ADMINISTRATIVE STANDARD FM-004 ASSET MANAGEMENT

Transcription

1 ADMINISTRATIVE STANDARD FM-004 ASSET MANAGEMENT AUTHORITY FOR STANDARD: Chief Administrative Officer LAST UPDATED: March 31, 2015 NOTE: The Asset Management Administrative Standard FM-004 supersedes the previus FM-004 Capital Prject Administratin as f March 31, STANDARD ALL DEPARTMENTS WILL ADOPT A COMPREHENSIVE APPROACH TO MANAGING THE CITY S ASSETS TO MEET ESTABLISHED LEVELS OF SERVICE AT THE LOWEST OVERALL COST OF OWNERSHIP AT AN ACCEPTABLE LEVEL OF RISK. Asset Management Administrative Standard Page N 1 f 49

2 Table f Cntents Purpse f Standard 4 Rles and Respnsibilities 4 A.1 Strategy 4 A.1.1 Manager f City Asset Management Prgram 4 A.1.2 Department 5 A.2 Business Prcess 5 A.2.1 Business Prcess Owners 5 A.2.2 Asset Management - Management System (AMMS) 7 A.2.3 Investment Planning (IP) 9 A.2.4 Prject Management (PM) 10 A.2.5 Cntract Administratin (CA) 11 A.2.6 Operatins & Maintenance 11 A.2.7 Decmmissining and Dispsal 11 A.3 Physical Assets 12 A.3.1 Physical Asset Gvernance mdel 12 A.4 Peple 14 A.4.1 Asset Managment Gvernance 14 A.4.2 Crprate Prject Management Office 14 A.4.3 Departmental Prject Management Office 14 A.4.4 Asset Management Prgram Organizatin Delivery Structure 14 A.4.5 Rles and Respnsibilities 14 A.4.6 RACI Matrix 20 A.4.7 Cmmittee Cmpsitin & Respnsibility 20 A.4.8 Cmpetency Develpment 23 References and Links t Related Dcuments 24 Amendments.. 24 Review Prcess 24 Key Cntacts.. 24 Definitins Figures Figure 1: Gvernance dcument hierarchy 8 Asset Management Administrative Standard Page N 2 f 49

3 Appendices Appendix A... Asset Management Management System 27 Appendix B... Asset Management Gvernance Structure 28 Appendix C... Prject Management Office Gvernance - Departmental cverage 29 Appendix D... Asset Management Prgram Organizatin Delivery Structure 30 Appendix E... Level f Service Mdel 31 Appendix F... RACI Matrix 32 Appendix G... Majr Capital Prject Directives 35 Appendix H... Land Acquisitins and Exprpriatins 40 Appendix I... Annual Capital Review, Prject Clsing & Supplemental Brrwing Authrity 43 Appendix J... Interest and Administrative Overhead Charges 46 Asset Management Administrative Standard Page N 3 f 49

4 Purpse f Standard The purpse f this Standard is t ensure that all City Departments (Nte: Departments include Special Operating Agencies (SOA)) fllw the same apprach t achieve the City s Asset Management Plicy bjectives by integrating the fur asset management rganizatinal cmpnents: Strategy Sets the visin, missin, framewrk and radmap. Business Prcess Design and implement streamlined and effective prcesses and prcedures. Physical Assets Minimize ttal cst f wnership, maximize reliability and meet perfrmance standards. Peple Make the right chices in rganizatin design and peple resurces. These cmpnents, supprted by apprpriate technlgies, prvide a rbust fundatin fr efficient service delivery. Nte: As SOA s prepare business plans vs. submit an investment plan int the budget prcess, SOA s need t embed the principles and prcesses int their business prcesses. Rles and Respnsibilities The fllwing sectins detail each cmpnent and nte the specific requirement that needs t be fulfilled by the Crprate Asset Management Prgram (AMP) and the Departments. A.1 STRATEGY A.1.1 Manager f City Asset Management Prgram Develp and manage the AM Management System (AMMS) as identified in sectin A.2.2, and as detailed in Appendix A. Develp and manage the AMMS gvernance dcuments. The key dcuments being the AM Plicy and Administrative Standard. Develp a Crprate AM Plan; the plan will be reviewed and updated n a 3-5 year basis. The plans will be develped per the latest versin f the AMP Guideline and identify the fllwing key elements: Develp in cnsultatin with Departments Level f Service targets that are detailed in Departments AM Plans. Develp a State f the Infrastructure Reprt. The reprt will be a summary f data prduced and measures tracked in the Department s AM Plans. Develp funding strategies in cnsultatin with Departments and ther stakehlders. Develp and manage a business prcess master plan that identifies key Crprate and Departmental business prcesses. Develp an AM Cmpetency Plan. Plan fr each area f the AMMS. The plan will define the necessary skills and cmpetencies needed t effectively manage the asset base t meet Level f Service. Develp an AMMS Technlgy Master Plan in cnsultatin with the Departments and Crprate Supprt Services. Asset Management Administrative Standard Page N 4 f 49

