HomeMy Public PortalAboutAsset Management Policy_P-092_Effective January 12, 2023Municipality of the District of Chester
Asset
Management
Policy
Policy P-092
Effective Date: January 12, 2023
Asset Management Policy P-092 (continued)
MUNICIPALITY OF THE DISTRICT OF CHESTER
POLICY P- 092
ASSET MANAGEMENT POLICY
1. INTRODUCTION
1.1. The Municipality of the District Chester provides a wide range of services to the
community that require the ownership and responsible operation, maintenance, and
rehabilitation of physical and natural assets.
Asset Management is an integrated approach involving all Municipality of the District
of Chester (MODC) departments to deliver value to the community via the effective
management of existing and new assets.
The intent is to maximize benefits, reduce risks and provide quality levels of service to
the community in a sustainable manner. Good asset management is fundamental to
achieving sustainable and resilient communities.
This policy outlines the fundamental asset management principles to be implemented
by the Municipality of the District of Chester and will be undertaken in the following
three stages.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 2 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice —Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
2. PURPOSE
2.1. The Asset Management Policy establishes a framework for a range of services for the
community that require management. The framework should consider, where
applicable, the following options during the useful life of an asset or asset category:
• Design
• Acquisition
• Construction
• Operation
• Maintenance
• Repair
• Modification
• Relocation
• Reuse
• Refurbishment
• Replacement
• Recycle
• Disposal
In summary, the Asset Management Policy aims to:
2.1.1. Establish responsible governance of asset management by the MODC.
2.1.2. Demonstrate MODC's commitment to asset management and the continuous
improvement of associated practices.
2.1.3. Define policy statements for asset management that are appropriate for the
MODC's services, and that are reasonable and sustainable.
2.1.4. Define current asset management processes and procedures that will provide
guidance to staff while developing and reviewing departmental Asset
Management Strategies and subsequent Asset Management Plans.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 3 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice — Council — January 12, 2023 (2023-003)
Effective Date - January 12, 2023
Asset Management Policy P-092 (continued)
2.1.5. Provide guidance to Council, aligning asset management objectives with long-
term capital plans and strategic priorities.
3. GUIDING PRINCIPLES AND VALUES
3.1. The MODC establishes asset management as an integrated approach that involves all
of the Municipality's departments in order to deliver value to the community through
the effective management of existing and new assets.
3.2. To maximize benefits, reduce risk, and provide appropriate levels of service to the
community in a sustainable manner.
3.3. Good asset management is fundamental to achieving sustainable and resilient
communities.
3.4. The MODC is committed to balancing stakeholder expectations, risk, affordability, time
constraints; support of Council's strategic priorities, and to explore technological and
practical advances.
4. POLICY STATEMENTS
Scope
4.1. The Asset Management Policy applies to all assets owned and/or maintained by the
MODC to deliver a range of appropriate services to residents and visitors.
4.2. Specific asset focus will be provided in the most current version of the departmental
Asset Management Plans.
4.3. The MODC recognizes the importance of natural assets and will include these in its
service inventories and asset management practices, where applicable.
4.4. Where service provision is supported by assets not owned by the MODC, the MODC
will work collaboratively with those asset owners and promote the principles outlined
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 4 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice —Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
in this policy. As a result, the departmental Asset Management Plans will include, where
appropriate, processes and procedures for those assets the MODC does not own.
4.5. The Asset Management Policy does not replace existing strategic priority planning,
capital planning, or budgeting processes currently and actively utilized by the MODC.
Instead, the Asset Management Policy complements, aligns with, and serves as cross -
departmental and cross -functional framework.
4.6. The implementation, review, and reporting associated with this Policy will be integrated
with the MODC's existing reporting processes.
4.7. The progress of the departmental Asset Management Strategies and Asset
Management Plans will be reviewed periodically to ensure levels of service are achieved,
as well as legislative, regulatory and policy compliance is maintained.
Roles and Responsibilities
4.8. Council will establish responsible governance of asset management by the MODC
through:
4.8.1. Reviewing and adopting this Policy as a governance commitment to Asset
Management.
