Approve the 2025 Corporate Asset Management Plan, including the targeted asset levels of service…

3:32:03chair and also being a great job as a mom at home too. So we get it. Happy to jump in here. We have

3:32:12our 2025 corporate asset management plan and levels of service. We're going to have a presentation.

3:32:19Monica is here, manager of corporate asset management for us to walk us through the presentation

3:32:26and then it's over to council for any questions or follow up. So welcome. We adore corporate asset

3:32:35management. We just live and breathe for it. So it's over to you. Terry is clapping for that one.

3:32:40Okay. Go for it. Here we go. Thank you for allowing me to present the corporate asset management and

3:32:56the levels of service plan today. In today's presentation, I will take us through some background

3:33:10on what is asset management and why the plan is so important, followed by an overview of the 2025

3:33:15asset management plan, the recommended levels of service, and then recommended next steps.

3:33:22So to just provide a little bit of context about what is asset management, asset management is an

3:33:28integrated approach involving different business units such as finance, operations, maintenance,

3:33:34engineering, planning and other business practices. The objective is to effectively manage existing

3:33:39and new infrastructure to maximize benefits, reduce risk and optimize cost while providing

3:33:45satisfactory levels of service to the residents. Asset management is critical to the growth

3:33:50and progress of the city. It is important to invest in asset management because it supports

3:33:54financial sustainability, evidence based decision making, delivery of services according to the

3:34:00needs of the community while managing associated risks. It also supports growth and demand

3:34:05management. On this slide, we show you how asset management fits into the big picture

3:34:13for the city of Guelph. Of course, everything starts with our strategic plan and asset management

3:34:18is certainly part of the foundation's pillar and future Guelph. From there, there are countless

3:34:23inputs that go into preparing the asset management plan. Ultimately, the asset management plan is

3:34:27then foundational to Guelph's strategies related to infrastructure renewal, growth and service

3:34:32enhancements that inform the capital and operating budgets. To prepare the plan, it takes the full

3:34:37efforts of the organization led by the corporate asset management team who provide overall guidance

3:34:42and support for asset management as well as leading data management and analysis efforts.

3:34:47The team strives to understand the financial needs for the operations, maintenance and repair of an

3:34:52asset. Combining that information with the future replacement costs of an asset is critical, as is

3:34:57knowing what financial resources are available. Understanding the lifecycle of our assets and

3:35:02budgets for their replacement at the appropriate time mitigates risks enabling us to provide

3:35:07responsible public services to our community. We know that financial resources are not limitless,

3:35:13which is why it's critical to understand what can and should be done in priority with available

3:35:18funding. On this slide, we show you how the city of Guelph meets the Ontario Regulation 58817.

3:35:28All municipalities in Ontario are legislatively required to show our asset management planning

3:35:32by publishing and maintaining our asset management plan. Our plan defines the existing and targeted

3:35:38levels of service, the assets we own to provide those services and what assets are needed in the

3:35:43future. The current practices and strategies that are in place to manage those assets,

3:35:48the costs of doing that work now and into the future, and recommendations to improve our asset

3:35:53management planning. The journey first began in 2016 when the team was established followed by the

3:35:58first asset management plan and policy approved by council in 2017. Since then, the team has presented

3:36:04an overall city update in 2020, then the 2020 plan, which was focusing on our core assets,

3:36:11and that indicated our current levels of service, then that was followed by our plan last year in

3:36:162024 to report on the current levels of service for all city assets. And today we are here presenting

3:36:21an overall city asset management plan that includes all service areas with the main focus

3:36:25on the targeted levels of service. On this slide, we aim to illustrate the elements that make up an

3:36:33asset management plan. The asset management plan integrates information from multiple sources

3:36:38and across multiple service delivery areas. The plan is important for understanding the

3:36:43current state of assets and the impact on services. It also helps determine future service levels and

3:36:48how to get there. The asset management plan work includes coordination with service area staff to

3:36:53assess their assets and condition. The review of completed ongoing and approved capital projects

3:36:59on the assets affected by them, establishing current and future levels of service, and incorporating

3:37:05recommendations from the climate adaptation plan into the asset management work into the city.

