DEBBIE COMIS, CHIEF ADMINISTRATIVE OFFICER VAUGHN FIGUEIRA, DIRECTOR OF ENGINEERING ASSET MANAGEMENT STRATEGY DEVELOPMENT
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1 June 1, 2016 AGPmA OPEf\! COUNCIL JUN DATE REPORT TO: FROM: SUBJECT: PURPOSE: DEBBIE COMIS, CHIEF ADMINISTRATIVE OFFICER VAUGHN FIGUEIRA, DIRECTOR OF ENGINEERING ASSET MANAGEMENT STRATEGY DEVELOPMENT Obtjn Council Authoriztion for Stff to Re-tsk Asset Mngement Softwre Acqu;s;tion Fund;ng Towrd Hiring Consultnt to Produce An Asset Mngement Strtegy nd Crete DRAFT Asset Mngement Policy. EXECUTIVE SUMMARY: The City Asset Mngement Committee ws recently initited consisting of stff members from Engineering, Finnce, Opertions, Administrtion nd the Fire Deprtment to fcilitte the doption nd continued support for City of Prksville Asset Mngement Strtegy. At the inugurl meeting, the Committee reviewed the current sttus of Prksville's sset mngement efforts (to dte) nd remining funding lredy identified in the budget for sset mngement. It ws confirmed tht continued efforts to formlize sset mngement re recommended to better mnge City ssets, meet senior government expecttions nd remin eligible for future grnts. Further, this committee determined tht in order to progress towrd formlizing sset mngement, the current money budgeted towrd the purchse of softwre should be re-tsked to crete n sset mngement strtegy for the City of Prksville. The sset mngement requirements of ll deprtments must be observed, documented, understood nd prioritized prior to the purchse of ny softwre. The strtegy must ddress the need to blnce growing expecttions of senior governments with the prcticl needs of stff. Also, the Committee determined tht the City should hve n Asset Mngement Pol icy. RECOMMENDATION: 1. THAT the report from the Director of Engineering dted June 1, 2016, entitled "Asset Mngement Strtegy Development" be received. 2. THAT stff be uthorized to re-tsk up to $144, (currently vilble in the budget for sset mngement softwre) towrds the development of n Asset Mngement Strtegy. 3. THAT stff be uthorized to crete DRAFT Asset Mngement Policy for Council considertion.
2 Report to Council ASSET MANAGEMENT STRATEGY DEVELOPMENT Pge 2 of 6 BACKGROUND: News of ging ssets, growing demnds for service nd the chnging environment hve become consistent points of discussion in governmentl ffirs. In 2012, the inugurl Cndin Infrstructure Report Crd (CIRC) ws relesed. This report ws the first objective ssessment of our country's municiplly owned wter, wstewter, storm wter nd rod infrstructure. It lso exmined the stte of infrstructure sset mngement cross Cnd. The CIRC ttrcted much needed ttention to the deteriorting stte of Cnd's core public infrstructure. While the condition rtings grnered much of the ttention reinforcing the need for sustined funding efforts, wht is less prominent but eqully importnt is the need for development of the stte of sset mngement in Cndin municiplities. The relese of this report prompted Senior Governments to chllenge Cndin municiplities to tke steps beyond the Public Sector Accounting Bord (PSAB). Ltely, this prompting hs tken the form of incorporting grnt evlution criteri fvoring communities tht hve formlized their corporte sset mngement beyond PSAB. This is reflected in the New Building Cnd Fund - Smll Communities Fund Progrm guide s follows:... "Project pplictions will be evluted bsed on how well the project meets the federl nd provincil progrm objectives of economic growth; clener environment; nd, stronger communities. In ddition, projects will be ssessed bsed on funding history, regionl distribution, community size, nd the degree to which they meet the following: o represents good vlue for money; o enhnces nd protects public helth; o enhnces nd protects environmentl helth; o supports sustinbiuty principles; o consistent with integrted long-term plnning nd mngement; o utilizes best technologies nd prctices; o demonstrtes efficient use of resources; o uses new nd innovtive pproches; o supports sustinble long-term economic growth; o is situted within, nd dvnces, the sponsoring locl government's development nd finncil plns; o exhibits long-term sustinbility, including opertionl vibility, sset mngement (mintennce), nd environmentl sensitivity; o contributes to environmentl, economic, community nd innovtion objectives; o requires the federl nd provincil governments' finncil support to enble the proposed project to be implemented, its scope enhnced (increse in size - expressed in the form of percentge) or its timing ccelerted (by number of yers); o the best vilble economiclly fesible technology, if pplicble.
