CITY COUNCIL MEETING AGENDA PACKET

Page 2 of 9 (AMP) is a multi-year project divided into three phases. Each phase is discussed further in the Discussion section of this report. DISCUSSION Over 200,000 assets were identified; see Attachment 1 for a summary list of assets. Based on the information collected, staff can develop a replacement schedule that incorporates asset condition, lifecycle, and estimated in-kind replacement costs. This new system and information will result in a comprehensive and data-driven version of the City’s Repair and Replacement (R&R) program. Because available funding will not meet all long-term needs, the AMP assigns a risk score to each asset, enabling the City to prioritize investment in the most critical infrastructure. The AMP will provide a prioritized list of asset replacement needs by year and can identify what can be achieved within available funding levels. The AMP also serves as a tool for evaluating when it is more cost-effective to replace a major asset rather than continue repairing individual components. For example, it can help determine whether it is better to replace a vehicle’s engine or replace the entire vehicle, using asset performance history and fleet data to inform the decision. Staff will be using the data collected through the first two phases of the AMP to develop the City's Capital Improvement Program (CIP) and a Facility Master Plan. The CIP is driven by business decisions to improve functionality, increase capacity, or add enhancements—items that go beyond basic like-for-like replacement. These types of decisions are typically made through master planning and engineering analyses to develop the 20-Year CIP plans. The AMP provides the foundational asset and lifecycle data needed to inform that work. Staff will provide a recommendation to the City Council on the 20-Year CIP plan in late Spring/Summer 2026, and a comprehensive Facility Master Plan by the end of 2026. The sewer and water management plans have already been completed. Phase 1 Summary A successful Asset Management program begins with defining what constitutes an asset. At a basic level, an asset is something that lasts more than one year and requires investment, maintenance, and eventual replacement. In a business context, capital assets are typically valued at more than $5,000, generate a return on investment, and are subject to depreciation. In the public sector, however, assets are often used to support community services rather than generating profit. As a result, the factors that determine whether an item should be managed as an asset include access to services, service quality, risk, and community expectations. Many City assets carry higher service and risk implications, requiring redundancy, rapid repair capabilities, stockpiled replacement parts, or shorter replacement cycles. While assets may appear similar in type, their service importance and operational risk can vary significantly. Phase 1 of the AMP, therefore, included a review of asset types to balance risk, level of service, cost of service, and resident expectations, defining the level of assets to capture. The primary objectives of Phase 1 were to: (1) identify the full inventory of assets the City owns and manages, and (2) determine the desired level of service and perform life cycle cost analysis for each group to understand future asset replacement needs. Page 334 of 373