TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: February 10, 2025 Report No. EPW-25-003
TO: Committee of the Whole
FROM: Joel Clary, Director of Engineering & Public Works
SUBJECT: Sanitary Sewer Asset Management Plan
RECOMMENDATION:
Recommendation
That the Committee of the Whole recommend that Council:
a) receive the Sanitary Sewer Asset Management Plan for information;
b) direct staff to request increased funding for infrastructure as part of the annual budget process;
c) direct staff to implement the plan based on available funding; and
d) direct staff to update the status of the Sanitary Sewer Asset Management Plan Council Priority Project to complete.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to provide Council with an asset management plan completed by a consultant to sustainably manage the sanitary sewer system in the Township. The plan provides a prioritized way to reduce risk to the Township and identifies the increased funding levels needed to do this.
BACKGROUND:
The Township owns, maintains, and operates the municipal sanitary sewer system, which contains:
• Gravity sewer mains = 57.3km
• Sewer forcemains = 3.8km
• Sewer lift stations = 13
• Service laterals = 3069
• Sewer manholes = 972
In the summer of 2023, Council awarded a contract to GeoAdvice Engineering Inc. and Urban Systems (subconsultant) to develop an asset management plan for the Township’s sanitary sewer network. The purpose of the plan was to build off the previous studies and inspections and provide a roadmap for the Township to efficiently manage the sanitary sewer assets. The plan was to incorporate the Township’s development and inflow and infiltration (I&I) goals, and utilize CCTV inspection videos, which the Township began collecting in 2017. The plan was to provide at least 20 years of lifecycle funding requirements, 10 years of priority replacements, upgrades and maintenance work, an updated sewer model, and a GIS database.
Since the contract was awarded in 2023, staff have been working with the consultants to complete the necessary work identified in the Request for Proposals (RFP). Examples of some of the key work completed include:
- Review of relevant information (OCP, I&I Management Plan, 2019 Sewer Model)
- Meetings with Engineering & Public Works staff to understand the Township’s sewer network
- Meetings with Development Services staff to understand existing, proposed, and future development sewer needs
- Update the hydraulic model of the Township’s entire sewer system (i.e. sewer model)
- Analyze CRD flow meter data to calibrate sewer model
- Analyze sewer capacity and allocated sewer flows
- Compilation and analysis of over 850 sanitary sewer CCTV video inspection reports
- Field inspections of each lift station
- Risk evaluation and prioritization of the sewer system
This work produced the following documents:
- Technical Report - Sanitary Sewer Asset Management Plan - Sewer Model
- Sanitary Sewer Model
- Mains Risk Assessment Matrix
- Forcemains Risk Assessment Matrix
- Pump Stations Risk Assessment Matrix
- Technical Memo - Lift Station Condition Assessments
- Technical Memo - Risk Prioritization
- Technical Memo - Unit Costing Estimating
- Technical Memo - O&M Practices Review
- Technical Memo - Infrastructure Prioritization & Capital Planning
Attached to this report as Attachment 1, is the Technical Memo - Infrastructure Prioritization & Capital Planning, which is the final deliverable for this project and builds on all the above work and documents. All these documents together comprise the Sanitary Sewer Asset Management Plan; however, only the final deliverable, excluding appendices, is attached to this report. The consultant will summarize and explain the entire findings in the presentation in Attachment 2. This narrows the focus to the summary of the findings and excludes the significant technical information developed during this project.
ANALYSIS:
As described in the Technical Memo - Infrastructure Prioritization & Capital Planning in Attachment 1 (Memo) and the consultant’s presentation in Attachment 2, the development of the Sanitary Sewer Asset Management Plan utilizes a risk-based approach. This approach assesses the likelihood of asset failure due to condition or capacity (both existing and future) and multiplies it by the impact of that failure. By using this approach, the consultant is able to identify which assets present the highest risks to the community and prioritize their renewal to proactively address deficiencies before failures occur.
There is no way of knowing exactly when or how an asset will fail, but assets will fail without intervention. Municipalities must accept this and determine how to manage the associated risks. Asset management practices are designed to mitigate these risks. The Sanitary Sewer Asset Management Plan takes a proactive approach to managing these risks by prioritizing asset renewals and identifying funding levels required to ensure long-term sustainability.
The accuracy of risk assessments completed in asset management plans is based on the quality of data available. For the Sanitary Sewer Asset Management Plan, the consultant primarily used CCTV video inspections to assess the condition of the sewer mains. This method of assessment has higher accuracy than using the age of the asset. To assess condition of the lift stations, field inspections were completed. Forcemains, which represent only 6% of the pipe network, were assessed using age data. To assess capacity, the consultant used an updated sewer model calibrated using flow data at entry points into the CRD’s sewage collection system. The consultant then worked closely with staff to identify existing, planned, and future developments.