3:37:11Asset management work has made great strides in breaking silos, improving communications between

3:37:16asset management and core service areas, and engineering to discuss their assets and any

3:37:19new information about them. Our asset management planning was helpful as the city reprioritized

3:37:25infrastructure renewal projects to determine which projects to move forward and which to defer

3:37:29out due to the fiscal constraints we are seeing in this multi-year budget. Asset management planning

3:37:35is an ongoing and long-term process that allows municipalities to make the best possible investment

3:37:39decisions for their infrastructure assets, including building, operation, maintenance, renewal,

3:37:45replacement, and disposal. Since being first established in 2017, Guelsa & Program has greatly

3:37:53moved forward with improvements in the accuracy of asset information, adoption of whole life

3:37:59planning for asset needs, and approved collaboration among all city departments and staff. This work

3:38:04will continue and as the program continues to mature, the city will meet the goal of

3:38:08obtaining an advanced AM maturity rating by 2030. As work continues toward reaching the

3:38:14advanced asset management maturity level, the corporate asset management program has improved

3:38:18the level of sophistication in detail in both the funding allocation, data, and project

3:38:23optimization, and the integration between asset management planning and capital budgeting.

3:38:27Budgeting will continue to be strengthened. Overall, this will help ensure the best possible

3:38:32decisions are being made regarding our city's assets and levels of service, using evidence-based

3:38:37data to develop our business cases, project needs, and long-term financial forecasts supporting

3:38:43sustainability. Now I will move into the recap of the 2025 asset management plan. Here on the plan,

3:38:52here on the slide, you can see the total value of the core and non-core assets. If the assets that

3:38:58support city services were replaced today, it would cost approximately $7.7 billion, or you can look

3:39:04at it at about $50,000 per resident. Overall, the average condition of the city's assets is

3:39:12considered fair and are meeting the expected levels of service delivery. This is a trend that has

3:39:17remained steady since the city's first corporate asset management plan in 2017. However, because

3:39:22this is an average rating, there are both positive and negative exceptions to the status.

3:39:27This data is primarily the same that was presented in 2024. The one improvement is that there is an

3:39:32update to our city's road pavement condition data. Most importantly, about 63% of the city's assets

3:39:39are considered in fair, good, or very good condition. The counter to this is that there remains 30%

3:39:44in less than fair condition, including about a billion worth of assets assessed in very poor

3:39:50condition, and another $355 million assessed as past due, or alternatively deferred from being

3:39:58completed in previous years, also known as the backlog. The backlog is predicted to grow to

3:40:03$388 million by the end of 2034. A past due condition rating does not define an asset that

3:40:10is no longer functional, but it does identify a potential value of work that should be planned

3:40:15for as it represents assets that are at a higher risk of unplanned failures and generally require

3:40:20more regular maintenance. Assets with a not applicable rating do not have a defined condition

3:40:25rating. The risk and consequences of not addressing this needed renewal will be reduced performance

3:40:30and quality of critical infrastructure, much of which is related to ensuring the health and safety

3:40:35of the city is protected. Maintaining public infrastructure in a state of good repair is

3:40:40generally the most cost-effective strategy over an asset's life cycle, although it is not the only

3:40:45consideration of municipal asset managers and make conflict with other budgetary priorities.

3:40:51Postponing repairs raises the risk of service disruption and increases the cost of so-di

3:40:57associated with municipal infrastructure over time. The corporate asset management plan is

3:41:02aligning with the Guelph's enterprise risk framework. Overall, the City of Guelph is not

3:41:07alone as other municipalities are reporting similar scenarios. The Financial Accountability

3:41:13Office of Ontario reported Ontario's municipal infrastructure backlog in 2020 at $52 billion,

3:41:19representing 11.9% of the total cost to replace the assets. When comparing the City of Guelph to

3:41:25the province, the backlog is 5.24% of the total cost to replace the assets. The City of Guelph is

3:41:31below the average backlog within the province of Ontario, which is positive, but Guelph, like other

3:41:36municipalities, need to continue investing in its existing infrastructure to reduce the service

3:41:42continuity risk. Now moving on to the levels of service, just to provide a little bit of background,

3:41:52levels of service describes the outcomes customers experience through the delivery of services the

3:41:57City of Guelph provides. Every day people use City assets to travel safely, get clean drinking water,

3:42:03and many other services. Typically residents are more focused on the services they receive,

3:42:08but behind the scenes the City is making investments, delivering operations and maintenance,

3:42:12and weighing trade-offs between cost and risk that ensure the customer service is being received.

