February 13, 2017 - Special Meeting

SARNIA CITY COUNCIL

February 13, 2017

9:00am

COMMITTEE ROOM #4

SARNIA, ONTARIO

ASSET MANAGEMENT COMMITTEE MEETING

AGENDA

Page

PRESENTATION

2 - 57 1. Corporate Asset Management Planning

Presentation by:

Andre Morin, City Engineer

Lisa Armstrong, Director of Finance

Lydia Fisher, Municipal Engineering Specialist

INFORMATION ITEM

58 - 94 1. Terms of Reference and Methodology for Corporate Asset Management Planning

Page 1 of 94

THE CORPORATION OF THE CITY OF SARNIA

Corporate Asset Management Planning

2017

19/01/2017

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 2 of 94

PRESENTATION OVERVIEW

Key Concepts Review of important concepts from the Corporate Asset Management Planning document.

Case Study A sneak peak of the transit vehicle section from the Draft Transit Asset Management Plan.

Improper Asset Management Discussion of the ramifications of improper asset management.

Proper Asset Management Discussion of the benefits of proper asset management.

Council Involvement Discussion of tasks to be completed by City Council.

Financial Planning Discussion of capital budget allocations and capital budget increases.

Staff Involvement Discussion of tasks to be completed by City staff.

Public Involvement Discussion regarding how to engage the public in asset management discussions.

Timeline Discussion of key asset management milestones.

Corporate Asset Management Planning Document Questions or Comments?

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 3 of 94

KEY CONCEPT

Transit Division All transit assets and facilities.

Engineering Division Core infrastructure assets only.

Public Works Division Assets pertaining to operations and maintenance only.

Corporate Services Division Assets pertaining to properties for sale or lease by the Corporation not including linear assets.

Parks & Recreation Division All Parks & Recreation assets not including equipment or bridges.

Police Division All Police assets and facilities.

Fire & Rescue Division All Fire & Rescue assets and facilities.

Service Buildings Division All properties and assets managed by the City’s Property Department.

Divisions versus Departments Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 4 of 94

KEY CONCEPT

Division Asset Management Plans

Corporate AMP

Transit AMP

Engineering AMP

Public Works AMP

Corporate Services AMP

Parks and Recreation AMP

Police AMP

Fire and Rescue AMP

Service Buildings AMP

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 5 of 94

KEY CONCEPT

For asset management purposes, an asset’s replacement cost is defined as the amount of money required in order to replace the asset with a new asset of the same classification today.

For example, the replacement cost of one of the Corporation’s transit buses is equal to the amount of money it would cost to buy a new transit bus today.

Replacement Cost

https://cptdb.ca/topic/8841-hamilton-street-railway/?page=170

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 6 of 94

KEY CONCEPT

Condition Ratings & Ranges During inspection and condition assessment programs, each municipal asset is assigned a Condition Rating (CR) based on its observed condition and defects.

The CRs of assets are grouped into 1 of 5 condition rating ranges (CR ranges). The CR ranges used in the Corporate AMP are defined as follows:

80 to 100 - Excellent Condition: No defects visible. 60 to 79 - Good Condition: A few minor defects are visible. 40 to 59 - Fair Condition: Many minor defects or a few significant

defects are visible. 20 to 39 - Poor Condition: Many significant defects are visible. 0 to 19 - Very Poor Condition: The asset is no longer functioning as

intended.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 7 of 94

KEY CONCEPT

The Effects of Time on Asset Condition

The condition of all assets deteriorates over time. As the condition of an asset deteriorates, the asset’s Condition Rating (CR) also decreases.

0102030405060708090

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Con

dit

ion

Rat

ing

Time (Years)

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 8 of 94

KEY CONCEPT

Negative Performance Statistics The term Negative Performance Statistics (NPSs) refers to tracked statistics that pertain specifically to the negative performance of an asset. For example, NPSs pertaining to transit vehicles include the following: Number of Repairs - As required for compliance with the

Transportation Safety Standards. Accessibility Standard Level - As required for compliance with

Accessibility for Ontarians with Disabilities Act, 2005, S.O. 2005, c. 11 Number of Customer Complaints - As reported through customer

complaint tracking. Capacity Constraints - As reported in transit studies conducted by the

Corporation. Associated Service Delays - As reported in transit studies conducted

by the Corporation. Availability of Parts - As reported in repair time records. Emissions Testing Results - As required by the Ontario Drive Clean

Program.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 9 of 94

KEY CONCEPT

Level of Service Ratings & Ranges Asset Level of Service (LOS) is a qualitative measure used to describe the overall functionality of an asset. Level of Service Ratings (LOSRs) are calculated for each asset based on the combination of asset CRs and NPSs. The LOSRs of assets are grouped into one of six Level of Service Rating ranges (LOSR ranges). The LOSR ranges used in the Corporate AMP are defined as follows:

80 to 100 - Excellent LOS: Excellent CR and no NPSs. 60 to 79 - Good LOS: Good CR and no NPSs or excellent CR and few

NPSs. 40 to 59 - Fair LOS: Fair CR and no NPSs or good CR and few NPSs. 20 to 39 - Poor LOS: Poor CR and no NPSs or fair CR and few NPSs. 1 to 19 - Very Poor LOS: Very poor CR and no NPSs or poor CR and

few NPSs. 0 - Service No Longer Being Provided: Very poor CR and many

NPSs.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 10 of 94

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Leve

l of

Ser

vice

Time (Years)

KEY CONCEPT

Acceptable Level of Service Range All manmade assets are specifically designed to function within an Acceptable LOSR range for a finite length of time referred to as design life. Once an asset reaches its design life its LOSR progressively declines beyond the acceptable range as more time passes.

Service Life

Design Life

Lower LOS Threshold

Upper LOS Threshold

Acceptable LOSR Range

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 11 of 94

KEY CONCEPT

Desired Level of Service Desired Level of Service (DLOS) is defined as the LOS that a municipality aims to provide to its customers. Some DLOSs are set based on legislated requirements whereas others are recommended by municipal staff with input from the public and decided upon by municipal council members.

0102030405060708090

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Leve

l of

Ser

vice

Time (Years)

Service Life Design Life

Lower LOS Threshold

Upper LOS Threshold

Acceptable LOS Range

Ideal DLOS Range

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 12 of 94

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Leve

l of

Ser

vice

Time (Years)

KEY CONCEPT

Sarnia’s Current Level of Service Based on the available asset management data, the LOS that is currently being provided by the City’s assets is in the range of 0 to 9; that is, the City is only able to fund non-proactive rehabilitation/replacement activities on assets that have a current LOSR of less than 10.

Service Life

Design Life

Lower LOS Threshold

Upper LOS Threshold


Sarnia’s Current LOSR Range

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 13 of 94

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Leve

l of

Ser

vice

Time (Years)


Working DLOS Range

KEY CONCEPT

Working Desired Level of Service

The DLOS currently being used for asset management purposes is in the range of 0 to 19; the ‘very poor LOS’ and ‘service no longer being provided’ ranges.

Service Life

Design Life

Lower LOS Threshold

Upper LOS Threshold

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 14 of 94

KEY CONCEPT

On-Going Maintenance Maintenance activities are minor repairs that are done on an on-going basis throughout an asset’s entire life cycle.

https://www.youtube.com/watch?v=gmmchkzIfvk

http://www.fxkia.com/oil-change.htm

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 15 of 94

KEY CONCEPT

Proactive Rehabilitation LOSR Range Proactive rehabilitation is a term used to describe the major repair of an asset that is still within the Acceptable LOSR range.

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Leve

l of

Ser

vice

Time (Years)

Proactive Rehabilitation LOSR Range

Lower LOS Threshold

Design Life

Service Life

Upper LOS Threshold

At current capital funding levels, Sarnia is not in a position to address any of its proactive rehabilitation needs.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 16 of 94

KEY CONCEPT

Non-Proactive Rehabilitation/Replacement LOSR Range

Non-proactive rehabilitation/replacement is a term used to describe the repair of an asset that is no longer within the Acceptable LOSR range and is within the working DLOS range.

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Leve

l of

Ser

vice

Time (Years)

Non-Proactive Rehabilitation/ Replacement LOSR Range

Lower LOS Threshold

Design Life

Service Life

Upper LOS Threshold

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 17 of 94

KEY CONCEPT

The Asset Life Cycle The asset life cycle refers to the progression of an asset’s status, condition, and associated LOSR over time.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 18 of 94

KEY CONCEPT

Life Cycle Analysis Life cycle analysis refers to the process of identifying and planning for the future funding needs of Corporation owned assets throughout the various stages of the asset life cycle. Proper life cycle planning requires that funding be proactively allocated years in advance in anticipation of upcoming asset life cycle checkpoints.

https://www.iheartbudgets.net/2013/06/5-attitudes-that-will-save-you-money/olympus-

digital-camera-7/

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 19 of 94

KEY CONCEPT

Probability of Failure Probability of failure (POF) is a numerical representation of the likelihood of an asset failing based on the LOS that it currently provides. POF ratings are represented on a scale of 0 to 10, 10 being the highest POF rating that may be assigned to an asset. Generally speaking, the lower the LOSR an asset has, the higher its POF.

