Approve the 2024 Asset Management Plan, including the baseline asset levels of service…

11:36Which has climate change component and then our single-use item strategy phase two

11:42so on

11:44Item 5.1. I would ask Mr. Terry Gaiman our general manager engineering and transportation

11:50Services and Monica Silva manager corporate asset management to make their presentation, please

11:55Good afternoon everyone mr. Mayor and members of council and the community

12:27I'm pleased to be here today to present an update to the city's asset management plan

12:32So my name is Terry Gaiman

12:34I'm the city's general manager of engineering and transportation services and city engineer and I'm joined today

12:39By Monica Silva the city's manager of corporate asset management in the presentation today

12:49We're going to cover the background progress and overview of the plan

12:53Now there is a substantial volume of information in the report and

12:58Also in this presentation and so before we go further. I just want to highlight a few things for you to keep in mind

13:04First is why are we here?

13:06We're presenting the asset management plan ahead of the July 1st regulatory deadline set by the province

13:12The city's asset management plan provides answers to a number of questions like what does Guelph own?

13:18Where is it? What is it worth? What condition is it in?

13:22What is the remaining useful lifecycle and are the desired levels of service being delivered?

13:29And one of the requirements of the Ontario regulations is that the city documents existing levels of services

13:35That the assets provide which we are doing through this 2024 asset management plan

13:40And the city also has to document desired asset levels of service by July 1st 2025

13:47So accordingly staff will be reporting back early next year with updates to today's plan

13:53Second is why does it matter?

13:55So we're presenting the asset management plan ahead of the multi-year budget

13:58So council understands the state of the city's assets and so council understands the principles of asset management

14:04infrastructure renewal state of good repair and sustainable funding levels

14:08Council should know that the asset management plan is a significant input in cities infrastructure renewal strategy

14:14Which is a key financial strategy that continues to respond and evolve and mature as updated asset management information becomes available

14:23This is critical information as it relates to investment in Guelph's future and

14:28Third what are some of the key takeaways for you to know?

14:31First that there are over seven point seven billion dollars in assets of which approximately

14:37354 million are passed due for replacement

14:40This represents the infrastructure backlog which will continue to and grow if we do not invest in critical infrastructure repair work

14:47Current analysis projects that the city will reach sustainable funding by

14:512044 and you're going to hear more about that and these numbers as we present to you today

14:56But it's important to know that they truly are a moving target that changes assets are created

15:02renewed or increase and decrease in value over time

15:06So those are a couple of the key highlights for you to keep in mind as you hear today's presentation and as you consider the report

15:15Now to talk about asset management alignment within organizational strategy

15:19So of course as you know everything starts with our strategic plan an asset management is certainly a key part of the foundation

15:24Speller for future Guelph

15:26From there there are countless inputs that go into preparing the asset management plan and ultimately the plan is then foundational to Guelph's strategies

15:34Related to infrastructure renewal growth and service enhancement that informed the multi-year budget

15:39To prepare the plan it takes the collaborative efforts of the organization

15:43Led by the city's corporate asset management team who provide overall guidance and support and lead the data management and analysis work

15:49And we're also closely supported by our finance team who's linked in terms of analyzing the outcomes of the asset management plan

15:57The team strives to understand the financial needs for operations maintenance and repair of an asset

16:03Combining that information with the future replacement cost of an asset is critical as is knowing what financial resources are available

16:12Understanding the lifecycle of our assets and budgeting for their replacement at the appropriate time mitigates risks

16:18Enabling staff to provide responsible public service

16:22We know that financial resources are not limitless

16:24Which is why it's critical to understand what can and should be done in priority with available funding in terms of importance of the plan

16:35It's important for understanding the current state of assets and the impact on city services

16:41Once completed the plan is vital in the city's efforts to protect and enhance the quality of life in Guelph by ensuring the best possible

16:47Decisions are made for our assets

16:49It supports evidence-based business cases for budgets and long-term financial forecasting

16:54It drives longer-term thinking and planning and it supports financial sustainability

17:00So with that I'm going to pass it over to Monica to continue explaining the asset management journey and to give you an overview of the asset management plan data

17:07Thank You Terry

17:13It's through the mail through the mayor. I will continue the presentation today

17:17So going forward the city of Guelph meets the Ontario regulation

17:2158817 the journey first began in 2017 when the team was established followed by the first asset management plan and policy

17:29Which was approved by council in 2017

17:32Since then the team has presented an overall city update in 2020 then followed by 2021 where the plan focused on our core assets which were

17:40Roads bridges and culverts water wastewater and storm water and this plan already started to include the current levels of service

17:48Today we are presenting an overall city asset management plan that includes all service areas along with our existing levels of service

17:55services in

17:57accordance with regulatory requirements next year

18:00We will be returning to present an update to the plan as well as our future proposed levels of service

18:05This will provide more details on what costs would be required and a review of the financial strategy to be able to fund the levels of service set for our community

18:14The key to asset management is following the principles to create an asset management system

18:25So that it is integrated into all the work that we do

18:28Each level takes time to pass and our corporation has taken great strides to increase our maturity and our leaders for aim practices when compared to surrounding municipalities