3:42:18Following the state of the assets, if an asset is not in good condition, it will not be able to

3:42:22meet its intended levels of service. I will now provide an overview of what an asset level of

3:42:27service is to help explain future target levels of service can be compared to a hotel when looking

3:42:34at ratings. The City of Guelph can decide whether we are performing at a certain level, whether it's

3:42:39a 3, 4, or 5 star. This is further explained by what assets do we provide, how do we maintain them,

3:42:46how often do we maintain those assets, and how do we spend our staff time and funding to provide

3:42:51the services that residents want. Some examples are the ability to drink clean water or ensuring

3:42:57residents are able to safely travel to work. When determining targeted levels of service,

3:43:02you need to find the balance between affordability and the suggested levels of how our assets are

3:43:07developed, maintained, and spread across the municipality to our existing assets,

3:43:12and not new assets relating to a service enhancement. The 2024 AMP documents the existing levels of

3:43:18service across a variety of metrics in each of the asset chapters. These have been established in

3:43:24conjunction with each asset owner and operator. The level of service metrics in the 2024 and 2025

3:43:30asset management plan documents do not and will not override levels of service set and approved

3:43:35through various master plans or governed by other regulatory maintenance standards.

3:43:40The 2025 asset management plan will include desired future levels of service.

3:43:45Surrounding municipalities are in the process of meeting the legislation by documenting an

3:43:49existing level of service and aiming to set those targeted levels of service through outreach in

3:43:54the community. Here's an example of our roads to help better explain levels of service. On the

3:44:01upper half of the slide, you will see the scale used to report the condition of the road, starting

3:44:06at good and moving from satisfactory, fair, poor, very poor, and failed, along with the requirement

3:44:12treatment types that are commonly completed during these condition types. This is the pavement

3:44:17condition score that is used to analyze our roads to help the city prioritize and develop the

3:44:22capital forecast. On the bottom of the slide, you can see three images starting from the left,

3:44:28illustrating the illustrating a road in excellent condition, which is a high level of service,

3:44:33then to fair and very poor, being a low level of service. To help further explain, these charts

3:44:42illustrate the roads pavement condition index using the data collected in 2019 on the left

3:44:48and the data collected in 2024 on the right. When comparing the two charts, you can see the

3:44:53conditions are improving with more roads within fair and good and less within poor, very poor,

3:44:59and past due. This is a good news story illustrating the impacts of a strong road reconstruction

3:45:04program, as well as improve better data. This also helps us visualize how our levels of service to

3:45:10the public have increased. Now taking a look at all of our city assets, I will explain the strategy

3:45:18recommended for our target level of service. Level of service are a critical component of

3:45:23asset management and that they define the standards and expectations for the performance and quality

3:45:27of assets. The 2025 AMP quantifies the level of service provided by infrastructure systems

3:45:34through a series of performance metrics for each service area. Overall, the city strives to provide

3:45:39services to the community that are accessible, cost efficient, provide customer satisfaction,

3:45:44demonstrate environmental stewardship, and function reliably and safe within suitable scope.

3:45:50To meet the requirements of Oreg 58817 regarding future level of service targets,

3:45:55the city determined that representing the projected future condition of the assets based on the

3:46:00current capital plan and funding assumptions as presented through the 2025 budget confirmation

3:46:07was the best methodology to use. Until the city reaches sustainability, the city is unable to set

3:46:13increased level of service targets that will increase over time as they will not be achievable.

3:46:19Once sustainability is met, there will be no backlog and then set targets can be created.

3:46:25The projects within the 10-year capital budget and forecast updated through the

3:46:282025 budget confirmation will impact service delivery to the community. If projects in the

3:46:36existing capital budget and forecast are deferred, the city's expected level of service will decline.

3:46:42On the contrary, if projects are advanced sooner,

3:46:46then currently projected, the city's level of service will improve. Ultimately, the city faces

3:46:52complex tradeoff challenges between the cost, risk, and level of service to be delivered.