5 A.1.2 Department Adhere t the AMMS gvernance dcuments. Develp a Departmental Service Delivery Plan that will clearly identify business drivers (such as grwth) and define strategies and tactics necessary t effectively maintain r enhance level f service. Develp an AM Plan. The plans will be: Develped per the latest versin f the AM Plan Guideline Asset Management Plan Guideline Reviewed and updated n a 3-5 year basis. Develp an AM Strategy fr majr physical asset classes as defined in the AM Plan Guideline. Each AM Strategy will cnsider bth existing and new infrastructure needs t meet current and future levels f service. The AM Strategy will link t: OurWinnipeg, Funding strategies, Service delivery plans, and 4-10 year investment plans. Develp a State f the Infrastructure Reprt as defined in the AM Plan Guideline. Develp and manage prcedures and assign accuntabilities fr the identificatin f current and future legal, regulatry and statutry requirements. Asset upgrades take int accunt future/ptential legislatin where apprpriate. Develp Business Cntinuity Plans that ensure essential business functins cntinue t perate during and after a disaster. Develp a business prcess master plan that integrates with the AMMS. Align Infrmatin Technlgy slutins t the AMMS Technlgy Master Plan: As part f the AMMS Technlgy Master Plan cntinually wrk t autmate the prcesses with the AMMS t achieve efficiencies and effectiveness f service delivery t the custmer. Wrk within the technlgy master plan and Crprate Supprt Services strategy t help ratinalize the number f IT slutins in use t supprt AM practices. A.2 BUSINESS PROCESS A.2.1 Business Prcess Owners A business prcess wner has the respnsibility and authrity t design and manage the prcess t ensure it integrates with the Asset Management Management System (AMMS) and ther City prcesses. Table 1 identifies the key prcesses within the AMMS. Each prcess is linked t a prcess wner and gvernance dcument. Nte: the AM Plicy, Strategic AM Plan and Quality Management Plan are applicable gvernance dcuments t all the prcesses belw except where nted therwise. Asset Management Administrative Standard Page N 5 f 49

6 Table 1 Key AM prcesses and wners Prcess Prcess Owner Prcess Gvernance Asset Management Management System (AMMS) Investment Planning (IP) Investment apprval between Budget Cycles Prject Management (PM) Cntract Administratin (CA) Operatins & Maintenance Decmmissining and Dispsal Manager f City Asset Management Prgram Manager f City Asset Management Prgram Manager f City Asset Management Prgram Manager f Capital Prjects Manager f Capital Prjects Department Heads Manager f City Asset Management Prgram AM Administrative Standard Investment Planning Manual Prject Management Manual Investment Planning Manual Investment Planning Manual Prject Management Manual Prject Management Manual Departmental Operating Manuals Defined Maintenance Practices Operatin and Maintenance Guideline (Future) Asset Dispsal Guidelines (Future) FM-002 Asset Management Administrative Standard Page N 6 f 49

7 Other related prcesses The abve Prcess Owners need t ensure that their prcesses integrate with the fllwing assciated prcesses. Table 2 - Other related Prcesses and Owners Prcess Prcess Owners Prcess Gvernance Debt Financing Manager f Financial Services Investment Plicy Debt Management Plicy Lan Guarantees Budget Submissin Prcurement - Slicitatin Tangible Capital Asset Reprting Land Acquisitins and Exprpriatins Annual Capital Review, Prject Clsing and Supplemental Brrwing Authrity Interest and Administrative Overhead Charges Manager f Financial Services Manager f Financial Planning & Review Materials Management Crprate Cntrller Crprate Cntrller Crprate Cntrller Crprate Cntrller Investment Plicy Debt Management Plicy Call Letter Materials Management Plicy FM-002 Financial Statement Plicies Financial Administratin Manual Generally Accepted Accunting Principles fr Tangible Capital Assets and Leases Appendix H Appendix I Appendix J Prcess Cntrl The fllwing are the key prcess cntrls within each prcess gverned by the AM Plicy and Administrative Standard. A.2.2 Asset Management - Management System (AMMS) Manager f City Asset Management Prgram (Prcess Owner) Develp and manage the Quality Management Plan fr the AMMS Asset Management Administrative Standard Page N 7 f 49

8 The Quality Management Plan defines hw quality will be embedded in the system. Perfrmance Evaluatin & Imprvement - Measures will be defined t gauge effectiveness and efficiency f the prcesses within the AMMS. Dcument Management System develp a system t manage dcuments prduced within the AMMS. This includes rles, respnsibility and authrity during a recrd s/dcument s lifecycle. The dcument hierarchy that frms the fundatin f the AMMS is nted in Figure 1 and a crrespnding descriptin f these dcuments is nted belw: Figure 1: Gvernance dcument hierarchy Plicy Administrative Standards Manuals Prcedures Templates AM Plicy Defines the gals and bjectives f Cuncil. AM Administrative Standard Defines the rles, respnsibilities and authrity t achieve the bjectives f the Plicy. The Administrative Standard directs the Public Service t a specific prcess area fr mre detailed directin. The fllwing are the key dcuments that supprt the Administrative Standard: Strategic AM Plan Defines Senir Management s cmmitment and apprach t achieving Cuncil s apprved plicy and the Administrative Standard. Prvides the high level radmap fr hw the AM Plan will be implemented and transitin int sustainment. Quality Management Plan Defines hw quality is integrated int the AMMS Asset Management Administrative Standard Page N 8 f 49

9 Manuals Define Hw-t instructins fr specific business prcesses. The fllwing are the manuals that have been develped. Other manuals may be develped as the AMMS is fully develped: Investment Planning Manual Defines the Investment Planning prcess in detail including prcess charts with rle level respnsibilities and the hand-ff between individuals. Prject Management Manual Details hw t manage a prject, which includes develpment f a charter, plan, prject rganizatinal structure, change cntrls and cst cntrls etc. Cntract administratin is part f the manual. Business Unit Asset Management Plan Framewrk & Guidelines Defines the elements that need t be captured in bth the Crprate and Departmental AM plans. Prcedures - Step by step instructins that supprt bth the prcesses and the templates. These are either embedded r referenced in the manuals. Templates Ensure cnsistency in dcument layut and reprting f infrmatin. They will include instructins within each template n hw t cmplete the template. In case f disagreement between any f these dcuments, dcument rder f precedence shall be in rder, Cuncil Plicy, Administrative Standard fllwed by the Manuals. Any disagreements between these dcuments shuld be brught t the attentin f the Manager f the City Asset Management Prgram. Department Adpt and integrate the AMMS int the Department s business prcesses. A.2.3 Investment Planning (IP) Prcess Owner Develp and manage the Investment Planning prcess. Develp key Crprate Level f Service indicatrs in cnsultatin with the Departments respnsible fr the service. Assess the Multi-Criteria Priritizatin (MCP) mdel n a yearly basis t ensure it reflects the values f the Custmers. Department Develp Level f Service mdels fr each defined service area. Develp Business Cases t evaluate capital investment prjects submitted fr inclusin in the capital budget. Utilize the MCP mdel t priritize capital investments submitted fr inclusin in the capital budget. Develp 4-10 year investment plans based n investment needs and nt funding limitatins fr majr asset grups. Investments identified between budget cycles need t be apprved as utlined in the Investment Planning Manual. Prduce 1-3 year investment plans and integrate int the capital and perating budget prcess as utlined in the Investment Planning Manual. Asset Management Administrative Standard Page N 9 f 49

