Asset Replacement Plan Town of Bradford West Gwillimbury

Transcription

1 Asset Replacement Plan Town of Bradford West Gwillimbury February Allstate Parkway, Suite 310, Markham, Ontario L3R 9T8 (Tel) (Fax)

2 Town of Bradford West Gwillimbury Asset Replacement Plan February 2012

3 Table of Contents 1. Introduction Purpose of this Asset Replacement Plan Content of this Asset Management Replacement Plan What is Asset Management? Relationship to Other Town Documents/Outputs Meeting Sustainability Challenges with Asset Replacement Planning 3 2. Asset Portfolio Overview of the Town of Bradford West Gwillimbury Service Structure Hierarchy of Assets Replacement Cost of Asset Inventory Installation Profile of Assets Lifecycle Analysis Failure Mode Prediction Remaining Life Asset Consumption by Asset Type Long-Term Funding Analysis Overview Sustaining the Existing Asset Portfolio 20 GHD Town of Bradford West Gwillimbury Asset Replacement Plan

4 1. Introduction 1.1 Purpose of this Asset Replacement Plan This Asset Replacement (AR) Plan is intended to improve The Town of Bradford West Gwillimbury s (the Town) ability to meet corporate goals and objectives by identifying the Town s asset portfolio, the lifecycle activities and funding requirements to manage this portfolio. The AR Plan identifies future costs and assists in predicting future funding requirements required to sustain the current asset portfolio. This will create opportunities for the Town s asset managers and operators to remove physical, financial and political barriers before they negatively impact customer levels of service. Note that this is the Town s first AR Plan and only addresses the short and long term financial implications of managing the Town s current asset portfolio using current available information, such as PSAB data and asset age. Development of this AR Plan is an important step to the completion of a full Asset Management Plan which should eventually integrate other important lifecycle components such as condition, risk, levels of service and growth. Therefore this AR Plan will not meet all of the long term goals of a fully developed Asset Management Plan. It is recommended through continual improvement of asset management practices that the Town progress this AR Plan to a full Asset Management Plan over time. 1.2 Content of this Asset Management Replacement Plan The body of the AR Plan details the approach, methodology and discusses results at the Town s service level. Each Appendix describes the specific results for assets within the service areas including Public Works (Appendix A), Water (Appendix B), Wastewater (Appendix C), Leisure (Appendix D), Corporate Services and Land (Appendix E). 1.3 What is Asset Management? Asset management is often defined as a framework a way of thinking that is built around a body of best practices. This way of thinking and the body of best practices focus on seeking the lowest total lifecycle cost of ownership for infrastructure assets while continuously delivering services at a level customers and stakeholders require and are willing to pay for, and at an acceptable level of risk to the community. While asset management is a strategic-level framework that embraces the entire business, it is only truly effective when practiced down at the asset level that is, when new capital investment (renewal or augmentation) is truly the right solution, for the right reason, at the right time, and when maintenance investment is truly cost-effective in extending asset life, sustaining performance, and enhancing reliability. The International Infrastructure Management Manual, 2011 Version, describes the key elements of asset management as the following, this AR Plan addresses this final element only: 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 that defined level service Identifying, assessing and appropriately controlled risks, Having a long term financial plan which identified required expenditure and how it will be funded. GHD Town of Bradford West Gwillimbury Asset Replacement Plan 1