3:46:57Set plainly, the target level of service are expected to decrease over the next 10 years,

3:47:02as you can see in the image on the screen. Over time, the currently projected levels of funding

3:47:07for infrastructure renewal, the condition of our assets will continue to decline, indicating that

3:47:12we need to keep investing and prioritizing our existing infrastructure to the maximum extent

3:47:19possible. The target is to ensure the level of service do not decline further than forecasted.

3:47:24This will require continued investment in infrastructure renewal.

3:47:31Moving on, I would like to highlight the forecast analysis for the whole city. For many years,

3:47:36Guelph has been working to attain a state of financial sustainability in its asset management

3:47:40practices, meaning the available funding matches the expected renewal needs. Comparing the renewal

3:47:45needs to the funding strategies approved in the 2025 confirmed budget for both the tax supported

3:47:51and non-tax supported service completes the analysis of when the city might reach a point of

3:47:55sustainability. On this slide, you could see the forecast analysis for non-tax funded assets

3:48:00for water, wastewater, and stormwater. The grain line represents the forecast renewal needs,

3:48:06and the orange line is the forecasted funding. The prediction for the non-tax funded services

3:48:12optimistic for these services that is estimated that the sustainable target may be reached around

3:48:172031. This is the point when the revenue from municipal taxes will equal the forecast renewals

3:48:23for that year, and they will continue to be greater in the forecast in future years.

3:48:32For the tax funded services, examples such as roads, recreation centers, facilities, vehicles,

3:48:38and other, the results predict that the sustainable target funding will be reached around 2043.

3:48:44These assets are at a higher risk of deteriorating and can lead to increased service disruption

3:48:49and higher maintenance costs. To address the risk created by the backlog, the city would need to

3:48:53prioritize reaching sustainable funding targets. The previously council approved strategy of

3:48:59increasing tax supported infrastructure renewal funding by 1% of the tax levy annual plus inflation

3:49:05is no longer factored into capital budget assumptions. These refer to page 11 and 12 of the

3:49:11committee of the whole report to see the breakdown of where tax supported capital funding is predicted

3:49:16to go over the 10-year period. As we saw in the previous slide, non-tax supported services are

3:49:21on track to reach sustainable funding before 2031. However, on this slide, you can see that

3:49:31tax supported is met in 2043. If the city continues reducing funding, the backlog continues to grow

3:49:38and sustainability will be pushed out further. The city has established itself as an industry

3:49:46leader in asset management practices. Over the past five years, there have been significant

3:49:50progress in the asset management program and the program is positioned to move from a core

3:49:54to an advanced rating by 2030. As the city's asset management program continues to mature,

3:50:00there are growing improvements in the confidence of data which improves the accuracy of calculations

3:50:05including the city's backlog and sustainable funding targets. The 2025 asset management plan

3:50:11establishes the city's level of service targets based on the fully funded 10-year capital forecast

3:50:16which is ultimately based on affordability. In the future, if the city's capital budget increases,

3:50:21the level of service will increase. If the city's capital budget will decrease, the level of service

3:50:27will decrease. Each year, staff will need to assess the cost, risk, and level of service and

3:50:32identify the trade-offs. Once the city reaches sustainability, set achievable targets can then

3:50:37be made. Overall, target level of service are lower than the existing due to decreases in funding,

3:50:43but the goal is to slow the growth of the backlog and get to sustainability which

3:50:48will hopefully eliminate that backlog. The data presented through the asset management plan clearly

3:50:53indicates that the city must continue investing in our existing infrastructure. Reducing the

3:50:58infrastructure gap should be a priority to reduce the chances of failure of any asset or infrastructure

3:51:03service. The consistent use of asset management guidelines and principles with an effort placed

3:51:08on continuous improvement will lead to an optimized balanced between asset performance and asset

3:51:14risks creating real value for the city of Guelph and its current and future citizens. Our assets

3:51:20are aging. The city needs to maintain them before they fail. This plan confirms that continued

3:51:25infrastructure renewal investment is required to support both tax supported and non-tax supported

3:51:31services to reduce the backlog and achieve sustainable funding targets. Balancing investment

3:51:36and infrastructure renewal funding requirement with other legislative requirements and organizational

3:51:41priorities is outside the scope of the plan, but we hope that this information is useful

3:51:46as we head into the 2026 budget. And with that, I would like to thank the mayor and members of

3:51:53council and we are happy to take any questions. Thank you, Monica. Really, really appreciate

3:52:01the presentation. I'm going to maybe embarrass myself. Is that your first time doing a presentation

3:52:06with us or am I embarrassing myself? You're embarrassing yourself. Okay. All right. All right.

