ 7,511,076 $ 2,425,478 $ 3,115,817 $ - 2027 $ 4,576,248 $ 7,834,139 $ 2,501,808 $ 9,647,737 $ - 2028 $ 847,812 $ 7,973,644 $ 2,577,873 $ 9,419,596 $ - 2029 $ 826,376 $ 8,128,204 $ 2,607,623 $ 8,930,912 $ - 2030 $ 14,905,232 $ 8,090,809 $ 2,625,714 $ 8,727,780 $ - 2031 $ 590,000 $ 8,496,806 $ 2,733,082 $ 7,872,882 $ - 2032 $ 7,774,730 $ 8,476,362 $ 2,751,634 $ 6,851,689 $ - 2033 $ 2,924,100 $ 8,712,129 $ 2,800,009 $ 6,525,551 $ - 2034 $ 29,188,128 $ 8,818,098 $ 2,887,765 $ 8,382,844 $ - $ 73,375,326 $ 81,617,216 $ 26,334,484 $ 80,061,935 $ - Year Forecast Acquisition Forecast Operation Forecast Maintenance Forecast Renewal Forecast Disposal 214 The 2024 AMP annual funding gap was $5,682,000. This 2025 AMP indicates a contribution shortfall of $4,222,205, which would require an 18.9% tax levy increase (based on 2025 levy) to address in one year or 1% per year for 17 years. 11.3 Use of Debt Debt can be strategically utilized as a funding source within the long-term financial plan, which can work in conjunction with the annual 1% dedicated capital levy to shorten the 17 year timeframe in which to close the annual contribution funding gap. The benefits of leveraging debt for infrastructure planning include:  the ability to stabilize tax & user rates when dealing with variable and sometimes uncontrollable factors  equitable distribution of the cost/benefits of infrastructure over its useful life  a secure source of funding (up to certain limits)  flexibility in cash flow management Debt management policies and procedures with limitations and monitoring practices should be considered when reviewing debt as a funding option. To this effort, staff plan to develop a Capital Financing Policy to provide criteria to guide the decisions of when debt should be issued for capital assets. Such criteria should evaluate trending economic conditions, as in efforts to mitigate increasing commodity prices and inflation, interest rates have been rising. Sustainable funding models that include debt need to incorporate the now current realized risk of rising interest rates. The following graph shows the historical changes to the lending rates: A change in 15-year rates from 5% to 7% would change the premium from 45% to 65%. Such a change would have a significant impact on a financial plan. Portfolio Overview 2025 Total Replacement Cost 451,865,547$ Annual Contribution - Req'd 22,233,371$ Target Reinvestment Rate 4.92% Annual Contribution - Actual 18,011,166$ Actual Reinvestment Rate 3.99% 0.00% 5.00% 10.00% 15.00% Historical Prime Business Interest Rate 215 For reference purposes, to illustrate the premium paid on a project if financed by debt, a $1 million project financed at 3.0%61 over 15 years would result in a 26% premium or $260,000 of increased costs due to interest payments. For simplicity, the calculation does not consider the time value of money or the effect of inflation on delayed projects. The Town of Tillsonburg has employed the use of debt as one component of its asset management funding approach. However, the Town should change its strategy by using debt more strategically, through defined criteria laid out in a Capital Financing Policy. Effectively and sustainably leveraging debt can significantly contribute to reducing the infrastructure deficit, potentially accelerating the timeline compared to relying solely on tax or rate levies alone. Therefore, the Town should continue to incorporate debt in its asset management funding strategy. There is currently $11,244,725 of debt outstanding for the assets covered by this AMP with corresponding principal and interest payments of $1.65M. While this is well within the provincially prescribed maximum of $5.2M (2025 Annual Repayment Limit), the Town has also approved an additional $15M of debt for the expansion of the Industrial Park, expansion of recreational areas, and replacement of a bridge. Additionally, the 10-year capital plan includes forecasts for new facilities construction where choices will need to be made to prioritize the projects and stay within the provincial limit for debt financing. Therefore, a capital financing policy to guide the decisions of when debt should be utilized will be of utmost importance. 