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Report 2019-068
Recommend Report to Council
To:
Warden and Council
From:
Kelly J. Pender, Chief Administrative Officer
Prepared by:
Susan Brant, Director of Corporate Services/Treasurer
Date of meeting:
June 19, 2019
Re:
Corporate Services - Approval of a Strategic Asset Management Policy
Recommendation
Resolved That the Council of the County of Frontenac receive the Corporate Services
Approval of a Strategic Asset Management Policy report;
And Further That the Clerk be authorized to bring forward a by-law later in the meeting
to establish a formal Strategic Asset Management Policy attached to this report as
Appendix A.
Background
The County is responsible for providing a range of essential services to the community,
including land ambulance, long term care, land use planning, economic development,
and Frontenac-Howe Islander Ferry services. To deliver these services, it owns and
manages a diverse municipal infrastructure asset portfolio of facilities, equipment,
vehicles, machinery, recreational trails and bridges. As the social, economic, and
environmental wellbeing of the community depends on the reliable performance of these
municipal infrastructure assets it is critical to implement a systemic, sustainable
approach to their management.
Asset management refers to the set of policies, practices and procedures that allow an
organization to realize maximum value from its municipal infrastructure assets. An asset
management approach allows organizations to make informed decisions regarding the
planning, building, operating, maintaining, renewing, replacing and disposing of
municipal infrastructure assets through a wide range of lifecycle activities. Furthermore,
it is an organization-wide process that involves the coordination of activities across
multiple departments and service areas. As such, it is useful to adopt a structured and
coordinated approach to outlining the activities, roles and responsibilities, as well as the
key principles that should guide all asset management decision-making.
Comment
A comprehensive and holistic asset management approach will support efficient and
effective delivery of expected levels of service and ensure these practices are applied to
the long-term management and stewardship of all municipal infrastructure assets. In
addition, it will align the County with provincial standards and regulations such as the
Infrastructure for Jobs and Prosperity Act, 2015 and Ontario Regulation 588/17,
enabling the organization to take full advantage of available grant funding opportunities.
The approval of this policy is an important step towards integrating the County's
strategic mission with its asset management program, and ensuring that critical
municipal infrastructure assets and vital services are maintained and provided to the
community in a reliable, sustainable manner.
Attachments
Appendix A Strategic Asset Management Policy
Sustainability Implications
The County must proactively manage its assets to best serve the Municipality's
objectives, including the following:
- Provide a consistent framework for implementing asset management
throughout the organization
- Provide transparency and accountability to its stakeholders with evidence-
based decision-making processes that align with strategic plans, budgets,
service levels and risk management practices
- Prioritize the need for existing and future assets to effectively deliver services
to the community and stakeholders
- Maintain prudent financial planning and decision-making
- Support sustainability and economic development
Financial Implications
There are no financial implications directly associated with the adoption of a Strategic
Asset Management Policy.
Organizations, Departments and Individuals Consulted and/or Affected
Senior Leadership Team
Alex Lemieux, Deputy Treasurer
Kathie Shaw, Senior Financial Analyst
Recommend Report to Council
Corporate Services - Approval of a Strategic Asset Management Policy
June 19, 2019
Page 2 of 2
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 1 of 8
Approved:
Effective Date: June 19, 2019
Definitions:
Unless otherwise noted, the definitions provided in this document align with those
outlined in Ontario Regulation 588/17 (O. Reg. 588/17), Asset Management Planning
for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015.
Asset management (AM) - the coordinated activity of an organization to realize value
from its assets. It considers all asset types, and includes all activities involved in the
asset's life cycle from planning and acquisition/creation; to operational and maintenance
activities, rehabilitation, and renewal; to replacement or disposal and any remaining
liabilities. Asset management is holistic and normally involves balancing costs, risks,
opportunities and performance benefits to achieve the total lowest lifecycle cost for each
asset.
Asset management plan (AMP) - Documented information that specifies the activities,
resources, and timescales required for an individual asset, or a grouping of assets, to
achieve the organization's asset management objectives.
Capitalization threshold - the value of a municipal infrastructure asset at or above
which a municipality will capitalize the value of it and below which it will expense the
value of it.
Green infrastructure asset - an infrastructure asset consisting of natural or human-
made elements that provide ecological and hydrological functions and processes and
includes natural heritage features and systems, parklands, stormwater management
systems, street trees, urban forests, natural channels, permeable surfaces and green
roofs.
Level of service - parameters, or combination of parameters, which reflect social,
political, environmental and economic outcomes that the organization delivers.
Parameters can include, but are not necessarily limited to, safety, customer satisfaction,
quality, quantity, capacity, reliability, responsiveness, environmental acceptability, cost,
and availability.
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 2 of 8
Approved:
Effective Date: June 19, 2019
Lifecycle activities - activities undertaken with respect to a municipal infrastructure
asset over its service life, including constructing, maintaining, renewing, operating and
decommissioning, and all engineering and design work associated with those activities.