3:52:12Well, for the first time, I'm going to say you did a really great job. So thank you very, very much.

3:52:21Yeah, a lot to digest there. And so how about how about we start with a recommendation on the floor

3:52:29to approve the 2025 corporate asset management plan, including the targeted asset levels of

3:52:34service for submission to the Ministry of Infrastructure on or before July 1st, 2025.

3:52:41Guller and Ault will second it for me. Thank you. Ault, and we can open up for questions

3:52:48or comments just at the same time if you want. Okay. So go ahead. Thank you very much, Mayor

3:52:55Guthrie. Questions and comments are probably contained within each other. First of all,

3:53:01I do want to thank staff for a very, very thorough warning that we've just received.

3:53:07I think the key to this report is page 16 of the slides. If the city continues reducing funding,

3:53:13the backlog continues to grow and sustainability will be pushed further out. And I think besides

3:53:19page 16, page 12 also provides a visual and perhaps a visceral assessment of some of the

3:53:25challenges we face. But because of this, we've used the word funding here and I do want to be

3:53:32clear for the public. What is it we mean by funding? Is it taxes? Is it DCs? Is it grants? Is it

3:53:39accommodation? Through the Mayor to Councillor Allt. It would be mainly our infrastructure

3:53:51renewal funding, not including DCs. Okay. Thank you. The reason that I'm asking this is that perhaps

3:53:58what I see from the public, what I feel from the public a lot, is concerns about roads. And I think

3:54:04that that's why page 12 is so important. People will say that we are falling behind

3:54:09further and further. And when I look at the graphs, I'm not filled with confidence. When I look at

3:54:18the target LOS and the road condition forecast, we are looking at approximately,

3:54:26I think it's 50% of our roads being in poor, very poor or past due condition by 2034, if I'm

3:54:37correct on that. And I'm not, I'm just, I'm hoping you can fill me with confidence that we can actually

3:54:45get beyond that because that's clearly the criticism that the public has. When Councillor

3:54:51Boussetteel and I both came here, we got dumped in a pothole by her very lovely daughter by accident.

3:54:58And as Councillor Boussetteel said, we better talk to the city about that pothole. And so,

3:55:04can you fill me with confidence on that? And maybe for Ms. Baker or perhaps for Mr. Matthews,

3:55:14I'm somewhat frustrated because I think that constraints are being put on time and again by

3:55:18the province and yet we're being asked by the Office of Accountability to address some of our

3:55:24shortfalls. And I guess I'm asking for a comment on that one as well. And that's, that's, that's

3:55:29some total in my comments, Mayor Guthrie. So through you, Mayor Guthrie, to Councillor

3:55:39out in terms of your roads question with respect to the conference, I think what you're seeing in

3:55:42the graph on page 12 is exactly that confidence. So you're seeing staff's delivery of the investment

3:55:47that Council has been making. And so you have been investing more in the roads program over the past

3:55:51four, five, six years. And so what you're seeing is that change in the life cycle condition of the

3:55:56city's roads. When I say roads, I'm talking about that surface pavement, the asphalt that's on top.

3:56:00We're not talking about all of the infrastructure that's underneath. And that's what you see sort

3:56:04of in that more total asset graph that's on the following pages that, that paints a slightly

3:56:09different picture. Sure. So through the mayor to Councillor Allt, I struggle with what to say

3:56:23overall, I would agree there's continuing to be limitations put on the funding of municipalities.

3:56:32We're doing our best, I would say, in terms of maximizing every grant opportunity that we can

3:56:38in order to complement the funding from taxes and non-tax. So I think we're doing everything we can.

3:56:47But, but yeah, there are continuing pressures through, through other levels of government

3:56:53decision making. And thank you for that. I don't know whether Mr. Matthews wants to follow up or not,

3:56:57or did Ms. Baker, she got it for you. And I do want to thank staff because many times I hear

3:57:02there's only one taxpayer, but what people forget is there's three levels of government and two of

3:57:07those levels are tending to impose upon us some constrictions that make it virtually impossible

3:57:14for us to address both funding and improvements at the same time.