4.8.2. Incorporating this Policy into its strategic planning, risk management, and long-
term capital planning processes.
4.8.3. Approving plans and budgets associated with the Municipality's asset
management practices.
4.8.4. Ensuring necessary capacity (including, but not limited to resources, financial
support, staff competencies, business processes, and integrated information
systems) to support of the overall asset management system.
4.8.5. Setting priorities for the MODC's administration.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 5 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice —Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
4.9. The Chief Administrative Officer (CAO) and staff will administer and implement the
operational and corporate practice of asset management through:
4.9.1. Implementing this Asset Management Policy using accepted industry guidelines
and best practices, where appropriate, and in compliance with all applicable
legislation and regulations.
4.9.2. Developing guidelines for the management, financing, and operation of current
and future assets and the delivery of services.
4.9.3. Providing Council with appropriate and timely advice regarding the departmental
Asset Management Strategy's effectiveness.
Working collaboratively to develop and update the departmental Asset
Management Strategies, which will include the following components: Plans and
associated budgets for the management of the MODC's assets. An inventory of
assets by major service and category that constitute the current scope of the
MODC's asset management practice.
A clear process for assessing the condition, use, and performance of assets.
Service Delivery
4.10. To maintain a service delivery focus, the MODC will:
4.10.1. Comply with all relevant legislative, regulatory, and statutory requirements.
4.10.2. Strive to manage and maintain assets sustainably to meet clearly defined Levels
of Service that balance stakeholder expectations with risk, affordability, and
capacity.
4.10.3. Develop a risk -based decision -making that considers impact to stakeholders
when evaluating decisions on maintaining, enhancing or reducing Levels of
Service.
4.10.4. Ensure adherence to industry best practices to provide clear understanding
and evaluation of all options available.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 6 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice — Council — January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
4.10.5. To provide the service (or its elimination), recognizing advances in technology,
marketplace, and changing business models.
4.10.6. Comply with current best practices associated with the mitigation of MODC's
carbon footprint to tackle climate change.
4.10.7. Consult actively, clearly, and meaningfully with stakeholders, where appropriate,
and be responsive to stakeholder input and feedback.
4.10.8. Recognize that Levels of Service can change over time and, therefore, proactively
monitor standards and service levels to ensure they continue to support
stakeholder and Council expectations and objectives, as well as legislative or
regulatory compliance.
Integrated Decision Making
4.11. To apply integrated decision making to asset management, the MODC will:
4.11.1. Include corporate, financial, business, community, environmental, social, technical,
and budgetary plans.
4.11.2. Implement a holistic approach to asset management that considers the impacts
of decisions on stakeholders, and will make informed, evidence -based decisions
using formal and consistent processes and procedures.
4.11.3. Consider assets in larger service delivery and notjust as an isolated asset.
4.11.4. Take a comprehensive approach to asset management that considers the
complete lifecycle of the asset including acquisition, design, construction,
operation, maintenance, modification, rehabilitation, replacement, and disposal.
Long -Term Sustainability & Risk
4.12. To apply long-term sustainability and risk considerations to asset management, the
MODC will:
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 7 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice — Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
4.12.1. Strive to manage assets and deliver services that are sustainable for the
community and local environment.
4.12.2. Proactively consider anticipated challenges of the community's expectations,
legislative requirements, climate change impacts, and needs of future
generations.
4.12.3. Consider financial, social, cultural and environmental sustainability goals and risks
in decision -making processes.
4.12.4. Identify and adequately plan for required levels of operations, maintenance and
replacements associated with new infrastructure.
4.12.5. Use available resources effectively to minimize total lifecycle costs and maximize
value of assets.
4.12.6. Consider proactive resilience when making infrastructure asset investment
decisions, including, but not limited to, capital renewal and operational
maintenance.
Change & Resiliency
4.13. To evaluate change and resiliency preparations in asset management, the MODC will:
4.13.1. Consider climate change impacts and how they may directly affect levels of
service.
4.13.2. Incorporate methods and technologies to improve infrastructure resilience.
4.13.3. Consider future growth and demand requirements to ensure assets are adapted
to meet demographic changes and the needs of future generations.
