Town of Whitby. Service Area Asset Management Plan. Fleet DECEMBER 2017 ASSET HEALTH GRADE FINANCIAL CAPACITY GRADE KEY PERFORMANCE INDICATOR

Transcription

1 Town of Whitby Service Area Asset Management Plan Fleet DECEMBER 2017 ASSET HEALTH GRADE B FINANCIAL CAPACITY GRADE C KEY PERFORMANCE INDICATOR =

2 Contents Executive Summary 6 1. Introduction What is Asset Management? Goals of the Municipality Asset Management Vision Asset Management Objectives Purpose of the SAAMP Contents of the SAAMP Growth and Demand State of Local Infrastructure Asset Hierarchy Asset Inventory Replacement Cost Valuation Asset Condition and Remaining Useful Life Asset Condition Distribution Infrastructure Report Card Asset Age Installation Profile: Infrastructure Investment in Whitby Useful Life Consumption Levels of Service Overview of Performance Management Risk Management & Prioritization Project Prioritization Key Performance Indicators and Targets Future Performance Monitoring, Updating and Actions Non-Infrastructure Solutions and Requirements Asset Maintenance & Renewal Strategies Condition Assessment Programs Lifecycle Framework Monitoring, Updating and Action Financial Strategy General Overview of Financial Plan Requirements 75 2

3 5.2 Current Financial Profile Forecasting Replacement Needs Financial Sustainability Recommendations Appendix: Condition Rating Scale 93 List of Tables Table 1-1 Contents of the SAAMP 13 Table 2-1 Asset Inventory 19 Table 2-2 Estimated 2017 Asset Valuation by Component 22 Table 2-3 Infrastructure Report Card Asset Health Grading Scale 29 Table 2-4 Infrastructure Report Card - Asset Health 30 Table 2-5 Asset Useful Life in Years 31 Table 3-1 Consequence of Failure 52 Table 3-2 Probability of Failure 53 Table 3-3 Key Performance Indicators (KPIs) 65 Table 4-1 Lifecycle Activities - Fleet: Lawn Care and Forestry 69 Table 4-2 Lifecycle Activities - Fleet: Shop Equipment 69 Table 4-3 Lifecycle Activities - Fleet: Snow Equipment 70 Table 4-4 Lifecycle Activities - Fleet: Refuse Trucks 70 Table 4-5 Lifecycle Activities - Fleet: Trailers 70 Table 4-6 Lifecycle Activities - Fleet: Construction 71 Table 4-7 Lifecycle Activities - Fleet: Arena Equipment 72 Table 4-8 Lifecycle Activities - Fleet: Fire Trucks 72 Table 4-9 Lifecycle Activities - Fleet: Passenger (Pickups, Cars, SUV, Van) 72 Table 5-1 Total Capital Requirements by Asset Class 78 Table 5-2 Average Annual Capital Requirements by Asset Class 79 Table 5-3 Financial Capacity Grading Scale 91 List of Figures Figure 1-1 Distribution of Net Stock of Core Public Infrastructure 8 Figure 1-2 Asset Portfolio by Service Area Based on 2017 Replacement Value 9 Figure 1-3 Whitby's Population Trend 14 Figure 2-1 Asset Hierarchy and Breakdown 16 Figure 2-2 Fleet Asset Hierarchy (Continued) 17 Figure 2-3 Fleet Asset Hierarchy (Continued) 18 Figure 2-4 Estimate 2016 Asset Valuation by Level 3 21 Figure 2-5 Fleet Replacement Values Per Household Figure 2-6 Condition Distribution All Fleet Assets 24 3

4 Figure 2-7 Asset Condition Arena Equipment 24 Figure 2-8 Asset Condition Construction Equipment 25 Figure 2-9 Asset Condition Fire Trucks 25 Figure 2-10 Asset Condition Garage & Shop Equipment 26 Figure 2-11 Asset Condition Lawn Care & Forestry 26 Figure 2-12 Asset Condition Passenger Vehicles 27 Figure 2-13 Asset Condition - Refuse Trucks 27 Figure 2-14 Asset Condition - Snow Equipment 28 Figure 2-15 Asset Condition - Trailers 28 Figure 2-16 Aggregate Installation Profile 33 Figure 2-17 Asset Installation Profile Arena Equipment 34 Figure 2-18 Asset Installation Profile Construction Equipment 35 Figure 2-19 Asset Installation Profile Fire Trucks 36 Figure 2-20 Asset Installation Profile Garage & Shop Equipment 37 Figure 2-21 Asset Installation Profile Lawn Care & Forestry 38 Figure 2-22 Asset Installation Profile Passenger Vehicles 39 Figure 2-23 Asset Installation Profile - Refuse Trucks 40 Figure 2-24 Asset Installation Profile - Snow Equipment 41 Figure 2-25 Asset Installation Profile - Trailers 42 Figure 2-26 Aggregate Useful Life Consumption - All Fleet Assets 43 Figure 2-27 Useful Life Consumption Arena Equipment 44 Figure 2-28 Useful Life Consumption Construction Equipment 44 Figure 2-29 Useful Life Consumption Fire Trucks 45 Figure 2-30 Useful Life Consumption Garage & Shop Equipment 45 Figure 2-31 Useful Life Consumption Lawn Care & Forestry 46 Figure 2-32 Useful Life Consumption Passenger Vehicles 46 Figure 2-33 Useful Life Consumption - Refuse Trucks 47 Figure 2-34 Useful Life Consumption - Snow Equipment 47 Figure 2-35 Useful Life Consumption - Trailers 48 Figure 3-1 Risk Factors and Consequence of Failure 51 Figure 3-2 Risk Prioritization Matrix 54 Figure 3-3 Aggregate Risk Matrix All Fleet Assets 55 Figure 3-4 Risk Matrix Arena Equipment 56 Figure 3-5 Risk Matrix Construction Equipment 57 Figure 3-6 Risk Matrix Fire Trucks 58 Figure 3-7 Risk Matrix Garage & Shop Equipment 59 Figure 3-8 Risk Matrix Lawn Care & Forestry 60 Figure 3-9 Risk Matrix Passenger Vehicles 61 Figure 3-10 Risk Matrix Refuse Trucks 62 Figure 3-11 Risk Matrix Snow Equipment 63 Figure 3-12 Risk Matrix Trailers 64 4

5 Figure 5-1 Cost Elements 76 Figure 5-2 Forecasting Aggregate Replacement Needs 80 Figure 5-3 Forecasting Replacement Needs Arena Equipment 81 Figure 5-4 Forecasting Replacement Needs Construction Equipment 82 Figure 5-5 Forecasting Replacement Needs Fire Trucks 83 Figure 5-6 Forecasting Replacement Needs Garage & Shop Equipment 84 Figure 5-7 Forecasting Replacement Needs - Lawn Care Forestry 85 Figure 5-8 Forecasting Replacement Needs Passenger Vehicles 86 Figure 5-9 Forecasting Replacement Needs Refuse Trucks 87 Figure 5-10 Forecasting Replacement Needs Snow Equipment 88 Figure 5-11 Forecasting Replacement Needs Trailers 89 5

