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CITY OF PEMBROKE
1 Pembroke Street
East
Pembroke, Ontario
K8A 3J5
Tel. 613-735-6821
Chief Administrative
Officer & Human
Resources
Extension 1330
Fax: 613-735-3660
Finance
Extension 1320
Fax: 613-735-3660
Fire
Extension 1201
Fax: 613-732-7673
OPP Administration
613-732-3332
Economic
Development
Culture, & Tourism
Extension 1303
Fax: 613-735-3660
Operations
Extension 1409
Fax: 613-732-1421
Planning, Building &
By-Law
Enforcement
Extension 1304
Fax: 613-735-3660
Purchasing
Extension 1409
Fax: 613-732-1421
Parks & Recreation
Extension 1501
Fax: 613-635-7709
general email:
pembroke@pembroke.
Page 1 of 2
Committee Report
To:
Deputy Mayor Gervais, Chair
Operations Committee
From:
LeeAnn McIntyre
Treasurer/Deputy-Clerk
Date:
June 18, 2019
Re:
Strategic Asset Management Policy
Recommendation:
Staff recommends Committee adopt the Strategic Asset management
Policy.
Background:
Ontario Regulation 588/17, under the Infrastructure for Jobs and
Prosperity Act, 2015 requires Ontario municipalities to develop a strategic
asset management policy (SAMP) by July 1, 2019 as well as a new asset
management plan (AMP) for core infrastructure assets by July 1, 2021.
The AMP must be extended to include all other assets by July 1, 2023.
For July 1, 2024 a financial strategy for all Municipal infrastructure assets
using the proposed Levels of Service, Performance and Lifecycle Activities
must be in place. Both the federal and provincial governments require
municipalities to develop asset management plans and have linked this
requirement to many funding streams.
The regulation requires the following to be included in the SAMP:
Identify municipal goals, policies and plans that will be supported by
the AMP ie: the strategic plan
How the AMP is to be considered in the development of the budget
or long-term financial plans
Identify practices and continuous improvement procedures
regarding asset management planning
Establish key principles to be followed
Determine the municipality's commitment to consider actions that
may be required to deal with vulnerabilities that may be the result of
climate change including, anticipated costs, opportunities for
change, mitigation approaches, disaster planning and contingency
funding
Plan to ensure the AMP is aligned with financial plans related to the
municipality's wastewater and water assets including any prepared
under the Safe Drinking Water Act, 2002
CITY OF PEMBROKE
1 Pembroke Street
East
Pembroke, Ontario
K8A 3J5
Tel. 613-735-6821
Chief Administrative
Officer & Human
Resources
Extension 1330
Fax: 613-735-3660
Finance
Extension 1320
Fax: 613-735-3660
Fire
Extension 1201
Fax: 613-732-7673
OPP Administration
613-732-3332
Economic
Development
Culture, & Tourism
Extension 1303
Fax: 613-735-3660
Operations
Extension 1409
Fax: 613-732-1421
Planning, Building &
By-Law
Enforcement
Extension 1304
Fax: 613-735-3660
Purchasing
Extension 1409
Fax: 613-732-1421
Parks & Recreation
Extension 1501
Fax: 613-635-7709
general email:
pembroke@pembroke.
Page 2 of 2
Plan to ensure the AMP is aligned with the municipality's official
plan and Ontario's land-use planning framework, including the
Planning Act
Explain the capitalization thresholds and how they compare with the
Tangible Capital Asset Policy
A commitment to coordinate planning for infrastructure assets that
are connected or shared with neighbouring municipalities or jointly-
owned municipal bodies
Identify persons responsible for asset management planning
including the executive lead
Explain Council's involvement in asset management planning
A commitment to provide opportunities for residents and other
interested parties to provide input into the asset management
planning process
The policy must be reviewed and updated if necessary every five
years at a minimum.
The policy provides the framework to assist staff in preparing an asset
management plan and integrating all other plans, policies and pertinent
legislation with it. It requires Council to think beyond the current term and
consider the effects of climate change and the needs of the municipality
now and into the future. The policy also defines the role of staff, Council
and the public in the capital infrastructure planning process.