10 Discuss financing pprtunities with the Manager f Financial Services when cnsidering advancing majr capital investments. Ensure that investments are crdinated with the City s Debt Strategy prir t submissin int the budgeting prcess. Ensure the CFO is in cncurrence with the inclusin f any future Lan Guarantees in the Department s investment plan prir t submissin int the annual capital budget prcess. During the develpment f the Business Case, cnsider alternative prject delivery methds such as Design-Build, Cnstructin Manager r P3 (Private Public Partnership) fr large value majr capital prjects. The Department respnsible fr making the investment decisin submits the capital budget detail sheet which is listed under their department name in the capital budget bk. The department accuntable t Cuncil fr delivering the capital prject is identified by the prject identificatin number n the capital budget detail sheet. A.2.4 Prject Management (PM) Prcess Owner Develp and manage the prject delivery prcess as defined in the Prject Management Manual (PMM). Develp and manage the prject delivery prcesses fr Majr Capital prjects per the PMM and the supplementary directives in Appendix G - Majr Capital Prjects Directives. Department Accuntable t Cuncil fr capital prject delivery. Fr greater certainty, the Department accuntable fr the prject is identified by the prject identificatin number assigned t the prject in either the annual Capital Budget r Administrative Reprt t Cuncil (fr in-year authrizatins). Manage capital prjects in accrdance with all Cuncil Plicies, Administrative Standards and the PMM. Appendix G f this Standard prvides directives fr majr capital prjects. Develp prject plans t the level f detail required based n the prject s cmplexity, risk prfile and hw rutine the deliverables are. The Department s Directr shall be respnsible t determine the level f prject plan detail that is required. All prjects will fllw the risk management prcess identified in the PMM thrughut the prject lifecycle. All prjects will fllw the key prcesses identified in the PMM, specifically; Organizatinal Change Management, Public Engagement and Change Cntrl. Capital Prject reprting t Cuncil must be pen, transparent and fully disclse all material facts s as elected fficials can make infrmed decisins with respect t capital prject apprvals. Respnsible fr adequately resurcing capital prjects. In instances where capital prjects are unable t be adequately resurced, the CAO shuld be advised immediately. Capital prjects greater than $10 millin are cnsidered Majr Capital prjects and have additinal requirements prescribed in this Administrative Standard. Prjects shuld have a Class 3 estimate prir t entering the executin phase f the prject r prir t develpment f detailed design and cnstructin. The intent is t cmplete planning/preliminary wrks t refine the scpe t a class 3 estimate prir t submissin int the budgeting prcess. Majr Capital Prjects nt meeting this standard have additinal requirements prescribed elsewhere in this standard. Asset Management Administrative Standard Page N 10 f 49

11 Fr all tax supprted Buildings prjects, the Prject Manager shall be frm the Planning, Prperty and Develpment Department Municipal Accmmdatins Divisin. Fr clarity, this includes refurbishments f existing buildings as well as new cnstructin. Business wner representatin n prject teams is at the discretin f the prject manager. While business wner representatin may be imprtant t ensure that custmers expectatins are met, the prject team structure shuld be carefully evaluated t ensure that business wners are nt in a psitin t arbitrarily increase prject scpe during the cnstructin phase. Any such scpe increases shuld frm part f a change rder and if additinal budget is required it is the respnsibility f the business wner department t find additinal budget t cver the additinal wrk fllwing city prcedures fr apprval f verexpenditures as described in FM-002. A.2.5 Cntract Administratin (CA) Prcess Owner Develp and manage the prcesses identified in the Prject Management Manual Department Fllw the prcesses identified in the Prject Management Manual. A.2.6 Operatins & Maintenance Prcess Owner Develp and manage the prcesses in the peratins and maintenance stage f an asset s lifecycle t meet the requirements identified in the Physical Asset sectin f this Standard. A.2.7 Decmmissining and Dispsal Prcess Owner Develp and manage the Physical Asset Dispsal guidelines (future). Department Decmmissin and Dispse f Assets t btain the best value based n the asset s cnditin. Fllw the Physical Asset Dispsal guidelines (future) and Materials Management Plicy and Administrative Standard. Asset Management Administrative Standard Page N 11 f 49