18:38Since 2017 the asset management team has established our asset management policy

18:43We've conducted many condition assessments to enhance our asset inventories and significantly improve our asset registries

18:50We've developed an asset management

18:52prioritization tool to assist in prioritization

18:56prioritizing data to assist departments to develop their financial forecast

19:00Which has allowed the city to integrate asset management data into our budget analysis

19:06We've delivered training within the corporation to better the understanding and general practices of AM across various departments

19:13We've also presented at

19:15various conferences such as the corporate network of asset managers to present our project successes

19:21And we've been supporting the corporation through the new enterprise resource planning solution which heavily supports the maturity of asset management

19:28This is very crucial for asset management as this investment will include the ability to better understand the maintenance in relation to our assets

19:37To be able to understand the renewal related to the asset longevity and risk

19:41it will also strengthen the accuracy in all of our data so that we can create those data-driven decisions and

19:48Be able to have a consolidated asset management data registry

19:52The entire asset management body of work is a process of continuous improvement and it requires involvement across all levels of the organization to be successful

20:02The continuous improvement work matures our asset management service and increases the accuracy and confidence in our data and findings

20:09An example of how we are maturing is that the corporate asset management plan has engaged with internal audit to ensure

20:15We are aligned with the enterprise risk management framework

20:18The enterprise risk management is very important as this factors into the decision to prioritizing

20:25Protecting funding for infrastructure renewal over service enhancements as we continue to meet the Ontario regulations

20:34One of the goals of the first asset management plan was to establish a baseline of asset management practices to inform a work plan for

20:41continuous improvement of the asset management program into the future

20:45The goal is to increase maturity and confidence in the and work and findings

20:49Since 2020 our team has been focusing on strengthening the city's data

20:54Condition assessment risk management and information systems to improve the maturity of the city's am practices and data

21:01Currently gathering detailed information on our existing inventory of approximately 200,000 assets has been the main priority

21:08This is a collaborative effort with the entire corporation

21:12Today we are confident confident in the analysis, but note that there will still be improvements to come as we continue maturing

21:19This again is also crucial to support the enterprise resource program as without good data the export of information would be useless

21:27When the ERP maximum tool is implemented it will improve staff's ability to complete asset management reporting analysis

21:35And to ensure that it is more accurate and also done more efficiently

21:39The Ontario regulation also requires the city to specifically address how climate change risks affect the infrastructure assets and how they will be mitigated

21:50These costs

21:52Estimations for work have been identified within this plan currently the city of Guelph has existing and or planned

21:58Adaptative measures to address 90% of the highest risk interactions

22:03Many of these evolved from the first climate adaptation plan

22:07Which was delivered to the city in 2023 to better identify the challenges posed by the climate change and what the city should do to mitigate for those challenges

22:17Areas where infrastructure will potentially be adversely affected by more extreme weather conditions were identified and

22:23adaptation measures were developed in total the climate adaptation plan identified 163

22:29Measures for the city to pursue and these have been integrated into the plan in the next few slides

22:36I will provide a summary of the asset management plan

22:40The 2024 asset management plan analyzed over

22:43200,000 assets with a total replacement value of seven point seven billion

22:48Compared to four point four billion in 2020

22:52The cost per resident to provide perspective is

22:5650,278 per resident compared to 31,000 per resident in

23:012020 this is increased by 62 percent

23:05The change in value from the past asset management plant is a result of several factors

23:10including inflation an improved asset inventory and

23:14Growth in the asset base as more assets have been created over the past four years

23:19The charts charts on the slides present the two funded categories on the left being tax supported and on the right are the rate funded service areas

23:27The core assets which include transportation water

23:30Stormwater and wastewater make up 80% of the overall inventory

23:34The average condition of the city's assets as a whole is fair

23:40The scale that we use is from past due very poor poor fair good very good or not available

23:48About 62% of the assets by replacement value are in fair or better condition

23:53The balance about 38% are in less than fair condition

23:58Approximately one billion worth of assets are in very poor condition

24:02meaning that the value of work in need of replacement or repair in the near term within the next 10 years and

24:09386 million worth of assets are considered past due which means that these assets are past their theoretical service life

24:16But remain in service

24:18These services these assets in past due are very poor are at a higher risk of failure or not being able to deliver their intended levels of service

24:26Therefore representing an important metrics that requires adopting a solution

24:31Core assets make up about 59% of the total backlog at

24:35227 million but make up 97% of the replacement value of assets which are in very poor condition

24:42The risks and consequences of not addressing this needed renewal will reduce performance and quality of critical infrastructure

24:49Much of which will be ensuring the health and safety of the city is protected

24:55Maintaining public infrastructure in a state of good repair is generally the most cost-effective strategy over an assets life cycle

25:02Although it is not the only consideration of municipal asset managers and may conflict with other budgetary priorities

25:09postponing repairs raises the risk of service disruption and

25:13increases the costs over time as

25:15Mentioned earlier we have been aligned with the internal audit team to ensure we're aligned with regards to the enterprise risk framework

25:23Overall the city of Guelph is not alone as other municipalities are reporting similar scenarios the financial accountability

25:30Office of Ontario reported on terrios municipal infrastructure backlog in 2020 at 52 billion