Financial Implication:
The outcome of the AMP will determine the financial impact of this
legislation however, Council will have input into determining levels of
service and other factors that will ultimately affect the finances of the City.
Respectfully submitted,
___________________________
LeeAnn McIntyre
Treasurer/Deputy-Clerk
___________________________
Terry Lapierre
Chief Administrative Officer/Clerk
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 1 of 9
POLICY STATEMENT:
The City of Pembroke shall adopt and apply recognized asset management practices in
support of service delivery to its customers.
1.0
Purpose
The purpose of this strategic asset management policy is to provide leadership in and
commitment to the development and implementation of the City of Pembroke's asset
management program. It is intended to guide the consistent use of asset management
across the organization, to facilitate logical and evidence-based decision making for the
management of municipal infrastructure assets and to support the delivery of sustainable
community services today and into the future.
By using sound asset management practices, the City will work to ensure that all
municipal infrastructure assets meet expected performance levels and continue to provide
desired service levels in the most efficient and effective manner. Linking service
outcomes to infrastructure investment decisions will assist the City in focusing on
service, rather than budget driven asset management approaches.
This policy demonstrates an organization-wide commitment to the good stewardship of
municipal infrastructure assets, and to improved accountability and transparency to
community through the adoption of best practices regarding asset management planning.
2.0
Background
The City is responsible for providing a range of essential services to the community,
including safe and reliable transportation infrastructure, sanitary sewer, stormwater
management, drinking water, facilities and parks to name a few. To deliver these
services it owns and manages a diverse municipal infrastructure asset portfolio of roads,
bridges, culverts, watermains, reservoirs, storm sewers, sanitary sewers, treatment plants,
fleet, equipment, land and land improvements, facilities, parks and trails, etc. 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
systematic approach to their management and provide long-term financial sustainability.
Asset management is such an approach and refers to the set of policies, practices and
procedures that will allow the City to realize maximum value from its municipal
infrastructure assets. This asset management approach will enable the City to make
informed decisions regarding the planning, building, operation, 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
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 2 of 9
coordination of activities across multiple departments and service areas such as, the
Treasury, Operations, Parks and Recreation, Fire, and Planning, Building Inspection and
By-Law Enforcement departments. As such, it is useful to adopt a structured and
coordinated approach to outlining the activities, roles and responsibilities of the
organizations actors, 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 that due regard and process are
applied to the long-term management and stewardship of all municipal infrastructure
assets. In addition, it will align the City with provincial and national standards and
regulations such as the Infrastructure for Jobs and Prosperity Act, 2015 and Ontario
Regulation 588/17, enabling the municipality to take full advantage of available grant
funding opportunities.
The approval of this policy is an important step towards integrating the municipality's
strategic mission, vision and goals with its asset management program, and ensuring that
critical municipal infrastructure assets and vital services are maintained and provided to
the community in a consistent, reliable and sustainable manner.
3.0
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, and the Infrastructure for Jobs and Prosperity Act, 2015.
1. Asset management (AM) - the coordinated activity of an organization to
manage assets by controlling all activities involved in the asset's life cycle
from planning and acquisition/creation, to operational and maintenance
activities, rehabilitation/renewal and replacement or disposal, while balancing
costs, risks, opportunities and performance benefits to realize maximum value.
2. 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.
3. 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.
4. 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,
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 3 of 9
stormwater management systems, street trees, urban forests, natural channels,
permeable surfaces and green roofs.
5. Level of service - parameters, or combination of parameters, which reflect
social, political, environmental and economic outcomes that the organization
delivers
6. Lifecycle activities - activities undertaken with respect to a municipal
infrastructure asset over its service life, including constructing, maintaining,
renewing, operating, decommissioning, and all engineering/design work
associated with those activities.
7. 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 water board.
8. Service life - the total period during which a municipal infrastructure asset is
in use or is available to be used.
9. Budget Committee - shall be the CAO, Treasurer, Deputy-Treasurer and
respective Manager.