12 A.3 PHYSICAL ASSETS A.3.1 Physical Asset Gvernance mdel The City wns all the physical assets but a single Department, r Divisin within a Department, will be designated as the cntrl and use wner f City assets based n the fllwing criteria: There will be a direct link frm the custmer t the service prvided t the service the asset exists t prvide; The Department r Divisin that has direct respnsibility and authrity t the custmer will be defined as the cntrl and use wner respnsible fr the physical asset thrughut its lifecycle; Departments will fcus n the service(s) they prvide t custmers as their cre business and utilize, via Service Level Agreement (SLA), the expertise f ther Departments (internal service delivery Departments) whse cre business is t service assets; Cntrl and use Departments will enter int SLA s with internal service delivery Departments r SOA s t prvide specific services t manage their asset inventry. Fr example, Planning, Prperty and Develpment - Municipal Accmmdatins Divisin have the expertise in facility management which ther Departments need t utilize; The reprting respnsibility t Standing Plicy Cmmittee (SPC) will be determined based n the SPC t which the cntrl and use (Service) Department reprts. That is; Budget prcess; Asset Investments will be identified in the Department s capital budget detail sheet that delivers the service t the custmer. The prject identificatin number, as disclsed n the capital budget detail sheet, will identify the Department accuntable t Cuncil fr prject delivery and that Department will reprt thrugh their relevant standing cmmittee, except fr: Buildings prjects, which will be budgeted based n cntrl and use (Service), but assigned a PP&D prject identificatin number. In these instances, PP&D is accuntable t Cuncil fr prject delivery, but will reprt t Cuncil thrugh the cntrl and use (service) department s relevant SPC. Fr example, where a library building prject wuld be budgeted in Cmmunity Services but assigned a PP&D Prject identificatin number, PP&D will reprt t Cuncil via Cmmunity Services relevant SPC (SPC Prtectin and Cmmunity Services). Manager f City Asset Management Prgram Supprt the Department and, if apprpriate, the specific Divisin t define respnsibility and authrity fr cntrl and use f the City s asset based n the abve criteria and as utlined in the Investment Planning manual. Develp with the Departments a data hierarchy fr all asset grups t supprt the Level f Service mdels as detailed in the Investment Planning manual. Facilitate the develpment f SLA s between Departments. Maintain an inventry f SLA s fr entry by each Department. Asset Management Administrative Standard Page N 12 f 49

13 Departments will: Departments will utilize the services and expertise that currently exist with specific Departments vs. re-creating that expertise in-huse. Enter int frmal SLA s with ther Departments t utilize these services fr each stage in an asset s lifecycle. Develp and maintain asset registers. Supprt the develpment f a data hierarchy fr each asset grup. Prduce Criticality and Risk prfiles fr all majr asset classes per the Investment Planning Manual and the Operatinal & Management guideline (Future). The Criticality and Risk prfiles shuld be reviewed and updated n a 3-5 year basis. Capture all Standard Operating Prcedures, Emergency Standard Operating Prcedures and update (with apprpriate versin cntrl and security) t ensure business cntinuity. Perfrm Risk and Hazard Assessments (Assessment f a Facility, System and Operatin) fr apprpriate asset grups. The assessment is intended t identify and evaluate risks t persnnel, equipment and systems that can prevent efficient peratin. Evaluate lifecycle csts in asset maintenance and replacement investment decisins. Strive tward determinatin f full cst f wnership (cradle t cradle) fr each asset. This shuld include prcurement, maintenance, peratin and dispsal include all labr and material csts. Optimize peratin and maintenance resurces t meet custmer Level Of Service targets. Adpt Strategic Wrk and Maintenance management practices t ensure effective wrk rder backlg management and preventive maintenance ptimizatin. Decmmissin and Dispse f Assets per the Asset Dispsal Management guidelines (future) t btain the best value based n the asset s cnditin. Perfrm Rt Cause Analysis techniques; cnduct n a regular basis t better understand and reduce/eliminate asset failures. Capture and reprt data fr PSAB 3150 cmpliance per the Tangible Capital Asset Reprting Guideline. Define the cntrl and use wner f all assets based n the Physical Asset Gvernance Mdel in Sectin A.3.1 and in the Investment Planning manual. Asset Management Administrative Standard Page N 13 f 49

14 A.4 PEOPLE A.4.1 AM Gvernance The AM gvernance structure is as identified in Appendix B. A.4.2 Crprate Prject Management Office (PMO) The Crprate PMO entity shall be cmprised f the Manager f Infrastructure Planning, the Manager f the Asset Management Prgram and the Manager f Capital Prjects. The Manager f Infrastructure Planning needs t ensure the respnsibilities f the Crprate PMO recncile with the AMMS gvernance elements. A.4.3 Departmental PMO The Departmental PMO is respnsible t implement and sustain the AMMS within their Department. A single individual needs t be identified as the PMO lead fr the Department. The number f individuals assigned t the PMO will be Department specific. The Departmental PMO shuld be cmprised f the Departmental Asset Manager, Investment Planner, Senir Prject Manager and/r ther designated staff depending n the cmplexity f the investments managed by the PMO. A.4.4 AM Prgram (AMP) Organizatin Delivery Structure The AMP Delivery Structure is as identified in Appendix D AMP Organizatinal Delivery Structure. A.4.5 Rles and Respnsibilities T supprt the abve gvernance structure, the fllwing respnsibilities are applicable t each rle identified: Asset Management Administrative Standard Page N 14 f 49

15 Table 3 Rle & Respnsibility Summary Rle Respnsibilities Chief Administrative Officer (CAO) Ensure cmpliance with this Standard Ensure that adequate resurces are available t meet the requirements f this Standard and accmpanying prcedures Chief Financial Officer (CFO) Oversee financial systems fr purpses f timely financial reprting relating t capital investments Prvide input and advice t the CAO n all financial decisins relating t investment in infrastructure assets Ensure City s liability is limited and nt expsed t un-necessary financial risk Grant applicatins and Third Party funding Ensure infrastructure investment decisins are cnsistent with the City s Debt Strategy Crprate Cntrller Ensure cmpliance with respect t quarterly reprting t SPC Finance as identified in the Majr Capital Prject Advisry Cmmittee sectin Land and exprpriatin transactin reprting (Appendix H) Annual Capital Review, Prject Clsing and Supplemental Brrwing Authrity (Appendix I) Interest and Administrative Overhead Charges (Appendix J) Asset / Prject Management Advisry Cmmittee Mnitr and manage the perfrmance f the AMP Prvide guidance and advice t the AMP Agree n Multi-Criteria Priritizatin criteria and weightings Mnitr prgress and success f the Crprate AM Plan Asset Management Administrative Standard Page N 15 f 49