25:36This is presenting 11.9 percent of the total cost to replace the assets

25:41When comparing the city of Guelph to the province the backlog is 5.24 percent of the total cost to replace the assets

25:48The city of Guelph is below the average backlog within the province of Ontario which is positive

25:53But like other municipalities we need to continue investing in its existing infrastructure to reduce the service

26:00continuity risk

26:01Now I'll be switching over to the levels of service component within the plan

26:09Following the state of the assets if an asset is not in good condition it will not be able to meet its intended level of service

26:16To help further explain future target levels of service can be compared to a hotel rating

26:22Whether it's a three four or five star the city of Guelph can decide whether we are performing or providing providing services at a certain level

26:30This can be further explained by what assets do we provide? How do we maintain those assets?

26:36How often do we maintain those assets? How do we spend our staff time and funding to provide the services that residents want?

26:44Some examples can be the ability to drink clean water or ensuring that residents are able to safely travel to work

26:50When determining targeted levels of service you need to find the balance between affordability

26:55And this suggested levels of how our assets are developed

26:59Maintained and spread across the municipality to our existing assets and not new assets relating to a service enhancement

27:06The 2024 asset management plan documents the existing levels of service across a variety of metrics and each of the asset chapters

27:13These have been established in conjunction with other with each asset owner and operator

27:19The level of service metrics in the 2024 and 2025 asset management documents

27:24Will not override the current levels of service that we currently have set today and

27:29The 2025 plan will set our desired future level of service targets

27:34To further explain a good example of an asset level of service is the average pavement condition rating of a road

27:42This would be a technical level of service, which is a metric that aggregates the conditions of all the city's roads in one

27:48What makes this a good metric is that the condition rating describes various characteristics about the road

27:53Whether there's cracks roughness and it is standardized so that we can understand how the average road should be used and what the experience should be

28:02We can also predict how the condition will decline without continued road maintenance and replacement

28:06Which can be valuable in demonstrating the achievements of our capital renewal and maintenance

28:12for roads the community service level would also be described as a road network covers

28:17Roughly 600 kilometers and provides connections to all of our properties within the city

28:22Now that we've completed a little overview of the well majority of the overview of the asset management plan

28:28I will pass it back to you Terry so that you can conclude with our financial summary

28:32Okay, just about there

28:38Just want to share a little bit on sort of the financial analysis that's included in the plan and then I'll offer a few closing remarks

28:44To wrap our presentation up so in terms of the financial analysis the asset management plan

28:49Analyze different periods of time to understand how projected investment levels align with forecasted infrastructure renewal needs

28:56What is shown in the graphic that is on the screen here is that the in the short term

28:59There is a gap between the needed funding and the projected investments

29:03Over time as infrastructure renewal work is completed and investments continue to occur the gap begins to close

29:11Until the gap is closed the city's infrastructure backlog will continue to increase and once funding levels meet the required investment needs

29:18Which is projected to be in 2044 then the backlog no longer grows and instead begins to reduce

29:24It is important to note that these projections are continuously changing as factors such as growth and new assets

29:29inflation and data maturity all evolve

29:32The city's the city responds to this ongoing change by ensuring the infrastructure renewal financial strategy evolves and responds using asset management input

29:41So there's certainly a challenge ahead of golf, but as you heard we are not alone from recent articles other municipalities have announced similar financial analysis

29:49At the same time work over the using golf has us on the right track

29:53The city's infrastructure backlog is lower at 5.5 percent of total replacement as compared to it was in 2020

30:00This means we are making progress with the financial strategies that we have in place

30:04Including in annual increases to infrastructure renewal capital funding and the execution of the city's capital program resource strategy

30:11The city's entrenched itself as an industry leader in asset management practices

30:21Over the past four years there has been significant progress in the asset management program and the program continues to work towards a more advanced state as you've heard

30:28The program is continuously refining and evolving its modeling based on its assets condition and lifecycle analysis

30:35It's a truly a long-term strategy and the numbers will change as assets age and data maturity increases

30:41The information presented to you today is based on the reserve fund levels established in last year's multi-year budget process

30:48But we know the information in last year's process are changing now

30:51And that is why the second recommendation in the staff report is that staff bring back

30:56updated information during the budget process later this year

30:59Staff recommend this because there is budget preparation work ongoing now that will change the inputs into the sustainable funding analysis

31:07We just presented to you

31:09By bringing updated information this fall

31:11We can ensure council is presented with full understanding of how the infrastructure renewals financial strategy is

31:16Adapting and responding to mayoral budget direction while we try to maintain the principles of asset management

31:23Including infrastructure renewal state of good repair and sustainable funding levels

31:27And with that I'd like to close with one sort of final thought

31:30The city's infrastructure is aging and needs replacement

31:34The asset management plan is critical to tackle the challenge by ensuring wealth has a strategy to mitigate service level risks and improve assets

31:41So they can continue to thrive the data presented through the plan clearly indicates that the city must continue investing in infrastructure

31:49Reducing the infrastructure gap should be a priority to reduce the chances of chances of asset failure

31:54And the consistent use of asset management principles and guidelines with an effort placed on continuous improvement

31:59Will lead to an optimized balance between asset performance and asset risk which creates the real value for the city of Guelph

32:06And its current and future residents

32:09So with that mr. Mayor and members of council

32:14I'd like to thank you again for the opportunity to speak to you today about our updated asset management and I will pass it back to our chair

32:21Thank You mr. Gaman. We do have one delegate

32:24I just want to say that if you're in the gallery and you're wondering about ducking out to use the washroom or grab a coffee

32:29Here's how it works if you're not familiar with how it works. We'll go to our delegations

32:34Then we'll go to questions from council and then we also have the a single-use

32:39Plastics conversation after that

32:41So you do have a bit of time if you're here for the last agenda item today, okay?