6 Executive Summary Infrastructure is directly linked to the economic, social and environmental advancement of a community. Municipalities own and manage nearly 60% of the public infrastructure stock in Canada. The Town of Whitby s infrastructure portfolio comprises seven distinct Service Areas: Road Right-of-Way, Facilities, Fire, Municipal Information Systems (MIS) Equipment, Parks, Library Resource and Fleet. Together, these assets have a total valuation of approximately $2 billion, with Fleet comprising $34.7 million of this portfolio. Strategic asset management is critical in extracting the highest total value from public assets at the lowest lifecycle cost. In this regard, the Town of Whitby has developed a Service Area Asset Management Plan (SAAMP) for each of its seven asset categories. This SAAMP details the state of infrastructure of the Town s Fleet Service Area and provides asset management and financial strategies designed to facilitate the Town s pursuit of developing an advanced asset management program and mitigate long-term funding gaps. The Town has provided observed data for Fleet assets. Based on replacement cost, nearly 60% of the municipality s fleet assets are in good to very good condition, based on observed data and replacement cost. However, approximately 13%, with a valuation of $4 million, is in poor condition. As such, an Asset Health Grade of B has been assigned to the Fleet assets. The Asset Health Grade is a snapshot in time (December 31, 2016) and does not look at future asset assumptions or future funding needs to continue to adequately maintain our assets. It is also important to note that the Asset Health Grade is an average of all the Service Area s assets, and some individual assets have a condition higher or lower than what the average grade indicates. While current asset health is an imperative indicator of the Town s asset management maturity, equally important is the municipality s ability to fund the long-term replacement needs of each of its asset classes. The average annual investment requirement for Whitby s Fleet assets is $4,227,633. Annual revenue currently allocated to these assets for capital purposes is $2,065,060. As such the Town is not sustainably funding its annual requirements. As a result, the municipality received a C for its financial sustainability grade. Whitby currently has in place a robust condition assessment program and detailed condition rating scales for its Fleet classes. This is a vital component of a sustainable asset management program, and we recommend its continuation with a portion of capital funding dedicated to the initiative. Establishment of a risk prioritization framework will further augment the Town s ability to prioritize future projects related to Fleet, and more optimally allocate available funding. The Town should review on an annual basis its levels of service (LOS) and condition-related key performance indicators (KPIs). The LOS and KPIs should reflect the short- and long-term demand that will be placed on the 6

7 infrastructure. This is the Town s second SAAMP for its Fleet assets. The Town should continue to update this report on an annual basis. This SAAMP is a living document and will continually be updated and built upon. To ensure that future versions are meaningful documents that support the Town s ability to continue to build a strong asset management program, the following items are recommended: 1. The municipality continue its robust Fleet condition assessment program and that a portion of capital funding is dedicated to this. Research should be conducted to investigate available preventative maintenance techniques with pilot projects to test their effectiveness. 2. The Town should update its SAAMP on an annual basis. 3. The Town should undertake a cost-benefit analysis for the selling-off of fleet assets to maximize the resale value while minimizing overall maintenance costs. 4. The Town should continue to investigate alternative vehicles to service new infrastructure needs and perform jobs which current vehicles cannot efficiently service. 5. The Town should include in its asset inventory the tasks that each asset performs to account for any cost savings made available by retiring and selling certain fleet assets should their use prove unnecessary in the future. 6. The Town should investigate and develop other rehabilitation strategies. 7

8 1. Introduction Ontario s municipalities own more of the province s infrastructure assets than both the provincial and federal government combined. Across Canada, the municipal share of public infrastructure increased from 22% in 1955 to nearly 60% in Figure 1-1 Distribution of Net Stock of Core Public Infrastructure Provincial, $158.4B 41% Municipal, $216.9B 57% Federal, $6.7B 2% Total: $382B Year: 2013 The asset portfolios managed by Ontario s municipalities are also highly diverse. The Town of Whitby owns approximately $2 billion of these public assets in seven distinct Service Areas: 1. Road Right-of-Way 2. Facilities 3. Fire 4. Municipal Information Systems (MIS) Equipment 5. Parks 6. Library Resources 7. Fleet Figure 1-2 illustrates the breakdown of the Town s asset portfolio by Service Area. 8

9 Figure 1-2 Asset Portfolio by Service Area Based on 2017 Replacement Value Facilities $366.2 M 18.7% Road Right of Way $1,471.5 M 75.0% Parks $72.3 M 3.7% Library Resources $10.7 M 0.5% Fire $4.1 M 0.2% Fleet $34.7 M 1% MIS Equipment $2.9 M 0.1% Refuse Trucks $6.3 M 0.3% Construction Equipment $7.7 M 0.4% Passenger Vehicles $2.8 M 0.1% Fire Trucks $11.3 M 0.6% Lawn Care & Forestry $2.7 M 0.1% Snow Equipment $2.2 M 0.1% Arena Equipment.9 M 0.0% Trailers.5 M 0.0% Garage & Shop Equipment.3 M 0.0% 9

10 Whitby relies on these assets to provide residents, businesses, employees and visitors with safe access to important services, such as transportation, recreation, culture, economic development and much more. As such, it is critical that the Town manage these assets by making the right decisions, at the right time, for the right reasons, and for the right costs. This Municipal Asset Management Plan (MAMP) will assist the municipality in this pursuit of judicious asset management for its seven service areas. 1.1 What is Asset Management? Asset Management (AM) can be best defined as an integrated business approach within an organization that sustainably manages the lifecycle costs of owning, operating, and maintaining assets, at an acceptable level of risk, while continuously delivering expected levels of service for present and future customers. AM includes the planning, design, construction, operation and maintenance of infrastructure used to provide services. Infrastructure needs can be prioritized over time by utilizing AM processes, while also ensuring timely investments to minimize repair and rehabilitation costs and maintain municipal assets. Asset Management establishes an evidence-based framework for sustainable financial management of municipal assets and empowers municipalities to plan for future needs with respect to growth. Key questions municipalities must ask themselves today as they develop their AMPs and programs are the following: What is the asset worth? What is the asset s condition and expected remaining service life? What is the level of service expectation, and what needs to be done? When do you need to do the preventative maintenance, rehabilitation, or replacement? How much will the remedial works cost and what is the acceptable level of risk(s)? What are the overall life cycle needs and costs? What are the long-term sustainable financing needs? 1.2 Goals of the Municipality The Goals of Whitby Council lists specific objectives that contribute to the vision of an inclusive, thriving and sustainable community. Asset Management is related to four of the goals: 3. To continue the Whitby tradition of responsible financial management and respect for taxpayers; and to understand the importance of affordability to a healthy, balanced community. 4. To ensure Whitby is clearly seen by all stakeholders to be business- and investment-friendly and supportive; and to strive to continuously improve the effectiveness and efficiency of service delivery. 10

11 7. To remain the community of choice for families and become the community of choice for seniors and job creators; and to focus new growth around the principles of strong, walkable and complete neighbourhoods that offer mobility choices. Achievement of these objectives depends on a wide range of assets that support the Town s services, including transportation, parking, solid waste collections, fire protection, parks, recreation and culture. Delivery of these services depends on the availability of suitable and reliable infrastructure assets. Maintaining, renewing, expanding and disposing of these assets can be costly, so it is essential to understand what level of service is required by the community, and how different asset maintenance and capital improvement strategies will impact the service delivered. Through increased understanding of how infrastructure assets and management of those assets affects its services, the Town will be able to more efficiently deliver services and achieve its vision of being a Community of Choice. 1.3 Asset Management Vision The Town of Whitby s Asset Management vision is: Providing the framework for responsibly managing all Town owned infrastructure Asset Management Objectives The Town works as a collaborative team to comprehensively and consistently undertake the following objectives for all Town owned assets. These asset management objectives help to inform the implementation of the Town s asset management vision: Inventory: Capture all asset types, inventories and historical data. Current Valuation: Calculate current condition ratings and replacement values. Life Cycle Analysis: Identify Maintenance and Renewal Strategies & Life Cycle Costs. Service Level Targets: Define measurable Levels of Service Targets Risk & Prioritization: Integrates all asset categories through risk and prioritization strategies. Sustainable Financing: Identify sustainable Financing Strategies for all asset categories. Continuous Processes: Provide continuous processes to ensure asset information is kept current and accurate. Decision Making & Transparency: Integrate asset management information into all corporate purchases, acquisitions and assumptions. Monitoring & Reporting: At defined intervals, assess the assets and report on progress and performance. 1.4 Purpose of the SAAMP This SAAMP is one component of the Town of Whitby s overarching Municipal Asset Management Plan (MAMP) and was developed to support the Town s strategic vision for its asset management practice and programs. It provides key asset attribute data, 11

