July 8 2021
HAMILTON, ON - Today, the City of Hamilton’s Audit, Finance and Administration Committee received a report from the Office of the City Auditor on the Roads Value for Money (VFM) audit, which evaluates the City’s roads infrastructure in relation to asset management, planning, condition tracking, quality assurance, procurement, contract administration and financial management.
The Council-approved Audit Work Plan 2019 to 2022 (AUD19007) included the completion of a Roads Operations and Construction Programs VFM audit.
The Office of the City Auditor brought forward observations, findings and recommendations to improve value for money in asset management, enhance transparency and clarity in reporting, strengthen quality assurance, and improve contractor oversight.
Key recommendations addressed in the audit include:
- A more robust approach to road or “right of way” asset management and pavement analysis.
- A strategic plan to act as the blueprint for improvement goals and strategies for sustainability.
- The development of more complete and effective systems of quality assurance and contractor management.
- Greater emphasis on preservation management as an asset management strategy.
The scope of the audit covered all aspects of pavement management except City practices related to the management or reporting of skid resistance or friction, which is part of the Red Hill Valley Parkway Judicial Inquiry.
City of Hamilton Roads VFM Audit determined:
- It would cost more than $4 billion to replace all current road assets or pavement infrastructure within the City.
- $203.7 million has been spent on rehabilitation and reconstruction of City road infrastructure in the past five years.
- At its current rate, it would take 240 years to recycle the roads network through the current reconstruction approach.
- The City of Hamilton currently spends one per cent of replacement costs on the renewal of roads annually.
- The State of the Infrastructure Rating for Roads has improved from a D- in 2009 to a C in 2016.
- Management of roads should pivot its strategies towards preservation rather than reconstruction of the roads network across the City.
“The current financially constrained environment necessitates getting good value from the investment in road assets through a strong focus on quality assurance, contractor accountability, implementing rigorous asset management and shifting strategies towards preservation rather than reconstruction.”
- Charles Brown, City Auditor & Auditor General, Office of the City Auditor