Asset Management Policy

Policy number: 2019-03

Effective date: June 24, 2019

Last revision date: June 24, 2019

On this page

1. Purpose
2. Policy
3. Definitions
4. Responsibilities
5. References

1. Purpose

The purpose of this policy is to provide guidance and a consistent, organization-wide framework for the development and implementation of Haldimand County’s Asset Management System (AMS).

This policy formalizes Haldimand County’s commitment to good stewardship of Infrastructure Assets and emphasizes the importance of accountability and transparency to its stakeholders, through the adoption of sound Asset Management (AM) practices that are legislatively compliant, performed in a safe and environmentally sustainable manner and are aligned with the County’s strategic mission, vision and objectives.

1. Policy

2.1. Objectives

The objectives of this policy are to:

2.1.1.   Provide guidance and a formalized commitment to good stewardship of municipal Infrastructure Assets and safe, sustainable and sound AM practices;

2.1.2.   Provide a consistent framework for developing, implementing and improving an AMS practiced by all levels of the municipality; and

2.1.3.   Provide transparency and accountability and demonstrate to stakeholders, the validity of evidence-based, decision-making processes that incorporate strategic planning, budgets, Level of Service (LOS) and risks, while obtaining the best value from its Infrastructure Assets.

2.3. Guiding Principles:

As per legislative requirements, the County will adopt the following principles for its AMS:

2.3.1.   Forward-Looking: The County will take a long-term view with respect to AM while considering community needs and demographic/ economic trends.

2.3.2.   Budgeting and Planning: The County will incorporate all capital and operating budgets and financial/ fiscal plans, including those prepared for Water & Wastewater (W&WW) Assets or adopted through Provincial legislation.

2.3.3.   Prioritization: The County will clearly identify infrastructure priorities which will drive investment decisions.

2.3.4.   Consistency: The County will ensure the continued provision of Core Public Services.

2.3.5.   Economic Development: The County will promote economic competitiveness, productivity, job creation and training opportunities in support of a strong, desirable, investment-ready and innovative local economy that helps unify the community and uniquely identify Haldimand County’s economic development benefits.

2.3.6.   Health and Safety: The County will ensure that the health and safety of workers involved in the construction and maintenance of Infrastructure Assets is protected.

2.3.7.   Innovation: The County will, where relevant and appropriate, create opportunities to make use of innovative technologies, services and practices, especially those developed in Ontario.

2.3.8.   Transparency: The County will use AM decision-making processes that are evidence- based, transparent and based on publicly available information, subject to any applicable legislative restrictions or prohibitions. The County will also share information and implications resulting from AM decision-making processes with the Government and Broader Public Sector Entities as defined under the Infrastructure for Jobs and Prosperity Act, 2015.

2.3.9.   Integration: The County will, where relevant and appropriate, be mindful and consider the principles and content of non-binding provisional or municipal plans and strategies established under an Act or otherwise, in planning and making decisions surrounding the infrastructure that supports them.

2.3.10.   Community Focused: The County will promote community benefits (i.e. supplementary social and economic benefits) arising from an infrastructure project that is intended to improve the well-being of the affected community, through:

3. Definitions

Asset¹:  Item, thing or entity that has potential or actual value to an organization. Can be tangible (physical) or intangible, financial or non-financial.

Asset Management (AM)¹:  Co-ordinated activity of an organization to realize value from Assets. All Asset types are considered and it includes all activities involved in the Asset’s life cycle.

Asset Management Plan (AMP)^1:  Documented information that specifies the activities, resources and timescales required for an individual Asset or a grouping of Assets, to achieve the organization’s AM objectives.

Asset Management System (AMS):  The collection of policies, strategies, plans, processes, procedures, roles, responsibilities and information that establish a municipality’s formal approach to AM.

Capitalization Threshold:  The value that determines whether an Infrastructure Asset will be included (above value) or not included (below value) in Haldimand County’s AMS. (see Section 2.6. for additional information regarding application to this Policy)

Core Public Services:  Essential municipal services provided to citizens as required by legislation.

Infrastructure Asset:  A non-financial, tangible, municipal Asset, primarily for public use or benefit in Ontario and included in Haldimand County’s AMS. Examples: roads, bridges, culverts, W&WW systems, facilities, fleet vehicles, equipment, software, cemetery features, etc. Also includes green infrastructure such as lands, stormwater systems, waterways, forests, green roofs, etc.

Level of Service (LOS)^1:  Parameters or combination of parameters, which reflect social, political, environmental and economic outcomes that the organization delivers. Parameters can include safety, customer satisfaction, quality, quantity, capacity, reliability, responsiveness, environmental acceptability, cost and availability.

Lifecycle Management:  The process of managing the entire lifecycle of an Infrastructure Asset including identification/ feasibility, planning/ design, procurement/ construction, operation/ maintenance and replacing/ disposal, in order to ensure the best total value is obtained.

Strategic Asset Management Plan (SAMP):  Documented information that specifies how organizational objectives are to be converted into AM objectives, the approach for developing AMP’s and the role of the AMS in supporting the achievement of the AM objectives.

Tangible Capital Asset (TCA):  A physical Asset that has an economic benefit and useful life longer than one accounting period.

1: ISO 55000:2014 – International Standard for Asset Management and The Institute of Asset Management, Asset Management – an anatomy (ver. 3), Dec. 2015

4. Responsibilities

Council

• Prioritize effective stewardship of Infrastructure Assets in the adoption of the AM Policy, Plans, budgets and future updates of these documents (every 5 years).
• Support direction and implementation of the AMS ensuring LOS are established, and sufficient resources and continual improvement practices are in place in order to achieve the municipality’s organizational objectives
• Approve asset funding to ensure financial sustainability for AM through the annual budgets
• Act on behalf of and represent the interests of stakeholders and the community*

Chief Administrative Officer (CAO)

• As the Executive Lead, communicate the vision and importance of AM at a corporate level
• Endorse the AM Policy, Plans and System
• Act on behalf of and represent the interests of Council and the Corporation*

Senior Management Team (SMT) & Financial & Data Services Division

• Review and approve AM documents and strategies proposed by the AM Division
• Provide corporate oversight to AM objectives, activities and goals and ensure the County’s AMS aligns with the Corporate Strategic Plan and other documents as noted in References (Section 5).
• Provide direction to the AM Division with respect to AM projects and initiatives
• Act on behalf of and represent the interests of their respective departments and the Corporation*

Asset Management Division

• Champion the AMS and provide direction to County departments and staff
• Oversee AM activities and develop, manage and improve components of the AMS, including the asset registry, AM analysis/ decision-making tools, construction/ maintenance programs, budget forecasts and required training for County staff
• Monitor the progress and performance of the AMS, ensuring alignment with corporate and AM objectives
• Conduct an annual review on or before July 1st of each year and report on the progress and performance of the AMS to Council, the CAO and SMT
• Receive and distribute AM information to County staff and stakeholders Act on behalf of and represent the interests of County departments*

Divisional Managers

• Direct, manage and support AM activities that fall within their respective areas
• Provide input and feedback for divisional AM activities, including LOS, performance indicators and operational/ resource requirements
• Act on behalf of and represent the interests of divisional staff*

Divisional Staff

• Perform AM activities, including providing/ documenting, updating and improving information for asset registries, performance measures and service levels
• Collaborate with the AM division in developing AM analysis/ decision- making tools, construction/ maintenance programs and budget forecasts

Stakeholders

• Provide input and feedback related to AM, including LOS requirements, experiences and expectations

* with respect to and in keeping with sound AM practices

5. Referencess