12 including current composition, inventory, useful life etc., summarizes the physical health of the capital assets in its Fleet Service Area, assess the Town s current capital spending framework, and enumerates financial strategies to achieve infrastructure sustainability in the long-term and mitigate any funding gaps. 1.5 Contents of the SAAMP This Service Area Asset Management Plan focuses on Fleet, one of the seven Service Areas managed by the Town. For discussion, and analysis purposes, the Fleet Service Area has been broken down into the following Primary Asset Categories: 1. Passenger Vehicles 2. Construction Equipment 3. Trailers 4. Fire Trucks 5. Lawn Care & Forestry 6. Refuse Trucks 7. Arena Equipment 8. Snow Equipment 9. Garage & Shop Equipment This SAAMP is developed in accordance with the Province of Ontario s Building Together: Guide for Municipal Asset Management Plans and includes the following core components: 12

13 Table 1-1 Contents of the SAAMP # Section Title Description 1 Introduction 2 State of Existing Infrastructure 3 Levels of Service Explains how the goals of the municipality are dependent on infrastructure, and clarifies the relationship of the MAMP to municipal planning and financial documents. Summarizes the asset hierarchy, inventory, valuation, age distribution and condition. Also discusses how and when information regarding the characteristics, value, and condition of assets will be updated. Defines levels of service through performance indicators and targets, and outlines current performance. Describes external trends or issues that may affect expected levels of service. 4 Asset Maintenance and Renewal Strategies The asset maintenance and renewal strategies are the set of planned actions that will enable the assets to provide the desired levels of service in a sustainable way, while managing risk, and at the lowest life cycle cost. 5 Financial Plan 6 Recommendations Appendix A This section integrates asset management planning with financial planning and budgeting. Provides a summary of the state of the infrastructure, current level of service, and recommended asset management and funding strategies. Also summarizes recommendations for monitoring achievement of the AM objectives and for continuous improvement of the MAMP in future updates. Provides a summary of analytical assumptions used in the AM Plan, including benchmark costs, asset service lives, capital growth, etc. 1.6 Growth and Demand Growth is a critical infrastructure demand driver for most infrastructure services. As such, the municipality must not only account for the lifecycle cost for its existing asset portfolio, but those of any anticipated and forecasted capital projects associated specifically with growth. Whitby has experienced rapid population growth since 1980, and its infrastructure investments reflect this trend. The chart below shows how the population has evolved over time and the estimated growth increase for the next 15 years. While Whitby s population growth rate has decreased since the mid-2000s, the forecasts used by the municipality anticipate a second wave of rapid population increase, with an expected population of 193,000 by 2031, an increase of approximately 50% from its 2013 population of 130,

14 Figure 1-3 Whitby's Population Trend Replacement Value ($Billions) , ,698 Dec. 31st, , , , , , , , , ,000 80,000 60,000 40,000 20,000 Town of Whitby Population Facilities Fire Fleet Library Resources MIS Equipment Parks Road ROW Projected Infrastructure value Time Period 14

15 2. State of Local Infrastructure In this section, we summarize key elements of the Town s Fleet services portfolio. This includes a detailed outline of the Town s asset inventory and the condition of assets. When observed data was not available, we relied on the age of the assets to approximate their conditions. 15

16 2.1 Asset Hierarchy The asset hierarchy illustrates the relationship of individual assets and their components to a wider, more expansive network and system, with the Town of Whitby as Level 1 in the hierarchy. Each level provides greater detail. Figure 2-1 Asset Hierarchy and Breakdown Level 2 Service Fleet Level 3 Asset Class Passenger Vehicles Level 4 Asset Type Cars Pick-up Trucks SUVs Vans Construction Equipment Dump Trucks Loader Backhoe Gradeall Mobile Compressor Motor Grader Cement Mixer Grader Street Sweeper Street Flusher Vacuum Truck Water Tanker Asphalt Roller Pavement Grinder Pavement Marker Hot Patcher bext tg Tanker Trucks 16

17 Figure 2-2 Fleet Asset Hierarchy (Continued) Level 2 Service Fleet Continued Level 3 Asset Class Trailers Level 4 Asset Type Boat Trailers Paint Trailer Ice Painting Trailer Utility Trailers Water Tanker Trailers Fire Trucks Aerial Trucks Pumper Trucks Rescue Trucks Squirt Trucks Tanker Trucks Lawn Care and Forestry Litter Truck Chipper Truck Tractors Mowers Turf Care Machines Refuse Trucks Side-loader Rear-loader Next tg 17

18 Figure 2-3 Fleet Asset Hierarchy (Continued) Level 2 Service Fleet Continued Level 3 Asset Class Arena Equipment Level 4 Asset Type Zamboni Ice Edger Snow Equipment Snow Plow Truck Sidewalk Machines Plows Sanders Snow Blowers Snow Throwers Garage & Shop Equipment Hoist A/C Machine Overhead Crane Blade Sharpener Fuel Pump Drill Press Compressor Sweeper/Scrubber Saws 18

19 2.2 Asset Inventory Whitby s Fleet state of the infrastructure analysis includes the following Level 3 assets: 1. Passenger Vehicles 2. Construction Equipment 3. Trailers 4. Fire Trucks 5. Lawn Care & Forestry 6. Refuse Trucks 7. Arena Equipment 8. Snow Equipment 9. Garage & Shop Equipment Table 2-1 details the Town s inventory for its Fleet Service Area at the component level. Table 2-1 Asset Inventory Service Current Asset Class Asset Type Area Quantity Quantity Quantity Fleet Passenger Vehicles Cars Fleet Passenger Vehicles Pick-up Trucks Fleet Passenger Vehicles SUVs Fleet Passenger Vehicles Vans Fleet Construction Equipment Dump Trucks Fleet Construction Equipment Loader Fleet Construction Equipment Gradeall Fleet Construction Equipment Backhoe Fleet Fleet Construction Equipment Construction Equipment Mobile Compressor Cement Mixer Fleet Construction Equipment Grader Fleet Construction Equipment Street Sweeper Fleet Construction Equipment Street Flusher Fleet Construction Equipment Vacuum Truck Fleet Construction Equipment Pavement Grinder Fleet Construction Equipment Hot Patcher Fleet Construction Equipment Utility Fleet Trailers Boat Trailers Fleet Trailers Paint Trailer Fleet Trailers Ice Painting Trailer Fleet Trailers Utility Trailers Fleet Trailers Water Tanker Trailers

20 Service Current Asset Class Asset Type Area Quantity Quantity Quantity Fleet Fire Trucks Aerial Trucks Fleet Fire Trucks Pumper Trucks Fleet Fire Trucks Rescue Trucks Fleet Fire Trucks Tanker Trucks Fleet Lawn Care & Forestry Litter Truck Fleet Lawn Care & Forestry Chipper Truck Fleet Lawn Care & Forestry Tractors Fleet Lawn Care & Forestry Mowers Fleet Lawn Care & Forestry Turf Care Machines Fleet Refuse Trucks Side-loader Fleet Refuse Trucks Rear-loader Fleet Refuse Trucks Hooklift Fleet Arena Equipment Zamboni Fleet Arena Equipment Ice Edger Fleet Snow Equipment Sidewalk Machines Fleet Snow Equipment Sanders Fleet Snow Equipment Snow Blowers Fleet Garage & Shop Equipment Hoist Fleet Garage & Shop Equipment A/C Machine Fleet Garage & Shop Equipment Overhead Crane Fleet Garage & Shop Equipment Blade Sharpener Fleet Garage & Shop Equipment Fuel Pump Fleet Garage & Shop Equipment Drill Press Fleet Garage & Shop Equipment Compressor Fleet Garage & Shop Equipment Sweeper/Scrubber Fleet Garage & Shop Equipment Saws

