Town of Dalmeny PS 3150 Pilot Project
Introduction
In early 2009, Municipal Affairs, Vemax Managment and the Town of Dalmeny came to an
agreement to work on a pilot project for tangible capital asset reporting. The intent of the project
was to develop insight on how to measure and record town tangible capital assets while
documenting the process for use by other urban municipalities in the province. During the
course of the pilot, all participants followed the Saskatchewan Tangible Capital Assets Reference
Manual found on www.sasktca.ca.
It was determined that the buildings, equipment, and land assets would be the responsibility of
the town while Vemax would be responsible for the linear assets. Once all parties agreed to the
pilot methodologies, Meyers Norris Penny from Moosomin was contracted to provide a
professional accounting opinion on the proposed methodologies.
The following summarizes the methodologies used by Vemax for the Town of Dalmeny. Please
note that once Meyers Norris Penny’s methodologies are available, they will be released on
Sasktca.ca.
Roads
Inventory
The inventory for the Town of Dalmeny roads was completed using town plan drawings and
historical records provided by the town. The plan drawings indicated the location of the roads
while the road segment lengths were determined by scaling from the drawings. The width,
surface type, year of construction and historical cost of the road was determined from historical
records. Records that were used in completion of the inventory include: local improvement
schedules, letters, engineer reports, developer reports and administration reports.
Asset Segmentation
For inventory purposes the road assets were separated into road structure, road surface, curb &
gutter, back lanes, sidewalks, street lighting etc. The road assets were typically inventoried in
sections equal to a town block. For the town’s inventory the road intersections were always
included in the inventory of the roads that ran East-West for simplicity. Roads that were never
‘constructed’ but had been maintained with the application of gravel over the years were
recorded in the inventory and applied a nominal value as suggested by our accounting advisors.
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Valuation
Road Structure (base and subgrade) – the structure was valued by calculating the area of the road
segment and multiplying this by unit rates ($/m2). The asset was valued using historical costs for
the structure found in local improvement schedules and tender records.
Road Surface (asphalt, chip seal, etc.) – the surface was valued by calculating the area of the
road segment (as in structure) and multiplying this by unit rates for various surface types ($/m2).
The unit rates were historical costs for the surface found in local improvement schedules and
tender records.
Curb & Gutter – the curb & gutter was valued by calculating the total length (both sides of the
road) of the curb & gutter for a road segment and multiplying this by unit rates ($/m). The unit
rates were historical costs for curb & gutter found in local improvement schedules and tender
records.
Side Walks / Paths – the sidewalks and paths were valued by calculating the area of the sidewalk
/ path (using segments similar to road segments, Town Blocks) and multiplying this by unit rates
($/m2). The unit rates used were historical costs for sidewalks / paths found in local
improvement schedules and tender records.
Back Lanes – the back lanes were valued by calculating the area of the back lane and multiplying
this by unit rates ($/m2). The unit rates were historical costs for back lanes found in local
improvement schedules and tender records.
Water Mains
Inventory
Water mains were inventoried using town plan drawings showing the location, year of
construction, pipe diameter, and material type for the various water mains. Missing information
for water mains was determined through local improvement schedules, letters, reports, engineer
reports, developer reports and administration reports. Water mains with missing years of
construction were assigned ages based on the construction years of surrounding subdivisions.
Asset Segmentation
The segmentation of the water mains was done in a manner similar to that of the roads when
possible. If the age of construction, pipe material, pipe diameter etc. was similar throughout a
block, the segment was done along Town blocks. The segment was measured from intersection
to intersection (between the water main tees or crosses which were located at each intersection).
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The segments were identified by street name, block number and lot number. However, if the
age, material, diameter of the water main changed within the town block, the section was divided
into smaller segments with identical characteristics. When inventorying the assets that were less
than a town block the use of block and lot numbers allowed for easy identification of the
segment beginning and end. The lengths of the water main segments were determined by scaling
the distance from the town drawings.
Unit Rates
The unit rates used were from historical cost records, unit rates were based on $/m and included
the installation of the water main, the installation of services and other water features. The
Town of Dalmeny has water mains that do not meet the town standards for fire flow or other
purposes. These water mains were included in the inventory but applied a nominal value due to
technical obsolescence. The town also had water mains that had been abandoned; these were not
included in the inventory. The inventory of the water network also included the pumping
stations and the reservoirs.