0123456789

10

0 1 2 3 4 5 6 7 8 9 10

Pro

bab

ility

of

Failu

re

Level of Service

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 20 of 94

KEY CONCEPT

Consequence of Failure Consequence of Failure (COF) is a numerical representation of the direct and indirect impacts the failure of an asset has on its customers and the surrounding area based on specific asset attributes.

Direct and indirect impacts of a failed asset in terms of the costs of repair and/or remediation include the following Impact Categories:

Social Costs - All costs associated with the disruption of community activities and/or functions, the damage of reputation and/or image, the loss of customer satisfaction and/or confidence, etc. caused by the asset failure.

Economic Costs - All costs associated with economic (or monetary) losses experienced by the municipality, its customers, and/or any other third parties as a result of the asset failure.

Environmental Costs - All costs associated with changes in the ecology (soil, water, air, habitat, etc.) of the surrounding area resulting from the asset failure.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 21 of 94

KEY CONCEPT

Impact Weightage Factors Based on recommendations made by municipal staff with input from the public and decided upon by municipal council members, each Impact Category is assigned a relative Impact Weightage Factor (IWF).

This exercise must be repeated for each Division. Legislated requirements will not be affected by the assignment of IWFs.

IWF Category Relative Importance Description

Social ? Disruption of community activities and/or functions, Damage of reputation and/or image, Loss of customer satisfaction and/or confidence,

Economic ? Economic (or monetary) losses experienced by the

municipality, its customers, and/or any other third parties.

Environmental ? Changes in the ecology (soil, water, air, habitat,

etc.) of the surrounding area. Total 100% -

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 22 of 94

KEY CONCEPT

Budget Allocations The term asset budget allocation refers to the portion of a total division budget that is allocated to a specific asset category. The term division budget allocation refers to the portion of the total capital budget that is allocated to a specific corporate division.

Transit Stops Budget

Transit Shelters Budget

Transit Amenities Budget

Transit Facility Budget

Transit Vehicles Budget

Transit Terminals Budget

Asset Budgets

Engineering Division Budget

Public Works Division Budget

Corporate Services Division Budget

Parks and Recreation Division Budget

Police Division Budget

Fire and Rescue Division Budget

Service Buildings Division Budget

Transit Division Budget

Division Budgets

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 23 of 94

KEY CONCEPT

Financial Scenarios Financial scenario projections are an analysis tool used by Corporation staff in order to predict the future rehabilitation and replacement needs of City owned assets based on various funding levels, division budget allocations, and asset budget allocations. Based on recommendations made by municipal staff with input from the public and decided upon by municipal council members, various financial scenario projections are explored as part of the asset management process.

http://www.thefreedomtrader.com/should-current-market-volatility-affect-the-way-you-

trade/

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 24 of 94

KEY CONCEPT

Corporate Asset Management Process Overview

Asset Budget Allocations

COMPARISON

Asset Age & Design Life

Asset Level of Service over Time

Asset Condition Rating

Division Budget Allocations

Corporate Budget

Proactive Needs over Time

Non-Proactive/Replacement Needs over Time

Negative Performance Statistics

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 25 of 94

CASE STUDY

Transit Vehicles

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 26 of 94

INVENTORY

A transit vehicle is defined as any vehicle owned and operated by a public passenger transport service. In general, transit vehicles are categorized into the following vehicle classifications: Transit Care-A-Van - A transit vehicle with a maximum passenger

seating capacity of fifteen people or less. Transit Bus - A transit vehicle with a maximum passenger seating

capacity of over fifteen people.

Description Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 27 of 94

INVENTORY

The Corporation currently owns and manages a total of 31 transit vehicles; 6 transit care-a-vans and 25 transit buses.

19%

81%

Transit Care-A-Vans

Transit Buses

Quantity Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 28 of 94

INVENTORY

Size

For asset management purposes, the size of a transit vehicle is defined based on the vehicle’s maximum allowable passenger capacity. Generally speaking, the greater the maximum allowable passenger capacity, the larger the transit vehicle size.

13%

36%

16% 0%

16%

16%

3%

36 to 40 Passengers31 to 35 Passengers26 to 30 Passengers21 to 25 Passengers16 to 20 Passengers11 to 15 Passengers0 to 10 Passengers

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 29 of 94

INVENTORY

Age

The majority of transit vehicles owned by the Corporation were purchased in the last 14 years. On average, transit vehicles are designed to last for 9.6 years or 552,000 kilometres, whichever comes first.

0

1

2

3

4

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

Nu

mb

er o

f V

ehic

les

Year of Purchase

Transit Care-A-VansTransit Buses

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 30 of 94

REPLACEMENT COST

The total replacement cost of the Corporation’s transit vehicles is estimated to be $11,485,000 not including HST. On average, the replacement cost of one transit vehicles is estimated to be $370,500.

Transit Vehicle Replacement Cost

7%

93%

Transit Care-A-VansTransit Buses

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 31 of 94

CONDITION

Detailed condition assessments of the mechanical, structural, heating and cooling, electrical, audio, and video equipment components of each of the transit vehicles were conducted by consulting engineers from WSP in 2016. Based on the condition information collected through these assessments, a Condition Rating (CR) value was assigned to each transit vehicle.

Transit Vehicle Condition

16%

19%

16%

0%

49%

80 to 100 = Excellent Condition

60 to 79 = Good Condition

40 to 59 = Fair Condition

20 to 39 = Poor Condition

0 to 19 = Very Poor Condition

Currently, 14 transit vehicles are considered to be in very poor condition.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 32 of 94

LEVEL OF SERVICE

Transit Vehicle Level of Service Currently, 11 transit vehicles are considered to be in the 1 to 19 LOSR range, while another 3 transit vehicles are no longer in operation.

16%

19%

16%

3%

36%

10%

80 to 100 = Excellent LOS

60 to 79 = Good LOS

40 to 59 = Fair LOS

20 to 39 = Poor LOS

1 to 19 = Very Poor LOS

0 = Service No Longer Being Provided

As of December 21, 2016, 18 of the City’s transit vehicles (58%) had exceeded their design lives.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 33 of 94

PROACTIVE REHABILITATION NEED

Transit Vehicle Proactive Rehabilitation Need Currently, 11 transit vehicles (35%) are within the proactive rehabilitation LOSR range of 40 to 79 and, as such, should be considered for rehabilitation in the next 0 to 2 years. Proactive rehabilitation activities on transit vehicles include mechanical rebuilds and complete vehicle refurbishing. The cost of the proactive rehabilitation of 11 transit vehicles is estimated to be $1,096,000 not including HST.

http://mainepublic.org/post/i-am-still-hopeful-military-authority-attempting-refurbish-bus-contract#stream/0

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 34 of 94

LEVEL OF SERVICE

Unacceptable Level of Service Only transit vehicles that are within the non-proactive rehabilitation/ replacement LOSR range of 0 to 19 are considered to be providing an unacceptable LOS.

55%

45% Acceptable LOS

Unacceptable LOS

Currently, 14 transit vehicles (45%) are considered to be providing an unacceptable LOS.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 35 of 94

NON-PROACTIVE REHABILITATION/ REPLACEMENT NEED

Transit Vehicle Non-Proactive Rehabilitation/ Replacement Need

The funding required in order to replace the 14 transit vehicles that have been identified as providing an unacceptable LOS is estimated to be $4,215,000 not including HST. Due to the potential Federal Public Transit Infrastructure Fund Grant that is scheduled to be awarded to the City, the 2017 budget allocation for transit vehicles is $2,558,000. With this funding, the City will be able to meet the needs of 7 of the total 14 transit vehicles (50%) that are in need of replacement in 2017. Without the Federal Funding, only 1 of the total 14 transit vehicles (7%) that are in need would be replaced in 2017.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 36 of 94

CURRENT LEVEL OF SERVICE

Transit Vehicle Current Level of Service At current capital funding levels, the City is not able to meet any of the proactive rehabilitation needs and only some of replacement needs of transit vehicles that are within the DLOS range of 0 to 19. The City is currently only able to address the needs of transit vehicles in the 0 to 5 LOS range. The 2017 transit vehicle capital funding deficit is currently estimated to be $2,753,000 not including HST (proactive rehabilitation and non-proactive rehabilitation/replacement need combined).