3:57:18Thank you, Councillor Allt. Is there anybody else at all before I call the vote? Sure, Councillor Billings.

3:57:26Chair, Mr. Mayor, I just wanted to ask, because it doesn't include DCs, but with the forecasting

3:57:32level of service and the timeframe for sustainability, if we were to receive grant

3:57:40money, because that was mentioned, grant money in the future, would that, from upper levels of

3:57:46government, would that not help the timeframe for sustainability and shortening it? Or no?

3:57:56Through to Mayor and Councillor Billings. I mean, I think the short answer could be yes,

3:57:59certainly of course, depending on sort of the situation, the scenario, the magnitude of things,

3:58:03but any included, excuse me, any additional funding certainly does help.

3:58:08Right. So really my question was within the forecasting, we're not including sometimes the

3:58:13surprise grant money that we receive. Is that correct?

3:58:18Through to Mayor, so that's correct. The forecasting is just based on the rates and the taxes.

3:58:22Great. Okay. Thank you.

3:58:25Thank you. Councillor Keaton.

3:58:28Thank you. Through you, Mr. Mayor. Do we have any idea of how increased uptake on transit would

3:58:34change how long our roads are lasting and change our financial path?

3:58:49Through the Mayor to Councillor Keaton. We do not have that analysis at this point in time.

3:58:56Okay. Thank you. And through the Mayor, so is the tax funded path set on a yearly

3:59:03tax increase from us, or what do we have to do to maintain that path in terms of our tax rate?

3:59:11Through the Mayor. Sorry, Councillor Keaton, I'm not sure that I understand your question. Could

3:59:19you ask it perhaps differently? Yes, absolutely. So we had the tax funded rate, and so we had how

3:59:28long that was going to take to reach basically parity. And I was just wondering for our funding,

3:59:34because it is on us when we mess with that formula. So what is the formula that we need to kind of

3:59:41stay on in order to reach that? And how could we close that gap faster? Thank you for the clarity

3:59:47in your question. Sure. And Shannon's coming down and happy to have our treasurer jump in,

3:59:51as needed, but I'll get started just with the idea around and making sure that Council understands

3:59:55what we are asking for from you today. We're asking for something that is regulated by the

4:00:01province of Ontario in terms of asset management. So that's the July 1st deadline that says you have

4:00:04to document and have these Council approve target levels of service. What we're suggesting today,

4:00:10and maybe some planar languages, as things decrease as you get the backlog sort of forecast

4:00:14out to 388 million, the target levels of service is to just not let that get worse.

4:00:19So over time, let's continue investing on what is forecast over that 10-year window and try to

4:00:25not let that get worse. And that is the idea behind it. If Council in the future budget years

4:00:32moves funding up, then the increase happens to the level of service. The backlog could reduce

4:00:36quicker if Council defers more of those tax funds out than the backlog has the ability to

4:00:42increase in size and for the levels of service to decrease. But they are target levels of service.

4:00:46There's sort of a, is a bit of a sort of a self-regulating exercise, more than anything,

4:00:51but that's the sort of idea behind it. The mayor, so I can help a little bit. So yes, the tax-supported

4:01:03capital funding is set through the annual budget process. And so that's the time to really consider

4:01:11with the lens of this information that you've provided today about what the levels that we've

4:01:15got included in the projections now will get you in terms of levels of service over the 10 years

4:01:22and to really reiterate the importance of continuing to prioritize that funding. And so

4:01:29you're balancing that of course with affordability challenges for the community. And so the budget

4:01:34process is the time to have those considerations and keep this good, important information in mind

4:01:44is what I would suggest. Great, thank you very much. Great, anybody else? All right, you get me.

4:02:00Just a couple questions. Too many comments. How is the capacity to address the infrastructure

4:02:11backlog? So what I mean by that is we raise taxes, you know, 10% and got, you know, millions of dollars

4:02:20towards the infrastructure work that needs to be done for our assets. Can you even deliver on that

4:02:29from the capacity to actually implement that work? Because we continually, we do have a buildup of

4:02:35unspent capital. I know that it's focused on itemized capital projects, but we have a lot of a backlog

4:02:43in our, you know, in our unspent capital too. So I'm just wondering, you know, you get the money,

4:02:49but it doesn't automatically mean that you can just go ahead and get it done.