21 2.3 Replacement Cost Valuation Replacement values determined using unit costs for individual asset components will yield more reliable estimates of current market prices. However, in the absence of this detail, the historical costs were inflated to The Town has provided user-defined replacement costs for Fire Trucks, Refuse Trucks, Arena Equipment. The estimated replacement value totalled approximately $34.5 million for Whitby s Fleet portfolio. The total cost per household is approximately $758 using 45,772 households. In this section, we detail the replacement value of all Fleet assets by asset class. Figure 2-4 Estimate 2016 Asset Valuation by Level 3 Total: $34,481,967 Refuse Trucks $6,295, % Construction Equipment $7,730, % Passenger Vehicles $2,768, % Fire Trucks $11,300, % Lawn Care & Forestry $2,431, % Snow Equipment $2,315, % Arena Equipment $936, % Trailers $446, % Garage & Shop Equipment $258, % Figure 2-5 Fleet Replacement Values Per Household $- $100 $200 $300 $400 $500 $600 $700 $800 Fleet Total Fire Trucks Construction Equipment Refuse Trucks Passenger Vehicles Lawn Care & Forestry Snow Equipment Arena Equipment Trailers Garage & Shop Equipment $60 $59 $49 $20 $10 $6 $247 $169 $138 $758 21

22 Table 2-2 Estimated 2017 Asset Valuation by Component Service Area Asset Class Asset Type 2016 Overall Replacement Cost Fleet Arena Equipment Ice Edger $36,000 Fleet Arena Equipment Ice resurfacer $900,000 Fleet Construction Equipment Backhoe $135,000 Fleet Construction Equipment Cement Mixer $10,000 Fleet Construction Equipment Dump Trucks $4,863,174 Fleet Construction Equipment Gradall $350,000 Fleet Construction Equipment Grader $200,000 Fleet Construction Equipment Hot Patcher $155,000 Fleet Construction Equipment Loader $506,000 Fleet Construction Equipment Mobile Compressor $40,000 Fleet Construction Equipment Pavement Grinder $9,315 Fleet Construction Equipment Street Flusher $190,337 Fleet Construction Equipment Street Sweeper $546,000 Fleet Construction Equipment Utility $96,075 Fleet Construction Equipment Vacuum Truck $630,000 Fleet Fire Trucks Aerial $3,000,000 Fleet Fire Trucks Pumper $7,650,000 Fleet Fire Trucks Rescue $100,000 Fleet Fire Trucks Tanker Trucks $550,000 Fleet Garage & Shop Equipment A/C machine $3,000 Fleet Garage & Shop Equipment Blade Machine $3,000 Fleet Garage & Shop Equipment Compressor $40,000 Fleet Garage & Shop Equipment Drill Press $5,715 Fleet Garage & Shop Equipment Fuel Pump $19,500 Fleet Garage & Shop Equipment Hoist $99,136 Fleet Garage & Shop Equipment Overhead Crane $17,000 Fleet Garage & Shop Equipment Saw $798 Fleet Garage & Shop Equipment Sweeper Scrubber $65,000 Fleet Lawn Care & Forestry Chipper Truck $481,000 Fleet Lawn Care & Forestry Front Mount Mowers $463,500 Fleet Lawn Care & Forestry Litter Truck $320,000 Fleet Lawn Care & Forestry Push Mower $6,000 Fleet Lawn Care & Forestry Rotary Mower $482,000 Fleet Lawn Care & Forestry Tractor $320,000 Fleet Lawn Care & Forestry Turf Care Machines $614,854 Fleet Lawn Care & Forestry Turf Sweeper $9,500 Fleet Lawn Care & Forestry Turf Topper $20,000 Fleet Passenger Vehicles Cars $214,000 Fleet Passenger Vehicles Pick-up Trucks $1,647,000 Fleet Passenger Vehicles SUVs $271,000 Fleet Passenger Vehicles Vans $636,500 22

23 Service Area Asset Class Asset Type 2016 Overall Replacement Cost Fleet Refuse Trucks Hooklift $135,000 Fleet Refuse Trucks Rear Loader $720,000 Fleet Refuse Trucks Side Loader $5,440,000 Fleet Snow Equipment Sanders $24,000 Fleet Snow Equipment Sidewalk Machines $1,960,400 Fleet Snow Equipment Snow Blowers $223,496 Fleet Trailers Boat Trailer $90,000 Fleet Trailers Ice Painting Trailer $10,000 Fleet Trailers Paint Trailer $30,000 Fleet Trailers Utility Trailer $346,000 Fleet Trailers Water Trailer $60,000 Total $34,744, Asset Condition and Remaining Useful Life Understanding the current condition of the assets and their remaining useful life can provide the Town with a more complete picture of its infrastructure portfolio and upcoming short, medium and long-term needs. The Town has developed condition scales for its Fleet assets. These are provided in the Appendix Asset Condition Distribution This section provides detail on the physical condition of the Town of Whitby s Fleet assets. The Town has provided observed data for Fleet assets. Based on replacement cost, nearly 60% of the municipality s fleet assets are in good to Very Good condition, based on observed data and replacement cost. However, approximately 13%, with a valuation of $4 million, is in poor condition. The overall conditions of Fleet assets are shown in Figure 2-6 Condition Distribution All Fleet Assets. 23

24 Figure 2-6 Condition Distribution All Fleet Assets Total: $34,481,967 Fair $10,048,454 29% Poor $4,623,913 13% Good $9,961,700 29% Excellent $9,847,900 29% The following graphs illustrate the condition distribution of each of the Town s Fleet assets. At 48%, Garage and Shop Equipment had the largest portion of its assets in poor condition with a valuation of $124,500, while Construction Equipment had 28% in poor condition with a valuation of $2.2 million. Figure 2-7 Asset Condition Arena Equipment Total: $936,000 Fair $27,000 3% Poor $400,000 43% Good $509,000 54% 24

25 Figure 2-8 Asset Condition Construction Equipment Total: $7,730,901 Fair $1,363,514 18% Poor $2,158,945 28% Good $2,038,442 26% Excellent $2,170,000 28% Figure 2-9 Asset Condition Fire Trucks Total: $11,300,000 Good $1,700,000 15% Fair $4,700,000 42% Poor $850,000 7% Excellent $4,050,000 36% 25

26 Figure 2-10 Asset Condition Garage & Shop Equipment Total: $258,149 Poor $124,500 48% Fair $34,206 13% Good $91,443 36% Excellent $8,000 3% Figure 2-11 Asset Condition Lawn Care & Forestry Total: $2,431,694 Fair $559,368 23% Poor $377,484 16% Good $1,000,441 41% Excellent $494,400 20% 26

27 Figure 2-12 Asset Condition Passenger Vehicles Fair $460,000 17% Poor $452,500 16% Total: $2,768,500 Good $1,302,500 47% Excellent $553,500 20% Figure 2-13 Asset Condition - Refuse Trucks Total: $6,295,000 Fair $2,615,000 42% Good $2,160,000 34% Excellent $1,520,000 24% 27

