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Corporate Policy
POLICY TITLE:
STRATEGIC ASSET MANAGEMENT POLICY
POLICY CATEGORY:
Administration
POLICY NUMBER:
ADM-001
POLICY TYPE:
Corporate
DEPARTMENT:
Environmental Services
POLICY AUTHOR:
Engineering
APPROVED BY:
City Council
EFFECTIVE DATE:
June 16, 2025
REVIEW DATE:
June 1, 2029
POLICY STATEMENT
The City of St. Thomas is committed to the strategic management of municipal
infrastructure in delivering optimum levels of service to its residents and customers in a
sustainable and cost-effective manner. In accordance with Ontario Regulation 588/17
Asset Management Planning for Municipal Infrastructure, this policy details the approach
and key principles to achieve approved levels of service, ensure long-term sustainability,
demonstrate fiscal responsibility, and to establish an evidence-based decision-making
framework to guide asset investment decisions in support of building a Brighter Future.
To guide the municipality the following policy statements have been developed:
- The City will develop and maintain an asset inventory of all municipal infrastructure
assets which includes unique ID; description and location information; value (both
historical and replacement); performance characteristics and/or condition;
estimated remaining life and estimated repair, rehabilitation or replacement date;
and estimated repair, rehabilitation or replacement costs. The City will strive to
enhance its asset inventory by continually collecting and updating asset attribute
information.
- The City will implement a corporate-wide asset management program through all
departments. The program will promote lifecycle and risk management of all
municipal infrastructure assets with the goal of achieving the lowest total cost of
ownership while meeting approved levels of service.
- The City will develop and establish its asset investment and financial strategies
with a focus on ensuring the lowest overall lifecycle (service life) cost of the asset,
the management of risk factors related to the asset, while delivering and
maintaining the asset at approved levels of service.
- The City will coordinate planning of interrelated municipal infrastructure assets with
separate ownership structures by pursuing collaborative opportunities with
neighbouring municipalities and jointly-owned municipal bodies wherever viable
and beneficial.
- 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.
Policy No. ADM-001
Page 2 of 15
City of St. Thomas
PURPOSE
The purpose of this policy is to formalize the City's direction, functions, practices and
responsibilities associated with the management of infrastructure assets used to support
the delivery of City services. This includes:
- Outlining the organizational context including the importance of employing asset
management principles to the management of assets to support the City's vision
and goals.
- Establishing a framework for undertaking asset management in a structured and
coordinated way across the City to deliver services.
- Communicating and ensuring a common understanding of key responsibilities and
review processes for asset management.
By using sound asset management practices, the City will work towards ensuring that all
municipal infrastructure assets meet expected performance levels and continue to
provide approved levels of service 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 the
community through the adoption of best practices regarding asset management planning.
DEFINITIONS
Unless otherwise noted, the definitions provided in this policy align with those outlined in
ISO 55000 or O. Reg. 588/17 Asset Management Planning for Municipal Infrastructure.
Asset
An item, thing or entity that has potential or actual value to an
organization. Includes traditional assets (roads and utilities),
cultural assets (public art, monuments), facility assets (social
housing, recreational, government) and natural resources that are
used in or impacted by the delivery of services (trees, parks, land,
water).
Asset
Management
(AM)
Coordinated activity of an organization to realize community value
from its assets. This involves planned actions and coordinated
activities of an organization to optimally and sustainably manage
its assets that will enable the assets to provide the desired level
of service in a sustainable way, while managing risk at the lowest
life-cycle cost.
Asset
Management Plan
(AMP)
A strategic document developed for the management of assets
that combine multi-disciplinary management strategies (including
technical and financial) over the lifecycle of the asset in the most
cost-effective manner to deliver a specified level of service.
Policy No. ADM-001
Page 3 of 15
City of St. Thomas
Level of Service
(LOS)
The parameters or combination of parameters that reflect the
social, political, economic, and environmental outcomes that the
organization delivers. Levels of service statements describe the
outputs or objectives an organization or activity intends to deliver
to customers.
Risk Management The application of a formal process to assess organizational risks
in order to determine: the consequence of failure, their probability
of occurrence, and what actions may be taken to reduce the
organization's overall risk exposure.