16 Rle Respnsibilities Departmental Directrs Manager f Infrastructure Planning Develp Asset Strategic plans that link t Departmental business plans Develp Strategic risk assessments fr the service and asset that prvide thse services Prvide Departmental spnsrship fr AM practices and cncepts Prvide leadership and supprt t Departmental AM staff and stakehlders Prvide adequate resurces t supprt asset management gals at the Departmental level Develp and maintain a successin plan t minimize the risk f knwledge lss and maintain the Department s ability t perate and manage its assets Track, analyze and reprt n their Departmental AMP Apprve the CIP fr submissin Prvide input int the AM cmpetency plan Supprt and prmte the training prgram Strive fr the right mix f in-huse and external resurces Accuntable t Cuncil fr capital prject delivery Respnsible fr assigning bth a Prject Spnsr and a Prject Manager t a capital prject Respnsible fr adequately resurcing capital prjects r advising the CAO where prjects cannt be adequately resurced Respnsible fr the establishment f the Majr Capital Prjects Advisry Cmmittee Prvide City-wide leadership in AM practices and cncepts Participate in the Asset / Prject Management Advisry Cmmittee Perfrm crprate reviews n behalf f the CFO Manager f City Asset Management Prgram Crdinate internal and external AM and PM benchmarking as identified in the Quality Management Plan Crdinate tracking f City-wide AM maturity (using the CAMRA Tl) Prvide versight and guidance t the Departments apprach t Investment Planning Asset Management Administrative Standard Page N 16 f 49

17 Rle Respnsibilities Manager f Capital Prjects Cntrl & Use Owner Crprate Prject Management Office (PMO) Departmental PMO Prvide versight and guidance t Departments accuntable fr prject delivery Recmmend imprvements t the PMM and this Administrative Standard, cnsidering best practices in prject management, lessns learned n prir prjects as well as resurcing levels authrized by Cuncil in the annual perating and capital budgets Participate n all Majr Capital Prject Advisry Cmmittees (r appint a designate) Aid the Manager f Infrastructure Planning in perfrming any crprate secndary review as prescribed in this Administrative Standard Perfrm capital prject reviews n an ad hc basis with a fcus n high dllar value and high risk prjects Prvide recmmendatins t the Chief Financial Officer t avid, reduce r mitigate risks n majr capital prjects Review capital prject administrative reprts and ver-expenditure reprts, as assigned by the Chief Financial Officer The Entity at either the Department r Divisin level within a Department that is designated as respnsible fr cntrl and use f the asset The cntrl and use wner is respnsible fr the delivery f the service t the Custmer and subsequently the asset that exists t prvide the service As the City wns all assets, this specific entity within the City rganizatin structure needs t be respnsible fr the asset during its entire lifecycle Enters int and manages the Service Level Agreements Cntrl & Use Owner is the Business Owner in the prject rganizatinal structure The Manager f Infrastructure Planning is designated as Head f the Crprate PMO Respnsible fr the gvernance items identified in Appendix B Respnsible t integrate the AMMS int the Departmental business prcesses The cmmunicatin link with the Crprate PMO and Departmental resurces The respnsibilities include caching, mentring staff and develping perfrmance reprts t cntinually imprve the system Ensure resurces are assigned and utilized effectively and efficiently based n Investment Asset Management Administrative Standard Page N 17 f 49

18 Rle Departmental Asset Managers Departmental Investment Planner Prject Spnsr Respnsibilities demands Respnsible fr Quality Management f the AMMS per the Quality Management Plan at the Department level. This includes gathering and reprting n quality perfrmance measures and implementing crrective actins Review the prject/change cntrl prcess t identify trends and imprvement slutins Integrate and peratinalize the AMMS int the Department s business prcesses Prvide supprt, directin and leadership fr asset management practices Prvide input int the AM Strategic Directin and supprt implementatin nce apprved by the CAO Develp and update the Department s AM plan Prepare and maintain lifecycle management strategies fr key asset classes Track and reprt n AM benefits at the Departmental level Prvide skills develpment t emplyees in specific AM disciplines Participate in Asset / Prject Management Netwrk Cmmittee meetings as the lead fr their Department Participate in implementatin teams as part f the AM prgram develpment prcess Manage the Investment Planning prcess Develp Departmental Investment plans fr 1-3 year budget submissin and 4 t 10 year plans based n investment needs Fr Majr Capital Prjects, shuld cnsider budgeting mnies fr design wrk in advance f the cnstructin phase f the prject in rder t have a Class 3 estimate in place prir t supprt the authrizatin request fr the prject cnstructin budget Acts as a champin f the prject Prvides advice t the Department Head and Prject Manager using their experience and expertise Aids in securing cperatin and resurcing frm utside the prject that is critical t the successful delivery f the prject Asset Management Administrative Standard Page N 18 f 49

19 Rle Respnsibilities Prject Managers Respnsible t the Department Head fr capital prject delivery Manage prjects in accrdance with Cuncil Plicy, Administrative Standards, all prcedures including the PMM and the Investment Planning Manual Respnsible fr cmpleting and retaining all dcumentatin required by the PMM Respnsible fr ensuring capital prject reprting t Cuncil is pen, transparent and fully disclses all material facts s as elected fficials can make infrmed decisins with respect t the capital prject apprvals Asset Management Administrative Standard Page N 19 f 49