5 1.4 Relationship to Other Town Documents/Outputs The relationship this AR Plan has with other Town Documents and planning outputs is illustrated in the figure below. The AR Plan is the base framework (tool) to assist the Town in developing appropriate direction and inputs to budget forecasts, master plans and associated studies/outputs. Each of the planning documents within the Figure are summarized below, to clarify its link to this AR Plan. A simple decision to adopt lifecycle asset management principles will not automatically ensure that they are introduced effectively. Success in introducing the practices, procedures and systems that support asset management requires that the following issues be addressed from the outset: Fit with corporate need: Asset management needs to tightly link from the highest level strategic planning through to day-to-day operational activities. Commitment at all levels: A commitment from the staff that is going to implement the processes and systems, and strong corporate support for those staff. Clear corporate asset management goals and objectives: Asset management objectives, levels of service, and strategies need to be consistent with the overall direction of the organization, set at a corporate level. Allocation of appropriate resources: The right amounts of resources must be devoted to asset management and channeled on the right things, at the right time. Figure 1-1 AR Plan Relationship to other Documents National Planning Documents Provincial Planning Documents BWG Planning Documents Design Standards Occupational Health & Safety Resource Management National Governance Design Standards Provincial Regulations Provincial Governance Bylaws Regional Policy Regional Plans BWG Asset Replacement Plan Document National Planning Documents Design Standards Occupational Health & Safety Resource Management National Governance Provincial Planning Documents Design Standards Provincial Governance Provincial Regulations BWG Planning Documents Bylaws Regional Policy Regional Plans Summary Canadian Design Codes, Environmental Assessments Act The Canada Labour Code, WHIMIS Regulations, OHS Act Standardized policy implementations, Department of the Environment Act Canadian Environmental Protection Act, Transportation of Dangerous Goods Act Water Governance and Legislation, Canada Foundation for Sustainable Development Public Works Protection Act, Highway Traffic Act, Building Code Act Public Sector Accounting Board, Ontario Clean Water, Environmental Protection Act Occupational Health and Safety Act, Ministry of Environment Legislation Development Charges Act, BWG By-laws, Holland Marsh Canal Improvement Project TCA Policy, BWG Training and Development, Work Order Management Engineering Strategic Plan, Water Dept Financial Plan, BWG AM&IT Strategy, Regional Growth Plans, Master Servicing Study GHD Town of Bradford West Gwillimbury Asset Replacement Plan 2

6 1.5 Meeting Sustainability Challenges with Asset Replacement Planning Sustainability issues present themselves when communities misinterpret their renewal challenges. Often this will result in a need to either cut back in services or reduce the asset base to a size that can be matched with secured revenue. The figure below illustrates how an AR Plan can be used in determining the long term financial plan in the financial sustainability debate. The IIMM lists the following benefits from this approach to categorizing expenditures: Focus capital works program on asset renewal: new assets add to future liabilities for operating and depreciation expenses. Renewals do not add to future liabilities and may reduce operating and maintenance costs. If additional funding is not allowed for expenses associated with new assets, the desired and expected service levels will not be provided by default. Sound economic evaluation process for new assets: councils should critically analyse new capital works proposals, identify what service is required, identify costs and benefits and recurrent funding commitments and provide the service at lowest lifecycle cost. Maintain an appropriate preventative maintenance program and implement planned maintenance strategies: investing in these practices may require more start-up funds but can be rewarded with improved service levels, deferral of asset renewals and lower lifecycle costs. Preparation of AR Plans for all infrastructure assets leading to AM Plans for continuous improvement: an initial AR Plan will document the asset portfolio and provide an initial state of the infrastructure report with projected renewal costs. The initial AR Plan should include all available information with a plan for continuous improvement leading to a fully documented AM Plan. Figure 1-2 Tackling Financial Sustainability using AR Plans and AM Plans (IIMM, 2011) GHD Town of Bradford West Gwillimbury Asset Replacement Plan 3

7 2. Asset Portfolio 2.1 Overview of the Town of Bradford West Gwillimbury Service Structure The Town of Bradford West Gwillimbury is responsible for a broad portfolio of assets that support goals of service delivery. To establish base asset knowledge, the Town has determined a clear hierarchical structure that logically breaks down services to network types and then to assets and their components. 2.2 Hierarchy of Assets Asset information is needed to support decision-making. An asset hierarchy provides the framework for segmenting the Town asset portfolio into appropriate classifications with appropriate linkages between like assets. The asset hierarchy is illustrated in this AR Plan as a parent child type relationship, to 3 levels (service, level 1, level 2). Note the hierarchy presented below is a summary only. The asset hierarchy is illustrated in more detail (level 2) for each asset type in Appendices A to E, Sections 2. The asset hierarchy for Public Works, Water, Wastewater, Leisure, Corporate IT, Corporate Fleet and Land assets is detailed in Table 2.1. Over 11,000 assets are included in the asset register against the asset hierarchy. Table 2-1 Asset Hierarchy Public Works, Water, Wastewater, Leisure, Corporate IT, Corporate Fleet and Land Service Area Level 1 Public Works Urban - Roads Rural Roads Gravel - Roads Roundabouts Curb & Gutter Sidewalk Bridge & Major Culvert Retaining Wall Guardrails Sound Barriers Traffic Control Devices Illumination Storm Drainage Parking Lot Sound Barriers Fleet Water Wells Underground Reservoir Water Tower Booster Station Water Transportation and Distribution GHD Town of Bradford West Gwillimbury Asset Replacement Plan 4