32:47So you're aware, but I know everybody wants to hear from Lyall McNair who is our first delegate

33:02Sometimes you just want to know

33:04Mr. McNair welcome

33:06Thank you. I believe you've delegated before so you know that you have five minutes at four minutes and thirty seconds

33:13You will hear a chime just letting you know that you have thirty seconds remaining. Okay. Thank you

33:19You're worship mayor Guthrie counselors and staff. I'm here today to stress the need to extend the planning horizon for the city of Guelph

33:26There's an urgent need for someone to start looking 75 to 100 years from a planning perspective

33:32Let me explain

33:33When we put pipes in the ground for infrastructure including storm sewer sanitary sewers and potable water supply

33:39The expectation is they will have a functional life of 75 to 100 years

33:44When a builder constructs a building the expectation is it'll last between 75 and 100 years

33:51We end up with when the planning horizon stretches out for just 25 to 30 years

33:56We end up with infrastructure residential construction and commercial buildings that are only partially through their lifecycle when we need to make a change

34:04This can only contribute to higher costs for everyone. I

34:08Want to focus on the arterial roads that have been identified on schedule five of the updated?

34:142024 official plan

34:16When I look at these streets, I think this part of the plan has shown foresight

34:21These streets need to become the hosts for major infrastructure trunks and where key public transit routes will be based

34:27They also provide the connectivity for the entire city

34:31From a design standpoint

34:33We need these trunks to be close to the points of use and we know that public transit can only be sustainable with ridership

34:40We need to facilitate high-density accommodations and workplaces close to these thoroughfares

34:46My overlay schedule five on schedule two the land use plan. There's I think I had a slide. I know it's up there or not. I

34:55Find many situations where we have low density residential designations on our territorial roads

35:00I simply do not understand the logic here

35:03The official plan reads for our territorial roads

35:06Direct access from local roads and individual properties shall be limited to avoid interference with the primary function of the roadway

35:15Yet low density residential designations and zoning necessitates more and not fewer driveways

35:21I tell my real estate clients when they buy a house. They're actually buying two very distinct items a

35:28parcel of land and a building on it called an improvement

35:31Over time the value of the land will increase and the value of the improvements will decrease

35:36Subject to the work put in to maintain and modernize the structure and of course the impact of inflation

35:42At some point the property would be sold for what is effectively land value and a new structure or structures we built

35:49Where we currently have larger lots from the 50s and 60s

35:53We will find a multitude of smaller lots that require driveways and parking

35:58But the vision that stretches for the life of that new building will have created obstacles in the implementation of a future plan

36:06Someone needs to champion that view of future wealth

36:09I've talked with developers and builders and realtors throughout the province and they all echo my perspective that the municipal planning

36:17Horizon is too shallow so they have to expand time and money to get the approvals to revise the existing plans

36:24Golf is not unique in this regard, but there is the opportunity to be a leader

36:30Golf is under pressure to provide housing for more and more people

36:33I know there's a domestic water supply limitation of about

36:37215,000 residents and we expect to get there by about

36:412055

36:42But if anyone believes we can keep the city from growing you are mistaken

36:46The pressure will continue and I can see a gulf in a hundred years with about five hundred thousand people

36:53Further there will be a lot of effort put into doing so within the existing municipal boundaries and that means further intensification

37:01So I ask what do you want that gulf to look like?

37:05More than anything it requires people to look a long way ahead

37:09One of the best examples of that kind of vision is the Bloor Danforth viaduct in Toronto that was built in

37:151913 with the expectation there would be a need for rail transport to cross the Don River in the future

37:22That lower deck started to be used by the TTC in 1966

37:2753 years later. I

37:29Firmly believe the best way to demonstrate the kind of forward-looking vision for gulf is to revise the official plan to reflect nothing less

37:37Then medium density residential housing along with commercial institutional and industrial uses

37:43within 100 meters of each arterial road in the city as a further suggestion

37:48I think we should change the criteria for medium and high density residential unit maximums from 100 and 150 units per hectare

37:56Up to 150 and 250 units respectively with the strategic growth areas moving from 250 to 400 units per hectare

38:05Gulf is going to continue to grow. We need to embrace the future. Thank you for your time

38:12And you can see I know if you still in the chart up there or not

38:15But there's a huge number of of our territorial roads with low density residential housing on them. Okay

38:23Stay where you are. Mr. McNair there are members of council who have questions for you on IC cancer alt