11.4 Valuation Forecasts Asset values are forecast to increase as additional assets are added into service. Additional assets will generally add to the operations and maintenance needs in the longer term. Additional assets will also require additional costs due to future renewals. Any additional assets will also add to future depreciation forecasts. Replacement values for construction related assets are being valued through an annual index that has changed to the Statistics Canada Non-residential Building Construction Price Index for London, Ontario [closest CMA to Tillsonburg], such index being available from 2023 onwards. This is the same index as allowed under the Development Charges (DC) Act for DC rates. 11.5 Key Assumptions Made in Financial Forecasts In compiling this Asset Management Plan, it was necessary to make some assumptions. This section details the key assumptions made in the development of this AM plan and should provide readers with an understanding of the level of confidence in the data behind the financial forecasts. Key assumptions made in this Asset Management Plan are:  Development Charges (DC) funding of $37M over the 10-yr period o Recognition of DC funding as a source of revenue in this plan is different than the 2024 AMP. Changes made to the DC Act in 2024 now require municipalities to earmark a minimum of 60% of DC Reserves related to Services to Highways to specific capital growth projects identified within the 10-year plan. o Should development not occur as forecasted, and thus resulting in lower DC revenues, it is assumed that the expenditures requiring such DCs would also not be required 61 Current municipal Infrastructure Ontario rates for 15-year money is 4.26% on a Serial Debenture. 216  The use of debt is a strategic financing tool, which has not been factored in as a source of revenue, due to its legislative threshold limit and non-recurring nature (i.e. once a debenture is locked in for a finite period, it cannot be paid down faster and not available until paid down). But debt will be required in order to meet the 10-year capital forecast requirements.  Council passed a resolution providing for a 3% dedicated capital levy for the years 2023, 2024 and 2025, with a 1% dedicated capital levy each year thereafter. This plan is predicated on the assumption that Council will maintain the 1% capital levy annual target. 11.6 Forecast Reliability and Confidence The forecast costs, proposed budgets, and valuation projections in this AM Plan are based on the best available data. For effective asset and financial management, it is critical that the information is current and accurate. Data confidence is classified on a A - E level scale62 in accordance with Table 11.5. Table 11.5: Data Confidence Grading System Confidence Grade Description A. Highly reliable Data based on sound records, procedures, investigations and analysis, documented properly and agreed as the best method of assessment. Dataset is complete and estimated to be accurate ± 2% B. Reliable Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10% C. Uncertain Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ± 25% D. Very Uncertain Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be fully complete, and most data is estimated or extrapolated. Accuracy ± 40% E. Unknown None or very little data held. The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 11.5.1. Table 11.5.1: Data Confidence Assessment for Data used in AM Plan Data Confidence Assessment Comment Demand drivers B Data is based on 2021 Census, plus development data from approved Plans of Subdivision with forecasted figures from one-on-one conversations with each developer in the Community on their development targets. 62 IPWEA, 2015, IIMM, Table 2.4.6, p 2|71. 