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Corporate Policy
Corporate Asset Management # CAO.4-01
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Corporate Asset Management
Policy Number: CAO.4-01
Topic: Asset Management
Applies to: All employees
Policy Statement and Strategic Plan Linkages
The Town of Newmarket is committed to good governance through fiscal responsibility
and financial sustainability in striving to meet the program and service needs of the
community and its customers, including residents, local businesses and visitors. The
Town of Newmarket will adopt and apply recognized Asset Management (AM) practices
to plan, design, construct, acquire, operate, maintain, renew, replace and dispose of the
Town's assets in a way that preserves sound stewardship of public resources while
balancing levels of service and risk in support of delivering services to its residents and
customers.
This policy aligns with the Town's Strategic Plan directions in being Well-Equipped &
Managed and Well-Planned and Connected by implementing policy that reflects sound
and accountable governance and is the foundation of the Town's Key Strategic Asset
Management documents (outlined in Appendix A) and Corporate Asset Management
Framework (Appendix B).
Purpose
This Policy applies to the tangible capital assets of the Town, including but not limited to
roads, sidewalks, bridges, watermains, sewers, stormwater ponds, pumping stations,
fleet, IT systems, buildings, parks, art and trees. It establishes a responsibility framework
for all policy and procedures of the Town related to Asset Management.
Definitions
Asset Management (AM): an integrated business approach involving planning, finance,
engineering, maintenance and operations geared towards effectively managing existing
and new infrastructure to maximize benefits, reduce risk and provide safe and reliable
levels of service to community users. This is accomplished in a socially, culturally,
environmentally and economically conscious manner. AM relies on four key
organizational components integrating together to achieve the desired service
outcomes: well-planned strategies, good physical assets, highly trained professionals
with respect to practices and procedures, and integrated business processes. These
components, supported by appropriate technologies, provide a robust foundation for
efficient service delivery.
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AM Program: the collective documents that encompass the AM Policy, AM Strategy
and AM Plans.
AM Strategy: a document that articulates the practical implementation of municipality's
goals as they pertain to AM.
AM Plan: a document that reports on how assets are being managed through their
lifecycle in support of the services being delivered.
Capitalization Threshold: The capitalization threshold is the dollar amount that
determines the proper financial reporting of the asset. Asset acquisition costs that are
below the threshold are to be expensed.
This Policy guides the overall direction of the asset management system, providing clear
direction as to the appropriate focus and level of asset management practice expected.
It establishes the key principles, overall mission and goals for the program, and will be
guided by the Organizational Strategic Plan as directed under section 3 of the
Infrastructure for Jobs and Prosperity Act, 2014, and informed by:
An understanding of current and future asset condition, needs and costs,
An understanding of risks and the Town's ability to manage risks relating to
assets, including disaster planning and any required contingency planning and
funding;
Accessibility standards and other related standards;
Changing demographics, including population growth or decline;
Climate change impacts, as well as adaptation and mitigation techniques relative
to the purchase and construction of new assets and/or the operations, such as
increased maintenance schedules of existing assets; and
Ontario's land use planning framework, priorities and outcomes, as set out in the
Provincial Policy Statement, provincial land use plans such as the Growth Plan
for the Greater Golden Horseshoe, and municipal official plans, where applicable.
The following eight (8) guiding principles will be applied by employees to Asset
Management:
Customer Focused
The Town will aim to have clearly defined Levels of Service and applying AM
practices to maintain the confidence of customers in how Town assets are
managed. The Town will provide opportunities for municipal residents and other
interested parties to provide input into the municipality's asset management
planning.
Forward Looking
The Town will make decisions and provisions that enable our assets to meet
future challenges, including changing demographics and populations, customer
expectations, legislative requirements, technological and environmental factors.
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Holistic
The Town will take a comprehensive approach that looks at the "big picture" and
considers the combined impact of managing all aspects of the asset life cycle.
Innovative
The Town will continually improve its AM approach, by driving innovation in the
development of tools, practices, and solutions.
Risk-Based
The Town will manage the asset risk associated with attaining the agreed levels
of service by focusing resources, expenditures, and priorities based upon risk
assessments and the corresponding cost/benefit recognizing that public safety is
the priority.
Service Focused
The Town will consider all the assets in a service context and taking into account
their interrelationships as opposed to optimizing individual assets in isolation.
Systematic
The Town will adopt a formal, consistent, repeatable approach to the
management of its assets that will ensure services are provided in the most
effective manner.
Value-Based / Affordable
The Town will choose practices, interventions and operations that aim at reducing
the life cycle cost of asset ownership, while satisfying agreed levels of service.