4:02:55Yeah, so too, you may have got a great question and you're right, certainly with increased fiscal

4:03:00investment that does require increased human resource investment to deliver the work. I would say

4:03:06the organization is sort of at around that saturation point. Now we do have a capital steering

4:03:11committee that reviews the sort of collective capital plan for the organization, including the

4:03:17staffing resources that are required to that. And we have those conversations with the executive

4:03:20team through the budget as well. And that's the way we monitor it. And that's why we brought you

4:03:24things in the past, like the capital program, resourcing strategy that sort of helped fix a gap

4:03:29in the past. And so now we're sort of like looking forward towards what that next level of investment

4:03:34looks like. And then I just see if our treasurer wants to add anything to that. Okay.

4:03:40He answered for me that. Thank you. The second question I have is still AI.

4:03:48Please correct me if I'm wrong, but I thought I heard that we were piloting something a few years

4:03:55ago with like cameras on the front of our, either our snowplows or the front of our

4:04:03transit or waste trucks. So as they were driving around the city, the AI cameras were able to

4:04:10determine, you know, potholes and other road issues and collect that data and get it back for faster

4:04:16service. And am I first of all, am I right on that? And the secondary to that is, is there more AI

4:04:24that can help us with, with these types of issues? Through the mayor. Yes, you are right.

4:04:33We did look at a pilot where we were installing cameras on our inspection vehicles and other

4:04:40vehicles that we use throughout the city to collect more data on our roads when it comes to

4:04:45potholes and condition assessment information. We did not proceed with that at the time, but we

4:04:51are actually looking at how we could potentially include that in our future planning for our roads,

4:04:57looking at it from the maintenance side, but also for condition assessment.

4:05:01And I think in general, we need to apply more of that AI lens and that's something that our

4:05:05team will, will consider, but no set plans right now. Okay. So would, would, would we as a council see

4:05:15an equipment ask or a software ask in the upcoming budget for that? If it's, if it's a valuable tool

4:05:23to use to help with this or is that something that might be a couple of budgets? Through the mayor,

4:05:29this wouldn't, we don't know at this time, but when we are more aware of those costs,

4:05:37we would bring that forward. Okay. Okay. That's fair. Thank you. All right. Those are the only

4:05:42questions that I have. Well, actually, no, I have one verification question and I'm just

4:05:46picking on my colleague, Councillor Allt here. The way I took your presentation about the roads

4:05:53was that we're actually doing good that the two charts that came up on the, on the screen,

4:05:59I see people nodding their head. So was showing the past to, to, to 2024 levels. And the whole

4:06:06narrative from your presentation was that we're actually doing way better. Now you validated

4:06:11that Terry and your response to Councillor Allt, but am I, I just want to make sure that that's,

4:06:15but we're not leaving this conversation thinking that there could be a narrative in the public. We

4:06:20all hear it. We all do that all the roads, the roads, the roads, but, but the data is actually

4:06:26showing we're doing better than we have ever been. Am I right on that? Yeah. To respond to that,

4:06:32Mayor, I got three, two things. One, yes, you're right. We're on the right track, but, but B,

4:06:36we have a ways to go still. Of course. Okay. Thank you. Okay. Now here's my soapbox. Okay. The

4:06:44infrastructure backlog. We have tried to deal with this at a municipal level for a very,

4:06:52very long time. In fact, and Councillor, I think, Ault and Downer and Billings and Caron would

4:07:04remember, I think it was my first term as mayor, the, the 1% infrastructure levy, right? I mean,

4:07:12this whole conversation about closing the gap and getting, getting to sustainability, you know,

4:07:18that, that was all about at that time, that was all about having to increase taxes at the time.