8 Supporting IT Systems Fleet Waste Water Conveyance Sewage Pump Station Water Pollution Control Plant Supporting IT Systems Fleet Leisure Municipal Facility Park Cemetery Fleet Corporate Facilities Administration Fire & Emergency Services Police Corporate IT Administration Fire & Emergency Services Police Corporate Fleet Administration Fire & Emergency Services Police Land Cemetery Municipal Park Parking Lot Land Under Road 2.3 Replacement Cost of Asset Inventory To focus needs for investments, it is helpful to understand the number of assets and replacement value of assets against the hierarchy. The following figures illustrate the replacement value of the Town s asset portfolio at both a corporate level and an asset service level or Public Works, Water, Wastewater, Leisure, Corporate IT, Corporate Fleet and Land assets. Replacement costs included in these figures are based on Public Sector Accounting Board (PSAB) data. These costs have been inflated to 2012 dollars by applying appropriate CPI indices. These graphs illustrate the value of the Town s asset portfolio is dominated by Public Works, Water and Wastewater assets. Of these assets, roads (surface pavement and base structures), storm drainage, linear water transportation and distribution assets, wastewater facilities, wastewater linear and corporate facilities have the highest replacement cost value. GHD Town of Bradford West Gwillimbury Asset Replacement Plan 5

9 Figure 2-2 Total Asset Portfolio Replacement Cost, 2012$ Figure 2-3 Public Works, Water, Wastewater Level 1 Asset Portfolio Replacement Cost, 2012$ GHD Town of Bradford West Gwillimbury Asset Replacement Plan 6

10 Figure 2-4 Leisure, Corporate IT, Corporate Facilities, Corporate Fleet, Land Level 1 Asset Portfolio Replacement Cost, 2012$ Figure 2-5 Public Works Level 2 Asset Portfolio Replacement Cost, 2012$ GHD Town of Bradford West Gwillimbury Asset Replacement Plan 7

11 Figure 2-6 Water Level 2 Asset Portfolio Replacement Cost, 2012$ Figure 2-7 Wastewater Level 2 Asset Portfolio Replacement Cost, 2012$ GHD Town of Bradford West Gwillimbury Asset Replacement Plan 8

12 Figure 2-8 Leisure Level 2 Asset Portfolio Replacement Cost, 2012$ Figure 2-9 Corporate IT Level 2 Asset Portfolio Replacement Cost, 2012$ GHD Town of Bradford West Gwillimbury Asset Replacement Plan 9

13 Figure 2-10 Corporate Facilities Level 2 Asset Portfolio Replacement Cost, 2012$ GHD Town of Bradford West Gwillimbury Asset Replacement Plan 10

14 Figure 2-11 Corporate Fleet Level 2 Asset Portfolio Replacement Cost, 2012$ Figure 2-12 Land Level 2 Asset Portfolio, 2012$ 2.4 Installation Profile of Assets To assist the Town with future funding needs analysis, it is helpful to understand the installation profile of the asset profile portfolio. The following graphs show the replacement value of the assets by year of installation. The story these graphs tell is that the majority of Town assets were installed recently with an earlier period of growth around Within this time frame, the graphs represent three main periods of growth where a significant quantity of assets were installed. The first being mid to late 1970 s, the second in the mid to late 1990 s, and the third being from 2005 to present. GHD Town of Bradford West Gwillimbury Asset Replacement Plan 11

15 Figure 2-13 Asset Installation Profile Total $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000, Figure 2-14 Asset Installation Profile Public Works $12,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000, Figure 2-15 Asset Installation Profile Water GHD Town of Bradford West Gwillimbury Asset Replacement Plan 12

16 Figure 2-16 Asset Installation Profile Wastewater $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000, Figure 2-17 Asset Installation Profile Leisure $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000, Figure 2-18 Asset Installation Profile Corporate IT $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50, GHD Town of Bradford West Gwillimbury Asset Replacement Plan 13