217 Data Confidence Assessment Comment Growth projections B Projections are based on current Development Charges background study population and institutional growth projections, by Watson and Associates Economists Ltd. Acquisition forecast D The assumption of assets through transferance of subdivisions to the Town is an estimate based on professional judgement and amount of development securities on deposit. Operation forecast B The Town has a 5-yr Operating budget with forecasts for Operations activities on its Roads network. Maintenance forecast C Data in asset register requires validation, based on professional judgement. Renewal forecast B The asset values require validation, but the 10-year Renewal program is solely based on replacement costs of said assets. The actual costs incurred will be utilized to update the asset values. - Asset values - Asset useful lives C The asset useful lives require validation. The actual costs incurred for the 10-year Renewal program, plus higher frequency of road condition assessments, will be utilized to update the asset values. - Condition modelling C The last condition assessment study was undertaken in 2020. Increased frequency of such assessments will improve the status of infrastructure reporting and adjustment to lifecycle costing. Disposal forecast B As roads are renewed, not disposed, amortization expense provides an age-based forecast of deemed disposition. The estimated confidence level for and reliability of data used in this AM Plan ranges from low to medium-high between the asset classes. Thus, the overall confidence is considered to be low. 218 12.0 PLAN IMPROVEMENT AND MONITORING 12.1 Status of Asset Management Practices 12.1.1 Accounting and financial data sources This Asset Management Plan utilizes accounting and financial data. The source of the data:  Dynamics GP ERP Financial System  PSD Citywide FMW Budgeting System 12.1.2 Asset management data sources This Asset Management Plan also utilizes asset management data. The source of the data is  PSD Citywide Asset Manager [Asset Inventory Register]  MESH Work Order Management [Asset Maintenance]  ESRI GIS System [GIS System] 12.2 Improvement Plan It is important that an entity recognise areas of their Asset Management Plan and planning process that require future improvements to ensure effective asset management and informed decision making. The improvement plan generated from this Asset Management Plan is shown in Table 12.2. Table 8.2: Improvement Plan Task Task Responsibility Resources Required Timeline 1 Increase the frequency of condition assessments to monitor expected deterioration of asset condition due to deferred maintenance. Asset Managers $, staff time, consultants, <3-5 yrs 2 Improve accuracy of a consolidated, integrated, up-to-date asset register with appropriate data structure components to ensure security and data integrity and improve confidence in the data. Asset Managers Staff time <2 yrs 3 Define roles and expectations for Asset Managers and embed asset management responsibilities in job descriptions. Director of Finance, HR Manager Staff time <1 yr 4 Determine more accurate current and proposed levels of service and related costs. Asset Managers, AM Coordinator Staff time, Consultant 3 yrs 5 Define and document internal procedures for tracking all lifecycle events from the field and recording of such event data in AM system. Asset Management Coordinator Staff time 2 yr 6 Adopt policies to support an AM framework. Director of Finance Staff time 1 yr 7 Measure resilience in service delivery, to understand capacity to ‘withstand a given level of stress or demand’, and to respond to possible disruptions and ensure continuity of service. Asset Managers of Linear Infrastructure and Facilities $, staff time, consulting engineer 3 yrs 219 Task Task Responsibility Resources Required Timeline 8 Align AM data structure, policies and processes with financial systems, LTFP and capital and operating budgets. Director of Finance, AM Coordinator Staff time 2-3 yrs 9 Develop a communications program to engage citizens on the state of infrastructure, risks, expected levels of