4.0
Alignment with the City's Strategic Direction
Effective management of infrastructure assets requires the alignment of the many
initiatives underway at any given time. This will necessitate an integrated approach that
aligns with the City's goals defined in the Strategic Plan and requires congruency with
the City's financial plans, master plans, Official Plan, Development Charges Study,
Emergency Response Plan, and Fire Master Plan.
5.0
Scope
The Strategic Asset Management Policy applies to all physical assets that enable the City
to provide services. These may include roads, sidewalks, pathways, bridges, watermains,
sanitary and storm sewers, pumping stations, reservoirs, treatment plants, fleet, IT
systems, buildings, parks, and lands used for operational purposes.
6.0
Policy Statements
The following policy statements have been developed to guide the City:
1. The City will implement an enterprise-wide asset management program
covering all departments. The program will promote lifecycle and risk
management of all municipal infrastructure assets, with the goal of achieving
the lowest total costs while meeting established levels of service.
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 4 of 9
2. The City will develop 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 replace and/or renew municipal infrastructure
assets based on lifecycle costing.
3. The City will integrate the AMP into its long-term financial planning and
budgeting processes. The AMP will be referenced by senior staff in the
preparation of their budget submissions to help them:
i.
Identify potential revenues and costs associated with forthcoming
infrastructure asset decisions
ii.
Incorporate new revenue streams and alternative funding
opportunities where possible
iii.
Evaluate the validity and need of each new capital asset and
consider the impact on future operating costs
The departmental budget submission will be reviewed and evaluated by the
budget committee in preparation of the City's annual budget.
The AMP progress will be considered annually in the creation of the City's
capital and operating budgets and long-term financial plans. The AMP will be
referenced by senior staff in order to:
i.
Look up forecasted spending needs identified in the plan
ii.
Verify progress made on the plan and identify potential gaps
iii.
Prioritize spending needs, across the identified gaps
The Treasurer and/or the Deputy-Treasurer will be involved in asset
management planning to facilitate the bridge between:
i.
The financial strategy developed in the AMP
ii.
The budget submissions for each department
iii.
The overall budgeting process
4. The City will implement continuous improvement protocols and adopt best
practices regarding asset management planning, including:
i.
Complete and Accurate Asset Data
ii.
Condition Assessment Protocols
iii.
Risk Management
iv.
Lifecycle Management
v.
Financial Strategy Development
vi.
Level of Service Framework
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 5 of 9
5. The City will develop and maintain an asset inventory of all municipal
infrastructure assets. These may include a unique ID, description, location
information, historical and replacement value, performance characteristics
and/or condition, estimated remaining life and estimated repair, rehabilitation
or replacement date; and estimated repair, rehabilitation or replacement costs.
i.
Asset hierarchies created to develop the original asset inventory
will continue to be used to consolidate data for multiple initiatives,
e.g., PSAB Financial Reporting, Financial Information Return
Reporting, Budget Reporting, and Asset Management, as per
Section 3.2 1a of the 2009 PSAB 3150 Compliance Report.
6. The Strategic Asset Management Policy applies to all assets whose role in
service delivery requires deliberate management by the City. The service-
focus intent of this policy differentiates its requirements from the
capitalization thresholds which were developed for the purposes of financial
reporting. Therefore, the capitalization threshold developed for the financial
reporting (PSAB) will not be the guide in selecting the assets to include in the
AMP. Capitalization thresholds for the AMP will be based on Council-
endorsed principles and professional judgement of senior staff.
7. The City will develop and maintain an asset management plan (AMP) that
incorporates all municipal infrastructure categories and municipal
infrastructure assets that are necessary to the provision of services. This may
include assets that fall below their respective capitalization thresholds as
outlined in the City's Tangible Capital Asset Policy. The AMP will be
reviewed and updated at least every five years and the City's progress of the
plan will be reviewed annually to measure, promote, document and
communicate continuous improvement of the AMP.
8. The City will explore innovative funding and service delivery opportunities,
including but not limited to grant programs, public-private partnerships (P3),
alternative financing and procurement (AFP) approaches, and shared
provision of services as appropriate.
