Strategic Asset Management Policy

Corporation of the Township of Russell

By-law #2024-103

WHEREAS Sections 9 and 11, of the Ontario Municipal Act, 2001, S.O. 2001, chapter 25 as amended, as amended provides powers and broad authority to municipalities to establish By-laws to govern the structure of the municipality and its local boards; and

WHEREAS Section 270 (1) 5., of the Municipal Act, S.O. 2001, c. 25 as amended, provides that a municipality shall adopt and maintain policies with respect to the manner in which the municipality will try to ensure that it is accountable to the public for its actions, and the manner in which the municipality will try to ensure that its actions are transparent to the public; and

WHEREAS Section 1 of the Infrastructure for Jobs and Prosperity Act, 2015, as amended provides that a municipality shall establish mechanisms to encourage principled, evidence based and strategic long-term infrastructure planning that supports job creation and training opportunities, economic growth and protection of the environment, and incorporate design excellence into infrastructure planning; and

WHEREAS the Ontario Regulation 588/17 has set forth Asset Management requirements, one of which requires all Municipalities in Ontario to have a Strategic Asset Management Policy in place by July 1/2019 and shall review, and if necessary, update it at least every five years.

RESOLVED THAT THE COUNCIL OF THE CORPORATION OF THE TOWNSHIP OF RUSSELL ENACTS AS FOLLOWS:

WHEREAS Sections 9 and 11, of the Ontario Municipal Act, 2001, S.O. 2001, chapter 25 as amended, as amended provides powers and broad authority to municipalities to establish By-laws to govern the structure of the municipality and its local boards; and

WHEREAS Section 270 (1) 5., of the Municipal Act, S.O. 2001, c. 25 as amended, provides that a municipality shall adopt and maintain policies with respect to the manner in which the municipality will try to ensure that it is accountable to the public for its actions, and the manner in which the municipality will try to ensure that its actions are transparent to the public; and

WHEREAS Section 1 of the Infrastructure for Jobs and Prosperity Act, 2015, as amended provides that a municipality shall establish mechanisms to encourage principled, evidence­based and strategic long-term infrastructure planning that supports job creation and training opportunities, economic growth and protection of the environment, and incorporate design excellence into infrastructure planning; and

WHEREAS the Ontario Regulation 588/17 has set forth Asset Management requirements, one of which requires all Municipalities in Ontario to have a Strategic Asset Management Policy in place by July 1/2019 and shall review, and if necessary, update it at least every five years.

Resolved that the council of the corporation of the township of Russell enacts as follows:

Table of Contents

• Purpose
• Definitions
• Responsibilities
• Council
• CAO
• Director of Corporate Services
• Heads of Department
• Asset Management Committee
• AM Committee- Key Department Staff
• Policy
• Procedure
• Appendix 1
• Appendix 2 Township of Russell-Routine Conditions Assessment Timelines

Purpose

This policy provides leadership in and commitment to the development and implementation of the Township’s asset management plan. It is intended to guide the consistent use of asset management across the organization, to facilitate logical and evidence-based decision-making for the management of municipal infrastructure assets and to support the delivery of sustainable community services now and in the future.

By using sound asset management practices, the Township will work to ensure that all municipal infrastructure assets meet expected performance levels and continue to provide desired service levels in the most efficient and effective manner. Linking service outcomes to infrastructure investment decisions will assist the Township in focusing on service, rather than budget, driven asset management approaches.

This policy demonstrates an organization-wide commitment to the good stewardship of municipal infrastructure assets, and to improved accountability and transparency to the community through the adoption of best practices regarding asset management planning.

Definitions

Unless otherwise noted, the definitions provided in this document align with those outlined in Ontario Regulation 588/17 (0. Reg. 588/17), Asset Management Planning for Municipal Infrastructure, under the Infrastructure for Jobs and Prosperity Act, 2015.

Responsibilities

Local governments maintain sustainable asset management practices by supporting staff with training, internally sharing knowledge to highlight the benefits of asset management and participating in external knowledge sharing initiatives. By contributing to, and staying current with, leading practices, local governments deepen their asset management practices.

Council

1. Bring forth the community’s perspectives when managing the Township’s assets and establish levels of service.
2. Support and approve the AM policy and ongoing efforts to continuously improve and implement the AM plan.
3. Maintain adequate organizational capacity to support the core practices of the AM plan.
4. Prioritize effective stewardship of assets in adoption and ongoing review of policy and budgets.

CAO

1. Oversee asset management plan progression and achievement of goals for all departments.
2. Contribute to all AM plans, policies and strategies including reviewing, endorsing and ensuring alignment with the Township’s strategic goals.

Director of Corporate Services/ Treasurer

1. Ensure application of the Corporate AM Policy
2. Incorporate best practices and processes together with Asset Management Committee
3. Provide corporate oversight to goals and directions and ensure the AM plan aligns with the municipality’s strategic plan.

Heads of Departments:

1. Ensure adequate resources are available within their department to implement and maintain core AM practices.
2. Utilize the processes and technology tools developed as part of the AM program.
3. Ensure effective communication, collaboration and organization among the staff members and the asset management committee.
4. Provide support for AM practices within their department.
5. Develop and monitor levels of service for their department and make recommendations to Council.
6. Periodic review and validation of capital replacement costs, condition & risk. of assets under their responsibility
7. Conduct Condition Assessments under their responsibility on approved timeline.
8. Inform and submit completed studies and assessments to AM Committee.