20 A.4.6 RACI Matrix See Appendix F - RACI (Respnsibilities, Accuntability, Cnsulted, and Infrmed) Matrix. The bjective f the RACI matrix is t define specific rles and respnsibilities. The rles were created t align with the AMMS and the management f an asset during its lifecycle. As each Department may have different jb titles and jb descriptins, the Departments will need t assign individuals t a specific rle(s). A.4.7 Cmmittee Cmpsitin & Respnsibility AM Advisry Cmmittee The Advisry Cmmittee is cmprised f the Departmental Directrs and ther key individuals as designated by the CFO. The purpse f the advisry cmmittee is t prvide Departmental input int the Asset Management Prject Management prgram decisin making prcess. The Manager f the Asset Management Prgram crdinates and chairs the Asset / Prject Management Advisry Cmmittee and Netwrk Cmmittee meetings. Majr Capital Prjects Advisry Cmmittee Nte: Additinal directives fr majr capital prjects are included in Appendix G. Dllar Threshlds and Exclusins Prjects $10 millin r greater are required t frm a Majr Capital Prjects Advisry Cmmittee. Prgrams are excluded frm the frmatin f a Majr Capital Prjects Advisry Cmmittee, including annual prgrams such as the Transit Bus Replacement prgram, Residential Street Renewals prgram, Sewer and Water Main Renewals prgram. Fr greater certainty, prjects requiring a Majr Capital Prjects Advisry Cmmittee are nw disclsed in an Appendix t the annual Cuncil apprved Capital Budget bk. Cuncil Delegatin A prject is nt authrized until it has been apprved by Cuncil. Cuncil authrizatin identifies the Department accuntable fr the prject delivery via the prject accunt number. The prject accunt number is disclsed either n the Capital Budget detail sheet r Administrative Reprt t Cuncil (fr in-year apprvals). Accuntability The Department Head is accuntable t Cuncil fr the delivery f the prject and therefre has final apprving authrity with respect t the prject. The Department Head then delegates the wrk t a Prject Manager. Asset Management Administrative Standard Page N 20 f 49

21 Cmmittee Establishment The Department Head accuntable fr the prject is respnsible fr establishing the Majr Capital Prjects Advisry Cmmittee and is the Chair f the Cmmittee. The Majr Capital Prjects Advisry Cmmittee is t be established and begin reprting financial status t the SPC Finance within 180 Calendar Days f prject authrizatin and must cntinue t perate t the end f the prject. The Majr Capital Prjects Advisry Cmmittee shall meet as ften as necessary and at least quarterly in advance f any reprting t the SPC Finance. Reprting Requirements Financial status reprting t the SPC Finance shall be quarterly, unless therwise directed by SPC Finance. Minutes f each meeting must be recrded with a cpy sent t the Manager f Infrastructure Planning Divisin and retained in the Departmental recrds. Minutes shuld include the issues r infrmatin presented, wh participated in the meeting and any decisins made by the Cmmittee and/r any infrmatin requested frm the prject. Over-expenditure reprts (if any) are t be apprved in accrdance with Appendix 7 (Cntract Over-Expenditures) f Administrative Standard N. FM-002. Over-expenditure reprts beynd the delegated authrity t the Public Service are t be apprved by the Department s relevant Standing Cmmittee and/r Cuncil. Cmmittee Cmpsitin The Department Head/Chair is respnsible fr appinting ther cmmittee members in accrdance with the fllwing cmmittee cmpsitin: Department Head (Chair) One member frm the accuntable department - having cnsiderable experience directly related t the prject, preferably with similar prjects Tw members frm tw utside departments each hlding a senir psitin in their respective department with significant experience and cmpetencies directly relevant t the prject The Manager f Capital Prjects (r Designate) One member representing Crprate Finance, as apprved by the Chief Financial Officer The Chair can appint any ther members t the Cmmittee at his/her discretin. The Prject Manager and Prject Team members are nt eligible t be appinted t the cmmittee. The Prject Manager (r designate) is required t attend all cmmittee meetings and team members will attend meetings at the request f the Chair. Any member f the Public Service hlding a psitin senir in ranking t the cmmittee Chair is nt eligible t be appinted t the cmmittee. As such, the Chief Administrative Officer, Chief Operating Officer, Chief Financial Officer and City Slicitr are nt eligible t be appinted t the Cmmittee. The Chair may (and shuld) invite any f these individuals t attend cmmittee meetings shuld their expertise be required in relatin t a specific prject issue. The Prject Spnsr must be n the Cmmittee and can fill any f the categries nted abve. Fr greater certainty, the Chair may als elect t assume the rle f the Prject Spnsr. Asset Management Administrative Standard Page N 21 f 49

22 Cmmittee Respnsibility Supprting the Cmmittee Chair in the successful delivery f the prject. Cmmittee Chair Accuntabilities The Chair shall have final decisin n all issues escalated t the Cmmittee as he/she is accuntable t Cuncil fr prject delivery. Additinal respnsibilities include: Establishing the cmmittee within the parameters set ut abve Appinting a Prject Spnsr Appinting a Prject Manager Apprving the Prject Charter and any changes Apprving the Prject Delivery Plan and any changes Apprving a prject risk register as well as mnitring prject risk and any mitigatin plans Ensuring minutes are kept, circulated, apprved and filed as required. Ensuring all required reprts are submitted t Cmmittees f Cuncil and Cuncil Prviding directin t the Prject Manager n matters escalated t the cmmittee including critical decisins as t the trade-ff between cst, schedule, scpe/quality Supprting the Prject Manager and Prject Team as required t aid in the delivery f the prject Ensuring the prject is adequately resurced Cmmittee Member Respnsibilities Supprting the Cmmittee Chair, Prject Manager and Prject Team in the delivery f the prject Using their experience and expertise t prvide advice t the Chair n matters escalated t the cmmittee including critical decisins as t the trade-ff between cst, schedule, scpe/quality Prviding supprt t the prject frm utside departments, where required Aiding in the crdinatin f activities between departments Preparing fr and attending meetings n a regular basis Reviewing and apprving cmmittee minutes Reviewing and making recmmendatins t the Cmmittee Chair regarding the prject charter and prject delivery plan including the risk matrix Prject Manager Respnsibilities Ensuring all material issues are escalated t the Cmmittee including critical decisins as t the trade-ff between cst, schedule, scpe/quality Preparing and signing the Prject Charter and any changes Preparing and presenting t the cmmittee a summarized prject delivery plan and any changes Preparing a prject risk register, identifying and reprting prject risk and develping mitigatin plans Preparing the quarterly Financial Status Reprt t SPC Finance Preparing Over-expenditure reprts (if any) Managing the prject in accrdance with Cuncil Plicy, Administrative Standards and the PMM (i.e. prcedures) Attending Cmmittee meetings (r appinting a designate t attend) Asset Management Administrative Standard Page N 22 f 49