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 37 of 94

RISK ANALYSIS

Transit Vehicle Risk Ratings Risk Rating Number of Transit Vehicles

10 (Maximum) 7

9 7

8 1

7 0

6 1

5 2

4 5

3 1

2 4

1 2

0 (Minimum) 1

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 38 of 94

SAFETY

Transit Vehicle Safety The City’s Transit Department adheres to all the safety, maintenance, and inspection programs as required by the Transportation Safety Board of Canada. All of the City’s transit vehicles currently in operation are absolutely safe for passenger transport.

https://ohsinsider.com/search-by-index/safety-programs/safety-culture-snapshot-survey

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 39 of 94

PRIORITIZATION

Transit Vehicle Need Prioritization The transit vehicles are prioritized based solely on the risk ratings yielded from the risk analysis process. Consequently, transit vehicles with the highest risk ratings are deemed to be of the highest priority. When multiple assets possess the same risk rating, such as is the case for transit vehicles, further refinement of priorities is left up to the discretion of qualified City staff.

http://www.nanozine.org/top-priority-stamp.html https://www.merchantmaverick.com/best-high-

risk-merchant-account-providers/

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 40 of 94

PRIORITIZATION

Priority Transit Vehicles Priority Ranking Transit Vehicle ID # Risk Rating

#1 Transit Bus 053 10



#4 Transit Bus 041 9.9

#5 Transit Van 061 9.8






Due to capital budget constraints, these priorities are based on non-proactive rehabilitation/replacement needs only.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 41 of 94

IMPROPER ASSET MANAGEMENT PLANNING

Ramifications

https://ca.news.yahoo.com/photos-massive-sinkhole-in-downtown-1446536904491062.html

http://cumberlink.com/news/local/communities/boiling_springs/kunkle-bridge-closed-in-south-middleton-township/article_5170617e-6f68-11e4-bb77-

47fb3809286a.html

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 42 of 94

PROPER ASSET MANAGEMENT PLANNING

Benefits

http://http://www.businessinsider.com/the-best-6-new-libraries-in-america-2015-4

http://www.sport-touring.net/forums/index.php?topic=40222.0#.WJtK6W8rKyo

https://de.wikipedia.org/wiki/Busbahnhof

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 43 of 94

COUNCIL INVOLVEMENT

Discussion Points

http://www.sport-touring.net/forums/index.php?topic=40222.0#.WJtK6W8rKyo

Open discussion is encouraged as we go through the remaining slides in this presentation.

http://www.sneakerfiles.com/discussion-the-discussion/

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 44 of 94

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Leve

l of

Ser

vice

Time (Years)


Current Working DLOS Range

COUNCIL INVOLVEMENT

Desired Level of Service

The DLOS range selected will have a significant impact on the total value of asset needs across the entire Corporation.

Service Life

Design Life

Upper LOS Threshold

Lower LOS Threshold

What Working DLOS range would Council like to adopt?

?

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 45 of 94

COUNCIL INVOLVEMENT

Impact Weightage Factors

IWF Category Relative Importance Description

Social ? Disruption of community activities and/or functions, Damage of reputation and/or image, Loss of customer satisfaction and/or confidence,

Economic ? Economic (or monetary) losses experienced by the

municipality, its customers, and/or any other third parties.

Environmental ? Changes in the ecology (soil, water, air, habitat,

etc.) of the surrounding area. Total 100% -

These percentages will influence which assets are of highest priority within Division asset management plans. Legislated requirements will not be affected by the assignment of IWFs.

How would Council rate the importance of the IWFs?

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 46 of 94

FINANCIAL PLANNING

Division Capital Budget Re-Allocation

CORPORATE CAPITAL BUDGET

Transit Terminals Budget

Transit Division Budget

Transit Facility Budget

Transit Vehicles Budget

Transit Stops Budget

Transit Shelters Budget

Transit Amenities Budget

Engineering Division Budget

Public Works Division Budget

Corporate Services Division Budget

Parks and Recreation Division Budget

Police Division Budget

Fire and Rescue Division Budget

Service Buildings Division Budget

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 47 of 94

FINANCIAL PLANNING

Current Capital Budget Percentage Allocations Division Name 2013 2014 2015 2016 2017

Transit 4% 2% 6% 6% 9% Engineering* 90% 94% 85% 72% 79%

Corporate Services 1% 0% 1% 12% 2% Parks and Recreation 0% 0% 4% 4% 8%

Police 2% 0% 2% 3% 0% Fire and Rescue 3% 2% 2% 3% 2% Service Buildings 1% 1% 0% 0% 0%

Total 100% 100% 100% 100% 100%

*Includes Public Works.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 48 of 94

FINANCIAL PLANNING

Fixed Capital Budget Priorities

Service Type Relative Importance Transit ?

Engineering ? Public Works ?

Corporate Services ? Parks and Recreation ?

Police ? Fire and Rescue ? Service Buildings ?

Total 100%

The relative importance of each service type will affect the base/fixed amount of capital funding that is allocated to each of the City’s Divisions.

One proposal is that one portion of the Capital Budget be fixed while the other portion remains variable.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 49 of 94

FINANCIAL PLANNING

Variable Capital Budget Priorities The proposed variable portion of the total Capital Budget will be allocated solely based on Division and asset needs as reported in the Corporate Asset Management Plan.

Division Name Budget Allocation % of Total Corporate Need Transit $ %

Engineering $ % Public Works $ %

Corporate Services $ % Parks and Recreation $ %

Police $ % Fire and Rescue $ % Service Buildings $ %

Totals $$$$$ 100%

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 50 of 94

FINANCIAL PLANNING

Corporate Budget Financial Scenarios

Scenario Name Description #1 Pay-As-You-Go Capital

Fund capital projects out of the operating budget which will result in a general levy increase.

#2 Dedicated Infrastructure Levy Impose an infrastructure levy for a specified period of time.

#3 User Fees Dedicate part of user fees directly to capital projects and/or

impose new asset specific user fees.

#4 Issue Debt Modify fiscal policy in order to manage an asset-based debt

portfolio.

#5 Public/Private Partnerships Partner with a private company (or companies) to receive the

benefits of cost and risk sharing.

#6 Asset Divestiture Close, decommission, and/or sell assets in order to reduce

operating costs and capital funding requirements.

#7 Reduction of Select Services Reduce select services in order to align spending with the

Corporation’s ability to fund capital projects.

#8 Collaboration with Other

Municipalities

Collaborate with other local municipalities in joint projects, technology usage, etc., to reduce capital project costs when

possible.

The following scenario’s are presented to Council as ‘food for thought’.

Are there any other possible scenarios to consider?

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 51 of 94

Compiling and continuously updating all asset data. Ensuring that Departmental 10-Year Capital Plans are in-line with

the Corporate Asset Management Plan. Conducting routine asset condition assessments. Tracking all maintenance, rehabilitation, and replacement activities

conducted on assets. Providing up-to-date asset information to the Engineering

Department. Completing Capital Project Summary Tables annually. Being accountable for capital project recommendations.

STAFF INVOLVEMENT

Division Responsibilities Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 52 of 94

STAFF INVOLVEMENT

Engineering & Finance Together, the City’s Engineering and Finance Departments will be leading the Corporate Asset Management initiatives will input from and collaboration with all other departments.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 53 of 94

PUBLIC INVOLVEMENT

Customer Asset Usage Survey Customer Satisfaction Survey Customer Priorities Survey

Customer Surveys

http://bdeveloper.com/customer-service-and-e-commerce-solutions/

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 54 of 94

PUBLIC INVOLVEMENT

Corporate Asset Management Meeting Public Priorities Meeting Other Public Meetings as Required

Public Meetings, Discussions & Documents

http://thesarniajournal.ca/super-fan-nick-monsour-has-attended-almost-every-city-council-for-the-past-60-years/

All documents published by the Corporation are available on the City’s website for public viewing.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 55 of 94

TIMELINE

Key Asset Management Milestones

This timeline is subject to change depending on the availability of condition assessment funding, emerging priorities, and staffing availability.

Council will be engaged as Division Asset Management Plans are completed and ready for consideration.

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 56 of 94

CORPORATE ASSET MANAGEMENT PLANNING DOCUMENT

Questions or Comments?

Presen

tation #

1 - Feb

ruary 1

3, 2

01

7

Page 57 of 94

2017

Prepared by the

Following Departments:

Engineering Department

1/24/2017

THE CORPORATION OF THE CITY OF SARNIA

Terms of Reference and

Methodology for Corporate Asset

Management Planning

Information Item #1 - February 13, 2017

Page 58 of 94

CORPORATE ASSET MANAGEMENT PLANNING

January 24, 2017

Page 1

PREFACE

Terms of Reference and Methodology for Corporate

Asset Management Planning

The contents of this document include the terms of reference and methodology

used in the development of the Sarnia Corporate Asset Management Plan

(Corporate AMP). The terms of reference presented in this document have been

developed based on the guidelines and format described in the Ministry of

Infrastructure’s ‘Building Together: Guide for Municipal Asset Management Plans’

and the Council approved 2013 Core Infrastructure Services Asset Management

Plan. The methodology detailed in this document is to serve as a standardized

procedure for approaching asset management across all of the City’s divisions and

corporate assets.