Decisions are based on balancing service levels, risks, and costs.
The use of these principles in applying AM will better position the Town to:
Deliver services at approved levels of service;
Improve decision-making accountability and transparency;
Better demonstrate the long term consideration of short term decisions;
Improve customer service;
Reduce the life cycle costs while maintaining acceptable levels of service; and
Link infrastructure investment decisions to service outcomes.
The foundation of the Town's Key Strategic Asset Management Documents as outlined
in Appendix A.
The Corporate Asset Management Framework (Appendix B) encompasses all aspects
of the management of each asset through its lifecycle in that it:
Integrates the strategic objectives of the Town, with key business systems,
legislation, and regulations;
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Creates a framework that establishes the mechanism for a clear line of sight
between our AM program and Corporate objectives and strategies; and
Commits to providing approved levels of service for present and future customers
and communities, in the most effective and efficient way, through the planning,
design, construction, acquisition, operation and maintenance, renewal, and
disposal of assets.
The basis for our asset related decisions are:
Anchored on the four pillars of sustainability - economic, environmental, social
and cultural - that support the Town's long-term sustainability goals approved by
Council
Based on applying "the right intervention, on the right asset, at the right time"
recognizing risk and the Town's fiscal constraints; and
Founded on a sustainable approach to ensure that asset base increases or
enhancements consider the impact on the ability of the Town to fund future
maintenance and rehabilitation.
Appendix C is the procedure outlining persons responsible for Asset Management
Planning namely:
Corporate Asset Management Sponsor as identified in the terms of reference for
the Asset Management Steering Committee
Asset Management Steering Committee
Office of Corporate Asset Management
The Town has a capitalization threshold of $40,000 for all categories except vehicles,
machinery, equipment, computer hardware and software in which case the threshold is
$20,000. Individual assets of lesser value are expensed, unless they are pooled
because, collectively, they have significant value. Examples of pools are computer
systems, library collection, and streetlights. The Town's threshold for pooled assets is
$40,000. The Library pools all of their tangible capital assets and their capitalization
threshold is $10,000. Assets in the asset management plan are not to be subject to a
capitalization threshold, and are to be included based upon judgement of whether the
asset has value to the organization.
Cross-References
Corporate Procedure:
Corporate Asset Management Procedure
Corporate Policy:
Town of Newmarket Official Plan
Operating and Capital Financial Policy
Other Departmental Policies as applicable
Other Government Legislation:
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Infrastructure for Jobs and Prosperity Act
Provincial Policy Statement
Provincial land use plans such as the Growth Plan for the Greater Golden
Horseshoe
Safe Drinking Water Act, 2002
Appendices
Appendix A - Key Strategic Asset Management Documents
Appendix B - Corporate Asset Management Framework
Appendix C - Corporate Asset Management Procedure #CAO.04-01-001
Contact
Manager, Corporate Asset Management
Details
Approved by: Council
Adoption Date:
Policy Effective Date: February 8, 2016
Last Revision Date: April 15, 2019
Revision No: 001
Corporate Asset Management # CAO.4-01
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Appendix A
Key Strategic Asset Management Documents
The following key strategic asset management documents form part of the municipality's
overall approach to asset management:
Corporate Asset Management Policy: This document establishes Council's expectations
around the management of the Town's physical assets.
Asset Management Strategy: This document defines the municipality's commitment and
approach to achieving the Council approved policy.
Asset Management Plans: These documents show how assets are being managed
through their lifecycle in support of the delivery of services. (To be approved at the
Departmental Management level for all service areas. The plans will be updated at least
every five (5) years and submitted to Council for information purposes.)
Customer Levels of Service: This document defines the level to which assets are to be
maintained to achieve defined levels of service. (To be developed and approved by
Council.)
Six (6) Year Financial Plans - Water, Wastewater and Stormwater: These documents
provide information on the state of the Town's rate structure and consumption
projections.
Corporate Policy
Corporate Asset Management # CAO.4-01
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Appendix B
Corporate Asset Management Framework
Corporate Policy
Corporate Asset Management # CAO.4-01
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Appendix C - Corporate Procedure
Corporate Asset Management
Procedure #: CAO.4-01-001
Policy #: CAO.4-01
Topic: Asset Management
Purpose
This procedure supports the Corporate Asset Management Policy by outlining the roles
and responsibilities of all stakeholders involved in Asset Management practices
supporting the delivery of municipal services to its residents and customers.
