City s strategies to achieve its operational and financial objectives It is an integral component of the City s Long Term Financial Plan

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1 COUNCIL POLICY RESOLUTION POLICY NUMBERI506 DATE January PURPOSE To outline the Corporation sposition with regard to Asset Management including roles and responsibilities related to Asset Management POLICY STATEMENT The City of Kitchener Strategic Plan and the Infrastructure Services Department Business Plan identify the Corporate Asset Management Program as one of the City s strategies to achieve its operational and financial objectives It is an integral component of the City s Long Term Financial Plan The City will promote the use of asset management principles and practices City departments in all The program will assist departments to optimize processes for the creation operation maintenance renewal and disposal of assets The program will promote the provision of services at a customer expectations with cost and business risk level that balances POLICY 1 Definitions Asset Management is a combination of management financial economic engineering and other practices applied to assets physical with the objective of providing the required level of service in the most cost effective manner at an acceptable level of risk It involves decision making and actions throughout the lifecycle of physical assets Corporate Asset Management the application of asset management practices on a corporate level to maximize consistency among the diverse asset groups Corporate asset management creates efficiency by harmonizing service levels and business processes wherever possible KITCHENER Page 1 of 5 JANUARY 2012

2 Asset Management Plans asset specific plans which are regularly updated to develop strategies and implement actions in order to achieve objectives and targets Asset Management Plans will provide an understanding of The extent of the City s asset inventory Condition of each asset in the inventory Existing and desired service levels Demands on the assets Financial commitments needed to operate maintain rehabilitate upgrade and replace assets Policies and programs needed to be sustainable Public and business risk of asset failure Lifecycle the cycle of activities that an asset goes through retains an identity as an asset while it Lifecycle Cost the total cost of an asset throughout its life including planning design construction acquisition operation maintenance rehabilitation renewal and disposal costs Physical Asset or Tangible Capital Asset has the following features It is physical in nature It has a value It enables services to be provided It is subject to lifecycle costing It has an economic life greater than three 3 years 2 City Strategic Plan Priorities and Directions The Asset Management Program resides within the City s Strategic Plan as part of Section 2 Effective and Efficient Government Priorities namely Priority E2 E2 Asset Management A solid Corporate Asset Management program ensures the availability and sustainability of existing and future assets for the City of Kitchener The four strategic directions of the Asset management Program are E2 1 Affordable Services Link the operating and capital funding levels to the required levels of service and corporate goals for each asset type with a view to providing the flexibility to respond to changing conditions KITCHENER Page 2 of 5 JANUARY 2012

3 E2 Dependable Services Set priorities for asset rehabilitation and replacement based on a combination of the business risk exposure and appropriate treatment strategies E2 3 Planned Maintenance Develop advanced Asset Management Plans comprising long range funding requirements for both the existing and future asset inventories E2 4 Prioritized Funding Link the Asset Management Plans to the City s Strategic Direction for Financial Management 3 Corporate Asset Management Program A The major components of the program will include a corporate asset registry corporate work management systems decision support models and asset management plans Asset Registry The asset registry will maintain an inventory of the City s tangible capital assets including their value performance characteristics maintenance history and estimated remaining life Corporate Work Management Systems The systems will track workflow from service request to task completion and integrate existing major information systems to track asset performance over time and improve quality and reliability of data in the asset registry Asset Management Plans Asset Management Plans will be developed within departments for groups of assets specific to those departments The plans will leverage the data in the registry and known best practices to identify and implement improvements in business processes in order to balance a level of service that meets customer expectations with providing the service with the costs and risks associated B The objectives of the Corporate Asset Management Program are 1 Establish and maintai n a record of the value and lifecycle depreciation of City all tangible assets owned by the 2 Review on an on going basis business processes related to asset acquisition asset maintenance asset disposition and KITCHENER Page 3 of 5 JANUARY 2012

4 service provision Establish a set of corporate standards to promote consistency in how assets are managed 3 current Modify business processes where justified to improve operational effectiveness and efficiency 4 Ensure all legislative requirements and regulatory standards are met 5 Support the development and improvement of decision making tools that promote doing the right thing to the right asset at the right time 6 The development of enhanced communication tools to illustrate complex concepts in plain language 7 Achieve continuous improvement in asset management process through ongoing improvements to data quality to provide increased forecast reliability 4 Scope and Application This policy applies to all staff using or managing tangible assets to provide services for the City The City s physical assets which will benefit from the Asset Management Program fall into one of the twelve following groups Each group has been assigned an asset owner and an asset steward Water Utility Gas Utility Wastewater Sanitary Utility Stormwater Utility Parking Enterprise parking lots Golfing Enterprise golf courses Fleet parking structures club houses Facilities civic maintenance fire community centres arenas museums Roads pavement sidewalk bridges culverts traffic signs lighting Parks sports fields playgrounds pedestrian bridges pathways trails Forestry street trees natural areas active parkland Cemeteries KITCHENER Page 4 of 5 JANUARY 2012

5 5 Roles and Responsibilities Following is the governance framework for the Corporate Asset Management Program CITY COUNCIL CORPORATE LEADERSHIP TEAM CORPORATE ASSET MANAGEMENT SPONSOR Deput rcao liifrastructure Services ASSET MANAGEMENT STEERING COMMITTEE Chair Asset Owners IT rep Finance repcit worlcs PM DIRECTOR OF ASSET MANAGEMENT Chair of the Steering Committee ASSET MANAGEMENT STEWARDS MANAGERS 12 Groups Council approves asset management policies and asset fimding allocation through the annual corporate budget process Corporate Leadership Team provides corporate oversight to the program to ensure that the goal and directions of the program are maintained and that the program remains consistent ith the overall corporate Strategic Plan Deputy CAO Infrastructure Services is the eiecutive sponsor ofthe Asset Management program providing overall leadership to the program and reporting on the program to the Corporate Leadership Team Asset Man ement Steering Committee ill maintain the momentum of the Asset Management Program The Committee will provide direction set priorities approve work programs and allocate resources AssetOHers are Directors ith accountabilit T over one or more of the 12 asset groups AssetOmers are responsible for the assets themselves delivery programs associated tiith the assets as ell as the service Director of Asset Management chairs the Asset Management Steering Committee and ill develop orlc programs project lists project timelines resource allocation and project budgets to ards achieving the directions goals and objectives Corporate Asset Management Program Polio document outlined in the Asset Ste ards Mana are responsible for the management of the asset regishtit to which they are assigned The responsibilities eitend to all of the improvement projects that impact on the sustainabilit oftheir assets KITCHENER Page 5 of 5 JANUARY 2012