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POLICY Effective Date February 27, 2017
Section: Finance
Title: Asset Management Policy
PURPOSE
This Policy sets guidelines for implementation of organizational-wide asset management
processes to meet the asset-intensive sustainable service delivery needs of the Town.
1.0 POLICY STATEMENT
Infrastructure asset management is the strategic and tactical business practice of
managing community infrastructure. Asset management encompasses many
disciplines within the Town and involves the entire organization. To guide the
organization, the following policy statements have been developed:
1.1 The Town of Oliver will maintain and manage infrastructure assets at
sustainable levels to support public safety, community well-being, economic
prosperity and community goals.
1.2 The Town of Oliver will monitor standards and service levels to ensure they
meet and support the Town’s needs, goals and objectives.
1.3 The Town of Oliver will develop, maintain and report on asset inventories of
all its infrastructures.
1.4 The Town of Oliver will establish infrastructure investment strategies through
the use of full life-cycle costing principles.
1.5 The Town of Oliver will plan financially for the appropriate level of
infrastructure investment to deliver service levels and extend the useful life of
assets at acceptable levels of risk.
1.6 The Town of Oliver will plan for and prove sustainable long-term funding to
replace and/or renew and/or expand and/or decommission infrastructure
assets.
1.7 Where appropriate, the Town of Oliver will consider and incorporate asset
management in its other corporate plans.
1.8 The Town of Oliver will report to citizens regularly on the status and
performance of work related to the implementation of this asset management
policy.
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2.0 GOALS FOR INFRASTRUCTURE ASSET MANAGEMENT
2.1 Council’s vision and goal for the Town is a safe, liveable, resilient,
sustainable and economically vibrant community underpinned by well-
managed and maintained infrastructure assets. These assets include, but are
not limited to: efficient transportation networks, economic and safe reliable
water distribution networks, safe and reliable sewage collection systems,
reliable information technology systems, productive fleets, accessible parks
and civic facilities.
2.2 Though these assets age and deteriorate, by using sound asset management
practices, Council and the community can be assured that the assets meet
performance levels, are used to deliver the desired service in the long term,
and are managed for present and future users.
2.3 This policy is to articulate Council’s commitment to asset management, and
guide staff using the policy. In doing so, this policy also outlines how it is to
be integrated within the organization in such a way that it is coordinated, cost
effective and organizationally adopted and used. This policy also
demonstrates to the Town that Council and staff are exercising good
stewardship, and is delivering sustainable services while considering its
legacy to current and future residents, businesses and industries.
2.4 Staff will implement the policy through the development and use of asset
management practices. Since the performance of asset management is
organization-specific, reflective of knowledge, technologies and available
tools, and will evolve over time, the responsibility for guidelines, practices and
development of support tools are delegated to staff.
3.0 RESPONSIBILITIES
3.1 Town policies are approved by Council. Staff, public and other agencies may
provide input on the nature and text of the policy, Council retains the authority
to approve, update, amend or rescind policies.
3.2 The Chief Financial Officer has responsibility for Asset Management plans,
strategies and procedures as well as reporting to Council on the effectiveness
of Asset Management practices and their outcomes.
4.0 POLICY OJBECTIVES
The key principles of the asset management policy are as outlined below.
The Town of Oliver shall:
4.1 Make informed decisions, identifying all long-term cost drivers and revenues
associated with infrastructure asset decisions, including additions and
deletions.
4.2 Trade-offs and decisions should be articulated and evaluated and the basis
for the decision recorded.
4.3 Use available resources effectively and manage assets in a sustainable
business manner, minimizing total life cycle costs of assets.
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4.4 Collaboratively integrate corporate, financial, business, technical and
budgetary planning and decision-making for infrastructure assets.
4.5 Establish organizational accountability and responsibility for asset inventory
and reporting system, data rules/definitions, levels of service, risk and
performance.
4.6 Consult with stakeholders when and where appropriate.
4.7 Implement cost containment practices and explore economies of scale to
reduce cost pressures.
4.8 Report the performance of its asset management program through such
vehicles as the annual report.
This policy shall be implemented by staff using accepted industry guidelines and
practices (such as Asset Management for Sustainable Service Delivery: A BC
Framework and assetmanagementbc.ca website) and staff shall consider the use
of an asset management strategy and asset management plans.
The organization will also comply with required capital asset reporting
requirements and integrate the asset management program into operational plans
throughout the organization.
Strategic asset management plans may be developed for a specific class of
assets, or be generic for all assets, and should outline long term goals, processes
and steps toward how they will be achieved. The asset management plans should
be based on current inventories and condition (acquired or derived), projected
performance and remaining service life and consequences of losses (e.g.
vulnerability assessments, Emergency Management BC Critical Infrastructure
Consequences of Loss Assessment).
Operational plans should reflect these details. Replacement portfolios and
associated financial plans should consider alternative scenarios and risks, as well
as include public consultations.