28 Figure 2-14 Asset Condition - Snow Equipment Fair $189,010 8% Total: $2,315,148 Good $899,137 39% Poor $200,000 9% Excellent $1,027,000 44% Figure 2-15 Asset Condition - Trailers Total: $446,575 Fair $100,356 22% Poor $60,484 14% Good $260,735 58% Excellent $25,000 6% 28

29 2.4.2 Infrastructure Report Card The asset management plan is a complex document, but one with direct implications on the public, a group with varying degrees of technical knowledge. To facilitate communications, we have developed an Infrastructure Report Card that summarizes our findings in accessible language that municipalities can use for internal and external distribution. The report card is developed using two key, equally weighted factors: 1. Asset Health: As shown in Table 2-3, using either field inspection data as available or age-based data, the asset health provide a grades for each infrastructure class based on the portion of assets in poor to Very Good condition (0-100%). We use replacement cost to determine the weight of each condition group within the asset class. 2. Financial Sustainability: As shown in Table 5-2, a municipality s Financial Sustainability is determined by how well it is meeting the average annual investment requirements (0-100%) for each infrastructure class. Table 2-3 Infrastructure Report Card Asset Health Grading Scale Letter Grade Numerical Scale Rating Description A Very Good Asset is new or recently rehabilitated B Good C Fair D Poor F Very Poor Asset is no longer new, but is fulfilling its function. Preventative maintenance is beneficial at this stage. Deterioration is evident but asset continues to fulfill its function. Preventative maintenance is beneficial at this stage. Significant deterioration is evident and service is at risk. Asset is beyond expected life and has deteriorated to the point that it may no longer be fit to fulfill its function. 29

30 Table 2-4 Infrastructure Report Card - Asset Health Asset Class (Level 3) Arena Equipment Garage & Shop Equipment Trailers Lawn Care & Forestry Passenger Vehicles Snow Equipment Refuse Trucks Construction Equipment Fire Trucks Overall Service Area Grade Asset Health Grade B C B B B B B B B B Nearly 60% of the municipality s fleet assets are in good to Very Good condition, based on observed data and replacement cost. However, approximately 13% are in poor condition with a valuation of $4.6 million. At 48%, Garage and Shop Equipment had the largest portion of its assets in poor condition, while Construction Equipment had 28% in poor condition with a valuation of $2.2 million. The asset health grade for each asset class was derived using weighted average of its replacement cost according to the following equation: Asset Class Health Grade = ((5 * asset value in Very Good condition) + (4 * asset value in good condition) + (3 * asset value in fair condition) + (2 * asset value in poor condition) + (1 * asset value in very poor condition)) / total asset value. 30

31 2.5 Asset Age The useful life indicated for the asset types below was assigned by the municipality and obtained from the Town s GIS data and personal geodatabases. In conjunction with observed field data, the useful life values and the associated asset life stage can guide the maintenance, rehabilitation or replacement related activities of major assets. The data is presented in the following order to provide a comprehensive summary of Whitby s Fleet assets: Table 2-5 Asset Useful Life in Years Service Asset Class Asset Type Useful Life Fleet Passenger Vehicles Cars 10 Fleet Passenger Vehicles Pick-up Trucks 10 Fleet Passenger Vehicle SUVs 10 Fleet Passenger Vehicle Vans 10 Fleet Construction Equipment Backhoe 15 Fleet Construction Equipment Cement Mixer 20 Fleet Construction Equipment Dump Trucks 10 Fleet Construction Equipment Gradall 10 Fleet Construction Equipment Grader 15 Fleet Construction Equipment Hot Patcher 10 Fleet Construction Equipment Loader 10 Fleet Construction Equipment Mobile Compressor 10 Fleet Construction Equipment Pavement Grinder 5 Fleet Construction Equipment Street Flusher 10 Fleet Construction Equipment Street Sweeper 7 Fleet Construction Equipment Utility 10 Fleet Construction Equipment Vacuum Truck 9 Fleet Trailers Boat Trailers 15 Fleet Trailers Paint Trailer 15 Fleet Trailers Ice Painting Trailer 15 Fleet Trailers Utility Trailers 15 Fleet Trailers Water Tanker Trailers 10 Fleet Fire Trucks Aerial Trucks 10 Fleet Fire Trucks Pumper Trucks 10 Fleet Fire Trucks Rescue Trucks 15 Fleet Fire Trucks Tanker Trucks 10 Fleet Lawn Care & Forestry Chipper Truck 8 Fleet Lawn Care & Forestry Front Mount Mowers 7 Fleet Lawn Care & Forestry Litter Truck 7 31

32 Service Asset Class Asset Type Useful Life Fleet Lawn Care & Forestry Wide Cut Mowers 8 Fleet Lawn Care & Forestry Walk Behind and Front Mount Mowers 7 Fleet Lawn Care & Forestry Turf Care Machines 20 Fleet Refuse Trucks Hooklift 7 Fleet Refuse Trucks Rear Loader 10 Fleet Refuse Trucks Side Loader 10 Fleet Arena Equipment Zamboni 6 Fleet Arena Equipment Ice Edger 10 Fleet Snow Equipment Sidewalk Machines 10 Fleet Snow Equipment Sanders 10 Fleet Snow Equipment Snow Blowers 10 Fleet Garage & Shop Equipment A/C machine 10 Fleet Garage & Shop Equipment Blade Machine 10 Fleet Garage & Shop Equipment Compressor 20 Fleet Garage & Shop Equipment Drill Press 18 Garage & Shop Fleet Fuel Pump 15 Equipment Fleet Garage & Shop Equipment Hoist 12 Fleet Garage & Shop Equipment Overhead Crane 25 Fleet Garage & Shop Equipment Saw 20 Fleet Garage & Shop Equipment Sweeper Scrubber 15 32

33 2.5.1 Installation Profile: Infrastructure Investment in Whitby Town of Whitby Fleet Service Area Asset Management Plan In this section, we provide the installation profile and asset life consumption rate using in-service data. Together, these graphs can illustrate infrastructure investment trends and upcoming needs at Whitby. Figure 2-16 illustrates the level of investment in Whitby s Fleet infrastructure since Figure 2-16 Aggregate Installation Profile $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Arena Equipment Construction Equipment Fire Trucks Garage & Shop Equipment Lawn Care & Forestry Passenger Vehicles Refuse Trucks Snow Equipment Trailers The Town made significant investments in its Fleet assets beginning in 2001, with a total of $4 million invested between 2001 and Additionally, $13.8 million was invested between 2011 and 2015 and $2.3 million in the last 2 years. The following figures illustrate historic investment trends in each asset class. 33

34 Figure 2-17 Asset Installation Profile Arena Equipment $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 34

35 Figure 2-18 Asset Installation Profile Construction Equipment $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 35

36 Figure 2-19 Asset Installation Profile Fire Trucks Town of Whitby Fleet Service Area Asset Management Plan $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 36

37 Figure 2-20 Asset Installation Profile Garage & Shop Equipment $140,000 Town of Whitby Fleet Service Area Asset Management Plan $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Garage & Shop Equipment 37

38 Figure 2-21 Asset Installation Profile Lawn Care & Forestry Town of Whitby Fleet Service Area Asset Management Plan $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Lawn Care & Forestry 38

39 Figure 2-22 Asset Installation Profile Passenger Vehicles Town of Whitby Fleet Service Area Asset Management Plan $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 39

40 Figure 2-23 Asset Installation Profile - Refuse Trucks Town of Whitby Fleet Service Area Asset Management Plan $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 40

41 Figure 2-24 Asset Installation Profile - Snow Equipment Town of Whitby Fleet Service Area Asset Management Plan $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 41

42 Figure 2-25 Asset Installation Profile - Trailers Town of Whitby Fleet Service Area Asset Management Plan $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- 42