3 Report to Council ASSET MANAGEMENT STRATEGY DEVELOPMENT Pge 3 of 6 The ssessment of proposls is criteri-bsed process for evluting proposls submitted by pplicnts for funding. The ssessment determines the merits of the proposl nd informs the decision for recommending proposls to the pproprite decision-mking bodies nd prties. Below re few exmples of fctors tht impct the ssessment of your proposl nd will be considered in determining if it is eligible for funding. How your project responds to n identified Infrstructure need within the community? How relistic re the objectives nd re the expected results chievble? Will the ctivities identified be completed within your proposed timefrme? How does your proposed project fit with locl, regionl nd ntionl priorities? How you, s the pplicnt hve the cpcity to see the project through from beginning to end? How do you pln to mitigte the risks ssocited with your project? How relistic is the budget nd brekdown of costs? How will you mnge the sset over its life cycle? Do you hve operting funds...?" Federl grnt progrms re generlly dministered by the Province. The Province normlly hndles the ppliction nd wrd processes. The Gs Tx Agreement (GTA) is prime exmple of this rrngement. The signtories to this Agreement re the Federl Government of Cnd, the BC Provincil Government nd the Union of BC Municiplities (UBCM). The British Columbi Provincil Government will control the evlution nd ppliction process for this progrm. It is reveling to red wht the current UBCM nd Ministry officils re sying bout the emphsis they will be plcing on sset mngement for the Gs Tx grnt progrm s follows: UBCM Expecttions "In My 2014, Cnd, BC nd UBCM signed the renewed Gs Tx Agreement for 10-yr term," reports Glen Brown, Generl Mnger - UBCM Victori Opertions. "The Agreement identifies tht locl governments will be required to meet sset mngement commitments, s estblished by the Prtnership Committee (the committee tht oversees the strtegic implementtion of the greement)." "These sset mngement commitments re ligned with the newly developed Asset Mngement for Sustinble Service Delivery: A BC Frmework; nd support locl governments moving towrds service, sset nd finncil sustinbility. The BC Frmework identifies nturl services nd the use of nturl resources - nd how they re prt of I integrted into the overll services provided t locl government level." "For locl governments looking for strtegic direction nd/or guidnce with sset mngement, nd meeting their GTA sset mngement commitment, the BC Frmework becomes the principl resource. The focus is on desired outcomes - such s Wtershed Helth Gol - rther thn prescribing specific methodologies," emphsizes Glen Brown.
4 Report to Council ASSET MANAGEMENT STRATEGY DEVELOPMENT Pge 4 of 6 The UBCM hs lso stted in their website tht, "... Under the GTA, ll locl governments re required to dvnce sset mngement ctivities. The GTA provides flexibhity for individul locl governments to identify how they will dvnce sset mngement ctivities, bsed on community needs, cpcity nd resources. Penlties will not be encountered providing locl governments meet the terms nd conditions set out in the Community Works Fund (CWF) Agreement. If CWF terms nd conditions re not met, the penlty ww result in non-pyment of funding dollrs to the locl government." Provincil Expecttions "A province-wide, mde in BC, sset mngement strtegy tht goes beyond the requirements of the Gs Tx Asset Mngement Frmework, is beneficil for ll locl governments, s well s other orgniztions. The BC Frmework relesed in December 2014 provides high level overview of wht is needed to develop, implement nd mintin strong sset mngement prctices for locl governments," concludes Um Edwrds, Executive Director (Infrstructure nd Finnce, Locl Government Division) Ministry of Community, Sport nd Culturl Development." Resources There is recognition tht not ll municiplities re equipped to undertke sset mngement efforts on their own. The 2012 Cndin Infrstructure Report Crd (CIRC), milestone document identifying the current understnding of the stte of Municipl infrstructure in Cnd, lso stted: "... when ssessing the stte of municipl infrstructure mngement, the report crd finds tht mny municiplities lck the internl cpcity to ssess the stte of their infrstructure ccurtely on their own. This is not to sy tht the municipl sector Lcks the wherewithl to undertke rigorous internl reviews of their ssets; rther, tht finite finncil resources, stff nd time preclude much more thorough, rel-time evlution of the stte nd performnce of their physicl infrstructure." OPTIONS:... from Cndin Infrstructure Report Crd - Asset Mngement Primer. 1. Authorize Stff to re-tsk up to $144, (currently vilble in the budget for sset mngement softwre) to Asset Mngement Strtegy development. Additionlly, uthorize Stff to crete drft sset mngement policy for Council considertion. 2. Provide Stff with other direction.