Valuation
Water Mains – the water mains were valued by calculating the length of the segment of water
main and multiplying this by unit rates for various diameters of pipe. If historical costs were
available these were used for the unit rates. For water mains that did not have recorded historical
costs, the cost of recent water main construction (for similar pipes) in the Town of Dalmeny was
indexed to 2007 and used as an estimated replacement cost.
Water pumping stations – the water pumping stations were valued using recorded historical
costs. If this is not available, the current replacement cost for a similar asset should be used.
Reservoirs – the water reservoirs were valued using historical costs. If this is not available, the
current replacement cost for a similar asset should be used.
Sanitary Sewer Mains
Inventory
Sanitary sewer mains were inventoried using Town plan drawings showing the location, year of
construction, pipe diameter, and material type for the various water mains. Missing information
for sanitary mains was determined through; local improvement schedules, letters, reports,
engineer reports, developer reports and administration reports. Sanitary mains with missing
years of construction were assigned ages based on the construction years of surrounding
subdivisions.
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Asset Segmentation
The segmentation of the sanitary mains was done from maintenance hole to maintenance hole.
The sanitary main was divided into these segments as this is how the sanitary main would be
expected to be replaced. Between each maintenance hole there is a single pipe diameter and
typically (as was the case for Dalmeny) only one year of construction and one material type (an
exception is pipe repairs). The maintenance hole locations were identified on the town
drawings. To identify the location of the sewer main we used the street name, as well as block
numbers and lot numbers (all shown on the town drawing). The lengths of the sanitary main
segments were determined by scaling the distance from the town drawings.
Unit Rates
The unit rates used were from historical cost records, the unit rates were on a $/m basis and
included the installation of the sanitary main, the installation of services, the installation of
maintenance holes and other sanitary features. The inventory of the sanitary network also
included the lift stations and the sewage lagoons.
Valuation
Sanitary sewer mains - the sanitary mains were valued by calculating the length of the segment
of sanitary main and multiplying it by unit rates for various diameters of sanitary pipe. If
historical costs were available these were used for the unit rates. For sanitary mains that did not
have recorded historical costs, recent sanitary main construction (for similar pipes) in the Town
of Dalmeny was indexed to 2007 and used as an estimated replacement cost.
Lift stations – the sanitary lift stations were valued using recorded historical costs. If this is not
available, the current replacement cost for a similar asset should be used.
Sewage Lagoon – the sanitary sewage lagoon’s were valued using recorded historical costs. If
this is not available, the current replacement cost for a similar asset should be used.
Storm Sewer Mains
If there are storm sewer mains these should be inventoried and valued in a method similar to
sanitary sewer mains.
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Exhibit 1 - Town of Dalmeny - Water and Sewer Extensions 1997
Description
Sanitary Sewers
200 mm Sanitary Sewer (33.5m)
200 mm Sanitary Sewer (3.54m)
200 mm Sanitary Sewer (44.5m)
Sanitary Sewer Manhole
Manhole Frame and Cover
Cleanout
Subtotal
Water Mains
150 mm Water main
150 mm Valve
150 mm Tee
150 mm Plug
Hydrant
Subtotal
Services
Excavation and Backfill
100 mm Sewer Service Pipe
Sewer Saddle, Bend & Plug
19 mm Copper Water Service
Pipe
Corporation Cocks
Curb Cocks
Subtotal
Est.
Quantity
Unit Price
Cost
66 m
57.39
3,787.74
103 m
61.57
6,341.71
154 m
66.52
10,244.08
10.6 m
3
1
658.72
220.00
300.00
6,982.43
660.00
300.00
$ 28,315.96
339
5
2
1
2
67.64
615.88
274.90
139.00
3,825.00
22,929.96
3,079.40
549.80
139.00
3,825.00
$ 30,523.16
336
310
32
300
51.22
10.19
70.00
20.90
17,209.92
3,158.90
2,240.00
6,270.00
32
32
41.72
121.82
1,335.04
3,898.24
$ 36,032.10
Total Cost
$ 94,871.22
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Unit Cost calculations
Sanitary Sewer
Total length of pipe = (66m + 103m + 154m) = 323 m
Total cost of main = $ 28,315.96 (includes installation, maintenance holes and cleanout)
Total cost of services1 = (0.5*$17,209.92 + $3,158.90 + $2,240.00) = $ 14,003.86
Unit Cost (with services) 1997 = Total cost / Length of pipe = ($ 28,315.96 + $ 14,003.86) / 323
m = $131.02 / m
Engineering Fee’s and Contingency = 15%
Estimated replacement unit cost = ($131.02 / m) * ( 15%) = $ 150.67 /m
Water main
Total length of pipe = 339 m
Total cost of main = $ 30,523.16 (includes installation, maintenance holes and cleanout)
Total cost of services2 = (0.5*$17,209.92 + $6,270.00 + $1,335.04 + $3,898.24) = $ 20,108.24
Unit Cost (with services) 1997 = Total cost / Length of pipe = ($ 30,523.16 + $ 20,108.24) /
339 m = $149.36 / m
Engineering Fee’s and Contingency = 15%
Estimated replacement unit cost = ($149.36 / m) * (15%) = $ 171.76 /m
1
The cost of the services is equal to one half the total cost of excavation and backfill (the other half will be
included in the cost of the water services) plus the items that are directly related to the sanitary sewer.
