Business Plan: Corporate Asset Management

Transcription

1 Business Plan: Corporate Asset Management How does this service contribute to the results identified in the City of London Strategic Plan? A Strong Economy A Sustainable Infrastructure Corporate Asset Management is a Council approved program premised on making the right decision, at the right time, for the right amount of money as it pertains to the City s infrastructure. Asset management helps optimize investment decisions thereby contributing to the City s financial health, affordable taxes and competitive utility rates. Quality infrastructure supports a strong economy throughout the municipality. The Corporate Asset Management program helps the City identify and prioritize investments in infrastructure to ensure it is strong, safe, efficient, effective and capable of supporting the quality of life desired in our community. Verifiable asset management practices are quickly becoming prerequisites for inter-governmental transfer funding (e.g. gas tax) and stimulus (e.g. Ministry of Infrastructure) programs. Infrastructure stewardship i.e. public safety, infrastructure reliability, accessibility and affordability all contribute to the creation of a strong and caring community where quality services are available to all of London s citizens. Name the main activities done to provide this service: Name The Activities Done To Provide This Service 1. Develop and oversee Corporate Asset Management Program and Technology How Much Did We Do? (optional) Completed Administrative Policy, Strategies and Hierarchy for the management of the City s $10.9 B worth of assets. 2. Acquire technology solution and tools for corporate asset management 3. Finalize State of Infrastructure Report Completed and published. Identified an infrastructure funding gap of $52 M growing to $466 M over the next ten years. Is The City Mandated To Provide This Service? Yes, indirectly as a prerequisite for Transfer Funding Underway 25% complete. Can The Level Of Service Be Changed? 1

2 Name The Activities Done To Provide This Service How Much Did We Do? (optional) 4. Finalize Corporate Asset Management Plan Completed and ready for Council review and approval. Is The City Mandated To Provide This Service? Yes, indirectly as a prerequisite for Transfer Funding Can The Level Of Service Be Changed? What is the current state of this service? Current Objectives / Milestones Corporate Asset Management is a developing program intended to serve staff and Council by providing information and tools for optimized decision making as it pertains to the City s infrastructure. Corporate Asset Management will also provide the information required to comply with Federal legislation PSAB 3150 (Tangible Capital Asset Reporting) and meet the asset management prerequisites for inter-government transfer funding. The program is currently finalizing the preliminary Corporate Asset Management plan, assessing technology solutions and commencing pilot trials in the Transportation and Parks & Recreation service areas. What is Driving this Service? Corporate Asset Management is a Council approved program premised on making the right asset decision, at the right time, for the right amount of money. It provides the quality information and practises necessary for improved corporate decision-making and will improve the efficient and effective management of the City s billions of dollars worth of assets. It will also fulfill the federal and provincial mandate for reporting and transfer funding keeping London on par with its peer municipalities. Challenges and Pressure Points Typically, the development of corporate asset management takes five to seven years. There is pressure to accomplish the program as soon as possible. The City has never applied a common corporate framework to its asset management practises. We are challenged by the enormous scope and varied asset management practises across the City. It is a huge organizational effort and breaks new ground for the City. For part of the program, creating the preliminary plan, the City is committed to satisfying the Provincial guideline. Every Ontario municipality shares this pressure to produce an asset management plan since the latest transfer funding program release in December

3 Recent Achievements With Council approval, the City of London commenced the project in 2011 and to date has completed the current state analysis, finalized the Administrative Policy and eight functional strategies and the asset hierarchy. In 2014 to date, the State of Infrastructure Report was published identifying a current infrastructure funding gap of $52.1 Billion that will grow to $466 Billion over the next ten years. A Preliminary Corporate Asset Management Plan has been drafted that highlights options to address this gap and move the City towards infrastructure sustainability. The assessment of asset management technology needs is well underway with an RFP process planned in the fall of Pilot trials in Transportation and Parks & Recreation will be complete by year end London is recognized as a leader in eastern Canada for the breadth of its project scope covering all core service areas and was a runner up for the 2014 CNAM Tereo Award for excellence in developing and implementing innovative asset management approaches and significant improvements in business performance through the use of asset management tools and techniques. What has been done to manage the budget? The service area has been actively managing its budget by implementing management lead initiatives aimed at creating efficiencies, avoiding costs and generating revenue. These include the following: Efficiencies / Costs Avoided Previous 3 Years By identifying issues through the State of Infrastructure Report 2013 and the Corporate Asset Management Plan 2014, the City is able to proactively plan to address the growth of the Infrastructure funding gap and avoid infrastructure issues in the future. What is the future direction of this service? What future initiatives can be contained within the maintain existing service level budget? 2015 Budget Continue to develop the Corporate Asset Management Program. Develop Asset Management Standards. Establish Performance Measures. Establish measurable targets for the purpose of business planning. 3

4 Update the corporate asset management plan. Implement technology solution suitable for asset management purposes and implement same in order to facilitate decisionmaking in at least three service areas. Pilot asset management practises including risk, level of service and life cycle management in Transportation and Parks & Recreation service areas. Develop service area asset management plans for Transportation and Parks & Recreation service areas Forecast Continue to develop the Corporate Asset Management Program Develop and implement a decision making framework involving planning, engineering, economics, and finance to best manage existing and new municipal assets. Develop Asset Management Standards. Establish metrics and standards regarding asset management, risk assessment, priorities and levels of service. Prioritize Investments Integrate asset management systems to support the budgeting decision-making process to enable best value for corporate investments. Establish Performance Measures Establish measurable targets for the purpose of business planning. Draft service area asset management plans across the corporation. Assess and select technology solution suitable for asset management purposes and implement same in order to facilitate decision-making. Develop, monitor and audit the long term practises of asset management. Undertake asset research to enhance asset management and analyze capital project prioritization for best value. Update the State of Infrastructure and Corporate Asset Management Plan routinely. Implement standardized asset management practices across the corporation. What service adjustments do you plan to make? 2015 Budget Implement technology solution and tools for corporate asset management. Implement standardized asset management practices in Transportation and Parks & Recreation. Commence standardized asset management practices in additional service areas. 4

5 Forecast The implementation of the Asset Management technology will help implement standardized asset management practices across the corporation. Software solutions are intended to support the modelling of asset data providing information on life cycles, risk and level of service. Key Performance Indicators How Much? 1. Number of service areas with documented asset management inventory and condition data in a recognized asset management software system 2. Number of service areas with documented asset management level of service data 3. Number of service areas with documented asset management risk data 4. Number of service areas with individual asset management plans How Well? 5. Infrastructure gap as a percentage of total asset 0.48% 0.48% 0.48% 0.45% 0.43% replacement value 6. Percent asset replacement value in fair or better 76% 76% 75% 75% 75% condition 7. Percent change in 10 year projected infrastructure funding gap from prior assessment n/a n/a 0% -10% -10% Is Anyone Better Off? 8. Increase in infrastructure gap (%) n/a 10% 10% 0% 0% 9. Customer satisfaction rating through annual n/a n/a survey (5pts) te: The majority of performance data will not be generated until the program implementation is well underway late in 2015/