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CORPORATE POLICY MANUAL
Policy Name:
Asset Management Policy
Policy Number:
CP-2025-02
Adopted:
March 19, 2025
Division/Department:
Finance Department
Authority:
Confirmatory By-Law # 2025-22
Supersedes:
CP-2019-10
Review by Date:
July 2030
Last Modified:
June 2019
Purpose
Strategic municipal asset management involves the challenge of planning and
investing in municipal infrastructure assets, while ensuring sound stewardship of
public resources and delivering valued customer services. The purpose of this policy
is to affirm the Town of Midland commitments in asset management through defined
principles and processes, and to align and integrate asset management into
strategic planning processes and long-term financial planning. This will help identify
and prioritize investments in existing and future infrastructure assets, as the town
continues its efforts to maintain assets in a safe, efficient, and effective manner,
capable of supporting the level of service desired by the community.
Policy Statement
Pursuant to Ontario Regulation 588/17, the Town of Midland makes the following
commitments:
1. Manage assets over the entire lifecycle to ensure the long-term sustainability of
its services is achieved in the most fiscally responsible manner possible for
current and future generations.
2. Optimizing asset value while minimizing lifecycle costs
3. Managing risks to service delivery.
4. Commitment to address vulnerabilities caused by climate change and to
undertake necessary adaptation and mitigation approaches.
5. Committing to continual improvement of the asset management program.
Definitions
For the purposes of this policy:
Assets - physical components of a system that enables a service or services to be
provided.
Asset Management - an integrated business approach involving all departments to
effectively manage existing and new infrastructure to maximize benefits, reduce risk
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Asset Management Policy
Page 2 of 4
and provide satisfactory levels of service to community users in a socially,
environmentally, and economically sustainable manner.
Engineered Assets - the designed and constructed components of infrastructure
systems. For example, roads, sewer & water infrastructure.
Level of Service - specific parameters that describe the extent and quality of
services provided. Levels of service link an asset's performance to target
performance goals.
Lifecycle - the service life of an asset; the time from its first use until it is no longer
able to be used. This can be measured in days or years and can take into account
factors like age, regular maintenance, preventative maintenance and manufactures
expected life.
Natural Assets - natural resources relied on for critical services, community
function and overall well-being. Natural assets include rivers and creeks, foreshore
areas, wetlands, forests and aquifers. Examples of services and benefits include
flood protection, drainage and rainwater attenuation, water treatment and storage,
recreation and air quality regulation.
Scope
The scope of this policy applies to all municipal infrastructure assets or asset
systems (including natural assets) owned by the Town of Midland, as defined in
Ontario Regulation 588/17, Asset Management Planning for Municipal Infrastructure.
Guidelines and Practices
The Policy shall be implemented by staff to meet Ontario Regulation 588/17: Asset
Management Planning for Municipal Infrastructure. Using accepted industry
guidelines and practices such as Ontario Building together - Guide for municipal
asset management plans and ISO 5500 - International Standard for Asset
Management.
An Asset Management plan will be developed for specific asset classes and will
outline long-term goals, processes and steps toward how they will be achieved. All
assets included in the plan will meet the thresholds outlined within the municipalities
Tangible Capital Asset Policy. The asset management plan will be based on current
inventories and condition (acquired or derived), projected asset performance,
remaining service life and consequence of failure. The plan will reflect replacement
portfolios and associated financial plans while considering alternative scenarios and
risks.
Policy
The following principles support sustainable and resilient decision making and help
ensure Asset Management decisions reflect a long-term approach.
Corporate Policy No. CP-2025-02
Asset Management Policy
Page 3 of 4
1) Service Delivery - The municipality will strive to:
a. Manage and maintain assets sustainably to meet defined Levels of
Service that balance customer expectations with risk, affordability and
time considerations;
b. Comply with all relevant legislative, regulatory and statutory requirements;
c. Ensure that decisions regarding the need for new or replacement assets
are made with appropriate due diligence and that these needs are
evaluated with a focus on service delivery;
d. Implement an Asset Management system that incorporates risk-based and
information driven decision-making frameworks that appropriately consider
the potential impacts of asset failure on ongoing service delivery.
2) Long term sustainability and Resilience - The municipality will strive to:
a. Manage assets to deliver services that are sustainable and that meet the
anticipated challenges of legislative requirements, climate change impacts
and needs of future generations;
b. Consider social, cultural, environmental and economic factors and
implications when making and implementing asset management
decisions;
3) Integrated Decision Making:
a. Ensure decisions are made collaboratively and consider all lifecycle
stages and the interrelationships between asset, operational and overall
service performance;
b. Implement sustainable asset management principles and practices across
all departments and service areas by adopting a formal, consistent and
repeatable approach to the management of its assets that will ensure
services are provided in the most efficient and effective manner for its
intended application.
4) Fiscal Responsibility - The municipality will strive to:
a. Evaluate asset investment decisions based on consideration of the
lifecycle costs and revenues associated with managing those assets
b. Develop prioritized capital investment plans that reflect accepted levels of
service and other strategic objectives.
c. Recognize that there are constantly changing financial constraints and
challenges that surround all services and assets and that asset
management practices must be proactive and responsive to changing
environments.
5) Innovation and Continual Improvement - the Municipality will strive to:
a. Monitor and periodically review the effectiveness of asset management
processes and the wider asset management system in supporting the
delivery of strategic objectives and will make adjustments as required;
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Asset Management Policy
Page 4 of 4
b. Review the asset management policy in conjunction with its review of the
asset management plan, every 5 years.
Integrated and Systematic Approach
The town will comply with asset reporting requirements and integrate programming
throughout the town's lines of business, with references and recommendations
between corporate documents. Where possible and appropriate, staff will consider
this policy and integrate it in the development of corporate documents such as;
- Corporate Strategic Plan
- Capital budget plan
- Climate Change Adaptation plan
- Operational Plans and Budgets
- Emergency Management
- Infrastructure Servicing, management and replacement plans (Water Master
Plan)
Commitment & Responsibility
The policy requires the commitment of key stakeholders within the Town's
organization to ensure the policy contains a clear plan that can be implemented,
reviewed, and updated.
Council - approve asset management policy, articulate community values and
define priorities, approve funding and resources to implement the asset
management policy and associated requirements and, approve asset funding
through multi-year and long-range financial plans.
Senior Leadership Team - responsible for communicating land-use or master
plans, forecasts, policies and other planning or financial commitments related to
municipal infrastructure assets.
Finance - responsible for the implementation of Corporate Asset Management
including development of Asset Management strategies, policies, plans and
procedures for the Corporation. Responsible for ensuring the town complies with
Ontario Regulation 588/17 including regularly reporting to senior leadership team,
the Mayor and Council on effectiveness of the program.
Review Cycle
This policy will be reviewed once every five years as per O.Reg 588/17.