HomeMy WebLinkAboutFIN 080 Strategic Asset Management PolicyDICKERING
Policy
Procedure Title: Strategic Asset Management Policy
Policy Number
FIN 080
Reference
Date Originated
Date Revised (m/d/y)
Pages
Infrastructure for Jobs and
(m/dly)
7
Prosperity Act, 2015,
June 25, 2018
Ontario Regulation 588/17
FIN 050 Accounting for Tangible
Assets Policy
Report FIN 16-18
Resolution 455/18
(Council Meeting - June 25, 2018)
Approval: Chief inis - 'eve Officer
Point of Contact
Senior Financial Analyst, Finance
Policy Objective
The objective of this policy is to provide leadership and commitment to the development and
implementation of the City of Pickering'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 now and in the future.
By using sound asset management practices, the City will endeavour to ensure that all
municipal infrastructure assets meet, through best efforts, performance levels and continue to
provide desired service levels in the most efficient and effective manner.
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.
Index
01 Definitions
02 Background
03 Procedures
04 Roles and Responsibilities
05 Authority
06 Scope
07 Principles
08 Alignment with the City's Strategic Direction
01 Definitions
01.01 Asset Management (AM) - the coordinated activity of an organization to realize
value from assets. It considers all asset types, and includes all activities involved
in the asset's lifecycle from planning and acquisition/creation; to operational and
maintenance activities, rehabilitation, and renewal; to replacement or disposal
and any remaining liabilities. Asset Management is holistic and normally involves
balancing costs, risks, opportunities and performance benefits to achieve the
total lowest lifecycle cost for each asset.
01.02 Asset Management Information System - a combination of processes, data,
software, and hardware applied to provide the essential outputs for effective
Asset Management such as reduced risk and optimum infrastructure investment.
01.03 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.
01.04 Capitalization Threshold - the value of a municipal infrastructure asset at or
above which a municipality will capitalize the value of it. If below, the
municipality will expense the value of it.
01.05 Level of Service - parameters, or combination of parameters, which reflect
social, political, environmental and economic outcomes that the organization
delivers. Parameters can include, but are not necessarily limited to, safety,
customer satisfaction, quality, quantity, capacity, reliability, responsiveness,
environmental acceptability, cost, and availability.
01.06 Lifecycle Activities - activities undertaken with respect to a municipal
infrastructure asset over its service life, including constructing, maintaining,
renewing, operating and decommissioning, and all engineering and design work
associated with those activities.
01.07 Municipal Infrastructure Asset (MIA) - an 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.
Policy Title: Strategic Asset Management Policy
Policy Number: FIN 080
Page 2 of 7
02 Background
02.01 Asset Management (AM) has been an ongoing practice at the City since the
development of Section 3150 of the Public Sector Accounting Board (PSAB)
Handbook in 2009. At the City, Finance staff, with the assistance of other
department staff, have worked continuously towards the development and
maintenance of a comprehensive and accurate inventory of all MIAs that serves
as a strong foundation for long-term financial planning and budgeting. This policy
will ensure that all of the work that has been put into the development of the
City's MIA inventory is leveraged to optimize investment and the sustainability of
municipal infrastructure.
02.02 The City is responsible for providing a range of services to the community,
including transportation networks, stormwater management, parks and facilities.
To deliver these services, it owns and manages a diverse MIA portfolio of roads,
bridges, culverts, parks and facilities. As the social, economic, and environmental
wellbeing of the community depends on the reliable performance of these MIAs,
it is critical to implement a systemic, sustainable approach to their management.
02.03 AM is such an approach, and refers to the set of policies, practices and
procedures that allow an organization to realize maximum value from its MIAs.
An AM approach allows organizations to make informed decisions regarding the
planning, building, operating, maintaining, renewing, replacing and disposing of
MIAs through a wide range of lifecycle activities. Furthermore, it is an
organization -wide process that involves the coordination of activities across
multiple departments and service areas. As such, it is useful to adopt a
structured and coordinated approach to outlining the activities, roles and
responsibilities required of corporate staff, as well as the key principles that
should guide all AM decision-making.
02.04 A comprehensive and holistic. AM approach will support cost efficient and cost
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 MIAs.
In addition, it will align the City with provincial standards and regulations such as
the Infrastructure for Jobs and Prosperity Act, 2015, Ontario Regulation 588/17,
or other current provincial legislation, enabling the organization to take full
advantage of available grant funding opportunities.
02.05 The development, support and maintenance of an AM program requires the
ongoing use of an organization -wide suite of software modules. This Asset
Management Information System should include at a minimum a digital asset
register, a geographic information system, and a financial management system.
02.06 The approval of this policy is an important step towards integrating the City's
priorities with its AM program, and ensuring that critical MIAs and vital services
are maintained and provided to the community in a safe, reliable, sustainable
manner.
Policy Title: Strategic Asset Management Policy
Policy Number: FIN 080
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03 Procedures
03.01 The City will implement an AM program throughout all departments. The
program will promote lifecycle and risk management of all MIAs, with the goal of
achieving the lowest total cost of ownership while meeting desired levels of
service.
03.02 The City will implement best practices regarding AM planning, including:
a) Complete and Accurate Asset Data
b) Condition Assessment Protocols
c) Risk and Criticality Models
d) Lifecycle Strategy Development
e) Financial Strategy Development
f) Level of Service Framework
03.03 The City, through best efforts, will maintain an asset inventory of all MIAs which
includes unique ID, description, 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, wherever possible.