Page 59 of 94


January 24, 2017

Page 2

CORPORATE PLANNING TABLE OF CONTENTS

PREFACE ........................................................................... 1

Terms of Reference and Methodology for Corporate Asset Management

Planning ............................................................................................ 1

CORPORATE PLANNING TABLE OF CONTENTS ......................... 2

CORPORATE PLANNING INTRODUCTION ................................. 5

General Background ........................................................................... 5

The City .................................................................................................. 5

The Corporation of the City of Sarnia .......................................................... 6

The Corporate Asset Management Plan ........................................................ 6

Asset Management ................................................................................... 7

The Asset Management Process .................................................................. 7

Asset Management Plan ............................................................................. 8

The Importance of Asset Management ......................................................... 8

Technical Background ......................................................................... 9

Types of Assets ........................................................................................ 9

Condition Ratings ..................................................................................... 9

Condition Rating Ranges ............................................................................ 9

Level of Service ...................................................................................... 10

Level of Service Ratings ........................................................................... 10

Level of Service Rating Ranges ................................................................. 11

Desired Level of Service .......................................................................... 11

Current Level of Service .......................................................................... 11

Design Life ............................................................................................. 11

Service Life ............................................................................................ 12

The Asset Life Cycle ................................................................................ 13

Life Cycle Analysis .................................................................................. 14

CORPORATE PLAN OVERVIEW .............................................. 15

Scope ............................................................................................. 15


Page 60 of 94


January 24, 2017

Page 3

Division Asset Management Plans ............................................................. 15

Asset Management in the City of Sarnia .............................................. 15

Asset Management Objectives .................................................................. 15

City of Sarnia Goals ................................................................................ 16

The Sarnia Staff Asset Management Committee .......................................... 16

The Sarnia Council Asset Management Committee ...................................... 16

Sarnia Geographic Information System ..................................................... 17

Data Collection ....................................................................................... 17

Key Level of Service Ranges .............................................................. 18

Proactive Rehabilitation Level of Service Range .......................................... 18

Non-Proactive Rehabilitation/Replacement Level of Service Range ................ 19

Other Municipalities ................................................................................ 20

Risk Analysis ................................................................................... 20

Probability of Failure ............................................................................... 20

Consequence of Failure............................................................................ 20

Risk ...................................................................................................... 23

Asset Prioritization ........................................................................... 23

Proactive Rehabilitation Prioritization ......................................................... 23

Non-Proactive Rehabilitation/Replacement Prioritization............................... 24

Financial Scenario Projections ............................................................ 24

Implementation ............................................................................... 27

Recommendations .................................................................................. 27

The City of Sarnia Corporate Budget ......................................................... 27

Departmental Budgets ............................................................................. 27

Departmental 10-Year Capital Plans .......................................................... 27

Other Plans ............................................................................................ 27

Performance Measures ...................................................................... 28

Division Performance .............................................................................. 28

Budget Allocation Performance ................................................................. 30

Budget Performance ................................................................................ 31


Page 61 of 94


January 24, 2017

Page 4

Data Processing ............................................................................... 31

The Sarnia Asset Management Process ............................................... 33

Timeline .......................................................................................... 35

Glossary ......................................................................................... 36

Acronyms .............................................................................................. 36


Page 62 of 94


January 24, 2017

Page 5

CORPORATE PLANNING INTRODUCTION

General Background

The City

The City of Sarnia (Sarnia or the City) is located on the south shore of Lake Huron

at the headwaters of the Saint Clair River as shown in Figure 1. The City occupies

an area of approximately 165 square kilometers and currently has a population of

approximately 74,775 people. Sarnia is a lower-tier municipality within the County

of Lambton.

Figure 1: The Geographic Location of the City of Sarnia.


Page 63 of 94


January 24, 2017

Page 6

The Corporation of the City of Sarnia

The Corporation of the City of Sarnia (the Corporation) is a multi-divisional

organization that, for asset management purposes, is comprised of the following

divisions:

Transit

Engineering Public Works Corporate Services

Parks and Recreation Police

Fire and Rescue Service Buildings

Each division within the Corporation is responsible for the operation, maintenance,

replacement, and management of its assets. As such, each division is responsible

for the creation and continuous updating of their division’s asset management plan

(AMP).

All of the division plans have been developed based on the asset management

processes, goals, guidelines, and criteria specified in the CORPORATE PLAN

OVERVIEW section.

The Corporate Asset Management Plan

As illustrated by Figure 2, Sarnia’s Corporate AMP is a compilation of the asset

management plans from each of the Corporation’s divisions.


Page 64 of 94


January 24, 2017

Page 7

Corporate AMP

Transit AMP

Engineering AMP

Public Works AMP

Corporate Services AMP

Parks and Recreation AMP

Police AMP

Fire and Rescue AMP

Service Buildings AMP

Figure 2: Overview of the Sarnia Corporate Asset Management Plan.

Asset Management

Asset management is a term used to describe the process by which a municipality

inventories and manages its assets over time. Successful asset management

enables municipalities to provide residents and other users with services and

amenities that meet public expectations and government standards while remaining

financially sustainable for years to come.

The Asset Management Process

In order to properly manage assets, the Ministry of Infrastructure’s ‘Building

Together: Guide for Municipal Asset Management Plans’ (Building Together)

recommends that the following data collection processes and tasks be completed

for each asset type as part of the asset management process:

Inventory of Assets - What assets does the Corporation own?

Asset Replacement Costs - What is the replacement cost of each of the Corporation’s assets?

Location of Assets - Where are the Corporation’s assets located?


Page 65 of 94


January 24, 2017

Page 8

Asset Service Level - What level of service do the Corporation’s assets

provide? What level of service should they provide? Condition of Assets - What condition are the Corporation’s assets in? How

much longer will they last? Associated Risks and Consequences - What are the risks and

consequences associated with the failure of the Corporation’s assets in terms of loss of benefit? What is the relative importance of loss of Social, Economic, and Environmental benefits?

Prioritization of Assets - Which assets need to be replaced and in what order? Which assets are priorities?

Construction, Maintenance, Rehabilitation, and Replacement of Assets - What kind of work needs to be performed on the Corporation’s assets in order to maintain and/or increase service levels? What kind of work

will be done/is being done on the Corporation’s assets? Financial Planning - How much will the work cost? How will it be funded?

When will it be funded?

These recommended data collection processes and tasks must be completed and

updated on a continuous basis in order to maintain an accurate inventory of the

number, type, and condition of assets so that comprehensive corporate and

departmental capital plans can be prepared and executed.

Asset Management Plan

An asset management plan is a long-term action plan for the construction,

maintenance, rehabilitation, and replacement of all assets within a municipality. A

comprehensive asset management plan addresses all of the topics previously

described in The Asset Management Process section.

The efficacy of a municipality’s asset management plan is highly contingent on the

accuracy of asset inventories and condition assessments.

The Importance of Asset Management

Asset management is an important informational tool that allows a municipality to

make fully informed decisions when it comes to operating, constructing,

maintaining, rehabilitating, and replacing its assets. Fully informed decisions mean

that municipal budgets and funds are allocated and spent in such a way that is

most effective and beneficial to the community.


Page 66 of 94


January 24, 2017

Page 9

Technical Background

Types of Assets

For the purposes of the Corporate AMP, the two following asset types are used to

classify all of the City’s assets:

Linear Assets - Assets that can be measured on a per linear meter basis are considered to be linear assets. Examples of linear assets include roads, water mains, and sanitary sewers.

Non-Linear Assets - Assets that cannot be measured on a per linear meter basis, but rather can be described by a fixed geographic location, are

considered to be vertical assets. Examples of vertical assets include buildings, pump stations, transit vehicles, and parks.

Condition Ratings

During inspection and condition assessment programs, each municipal asset is

assigned a Condition Rating (CR) based on its observed condition and defects. In

situations where condition assessment data is not available, industry standard age

and material-based asset deterioration curves are used to estimate the CRs of

municipal assets.

Condition Rating Ranges

The CRs of assets are grouped into one of five condition rating ranges (CR ranges).

The CR ranges used in the Corporate AMP are defined as follows:

80 to 100 - Excellent Condition: No defects visible.

60 to 79 - Good Condition: A few minor defects are visible. 40 to 59 - Fair Condition: Many minor defects or a few significant defects

are visible.

20 to 39 - Poor Condition: Many significant defects are visible. 0 to 19 - Very Poor Condition: The asset is no longer functioning as

intended.

A general illustration of the deterioration of an asset’s condition over time in terms

of CR ranges is provided in Figure 3.


Page 67 of 94


January 24, 2017

Page 10

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Co

nd

itio

n R

ati

ng

Time (Years)

Deterioration of Asset Condition over Time

Figure 3: Deterioration of Asset Condition over Time.

Level of Service

Asset Level of Service (LOS) is a qualitative measure used to relate an asset’s

current condition and Negative Performance Statistics (NPSs), such as the number

of customer complaints, number of emergency repairs, etc., to the quality of

service that it provides to its users.