Capital Threshold The minimum dollar level a municipality will use to determine
which material assets will be capitalized and which will be
expensed and is consistent with the principles and standards
established by the Public Sector Accounting Board of Canada.
Tangible Capital
Asset (TCA)
A legislative reporting requirement specified Section PS 3150 in
the Public Sector Accounting Board Handbook to identify asset
inventories, additions, disposals and amortization on an annual
basis.
Lifecycle
The various phases of an asset's life that are identified as;
planning and construction, operations, maintenance and disposal.
Each phase has its own opportunities, risks, impacts and costs.
Lifecycle cost
Total cost of constructing, maintaining, renewing, operating and
decommissioning an infrastructure asset throughout its service
life.
AUTHORITY
This policy operates under the legislative authority derived from O. Reg. 588/17 Asset
Management Planning for Municipal Infrastructure made under the Infrastructure for Jobs
and Prosperity Act, 2015.
SCOPE
This policy applies to all members of the City's organization, and all municipally owned
physical assets or asset systems, including natural assets owned and operated by the
City and used to deliver services to the community. The City is committed to operating,
maintaining and managing assets at defined levels of service to ensure that they meet
community expectations, compliance, and legislative requirements by:
- Establishing asset management strategies through full lifecycle costing principles.
- Collecting, organizing, managing and maintaining accurate asset datasets for all
assets through data governance protocols.
- Adopting risk-based decision-making processes to manage risk exposure.
Policy No. ADM-001
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City of St. Thomas
- Developing and enhancing asset management knowledge and competencies to
ensure the availability of skill sets required for implementation of asset
management programs.
- Planning and implementing the optimum level of maintenance to ensure asset
reliability while maximizing asset lifecycle and reducing risk exposure.
- Financial planning for sustainable long-term funding to rehabilitate, replace or
dispose of infrastructure assets.
- Monitoring and evaluating performance of assets and associated programs to track
effectiveness.
POLICY
This policy establishes consistent standards and guidelines to manage the City's assets
by applying sound technical, social, and economic principles. These principles consider
the present and future needs of users and the City's requirement to deliver services
through assets. It demonstrates the commitment of the City to establish mechanisms that
encourage principled, evidence-based, and strategic long-term infrastructure planning
decisions to achieve City goals.
Strategic Alignment
The City's vision is "building a Brighter Future where everyone belongs and has
opportunities to thrive". Achieving this vision requires the alignment of many City
initiatives. This alignment is necessary to properly consider whether the level of service
provided by existing and planned assets supports the City's vision. An integrated asset
management approach is necessary to successfully develop an Asset Management Plan
that aligns with existing policies and plans throughout the City.
Strategic Plan
The Asset Management Plan supports the City's Strategic Plan in outlining a shared
vision for the future of St. Thomas, reflecting the priorities of the community, Council and
staff.
Official Plan
Provides the criteria and direction for growth surrounding asset decision-making
processes.
Long Term Financial Plan
The Asset Management Plan is a key component to the Long-Term Financial Plan,
serving the purpose of managing infrastructure assets that combines multi-disciplinary
management techniques (including technical and financial) over the lifecycle of the asset
in the most cost-effective manner to provide a specific level of service.
Policy No. ADM-001
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City of St. Thomas
Business Plans
The service level and budget set out in the Asset Management Plan are incorporated into
department business plans and budgets, goals and performance measures.
Capital Plan
The capital plan consists of a capital budget incorporating asset lifecycle needs over a
10-year horizon, forecasting timelines and funding sources.
Master Plans
The Asset Management Plan utilizes and incorporates various master plans, including
but not limited to, the Transportation Master Plan, St. Thomas Cycling and Trails Master
Plan, Transit Master Plan, Water and Wastewater Master Plans, Airport Master Plan,
Parks and Recreation Master Plan, etc.). In turn the asset management plan may
influence future master plans and recommendations.
Other Plans and Initiatives
The asset management approach will also review other plans and initiatives in place
throughout the City to ensure that asset construction and lifecycle activities align with
these plans and initiatives.
Governance
The development and continuous support of the City's asset management program
requires organization-wide participation and collaboration from Council, staff and various
stakeholders over a wide range of duties and responsibility. The following table outlines
some of the key asset management responsibilities by role.