Financial and Investment Decision Making
4.14. To apply financial and investment decision making to asset management, the MODC
will:
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 8 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice — Council — January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
4.14.1. Make informed decisions that identify full lifecycle revenues and costs including
acquisition, design, construction, operation, maintenance, modification,
rehabilitation, replacement, and disposal.
4.14.2. Recognize that that there are constantly changing financial constraints and
challenges that surround all assets and services and that asset management
practices must be proactive and responsive to changing environments.
4.14.3. Recognize that sustainable service delivery requires long-term financial planning.
4.14.4. Embrace opportunities and challenges that arise from innovation and new
technologies.
4.14.5. Establish appropriate measures, outcomes, and targets to evaluate the
effectiveness of the investment.
Commitment to Clear & Transparent Processes
4.15. To demonstrate commitment to clear and transparent processes in asset
management, the MODC will:
4.15.1. Operate with a structure of organizational accountability and responsibility
for service delivery.
4.15.2. Embed asset management principles and practices across all departments and
service areas within the MODC.
4.15.3. Adopt a consistent and repeatable approach to the management of MODC's
assets and associated processes that will ensure services are provided in an
efficient and effective manner.
4.15.4. Ensure transparency to stakeholders regarding service delivery and asset
performance by engaging the community and sharing information and
knowledge both internally and externally.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 9 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice —Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
4.15.5. Report to Council periodically on the performance of departmental Asset
Management Strategies and Plans, particularly in terms of Levels of Service and of
Asset Management Objectives.
Procurement
4.16. The MODC will follow its Procurement Policy P-04 when acquiring assets pursuant to
this policy.
Innovation and Continual Improvement
4.17. To demonstrate commitment to innovation and continual improvement in asset
management, the MODC will:
4.17.1. Measure the effectiveness of asset management and make adjustments as
required.
4.17.2. Determine the necessary education and training requirements to recruit, train, and
retain the appropriate staff.
5. POLICY ROLES AND RESPONSIBILITIES
5.1. The following is a summary of roles and, where applicable, procedures associated with
the ongoing maintenance of this policy:
Responsible
Municipal Council
Accountable
CAO; Departmental Heads
Consulted
All Department Directors
Informed
All staff of the Municipality; stakeholders
6. DEFINITIONS
6.1. "Asset" means an item or entity that has potential or actual value to the Municipality.
Assets may be 'physical assets' (including land, buildings, roads, vehicles, equipment,
IT, sewer and water infrastructure); and 'natural assets' (including water bodies, tree
canopies, shrubs, turf and wetlands). Assets may have values that are tangible or
intangible, financial or non -financial.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 10 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice —Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
6.2. Asset Management" (AM) means coordinated activities that balance costs,
opportunities, and risks against the desired performance of assets to achieve
organizational objectives over time. AM enables an organization to examine the need
for, and performance of, assets and asset systems at different levels and in conjunction
with non -asset solutions. In principle, and when integrated as part of current and active
AM practices, AM encompasses all asset types and all activities involved in an asset's
life cycle.
6.3. "Asset Management Objectives" means results achieved by providing a link between
organizational objectives, especially as they relate to levels of service, and
departmental Asset Management Plans. Asset management objectives describe, in
general terms, the activities and actions required to achieve required asset outcomes
as services provided by the Municipality. These activities and actions are described in
detail in the Municipality's Asset Management plans.
6.4. "Asset Management Plan" (AMP) means a plan developed for the management of
assets that combines cross -functional management strategies (including
administration, operational, technical and financial) over the lifecycle of the asset in
the most cost-effective manner to deliver a specified level of service. The plan
specifies the activities, resources, and timescales required for assets in order to
achieve the Asset Management Objectives.
6.5. "Asset Management Policy" means the governance statement of an organization's
principles and approach to asset management.
6.6. "Asset Management Strategy" means a systematic approach to the acquisition,
maintenance, and disposal of all assets within the Municipality. It defines the principles
which assets contribute to the AM system via analysis, action and accountability.
