CITY OF NANAIMO 20 Year Investment Plan and Asset ... · CITY OF NANAIMO 20 Year Investment Plan and Asset Management Update March 23, 2017 . Page 2 20 ea vee Pa a e aagee ate Executive

CITY OF NANAIMO20 Year Investment Plan and Asset

Management Update

March 23, 2017

20 Year Investment Plan and Asset Management UpdatePage 2

Executive SummaryThe 20 Year Investment Plan and Asset Management Update will provide Council with an overview of the City’s long term investment plans and funding strategies. The plan includes current investment in strategic initiatives and programs, annual investment programs for renewal of existing infrastructure and new/upgraded infrastructure required for growth to maintain current levels of service. The plan will support Council’s review and decision making regarding current planning processes, the City’s Asset Management System and funding strategies.

The City’s planning processes include:

• AssetManagementLifecyclePlansforeachinfrastructuretype• StrategicPlansadoptedbyCouncil• 10YearDepartmentalProjectPlansthatincorporateAMandStrategicPlans• FiveYearFinancialPlans

Projectsareidentifiedinlongerrangeplanningprocessesandprioritizedindepartmental10yearplansandthenintheCity’sFiveYearFinancialPlans.Asprojectsmoveaheadineachplanningprocessadditionalworkiscompletedtorefinetimingandcostestimatesandtocoordinatewithothertypesofinfrastructureprojects.ResourceandfundingconstraintsareconsideredwhenprojectsareincludedintheCity’sFiveYearFinancialPlan.

Page 320 Year Investment Plan and Asset Management Update

20 Year Investment PlanThe20YearInvestmentPlanhasbeenpreparedforattentiondirectingpurposesandtoallowCounciltoreviewandmakedecisions.Projectedinvestmentoverthenext20yearsis$1.1billionandcurrentfundingstrategiesmayprovide$794million.Strategieshavebeenidentifiedtoaddresstheprojectedfundingshortfallof$258million.Theprojectedshortfallincludes$117millionindevelopmentcontributionchargesfornew/upgradedinfrastructure.CompletionofthecurrentDCCreviewandnewbylawisintendedaddressthisshortfall.

The Asset Management Update will Provide:• AnoverviewoftheCity’sAMSystem• Infrastructureinformationbyassettype–egwater,sewer,transportation• AMSystemimprovementinitiatives

Staff Recommendations:• Continueannual1%propertytaxincreasesto2022fortheGeneralFundAssetManagementreserve.• CompleteDCCreviewandadoptnewDCCbylaw.• DevelopfinancialpoliciesincludingaReservePolicyandaDebtPolicy.• ContinuetodeveloptheCity’sAMSystemincludingadoptionofanAMPolicyandanAMStrategy.• CompletethenextAssetManagementUpdateinfiveyearstore-assesstheeffectivenessoftheCity’sasset

management capacity and funding strategies.


Outline/Table of Contents• ExecutiveSummary• LongTermPlanning:20YearInvestment ......................................................................................................................5

LongTermPlanningFramework .......................................................................................................................6 20 Year Investment Plan ........................................................................................................................................8

• AssetManagementUpdate ............................................................................................................................................14 Why Asset Management? .................................................................................................................................15 Asset Management Steering Committee ....................................................................................................19 Infrastructure Overview ..................................................................................................................................... 22

-WaterUtilityInfrastructure .........................................................................................................................23-24-SewerUtilityInfrastructure .........................................................................................................................25-26-GeneralFund ....................................................................................................................................................27-28-Transportation .................................................................................................................................................29-30-Drainage .............................................................................................................................................................31-32-ParksAmenities ...............................................................................................................................................33-34-Facilities ..............................................................................................................................................................35-36-InformationTechnology ..............................................................................................................................37-38-Fleet ............................................................................................................................................................................39

Continuous Improvement: the City’s Asset Management System ....................................................40• AppendixA:AssetManagementReserves• Definitions


Long-Term Planning:20 Year Investment Plan


Long Term Planning FrameworkLongtermplanssupportthedeliveryofawiderangeofneededanddesiredservices,andtheimplementationofCouncil’sstrategicpriorities,forthecommunity.Longtermplanshelppreparetheorganizationtomoveaheadwithneeded investigation and design work, and with the timing and allocation of resources and funding.