43 2.6 Useful Life Consumption In this section, we detail the extent to which each asset class has consumed its useful life based on the above, established useful life standards. Figure 2-26 Aggregate Useful Life Consumption - All Fleet Assets 0-5 Years Remaining $13,116,873 38% Exceeded Estimated Useful Life $15,211,919 44% 6-10 Years Remaining $5,933,440 17% > 10 Years Remaining $219,735 1% Total $34,481,967 Approximately 1% of the Town s Fleet assets valued at $219,735 have more than 10 years remaining. 44%, with a valuation of $15.2 million remain in operation beyond their useful life. An additional 38%, with a valuation of $13.1 million will see their useful life expire in the next five years. The following graphs illustrate the useful life consumption distribution by asset class. 43

44 Figure 2-27 Useful Life Consumption Arena Equipment Exceeded Estimated Useful Life $922,500 99% 0-5 Years Remaining $13,500 1% Total $936,000 Figure 2-28 Useful Life Consumption Construction Equipment 0-5 Years Remaining $2,747,440 36% Exceeded Estimated Useful Life $2,343,461 30% 6-10 Years Remaining $2,640,000 34% Total $7,730,901 44

45 Figure 2-29 Useful Life Consumption Fire Trucks Exceeded Estimated Useful Life $6,400,000 57% 0-5 Years Remaining $4,050,000 36% 6-10 Years Remaining $850,000 7% Total $11,300,000 Figure 2-30 Useful Life Consumption Garage & Shop Equipment Total $258,149 Exceeded Estimated Useful Life $115,611 53% 0-5 Years Remaining $99,538 46% 6-10 Years Remaining $3,000 1% 45

46 Figure 2-31 Useful Life Consumption Lawn Care & Forestry Exceeded Estimated Useful Life $875,686 36% 0-5 Years Remaining $1,127,008 46% > 10 Years Remaining $135,000 6% Total $2,431, Years Remaining $294,000 12% Figure 2-32 Useful Life Consumption Passenger Vehicles 0-5 Years Remaining $1,315,500 47% Exceeded Estimated Useful Life $495,000 18% 6-10 Years Remaining $958,000 35% Total $2,768,500 46

47 Figure 2-33 Useful Life Consumption - Refuse Trucks Exceeded Estimated Useful Life $2,215,000 35% 0-5 Years Remaining $4,080,000 65% Total $6,295,000 Figure 2-34 Useful Life Consumption - Snow Equipment 0-5 Years Remaining $663,596 29% Exceeded Estimated Useful Life $390,050 17% 6-10 Years Remaining $1,261,501 54% Total $2,315,148 47

48 Figure 2-35 Useful Life Consumption - Trailers 0-5 Years Remaining $113,324 25% 6-10 Years Remaining $138,965 31% Exceeded Estimated Useful Life $109,551 25% > 10 Years Remaining $84,735 19% Total $446,575 48

49 3. Levels of Service The two primary risks to a municipality s financial sustainability are the total lifecycle costs of infrastructure, and establishing levels of service (LOS) that exceed its financial sustainability. In this regard, municipalities face a choice: overpromise and underdeliver; underpromise and overdeliver; or promise only that which can be delivered sustainably. Developing realistic LOS using meaningful key performance indicators (KPIs) can be instrumental in managing citizen expectations, identifying areas requiring higher investments, driving organizational performance and securing the highest value for money from public assets. However, municipalities face diminishing returns with greater granularity in their LOS and KPI framework. The objective should be to track only those KPIs that are relevant, insightful and reflect the priorities of the Town. 3.1 Overview of Performance Management Beyond meeting regulatory requirements, levels of service established should support the intended purpose of the asset and its anticipated impact on the community and the municipality. LOS generally have an overarching corporate description, a customer oriented description, and a technical measurement. Many types of LOS, e.g., availability, reliability, safety, responsiveness and cost effectiveness, are applicable across all Service Areas in a municipality. The following levels of service categories have been established as guiding principles for the LOS that each service should strive to provide internally to the organization (Town of Whitby) and externally to customers and regulators. Available: Services of sufficient capacity are convenient and accessible to the entire community Cost Effective: Services are provided at the lowest possible cost for both current and future customers, for a required level of service, and are affordable Reliable: Services are predictable and continuous Responsive: Opportunities for community involvement in decision making are provided; and customers are treated fairly and consistently, within acceptable timeframes, demonstrating respect, empathy and integrity Safe: Services are delivered such that they minimize health, safety and security risks Suitable: Services are suitable for the intended function (fit for purpose) Sustainable: Services preserve and protect the natural and heritage environment. While the above categories provide broad strategic direction to council and staff, specific and measurable KPIs related to each LOS category are needed to ensure the Town remains steadfast in its pursuit of delivering the highest value for money to various internal and external stakeholders. 49

50 3.2 Risk Management & Prioritization Project Prioritization Generally, infrastructure needs exceed municipal capacity. As such, municipalities must carefully select projects based on the state of infrastructure, economic development goals, and the needs of an evolving and growing community. These factors, along with social and environmental considerations will form the basis of a robust risk management framework. From an asset management perspective, risk is a function of: the consequences of failure (e.g., the negative economic, financial, and social consequences of an asset in the event of a failure); and the probability of failure (e.g., how likely is the asset to fail in the short- or longterm). The consequences of failure are typically reflective of: An asset s importance in an overall system The criticality of the function performed The exposure of the public and/or staff to injury or loss of life The probability of failure is generally a function of an asset s physical condition, which is heavily influenced by the asset s age and the amount of investment that has been made in the maintenance and renewal of the asset throughout its life. Risk mitigation is traditionally thought of in terms of safety and liability factors. In asset management, the definition of risk should heavily emphasize these factors but should be expanded to consider the risks to the Town s ability to deliver targeted levels of service The impact that actions (or inaction) on one asset will have on other related assets The opportunities for economic efficiency (realized or lost) relative to the actions taken Figure 3-1 below illustrates a range of risk factors and describes, in general terms, how the consequences of asset failure can be evaluated relative to each factor. The weightings placed on the various factors should reflect the criticality of each asset and the degree to which the public is directly exposed to risk. 50

51 Figure 3-1 Risk Factors and Consequence of Failure Level of Service Other Assets Economic Efficiency Life, Safety and Liability High (5) The asset will cease to function and service will be unavailable to many users Other assets will not be functional or will deteriorate more quickly Opportunities for significant life extending/costsaving rehabilitation will be missed The asset s failure could lead directly to loss of life or injury Medium (3) The asset will still function but the quality of the service will be reduced for many users The functionality of other assets will be reduced Opportunities for moderate life extending rehabilitation will be missed The asset s failure could lead indirectly to loss of life or injury Low (1) The asset will function but the quality of the service will be reduced for a few users The function or condition of other assets will not be impacted Replacement at failure is the only efficient option and can be easily accomplished The potential for minor claims is increased Using the logic above, a risk matrix will illustrate each asset s overall risk, determined by multiplying the probability of failure (PoF) scores with the consequence of failure (CoF) score, as illustrated in the table below. This can be completed as a holistic exercise against any data set by determining which factors (or attributes) are available and will contribute to the PoF or CoF of an asset. The probability of failure is increased as more and more factors collude to cause asset failure. In order to generate an infrastructure risk matrix, or a heat map, for Whitby s Fleet assets, we will use the following consequence of risk scoring and probability of risk as shown below in Tables 3-1 and 3-2. The primary determinant of the probability of failure is the condition of the assets. 51

