Asset Management Policy

Windsor, Ontario

This is the exact embedded text of the captured official document. Snapshot a4d4ba1d4f53 · verified 2026-06-10 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

Asset Management Policy Page 1 of 7 THE CORPORATION OF THE CITY OF WINDSOR POLICY Service Area: Finance Policy No.: FI.A2.22 Department: Asset Planning Approval Date: DEC 12, 2022 Division: Asset Planning Approved By: CR 511/2022 City-wide Effective Date: IMMEDIATE Subject: ASSET MANAGEMENT POLICY Procedure Ref.: Multiple Review Date: DEC 12, 2027 Pages: Replaces: CR 638/2017 Prepared By: AM Governance Project Team Date: OCT 16, 2017 1. POLICY 1.1 The City of Windsor manages the community assets by striving to meet defined upon levels of service at the lowest asset lifecycle costs and at acceptable levels of risk. 1.2 In order to achieve the goals and benefits of Asset Management (AM), the Senior Manager Asset Planning (SMAP) will endeavour to apply the following principles across all aspects of the AM System: 1.2.1 Holistic - a comprehensive approach that looks at the "big picture" (i.e. the combined implications of managing all aspects rather than a compartmental approach). This includes the functional interdependencies and contributions of assets within asset systems and the different management of assets across all lifecycle phases. 1.2.2 Systematic - a methodical approach to the management of assets that is formal, repeatable and consistent, leveraging available data for evidence- based decision-making. 1.2.3 Systemic - making asset investment decisions in an asset system context, not just optimized for each individual asset itself. 1.2.4 Risk-based - risk associated with target levels of service is managed by ensuring that resources, expenditures and priorities are allocated based on risk and associated cost/benefit and risk tolerance. 1.2.5 Optimal - best possible asset investment decisions are chosen based on evaluations of alternatives that take into account trade-offs between the competing factors of service level benefits (including asset performance), risk and cost over the long term and full lifecycle of assets. 1.2.6 Sustainable - the approach to service delivery is financially achievable over the long term, is not wasteful of resources, minimizes or reverses environmental damage, and continuously improves social and inter- generational equality. The approach for estimating asset investment need and developing AM strategies is based on achieving triple-bottom-line outcomes over the long term, and considers the full lifecycle of assets. 1.2.7 Integrated - all of the above principles are coordinated to ensure the delivery of justified services and well-defined outcomes. 1.2.8 Aligned - the AM System complements and contributes to achievement of the strategic objectives of the City, as well as complying with relevant legislation and regulations. Asset Management Policy Page 2 of 7 2. PURPOSE This Asset Management Policy describes the City of Windsor's intentions and directions for asset management, as formally expressed by its senior management. It confirms the City's commitment to managing community assets in a short and concise document and sets out the principles that will be adopted in applying asset management to achieve the Council's strategic objectives. 2.1 Establish responsible governance for the practice of asset management by the City. 2.2 Document the City's commitment to asset management and the continuous improvement of asset management practices. 2.3 Guide staff in the development and administration of an asset management approach by defining over-arching principles for asset management, which are appropriate for the City's business, and are reasonable, logical, and necessary for delivery of sustainable, affordable services. 2.4 Comply with Ontario Regulation 588/17 requiring municipalities to develop and implement an asset management plan and provide supporting policies for municipal infrastructure. 3. SCOPE 3.1 This Policy applies to those departments within the City of Windsor that manage or influence community assets or asset systems that deliver services to the community and citizens in the City of Windsor. City policies are approved by Council and while staff, public and other agencies may provide input on the nature and content of the policy, Council retains the authority to approve, update, amend or rescind policies. 3.2 The City of Windsor's asset management system should inform existing corporate strategy, business planning and budget management systems and processes already in place. The asset management system complements and aligns to these initiatives. 