HomeMy WebLinkAboutCorporate Asset Management - 9.13.pdfMAPLE RIDGE
British Columbia
POLICY MANUAL
Title: Corporate Asset Management
Policy No : 9.13
Supersedes:
Authority: ® Legislative
Approval: ® Council
❑ Operational
❑ CMT
❑ General Manager
Effective Date: July 11, 2017
Review Date: July 2018
Policy Statement:
The Corporate Asset Management Policy details the principles for implementing a consistent and
coordinated approach in managing City assets to demonstrate sound fiscal stewardship and
secure long-term infrastructure sustainability within the City.
Purpose:
The total replacement value of the infrastructure assets owned by the City of Maple Ridge (City) is
in excess of $1 Billion and ranges in size and complexity from larger asset classes such as roads,
water, sewers, pump stations, storm drainage systems, facilities, parks, fleet through to smaller
classes such as office furniture or computers. The City will continue to evaluate natural assets
such as watercourses and forests to incorporate such assets into the overall Asset Management
Strategy.
Asset Management (AM) is a comprehensive framework to guide the planning, acquisition,
operation and maintenance, rehabilitation, disposal and ultimate replacement of municipal
infrastructure assets. The objective is to maximise asset service delivery potential, manage
related risks and minimize costs of ownership while delivering acceptable levels of service in a
sustainable manner that does not compromise the ability of future generations to meet their own
needs.
The Corporate Asset Management Policy provides the framework to develop a city-wide Asset
Management Strategy as well as plans, operational guidelines and practices to ensure the
successful execution of maintainable service delivery of community services.
Background:
As the City grows, new infrastructure is added to the built environment through development and
capital projects and over time those assets age and deteriorate. The implementation of sound AM
stratagems provide assurance that the City assets (both existing and future) will meet designated
levels of service for the long term.
Page 1 of 5
Policy 9.13
The framework for developing and implementing AM within the City is based upon a number of
steps that range from broad policy statements through to detailed day-to-day actions as illustrated
below:
Policy
Strategy
Plans
Operations
•Sets broad framework to undertake AM in a structured and coordinated manner.
• Establishes support for AM and integrates AM into the City organization.
• Develop structured set of actions aimed at improved AM by the City.
• Review current status, future vision, gap analysis, resources and timeframes.
• Establishes Levels of Service (LOS ) for all asset classes.
• Outline particular action and resources required to provide defined LOS
• Identifies AM activities - operations, maintenance, renewals, capital works,
disposal.
• Financial forecasts for elements within AM plans.
• Detailed day-to-day actions required to deliver the defined LOS.
•Allocation of necessary resources.
• Establishes measurable performance indicators.
Related Corporate Initiatives:
1
1
1
Asset Management is formalized and integrated into other corporate initiatives and documents
such as:
• Vision, Mission & Values Statement
• Official Community Plan
• Community and Neighbourhood Plans
• Financial Plan including Capital and Operating Budgets
• Annual Reports
• Design Criteria and Specifications
• Infrastructure Servicing Plans
In 2004 Council approved the Financial Sustainability Plan policy guidelines (Policy No. 5.52) that
laid the groundwork for the continuance of high quality services and to provide a legacy for future
generations. The FSP policy outlines 13 guidelines ranging from tax base growth, service
demands, efficiencies, debt management, fees and charges capital carryovers, infrastructure
maintenance and replacement and will serve as a sound reference as the City develops the
Corporate Asset Management Strategy.
Page 2 of 5
Policy 9.13
The development and implementation of a Corporate Asset Management Strategy by the City will
provide guidance through a number of policy statements and principles.