Role
Responsibilities
City Council
- Approve, by resolution, the Strategic Asset Management
Policy and the City's Asset Management Plan.
- Approve Levels of Service.
- Review and approve capital and operating funding associated
with asset management through annual budgeting process.
- Maintain adequate organizational capacity and resources to
support core practices of the asset management program.
- Prioritize effective stewardship of assets in adoption and
ongoing review of policy and budgets.
- Review annual reporting on the status and performance of the
asset management program.
- Support ongoing efforts to continuously improve and
implement the asset management program.
Policy No. ADM-001
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City of St. Thomas
Leadership Team
- Ensure compliance with the Strategic Asset Management
Policy and Provincial asset management Regulations.
- Review levels of service measures/metrics and recommend
proposed levels of service targets to City Council.
- Incorporate lifecycle costing and levels of service
considerations when evaluating competing asset investment
needs and developing asset management strategies.
- Review financial analysis and develop financial strategies to
support the Asset Management Plan and incorporate these
strategies into the budget.
- Provide corporate oversight to goals and directions and
ensure the asset management program aligns with the City's
strategic plans and master plans.
- Ensure the asset management program is updated and
accurate for all assets under their departmental responsibility.
- Foster and support continuous improvement in all asset
management processes and activities.
- Provide departmental staff coordination.
Executive Lead -
Director of
Environmental and
Infrastructure
Services/City
Engineer
- Communicate the vision of asset management at a corporate
level, encourage engagement with the processes, and
provide the guidance necessary to ensure alignment and
integration across the organization.
- Update and endorse the Strategic Asset Management Policy
and Asset Management Plan for Council approval.
- Provide organization-wide leadership in asset management
practices and concepts.
- Identify resources required for implementation of the
Strategic Asset Management Policy and the Asset
Management Plan.
- Coordinate annual reporting on the status and performance
of the asset management program.
- Ensure completeness and accuracy of asset data in the asset
management plan and implement strategies to address
identified data gaps.
Asset Management
Working Group /
Asset Management
Coordinator
- Define and monitor levels of service measures/metrics and
suggest proposed levels of service to the Leadership Team.
- Complete annual reporting on the status and performance of
the asset management program
Policy No. ADM-001
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City of St. Thomas
- Assist with the development of lifecycle costing and levels of
service for all assets
- identify data gaps and develop strategies to update and
maintain the asset management system for all assets.
- Suggest new business processes and technology tools as
part of continuous improvement in asset management.
- Track, analyze and report on asset management program
progress and results.
- Reconcile asset management plan data with tangible capital
asset data annually.
Departmental Staff
- Participate in implementation task teams to carry-out asset
management activities.
- Utilize new business processes and technology tools
developed for improved asset management.
- Implement, monitor, and maintain approved levels of service.
- Complete regular inspections and provide data and
information on assets and services to help ensure an up-to-
date asset management system.
Residents and
Stakeholders
- Participate in public information sessions, surveys, and other
stakeholder engagement initiatives.
- Provide feedback related to levels of service, service
experience, and service expectations.
- Notify the City through appropriate means, when service
deficiencies or failures are observed.
Asset Management Framework
The asset management process is meant to align with and complement existing corporate
processes such as budgeting and strategic planning. The intent of the process is to
provide a long-term perspective that is focused on the integral challenges associated with
the assets that support achieving the City's strategies and objectives. The City's asset
management system can be categorized into key processes and resources shown within
Figure 1.
Functional Processes: The processes involved in understanding and defining
requirements, and asset lifecycle management strategies, and
Enabling Processes: The supporting process and resources that make functional
processes possible.
Policy No. ADM-001
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City of St. Thomas
Figure 1: Asset Management Process
The asset management system incorporates the development, engagement, and
implementation of several City guiding documents, policies, and plans that are updated
on a regular basis. Engagement in these processes is key to ensuring that the asset
management system reflects community goals and desires. The asset management
system integrates strategic planning, financial planning and budgeting, lifecycle planning,
service levels and risk, as shown in Figure 2.