City provided services include:

• FireandPolice protection• Water• Sanitarysewer• Transportation• Drainage• Solidwastecollection• Recreation• Culture• Social

Strategic prioritiesareidentifiedintheCity’sOfficialCommunityPlan,planNanaimo,theCommunitySustainabilityActionPlanandinsupportingmasterplansadoptedbyCouncil.ExamplesofstrategicplansincludetheStrategicPlanUpdate(2016–2019),TransportationMasterPlan,CulturalPlanforaCreativeNanaimo,BebanParkMasterPlanUpdateandHarewood Centennial Park Improvement Plan. Implementation of these priorities requires investment in community partnerships, planning processes and infrastructure.

Asset management lifecycle plans are maintained for all types of City infrastructure. These attention directing plans support identifying needed condition assessment programs and are compared to current maintenance information to identifypriorityprojectsforinfrastructurerenewal.

ReviewoftheCity’sinfrastructurecapacityandidentificationofnew/upgradedinfrastructureneededduetogrowthareundertakeninperiodicDCCReviews.ThelastDCCreviewwascompletedin2008.ThecurrentDCCreviewprocessisnowreadyforCouncil’sreviewanddirectionandforstakeholderconsultation.DetailedinformationwillbeprovidedinaseparateDCCReviewreport.


Five Year Financial PlansInaccordancewiththelawsofBritishColumbiathroughtheCommunityCharter,municipalitiesmustprepareafiveyearfinancialplaneachyear.PriorityprojectsareidentifiedandincludedwithintheCity’sFinancialPlansthatminimizeriskto delivery of services, support development in the community, and implement Council’s strategic priorities and plans withinreasonablefundinglevels.

Overview of the City’s Long Term Planning Process

AssetManagementPlans (AMP)• Linear Infrastructure• Facilities• Fleet• Park Amenities• IT

ProjectPlanning Process• Review projects identified in AMPs• Condition assessment programs (CCTV, industry experts)• Staff review

Developmentof 10 Year

Department Renewal Plans

5 Year Financial Plan for Renewal

5 Year Priority

Renewal Plan

5 Year Priority

DCC Plan

Annual Programs and

Strategic Initiatives

CouncilStrategic Priorities

5 YearFinancial

Plan


20 Year Investment PlanThe20YearInvestmentPlanhasbeenpreparedforattentiondirectingpurposesandtoallowCounciltoreviewandmakedecisions.Projectedinvestmentoverthenext20yearsis$1.1billionandcurrentfundingstrategiesmayprovide$794million.Strategieshavebeenidentifiedtoaddresstheprojectedfundingshortfallof$258million.Theprojectedshortfallincludes$117millionindevelopmentcontributionchargesfornew/upgradedinfrastructure.CompletionofthecurrentDCCreviewandnewbylawmayaddressthisshortfall.

Components of the 20 Year Investment Plan include:

1. New/upgradedinfrastructureinvestmentidentifiedinthecurrentDevelopmentCostChargesReview

2. Provisional2017–2021FinancialPlana. Priorityinfrastructurerenewalprojectsb. PriorityDCCprojectsc. Strategicprojects

i. Examples:AffordableHousingStrategy,SocialWellnessStrategy,propertyacquisition,HarewoodCentennial Park, new pedestrian, cycling and transit amenities

3. Departmental10yearplansa. Priorityinfrastructurerenewalprojects;b. PriorityDCCprojects;c. Projectswherefurtherinvestigationisongoing/

required: i. Examples:renewalofthePublicWorksYard,

renewaloftheCurlingClubfacility,BebanPark:powerdistributionupgrade,renewalofrecreationaldams,renewaloftheDepartureBayActivityCentre;

4. Infrastructurelifecycleplans.


Current Funding StrategiesTheCitymaintainsreservesthatfundthemajorityofannualinvestmentplans.Annualcontributionstothesereservesarefromgeneralrevenues,userfees,DCCsandseniorgovernmentgrantprogramsandreflecttheCity’scurrentfundingstrategies

Current funding strategies in the 20 year plan include:

• $7Mallocationofannualgeneralrevenuestoprojects;• Council’scurrentcommitmentforincreasestotheCity’sassetmanagementreservesthroughannualincreasesto

propertytaxesanduserfees(AppendixA);• ContributionstospecificreservesforIT,EquipmentReplacement(Fleet)andFacilityDevelopment(Parksand

Recreation);• CurrentDCCbylawratesandcontributionlevelstoDCCreserves;and• CommunityWorksFund.

ThenewlycreatedStrategicInfrastructureReserve,otherseniorgovernmentgrantsandprivatecontributionshavenot beenincludedincurrentfundingstrategies,exceptfortransportationDCCprojects.Approximately$12millioningrantfundingforspecifictransportationprojectshasbeenincludedinthe20YearInvestmentPlan.

Borrowingcanbeusedandrepaymentwillspreadfundingneedsoveralongerperiodoftime.Thecostofdebthasnot beenincludedincurrentfundingstrategies.