23 Supprting the Prject Team in the delivery f the prject Ensuring capital prject reprting t Cuncil is pen, transparent and fully disclses all material facts s elected fficials can make infrmed decisins with respect t the capital prject apprvals AM & PM Netwrk Cmmittees The Manager f the City Asset Management Prgram is respnsible t frm netwrk cmmittees with representatives frm Crprate and the Departments. Tw cmmittees are envisined but this may change as the prgram mves int sustainment. The tw cmmittees envisined relate t the Asset Management and Prject Management areas. The Chair f the cmmittees shall be as determined by the Manager f the City Asset Management Prgram. The Cmmittee prvides verall supprt and guidance t Departmental staff, assists with the implementatin f specific prcesses and practices, and cmmunicates and prmtes the bjectives f the Visin, Missin and Prgram Measures f Success t ensure they are achieved within the Departments. The Chair shall be respnsible t review the Visin, Missin and bjectives n a regular basis as the Asset Management Prgram matures. A.4.8 Cmpetency Develpment Manager f City Asset Management Prgram Defines the necessary skills and cmpetencies needed t effectively manage the asset base t meet agreed levels f service. Develps a radmap that utlines a graduated training scheme fr the majr rles within the AMMS. Facilitates skills develpment (Training) as it relates t asset management acrss the rganizatin. Designs the rganizatin t ensure that asset lifecycle crdinatin and wrk management is effective thrugh a mix f centralized and decentralized units and tailred jb descriptins. Prvides the tls and prcesses t facilitate cmmunicatin f knwledge and infrmatin bth vertically and hrizntally within the rganizatin. Creates awareness f the AM Plan t all stakehlders bth internally and externally via varius media tls. Facilitates cmmunicatin and rganizatin change management as it relates t AM. Departments shall: Design their rganizatin t ensure that asset lifecycle crdinatin and wrk management is effective thrugh a mix f centralized and decentralized units and tailred jb descriptins. Strive fr the right mix f in-huse and external resurces based n the Alternative Service Delivery Guideline. Crdinate with the Crprate Supprt Services Department thrugh the Manager f City Asset Management Prgram t implement a skills develpment prgram (training) t ensure that the desired cmpetencies are in place t supprt AM practices. Develp and maintain a successin plan t minimize the risk f knwledge lss and ensure their ability t perate and manage their assets. Asset Management Administrative Standard Page N 23 f 49

24 References and Links t Related Dcuments Asset Management Plicy Investment Planning Manual Prject Management Manual Asset Management Plan Framewrk & Guideline Strategic Asset Management Plan (future) Quality Management Plan (future) Amendments Nne Review Prcess The Manager f the Asset Management Prgram and the Manager f Capital Prjects shall review this Administrative Standard n a yearly basis. The CAO s apprval shall be required fr amendments t this Standard. Key Cntacts Questins relates t this Standard shuld be frwarded t the Manager f Infrastructure Planning in Crprate Finance. Definitins Term Definitin/Explanatin Asset Management Cmpetency Plan Asset Management Management System Technlgy Master Plan Asset Asset Management Administrative Standard Asset Management Management System (AMMS) A plan that defines the knwledge and practical experience fr the specific rles identified in this Standard. The verall plan fr hw IT can supprt the AMMS. A resurce cntrlled by the entity as a result f past events and frm which future ecnmic benefits are expected t flw t the entity. The gvernance dcument that utlines the asset management business requirements that the Public Service needs t fllw. A set f interrelated elements (gvernance, prcesses and technlgy) that align the Public Service t cnsistently manage City Assets. See Appendix A fr the elements that define the AMMS Asset Management Administrative Standard Page N 24 f 49

25 Term Definitin/Explanatin Asset Management Plan (AM Plan) Asset Management Plan Guidelines Asset Management (AM) Plicy Dcument that details hw the City s asset are managed. The dcuments are prepared at the Crprate and Departmental level. See the AM Plan Guidelines dcument fr details. Dcument that defines the cntent fr an AM Plan. Key sectins are: State f Infrastructure, Desired Level f Service, AM Strategy, Financing Strategy and Imprvement & Mnitring Plan. Dcument apprved by Cuncil that prvides the Public Service directin t implement the AM prgram. Asset Management Prgram (AMP) The rganizatinal structure defined t deliver the varius AM Strategic initiatives. Asset Management (AM) Strategy Business Cntinuity Plan Business Owner Cntrl & Use Owner Dcument Management System (DMS) A strategy fr hw assets will be managed t meet target level f service criteria. A sectin in the AM plan. Dcument that utlines the prcesses, prcedures and respnsibilities that need t be undertaken t ensure the business cntinues t deliver services at a pre-defined level during and after a disaster. Is the entity in a Prject rganizatin structure wh will assume wnership f the final prject deliverable. Typically this is the Cntrl & Use wner. The City wns all the physical assets but a single Department, r Divisin within a Department, will be designated as the cntrl and use wner f City assets. Refer t Physical Asset Gvernance mdel sectin. An IT slutin fr managing the AMMS recrds (dcuments) thrughut their lifecycle. Investment Planning Manual Level f Service Targets Multi-Criteria Priritizatin (MCP) Gvernance dcument that details hw the Investment Planning prcess is t be managed. The service delivery bjectives that the custmer expects and the assets are expected t prvide. A sectin in the AM plan. A methd used t priritize investments based n the TBL (Triple-Bttm Line) methd. See the IP manual fr details. Asset Management Administrative Standard Page N 25 f 49