52 Table 3-1 Consequence of Failure Consequence Asset Class of Failure Fire Trucks 5 Snow Equipment 5 Construction Equipment/Vehicles Refuse Trucks 4 4 Description Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets Assets are high use, and their failure may compromise service delivery and/or injury to public; direct impact on public safety; high value assets Arena Equipment 3 Medium service criticality and low replacement cost Passenger Vehicles 2 Garage & Shop Equipment Lawn Care & Forestry Medium service criticality and low replacement cost 2 Medium service criticality and low replacement cost 1 Low service criticality; replacement cost is low and asset is easily replaced Trailers 1 Low service criticality; replacement cost is low and asset is easily replaced 52

53 Table 3-2 Probability of Failure Condition Rating Probability of Failure 0-20 Very Poor 5 Very High Poor 4 High Fair 3 Moderate Good 2 Low Very Good 1 Very Low The position of the assets on the risk matrix indicats their risk exposure and priority. Figure 3-2 shows how assets are categorized into their respective priority levels based on the probability of failure and the consequence of a failure event. 53

54 Figure 3-2 Risk Prioritization Matrix Town of Whitby Fleet Service Area Asset Management Plan 5 High Priority Consequence of Failure Low Priority Probability of Failure 54

55 Figure 3-3 Aggregate Risk Matrix All Fleet Assets Town of Whitby Fleet Service Area Asset Management Plan 5 0.0% 9 Assets $4,900, % 22 Assets $2,632, % 13 Assets $4,915, % 2 Assets $1,060, % Consequence of Failure % 0.0% 0.0% 17 Assets $3,690, % 0.0% 18 Assets $561, % 21 Assets $4,198, % 7 Assets $509, % 41 Assets $1,393, % 23 Assets $3,978, % 6 Assets $27, % 17 Assets $559, % 15 Assets $2,158, % 4 Assets $400, % 14 Assets $507, % 1 0.0% 14 Assets $626, % 35 Assets $1,407, % 29 Assets $933, % 8 Assets $286, % Probability of Failure 55

56 Figure 3-4 Risk Matrix Arena Equipment Town of Whitby Fleet Service Area Asset Management Plan 5 0.0% Consequence of Failure Assets $509,000 6 Assets $27,000 4 Assets $400, % 0.0% 1 0.0% Probability of Failure 56

57 Figure 3-5 Risk Matrix Construction Equipment Town of Whitby Fleet Service Area Asset Management Plan 5 Consequence of Failure Assets $2,170, Assets $2,038, Assets $1,363, Assets $2,158, Probability of Failure 57

58 Figure 3-6 Risk Matrix Fire Trucks Town of Whitby Fleet Service Area Asset Management Plan 5 4 Assets $4,050,000 2 Assets $1,700,000 6 Assets $4,700,000 1 Asset $850,000 Consequence of Failure Probability of Failure 58

59 Figure 3-7 Risk Matrix Garage & Shop Equipment Town of Whitby Fleet Service Area Asset Management Plan 5 Consequence of Failure Assets $8, Assets $91,443 3 Assets $34,206 5 Assets $124, Probability of Failure 59

60 Figure 3-8 Risk Matrix Lawn Care & Forestry Town of Whitby Fleet Service Area Asset Management Plan 5 Consequence of Failure Assets $494, Assets $1,000,441 2 $735,328 3 Assets $201, % Probability of Failure 60

61 Figure 3-9 Risk Matrix Passenger Vehicles Town of Whitby Fleet Service Area Asset Management Plan 5 Consequence of Failure Assets $553, Assets $1,302, Assets $460,000 1 $452, Probability of Failure 61

62 Figure 3-10 Risk Matrix Refuse Trucks Town of Whitby Fleet Service Area Asset Management Plan 5 Consequence of Failure Assets $1,520,000 7 Assets $2,160,000 9 Assets $2,615, Probability of Failure 62

63 Figure 3-11 Risk Matrix Snow Equipment Town of Whitby Fleet Service Area Asset Management Plan 5 5 Assets $1,027,000 2 $899,137 7 Assets $189,010 1 Assets $200,000 Consequence of Failure Probability of Failure 63

64 Figure 3-12 Risk Matrix Trailers Town of Whitby Fleet Service Area Asset Management Plan 5 Consequence of Failure Asset $25, Assets $260,735 1 $100,356 5 Assets $60, Probability of Failure 64

65 3.3 Key Performance Indicators and Targets Town of Whitby Fleet Service Area Asset Management Plan We recommend condition related KPIs and service oriented KPIs for the Town s Fleet assets. Condition related KPIs gauge the functionality of assets, e.g., observed condition rating and investments in maintenance. Service oriented KPIs illustrate whether assets meet community expectations. In subsequent iterations of this SAAMP, the Future Level of KPIs for each asset class can be entered, illustrating a trend. Table 3-3 Key Performance Indicators (KPIs) Asset Class Passenger Vehicles Construction Equipment Trailers Fire Trucks Lawn Care & Forestry Refuse Trucks Arena Equipment Snow Equipment Garage & Shop Equipment KPI Target Condition Related At least 70% of assets in fair or better condition. At least 80% of assets in fair or better condition. At least 80% of assets in fair or better condition. At least 95% of assets in fair or better condition. At least 60% of assets in fair or better condition. At least 80% of assets in fair or better condition. At least 80% of assets in fair or better condition. At least 95% of assets in fair or better condition. At least 70% of assets in fair or better condition. Current Level KPI Status Previous Level KPI Trend 84% = 72% = 86% = 93% = 84% = 100% = 57% = 91% = 52% = 65

66 3.4 Future Performance In addition to the Financial Sustainability, and legislative requirements, e.g., the Accessibility for Ontarians with Disability Act, many factors, internal and external, can influence the establishment of LOS and their associated KPIs, both target and actual. The municipality s overarching strategic goals as a community will determine the types of services it will provide to its residents, the associated demand on infrastructure, and the level of service it can feasibly deliver. These LOS are directly influenced by and should reflect not only the municipality s financial capacity to maintain the assets, but also the current state of the infrastructure. Public expectations and opinions can also play an important part in prioritizing investments in infrastructure and service delivery standards. The public should be consulted in establishing LOS; however, the discussions should be centred on clearly outlining the lifecycle costs associated with delivering any improvements in LOS. Citizenship expectations and insights will also reflect the demographic composition of the community. Further, a growing community can place added demand on critical infrastructure, and may reduce levels of service standards. Lastly, the wider global context can have direct consequence on a municipality s capacity to provide established levels of service. Fluctuations in macroeconomic variables such as interest rates and fuel costs, and environmental considerations such as climate change, should be considered prior to making infrastructure investments and changing the municipality s asset portfolio. 3.5 Monitoring, Updating and Actions The Town of Whitby has not established technical and service-oriented LOS targets for its Fleet Service Area. The municipality should collect data on its current performance against the KPIs listed in section 3.2. These established targets should reflect the current fiscal capacity of the municipality, its corporate and strategic goals, and changes in demographics that may place additional demand on its Fleet assets. We also recommended that Fleet condition data be collected on an annual basis such that the results of this data can be tracked and monitored against the KPI targets set out within this SAAMP. 3.6 Non-Infrastructure Solutions and Requirements The municipality should explore, as requested through the provincial requirements, which non-infrastructure solutions should be incorporated into the budgets for its Fleet services. Non-Infrastructure solutions are such items as studies, policies, condition assessments, consultation exercises, etc., that could potentially extend the life of assets or lower total asset program costs in the future without a direct investment into the infrastructure. Typical solutions for a municipality include linking the asset management plan to the strategic plan, growth and demand management studies, infrastructure master plans, better integrated infrastructure and land use planning, public consultation on levels of service, and 66