Municipal infrastructure asset - an infrastructure asset, including a green
infrastructure asset, directly owned by a municipality or included on the consolidated
financial statements of a municipality, but does not include an infrastructure asset that is
managed by a joint municipal board.
Purpose:
A strategic asset management policy formalizes the Municipality's commitment to asset
management that aligns with strategic goals, provides leadership and commitment to
the development and implementation of the County's asset management program.
It is intended to guide the consistent use of asset management practices across the
organization while managing risk and implementing evidence-based decision-making on
the management of municipal infrastructure assets to support the delivery of sustainable
community services.
This policy demonstrates an organization-wide commitment to the good stewardship of
municipal infrastructure assets, and to improved accountability and transparency to the
community through the adoption of best practices regarding asset management
planning. By using sound asset management practices, the County aspires to ensure
that municipal infrastructure assets meet expected performance levels and provide
desired service levels in an efficient and effective manner.
Background:
The County is responsible for providing a range of essential services to the community,
including land ambulance, long-term care, land use planning, economic development,
and Frontenac-Howe Islander Ferry services. To deliver these services, it owns and
manages a diverse municipal infrastructure asset portfolio of facilities, equipment,
vehicles, machinery, recreational trails and bridges. As the social, economic, and
environmental wellbeing of the community depends on the reliable performance of
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 3 of 8
Approved:
Effective Date: June 19, 2019
these municipal infrastructure assets it is critical to implement a systemic, sustainable
approach to their management.
Asset management refers to the set of policies, practices and procedures that allow an
organization to realize maximum value from its municipal infrastructure assets. An asset
management approach allows organizations to make informed decisions regarding the
planning, building, operating, maintaining, renewing, replacing and disposing of
municipal infrastructure assets through a wide range of lifecycle activities. Furthermore,
it is an organization-wide process that involves the coordination of activities across
multiple departments and service areas. As such, it is useful to adopt a structured and
coordinated approach to outlining the activities, roles and responsibilities, as well as the
key principles that should guide all asset management decision-making.
A comprehensive and holistic asset management approach will support efficient and
effective delivery of expected levels of service and ensure these practices are applied to
the long-term management and stewardship of all municipal infrastructure assets. In
addition, it will align the County with provincial standards and regulations such as the
Infrastructure for Jobs and Prosperity Act, 2015 and Ontario Regulation 588/17,
enabling the organization to take full advantage of available grant funding opportunities.
Objectives:
The County must proactively manage its assets to best serve the Municipality's
objectives, including the following:
Provide a consistent framework for implementing asset management
throughout the organization
Provide transparency and accountability to its stakeholders with evidence-
based decision-making processes that align with strategic plans, budgets,
service levels and risk management practices
Prioritize the need for existing and future assets to effectively deliver services
to the community and stakeholders
Maintain prudent financial planning and decision-making
Support sustainability and economic development
The County will implement a municipal-wide asset management program that will
promote lifecycle and risk management of the County's capital infrastructure
assets. A primary goal will be to achieve the lowest total cost of ownership while
meeting desired levels of service. Levels of service refer to the outcomes or
service attributes that the County aims to deliver for its stakeholders and can
include both technical and qualitative components.
The service rendered by an asset will be a determining factor of whether or not to
include it in the asset management plan. The capitalization threshold used to
determine which assets are included in the asset management plan is therefore a
guideline. This qualitative approach is unlike the quantitative and dollar value-
based methodology prescribed in the tangible capital asset policy.
The County will integrate asset management plans and practices with its long-
term financial planning and budgeting strategies. This includes the development
of financial plans that determine the level of funding required to achieve short-
term operating and maintenance needs, in addition to long-term funding needs to
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 4 of 8
Approved:
Effective Date: June 19, 2019
Strategic Alignment:
The County's mission to provide the effective, efficient and sustainable delivery of
services to citizens requires alignment of the many initiatives underway in our
organization at any given time in order for it to be achieved. This alignment is necessary
to properly consider whether the level of service provided by our existing and planned
assets supports our mission.
Asset management planning therefore will not occur in isolation from other municipal
goals, plans, and policies. Rather, an integrated approach will be followed to
successfully develop a practical asset management plan that aligns with our strategic
plan, long range financial plan, budgeting strategies, Official Plan and our departmental
master plans.
Policy Statement:
To guide the County, the following policy statements have been developed:
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 5 of 8
Approved:
Effective Date: June 19, 2019
replace and/or renew municipal infrastructure assets based on full lifecycle
costing.
- The County will identify appropriate funding for its capital infrastructure and for
financing service delivery. This may include taxation or user fee revenues, grant
programs, debt-financing, public-private partnerships (P3), alternative financing
and procurement (AFP), or the shared provision of services.
- The County will consider the risks and vulnerabilities of municipal infrastructure
assets to climate change and the actions that may be required including, but not
limited to, anticipated costs that could arise from these impacts, adaptation
opportunities, mitigation approaches, disaster planning and contingency funding.
Impacts may include matters relating to operations, levels of service and lifecycle
management.