38:31Thank you very much chair work

38:33Thank you for your presentation, mr. McNair through the chair to you

38:39your reference to the blur aqueduct viaduct

38:43Does cause me a little bit of concern

38:45Are you suggesting that we should embrace a mega project like a pipeline from Lake Erie to accommodate a half

38:53Million people so let me do that in two parts number one

38:58I think part of the infrastructure that that

39:02Mr. Gaiman talked about and his colleague earlier on when you're replacing and

39:08Rebuilding infrastructure it should be based on a very very long-term perspective because those pipes in the ground are going to last for a long time

39:18But regarding the the pipeline from Lake Erie I can assure you there is going to be a pipeline from Lake Erie

39:25Coming up to serve the region of Waterloo

39:27They're expecting a million people within a few years time and a lot more down the road from there

39:33I think it's incumbent upon Guelph to at least be part of the conversation

39:39so that at some point in time we can

39:42tie into that pipeline system to accommodate our

39:47Future population of a half million people. Thank you very much

39:54Okay, any other questions from council for mr. McNair

39:57Seeing none. Thank you very much for your delegation. Thank you

40:01Okay, I need a member of council to move the two staff recommendations

40:07Councillor Goller and a seconder

40:09Council boost still great. So the two staff recommendations are on the floor. Are there any questions from members of council?

40:17Councillor Downer

40:20Thank you for you

40:22Chair

40:24I had asked this question earlier today. So I'll just

40:30Sort of go over it again. The last time the asset management plan came in last term

40:35I asked about green infrastructure and how we will and there was a lot of talk then about incorporating

40:42trees and

40:44our urban forests into the infrastructure

40:48asset management plan and

40:50So I just want to wanted to know so I did see

40:55Under parks that there was trees and there was some of that in there

41:00but like is there a plan for street trees and things like that because that's sort of

41:06Where we're headed. I think across the country and asset management is also the incorporation of green infrastructure

41:12As opposed to just the grade that we've had

41:15Through the mayor, thank you for your comment and question and we are considering natural assets within our asset management plan

41:26We have currently completed phase one of the project and phase two phase three will cover other

41:32trees in

41:33Open spaces and those street trees will be considered

41:36We are currently including them in the inventory

41:39However, within the financial analysis, these have not been included

41:43But will be reviewed over the next year to be incorporated in future asset management plans

41:49Okay, so it's being done in a phased approach the incorporation of the green infrastructure. Okay, great

41:53Thanks, and can I just make a comment just well done and Guelph. I think continues to be a leader in this. I remember

42:00with my corporate memory that we

42:05We were we were doing asset management planning in Guelph

42:08Quite a few years before the province made it mandatory and at the time we were one of the very few municipalities that was doing it

42:14So kudos for staff and we've won awards for it. So kudos for the work that you've done on this

42:20It's it's very good. And maybe just one more question following up on mr

42:26McNair's question

42:28Can we so we're sort of dictated by the province and planning horizons can is there an opportunity for municipalities to plan?

42:35beyond that

42:37The 2050 that they provide for us

42:41So through the chair to counsel downer so as you point out our population targets are dictated to us by the province

42:49Whenever we we don't have anything beyond

42:542051 that is I would say reliable so when we are starting to look at

42:59What the population might be 75 years 100 years from now?

43:03We don't have any reliable data on that if there were for instance

43:09Direction from the province to grow beyond what our capability is now as you know from the water servicing

43:15Sorry the water supply master plan

43:18That came to you in I think it was 2022

43:21There's only so much population that

43:24Our groundwater is going to be able to support if it goes beyond that we would imagine that

43:30There would be other projects that would have to be

43:34Initiated probably not by by Guelph it would when we're talking about the big pipe for instance

43:40That wouldn't be just the city of Guelph that would be a whole bunch of municipalities probably at a provincial level. I'm probably at

43:48From what I understand because it was looked at in 2007

43:52in the in the billions so

43:56That would be a large project if that

43:58That direction were to start to come down from the province those just in those discussions were to start

44:04Of course, we would be part of that but that has not that has not come to us at this point

44:09and as we're

44:11renewing infrastructure and rebuilding infrastructure do we anticipate

44:16That extra capacity every time we do that my understanding is we do we go beyond what what even that horizon that

44:242050 horizon and what might be there

44:26So through the chair to counsel down with all of our

44:29Whenever we design something we always do apply a contingency to it to

44:35Account for any fluctuations and what the assumptions were when we made those design decisions

44:41but it wouldn't be to accommodate three times the amount of

44:46population and

44:47to up-size the pipes without any

44:51Valuable information we can't afford to do that

44:56So we to answer your question. Yes, we do have

45:00Additional capacity that we do apply as a as a matter of course as a contingency

45:06Okay, thank you

45:07You're Guthrie. Well, thank you chair or working through you

45:13I guess I just wanted to ask so a bit of history on this we can

45:192000 and was it 15 or 16 the infrastructure levy was introduced

45:25With a 10-year horizon that we thought at the time using corporate asset management would sort of

45:32Reach us to some sort of a sustainable amount of funding and it was recognized at the time

45:37Which has been echoed in the report today that?