Poor CRs values and NPSs both have a tendency to decrease an asset’s LOS; the

lower the CR value and/or the larger the number of negative performance statistics

that are associated with a particular asset, the lower the LOS it provides.

Specific NPSs taken into consideration in the determination of asset LOSs are

discussed further in subsequent sections of this document.

Level of Service Ratings

As part of the asset management process, each municipal asset is assigned a Level

of Service Rating (LOSR) based on a combination of asset CRs and NPSs. In

situations where NPSs are not available, an asset’s LOSR is assumed to be equal to

its CR.


Page 68 of 94


January 24, 2017

Page 11

Level of Service Rating Ranges

Asset LOSRs are grouped into one of six Level of Service Rating Ranges (LOSR

Ranges). The LOSR Ranges used in this revision of the Corporate AMP are defined

as follows:

80 to 100 - Excellent LOS: Excellent CR and no NPSs.

60 to 79 - Good LOS: Good CR and no NPSs or excellent CR and few NPSs. 40 to 59 - Fair LOS: Fair CR and no NPSs or good CR and few NPSs. 20 to 39 - Poor LOS: Poor CR and no NPSs or fair CR and few NPSs.

1 to 19 - Very Poor LOS: Very poor CR and no NPSs or poor CR and few NPSs.

0 - Service No Longer Being Provided: Very poor CR and many NPSs.

In some instances, LOSR Ranges may be expressed in terms of a letter grade (A to

F) rather than a number rating (0 to 100). Letter grades are related to number

ratings as follows:

80 to 100 - Grade A: Excellent LOS. 60 to 79 - Grade B: Good LOS.

40 to 59 - Grade C: Fair LOS. 20 to 39 - Grade D: Poor LOS.

1 to 19 - Grade F+: Very Poor LOS. 0 - Grade F: Service No Longer Being Provided.

Desired Level of Service

Desired Level of Service (DLOS) is defined as the LOS that a municipality aims to

provide to its customers. Each one of a municipality’s asset categories is assigned a

specific DLOS. Some DLOSs are set based on legislated requirements whereas

others are recommended by municipal staff, municipal council members, and/or the

public.

Current Level of Service

Current level of service (CLOS) is defined as the LOS that a municipality currently

provides to its customers within each one of its asset categories. The CLOS of an

asset category is calculated based on the weighted average of all of the associated

individual asset LOSRs.

Design Life

All manmade assets are specifically designed to function within an Acceptable

Service Level Range for a finite length of time referred to as design life. Once an

asset reaches its design life it begins to wear out causing its service level to

progressively decline beyond the acceptable range as more time passes. An


Page 69 of 94


January 24, 2017

Page 12

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Asset

Level o

f S

ervic

e

Time (Years)

Illustration of Design Life and Acceptable Service Level Range

Lower Asset Level

of Service Threshold

Upper Asset Level


Design Life

Acceptable Service

Level Range

illustration of asset design life and the acceptable service level range is provided in

Figure 4.

Figure 4: Illustration of Design Life and Acceptable Service Level Range.

Once an asset surpasses its design life (or Lower Asset Level of Service Threshold),

both the frequency and cost of yearly repairs increase exponentially.

Service Life

Asset service life is defined as the total length of time that an asset remains in

service (from the time that it is put into commission until the time that it no longer

provides service (asset LOSR = 0)) irrespective of its design life and/or decline in

service level. Figure 5 provides an illustration of asset service life and the

acceptable service level range.


Page 70 of 94


January 24, 2017

Page 13

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Asset

Level o

f S

ervic

e

Time (Years)

Illustration of Service Life and Acceptable Service Level Range

Lower Asset Level


Upper Asset Level


Service Life

Acceptable Service

Level Range

Figure 5: Illustration of Service Life and Acceptable Service Level Range.

The Asset Life Cycle

The asset life cycle refers to the progression of an asset’s status, condition, and

associated LOSR over time. For the purposes of the Corporate AMP, the asset life

cycle begins upon the identification of a need for a given asset and ends upon the

replacement of said asset. Figure 6 provides an illustration of the asset life cycle

including important checkpoints denoted by numbers 1 through 4.


Page 71 of 94


January 24, 2017

Page 14

Need Identification

Planning & Design

Construction

Commissioning

On-Going Maintenance

Proactive Rehabilitation

Non-Proactive

Rehabilitation

Decommissioning

Replacement

Figure 6: Overview of the Asset Life Cycle.

Checkpoints 1 through 4, denoted in Figure 6, refer to the following events in an

asset’s life cycle:

Checkpoint 1 - The beginning of the asset’s design and service lives; asset LOSR = 100.

Checkpoint 2 - The asset’s LOSR has begun to decline but remains within the Acceptable Service Level Range.

Checkpoint 3 - The asset has reached or surpassed its design life; asset LOSR ≤ Lower Asset Level of Service Threshold.

Checkpoint 4 - The asset has reached its service life; asset LOSR = 0.

Life Cycle Analysis

Life cycle analysis refers to the process of identifying and planning for the future

funding needs of Corporation owned assets throughout the various stages of the

asset life cycle. Proper life cycle planning requires that funding be proactively

allocated years in advance in anticipation of upcoming asset life cycle checkpoints.

1

3

2

4


Page 72 of 94


January 24, 2017

Page 15

CORPORATE PLAN OVERVIEW

Scope

Division Asset Management Plans

The following division asset management plans will be included in the Corporate

AMP by January 1, 2021:

Transit Engineering

Public Works Corporate Services

Parks and Recreation Police Fire and Rescue

Service Buildings

Asset Management in the City of Sarnia

Asset Management Objectives

The Corporate AMP has been developed in such a way as to meet the following

objectives as approved by Council in the 2013 Core Infrastructure Services Asset

Management Plan:

To document the quantity, material, age, and condition of all the assets owned, operated, and maintained by the Corporation.

To document the Corporation’s current service levels and service goals as

they pertain to assets across all of the Corporation’s departments. To detail the Corporation’s current, future, and recommended

implementation plans for the maintenance, rehabilitation, and replacement of all division assets.

To detail the Corporation’s financial plan for the maintenance, rehabilitation,

and replacement of assets across all divisions. To provide the City of Sarnia Council members, managers, and staff with a

comprehensive reference document to aid in decision making processes. To fulfill provincial and federal government funding requirements. To provide the public with a complete overview of Corporation owned assets,

the funding required, and the funding provided. Others as recommended by Council.


Page 73 of 94


January 24, 2017

Page 16

City of Sarnia Goals

Through the update and implementation of the Corporate AMP, the Corporation

seeks to achieve the following goals:

Maintain or improve the condition of the Corporation’s assets. Protect receiving bodies of water by mitigating combined sanitary/storm

sewer overflows and associated basement flooding. Maintain or improve fire flows and pressure within the Corporation’s drinking

water distribution system.

Continue to provide safe drinking water to customers. Maintain or improve the current service levels provided to Sarnia residents

and industry. Encourage and implement activities and programs that reduce resource

consumption, waste production, and pollution.

Ensure that those who receive benefit from the Corporation’s assets pay for their share of the services that they are provided.

Fulfill the requirements of and secure provincial and/or federal government funding.

Others as recommended by Council.

The aforementioned goals are consistent with the guiding principles set forth in ‘the

City of Sarnia Official Plan’ (Official Plan), ‘the Sarnia Corporate Strategic Plan-

Draft’ (Strategic Plan), as well as ‘the City of Sarnia Integrated Community

Sustainability Plan’ (Sustainability Plan). Links to each one of the aforementioned

plans can be found on the Corporation’s website at www.sarnia.ca.

The Sarnia Staff Asset Management Committee

The Sarnia Staff Asset Management Committee (Staff AMC) was appointed in the

development of the first publication of the Sarnia Corporate AMP on May 10, 2016.

The Staff AMC consists of members from each of the Corporation’s divisions. The

purpose of the Sarnia AMC is to share input and discuss topics pertaining to the

development, maintenance, and implementation of the Corporate AMP; such topics

include the development of data collection processes, desired service levels,

condition rating values, risk analysis criteria, funding plans, etc.

The Sarnia Council Asset Management Committee

The Sarnia Council Asset Management Committee (Council AMC) was initiated at

the Corporate Priorities/Strategic Planning Meeting held on September 26, 2016.

The Council AMC consists of all the members of the City of Sarnia Council. The

purpose of the Council AMC is to discuss topics, make decisions, and set goals

regarding minimum and desired asset LOSs, risk levels, budget allocations, and

corporate priorities as they pertain to the Corporate AMP.


Page 74 of 94


January 24, 2017

Page 17

Sarnia Geographic Information System

Over the years, the Corporation staff have compiled an extensive inventory of asset

data in the Sarnia Geographic Information System (Sarnia GIS). The Sarnia GIS is

currently supported by the ESRI Enterprise GeoCortex Geographic Information

System. The Sarnia GIS database includes the location, size, material, and

condition of assets owned by the Corporation. The Corporation’s GIS data collection

programs are currently ongoing, and as such the Sarnia GIS database is

continuously being updated as more data becomes available.