17 Figure 2-19 Asset Installation Profile Corporate Facilities $14,000,000 $12,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000, Figure 2-20 Asset Installation Profile Corporate Fleet $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100, Figure 2-21 Asset Acquisition Profile Land $16,000,000 $14,000,000 $12,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000, GHD Town of Bradford West Gwillimbury Asset Replacement Plan 14

18 3. Lifecycle Analysis 3.1 Failure Mode Prediction Discussion on the failure mode prediction for each service area is included in Section 3 of the respective appendices. For the vast majority of assets included in this AR Plan however, the failure mode utilized in lifecycle analysis processes is Physical Mortality only that is asset age based on PSAB data. This is due to limited information being available on asset condition, capacity, levels of service and financial efficiency. Where condition data is available in the future, it should be used to determine remaining life. However, for all remaining assets, remaining life based on the physical mortality failure mode is calculated from Maximum Potential Life (MPL) and install date. As the Town begins to capture more data on its asset portfolio, this data can be used to predict failure modes around other criteria such as capacity, levels of service and efficiency in future AM Plans. 3.2 Remaining Life The condition and performance of an infrastructure asset does not typically deteriorate in direct relationship with its age, but varies with the: Construction techniques, materials, etc. Operating environment Use to which the asset has been subjected Maintenance applied to the asset. For maintenance and renewal planning of a new asset, initial assumptions must be made about the asset s effective life. As an asset progresses through its lifecycle, these assumptions should be revised through condition monitoring and assessment. The condition assessment of the asset is used, in conjunction with the decay curve, to predict the remaining life of the asset. This can be shown in an asset deterioration model or decay profile, for any particular asset type, as shown Figure 3-1 below. Figure 3-1 Decay Profile In the majority of cases, long-life passive assets will have a deterioration that starts slowly, and then accelerates over time (i.e. the gradient of the line will become steeper the older the asset becomes). GHD Town of Bradford West Gwillimbury Asset Replacement Plan 15

19 To properly address the true deterioration of assets, a software system that records and predicts the actual condition of an asset over time is required, where the user can define or develop the shape of the deterioration curve. As more information about the asset is obtained, the curve's shape is then matched to the actual decay of the asset. In the interim however, organizations mathematically mimic condition-based asset depreciation in a relatively quick and simple way by correlating sufficient condition measurements of a particular asset class with the year installed or purchased and the effective (design) life of assets to generate condition based curves. The equation: 1- (Life to Date/Effective Life) ^n will produce a depreciation curve that bows outwards and hence increases depreciation over time, when n > 1. Increasing n will produce a parabolic curve of steeper gradient. This method allows an approximation of condition-based depreciation if the true decay of the asset is unknown. With appropriate recording of information over time, the theoretical curves can be tweaked to suit the assets. As can be seen in Figure 3-1, assets with less than half their effective lives consumed will be affected the most by the application of decay curves. That is, a less aggressive consumption value is suggested by the decay curve for younger assets. Decay curves were simulated for the Town s AR Plan using typical values for n, as shown below. However data was not available to validate this. Please see Section 3.3 for asset consumption methodology. Due to the absence of supporting data, the results could not be substantiated. Consumption graphs are therefore built using straight line depreciation in this AR Plan, as is illustrated in Figure 3.1 and detailed Section 3.3. GHD suggests that the Town explore asset-specific decay curves validated by empirical data collected by the Town. As an example, pavement condition data (indicated by the Town as identified for collection in the near future), will provide a Town-specific means to determine the percentage of an asset s lifecycle that has been consumed. Sufficient data points can then be used to create an intervention condition for treatment that begins from specifying a starting condition (the asset s condition today) rather than a start year. Typical values for n are shown below: Major passive civil assets, n = 4 Architectural passive assets, n = 3 Mechanical and electrical assets, n = Asset Consumption by Asset Type Based on the failure modes and remaining life predictions described above, the consumption of each asset in the hierarchy has been calculated using straight line depreciation. Figures 3-2 to 3-9 illustrate where the Town s assets are within their lifecycle and how much they have been consumed based on the percentage of maximum potential life consumed, without applying the above asset decay curves (asset consumption graphs). These figures illustrate the total Town asset portfolio as well as a summary of assets specific to Public Works, Water, Wastewater, Leisure, Corporate IT, Corporate Facilities and Corporate Fleet. Consumption values are not calculated for land titles. The asset consumption graphs illustrate the value of assets that are new (0% consumed) through to assets that have reached their maximum potential life (100% consumed). These graphs provide a conservative indication of which assets are at the end or nearing the end of their life and will, therefore, require replacement in the near future. GHD Town of Bradford West Gwillimbury Asset Replacement Plan 16