9. The City 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.
10. The City 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
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 6 of 9
opportunities, mitigation approaches, disaster planning and contingency
funding. Impacts may include matters relating to operations, levels of service
and lifecycle management.
11. The City will align financial plans with the established asset management plan
and other applicable legislation.
i. Any financial plans prepared under the Safe Drinking Water Act, 2002,
such as a water rate review that considers capital and operating
infrastructure needs through a lifecycle costing approach analysis of
financing options, and reserve fund position.
12. The City 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
all municipal official plans.
13. The City will coordinate planning for interrelated municipal infrastructure
assets with separate ownership structures by pursuing collaborative
opportunities with neighbouring municipalities and jointly-owned municipal
bodies wherever viable and beneficial.
14. The City will develop processes and provide opportunities for municipal
residents and other interested parties to offer input into asset management
planning.
15. The City shall post the current strategic asset management policy and asset
management plan on the City's website, and shall provide a copy of the policy
and plan to any person that requests it.
5.0 Key Principles
The guiding principles of the strategic asset management policy are outlined in the
following list:
Customer Focused
The City will establish levels of service and performance targets to form the basis for
strategic decision making and to maintain the confidence of customers in how City assets
are managed.
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 7 of 9
Service Focused
The City will consider all the assets in a service context and take into account their
interrelationships as opposed to optimizing individual assets in isolation.
Risk-based
The City 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.
Forward Looking
As part of the commitment to long-term sustainability, the City will make the appropriate
decisions and provisions to better enable its assets to handle potential vulnerabilities,
including changing demographics, customer expectations, legislative requirements,
technological and environmental factors.
Value-based/Affordable
The City will utilize practices, interventions and operations that aim at balancing the
lifecycle cost of asset ownership, agreed levels of service, risks, and aims at maximizing
value from assets and services.
Holistic
The City will take a holistic approach that looks at the "big picture" and considers the
combined impact of managing all aspects and stages of the asset life cycle.
7.0
Roles and Responsibilities
The development and continuous support of the City's asset management program
requires a wide range of duties and responsibilities. The following passages outline the
persons responsible for these tasks:
1. Council
i. Approve the strategic asset management policy and direction of the asset
management program through its approval of the City's asset
management plan by Resolution
ii. Conduct an annual review of the City's progress in implementing the
asset management plan, identify any factors impeding implementation
and develop a strategy to address these factors; on or before July 1 in
each year, starting the year after the asset management plan is complete
iii. Maintain adequate organizational capacity to support the core practices
of the asset management program
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 8 of 9
iv. Prioritize effective stewardship of assets in adoption and ongoing review
of policy and asset management plan
v. Approve capital and operating budgets delivered by staff
vi. Approve levels of service
2. Executive Lead
i. The Manager of Operations or designate will act as the executive lead
ii. Endorse each asset management plan and updates to the asset
management plan
3. Leadership Team
i. Development of policy and policy/plan updates
ii. Provide corporate oversight to goals and directions and ensure the asset
management program aligns with the City's strategic plan
iii. Ensure that adequate resources are available to implement and maintain
core asset management practices
iv. Define levels of service and make recommendations to Council
v. Report on asset management program progress and results
vi. Provide organization-wide leadership in asset management practices
and concepts
vii. Maintain adequate organizational capacity to support the core practices
of the asset management program
viii. Prioritize effective stewardship of assets in adoption and ongoing
review of policy and asset management plan
ix. Manage budgets based on lifecycle activities and financial management
strategies
4. Departmental Staff
i. Utilize the new business processes and technology tools developed as
part of the asset management program
ii. Participate in implementation task teams to carry-out asset management
activities
iii. Implement and maintain defined capital asset levels of service
iv. Track, analyze and report on asset management program progress and
results
June 2019
Corporation of the City of Pembroke
Revision #:
Strategic Asset Management Policy
Date: June 2019
Policy: T2019-01
Treasury
Coverage: Corporate
Page 9 of 9
5. Public
i. Engage and voice level of service expectations and concerns to Council
and staff through public engagement opportunities
ii. Engage in discussions about strategic priorities and target levels of
service long-term