45:41It would be refined consistently updating and so, you know, here we go surprise. There's this update today

45:47It's a heck of a lot more

45:49Where I look at the financial

45:52Costs and considerations within the report. I guess I just wanted to know

45:57has staffed on any work and

46:00The updated report to determine exactly how much money would be required to try to get us to a

46:09More sustainable amount earlier. I mean I should see the graph there was that kind of blue graph with the red line

46:15It goes way down and way up it by 2044

46:18But has any work been done to consider like if we wanted to try to meet it by 2040 or by 2035

46:26or by 2030

46:28How much

46:30increase in infrastructure

46:32That would be required required for to meet earlier goals

46:37so through

46:42the chair to

46:44Mayor Guthrie, I'm at this point. We have not done

46:48Financing scenarios that would calculate an earlier an earlier goal

46:54It's something that we could take away. I would though just hesitate to say that

46:59You know as we're looking at the next year's budget and you know with with the more

47:05Looking at reducing investment to meet the target

47:09that

47:10That that might that would be a challenging endeavor to to speed up

47:15That investment at this point in time

47:17Okay, thank you. What is something I'm interested in as much as it's the mayoral budget

47:24It doesn't mean I want to ignore what opportunities are there or should be there as well, right?

47:28So if there's that's a good takeaway for you to consider my second question through you chair is

47:36Just about

47:38Capital and operating so if all of a sudden you had a whole bunch of money to help with the infrastructure

47:44Do you think that we have the internal operating?

47:48Project managers and such to be able to actually implement and deliver on the infrastructure that's required

47:54So through the chair to the mayor, I think that is a bit of a complicated question in some ways

48:03We certainly work to right-size our work plans and our capital plans to the resourcing levels into the financial

48:10Resources that are available and so staff over over time. I've really worked to strike the right balance there

48:16Certainly with a reasonable influx. There's probably some some ability to continue to deliver a bit further

48:21But at the same time, there's a limit to the staff's capacity there

48:26And if I could through the chair if I could just add I guess it would

48:30Depend on what that money was supposed to be used for whether there would be opportunities to

48:36Do some state of good repair associated with projects that are already being done

48:41So as as mr.

48:42Gaiman mentioned we do right-size our staff so we don't have staff waiting for an influx of money to come in

48:49However, if for some reason some did we we would love that

48:53But we certainly look at an opportunity to see what projects that we already have on the ghost that we could use it most efficiently

49:02Thank you. My last question through you chair is I can't find it right now. I think it was one of the attachments it had sort of a

49:09Maybe a one-year horizon of some upcoming events and or engagement that might be happening

49:14And I thought I saw one that said something like you're gonna do maybe open houses or get like surveys

49:20about satisfaction around some of the

49:24The work that's being done here. Am I right so far am I describing that right? Yes, okay?

49:29So I'll just say I'll say this as a comment into a quick question is what's been nice about and I don't know if my colleagues would agree

49:36But what's been nice about the corporate asset management plans over the last 10 years is that it actually helps us as the elected officials

49:44To answer questions about why is it my road fixed?

49:48And then we can go to the corporate asset management plan go well

49:52Because you're not on the list right now because there's this list

49:56From you know a scientific

49:59Perspective that these ones are first before yours

50:03So my question is as you move into this next stage of like engagement and surveys and stuff like that

50:08like what are you doing on a waiting of

50:12you know

50:13the technology the technical aspects of what a corporate asset management plan is versus the optics or people

50:22Giving inputting engagement, which we want don't get me wrong of course

50:26but

50:27Might conflict with what the actual technical

50:31Outcomes of a corporate asset management plan are can you just describe that friction that might occur or how are you going to?

50:38Get over that so through the chair to the mayor

50:40Thank you for that question

50:42You're right in that there is some community engagement coming up and part of that is because the regulation requires city staff to

50:48Define baseline levels of service that assets are currently providing now today

50:53And then it requires us to establish what the desired levels of service are for the city and as part of that

50:59It requires us to get community input

51:02So we'll be careful in terms of how we go about that process

51:05But we want to make sure that the community is informed and educated especially through this upcoming

51:10Engagement work. It's not meant to to your point to change technical prioritization

51:15So if something proposes a high level of risk it's passed due for replacement

51:19It's going to continue to make its way to the top of the city's list in terms of capital prioritization

51:25Those are my questions madam chair. Do you mind if I just do a comment now? Do you want to do it later?

51:30No, you can go ahead. Okay. Thank you in my last couple minutes here

51:33I just brought this up

51:35Online here and if anyone wants to Google like I did the AMO which stands for Association of Ministers of Ontario

51:42Social and economic prosperity review

51:45So I happen to you know, we all not just me we're all connected with AMO and I just want to yell out a couple things here very quickly

51:55municipalities provide critical services to

51:57to everybody at 60 billion dollars annually for public services and infrastructure and

52:04Currently the province. Let's see here nearly a third of all

52:09Municipal spending in Ontario is for services in areas that are our provincial responsibility

52:17Social housing long-term care public health childcare social services

52:22in fact

52:24in

52:252022 municipal expenditures in those areas outpaced the provincial contributions by almost four billion dollars and that's growing if

52:33You want to know why municipalities are having a problem with infrastructure