- The County will develop meaningful performance metrics and reporting tools to
transparently communicate and display the current state of asset management
practice to Council and the community.
- The County will align all asset management planning with the Province of
Ontario's land-use planning framework, including any relevant policy statements
issued under section 3(1) of the Planning Act; shall conform with the provincial
plans that are in effect on that date; and, shall be consistent with the County
Official Plan.
- The County will develop processes and provide opportunities for stakeholders and
other interested parties to offer input into the County's asset management
planning, where appropriate.
- The County will coordinate planning for interrelated municipal capital
infrastructure assets with separate ownership structures by pursuing
collaborative opportunities with neighbouring municipalities and jointly-owned
municipal bodies wherever viable and beneficial.
- The County's asset management plan will be updated at least every five years in
accordance with O. Reg. 588/17 requirements, to promote, document and
communicate continuous improvement of the asset management program.
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 6 of 8
Approved:
Effective Date: June 19, 2019
Guiding Principles
The County will choose practices and operations that aim at reducing the lifecycle cost
of asset ownership, while satisfying agreed levels of service. Decisions are based on
balancing service levels, risks and cost. In addition, the County will consider all the
assets in a service context and take into account their interrelationships as opposed to
optimizing individual assets in isolation.
The Infrastructure for Jobs and Prosperity Act, 2015 sets out the following principles to
guide asset management planning for municipalities in Ontario. The County will
endeavor to incorporate these principles whenever possible into the day to day
operation of the Municipality:
- Forward looking: The Municipality shall take a long-term view while considering
demographic and economic trends in the region.
- Budgeting and planning: The Municipality shall take into account any
applicable budgets or fiscal plans, including those adopted through Ontario
legislation.
- Prioritizing: The Municipality shall clearly identify infrastructure priorities which
will drive investment decisions.
- Economic development: The Municipality shall promote economic
competitiveness, productivity, job creation, and training opportunities.
- Transparency: The Municipality shall be transparent by making information
available to the public and base decisions on the publicly shared information, and
in accordance with the County's Transparency and Accountability policy as
required under Section 270 of the Municipal Act.
- Consistency: The Municipality shall ensure the continued provision of core
public services.
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 7 of 8
Approved:
Effective Date: June 19, 2019
- Environmentally conscious: The Municipality shall endeavor to minimize the
impact of infrastructure on the environment by respecting and helping to maintain
ecological and biological diversity by augmenting resilience to the effects of
climate change.
- Health and safety: The Municipality shall ensure that the health and safety of
workers involved in the construction and maintenance of infrastructure assets is
protected.
- Community focused: The Municipality shall promote community benefits
including both social and economic, arising from infrastructure projects. The
infrastructure projects are intended to improve the well-being of a community
such as local job creation, improvement of public space within the community
and promoting accessibility for persons with disabilities.
- Innovation: The Municipality shall create opportunities to make use of innovative
technologies, services, and practices, particularly where doing so would utilize
technology, techniques, and practices developed in Ontario.
- Integration: The Municipality shall where relevant and appropriate, be mindful
and consider the principles and content of non-binding provincial or municipal
plans and strategies established under an Act or otherwise, in planning and
making decisions surrounding the infrastructure that supports them.
Governance and Continuous Improvement
The policy requires the commitment of key stakeholders within the Municipality's
organization to ensure the policy guides the development of a clear plan that can be
implemented, reviewed and updated.
Roles and Responsibilities
The development and continuous support of the County's asset management
program requires a wide range of duties and responsibilities. The following passages
outline the persons responsible for these tasks:
Corporate Policy & Procedure Manual
Subject:
Strategic Asset Management Policy
Policy
Revision Date:
Index Number A09-ADM-012
Page 8 of 8
Approved:
Effective Date: June 19, 2019
1.
Council
i.
Approve the AM policy and direction of the AM program
ii.
Maintain adequate organizational capacity to support the core
practices of the AM program
iii.
Prioritize effective stewardship of assets in adoption and ongoing
review of policy and budgets
iv.
Establish levels of service
2.
Senior Management Team
i.
Development of policy and policy updates
ii.
Provide corporate oversight to goals and directions and ensure the AM
program aligns with the County's strategic plan
iii.
Ensure that adequate resources are available to implement and
maintain core AM practices
iv.
Provide departmental staff coordination
v.
Develop and monitor levels of service and make recommendations to
Council
vi.
Track, analyze and report on AM program progress and results
3.
Executive Lead (Treasurer)
i.
Manage policy and policy updates
ii.
Provide organization-wide leadership in AM practices and concepts
iii.
Provide departmental staff coordination
iv.
Monitor levels of service
v.
Coordinate and track AM program implementation and progress
4.
Departmental Staff
i.
Utilize the new business processes and technology tools developed
as part of the AM program
ii.
Participate in implementation task teams to carry-out AM activities
iii.
Implement and maintain levels of service
iv.
Provide support and direction for AM practices within their department
v.
Track and analyze AM program progress and results