Based on the findings of the risk assessment, the consultant identifies an annual funding need of $5.7M for the first 10-years and $5.3M for the next 10-years to match the priorities of the network. Alternatively, evenly distributing the annual investment across the life cycle of the assets (example: 50-85 years), funding of $3.9M annually is needed to provide sustainable funding. These funding levels are significantly higher than the previous target of $1.9M that was presented by FIT Consulting to Council at the November 18, 2024, Committee of the Whole as part of Staff Report FIN-24-020. Those projections were solely based on asset age information to determine the need for replacement. The new targets are based on more accurate information, which increases the reliability and decreases the risk to the Township, if followed.
The estimated costs are noted to be conservative in the plan, as the plan assumes full length replacement of pipe segments even though cheaper repair methods could be used at times, such as spot repairs, to extend the life of the asset. When considering the overall funding needs, it’s important to note that not all possible costs are accounted for (example: sewer laterals), so a conservative approach to estimating should not be assumed to result in lower funding needs.
The plan provides funding scenarios to bridge the funding gap and reach sustainable funding levels for sanitary sewers. This information is useful to explain the need for funding and the amount of priority projects being deferred when funding levels aren’t reached; however, staff recommend focusing on the overall need, not the scenarios, which do not take into account other funding the Township requires.
Staff recommend focusing on the current funding levels of $3.8M in capital funding annually for all the Township’s capital work. The plan identifies between $3.9M and $5.7M in funding needed to avoid significant risk to the Township at the current funding levels. If the sustainable funding levels for other municipal assets identified in the previously mentioned FIT Consulting report presented to Council in fall 2024 are used, an additional $7.4M in funding is needed on top of the sanitary sewer needs. Staff expect this number to be low, based on the increase identified in the Sewer Asset Management Plan that utilized more accurate data.
To address the overall funding gap, staff recommend increasing the annual reserve fund contribution within the financial plan. Assuming a target of $3.9M in funding needed for sanitary sewer, and $7.4M in funding needed for the remaining assets, a 2% tax rate increase will close the overall funding gap of $11.3M in 12 years. Using the higher level of $5.7M in sanitary sewer funding will take 14 years using 2% increases. As already described, the actual funding needed to reach sustainable levels is expected to be higher than this. In addition, no funding for new infrastructure (example: sidewalks, turf field, bike lanes) is included in these numbers but is expected.
In summary, the projections in the Sanitary Sewer Asset Management Plan are not intended to be perfect. Instead, they represent the most accurate assessment of the current state of the sanitary sewer system available to the Township. Owning municipal infrastructure inherently involves risk, but this plan offers a prioritized way to manage these risks. The sustainable funding needed to manage these risks according to best practice requires increasing the annual reserve fund contribution. Staff will utilize the plan to prioritize replacements with the funding available.
Environmental Impact:
The Sanitary Sewer Asset Management Plan is designed to reduce risk to the environment. Not managing sanitary sewer infrastructure in a proactive way, increases risk to the environment. Currently the Township is reactive, and implementing the Sanitary Sewer Asset Management Plan will move the Township towards a proactive approach.
OPTIONS:
That the Committee of the Whole recommend that Council:
a) receive the Sanitary Sewer Asset Management Plan for information;
b) direct staff to request increased funding for infrastructure as part of the annual budget process;
c) direct staff to implement the plan based on available funding; and
d) direct staff to update the status of the Sanitary Sewer Asset Management Plan Council Priority Project to complete.
COUNCIL PRIORITY:
Good Governance & Organizational Excellence
FINANCIAL IMPACT:
The overall replacement cost of the Township’s sanitary sewer system is estimated to be $223M. The priority projects over the next 20 years are identified to be $110M. The significant funding need reflects the current condition of the sanitary sewer system. Staff recommend increasing the annual reserve fund contribution within the financial plan to assist with bridging the funding gap. Further analysis of the financial impact is described in the Analysis section above.
COMMUNICATIONS/ENGAGEMENT:
No communications or engagement have been completed on this project.
TIMELINES & NEXT STEPS:
Staff will utilize the annual budget process to request resources to implement the Sanitary Sewer Asset Management Plan and will prioritize projects in the plan with funding available. As asset management is an iterative process, staff will continue to seek opportunities to reduce risk to the Township. In addition to capital renewal works identified, the plan recommends improved operations and maintenance practices to extend the life of assets and reduce the risk to the Township. Examples of this that staff will explore include regular inspection and flushing of mains (example: once every five years).
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Sarah Holloway, Manager of Corporate Services, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
List of all items attached to the Staff Report
1. Attachment 1 - Technical Memo - Infrastructure Prioritization & Capital Planning
2. Attachment 2 - Consultant’s Presentation