52:37It's because the province is not coming to the table in the jurisdiction in the lane

52:41They're supposed to begin to help us with

52:44those issues and if the province actually stepped up and actually started helping us in the areas that I just described and some others

52:51We would actually have the funds to help us with the infrastructure that we're just talking about today

52:57I know it's pretty blunt to say it that way, but it actually has to be stated

53:01So the Association of Ministers of Ontario, which is

53:04443 municipalities Toronto's not in yet. So 443 we are aligned on this issue for a new deal

53:12with the province and the feds but mostly the province to help out municipalities in regards to these issues and

53:19Finally, I said the the the term a new deal on purpose

53:23It is very interesting to me that you see a new deal for Toronto

53:27Or you see a new deal with Ottawa and all the other municipalities

53:33Including Guelph are saying oh well, why do they get a new deal and we don't and this is how it's unfair for

53:39Municipalities to continue to try to on the backs of property taxpayers pay for things that are provincial jurisdiction

53:46When we should be actually able to catch up with this infrastructure backlog a lot quicker than we could if the province would just help it

53:52Thank you

53:54Thank you, Mayor Guthrie. Councillor Allt has a few questions and so does Councillor Billings

53:59Thank you very much chair O'Rourke. I have two questions. I'll be very quick with them

54:05Recognizing of course our time constraints

54:07The first question and I apologize if the battle in the cold you might have said this

54:13You may

54:15References made by staff to support evidence-based business cases

54:19I was wondering for the public and staff could please explain please go into what we mean by evidence-based business cases

54:27So through the chair to to Councillor Allt so for example Councillor Allt that the city's asset management

54:35Program and in the inputs and outputs that come from the work that we do that we've just explained

54:40Our significant inputs into our city's long-term financial strategies

54:44So the infrastructure renewal strategy is the example that we reflect on most often

54:50That strategy is born from the information that we that we spoke of today

54:57So the pictures of the good bad and the not so good roads

55:01Would be evidence-based

55:03Decision making

55:07Through the chair. That's correct. Okay. Thank you. The next question. I believe it's for our financial staff, but

55:13Through you chair O'Rourke. I am wondering

55:17What does the mayor's 4% ceiling?

55:20Due to affect asset management

55:23I heard it it's somewhat talked about and I too am in favor of sustainability sooner

55:29But I am challenged by that particular cap on how we might sustain our assets

55:36given

55:38limited

55:39financial capacity

55:43Sure. So through the chair to Councillor Allt

55:46We're still in budget development right now. So it's really hard to comment on the exact outcome, but

55:52um

55:53We would I would say that

55:55We you know part of the reductions that that staff are looking at include capital investment

56:01um, and

56:03And wherever possible where we have tried to preserve the funding on infrastructure renewal because of the risk

56:10um, and looking at the enterprise risk management and and really trying to preserve that wherever we can and so

56:16We're hopeful that it's not going to have a significant impact

56:19But we are um kind of just wanting to flag that it's something that we want to look at as we bring the budget back

56:25Because it may change from what's before you today those financial

56:30schedules

56:32Yeah, yes. Thank you very very much for that. I appreciate that clarification and I expect most residents will as well

56:39Quick comments. I want to thank staff for the work you have done and in particularly

56:43I do want to give kudos to the attention paid to internal audit and the work being done by mr.

56:49Jelastic and internal auditors in the past

56:53Thank you, chair. We're going to councillor billings

56:56chair, yes

56:57chair

56:58Sure you madam chair. Um, okay, just uh

57:02A question on on clarity because we're going to get a report back the level of service

57:08And it mentions a number of times in the report. We need to increase our investment, which is budget impacts tax non-tax

57:17so

57:17When would staff if staff propose an increase because it says we need to increase our investment

57:23Is that for the next round of multi-year budget or would it be within the confirmation years?

57:30In this multi-year budget

57:35So through the chair to councillor billings at this point in time, we're not anticipating

57:41Increasing it beyond what's already part of the adopted budget and so sometimes it's also

57:48To consider the the multi-year budget as it was tabled did include increasing transfers

57:55already to infrastructure renewal and so at this point in time, we don't anticipate bringing forward

58:02a further request however

58:04That can change and just in response to the the conversation earlier. Maybe there's some scenarios that we also report back on so

58:11I do think

58:13You know, it's evolving as we as we approach the the budget

58:17Okay, and so because of the

58:20Level of service and whatever comes forward from that. There is a possibility of the increase in investment for the next multi-year budget

58:30Is that what i'm hearing?

58:31So through the chair to councillor billings, I think that the the level of service part of this conversation that you're going to

58:40Start to turn your minds to

58:43Through the fall and into next year

58:46If you as a council increased your level of service

58:50So let as an example if you set your standard level of service at you know

58:55Good, but then or what it's say it's at good right now and you and you look to change that that target level of service to go to

59:03To a higher level then there could be the situation where additional investment to meet that target is required

59:10And so I do think that the level of service decision making will

59:14Feed into or inform budget in the future

59:17So will that messaging that you just described when we have the community input

59:23um

59:24Will they be aware of that?