Long Term Planning Purpose and RisksSignificantdiligence,collaborationandcollectionofthebestavailableinformationisusedtodeveloplongtermplans.Thepurposeoflongtermplansareattentiondirectingtoidentifysignificantissuesandallowtimetodevelopandimplementstrategies.Variablesthatimpactlongtermplansare:

• Changestousefullifeorremainingusefullifeassumptions;• Changestotimingandcostestimates;• Unplannedliabilitieswhichmayimpactcontributionsorrequireanunplannedallocationfromreserves;and• Inflationasallexpendituresandrevenuesarereportedin2016dollars.

Asplanningprocessesadvancetodetaileddesign,tenderandconstructionphaseschangesincostestimatesmayberealized.

Aswell,significantconstraintsbothexternalandinternalmayimpacttheabilityoftheCitytoexecuteitsinvestmentplans. These constraints may include political, economic, social, technical, environmental and legal.


Excluded ProjectsPendingongoingassessments,renewalorreplacementofFireStation#1andexpansionofthePoliceOperationsBuildingare not included in the 20 Year Investment Plan.

20 Year Investment Plan The20yearprojectedinvestmentis$1.1billion.Currentfundingstrategiesprovideupto$794million.Theprojecteddeficitis$258million.Thisdeficitisdividedbetween$141millionforstrategicpriorities,annualprogramsandrenewalofcurrentinfrastructureand$117millionfornew/upgradedinfrastructurerequiredforgrowth.


20 Year Investment Plan Analysis by FundThe funding gaps are unique to each fund: general, sewer and water. It is important to also consider the need to maintain reasonablereservebalancestosupporttheorganization’sfinancialresiliencyandabilitytorespondtounexpectedchanges in investment timing or costs. Changes can occur due to early infrastructure failure, and cost estimates cannot befinalizeduntilthedetaileddesignandtenderphasesofeachproject.

General Fund• Projectedshortfallis$124millionwhichincludes$43millionforDCCcontributions.• Thefundinggapismostsignificantinthefirst10years.• Projectsinthe20YearInvestmentPlaninclude:WellcoxAccess,PortTheatreExpansion,WaterfrontWalkway

Development(infrontofYachtClub),CurlingClubfacilityrenewal,PublicWorksYardfacilityrenewalandrenewalofrecreational dams.

Sewer Fund• ProjectedDCCcontributionsshortfallis$24million.• Projectedbalanceinsewerreservesis$11.6million.• Thecurrent2017–2021FinancialPlanincludesborrowingforDCCprojectswithrepaymentfromnonDCCreserves.

Water Fund• Projectedshortfallis$121millionwhichincludes$50millionforDCCcontributions.• Fundinggapismostsignificantinlast10yearsoftheplanduetoconstructionofanewdamprojectedtostartin2027.

DebtBorrowingisusedto‘spread’fundingneedsoveralongerperiodwhereappropriate.Thecostofborrowinghasnotbeenincluded in the 20 Year Investment Plan.


Strategies to Reduce the Funding GapTo address the funding needs for current infrastructure renewal, Council may consider strategies to reduce the gap betweenfundingrequiredandavailablefunding.Thesestrategiescaninclude:

• Continue1%increasestopropertytaxesto2022forcontributiontoGeneralAssetManagementReserve;• CompletetheDCCreviewandadoptionofnewbylaw;• Decommissionunderutilized/inefficientinfrastructure;• ImplementimprovementstotheCity’sAMSystem

DevelopgovernancedocumentsincludinganAssetManagementPolicyandanAssetManagementStrategy Developlevelsofservice Developriskframeworks Developperformancemonitoring; Ensureappropriatemonitoringandapplicationforgrantfundingandprivatecontributions.


Asset Management Update


Asset Management Update

Why Asset Management?Deliveringservicesandachievingorganizationalobjectivesrequiresarobustassetmanagementsystem.“Assetmanagementtranslatestheorganization’sobjectivesintoasset-relateddecisions,plansandactivities,usingariskbasedapproach.”(InternationalStandardISO55000,2014).

AsoutlinedinISO55000,arobustassetmanagementsystemmust:

• Beinformedbyallstakeholders,regulatoryandfinancialconstraints.• Beakeyresponsibilityofleadershipatalllevelsintheorganization.• Beacollaborativeandintegratedactivityacrosstheorganizationandincludeengineering,development

environmental,socialandfinancialdisciplines.• Includeoperatingandperformancemonitoringandevaluationtoensureprocessesareachievingorganizational

objectives.• Includecontinuousimprovementinitiativesthatprovidevalueinimprovingefficiencyandeffectivenesstoachieving

organizationalobjectives.