Data Collection

Various data collection processes are employed by Corporation staff in order to

accurately define and assess the broad range of assets located within the City.

The location and size attributes of Corporation owned assets are collected by

Corporation staff and/or qualified consultants during a one-time field investigation

using hand-held global positioning system (GPS) devices. Once collected, this

information is directly uploaded into the Sarnia GIS for future reference and use.

Age and material attributes of Corporation owned assets are compiled by

Corporation staff through the research of as-built drawings and other historical

records. In contrast, asset replacement costs are estimated based on corporate

insurance documents and/or unit rates obtained from recently completed capital

projects. Once collected, age, material, and replacement cost information is directly

uploaded into the Sarnia GIS for future reference and use.

Asset condition information is collected by Corporation staff and/or qualified

consultants during field investigations on an on-going basis. The frequency with

which inspection and condition assessment programs are to be conducted on a

particular asset is typically defined by legislation specific to that asset. Such

legislated requirements are discussed in more detail within subsequent sections of

this Corporate AMP. In cases where legislated condition assessment requirements

are not specified for a given asset, Corporation staff perform condition

investigations on said asset once every five years or less, based on

recommendations from the City of Sarnia Council and/or at the discretion of senior

Corporation staff based on available funding.


Page 75 of 94


January 24, 2017

Page 18

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Asset

Level o

f S

ervic

e

Time (Years)

Illustration of Proactive Rehabilitation Service Level Range

Lower Asset Level


Upper Asset Level


Design Life

Acceptable Service

Level Range

Key Level of Service Ranges

Proactive Rehabilitation Level of Service Range

Proactive rehabilitation is a term used to describe the repair of an asset that is still

within the Acceptable Service Level Range. By performing proactive rehabilitation

activities on an asset, increases in the assets service life, capacity, and/or

performance can be realized for a fraction of the cost of complete replacement.

For the purposes of the Corporate AMP, assets with LOSRs ranging from 40 to 79

(fair and good LOSRs) qualify for proactive rehabilitation, unless otherwise

specified. An illustration of proactive rehabilitation service level range is provided in

Figure 7.

Figure 7: Illustration of Proactive Rehabilitation Service Level Range.

Proactive Rehabilitation

Service Level Range


Page 76 of 94


January 24, 2017

Page 19

0

10

20

30

40

50

60

70

80

90

100

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Asset

Level o

f S

ervic

e

Time (Years)

Illustration of Non-Proactive Rehabilitation/ Replacement Service Level Range

Lower Asset Level


Upper Asset Level


Design Life

Acceptable Service

Level Range

Non-Proactive Rehabilitation/Replacement Level of Service Range

Non-proactive rehabilitation/replacement is a term used to describe the repair of an

asset that is at or below the acceptable service level range. For the purposes of the

Corporate AMP, assets with LOSRs ranging from 0 to 19 (service no longer being

provided and very poor LOS) qualify for non-proactive rehabilitation or

replacement, unless otherwise specified.

All assets identified as having a LOSR ranging from 0 to 19 are inspected prior to

the commencement of a related construction project in order to determine whether

non-proactive rehabilitation is a feasible alternative to the complete replacement of

the asset.

Please note that the 1 to 19 range is the lowest possible LOSR range at which non-

proactive rehabilitation may occur; assets with LOSRs of 0 must be replaced on an

emergency basis as asset failures occur.

An illustration of non-proactive rehabilitation/replacement service level range is

provided in Figure 8.

Figure 8: Illustration of Proactive Rehabilitation Service Level Range.

Non-Proactive Rehabilitation

Service Level Range


Page 77 of 94


January 24, 2017

Page 20

Other Municipalities

As a standard practice, non-proactive rehabilitation/replacement of an asset is

considered when an asset reaches a LOSR of below 40; that is, before an asset

reaches its design life (or Lower Asset Level of Service Threshold).

This practice has the ability to drastically reduce the frequency and cost of yearly

emergency repairs that are typically associated with assets in operation beyond

their design lives (with LOSRs in the 0 to 19 range).

Regretfully, the Corporation is unable to implement such a practice due to current

funding limitations. The 2017 non-proactive rehabilitation/replacement need for all

core linear infrastructure assets (roads, major bridges and culverts, water mains,

sanitary sewers, storm sewers, and shoreline protection structures) is currently

estimated to be $257,359,760. Increasing the non-proactive

rehabilitation/replacement LOSR range to the level considered by other

municipalities would only serve to increase the Corporation’s current needs to an

even more unattainable amount.

Risk Analysis

Probability of Failure

Probability of failure (POF) is a numerical representation of the likelihood of an

asset failing based on the LOS that it currently provides as determined through the

analysis of NPSs (Negative Performance Statistics) and CRs (Condition Ratings).

An asset’s POF is calculated based on asset LOSRs (Level of Service Ratings). POF

ratings are represented on a scale of 0 to 10, 10 being the highest POF rating that

may be assigned to an asset. The following equation is used to determine the POF

of each asset within the City:

𝑃𝑂𝐹 = 10 − (LOSR

10 )

Assets with LOSRs of 0 are directly assigned the maximum POF of 10.

Consequence of Failure

Consequence of Failure (COF) is a numerical representation of the direct and

indirect impacts the failure of an asset has on its customers and the surrounding

area based on specific asset attributes.

Direct and indirect impacts of a failed asset in terms of the costs of repair and/or

remediation include the following:


Page 78 of 94


January 24, 2017

Page 21

Social Costs - All costs associated with the disruption of community

activities and/or functions, the damage of reputation and/or image, the loss of customer satisfaction and/or confidence, etc. caused by the asset failure.

Economic Costs - All costs associated with economic (or monetary) losses experienced by the municipality, its customers, and/or any other third parties

as a result of the asset failure. Environmental Costs - All costs associated with changes in the ecology

(soil, water, air, habitat, etc.) of the surrounding area resulting from the

asset failure.

Each of the aforementioned impact categories is assigned a relative impact

weightage factor (IWFsocial, IWFeconomic, and IWFenvironmental) as specified by the Council

AMC and the Staff AMC for use in the calculation of COF ratings. The sum of all the

IWF factors must be equal to 100 percent; that is:

𝐼𝑊𝐹𝑠𝑜𝑐𝑖𝑎𝑙 + 𝐼𝑊𝐹𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 + 𝐼𝑊𝐹𝑒𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡𝑎𝑙 = 100%

In an open discussion meeting, each member of the Council AMC and Staff AMC will

be asked to independently complete an IWF Distribution Table as shown in Table 1.

Table 1: Impact Weightage Factor Distribution Table.

Impact

Weightage

Factor (IWF)

Relative

Importance

(%)

Description

Social #

The relative importance of the costs associated the

disruption of community activities and/or

functions, the damage of reputation and/or image,

the loss of customer satisfaction and/or

confidence, etc. caused by the asset failure.

Economic #

The relative importance of the costs associated

with economic (or monetary) losses experienced

by the municipality, its customers, and/or any

other third parties as a result of the asset failure.

Environmental #

The relative importance of the costs associated

with changes in the ecology (soil, water, air,

habitat, etc.) of the surrounding area resulting

from the asset failure.

Totals 100 -

The social, economic, and environmental costs associated with the failure of a given

asset vary greatly based on the asset’s specific attributes, such as size, location,

type of use, frequency of use, proximity to important or sensitive features, etc.


Page 79 of 94


January 24, 2017

Page 22

The number and type of asset attributes possessed by different types of asset can

vary. For example, the proximity of a sanitary sewer pipe to a creek has bearing on

its COF because if that pipe were to fail it is very likely to contaminate the creek.

On the other hand, the proximity of a building to a creek does not have bearing on

its COF because if that building or one of its components were to fail it is very

unlikely to adversely affect the creek.

Due to the variance in the type of applicable asset attributes, all those that are

relevant to the risk analysis process are defined in specific asset sections within the

Corporate AMP.

Each asset attribute identified as being relevant to the risk analysis process is

assigned an attribute factor (AF) out of 10 based on the severity of the impact it

would have in the event of failure. For example, a sanitary sewer pipe that is within

five metres of a creek would have a greater impact in the event of a failure

(AF=10) than a sanitary sewer pipe that is over fifty metres from a creek (AF=0).

AFs typically can be categorized as having predominantly social, economic, or

environmental effects (AFsocial, AFeconomic, or AFenvironmental). For example, the failure of

a road surface in a heavily trafficked commercial shopping area has significant

social implications (AFsocial); the failure of a water main pipe servicing an industrial

area has significant economic implications (AFeconomic); and, the failure of a sanitary

sewer pipe that is in close proximity to a creek has significant environmental

implications (AFenvironmental).