59:26Because like you said if it's an increase in the level of service

59:31It's it's more than likely going to increase

59:34The the budget pressures

59:38So through the chair to councillor billings if I can jump in and help

59:41I think you're correct in the sense that that is certainly part of the message if we want

59:46Better things they typically cost more and so that will certainly be important for people to understand

59:51Okay, and then also through you madam chair

59:55um

59:55Going back to and I totally agree with the the mayor's comments here

59:59But in this this plan that we have even though historically we have received

1:00:05Uh

1:00:06Grant money from upper levels of government

1:00:08So I'm not talking about currently what we do receive like for example gas tax or anything like that

1:00:14But in this forecasted plan

1:00:17There's nothing in there with maybe

1:00:20a proposed

1:00:22Proposed grant money from upper levels of government that would not be included in this in this plan even though

1:00:29Historically we have received so is that correct?

1:00:34So through the chair to councillor billings

1:00:38At this point in time we've only included the grants that are

1:00:42Committed grants like the gas tax like you mentioned. Um, there's no inclusion of potential

1:00:48future grants uh right now

1:00:50But definitely in the future if we if more funding became available that would be an input to to again updating that model

1:00:58And and then therefore we could close the gap earlier than then 2044

1:01:04Correct. Yeah, okay. Thank you, turn

1:01:08Thank you councillor billings. Okay. Any other questions for staff?

1:01:13Okay

1:01:14Sorry, just to thank you through you chair

1:01:17Yep, that's very quick. Sorry just following councillor billings

1:01:21um

1:01:22Sometimes the grants that we get

1:01:24They don't even align with the infrastructure needs that we have in fact many times

1:01:28They're they're newer things newer shinier things that they're looking to get get done

1:01:34So have you ever broken out the infrastructure grants that we've been given to what would go to renewal versus new?

1:01:41And then they kind of force municipalities to go along for the ride on the new stuff

1:01:47um so

1:01:50through the chair to

1:01:52Council or sorry to make out three

1:01:54No, we I would say we haven't done that level of analysis

1:01:57um, I will agree with your comment though that much of the the

1:02:03The new grants that we see are about newer things. Um, and uh, and so it is it is difficult for us to then apply it to infrastructure renewal

1:02:12There are scenarios though where you know a project

1:02:16does have the benefit of

1:02:18um

1:02:19addressing like a really and I think about you know, some of the

1:02:23The downtown infrastructure where you've got like the benefit of growth and infrastructure renewal happening on a project and where then

1:02:29Grants can really kind of like help leverage both

1:02:32Aspects, but and we do our best to try and apply the grants to get the most value

1:02:39Thank you. I have a quick question

1:02:41um in the

1:02:4324 28 multi-year budget process

1:02:46It's my understanding staff took all the master plans that were approved

1:02:49looked at everything and thought

1:02:51We cannot afford to do that in the time frame, right?

1:02:55So upwards of 600 million dollars of capital projects were pushed out to be smoothed out to be dealt with in the next

1:03:01number of phases

1:03:03So what is the impact of pushing out those capital projects on the asset management plan?

1:03:13so so um to the chair, maybe I'll I'll start and look over to my right for some help, but uh

1:03:20I I would say that um

1:03:23I don't know if we have an impact that ties exactly to the decision last year to do that work however the the

1:03:31the

1:03:33all of the budget data that was used to

1:03:36Then that has incorporated into the document today is built off of what is in so I don't know if we can respond necessarily to exactly like

1:03:45What the impact of the change was by doing that and maybe I'll just uh look over to mr. Gayman

1:03:51So to the chair and maybe just add a little bit more

1:03:55Certainly there there is some competing interest sometimes right with respect to sort of the growth side of things in the infrastructure renewal

1:04:01side of the equation and and when we do our capital budgeting, we are absolutely seeking to

1:04:06Best balance the prioritization where we can of course the funding sources

1:04:11Are different for different types of capital projects as well and and so to Tara's point

1:04:15It's kind of difficult to answer your question that way

1:04:17But certainly that competing interest is there and staff do work to best balance it

1:04:22Great thanks, and I will close with the comment as well

1:04:26So I sat in on a consultation with the province around asset management

1:04:29We are required every municipality is required to undertake this massive amount of research and maintenance and costing

1:04:38And tagging everything and understanding the level of service and there is no commensurate payment or plan to compensate

1:04:45Municipalities or invest in municipalities in any way to shore up its infrastructure. So I find that

1:04:52Really

1:04:54Short-sighted on behalf of the province

1:04:57Particularly when we know there'll be climate impacts and we need to be acting towards climate change

1:05:01adaptation and mitigation

1:05:03So I think we need to continue to call on the province to support municipalities and the infrastructure needs

1:05:10And at the same time I want to commend our our engineering and our finance folks who this past year

1:05:15I think it was our last committee the whole

1:05:18Came forward with a report to say this was our largest year for capital projects

1:05:22And that those capital projects actually came in under budget. So well done

1:05:27Okay

1:05:28I will call the vote if there are no more

1:05:30Comments any more comments or questions?

1:05:33Seeing none. I will call the vote on those two recommendations. Is anyone opposed?

1:05:39Nope, and so that passes unanimously. Thank you