Reliable, consistent, and current asset condition data and costing is
fundamental to a comprehensive and sustainable AMP.
03.04 The City will develop an AMP that incorporates all infrastructure categories and
MIAs that meet the capitalization thresholds outlined in the organization's
Accounting for Tangible Capital Assets Policy, as updated.
03.05 The AMP will be updated at least every five years in accordance with 0. Reg.
588/17 requirements, or current provincial legislation, to promote, document and
communicate continuous improvement of the AM program.
03.06 The City, through best efforts, will integrate AMPs and practices with its long-
term financial planning and budgeting strategies.
03.07 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.
03.08 The City, through best efforts, will develop meaningful performance metrics and
reporting tools.
03.09 The City, through best efforts, will consider the risks and vulnerabilities of MIAs
to climate change and the actions that may be required including, but not limited
to, anticipated costs that could arise from these impacts, adaptation
opportunities, mitigation approaches, disaster planning and contingency
Policy Title: Strategic Asset Management Policy
Policy Number: FIN 080
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funding. Impacts may include matters relating to operations, levels of service
and lifecycle management.
03.10 The City will align all AM 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.
03.11 The City will coordinate planning for interrelated MIAs with separate ownership
structures by pursuing collaborative opportunities with neighbouring
municipalities and jointly -owned municipal bodies wherever viable and
beneficial.
03.12 The City will develop processes and provide opportunities for residents,
stakeholders, and other interested parties to offer input into AM planning
through the annual budget process.
04 Roles and Responsibilities
04.01 Council:
a) Approve and support this policy;
b) Maintain adequate organizational capacity to support the core practices of
the AM program; and
c) Prioritize effective stewardship of assets in adoption and ongoing review of
policy and budgets.
04.02 Director, Finance & Treasurer:
a) Development of policy, and updates as required;
b) Provide corporate oversight to goals and directions and ensure the AM
program aligns with the City's strategic priorities; and
c) Ensure that adequate resources are available to implement and maintain
core AM practices.
04.03 Senior Management Team:
a) Provide departmental staff coordination;
b) Establish and monitor levels of service; and
c) Track, analyze and report on AM program progress and results.
Policy Title: Strategic Asset Management Policy Page 5 of 7
Policy Number: FIN 080
04.04 Senior Financial Analyst:
a) Development of policy, and updates as required;
b) Provide organization -wide leadership in AM practices and concepts;
c) Provide departmental staff coordination;
d) Establish and monitor levels of service; and
e) Coordinate and track AM program implementation and progress.
04.05 Departmental Staff:
a) Utilize any business processes and technology tools for the AM program;
b) Participate in implementation task teams to carry -out AM activities; and
c) Establish and monitor levels of service.
05 Authority
This policy shall be administered by the Finance Department, and the Treasurer shall
have the authority to interpret any provisions in this policy necessary for the good and
efficient conduct and business of the City. Any changes shall be approved by Council.
06 Scope
This policy applies to all operations of the City including any Agencies, Boards and
Commissions. It applies to the Pickering Public Library to the extent that it does not
conflict with the role of the Board or Chief Executive Officer under the Public Libraries
Act,
07 Principles
07.01 The City shall consider the following principles as outlined in section 3 of the
Infrastructure for Jobs and Prosperity Act, 2015, when making decisions
regarding AM:
a) Infrastructure planning and investment should take a long-term view;
b) Infrastructure planning and investment should take into account any
applicable budgets, fiscal restraints and fiscal plans;
c) Infrastructure priorities should be clearly identified in order to better inform
investment decisions respecting infrastructure;
d) Infrastructure planning and investment should ensure the continued
provision of core public services;
Policy Title: Strategic Asset Management Policy
Policy Number: FIN 080
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e) Infrastructure planning and investment should promote economic
competitiveness and productivity;
f) Infrastructure planning and investment should ensure that the health and
safety of workers involved in the construction and maintenance of
infrastructure assets is protected;
g)
Infrastructure planning and investment should foster innovation by creating
opportunities to make use of innovative technologies, services and
practices;
h) Infrastructure planning and investment should 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;
j)
Information with implications for infrastructure planning should be shared
between the City and broader public sector entities, and should factor into
investment decisions respecting infrastructure;
Where provincial or municipal plans or strategies have been established in
Ontario, under an Act or otherwise, but do not bind or apply to the City, as
the case may be, the City should nevertheless be mindful of those plans
and strategies and make investment decisions respecting infrastructure
that support them, to the extent that they are relevant.;
k) Infrastructure planning and investment should promote accessibility for
persons with disabilities;
Infrastructure planning and investment should consider the impact of
infrastructure on the environment;
m) Infrastructure planning and investment should endeavor to make use of
acceptable recycled aggregates; and
Infrastructure planning and investment should promote community
benefits, being the supplementary social and economic benefits arising
from an infrastructure project that are intended to improve the well-being of
a community affected by the project.
08 Alignment with the City's Strategic Direction
AM planning should endeavour to align with the strategic business objectives of the City
and should be reviewed regularly to ensure that it aligns with the changing and emerging
strategic goals and priorities of the organization.
Please refer to all associated Policies, Procedures and Standard Operating Procedures, if
applicable, for detailed processes regarding this Policy.
Policy Title: Strategic Asset Management Policy
Policy Number: FIN 080
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