service, and long-term sustainability requirements. Communications Officer, AM Coordinator, Director of Finance, Director of Operations & Development, Staff time 2 yrs 10 Provide AM training for Asset Managers, Senior Management, Council members – enhance understanding of AM framework, and improve next iterations of AM Plans Asset Managers, Directors, CAO, Council members $, Staff/Council time 2-3 yrs 12.3 Monitoring and Review Procedures This Asset Management Plan will be reviewed during the annual budget planning process and revised to show any material changes in service levels, risks, forecast costs and proposed budgets as a result of budget decisions. The AM Plan will be reviewed and updated annually to ensure it represents the current service level, asset values, forecast operations, maintenance, renewals, upgrade/new and asset disposal costs and proposed budgets. These forecast costs and proposed budget are incorporated into the Long-Term Financial Plan or will be incorporated into the Long-Term Financial Plan once completed. Given the low to medium confidence level in the data, and the identified need to restructure the asset classifications and verify the accuracy of the data, this AM Plan has a maximum life of 2 years and is due for complete revision and updating within 3 years, and then once per term of Council. 12.4 Performance Measures The effectiveness of this Asset Management Plan can be measured in the following ways:  The degree to which the required forecast costs identified in this Asset Management Plan are incorporated into the long-term financial plan,  The degree to which the 1–5-year detailed works programs, budgets, business plans and corporate structures take into account the ‘global’ works program trends provided by the Asset Management Plan,  The degree to which the existing and projected service levels and service consequences, risks and residual risks are incorporated into the Strategic Plan and associated plans,  The Asset Renewal Funding Ratio achieving the Organizational target (this target is often 1.0). 220 13.0 REFERENCES  IPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public Works Engineering Australasia, Sydney, www.ipwea.org/IIMM  IPWEA, 2008, ‘NAMS.PLUS Asset Management’, Institute of Public Works Engineering Australasia, Sydney, www.ipwea.org/namsplus.  IPWEA, 2015, 2nd edn., ‘Australian Infrastructure Financial Management Manual’, Institute of Public Works Engineering Australasia, Sydney, www.ipwea.org/AIFMM.  IPWEA, 2015, 3rd edn., ‘International Infrastructure Management Manual’, Institute of Public Works Engineering Australasia, Sydney, www.ipwea.org/IIMM  IPWEA, 2012 LTFP Practice Note 6 PN Long-Term Financial Plan, Institute of Public Works Engineering Australasia, Sydney  ISO, 2018, ISO 31000:2018, Risk management – Guidelines  ‘Strategic Plan 2021 – 2031’,  ‘Annual Plan and Budget’. 221 14.0 APPENDICES Appendix A Acquisition Forecast A.1 – Acquisition Forecast Assumptions and Source The acquisition forecast reflects both constructed and contributed assets anticipated over the 10-year planning period. Constructed assets represent infrastructure investments required to meet projected growth and service demands. These projects are partially funded through development charges, with any unfunded portion requiring support from reserves or the tax levy. It is important to recognize that if projected growth does not materialize, the associated development charge revenues will not be realized. As a result, some planned projects may be deferred or not proceed at all. Contributed assets are estimated based on assumptions provided by the Engineering Department regarding the timing, cost, and quantity of infrastructure expected to be transferred to the municipality through subdivision development. These forecasts are informed by internal staff expertise and are subject to change based on actual development activity. Table A1 - Acquisition Forecast Summary A.2 – Acquisition Project Summary The project titles/assets included in the lifecycle forecast are