20 As the failure modes for assets are predominately based on install dates and maximum potential life, the consumption of the assets generally reflect the age of the assets only. As additional data becomes available (such as condition data), consumption will directly reflect the maximum potential life based on factors such as condition, capacity and service levels, as opposed to just age. Figure 3-2 Asset Consumption Total $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% % Consumed Figure 3-3 Asset Consumption Public Works $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% % Consumed GHD Town of Bradford West Gwillimbury Asset Replacement Plan 17

21 Figure 3-4 Asset Consumption Water $14,000,000 $12,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% % Consumed Figure 3-5 Asset Consumption Wastewater $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%100% % Consumed Figure 3-6 Asset Consumption Leisure $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%100% % Consumed GHD Town of Bradford West Gwillimbury Asset Replacement Plan 18

22 Figure 3-7 Asset Consumption Corporate IT $250,000 $200,000 $150,000 $100,000 $50,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% % Consumed Figure 3-8 Asset Consumption Corporate Facilities $14,000,000 $12,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%100% % Consumed Figure 3-9 Asset Consumption Corporate Fleet $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% % Consumed GHD Town of Bradford West Gwillimbury Asset Replacement Plan 19

23 4. Long-Term Funding Analysis 4.1 Overview This section of the AR Plan describes the results of the forecast modelling of lifecycle activities described in the previous section. The results shown are for a 100 year period. The 100 year forecast encompasses the longest projected life of any of the Town s assets, thereby allowing the full lifecycle of the assets to be modelled, which decreases the chance a future event has not been considered. This section forecasts the future investments required to sustain the Town s current asset portfolio. That is, the forecasted renewal capital investment to enable the Town to deliver current levels of service to the community. This funding forecast is then compared to recent capital investments. 4.2 Sustaining the Existing Asset Portfolio Figures 4.1 to 4.8 illustrate the estimated long term investment needs to sustain the Town s existing asset portfolio. That is, the estimated amount of money the Town needs to reinvest in its existing asset portfolio on an annual basis to sustain the current level of service to the Town s citizens. The dollar amounts in these figures are in 2012 dollars. These figures only represent investment needed to replace these assets they do not include the cost to maintain or rehabilitate them throughout their lives. All costs are order of magnitude estimates only and are based on cost data provided by the Town. The figures illustrate the long term funding needs for all Town assets and for each service department including Public Works, Water, Wastewater, Leisure, Corporate IT, Corporate Facilities and Corporate Fleet. The figures indicate that the Town needs to be reinvesting the following amounts on an annual basis to sustain its existing asset portfolio. Note that these annual reinvestment figures include asset replacement investment in 2012 as well as the backlog of investment that has not taken place in the past and is now due. This backlog includes all assets that have surpassed their life expectancies and are completely consumed, as well as those assets that are scheduled for the year. These replacement forecasts will gain further resolution as the Town continues to improve its planning processes and builds on the data and knowledge gained through the first steps of compliance with Public Sector Accounting Board (PSAB) 3150 for Tangible Capital Assets. The figures indicate annual reinvestment needs for its Corporate Services assets to sustain its existing asset portfolio. Total: Public Works: Water: Wastewater: Leisure: Corporate IT: Corporate Facilities: Corporate Fleet: ~ $15.5 million per annum ~ $6.0 million per annum ~ $2.1 million per annum ~ $3.4 million per annum ~ $2.6 million per annum ~.1 million per annum ~.9 million per annum ~.4 million per annum GHD Town of Bradford West Gwillimbury Asset Replacement Plan 20