5 Report to Council ASSET MANAGEMENT STRATEGY DEVELOPMENT Pge 5 of 6 ANALYSIS: The BC Frmework is gme-chnger becuse it is strtegiclly ligned with sset mngement requirements under senior government funding progrms, in prticulr the Gs Tx Progrm. It is cler tht for BC Municiplities, the Province nd UBCM re indicting municiplities should be formlizing their sset mngement prctices using the newly developed Asset Mngement for Sustinble Service Delivery: A BC Frmework (ttched). Senior governments hve linked the eligibility of future grnts to the formliztion of sset mngement. If the City wishes to be considered for future grnt opportunities, we must tke ction to formlize our sset mngement processes. It is lso cler tht the City does not hve the resources to dedicte the required time nd effort tht is going to be needed to: Crete Prksville's Asset Mngement Strtegy. Investigte the mrket to determine pproprite sset mngement softwre/systems tht we cn employ. Oversee the deployment of pproprite sset mngement softwre/systems. Trin stff to use the sset mngement softwre/systems. FINANCIAL: The funding currently vilble for the purchse of sset mngement softwre is expected to be more thn enough to engge consultnt to crete n Asset Mngement Strtegy nd complete DRAFT Asset Mngement Policy document for Council's considertion. Only those funds required will be used. Any remining funds will be left in the budget for the purchse of sset mngement softwre. STRATEGIC PLAN IMPLICATIONS: Mintin or Enhnce Qulity of Life - Ensuring tht our infrstructure is dequte nd mintined supports economic opportunities, protects public property nd our environment nd (therefore) the well-being of the public. Renewl nd Mintennce of Infrstructure - Formlized sset mngement will enble the City to relize full vlue from our ssets, minimize mintennce costs nd dvnce our sset replcement nd expnsion objectives by ensuring we remin eligible for grnt opportunities. Mintin or Enhnce Levels of Service - Formlized sset mngement is required to mintin n dequte level of service s defined in the City's Stndrds nd Specifictions nd ensure tht this level of service is mintined in the foreseeble future. Environmentlly Sustinble - Formlized sset mngement promotes sustinbility nd environmentl objectives identified in the recently dopted Officil Community Pln.