Policy No. ADM-001
Page 9 of 15
City of St. Thomas
Figure 2: Asset Management System
Principles
The Guiding Values of the City's Brighter Future Strategic Plan will serve as a basis for
defining and incorporating the principles required under the Infrastructure for Jobs and
Prosperity Act, 2015 into the day-to-day operations of the City:
Policy No. ADM-001
Page 10 of 15
City of St. Thomas
The City will establish clearly defined levels of service and apply
asset management practices to ensure the continued provision
of core public services that are within the City's jurisdiction and to
maintain customer confidence in the management of City assets.
The risk associated with attaining establish levels of service will
be managed by focusing resources based on cost/benefit and
risk assessments, recognizing that public safety is priority.
The City will take a comprehensive approach to investment
planning and decision making that considers all assets in a
service context and the combined impact of managing the entire
asset
lifecycle
while
taking
into
consideration
asset
interrelationships to clearly identify infrastructure priorities using
a formal risk framework to make better informed asset
management decisions.
Effective asset management will apply industry best practices,
interventions, and operations that aim to reduce lifecycle costs
while satisfying established levels of service. The basis of
Policy No. ADM-001
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City of St. Thomas
decision-making will include balancing service levels, risks, and
costs to identify the best combination of investments that deliver
the greatest value while respecting funding, resource, and timing
constraints, including any applicable fiscal plans or budgets, such
as those released under the Fiscal Transparency and
Accountability Act, 2004 or adopted under Part VII of the
Municipal Act, 2001.
The City recognizes the need to take a long-term view on
infrastructure planning and investment to enable decision making
that ensures assets are able to meet the needs of citizens and
address future challenges, while also taking into consideration,
among other things, demographic and economic trends in the
area.
The City recognizes the impact infrastructure may have on the
environment and will endeavor to minimize these impacts by
respecting and maintaining ecological and biological diversity.
Infrastructure investment designs will be augmented to ensure
resiliency to the effects of climate change and incorporate the use
of acceptable recycled aggregates when appropriate.
The City 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.
The determination of infrastructure needs shall be evidence-
based and transparent, and, subject to any restrictions or
prohibitions under an Act or otherwise by law on the collection,
use or disclosure of information, the City shall:
- Make decisions with respect to infrastructure based on
information that is publicly available or made available to
the public; and
- Share information with implications on infrastructure and
investment decisions with the Government and broader
public sector entities.
Policy No. ADM-001
Page 12 of 15
City of St. Thomas
The City views continual improvement as an essential element of
successful asset management. The City will foster innovation by
continually monitoring industry best practices and updating its
asset management approach, creating opportunities to make use
of innovative technologies, services, and practices, particularly
those that have been developed in Ontario, for improved asset
management planning and investment including:
- Complete and Accurate Asset Data
- Condition Assessment Protocols
- Risk and Criticality Models
- Lifecycle Management
- Financial Strategy Development
- Level of Service Framework
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. All aspects of the City's asset management
approach will consider economic competitiveness, productivity,
job creation and training opportunities.
The City is committed to protecting the health and safety of
workers involved in the construction and maintenance of
infrastructure assets by prioritizing safe work environments and
by adhering to Health and Safety Regulations and Standards
mandated by the Occupational Health and Safety Act, 1990 and
any other regulations or standards required for the construction
or maintenance of infrastructure assets.
The City will plan infrastructure investments to promote
community social and economic benefits arising from an
infrastructure project that are intended to improve the well-being
of the community through:
- Local job creation and training opportunities;
- Improvement of public space within the City;
- Promoting accessibility for persons with disabilities; and
- Any other specific benefits identified by the community.
Policy No. ADM-001
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City of St. Thomas
Community Planning
Asset management planning will be aligned with the Province of Ontario's land-use
planning framework, including any relevant policy statements issued under section 3(1)
of the Planning Act, 1990 and the City's Official Plan or any other applicable Provincial
Plans. The combination of sound planning principles, lifecycle analysis, and financial
sustainability will inform the design and selection of community development or
redevelopment that requires new assets or enhancement of existing assets.
Those responsible for managing municipal assets impacted by community development
or redevelopment will be consulted when the Official Plan is being prepared and/or
reviewed and the direction established through the Official Plan and any supporting
studies, assumptions, and data will be referenced in the City's asset management plan.