included below. Constructed Acquisitions Contributed Acquisitions (Assumed Road Network & Stormwater Assets from Subdivision Development) Town Hall Project Northcrest Estates Additional Columbarium Rolling Meadows Fire Station Reno & Expansion Westwinds Public Works Yard Oak Park Estates Year Constructed Contributed Growth 2025 $ 220,000 $ - $ - 2026 $ 11,522,700 $ 39,104 $ - 2027 $ 4,576,248 $ 8,126,489 $ - 2028 $ 847,812 $ 5,744,881 $ - 2029 $ 826,376 $ - $ - 2030 $ 14,905,232 $ - $ - 2031 $ 590,000 $ 3,678,454 $ - 2032 $ 7,774,730 $ - $ - 2033 $ 2,924,100 $ 1,566,713 $ - 2034 $ 29,188,128 $ 5,617,718 $ - $ 73,375,326 $ 24,773,359 $ - 222 Constructed Acquisitions Contributed Acquisitions (Assumed Road Network & Stormwater Assets from Subdivision Development) Gymnasium & Multi-Use Space Harvest Heights Thid Ice Pad The Bridges Estates Victoria Woods/Rolling Meadows Playground Equipment Potters Gate Additional Pickleball Courts Picinic Pavillion New Trail Development Sports Fields/Courts Lighting Parking Lot Paving Additional Splash Pad Additional Fleet – Fire ATV, Trailer, Lawn Tractor, Mini Ex, Sidewalk Machine, Fire Rescue Unit, Snowplow, Backhoe, Loader, Ice resurfacer, Pick-up Truck Additional Computer Hardware/Workstations Sidewalk Connectivity 223 Appendix B Operation Forecast B.1 – Operation Forecast Assumptions and Source The operations forecast assumes that the existing annual budget provides adequate funding to carry out all required operational tasks needed to sustain current service levels across all asset classes. Additional funding has been included in the operations forecast to reflect increased demands from newly acquired assets due to growth. A percentage increase, varying by asset class, has been applied to account for the added operational needs of the new assets to maintain current service levels. B.2 – Operation Forecast Summary Table B2 - Operation Forecast Summary Year Operation Forecast Additional Operation Forecast Total Operation Forecast 2025 $ 7,575,949 $ 5,127 $ 7,575,949 2026 $ 7,505,949 $ 253,063 $ 7,511,076 2027 $ 7,575,949 $ 209,506 $ 7,834,139 2028 $ 7,505,949 $ 84,560 $ 7,973,644 2029 $ 7,575,949 $ 32,605 $ 8,128,204 2030 $ 7,505,949 $ 335,998 $ 8,090,809 2031 $ 7,575,949 $ 49,556 $ 8,496,806 2032 $ 7,505,949 $ 165,767 $ 8,476,362 2033 $ 7,575,949 $ 175,970 $ 8,712,129 2034 $ 7,505,949 $ 175,970 $ 8,818,098 $ 75,409,490 $ 1,488,122 $ 81,617,216 224 Appendix C Maintenance Forecast C.1 – Maintenance Forecast Assumptions and Source The maintenance forecast assumes that the current annual budget is sufficient to support the maintenance activities required to uphold existing service levels across all asset classes. To account for growth-related asset acquisitions, additional funding has been incorporated into the forecast. Percentage increases, varying by asset class, have been applied to reflect the added maintenance needs of new assets, ensuring service levels are maintained as the asset base expands. C.2 – Maintenance Forecast Summary Table C2 - Maintenance Forecast Summary Year Maintenance Forecast Additional Maintenance Forecast Total Maintenance Forecast 2025 $ 2,423,498 $ 1,980 $ 2,423,498 2026 $ 2,423,498 $ 76,329 $ 2,425,478 2027 $ 2,423,498 $ 76,066 $ 2,501,808 2028 $ 2,423,498 $ 29,749 $ 2,577,873 2029 $ 2,423,498 $ 18,091 $ 2,607,623 2030 $ 2,423,498 $ 107,368 $ 2,625,714 2031 $ 2,423,498 $ 18,552 $ 2,733,082 2032 $ 2,423,498 $ 48,375 $ 2,751,634 2033 $ 2,423,498 $ 87,756 $ 2,800,009 2034 $ 2,423,498 $ 87,756 $ 2,887,765 $ 24,234,980 $ 552,022 $ 26,334,484 225 Appendix D Renewal Forecast Summary D.1 – Renewal Forecast Assumptions and Source The renewal forecast is based on the 10-year capital budget for all asset classes. Table D1 - Renewal Forecast Summary D.2 – Renewal Project Summary The project titles included in the lifecycle forecast are included here. Renewal Projects Cranberry Line Reconstruction Simcoe St. Bridge Outdoor Structure Renewals Charlotte & Clarence Construction Lisgar Ave. Culvert Outlet at Brock St. E Sports Fields Renewals