Due to the variance in the number of applicable asset attributes across all asset

types, an average is AF (AFavg) is calculated for each asset type; that is:

𝐴𝐹𝑎𝑣𝑔 =∑ 𝐴𝐹

𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐴𝐹𝑠

An asset’s COF is calculated based on the impact category IWFs and the asset

AFavgs. COF ratings are represented on a scale of 0 to 10, 10 being the highest COF

rating that may be assigned to an asset. The following equations are used to

determine the COF of each asset within the City:

𝐶𝑂𝐹𝑠𝑜𝑐𝑖𝑎𝑙 = [ 𝐼𝑊𝐹𝑠𝑜𝑐𝑖𝑎𝑙 ] 𝑥 [ (𝐴𝐹𝑎𝑣𝑔)𝑠𝑜𝑐𝑖𝑎𝑙 ]

𝐶𝑂𝐹𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 = [ 𝐼𝑊𝐹𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 ] 𝑥 [ (𝐴𝐹𝑎𝑣𝑔)𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 ]

𝐶𝑂𝐹𝑒𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡𝑎𝑙 = [ 𝐼𝑊𝐹𝑒𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡𝑎𝑙 ] 𝑥 [ (𝐴𝐹𝑎𝑣𝑔)𝑒𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡𝑎𝑙 ]

𝐶𝑂𝐹𝑜𝑣𝑒𝑟𝑎𝑙𝑙 = [ 𝐶𝑂𝐹𝑠𝑜𝑐𝑖𝑎𝑙 + 𝐶𝑂𝐹𝑒𝑐𝑜𝑛𝑜𝑚𝑖𝑐 + 𝐶𝑂𝐹𝑒𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡𝑎𝑙 ]


Page 80 of 94


January 24, 2017

Page 23

Risk

For the purposes of the Corporate AMP, risk is defined as a numerical

representation of the probability of a failure event occurring and the associated

consequences of that failure in terms of the cost of damages.

The risk associated with each asset within the City is calculated using the following

equation:

𝑅𝑖𝑠𝑘 = 𝑃𝑂𝐹 𝑥 𝐶𝑂𝐹

Risk ratings are represented on a scale of 0 to 100, 100 being the highest possible

risk rating that may be assigned to an asset.

Risk ratings are generated for each asset owned by the Corporation.

Asset Prioritization

The Corporation does not have the resources required to address all of the

proactive rehabilitation, non-proactive rehabilitation, and replacement activities

identified in the Corporate AMP. Consequently, all assets identified in the Corporate

AMP are ordered in such a way as to prioritize the assets with the highest

associated risk rating first. The process of ordering corporate assets based on those

with highest to lowest associated risk is called asset prioritization.

Proactive Rehabilitation Prioritization

The following tasks are completed by Corporation staff, with consultation with the

Council AMC and Staff AMC, in order to determine which corporate assets have the

highest associated risk and thus require proactive rehabilitation (rehabilitation of an

asset that is in the ‘good’ or ‘fair’ level of service range) most urgently:

Generate an overall proactive rehabilitation need list across all assets based on asset LOSRs.

Calculate a risk rating for each asset identified on the overall proactive rehabilitation need list.

Order the assets identified on the overall proactive rehabilitation need list from highest to lowest associated risk rating.

Compile a top 100 proactive rehabilitation priority list based on the ordered

data.

The number of proactive rehabilitation activities undertaken by the Corporation in a

given year is contingent on available funding and budget allocations.


Page 81 of 94


January 24, 2017

Page 24

Non-Proactive Rehabilitation/Replacement Prioritization

The following tasks are completed by Corporation staff, with consultation with the

Council AMC and Staff AMC, in order to determine which corporate assets have the

highest associated risk and thus require non-proactive rehabilitation and/or

replacement (rehabilitation or replacement of an asset that is in the ‘very poor’ or

‘service no longer being provided’ level of service range) most urgently:

Generate an overall non-proactive rehabilitation/replacement need list across

all assets based on asset LOSRs. Calculate a risk rating for each asset identified on the overall non-proactive

rehabilitation/rehabilitation need list. Order the assets identified on the overall non-proactive

rehabilitation/replacement need list from highest to lowest associated risk

rating. Compile a top 100 non-proactive rehabilitation/replacement priority list

based on the ordered data.

The number of non-proactive rehabilitation/replacement activities undertaken by

the Corporation in a given year is contingent on available funding and budget

allocations.

Financial Scenario Projections

Financial scenario projections are an analysis tool used by Corporation staff in order

to predict the future rehabilitation and replacement needs of City owned assets

based on various funding levels, division budget allocations, and asset budget

allocations.

The term division budget allocation refers to the portion of the total capital budget

that is allocated to a specific corporate division, whereas the term asset budget

allocation refers to the portion of a total division budget that is allocated to a

specific asset category.

Table 2 provides a description of the various funding projection scenarios explored

within the Corporate AMP.


Page 82 of 94


January 24, 2017

Page 25

Table 2: Summary of Funding Scenarios.

Scenario # 1: Current Levels and Allocations

Budget/Allocation Description

Corporate Budget 2017 capital funding levels maintained over 20 years.

Division Allocation 2017 allocations maintained over 20 years.

Asset Allocation 2017 allocations maintained over 20 years.

Scenario # 2: Division Inter-Asset Re-Allocation



Division Allocation 2017 allocations maintained over 20 years.

Asset Allocation Allocations redistributed based on need.

Scenario # 3: Inter-Divisional Re-Allocation



Division Allocation Allocations re-distributed based on need.

Asset Allocation Allocations re-distributed based on need.

Scenario # 4: Immediate Corporate Budget Increase


Corporate Budget Capital funding levels increased immediately and held.



Scenario # 5: Incremental Corporate Budget Increase


Corporate Budget Capital funding levels increased incrementally.



Figure 9 provides an overview of the development and results of financial scenario

projections.


Page 83 of 94


January 24, 2017

Page 26

Division Deficits Asset Deficits Corporate Deficit

20-Year Non-Proactive

Rehabilitation/Replacement

Funding Deficit

20-Year Proactive

Rehabilitation Funding Deficit

Outstanding Non-Proactive

Rehabilitation/Replacement

Needs over Time

Outstanding Proactive

Rehabilitation Needs over Time

Asset Budget Allocations

COMPARISON

Asset Age &

Design Life

Asset Level of Service over Time

Asset Condition

Rating

Division Budget Allocations

Corporate Budget

Proactive Rehabilitation Needs

over Time

Non-Proactive Rehabilitation/

Replacement Needs over Time

20-YEAR BUDGET DEFICITS

Negative Performance

Statistics

Figure 9: Overview of the Financial Scenario Projection Analysis Process.


Page 84 of 94


January 24, 2017

Page 27

Implementation

Recommendations

Based on in-depth analyses of the results of the five funding scenario projections

explored in the Corporate AMP, the Finance Department will present one or more of

the following recommendations to the City of Sarnia Council:

Re-allocate the amount of capital funding provided to specific assets within

the City’s divisions. Re-allocate the amount of capital funding provided to specific divisions within

the Corporation.

Explore additional funding sources in order to increase the corporate capital budget.

The City of Sarnia Corporate Budget

Upon approval from the City of Sarnia Council, changes to the City’s budgets and

allocations will be made accordingly based on the results of the Corporate AMP

process.

Departmental Budgets

Upon approval from the City of Sarnia Council, each division within the Corporation

will review and make changes to the amount of funding allocated to their various

asset types as necessary.

Departmental 10-Year Capital Plans

In the development of their 10-year capital plans, each division within the

Corporation will make capital project recommendations based on the top 100

proactive rehabilitation and non-proactive rehabilitation/replacement need lists

generated by the Corporate AMP process, unless otherwise specified by the City of

Sarnia Council.

Other Plans

Upon approval from the City of Sarnia Council, amendments will be made to the

Corporation’s Official Plan, Strategic Plan, and Sustainability Plan in order to reflect

the results of the Corporate AMP.


Page 85 of 94


January 24, 2017

Page 28

Performance Measures

Division Performance

At the end of each fiscal year, each division director will be asked to complete a

Capital Project Summary Table as shown in Table 3 for each and every capital

project completed by his or her division that year.


Page 86 of 94


January 24, 2017

Page 29

Table 3: Capital Project Summary Table.

DIVISION NAME

Capital Project # 1

Capital Project Name: Name of the capital project.

Capital Project Description: Description of the capital project.

Council Approval: Yes or No.

If No, Explain: Provide explanation for previous 'no' response.

Project Classification: Proactive Rehabilitation, Non-Proactive Rehabilitation, Replacement, or New Asset.

Asset Management Plan Ranking: A number between 1 and 100 or Not Applicable.

If Not Applicable, Explain: Provide explanation for previous 'Not

Applicable' response.

External Funding Source: Name of external funding source and/or

funding program name, if applicable.

External Funding Amount: External funding amount, if applicable.

Capital Expenditure: Project cost paid by the Corporation, including the non-rebateable portion of HST.

Total Project Cost: Total project cost, including the non-rebateable portion of HST.