24 Figure 4-1 Forecast Asset Renewal Investment Total $80,000,000 Replacement Ave Annual Replacement $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000, Figure 4-2 Forecast Asset Renewal Investment Public Works $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000,000 Replacement Ave Annual Replacement Figure 4-3 Forecast Asset Renewal Investment Water Investment, 2011$ $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Replacement Ave Annual Replacement GHD Town of Bradford West Gwillimbury Asset Replacement Plan 21

25 Figure 4-4 Forecast Asset Renewal Investment Wastewater $35,000,000 Replacement Ave Annual Replacement $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000, Figure 4-5 Forecast Asset Renewal Investment Leisure $35,000,000 Replacement Ave Annual Replacement $30,000,000 $25,000,000 $20,000,000 $15,000,000 $5,000, Figure 4-6 Forecast Asset Renewal Investment Corporate IT $350,000 Replacement Ave Annual Replacement $300,000 Investment, 2011$ $250,000 $200,000 $150,000 $100,000 $50, GHD Town of Bradford West Gwillimbury Asset Replacement Plan 22

26 Figure 4-7 Forecast Asset Renewal Investment Corporate Facilities $14,000,000 Replacement Ave Annual Replacement $12,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000, Figure 4-8 Forecast Asset Renewal Investment Corporate Fleet $1,200,000 Replacement Ave Annual Replacement Investment, 2011$ $1,000,000 $800,000 $600,000 $400,000 $200, Table 4-1 is a record of the level of expenditures over the past three years for all services, including reserve commitments. The average annual investment is then compared to the forecasted average annual sustainable renewal amount in Table 4-2. Please see the previous section for details on how this sustainable investment figure was determined. For some services, the rate of replacement is not sustainable. If the current rate of replacement continues, the Town will continue to experience increasing maintenance costs, decreasing levels of service and/or increasing risk costs. For other services, Water and Fleet, investments are in line with GHD s analysis. However, the investment in Public Works is quite larger than the forecasted need, which the Town has described as intentional due to the significant amount of assets in the portfolio requiring rehabilitation. This is typical for most services; there are a significant amount of assets in operation beyond their projected life expectancies. GHD suggests that the Town develop a risk framework to identify critical assets for inclusion in capital programs and document relevant risk management strategies to assist decision-making. GHD Town of Bradford West Gwillimbury Asset Replacement Plan 23

27 Table 4-1 Past Expenditures 2009 Expenditure 2009 Reserve Contribution 2010 Expenditure 2010 Reserve Contribution 2011 Expenditure 2011 Reserve Contribution Public Works $ 4,538,399 $ 14,162,338 $ 5,890,642 Water $ 2,051,129 $ 913,720 $ 1,386,511 $ 844,665 $ 124,213 $ 1,256,436 Wastewater $ 174,518 $ 1,250,346 $ 690,505 $ 1,168,193 $ 661 $ 518,889 Leisure $ 258,840 $ 470,473 $ 439,313 Corporate Facilities $ 466,634 $ 648,522 $ 259,086 Corporate Fleet $ 396,607 $ 188,683 $ 680,223 Corporate IT $ 193,962 $ 100,829 $ 195,635 Total $ 8,080,089 $ 2,164,065 $ 17,647,862 $ 2,012,858 $ 7,589,774 $ 1,775,326 Table 4-2 Historical Average Expenditure Compared to Forecast Average Annual Sustainable Renewal (AASR) Amount Historical Forecast Ave Annual Average Sustainable Renewal Expenditure (AASR) Amount Public Works $ 8,197,127 $ 6,018, % Water $ 2,192,225 $ 2,127, % Wastewater $ 1,267,704 $ 3,358,262 38% Leisure $ 389,542 $ 2,559,630 15% Corporate Facilities $ 458,081 $ 937,756 49% Corporate Fleet $ 421,838 $ 395, % Corporate IT $ 163,476 $ 95, % Total $ 13,089,991 $ 15,491,771 84% GHD Town of Bradford West Gwillimbury Asset Replacement Plan 24

28 GHD Inc. 11 Allstate Parkway, Suite 310 Markham Ontario L3R 9T8 T: F: E: GHD Inc This document is and shall remain the property of GHD Inc. Document Status Rev No. Author Reviewer Approved for Issue Name Signature Name Signature Date 0 M Wright S Page 1 M Wright S Page R. Lutchman GHD Town of Bradford West Gwillimbury Asset Replacement Plan