6 Report to Council ASSET MANAGEMENT STRATEGY DEVELOPMENT Pge 6 of 6 Mintin or Reduce Actul Property Tx Burden - Formlized Asset Mngement will enble the City to mintin n dequte level of service while minimizing future property tx increses by ensuring tht the City relizes full vlue from our ssets nd remining eligible for grnts. REFERENCES: Asset Mngement Committee Meeting Minutes dted Februry 4, Asset Mngement for Sustinble Service Delivery: A BC Frmework Respectfully submitted, VAUGHN FIGUEIRA, P. Director of Engineering FINANCE DEPARTMENT COMMENTS: ~v LUCKY BUTTERWORTH Director of Finnce CHIEF ADMINISTRATIVE OFFICER COMMENTS: Debbie Comis hief Administrtive Officer VF/dd P:\USERS\1 Eng ft Ops Record Mgmt\GENERAL OPERATIONS FILES\ Records Mgmt Asset Mgmt\2016\Asset Mngement Council Report.docx
7 Asset Mngement Committee Meeting Minutes of Meeting Held on Thursdy, Februry 4, 2016 t 2:30 pm in the Engineering Meeting Room. In Attendnce: Vughn Figueir, Fred Pkkl, Rndy Hll, Lucky Butterworth, Pm Lovegrove, John Diggins, Aron Dwson, Rndll Lewis, Mrc Norris Absent: Keev Kehler Chir: Vughn Figueir Recording Secretry: Denne Dielemn Rules of Enggement: );> Strt meetings on time. );> Sty on topic. );> No ide is bd ide. );> Be respectful. );> Encourge prticiption. );> Strt with joke. Mndte: To fcilitte the doption of nd continued support of n Asset Mngement Strtegy for the City of Prksville. Discussion: Mrc Norris: Vughn Figueir: Fred Pkkl: Rndy Hll Pmel Lovegrove: Vughn Figueir: Fred Pkkl: We need to define prmeters. Exctly wht is sset mngement informtion? The Fire Deprtment is lredy using six or seven systems. Could it be extrcted from wht we lredy hve? It gets difficult for stff to lern how to operte ech system. Do we need to hve someone come in nd do 'snpshot of where we currently re? Asset mngement is not n inventory system. It's importnt to sk the question, "Wht bck end functionlity do we need? There is $144,000 vilble for sset mngement softwre. There ws some money set side for pvement mngement softwre, but it ws trnsferred to ccumulted surplus. Would like to see document tht sets out bsic pln. AMBC doesn't go into wht exctly hs to be in n sset mngement pln. It's just generl outline. Pmel Lovegrove: Rndll Lewis: We lredy hve lot of informtion. We just need to pull it together. Keeping records is lrge component of bringing it ll together.
8 Asset Mngement Committee Februry 4, 2016 Discussion: cont'd Fred Pkkl: Vughn Figueir: Mrc Norris: John Diggins: Vughn Figueir: Mrc Norris: Fred Pkkl: Vughn Figueir: Mrc Norris: Vughn Figueir: Softwre tht is integrted together. I will put something together nd send it round to the Committee for comment. Need to formlize with policy, determine the vlue of the ssets, so we cn get grnt money. We need to get cler ide of wht we wnt the consultnt to do. I cn hve look t the relevnt Sttement of Qulifictions (SOQ's) we hve nd then mybe hve the consultnt come in to do presenttion. Mybe we could scn the informtion s. pdf nd link it to somewhere (like we do in Prospero). Look t wht we currently hve to see how we cn 'cpture' wht we do now. Decide wht we need. Simple is best. We only need to hve centrl plce to go where ll the informtion is stored. I need to know wht ssets the Fire Deprtment should focus on. A report to Council needs to be done. High level sset mngement policy, then hire consultnt. Action Items: Vughn Figueir To prepre drft Report to Council requesting pprovl to re-tsk funds (currently identified in the pproved budget to purchse Asset Mngement Softwre) to hiring Consultnt to produce report identifying n Asset Mngement Strtegy for Prksville. Also, the report will seek direction from Council to develop high level Asset Mngement Policy. The 'drft' will be circulted to Committee members for comment. P:\USERS\1 Eng & Ops Record Mgmt\GENERAL OPERATIONS FILES\ Records Mgmt Asset Mgmt\2016\Asset_Mgmt_Committee_Mtg_Feb_ 4_2016.docx
9 Asset Mngement for Sustinble Service Delivery A BC Frmework Sustinble Service Delivery Sustinble Service Delivery ensures tht current community service needs, nd how those services re delivered (in socilly, economiclly nd environmentlly responsible mnner), do not compromise the bility of future genertions to meet their own needs. Communities build nd mintin infrstructure to provide services. These services support our qulity of life, protect our helth nd sfety, nd promote socil, economic nd environmentl well-being. Filure to cre for our infrstructure, mnge our nturl resources nd protect the benefits provided by nture risks degrding, or even losing, the services communities enjoy, nd tht future genertions my rely on. Sound sset mngement prctices support Sustinble Service Delivery by considering community priorities, informed by n understnding of the trde-offs between the vilble resources nd the desired services.