4:07:26And that was, that was a painful, but sober discussion and outlook as to what we had to do

4:07:35locally, either continuing to kick the can down the road and ignoring it, or to actually add that

4:07:41as a dedicated funds to help with that infrastructure backlog. And at the time when we approved it,

4:07:48we were very early in this corporate asset management stage. And the maturity level that has

4:07:54come from that, you know, when was it? I don't know, eight years ago, whatever. I don't know. Eight

4:07:59years ago to today has been incredible. And I'll tell you where it helps me. Two things. One,

4:08:05let me just tell you, when the, when the public hears that we are collecting more money or within

4:08:11the existing taxes that we do, and it's going to capital, it's going to asset renewal and improvements,

4:08:18I don't, I hardly get any pushback at all. It's on the operating side that I usually hear a lot of

4:08:24guff. But on the capital, they don't mind that they want to see the roads fixed. They want to see

4:08:31new buildings, repaired buildings, etc. So capital is where a lot of the focus does have to be in my,

4:08:38my point of view. And we've done, we've done that. We've done that since, since the last eight, nine

4:08:43years. Where I get frustrated with, and I think, Councillor Allt, for bringing up the other levels

4:08:50levels of government is often, and Councillor Billings brought this up, we can receive grants

4:08:57from other levels of government. But sometimes those grants don't go to the asset management or

4:09:02backlog of the infrastructure we actually got to do. They go to whatever the flavor of the day is,

4:09:08with whatever government it is, where they're looking for the picture or they're looking for the

4:09:12media release. It's true. And so sometimes, we have all this backlog and we're saying, could you just

4:09:18give us the money so we can address these things over here? And sometimes the money comes and it

4:09:22addresses these new shiny things over here, which we'll take, we'll take it and we'll use it, but

4:09:28it's not addressing always the backlog. So there can be this, you know, this anywhere between, I would

4:09:34say 15 to 25% over a 10-year horizon of grant money that goes into infrastructure or whatever,

4:09:41but a lot of it goes to the shiny new things and not the things the municipality actually

4:09:46is needing and every municipality is struggling with this issue. And so we always advocate to the

4:09:51province and to the feds to say, like, give us the certainty that we need. We shouldn't be hopping

4:09:56up and down every other week trying to fill out a new application for some shiny new thing that's

4:10:00happening. If we just had the sustainable funding that we were given, we could plan, we could set

4:10:07our targets, we could have the capacity, we could do the work and we would, there would be no hurdles

4:10:13in the way on a lot of that's there. So I understand that we do get grants and revenue from other

4:10:19levels of government, but so often the frustration is that it's not going to the actual things that

4:10:24we have on this backlog and at corporate asset management list. So that's something I think we

4:10:29can collectively make sure that we are united on if we have those advocacy positions that we need

4:10:34to be talking to other levels of government on. Lastly, I just want to say that I have consistently

4:10:42talked to other people from other cities over the last eight years or so and it comes up more often

4:10:48than you think, oh, I've been talking to your staff about the corporate asset management planning

4:10:53wealth or you guys, didn't you guys win an award for something a couple years in a row? Yes, we did.

4:11:00You guys were doing a seminar somewhere and people were, wealth, wealth, I'm telling you,

4:11:05they're at the top of the list on this corporate asset management stuff. They're always at the

4:11:10top of the list. So you don't get enough credit all of you for what you do. It is, as you said in

4:11:15your presentation, the behind the scenes stuff that people don't see, but it is something that

4:11:21does not go unnoticed by us or by other people that I consistently talked to all the time. Finally,

4:11:26just a little tip. If you guys are getting questions all the time about, oh, why isn't my,

4:11:33I want my road fixed or I want this fixed or whatever, just point them to the corporate asset

4:11:37management plan. Just point them to there because that is the guidebook and because it's required

4:11:43through legislation by the province, it's a very easy answer to the public to say we have to follow

4:11:51this. It's a requirement and it doesn't mean that your road jumps that road or whatever. This is the

4:11:57list. We're doing really good, but we have to follow it. It's always a kind of a nicer answer

4:12:02when I'm talking to the public about those issues because it is what guides us of what we do here.

4:12:08So thank you very much again. Thanks for letting me say those comments. And with that, it's already

4:12:13been moved and seconded. So I'll call the vote. Is there anyone against this? Nobody. Thank you

4:12:19very much. That's great. And now I know this wasn't your first time and I won't say that the next

4:12:24time you're at the podium. So thank you. All right. This next one's quite easy. It's a consent.