Therequiredchangesinfinancialreportingformunicipalitiesin2008broughtneededattentiontoaginginfrastructure,and challenges facing local governments in funding operations, renewal and growth of their infrastructure. Asset management(AM)principlesandpracticesweredevelopedtohelplocalgovernmentsfacethesechallenges.

IncreasedglobalawarenessandpromotionofAMisevidentintheGovernmentofCanada’sinclusionofassetmanagementintheNewBuildingCanadaPlanandGasTaxagreements.Furthermore,agrowingnumberofprovincialgovernments require or recommend demonstration of asset management capacity to determine local government’s eligibilityforgrantfunding.

TheCityofNanaimo’sinvestmentininfrastructuresupportsdeliveryofneededanddesiredservicestothecommunity.TheCityfacesoperational,environmental,socialandfinancialchallengesindeliveringtheseservicesdueto:ageinginfrastructure,growth,changingregulatorystandardsandthecommunity’sdemandfornewservices.Arobustassetmanagementsystem(AMSystem)providesdecisionmakerswithinformationandanalysisforinfrastructureinvestment.


TheCityofNanaimohascompletedsignificantworkindevelopingitsassetmanagementsystemandcontinuestoimprovecollaboration,processesandinformationtosupportCouncil’sdecisionmaking.Inearly2013,CouncilreceivedtheCity’sfirstAssetManagementPlan,‘2012AssetManagementUpdate’.Theupdatefollowedamulti-yearprocessto:provide education and training, develop long term infrastructure renewal plans for all asset types and develop a funding strategy.

CouncilconfirmeditssupportfortheCity’sassetmanagementsystemthrough:

• Creationofassetmanagementreservesandannualcontributionstothosereservesthroughannualincreasestopropertytaxesandsewerandwateruserfees;and

• Includedassetmanagementasastrategicpriorityinits2012–2015StrategicPlan.


City Infrastructure OverviewThe City provides a wide range of services to the community that require stewardship of a diverse group of assets. Theseassetsprovideneededanddesiredservicestosupporttheeconomic,environmentalandsocialwellbeingofthecommunity.

TheCitycurrentlyownsandoperates$3billionininfrastructureassetsthatsupportprovisionofpoliceandfireprotection, transportation, drainage, water, sewer, parks, recreation and cultural services.

Thetablebelowprovidesanoverviewofkeyassettypes.

Infrastructure Description Current Asset Value - $M %

Water Utility Water supply dams, water treatment plant, reservoirs, mains, control stations

976 33%

Sewer Utility Mains, lift stations and forcemains 597 20%Drainage Mains 637 21%Transportation Roads,bridges,sidewalks,trafficsignals,streetlighting 441 15%Parks Amenities Playfields,playgrounds,trails,recreationaldams 34 1%Facilities Civicoffices,publicworksyard,fireandpolice

buildings,parkades,recreationandculturalbuildings283 9%

ITEquipment Fibreopticnetwork,majorservers 1 0%Fleet Cars, pickups, heavy equipment, sanitation equipment,

fireapparatus,zambonis27 1%

Total 2,996 100%



Asset Management Steering CommitteeThe City’s Asset Management Steering Committee continues to lead and coordinate ongoing improvements to the organization’sAMcapabilitiesandcompetencies.Thecommitteehasrepresentationfromacrosstheorganizationincludingengineering,development,facilities,ITandfinancedisciplines.Membersofthecommitteeleadspecificinitiatives such as review and updating infrastructure lifecycle planning models, participation in senior government programs and implementation of AM process and information improvements.

Todate,theCity’sassetmanagementactivitieshavebeenprimarilyfocusedon:

• Developmentoforganizationalknowledgeandcapacity;• Developmentandmaintenanceoflongtermassetmanagementplansincludingrenewalofcurrentinfrastructureand

new/upgradedinfrastructurerequiredduetogrowth;• Integratingassetmanagementinstrategicplanning;and• Participationinprovincialandnationalassetmanagementprograms.

Presentations to Council later this year will provide more detailed information on the City’s draft AM Policy and draft AM Strategy.