The aim of cross-referencing these plans is to ensure that development or redevelopment
occur within the City's means through shared understanding and consideration of current
and future asset needs.
Climate Change
The City is committed to the development of tailored actions that make the best use of its
resources to mitigate and adapt to climate change. Climate change and community
resiliency will be considered as part of the City's risk management strategy related to
asset management planning. This strategy will balance the potential cost of vulnerabilities
to climate change impacts and other risks against the costs of reducing these
vulnerabilities.
A balance will be struck in the levels of service delivered through operations, lifecycle
management, maintenance schedules, disaster response plans, contingency funding,
and capital investments. As part of its asset management planning the City will consider
adaptation opportunities to manage vulnerabilities and mitigation approaches to climate
change, such as greenhouse gas emission reduction targets.
Capitalization Threshold
This 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 for identifying assets from the capitalization thresholds, which are
developed for the purpose of financial reporting. For this reason, inclusion within the Asset
Management Plan will not be based solely on the capitalization thresholds identified in
the City's Tangible Capital Assets (TCA) policy, but rather every asset that provides value
or has the potential to provide value and connects to the ability to deliver a level of service
shall be evaluated for inclusion within the Asset Management Plan, individually or pooled
with similar assets, as determined by the professional judgement of the City's Leadership
Team.
Policy No. ADM-001
Page 14 of 15
City of St. Thomas
Financial Planning and Budgeting
The City will integrate the Asset Management Plan 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 replace and/or renew municipal infrastructure
assets based on full lifecycle costing.
By utilizing a cross-functional team that includes finance, asset management, and
concerned service areas, it is the intention that asset management planning will align with
and inform all financial plans through the use of common data sources and analytical
methods to the best extent possible. Relevant financial plans include, but are not limited
to:
- Financial plans related to water assets as required under the Safe Drinking Water
Act, 2002;
- Financial plans related to other service areas such as wastewater assets, transit,
and parking;
- Development Charge Background Study and By-law and any subsequent updates;
and
- City-wide long range financial plan and subsequent updates.
The City's asset management plan is to be referenced by service areas in the preparation
of their budget submissions to help:
- Identifying all potential revenues and costs (including operating, maintenance,
replacement, and decommission) associated with forthcoming infrastructure
asset decisions;
- Evaluating the validity and need of each significant new capital asset, including
considering the impact of future operating costs with consideration to climate
change impacts;
- Consider new revenue tools and alternative funding strategies where possible
Community Engagement
The City's Strategic Plan commits to collaborating with our partners and communities to
build a Brighter Future where everyone belongs and has opportunities to thrive. To help
achieve this vision, the City will seek to understand the needs of its residents and consider
the needs of future generations, and incorporate these perspectives into asset
management planning. The City recognizes that its residents are an integral part of the
asset management approach. Accordingly, the City will:
- Ensure appropriate information is available to residents and facilitate an
understanding of key information.
Policy No. ADM-001
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City of St. Thomas
- Provide opportunities for residents and other stakeholders served by the City to
provide input into asset management planning.
- Promote the coordination of asset management planning with other infrastructure
asset owning agencies such as municipal bodies and regulated utilities.
COMMUNICATION
This policy and accompanying asset management plan will be posted on the City's
website and will be updated every four years during the second year of every new term
of Council to promote, document, and communicate continuous improvement of the City's
asset management program.
The City's Asset Management Plan will be reviewed annually with Council to assess the
City's progress of its implementation, identify any barriers to its implementation, and
identify strategies to overcome such barriers in conjunction with the City's annual State
of Local Infrastructure report.
REFERENCE DOCUMENTS/LEGISLATION
The City's Asset Management Policy and Asset Management Plan align with the following
legislation, standards, and best management practices:
- Infrastructure for Jobs and Prosperity Act, 2015
- Ontario Regulation 588/17 - Asset Management Planning for Municipal
Infrastructure
- Development Charges Act, 1997
- ISO 55000, 55001, and 55002 Asset Management Standards
- Federation of Canadian Municipalities - Asset Management Policy, Strategy and
Governance Framework
- Tangible Capital Asset Policy