Asset Management Committee

1. Develop & manage policies, plans and updates.
2. Provide organization-wide leadership in AM practices.
3. Track, analyze and report on AM progress and results annually.
4. Monitor & report on AM Levels of Service from database.
5. Advise departments heads of upcoming condition assessment reviews as per approved timeline (Appendix 2) at the budget process.
6. Manage database with yearly additions and disposals, condition assessments & current replacement costs.
7. Conduct Building Condition Assessments for all Municipal Buildings (BCA) as per approved timeline in Appendix 2.
8. Provide departments with annual capital replacement profile, condition & risk reports (May)
9. Ensure compliance with AM principals and legislative requirements.

AM Committee- Key Department Staff

Senior Financial Analyst – Capital Planning

Financial Analyst – Asset Management

Civil Engineering Technician

Recreations Operations Manage

Policy

To guide the Township, the following policy statements have been developed:

1. The Township has implemented an organization-wide asset management program through all departments. The program will continue to promote lifecycle and risk management of all municipal infrastructure assets, with the goal of achieving the lowest total cost of ownership while meeting desired levels of service. In addition to existing assets, the Township will consider and plan for new acquisitions as well.
2. The Township will implement continuous improvement protocols and adopt best practices regarding asset management planning, including:
   1. Complete and maintain an accurate asset database
   2. Condition Assessment Protocols
   3. Risk and Criticality Models
   4. Lifecycle Management
   5. Financial Strategy Development
   6. Level of Service Framework
3. The Township will develop and maintain an asset inventory of all municipal infrastructure assets which includes unique ID, description, location information, value {both historical and replacement), performance characteristics and/or condition, estimated remaining life and estimated repair, rehabilitation, or replacement date; and estimated cost repair, rehabilitation, or replacement costs.
4. The Township will develop an asset management plan (AMP) that incorporates all infrastructure categories and municipal infrastructure assets that meet the capitalization threshold outlined in the organization’s Tangible Capital Asset Policy (Appendix A). The AMP will be updated at least every five years in accordance with 0. Reg. 588/17 requirements, to promote, document and communicate continuous improvement of the asset management program.
5. The Township will integrate asset management plans and practices with its long-term financial planning and budgeting strategies. This includes the development of financial plans that determine the level of funding required to achieve short-term operating and maintenance needs, in addition to long-term funding needs to replace and/or renew municipal infrastructure assets based on full lifecycle costing.
6. The Township will explore innovative funding and service delivery opportunities, including but not limited to grant programs, public-private partnerships (P3), alternative financing and procurement (AFP) approaches, and shared provision of services, as appropriate.
7. The Township will develop meaningful performance metrics and reporting tools to transparently communicate and display the current state of asset management practice to Council and the community.
8. The Township will consider the risks and vulnerabilities of municipal infrastructure assets to climate change and the actions that may be required including, but not limited to, anticipated costs that could arise from these impacts, adaptation opportunities, mitigation approaches, disaster planning and contingency funding. Impacts may include matters relating to operations, levels of service and lifecycle management.
9. The Township will align all asset management planning with the Province of Ontario’s land-use planning framework, including any relevant policy statements issued under section 3(1) of the Planning Act; shall conform with the provincial plans that are in effect on that date; and shall be consistent with all municipal official plans.
10. The Township will coordinate planning for interrelated municipal infrastructure assets with separate ownership structures by pursuing collaborative opportunities with neighboring municipalities and jointly-owned municipal bodies wherever viable and beneficial.
11. The Township will develop processes and provide opportunities for municipal residents and other interested parties to offer input into asset management planning wherever and whenever possible.

Procedure

AM Practices will remain aligned with the Township’s Strategic Objectives and priorities:

Financial Planning

Financial planning shall incorporate AM data into the Long-Term Financial Plan, the capital and Operating budgets.

Community Engagement- Public Survey

Upon renewal of the AM plan, public engagement by the form of a survey on the Township’s level of service will be executed.

Climate Change

Anticipate and identify opportunities and strategies to mitigate climate change risks and effects and consider the impacts of climate change on service levels.

Legislative Review

The AM Policy and AM plan shall be reviewed every 5 years or as required by current legislation.

Legislative Reporting

An annual progress report must be provided to council on or before July 1 of each year, addressing the progress of the implementation of its Asset Management Plan and any protocols to achieve compliance provincial legislation and regulation timelines.

Appendix 1

Russell Township Strategic Asset Management Policy-Tangible Capital Assets Policy

As per the Tangible Capital Assets Policy, the Town has established asset categories and capitalization thresholds in accordance with Public Sector Accounting Board reporting guidelines. This includes single asset capitalization thresholds for the following assets:

The thresholds have been set at levels that will likely capture all material tangible capital assets. Should individual assets that are immaterial when accounted for individually, but when pooled with similar assets have a material value, asset pools will be created. The threshold for asset pools will be set at a level equal to their asset categories.

Appendix 2- Township of Russell- Routine Conditions Assessment Timelines

Read a first, second and third time and finally passed this 9^th day of December 2024.

Signed by: Mike Tarnowski, Mayor

Signed by: Joanne Camire Laflamme, Clerk