Asset Management UpdateAssetManagementincludesallactivitiestooperate,maintain,renewandconstructinfrastructure.The2012AssetManagement Update focused on renewal of current infrastructure. Since then, further development of the City’s AM System has included:

• Improvementstoassetinformation,includingimplementationofconditionassessmentprograms.• Comprehensivereviewandupdateoflongtermrenewalplansforallassettypes,includingusefullifeandreplacement

cost estimates.• Comprehensivereviewandupdateofnew/upgradedinfrastructurerequiredtoaccommodategrowth.• ParticipationinprovincialandnationalassetmanagementprogramstodevelopAMgovernance,ariskframeworkand

level of service measures to support the City’s AM System.• Increasedcross-functionalcoordinationthroughtheAssetManagementSteeringCommittee.• Organizationalchangesandimprovementstofinancialplanningprocesses.ExamplesincludecreationofaFacilities

managementgroupandutilizationofbusinesscases.

TheAssetManagementUpdateincludesbothrenewalofcurrentinfrastructureandnew/upgradedinfrastructurerequired due to growth.


Renewal of Current Infrastructure: Asset Management Lifecycle PlansAssetmanagementplanswerepreparedforeachoftheCity’sassettypes(egfacilities,fleet,roads,drainage,sewer,water).Theplansfocusonrenewalofcurrentinfrastructureincludetiming,costsandfundingsourcesoverthelifecycleofeach asset type.

During2016,cross-functionalteamsupdateddetailedassetmanagementplansforalloftheCity’smajorassettypes.Thiswork required reviewing and updating complex models with:

• Currentinventoryandconditiondata;• Keyassumptionsforusefullifeorremainingusefullife;and• Projectedinfrastructurereplacementtimingandcostestimates.

New/Upgraded Infrastructure Due to Growth: Current DCC ReviewThecurrentDCCReviewprocessincluded:

• Updatedcommunitygrowthestimates;• Projectedinfrastructureinvestmentincludingtimingandcost;• Proposedchangestocurrentcharges.

AseparateDCCReviewreportwillprovideadditionalinformationandseekendorsementfromCouncilforproceedingtonextstepsincludingstakeholderconsultationandnewDCCbylaw.


City Infrastructure OverviewThe following sections provide updated information on each of the City’s infrastructure types:

• WaterUtilityInfrastructure• SewerUtilityInfrastructure• GeneralFund

Transportation Drainage Parks Amenities Facilities Information Technology Fleet


Water Utility InfrastructureThe City provides water that is clean and safe to drink with minimal service disruption, to satisfy all anticipated consumptionandfireprotection.Thewaterutilityisselffundedthroughuserfeeswhichprovidefundingforannualoperating and maintenance activities and for the infrastructure renewal program. In addition, development cost charges are collected from developers that provide funding for new/upgraded infrastructure required for growth.

TheCity’swatersystemismadeupofdams,reservoirs,facilities(pump/pressurereducingcontrolstations),watertreatmentplantandover600kilometersofsupplyanddistributionmains.

Departmentdocumentsandprocessesaremaintainedtoprovideinformationonallinfrastructureassets.Detailedinformationformainsincluding,location,materialtypeandin-serviceyeararemaintainedintheCity’sGISsystem.Engineeringdrawings,oftenreferredtoas‘asbuilt’drawings,arecompletedafterconstructionofallwaterinfrastructureand are the primary source of asset information.

The asset management update includes long term infrastructure investment plans for:

• Renewalofcurrentinfrastructure;• New/upgradedinfrastructurerequiredforgrowth.

Water Infrastructure Current ConditionCondition of current infrastructure only, does not include capacity.


Water Infrastructure 20 Year Infrastructure Plan: Renewal and GrowthThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoprojectprioritization,resourceandfundingconstraints.

Duetogrowth,itisexpectedthatanewdamwillbeneededtomaintainadequatewatersupply.Thecostofthenewdamisestimatedat$88millionwithdesignandconstructionanticipatedtostartin2027.


Sewer Utility InfrastructureTheCityprovidessewerservicesthatmaintainpublichealthandsafety,withminimalservicedisruptionandimpactto the environment and property. The sewer utility is self funded through user fees which provide funding for annual operating and maintenance activities and for the infrastructure renewal program. In addition, development cost charges are collected from developers that provide funding for new/upgraded infrastructure required for growth.

TheCity’ssewersystemismadeupofmainsandfacilities(liftstations).Thereareover550kilometersofsewermains.SewertreatmentisprovidedbytheRegionalDistrictofNanaimo.

Departmentdocumentsandprocessesaremaintainedtoprovideinformationonallinfrastructureassets.Detailedinformationformainsincluding,location,materialtypeandinserviceyeararemaintainedintheCity’sGISsystem.Engineeringdrawings,oftenreferredtoas‘asbuilt’drawings,arecompletedafterconstructionofallsewerinfrastructureand are the primary source of asset information.



Sewer Infrastructure Current ConditionCondition of current infrastructure only, does not include capacity.