3.3 The implementation, review and reporting back regarding this policy is expected to be integrated within the City's business processes. Due to the importance of this policy, it will be reviewed in concert with the Asset Management Plan. 3.4 This policy will endeavour to work in concert with Council strategic direction and related plans and policies that impact on scope. Asset Management Policy Page 3 of 7 4. RESPONSIBILITY 4.1 The Organizational Structure for AM Governance shall be as follows: Note: CMMS = Computerized Maintenance Management System 4.1.1 Council will be responsible for: 4.1.1.1 Maintaining the necessary corporate capacity (including, but not limited to, resourcing, financial support, staff competencies, business processes, data and integrated information systems) to support the elements and practices of an AM System. 4.1.1.2 Setting priorities for Asset Management and articulating community values. 4.1.1.3 Approving asset funding through the ten-year capital budget and 20 year long-range financial plans. 4.1.2 The CAO is responsible for: 4.1.2.1 Directing/facilitating the review of this Policy at a minimum of every five (5) years, or as often as necessary. 4.1.2.2 Implementation of this AM Policy and supporting AM System, including the provision of appropriate and timely advice regarding its effectiveness in supporting the achievement of Council's strategic objectives. 4.1.2.3 Establishing an Asset Planning Steering Committee and appointing of the cross-functional representatives from relevant business areas to serve on the Steering Committee as well as Chair for the Steering Committee. 4.1.3 The Steering Committee Chair is responsible for: 4.1.3.1 Ensuring an acceptable accounting structure is developed that supports the sustainable management of assets. 4.1.3.2 Ensuring the development and implementation of funding strategies to support implementation of this policy, based on available resources. 4.1.4 Detailed responsibilities within the governance structure are assigned in the AM Philosophy and Framework document (2017). Oversight Advocacy & Leadership Management & Implementation Senior Manager & Manager of Asset Planning Asset Management Network Collaboration & Support Asset Planning Coordinators CMMS Network Asset Planning Steering Committee (Chair appointed by CAO) Council, CAO Asset Management Policy Page 4 of 7 5. GOVERNING RULES AND REGULATIONS 5.1 At the direction of City Council the City of Windsor shall use best efforts to: 5.1.1 Make informed decisions, based on Triple Bottom Line (TBL) understanding of service performance, cost, and risk associated with community asset decisions, including additions and deletions. Trade-offs should be articulated and evaluated, and the basis for the decision recorded. 5.1.2 Integrate corporate, financial, business, land-use, environmental, community, technical, regulatory and budgetary planning for community assets. 5.1.3 Establish a clear structure of organizational accountability and responsibility for service delivery, managing risk, and the inventory, condition, use and performance of assets. 5.1.4 Define and articulate service levels and outcomes, including required levels of operations, maintenance, and replacements linked to new infrastructure. 5.1.5 Consult with stakeholders where appropriate and when sufficient information is available in a format that is useful to stakeholders to make an informed decision. 5.1.6 Manage assets to achieve sustainable service delivery, considering financial, social and environmental sustainability goals, including awareness of intergenerational equity, climate change, resource scarcity, and the precautionary principle. 5.1.7 Pursue best appropriate practices as applicable to the state of AM, state of the assets, and the data available for evidence-based decision-making. 5.1.8 Maintain a prioritized improvement plan for the continuous improvement of the AM System. 5.1.9 Recognize that that there are constantly changing financial, social and environmental opportunities, constraints and challenges that surround all services and assets delivered by the City, and that asset management practices must be proactive and responsive to changing environments. 5.1.10 Consider climate change impacts, how they may directly affect levels of service, and systematically build resiliency characteristics into assets, systems, and services. 5.2 Terms and definitions used to describe actions required. 5.2.1 Asset Management Plans - will contain strategic, tactical and operational guidance for asset classes. These Asset Management Plans will assess the current status of types of assets and will become guiding documents for data management, condition assessment, operations, maintenance, renewal and replacement, and Capital Improvement Plan planning. They will be developed for all major asset classes (e.g., roads, bridges, water, wastewater, storm water, buildings, and vehicles). These plans will have, at a minimum, a 20-year outward focus and will be updated on a 5-year basis. Asset Management Policy Page 5 of 7 5.2.2 Organizational Capacity - The City will work to clarify roles and responsibilities throughout the organization and ensure that the right skills and competencies are available for effective asset management. 