Woodcock & Pheasant Construction Lake Lisgar Outlet Culvert Parks – Site Amenities Fox Alley Reconstruction Baldwin St. Culvert at Participark Parking Lots, Trails & Pathways Ball St. Reconstruction Victoria St. Driveway Access Culvert Parks Landscaping Thomas Ave. Reconstruction Newell Rd. Culvert Cemetery Renewals Coon Alley Reconstruction Baldwin St. Culvert at Whispering Pine Trails Signage Brock St. Reconstruction Broadway & Christie St. Culvert Memorial Pavilion Replacement Year Renewal Forecast Renewal Budget 2025 $ 10,587,127 $ 12,754,984 2026 $ 3,115,817 $ 5,418,634 2027 $ 9,647,737 $ 6,423,436 2028 $ 9,419,596 $ 6,942,801 2029 $ 8,930,912 $ 7,527,229 2030 $ 8,727,780 $ 7,820,578 2031 $ 7,872,882 $ 8,123,923 2032 $ 6,851,689 $ 8,437,614 2033 $ 6,525,551 $ 8,752,879 2034 $ 8,382,844 $ 9,083,009 80,061,935$ 81,285,087$ 226 Renewal Projects Alley Alley Reconstruction Lisgar Ave. North Culvert Flagpole Replacements Earl St. Reconstruction Newell Rd. Retaining Walls Ice Resurfacer Replacement Fairfield St. Reconstruction Broadway St. at Bloomer Retaining Wall Snowplow Replacement Hyman St. Reconstruction Quarter Town Line Retaining Wall Hydro Derrick Truck Replacement Bloomer St. Reconstruction SWM Pond Maintenance (2) Sidewalk Machine Replacements Harvey St. Reconstruction Facilities - Substructure Projects Sweeper Replacement Asphalt Maintenance Program Facilities - Shell Projects (4) Service Truck Replacements Streetlight Renewal Program Facilities - Interior Projects Fire Pumper Tanker Replacement Traffic Light Renewal Facilities - Services Projects Tractor Replacement Kinsmen Pedestrian Bridge Replacement Facilities - Equipment & Furnishings Fire Dispatch/Communication Equipment Replacements Hawkins Pedestrian Bridge Renewal Facilities - Special Construction and Demolition Computer Hardware Replacements Concession St. W Bridge Facilities - Building Sitework Cell Phone Replacements Server Node Replacements Network Equipment Replacements Health Club Equipment Replacements Generator Replacement Small Equipment Replacements 227 Appendix E Disposal Summary E.1 – Disposal Forecast Assumptions and Source There are currently no assets identified for disposal that are associated with any Asset Retirement Obligations (AROs) within the 10-year planning period. Since most assets are renewed rather than disposed of, any associated disposal costs are typically embedded within the renewal forecasts. For assets sold through approved auctions, disposal costs are transferred to the purchaser. E.2 – Disposal Project Summary The project titles included in the lifecycle forecast are included here.  Elliot Fairbairn School – Current Leased OPP Training Centre, no value determined Table E2 – Disposal Activity Summary Year Disposal Forecast Disposal Budget 2025 0 2026 0 2027 0 2028 0 2029 0 2030 0 2031 0 2032 0 2033 0 2034 0 . 228 Appendix F Budget Summary by Lifecycle Activity F.1 – Lifecycle Activity Forecast Assumptions and Source The current 10-year capital plan was used to determine the acquisition and renewal projects and estimates. Operations and maintenance budgets were taken from the current operating budget. Acquisitions from growth are based on demand estimates and assumptions. Table F1 – Budget Summary by Lifecycle Activity Year Acquisition Operation Maintenance Renewal Disposal Total 2025 $ 154,400 $ 7,575,949 $ 2,423,498 $ 12,754,984 $ 22,908,832 2026 $ 5,910,104 $ 7,505,949 $ 2,423,498 $ 5,418,634 $ 21,258,184 2027 $ 2,450,285 $ 7,575,949 $ 2,423,498 $ 6,423,436 $ 18,873,168 2028 $ 681,812 $ 7,505,949 $ 2,423,498 $ 6,942,801 $ 17,554,060 2029 $ 511,058 $ 7,575,949 $ 2,423,498 $ 7,527,229 $ 18,037,734 2030 $ 2,760,807 $ 7,505,949 $ 2,423,498 $ 7,820,578 $ 20,510,832 2031 $ 124,000 $ 7,575,949 $ 2,423,498 $ 8,123,923 $ 18,247,370 2032 $ 5,627,043 $ 7,505,949 $ 2,423,498 $ 8,437,614 $ 23,994,104 2033 $ 1,580,578 $ 7,575,949 $ 2,423,498 $ 8,752,879 $ 20,332,904 2034 $ 18,437,272 $ 7,505,949 $ 2,423,498 $ 9,083,009 $ 37,449,728 38,237,359$ 75,409,490$ 24,234,980$ 81,285,087$ -$ 219,166,916$