Sewer Infrastructure 20 Year Infrastructure Plan: Renewal and GrowthThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoprojectprioritization,resourceandfundingconstraints.

Duetogrowth,anupgradetotheChaseRiverTrunkisplannedin2018for$5M.


General FundExcludingtheWaterandSewerUtilities,allotherCityservicesareprimarilyfundedbypropertytaxes.Userfeesarecharged for some services including parks and recreation, solid waste collection and development services. In addition, development cost charges are collected from developers that provide funding for new/upgraded transportation, drainage and parks infrastructure required for growth.

GeneralFundlongterminfrastructureplanningincludesthefollowingassets:

• Transportation• Drainage• ParksAmenities• Facilities• InformationTechnology• Fleet

AsummaryoflongtermplanningfortheGeneralFundisfollowedbysectionsforeachoftheabove-notedassets.


General Fund 20 Year Infrastructure Plan: Renewal and GrowthThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoprojectprioritization,resourceandfundingconstraints.


TransportationTheCityprovidestransportationamenitiesthataresafe,accessible,cleanandconvenient.

TheCity’stransportationsystemincludesroads(arterial,industrial,collectorandlocal),bridges,sidewalks,trafficsignalsand street lights.

DetailedassetinformationfortransportationinfrastructureismaintainedintheCity’sGISsystem.RoadinventoryinformationisalsomaintainedintheCity’spavementmanagementsystem(PMS).AconditionassessmentprogramiscompletedeverythreetofiveyearsthatprovidesupdatedinformationtothePMS.Departmentdocumentsarealsomaintainedtoprovideadditionalinformationonbridges,sidewalks,trafficsignalsandstreetlighting.



Transportation Infrastructure Current ConditionCondition of current infrastructure only, does not include capacity.


Transportation Infrastructure 20 Year Infrastructure Plan: Renewal and Growth ThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoprojectprioritization,resourceandfundingconstraints.


DrainageTheCityprovidesadrainagesystemthatminimizesimpacttopropertyandtheenvironment.

The City’s drainage system includes mains, ditches and retention ponds.

Detailedassetinformationformainsincludinglocation,materialtypeandinserviceyeararemaintainedintheCity’sGISsystem.ThereisaongoingdatacorrectionprocessunderwaytoverifyandupdatedataintheGISsystem.Engineeringdrawings,oftenreferredtoas‘asbuilt’drawings,arecompletedafterconstructionofdrainagemainsandaretheprimarysource of asset information.



Drainage Infrastructure Current ConditionCondition of current infrastructure only, does not include capacity.


Drainage Infrastructure 20 Year Infrastructure Plan: Renewal and Growth ThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoresourceandfundingconstraints.

Duetogrowth,itisexpectedthatthedevelopmentofa‘wetpond’for$2.9millionwillbeconstructedin2030.


Parks AmenitiesThe City’s current parks amenities include:

• 13destinationparksincludingMaffeoSuttonandWestwoodLakeparks• 87neighbourhoodparks• 4sprayparks• 23sportsfieldsincluding2artificialturffields• 61playgrounds• 12tennis/sportcourts• 140kilometresoftrails• 2highwaygateways• 3boatramps• 6damsinrecreationalareas



Parks Amenities Infrastructure Current ConditionCondition of current infrastructure only, does not include capacity.


Parks Amenities Infrastructure 20 Year Infrastructure Plan: Renewal and GrowthThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoprojectprioritization,resourceandfundingconstraints.


FacilitiesTheCitycurrentlyhasover100facilities,whichsupportdeliveryofservices.Theseinclude:

• CivicofficebuildingsincludingCityHallandtheServiceandResourceCentre(SARC)• Fireandpolicebuildings• Publicworksyards• Recreationfacilitiesincludingaquatic,arenaandcommunitycentres• CulturalfacilitiesincludingthePortTheatre• Parkades• PortofNanaimoCentre.

Assetmanagementforbuildingsiscomplex,astheyaremadeupofmanycomponentswithdifferentusefullives,differentfunctionsanddifferentoperatingandmaintenancerequirements.

Thefacilitieslongtermrenewalplanisbasedonthereplacementofexistingcomponentswithineachbuildingtomaintaincurrentfunctionandservicelevels.Departmentdocumentsmaintaininventorydataforfacilitiesandtheircomponents.Conditionassessmentprogramshavebeenimplementedtosupportoptimumfunctionalityandreplacementschedulesforfacilities.Ongoingenergysavinginitiativeswillreplaceinefficientcomponentswithmoreenergyefficientcomponents.Significantworkhasbeenundertakentoimprovefacilityassetinformationincludingtheimplementation of condition assessment programs.