5.2.3 Risk Management - The City will have a good understanding of its corporate, asset, and operational risks in order to be confident that it is appropriately investing in any risk mitigation activities needed to manage service levels. In addition, the City will need to assess and quantify risk and consider the probability and consequence of failure when making Capital Improvement Plan, Operation & Maintenance, and other resource allocation decisions. 5.2.4 Triple Bottom Line (TBL) Approach - staff will assess projects and initiatives based on a TBL and Life Cycle Cost (LCC) approach, wherein the City will consider financial, social and environmental costs and benefits. 5.2.5 Asset Data and Business Support Systems - Asset data and supporting data systems, such as computerized maintenance management systems (CMMS) and geographic information systems (GIS), will be used by staff to enable asset management business processes and decision-making. 5.2.6 Life Cycle Management - investment decisions (Capital and Operating), whether large or small, are based on an understanding and optimizing of the balance between total life-cycle costs, risks and benefits. 5.2.7 Regulations - The City will adhere to all applicable regulations regarding their assets. 5.3 References and Related Documents 5.3.1 Asset Management Philosophy and Framework. 6. RECORDS, FORMS AND ATTACHMENTS 6.1 Identify the filing and retention requirements of items generated. 6.2 List names of relevant forms and form numbers. 6.3 List attachments. 6.3.1 Schedule A - Key Asset Management Terms and Definitions Asset Management Policy Page 6 of 7 SCHEDULE A Key Asset Management Terms and Definitions Asset Management (AM): Coordinated activity of an organization to realize value from its assets. AM involves the balancing of costs, opportunities and risks against the desired performance of assets, to achieve organizational objectives (balancing may need to be considered over multiple timeframes). AM enables an organization to examine the need for, and performance of, assets and Asset Management Systems at different levels and in conjunction with non-asset solutions. Additionally, it enables the application of analytical approaches towards managing assets over the different stages of their lifecycle. Asset Management System (AM System): The complete set of interrelated or interacting elements used to effect the AM Policy and objectives and the processes to achieve those objectives. The elements that make up the AM System can include documents, procedures, tools, data, and the assets. Asset Management Strategy (AM Strategy): Documented information that specifies: how organizational objectives are converted into AM Objectives; the scope and role of the Asset Management System in supporting achievement of the AM Objectives; and the approach for developing AM Plans (Framework). Asset Management Plan (AMP): A plan developed for the management of infrastructure assets that combines 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. It specifies the activities, resources and timescales required for individual assets (or asset groups) to achieve the organization's AM Objectives. A significant component of the AMP is therefore a long-term program of works and cash flow projection for the activities. Examples of AMPs include Pavement Management Plans, Bridge Management Plans, and Fleet Management Plans. Each plan will vary in complexity depending on the asset group it pertains to. Community assets: Assets managed or stewarded by the city on behalf of the community to deliver, or support delivery of, essential services. Includes traditional assets (roads and utilities), cultural assets (museums, monuments), and natural resources that are used in or impacted by the delivery of services (trees, parks, land, water). Business Case Evaluation (BCE): A formal process undertaken to evaluate the best alternative for a project or initiative. The evaluation involves documenting the activity's Benefits/Cost ratio using life- cycle analysis. 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. Asset Management Policy Page 7 of 7 Lifecycle Costs: Lifecycle costs refer to the total cost of ownership over the life of an asset. This may include but is not limited to capital costs, operating costs, maintenance costs, renewal costs, replacement costs, environmental costs, and user delay. Probability of Failure: The likelihood that a risk will occur (ref: City of Windsor risk policy). Risk Management: The application of a formal process to assess organizational risks in order to determine the resultant ranges of outcomes, their probability of occurrence, and what actions may be taken to reduce the organization's overall risk exposure. Triple Bottom Line: Expands on the traditional view of an organization's financial bottom line by also measuring the organization's commitment to economic, socio-cultural and environmental factors.