10 Asset Mngement Asset Mngement is n integrted process, bringing together skills, expertise, nd ctivities of People; with Informtion bout community's physicl Assets; nd Finnces; so tht informed decisions cn be mde, supporting Sustinble Service Delivery. SU STAI NAB LE SERVICE DELIVERY
11 The Core Elements People, Informtion, Assets, nd Finnces re considered the core elements of sset mngement. Ech of these elements is necessry for sustinble service delivery. Success requires the integrtion of these four elements throughout the Process of sset mngement. 0 ~t ~=t 0!!!ement is corporte function. Locl governments tht successfully implement sset mngement hve stff nd elected officils who; understnd the need for sset mngement nd support its implementtion, re effective leders, hve culture of inter-disciplinry temwork, vlue informed decision mking, nd continuously develop their skills, experience nd cpcity. Cil Informtion ~ Informtion is needed to support decisions tht re cost effective, mnge risks, nd support long-term service delivery. The qulity of informtion, informtion collection nd dissemintion cn evolve over time to support informed decision-mking. ~!S!~i!!1 infrstructure owned by locl governments to enble service delivery including, but not limited to; wter nd wstewter systems, dringe nd flood protection systems, trnsporttion systems, civic fcilities, prks nd fleet. It my lso include nturl resources nd the essentil ecologicl functions nture provides. 00 Finnces ~ A holistic understnding of the long-term costs of providing services nd the infrstructure required is criticl element of sset mngement. Proctive sset mngement will yield fewer service disruptions, more predictble results nd lower totl lifecycle costs thn rective pproch to repir nd replcement.
12 Asset Mngement: The Process Asset mngement is continuous qulity improvement process. This ongoing Process is incrementl nd sclble, involving; Assessing cpcity, demnd nd results, Plnning wht needs to be done, nd Implementing the plns. This continully informs how to enhnce nd expnd the Process. Review, Communicte nd Engge Integrl to, nd throughout the sset mngement Process, it is importnt to include regulr reviews nd provide effective communiction internlly nd externlly with ll ffected stkeholders. Internlly, it is criticl to develop orgniztionl lignment nd build knowledge/understnding prior to externl communiction nd enggement. Educting nd building wreness will improve the bility to implement sset mngement. ASSESS Assess Asset Mngement Prctices Determine orgniztionl cpcity to undertke sset mngement s n ongoing corporte function. This includes high level ssessment of ll the core elements: people, informtion, ssets, nd finnces. The ssessment results serve s foundtion for developing nd implementing the Process. Assess the Current Stte of Assets Assessing the current stte of ssets includes; knowing the inventory, sset conditions, both defined customer nd technicl levels of service nd risks within ech sset group. This ssessment is the foundtion for the development of Asset Mngement Plns.
13 PLAN Asset Mngement Policy A document tht brodly outlines the principles nd mndted requirements for undertking sset mngement cross the orgniztion in systemtic nd coordinted wy, consistent with the orgniztion's plns. Asset Mngement Pln Long-term plns tht outline the ssets, sset conditions, levels of service, sset nd service risks, ctivities nd progrms for ech service re nd resources required to provide defined level of service in the most cost effective wy. Ech Asset Mngement Pln is redble nd user-friendly living document tht is continuously improved to incorporte new informtion or chnging requirements. PLAN Asset Mngement Strtegy The high-level, long-term pproch to sset mngement, including Asset Mngement Plns nd objectives for mnging ssets. Integrte to Long-term Finncil Pln Asset Mngement Plns re integrl to robust Long-Term Finncil Pln nd support Sustinble Service Delivery. This integrtion identifies gps between long-term costs nd vilble funding. The finncil plnning process identifies opportunities to close the gp through djusting service levels (reducing costs) nd/or incresing funding (rising revenue). IMPLEMENT Implement Asset Mngement Prctices Asset mngement prctices estblish nd implement wys tht integrte people, orgniztionl culture nd cpcity. The implementtion of these prctices is guided by n Asset Mngement Strtegy nd the ctions in Asset Mngement Plns. Mesure nd Report Annul nd finncil reports include sset mngement objectives nd outcomes identified in n Asset Mngement Strtegy nd Asset Mngement Plns. Reporting demonstrtes mesurble progress in implementing the Process nd chieving outcomes tht contribute to Sustinble Service Delivery.
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