• Renewalofcurrentinfrastructure


Facilities Infrastructure Current Condition

Facility Infrastructure 20 Year Infrastructure Renewal Plan: Renewal ThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoprojectprioritization,resourceandfundingconstraints.

The long term plan includes replacement of:

• PublicWorksYardfacility$8.8M• DepartureBayActivityCentre$2.1M


Information TechnologyThe City’s technology equipment includes typical computer network hardware, software, communication infrastructure,radiosystemsandspecializedequipment.Thesesystemssupportover140businessapplicationsand600workstationsdistributedovermanysitesandsupportsdaytodaydeliveryofCityservices.Developingassetmanagementplansfortechnologyequipmentischallengingasrenewalcanberequiredduetochangingtechnologies,endofmaintenanceandsupportservicesaswellasphysicalendoflife.Replacementofassetsmayincludedifferentconfigurationsandfunctionalityasreplacementwithcurrentfunctionalityisnolongeravailable.


• Renewalofcurrentinfrastructure


Information Technology 20 Year Infrastructure Plan: Renewal

IncludesonlymajorIThardwareandfibreopticcablenetwork.

ThegraphisgeneratedfromtheCity’sassetrenewalmodels.ProjectedrenewalneedsinfirstfiveyearswillnotbethesameasprojectsintheCity’sapprovedFiveYearPlanduetoprojectprioritization,resourceandfundingconstraints.


FleetTheCity’sfleetincludescars,trucks,heavyequipment,solidwastecollectionequipment,fireapparatusandiceresurface equipment. The lifecycle of this equipment is relatively short lived compared to other City assets.

Fleet Current Condition

Fleet 20 Year Infrastructure Plan: Renewal


Continuous Improvement: The City’s Asset Management System

The City’s Asset Management Steering Committee is leading and coordinating the following AM improvement initiatives.

SustainabilityTheCityhasparticipatedinmanysustainabilityinitiativestoincreasebothawarenessofenvironmentalimpactsinthecommunity and to reduce the City’s annual energy consumption.

Thepillarsofsustainabilityincludeenvironment,socio-culturalandeconomiccomponents.Whilethesefactorsareoften included in the City’s planning processes, there is a need to improve the transparency and consistency of applying sustainabilitycriteriaandobjectivesintheCity’sassetmanagementsystemfromstrategictooperationallevels.

Leadership in Asset Management Program (LAMP)Nanaimoisoneof12municipalitiesacrossCanadaparticipatinginafederalprogramtodevelopassetmanagementtools.Thesetoolsincludeassetmanagementgovernancedocumentsanddefinedlevelsofservice.

ExpectedbenefitsfortheCityare:

• AssetManagementPolicy(AMPolicy)forCouncil’sapprovalthatwillestablishgovernanceparametersforthemanagementoftheinfrastructureusedtoprovideCityservices.Thepolicywillalsodescribeguidingprinciplesadoptedinapplyingassetmanagementtoachievetheorganization’sobjectives.Theseprinciplesmayincludesustainability.

• StrategicAssetManagementStrategy(SAMP)documentthatarticulateshowtheorganizationdeploysresources,processesandsystemstomeetAMobjectives.TheSAMPwillfocusonspecificactionstobeundertakenintheorganizationtoimprove/enhanceitsAMcapabilitiesandcompetenciesandtodevelopastructuredsetofactionsaimedatenablinggood,orwhereprovencost-effective,bestAMpractices.


• Definedlevelsofservice(LOS)willidentifyspecificperformancemeasuresattheoperational,managementandstrategiclevel.ThesemeasureswillinforminfrastructureinvestmentdecisionsandprovideimportantfeedbackontheeffectivenessoftheCity’sAMsystem.

Risk Assessment FrameworkNanaimoisparticipatinginafederalgrantprogramtodevelopariskframeworkthatwillsupportinfrastructureinvestment decision making.

Staff TrainingAMtrainingandlearningopportunitiesareprovidedtostaff.

Information ManagementAMisdataintensive,andtheCitycurrentlyusestheGISsystemandothersystemsandtoolstomaintaininventoryandconditioninformationonitsassets.AGISStrategicPlanisunderway.Aprimaryfocuswillbeassetmanagementinformationneeds.Abusinesscaseisbeingdevelopedforacomputerizedmaintenancemanagementsystem(CMMS).Thissystemwouldintegrateoperatingactivitieswithassetinvestmentplanning.Furtherdevelopmentandimplementationofconditionassessmentprogramsforfacilitiesandparksamenitiesinfrastructurewillbeincludedinfuturefinancialplans.