67 condition assessment programs. As part of future asset management plans, a review of these requirements should take place, and a portion of the capital budget should be dedicated for these items in each programs budget. It is recommended, under this category of solutions that the municipality should continue to implement holistic condition assessment programs for its Fleet assets. This will advance the understanding of infrastructure needs, improve budget prioritization methodologies, and provide a clearer path of what is required to achieve sustainable infrastructure programs. 67

68 4. Asset Maintenance & Renewal Strategies The asset management and renewal strategy will develop an implementation process that can be applied to the needs identification and prioritization of renewal, rehabilitation, and maintenance activities. This will assist in the production of a 10-year plan, including growth projections, to ensure the best overall health and performance of the municipality s infrastructure. This section includes an overview of condition assessment; the life cycle interventions required; and prioritization techniques, including risk, to determine which priority projects should move forward into the budget first. The following tables illustrate the lifecycle activities associate with each asset component within the Fleet assets. 68

69 Table 4-1 Lifecycle Activities - Fleet: Lawn Care and Forestry Average of Replacement Cost Replacement Schedule Town of Whitby Fleet Service Area Asset Management Plan Lawn Care & Forestry 7 Years 8 Years 10 Years 15 Years 20 Years Chipper Truck $130,000 $175,500 Front Mount Mowers $42,136 Litter Truck $160,000 Push Mower $1,000 Rotary Mower $72,000 $64,667 Tractor $80,000 Turf Care Machines $50,875 $9,134 $22,274 $3,133 Turf Sweeper $9,500 Turf Topper $20,000 Table 4-1 shows the replacement costs and replacement schedule for different Lawn Care and Forestry asset types. These figures depict the average replacement value, which for asset classes such as Turf Care Machines includes a number of asset types. All Fleet assets undergo a simple end of life replacement lifecycle with regular maintenance at intervals. Table 4-2 Lifecycle Activities - Fleet: Shop Equipment Average of Valuation Cost Replacement Schedule Garage & Shop Equipment 10 Years 15 Years 20 Years 25 Years A/C machine $3,000 Blade Machine $3,000 Compressor $40,000 Drill Press $715 $5,000 Fuel Pump $6,500 Hoist $770 $19,069 $35,000 Overhead Crane $17,000 Saw $798 Sweeper Scrubber $65,000 69

70 Table 4-3 Lifecycle Activities - Fleet: Snow Equipment Average of Valuation Cost Replacement Schedule Snow Equipment 10 Years Sanders $12,000 Sidewalk Machines $122,525 Snow Blowers $14,900 Table 4-4 Lifecycle Activities - Fleet: Refuse Trucks Average of Valuation Cost Replacement Schedule Refuse Trucks 5 Years 10 Years Hooklift $135,000 Rear Loader $240,000 Side Loader $320,000 Town of Whitby Fleet Service Area Asset Management Plan Table 4-5 Lifecycle Activities - Fleet: Trailers Average of Valuation Cost Replacement Schedule Trailers 10 Years 15 Years Boat Trailer $45,000 Ice Painting Trailer $10,000 Paint Trailer $15,000 Utility Trailer $16,476 Water Trailer $20,000 70

71 Table 4-6 Lifecycle Activities - Fleet: Construction Average of Valuation Cost Replacement Schedule Construction Equipment 5 Years 7 Years 10 Years 15 Years 20 Years Backhoe $135,000 Cement Mixer $10,000 Dump Trucks $138,948 Gradall $350,000 Grader $200,000 Hot Patcher $155,000 Loader $253,000 Mobile Compressor $40,000 Pavement Grinder $3,105 Street Flusher $190,337 Street Sweeper $273,000 Utility $24,019 Vacuum Truck $550,000 $80,000 71

72 Table 4-7 Lifecycle Activities - Fleet: Arena Equipment Average of Valuation Cost Replacement Schedule Arena Equipment 6 Years 10 Years Ice Edger $4,500 Ice resurfacer $100,000 Table 4-8 Lifecycle Activities - Fleet: Fire Trucks Average of Valuation Cost Replacement Schedule Fire Trucks 10 Years Aerial $1,500,000 Pumper $850,000 Rescue $100,000 Tanker Trucks $550,000 Table 4-9 Lifecycle Activities - Fleet: Passenger (Pickups, Cars, SUV, Van) Average of Valuation Cost Replacement Schedule Passenger Vehicles 10 Years Cars $30,571 Pick-up Trucks $40,171 SUVs $38,714 Vans $57,864 72

73 4.1 Condition Assessment Programs When establishing the condition assessment of an entire asset class, the cursory approach (metrics such as Very Good, good, fair, poor, very poor) is used. This is a less expensive approach when applied to thousands of assets, yet still provides up to date information, and allows for detailed assessment or follow up inspections on those assets captured as poor or critical condition later. The typical approach to optimizing the maintenance expenditures of a corporate fleet of vehicles is through routine vehicle inspections, routine vehicle servicing, and an established routine preventative maintenance program. Most, if not all, makes and models of vehicles are supplied with maintenance manuals that define the appropriate schedules and routines for typical maintenance and servicing and also more detailed restoration or rehabilitation protocols. The primary goal of good vehicle maintenance is to avoid or mitigate the consequence of failure of equipment or parts. An established preventative maintenance program serves to ensure this, as it will consist of scheduled inspections and follow up repairs of vehicles and equipment in order to decrease breakdowns and excessive downtimes. A good preventative maintenance program will include partial or complete overhauls of equipment at specific periods, including oil changes, lubrications, fluid changes and so on. In addition, workers can record equipment or part deterioration so they can schedule to replace or repair worn parts before they fail. The ideal preventative maintenance program would move further and further away from reactive repairs and instead towards the prevention of all equipment failure before it occurs. It is recommended that a preventative maintenance routine is defined and established for all Fleet vehicles. A calendar of events should be developed for all existing assets and upon acquisition of new ones, detailing when fleet assets should undergo major and minor maintenance. For example, a vactor truck in heavy use during spring, summer and fall should have its major maintenance scheduled during the winter months to avoid significant downtimes when it is in high demand. 4.2 Lifecycle Framework The best approach to develop a 10-year needs list for the Town s Fleet assets would first be through a defined preventative maintenance program as described in the previous section, and secondly, through an optimized life cycle vehicle replacement schedule. As previously described, the preventative maintenance program would serve to determine budget requirements for operating and minor capital expenditures for part renewal and major refurbishments and rehabilitations. An optimized vehicle replacement program will ensure a vehicle is replaced at the correct point in time in order to minimize overall cost of ownership, minimize costly repairs and downtime, while maximizing potential re-sale value. There is significant benchmarking information available within the fleet industry in regards to vehicle life cycles which can be used to assist in this process. Once appropriate replacement schedules are established the short and long term budgets can be funded accordingly. 73

74 There are, of course, functional aspects of fleet management that should also be looked at in further detail as part of the long-term management plan, such as fleet utilization and incorporating green fleet, etc. 4.3 Monitoring, Updating and Action To continue to develop its asset management program, we recommend the following: The Town of Whitby should continue to assess the condition of its Fleet assets and dedicate a portion of its capital funding to this assessment. Risk should be reviewed annually to ensure assets are being maintained effectively. 74

75 5. Financial Strategy 5.1 General Overview of Financial Plan Requirements In order for an AMP to be effectively put into action, it must be integrated with financial planning and long-term budgeting. The development of a comprehensive financial plan is planned for This will allow The Town of Whitby to identify the financial resources required for sustainable asset management based on existing asset inventories, desired levels of service, and projected growth requirements. The following pyramid depicts the various cost elements and resulting funding levels that should be incorporated into AMPs that are based on best practices. 75

76 Figure 5-1 Cost Elements Town of Whitby Fleet Service Area Asset Management Plan 76