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City commended for working on infrastructure management

Penticton isn’t unique in having to deal with the problem of aging infrastructure
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An update on Penticton’s infrastructure management paints a brighter picture than the city has seen for quite a while.

Corey Sivell, a consultant with Urban Systems, presented an update on the asset managment investment plan they are helping Penticton develop.

Penticton isn’t unique in having to deal with the problem of aging infrastructure. Sivell said almost every community in Canada is realizing they haven’t prepared for replacing these assets, many built in the 60s and forgotten about underground, as they continued to provide services through the decades.

Penticton owns about $1.25 billion in infrastructure assets, which includes water, sanitary, storm pipes, pavement, major buildings and components of the city’s electrical utility.

“If you were to replace assets, like-for-like, they are worth $1.25 billion,” said Sivell, explaining that replacement cost, along with expected lifespan were key factors in working out the infrastructure deficit.

“Your assets are about halfway through their service life. It is a great time to be thinking about this,” said Sivell, commmending Penticton for working on the problem now, rather than to or 30 years down the road, when more assets are nearing the end of their lifecycle.

Sivell also said the community shouldn’t be of an infrastructure deficit.

“I think a deficit is a healthy thing. A deficit means assets are lasting longer than expected,” said Sivell, adding that Penticton is at the lower end of the spectrum for communities across B.C. “The question you have to ask in the community is what is the right deficit?”

An early estimate for Penticton’s infrastructure deficit was that the city would need to put aside anywhere from $18.8 million to $28.7 million annually to invest in infrastructure deficit. Sivell presented a series of estimates based on different scenarios, starting at an annnual investment of $34.5 million in infrastructure. But by adjusting for condition and risk, he said, that figure could be reduced to $22.5 million annually, based on maintaining the current level of infrastructure deficit.


Steve Kidd
Senior reporter, Penticton Western News
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