Appendix


Appendix

Appendix A

Asset Management ReservesIn2013,Councilapprovedthefollowingannualincreasesforcontributionstoassetmanagementreserves.In2017,theannualcontributiontotheGeneralAssetManagementReservewillbe$4.7million.

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022GeneralAMReserve 1.0% 1.0% 1.0% 1.0% 1.0%SewerAMReserve 5.0% 5.0% 5.0% 5.0% 5.0% 4.0% 4.0% 4.0% 4.0% 4.0%WaterAMReserve 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

BelowisasummaryofcontributionsandwithdrawalstotheCity’sassetmanagementreserves.


Definitions


Definitions

Definitions

Asset:Ausefulorvaluableresourcewiththeintendedpurposeofprovidingabenefitorservice.

Asset Management: Anintegratedapproachinvolvingplanning,engineeringandfinancetoeffectivelymanageexistingandnewmunicipalinfrastructuretomaximizebenefits,reduceriskandprovidesatisfactorylevelsofservicetothecommunity.

Asset Management Plan:Aplandevelopedforthemanagementofinfrastructureassetsthatcombinesmulti-disciplinarymanagementstrategies(includingtechnicalandfinancial)overthelifecycleoftheassettypeinthemostcost-effectivemannertodeliveraspecifiedlevelofservice.

Asset Management Policy:Endorsedbyseniormanagementtoestablishresponsiblegovernanceforthepracticeofassetmanagement.Thepolicyincludesguidingprinciplesinapplyingassetmanagementtoachievetheorganization’sobjectives.

Asset Management Strategy: Focusesonspecificactionstobeundertakenintheorganizationtoimprove/enhanceitsAMcapabilitiesandcompetenciesandtodevelopastructuredsetofactionsaimedatenablinggood,orwhereprovencost-effective,bestpractices.

Asset Management System: A structured approach for the development, coordination and control of activities for managing assets that alignorganizationalactivitiestodeliverservicesandmeetorganizationalobjectives.

Asset Type:Groupofassetsthathavesimilarcharacteristicsand/orfunctionality.

Development Cost Charges (DCC): TheLocalGovernmentActallowstheCitytocollectmoniesfromdeveloperstooffsetnew/upgradedinfrastructureinvestmentneededforgrowth.TheCityofNanaimohasenjoyedaprolongedperiodofsteadygrowthandthatgrowthisexpectedtocontinue.TheCityhasbeencollectingDCCssince2001.PeriodicreviewsoftheexpectedinvestmentininfrastructureandchargessupportCouncil’sdecisionregardingrates.ThecurrentDCCreviewprocessisnearingcompletion.

ISO: InternationalOrganizationforStandardizationisaninternationalstandardsettingbodycomposedofrepresentativesfromvariousnationalstandardsorganizations.

Level of service: Acompositeindictorthatreflectsthesocial,environmentalandeconomicgoalsofthecommunityandmayincludeanyofthefollowingparameters:safety,customersatisfaction,quality,quantity,capacity,reliability,responsiveness,environmentalacceptability,costandavailability.


Definitions - con’t

Lifecycle costs: Lifecyclecostsrefertothetotalcostofownershipoverthelifeofanasset.Thismayincludebutisnotlimitedtocapitalcosts, operating costs, maintenance costs, renewal costs, replacement costs, environmental costs and decommissioning costs.

Stakeholders: Internalandexternalpeopleandorganizationsthatcanaffectorbeaffectedbytheorganization’sactions.Examplesincludemembersofthecommunityincludingbusinesses,Council,employees,unions,suppliersandothergovernments.

Sustainability: Thepillarsofsustainabilityincludeensuringthatthecurrentsocial,economicandenvironmentalcommitmentsareconsideredininvestmentdecisionsandthatthosedecisionswillnotcompromisetheabilityoffuturegenerationstomeettheirownneeds.

Upgrade: Investment in added or enhanced components to existing infrastructure assets designed to increase service capacity required forgrowth.Upgradingmayalsoberequiredtomeetbuildingcodechanges,newregulations,adjustedservicelevels,ortechnologyimprovements.

Acronymns

AM Asset Management

AM Policy Asset Management Policy

DCC DevelopmentCostCharges

ISO InternationalStandardsOrganization

SAMP Strategic Asset Management Strategy

Documents

CITY OF NANAIMO 20 Year Investment Plan and Asset ... · CITY OF NANAIMO 20 Year Investment Plan and Asset Management Update March 23, 2017 . Page 2 20 ea vee Pa a e aagee ate Executive