6.7. "Asset Management System" means a system for asset management that encapsulates
all the components that make up the Municipality's approach and practices for effective
asset management. An AM system should be able to accommodate the management
of assets at various organizational levels ranging from the operational level where
assets are directly managed; through the corporate level where integration across asset
groups, customer levels of service, and departments are facilitated; to the governance
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 11 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice —Council—January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
level where assets and levels of service articulate visioning frameworks and long-term
capital planning.
6.8. "CAO" means the Chief Administrative Officer of the Municipality of the District of
Chester, or their designate.
6.9. "Council" means the elected officials that make up the Council of the Municipality of
the District of Chester.
6.10. "Infrastructure" means the network of physical and natural assets developed and/or
utilized by the Municipality to support its physical, social, cultural, and economic
activities and services.
6.11. "Levels of Service" means statements of service performance delivery and are
established through Council direction, the needs and wants of the community, as well
as legislative and regulatory requirements, where appropriate. Levels of Service may be
assessed using indicators such as quality, quantity, reliability, responsiveness, safety,
and cost for an activity or service area against which service performance may be
measured.
6.12. "Life Cycle Cost" means consideration of all recurring and one-time costs over the full
life -span or a specified period of an asset, including costs for the following, as
appropriate: acquisition, design, construction, operation, maintenance, modification,
rehabilitation, replacement, and disposal.
6.13. "Municipality" means the Municipality of the District of Chester.
6.14. "Resilience" means the capacity, created through proactive asset management, to
withstand disruption, absorb disturbance, act effectively in a crisis, adapt to changing
conditions including climate change, and grow over time; in short, resilience is an
expression of the Municipality's principle of strategic business continuity.
6.15. "Stakeholders" means persons (such as residents, visitors) and organizations (such as
businesses, public sector agencies) that can affect, be affected by, or perceive
themselves affected by an activity or decision.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 12 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice —Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
6.16. "Sustainability" means, in an AM context, managing assets using a balanced approach
to meet the long-term economic, social, cultural, physical, operational, and
environmental needs of the community.
7. RELATED DOCUMENTATION
7.1. The following is related legislation, regulations, by-laws, resolutions, policies, and
other documentation that support this policy.
Municipal Government Act
Legislation
Gas Tax Fund Agreement
Administration
Integrated Community Sustainability Plan
Administration
Procurement Policy
Administration
Municipal Planning Strategy
Administration
By -Laws & Policies re: roads, wastewater, subdivisions,
etc.
Legislation
Schedule of Services & Associated Assets
Administration
Municipal Climate Change Action Plan
Administration
Community Engagement Strategy
Administration
8. REVIEW REQUIREMENTS
8.1. The CAO will lead a review of this policy as part of the annual review of the Asset
Management Plan. Any recommendations for amendments or repeal must be
authorized by Council. Amendments must be captured in the Version Log below. Note
any former policies replaced by a new or amended policy under 'Amendment
Description', when applicable.
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 13 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice — Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023
Asset Management Policy P-092 (continued)
Version
Number
Amendment
Description
Consulted
Accountable
Approval Date
2022
Policy created
Asset
CAO
January 12,
and adopted
Management
2023
Team/Committee;
Strategic
Management
Team
Annotation for Official Policy Book
To provide a policy to effectively manage the variety
of assets required for the safe, efficient, and
Reason for Adoption
effective operations needed to provide the
multitude of services that the Municipality currently
offers.
Committee of the Whole
Notice of Intention to Adopt
December 1, 2022 (2022-507)
Council
Date of First Notice at Council
December 8, 2022 (2022-518)
Council
Date of Second Notice at Council
January 12, 2023 (2023-003)
Effective Date
January 12, 2023
1 certify that this Policy was adopted by Council as indicated above.
January 23, 2023
Pamela . Myra, unicipal Clerk Date
Notice of Intention to Adopt — Committee of the Whole - December 1, 2022 (2022-507) Page 14 of 14
First Notice — Council — December 8, 2022 (2022-518)
Second/Final Notice — Council —January 12, 2023 (2023-003)
Effective Date -January 12, 2023