Procedures
Responsibilities of Council
Approving, revising, and rescinding strategies, plans and policy as proposed by the
Corporate Asset Management Division by a resolution passed by Municipal Council;
Serving as representatives of stakeholder and community needs; and
Approving funding for both capital and operating budgets associated with Asset
Management through the annual budget process.
Responsibilities of the Corporate Asset Management Steering Committee
Providing corporate support for asset management;
Coordinating financial, strategic planning, information technology and asset
management activity;
As part of asset management planning, consider:
i.
the actions that may be required to address the vulnerabilities that may
be caused by climate change to the municipality's infrastructure assets,
in respect of such matters as,
A.
operations, such as increased maintenance schedules,
B.
levels of service, and
C.
lifecycle management,
ii.
the anticipated costs that could arise from the vulnerabilities described
above,
iii.
adaptation opportunities that may be undertaken to manage the
vulnerabilities described above,
iv.
mitigation approaches to climate change, such as greenhouse gas
emission reduction goals and targets, and
v.
disaster planning and contingency funding
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Implementing a process to ensure that the municipality's asset management
planning is aligned with the following:
Financial plans related to the municipality's water assets including any financial
plans prepared under the Safe Drinking Water Act, 2002.
Financial plans related to the municipality's wastewater assets.
Implementing a process to ensure that the municipality's asset management
planning is aligned with Ontario's land-use planning framework, including any
relevant policy statements issued under subsection 3 (1) of the Planning Act, any
provincial plans as defined in the Planning Act and the municipality's official plan.
Establishing policies and practices that ensure uniformity of approach across the
organization;
Encouraging information sharing and collaboration across departments;
Providing a corporate pool of asset management expertise that can build
capability in areas of lower experience;
Providing input and direction to Corporate Asset Management work plans to
ensure consistency with other initiatives;
Establishing and peer review asset management policies, practices, plans, and
other related documents;
Ensuring that asset management plans identify activities to be undertaken, with
consideration of the full lifecycle of assets, for at least the ten (10) years following
the preparation of that plan or update and that asset management plans are
updated at no longer than four (4) year intervals
Disseminating Steering Committee information within their department where
necessary;
Championing the asset management process within the respective department;
Ensuring organization-wide accountability for achieving and reviewing corporate
asset management goals and objectives;
Coordinating with other related steering committees where required; and
Leading the effective implementation of corporate asset management initiatives.
Responsibilities of the Corporate Asset Management Office
Liaising with other departments in service areas relating to asset management,
including convening asset management teams (specific to each service area),
and ensuring project work is consistent with asset management objectives;
Liaising with external stakeholders in relation to asset management matters;
Developing an overall corporate asset management policy, strategy, and confirm
the implementation plan/resource requirements;
Coordinating the development of asset management tools and practices
application across the organization;
Coordinating the development of asset management plans and facilitate peer
reviews;
Coordinating asset management improvement programs including writing briefs
for asset management improvement projects and preparing, monitoring and
reporting on the overall asset management planning budgets;
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Carrying out selected asset management improvement tasks as appropriate;
Leading the development of asset inventories, condition assessments, risk
assessments and related asset management initiatives in line with industry best
practices;
Working with asset management information systems staff to ensure systems
development and functionality meets asset management needs; and
Continuous improvement of the municipality's Asset Management capabilities.
Responsibilities of Asset System Working Groups and Service Providers
Providing input on needs of department, current status of assets, and current
levels of service;
Supporting and comply with data collection requirements related to their areas of
expertise;
Participating in the development of the Asset Management Work Plans pertaining
to their areas of expertise; and
Participating in the regular review of all documentation, data, and asset
measurement tools to ensure continued relevance and applicability of existing
policies and practices as pertains to their area of expertise.
Responsibilities of Residents, Stakeholders and Customers
Participating in public information sessions, and stakeholder engagement
initiatives, where possible;
Providing feedback related to levels of service, service experience, and service
expectations; and
Notifying the Town, via appropriate means, when service deficiencies or failures
are observed.
Persons Responsible for Asset Management Planning
Corporate Asset Management Sponsor (as identified in the terms of reference for
the Asset Management Steering Committee)
Asset Management Steering Committee
Office of Corporate Asset Management
Cross-References
Corporate Procedure:
Corporate Asset Management Procedure
Corporate Policy:
Town of Newmarket Official Plan
Other Government Legislation:
Infrastructure for Jobs and Prosperity Act
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Provincial Policy Statement
Provincial land use plans such as the Growth Plan for the Greater Golden
Horseshoe
Contact
Manager, Corporate Asset Management
Details
Approved by: Council
Adoption Date:
Policy Effective Date: February 8, 2016
Last Revision Date: April 15, 2019
Revision No: 001