Capital Project # 2

Repeat all rows above for each subsequent capital project.

DIVISION SUMMARY

Total Number of Capital Projects: Provide the total number of capital projects as reported in previous sections of this table.

Total Capital Project Value: Provide the total value of all of the capital projects as reported in previous sections of this

table.

Remaining Capital Budget:

Provide the amount of the total capital budget

that remains after the completion of all capital projects.

If greater than $50,000, Explain: Provide explanation for remaining capital budget amount.

Percentage of Capital Projects with Asset Management

Rankings:

Provide the percentage of the total number of capital projects that were specified as having

an asset management ranking.

Percent Reduction in Proactive Rehabilitation Need:

Provide the percent reduction in the proactive

rehabilitation need resulting from the completion of the capital projects.

Percent Reduction in Non-

Proactive Rehabilitation/ Replacement Need:

Provide the percent reduction in the non-proactive rehabilitation/replacement need resulting from the completion of the capital

projects.


Page 87 of 94


January 24, 2017

Page 30

The Capital Summary Table from each division director will be reviewed and

discussed by the Council AMC and Staff AMC annually in an open discussion

meeting.

Generally speaking, good division performance will be characterized by the

following:

A large percentage of capital projects with asset management rankings. A relatively significant percent reduction in the divisional proactive and/or

non-proactive rehabilitation/replacement needs.

An insignificant amount of remaining capital budget (unless specifically committed to a larger future rehabilitation project).

Specific values pertaining to division performance (percent reduction in proactive

and non-proactive/replacement needs) will be assigned by the Council AMC and

Staff AMC in an open discussion meeting.

Budget Allocation Performance

At budget time, Finance Department staff will be asked to complete a Capital

Budget Allocation Table as shown in Table 4 for each division of the Corporation.

Table 4: Capital Budget Allocation Table.

Division Name Proposed Capital

Budget Allocation ($)

Percentage of Total Need

As Reported in Division AMP (%)

Transit # #

Engineering # #

Public Works # #

Corporate Services # #

Parks and Recreation # #

Police # #

Fire and Rescue # #

Service Buildings # #

Totals # -

The Capital Budget Allocation Table will be reviewed and discussed by the Council

AMC and Staff AMC annually in an open discussion meeting prior to the approval of

yearly division capital budgets.

Generally speaking, good budget allocation performance will be characterized by an

even distribution of capital based on the percentage of total need; that is,

equivalent Percentages of Total Need (column 3 in Table 4) should be allocated to

each division each year (100/8 divisions = 12.5% each).


Page 88 of 94


January 24, 2017

Page 31

Budget Performance

At the end of each year, the total percent reduction in both division and corporate

wide need (both proactive and non-proactive) will be calculated.

Generally speaking, good budget performance will be characterized by a positive

reduction in both division and corporate wide needs.

Data Processing

In 2015, the Corporation purchased a comprehensive asset management software

package from WorkTech Incorporated. The implementation of the WorkTech

software is currently underway and is expected to be complete by September 2017.

The information and results presented in the 2017 Corporate AMP were generated

in a collection of Microsoft Excel books referred to as the 2017 Integrated Analysis

Engine (2017 IAE). An overview of the 2017 IAE data processes is provided in

Figure 10.


Page 89 of 94


January 24, 2017

Page 32

INVENTORY DATA INPUTS

GIS Inventory Data

Works Management System Data 2017 Asset Unit Rates Condition Assessment Data

Age/Material Deterioration Curves Asset Performance Statistics

DATA PROCESS LEVEL 1

Current Asset Replacement Values

Current Asset Condition Ratings

Current Level of Service Ratings

Lifecycle Analysis


Graphs, Figures, and Tables

Proactive Rehabilitation Needs

Non-Proactive

Rehabilitation/Replacement Needs


Asset Probability of Failure

Asset Consequence of Failure

Risk Analysis

INVENTORY DATA OUTPUT

Prioritized Proactive Rehabilitation

Needs

Prioritized Non-Proactive

Rehabilitation/Replacement Needs

FINANCIAL INPUTS

2017 Corporate Budget

2017 Division Allocation

2017 Asset Allocation

FINANCIAL PROCESS LEVEL 1

20-Year Financial Projection

at Current Budget Levels &

Allocations


with Re-Allocation of Division

Budgets


with Corporate Budget

Increase

FINANCIAL OUTPUT

Projected Deficits at Current

Budgets Levels and

Allocations

Projected Deficits with Re-

Allocation of Division Budgets

Projected Deficits with

Corporate Budget Increase

Figure 10: Overview of the 2017 Integrated Analysis Engine Data Processes.


Page 90 of 94


January 24, 2017

Page 33

The Sarnia Asset Management Process

The Sarnia Asset Management Process (SAM process), as detailed in the preceding

sections of this document, has been standardized across all the divisions within the

Corporation. The standardization of the SAM process allows Corporation staff to

more easily analyze and compare the needs and risks associated with various types

of assets across the different divisions within the Corporation. Figure 11 provides a

high-level overview of the SAM process.


Page 91 of 94


January 24, 2017

Page 34

Official Plan

Corporate

Capital Budget

The Sarnia

GIS

Database

Condition

Rating

Criteria

Physical Attribute

Data Collection

(GPS, As-Built

Drawings, and

Historical Records)

WorkTech Software/

2017 Integrated

Analysis Engine

Desired

Service

Levels

Operational/

Works Management

System Data

(Breaks, Collapses, &

Customer Complaints)

DIVISION ASSET

MANAGEMENT

PLANS

Sustainability Plan

Asset Capacities

(Usage Statistics,

Customer Surveys,

Studies, and

Computer Modelling)

Performance

Reporting

Division Capital

Plans

Condition

Assessments

(By Consultants and

Qualified Staff as

Required)

Age/Material

Deterioration

Curves

(Research

2017 Asset

Unit Rates

CORPORATE ASSET

MANAGEMENT PLAN

Corporate

Capital Plan

Corporate Revenues

(Water & Sewer Rates, Property Taxes, & Others)

Strategic Plan

Level of

Service

Criteria

Figure 11: Overview of the Sarnia Asset Management Process.


Page 92 of 94


January 24, 2017

Page 35

Timeline

Figure 12 provides an overview of the timeline associated with the completion and

implementation of the Corporate AMP, pending approval from the City of Sarnia

Council.

Figure 12: Overview of the Corporate AMP Implementation Timeline.

Updated 2017 Core Linear Infrastructure AMP published. 15/12/2017

2019 Corporate AMP published. 1/1/2019

Corporate AMP review process initiated. 15/1/2019

Corporate AMP results incorporated into division capital plans. 15/3/2019

Corporate AMP results incorporated into the 2020 Corporate

Capital Budget.

15/09/2019

2021 Complete Corporate AMP published. 1/1/2021

2020 capital projects selected based on updated capital plans. 15/4/2019

On-going inventory and condition assessment data collection

processes.

1/1/2017

Draft of the 2019 Corporate AMP including the Transit,

Engineering, and Parks and Recreation AMPs submitted

to the Sarnia Council for review and approval.

15/9/2018

Corporate AMP results incorporated into Corporate Capital Plan. 1/6/2019

2020 Corporate AMP published. 1/1/2020


Page 93 of 94


January 24, 2017

Page 36

Glossary

Acronyms

AF - Attribute factor, (page 21). AFavg - Average attribute factor, (page 21).

AFsocial - Social attribute factor, (page 21). AFeconomic - Economic attribute factor, (page 21). AFenvironmental - Environmental attribute factor, (page 21).

AMP - Asset Management Plan, (page 5). Building Together - Building Together: Guide for Municipal Asset

Management Plans, (page 6). CLOS - Current level of service, (page 10). COF - Consequence of failure, (page 19).

CR - Condition rating, (page 8). CR ranges - Condition rating ranges, (page 8).

Corporate AMP - Corporate Asset Management Plan, (page 1). Council AMC - Council Asset Management Committee, (page 15).

DLOS - Desired level of service, (page 10). GIS - Geographic Information System, (page 16). GPS - Global Positioning System, (page 16).

IWF – Impact weightage factor, (page 20). IWFeconomic - Economic impact weightage factor, (page 20).

IWFenvironmental - Environmental impact weightage factor, (page 20). IWFsocial - Social impact weightage factor, (page 20). LOS - level of service, (page 9).

LOSR - Level of service rating, (page 9). LOSR ranges - Level of service rating ranges, (page 10).

NPS - negative performance statistic, (page 9). POF - Probability of failure, (page 19). SAM - Sarnia Asset Management Process, (page 30).

Sarnia - the City of Sarnia, (page 4). Sarnia GIS - Sarnia’s Geographic Information System, (page 16).

Staff AMC - Staff Asset Management Committee, (page 15). The City - the City of Sarnia, (page 4). The Corporation - the Corporation of the City of Sarnia, (page 5).

2017 IAE - 2017 Integrated Analysis Engine, (page 23).


Page 94 of 94