2
The cost of the services is equal to one half the total cost of excavation and backfill (the other half is included in
the cost of the sanitary sewer services) plus the items that are directly related to the water main.
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Indexing values to use as estimated replacement costs
Since the construction in 1997 was built using current design standards, we can use the index
(NRBCPI) provided on the Asset Register look-up page (www.sasktca.ca ) to index these recent
construction costs to estimate current replacement costs for similar assets.
Sanitary Sewer (1997) = $ 150.67 / m
NRBCPI (1997) = 63.17%
NRBCPI (2007) = 100.00%
Sanitary Sewer Estimated Replacement Costs (2007) = (100.00% / 63.17%) * $ 150.67 / m = $
238.52 / m
Exhibit 2 - Town of Dalmeny – Street Construction 1997
Description
Est.
Quantity
Unit Price
Cost
Excavation
Gravelled Street (200 mm)
Gravelled Lane (60 mm)
Paved in following year (50
mm)
(prime and flush included)
Valves
Manholes
430 m3
2975 m2
1355 m2
2975 m2
6.00
5.20
2.80
5.85
2,580.00
15,470.00
3,794.00
17,403.75
5
2
120.00
160.00
600.00
320.00
Total Cost
$ 40, 167.75
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Unit Cost Calculations
Road Structure
If the historical costs are unknown unit costs can be calculated from a document similar to that
shown above. Engineering fee3 should be added to all unit costs when estimating replacement
cost.
Total Area of the Road = 2975 m2
Estimated Unit Cost for Road Structure (1997)
= cost of excavation4 + cost of gravelled street
= ($ 2,580.00 / 2975 m2) + ($ 5.20 / m2) = $ 6.07 / m2
Road Surface
If the historical costs are unknown unit costs can be calculated from document similar to that
shown above. Engineering fees should be added to all unit costs when estimating replacement
cost.
Estimated Unit Cost for Road Surface (1997)
= cost of paving (hot mix asphalt) + cost of valves + cost of manholes
= $ 5.85 / m2 + ($ 600.00 / 2975 m2) + ($ 320.00 / 2975 m2) = $ 6.16 / m2
Gravelled Lane
The estimate of unit cost for gravelled lanes (1997) would use, from above, $2.80 / m2.
Engineering fees should be added to all unit costs when estimating replacement cost.
3
Engineering Fees should be added to all unit costs prior to estimating replacement costs. For the
Town of Dalmeny engineering fees of 10% were approximated with a contingency of 5%.
4
The unit cost of the excavation can be calculated by taking the total cost of the exaction for the project. This
number is then divided by the surface area of the road (2975 m2).
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Exhibit 3 - Town of Dalmeny – Curb Construction 1997
Description
Curbs
Swales
Est.
Quantity
Unit Price
Cost
480 m
27 m
35.00
70.00
16,800.00
1,890.00
Total Cost
$ 18,690.00
Unit Cost Calculations
Curb & Gutter
If the historical costs are unknown unit costs can be estimated from a document similar to the
one shown above. Engineering fees should be added to all unit costs when estimating
replacement cost.
Estimated Unit Replacement Cost Curbs (1997) =$ 35.00 / m
Swales
If the historical costs are unknown unit costs can be estimated from a document similar to the
one shown above. Engineering fees should be added to all unit costs when estimating
replacement cost.
Estimated Unit Replacement Cost Swales (1997) = $ 70.00 / m
Estimating replacement costs without recent construction cost information
What if there are no available records for an urban municipality to base an estimated replacement
cost on? If there is no available information, an urban municipality can base their estimates of
replacement cost on work done in nearby communities, as long as the terrain is similar and the
construction is to the same engineering standard for both communities.
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Spreadsheet Session
1
A
VEH-01
3
5
2
4
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1
B
BUILD – 01
3
2
4
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