Policy Statements
The City will:
1. Develop and maintain asset inventories of its infrastructure
2. Maintain and manage infrastructure assets at defined service levels
3. Establish and monitor standards and service levels to ensure Council objectives are met
4. Establish infrastructure replacement strategies through the use of full life cycle costing
principles
5. Ensure adequate funding to maintain established asset levels of service and maintenance
and extend the useful life of assets as well as to replace, renew and/or decommission
assets
6. Consider and incorporate asset management strategies in City corporate plans including
community planning processes
7. Track progress and provide regular reports
Policy Principles
The City shall:
1. Allocate funding for new assets after considering the full life cycle costs and the economic,
environments, and social benefits of the new asset, seeking to minimize the asset total life
cycle cost
2. Provide information on future maintenance, operation, upgrade, renewal and/or
replacement and decommission requirements
3. Identify the level of service that will be delivered by each asset and how that level of
service will be monitored
4. Establish organizational accountability and responsibility for asset inventory, condition, use
and performance
5. Ensure corporate governance through demonstrable long-term financial planning based
upon sustainable service levels
6. Integrate corporate, financial, business, technical and budgetary planning for infrastructure
assets
7. Undertake public consultation with stakeholders as appropriate
8. Minimize risk to users and risks associated with asset failure
9. Utilize best practices where available
10. Update and maintain infrastructure inventory and life cycle data
11. Report on the performance of the asset management strategy and plans
Definitions:
Asset: Has a physical nature, is a significant economic resource and provides the delivery of
programs and/or services.
Asset Register: A record of the asset information, typically held in a spreadsheet, database or
software system, including asset attribute data such as quantity, type and construction cost.
Page 3 of 5
Policy 9.13
Condition Assessment: The inspection, assessment, measurement and interpretation of the
resultant data, to indicate the condition of a specific component so as to determine the need for
some preventative or remedial action.
Cost -Effective Management: The proactive, as opposed to reactive, management of the
maintenance, repair and rehabilitation activities required to deliver the desired/required level of
service while minimizing the life cycle costs of providing the infrastructure.
Current Replacement Cost: The cost the entity would incur to acquire the asset on the reporting
date. The cost is measured by reference to the lowest cost at which the gross future economic
benefits could be obtained in the normal course of business or the minimum it would cost, to
replace the existing asset with a new modern equivalent asset (not a second-hand one) with the
same economic benefits (gross service potential) allowing for any differences in the quantity and
quality of output and in operating costs.
Levels of Service: Levels of service statements describe the outputs or objectives an organization
or activity intends to deliver to customers.
Life Cycle Costs (LCC): The total cost of an asset throughout its life including planning, design,
construction, acquisition, operation, maintenance rehabilitation and disposal costs.
Natural Assets: Naturally occurring land or subsurface features that perform or support service
delivery to the City (ex: creeks that convey and treat rain water runoff). Also incorporates man-
made features that replicate naturally occurring features (ex: ditches, ponds, wetlands).
Renewal: Works to replace existing assets or facilities with assets or facilities of equivalent
capacity or performance capability.
Risk Management: Coordinated activities to redirect and control an organization with regard to
risk.
Key Areas of Responsibility
Action
Adopt the Asset Management Policy
Develop and maintain asset inventories
Assess infrastructure condition and service levels
Establish and monitor infrastructure replacement levels
through life cycle costing principles
Develop and maintain comprehensive plans for the
appropriate level of maintenance, rehabilitation, extension
and decommissioning of assets
Responsibility
Council
Public Works & Development
Services (PWDS); Finance; Parks;
Fire
PWDS; Parks; Fire
PWDS; Finance; Parks; Fire
PWDS; Finance; Parks; Fire
Page 4 of 5
Policy 9.13
Monitor and review infrastructure standards and defined
service levels
Report on the status of the municipal infrastructure and the
asset management strategy and plans
Both Council and staff have roles to play in the support of
this policy. Council acts as the stewards for all City assets
and approves the policy, participates in the establishing of
levels of service as well as monitoring outcomes. Staff will
develop, implement, monitor and review the Corporate Asset
Management Strategy as well as advance and implement
the operational plans. The Corporate Asset Management
Strategy shall be reported to Council and the community on
a regular basis and may be reviewed by Council on an
interim basis.
Council
PWDS; Finance; Parks; Fire
Page 5 of 5 Policy 9.13