26 Term Definitin/Explanatin Physical Asset Dispsal Guidelines Prject Management Office (PMO) Prject Management Manual (PMM) PSAB 3150 Quality Management Plan (QMP) Risk and Hazard Assessment Service Delivery Plans Service Level Agreements (SLA) State f the Infrastructure Reprt (SOIR) Strategic Asset Management Plan Dcument that prvides guidance n hw assets are t be dispsed f (Future). The term is used t describe tw entities; a Prtfli r Prject Management Office. Fr purpses f this Standard, the term is used fr a Prtfli Management Office: Prtfli Management Office entity at the Crprate and Department level that prvides gvernance directin, caching, mentring and guidance t a specific level in the rganizatin. Prject Management Office An entity at the Department level that prvides supprt directly t prject managers in the delivery f prjects. Als prvides caching and mentring services. Gvernance dcument that details hw the prjects delivery prcess is t be managed. PSAB - Public Sectr Accunting Bard. PSAB 3150 utlines the requirement fr reprting n Tangible Capital Assets fr financial accunting purpses. Dcument that utlines hw quality will be embedded within the AMMS. Hazard and Operatin Assessment - is a structured and systematic technique ften used as a technique fr identifying ptential hazards in a system and identifying perability prblems likely t lead t nncnfrming prducts. The plan that defines the services and the service target levels that will be prvided t the Custmer based n grwth and enhancement criteria. This may be part f the Departmental Business Plan r a separate dcument. Agreement that dcuments the services prvided by ne Department t anther. Reprt that details the current state f the City s assets based n defined cnditin criteria. Sectin in the AM Plan. Gvernance dcument that utlines the strategic initiatives in the frm f a Radmap that need t be implemented fr the AMP t be successful in the City f Winnipeg. Asset Management Administrative Standard Page N 26 f 49

27 Appendix A AMMS Phase Descriptin Planning Stage Prcess assciated with Strategic and detailed Planning Phase Gate Asset Management - Management System Prject Delivery Stage Prcesses assciated with delivery f prgrams and Prjects Phase Gate Operatins & Maintenance Stage Prcesses assciated with Asset Operatin and Management Phase Gate Decmmissin/ Dispsitin Stage Prcesses assciated with managing the decmmissining and dispsitin f an asset Phase Gate Key Gvernance & Management Plans Investment Planning Manual Asset Management Plan Guideline Prject Management Manual Cntract Administratin Prcedure AM Plicy Administrative Standards; FM-004 Asset Management, FM-002 Pursuant t the Material Management Plicy Level f Service (LOS) Expectatins Asset Management Plans Quality Management Plan Operatins & Maintenance Management Guidelines Wrk Management Guidelines Asset Dispsal Guidelines Phase Outputs IT Slutins Prcesses v e stm In g in n la P t e n Strategic Planning Asset Risk Assessments Business Case Evaluatin Investment Plans: Priritizatin Prject Delivery Methdlgy VFA (PP&D) VEMAX (PW) SMS (W&W) Level f Service Facilities Master Plan Funding Strategies LOS & Perfrmance; lng range targets 10 year Investment Frecast Capital Budget & 5 yr frecast Risk Assessment mdels Prject Delivery Mdel Prject Plan Develpment Prcurement Prject Plan Management Cmmissining Transfer t Owner Tangible Capital Asset Prtfli Management IT Slutin (Future) Prject Charter & Plan Cncept Design Reprt Preliminary Design Plan & Reprt Prcurement Methdlgy reprt Bid OP & Cntracts Cntract Certificates Cmmissining plan & certificates Risk & Opprtunity Lgs PepleSft- Finance Intergraph - GIS Haz-p Assessment Cnditin and Failure Mde analysis Optimize Operatins and Maintenance Asset Register Maintenance Insurance updates Investment Requests Oracle WAM (W&W) Maxim (PP&D) TKMMS (PW) System Integratin Master Plan Asset Register Optimize Operatins and Maintenance plan Investment Requests Decmmissining Dispsal Decmmissining Plan Dispsal Plan Asset Management Administrative Standard Page N 27 f 49

28 Appendix B Asset Management Gvernance Structure Cuncil Apprves: AM Plicy Budgets CAO is respnsible t; Apprve AM Strategy and Administrative Standard Ensure cmpliance with this Standard Ensure adequate resurces are available t deliver the Prgram CFO is respnsible fr; Delivery f the Asset Management Prgram Crprate s Prject Management Office is respnsible t: Develp and manage the gvernance dcumentatin, prcesses, prcedure, tls and templates Ensure that cmpnents f the AMMS are fllwed Quality Management; reviews and cntinuus imprvement Gvernance - Quality Management - Training - Strategic directin - - Key Perfrmance Metric - Benefit Realizatin results Department s Prject Management Office is respnsible fr: Management f the prcesses & prcedures utlined in the AMMS Caching and Mentring staff Quality Management f Prgram and Prjects Asset Crdinatrs, Investment Planners Manage the Assets and develp Investment Plans based n the AM Gvernance Dcuments Perfrmance Reprting Prject Managers, Cntract Administratrs Delivering the Prgram r Prject based n the AM Gvernance Dcuments Perfrmance Reprting Asset Management Administrative Standard Page N 28 f 49

29 Appendix C PMO Gvernance - Departmental cverage Asset Management Administrative Standard Page N 29 f 49

30 Appendix D AM Prgram Organizatin Delivery Structure Advisry Cmmittee (Senir Management) AM and PM Netwrk Cmmittee Spnsr (CFO) Crprate Asset Manager/Manager Capital/ Prject Manager Departmental Teams Cnsultants Asset Management Administrative Standard Page N 30 f 49

31 Appendix E Level f Service Mdel Crprate LOS Cre Values, Missin Statements E.g. prvisin f safe, clean water Custmer LOS Defines the Custmer Expectatin The LOS that the Asset Manager/Crpratin prvides t the Custmer E.g. number f prperties withut water >6hrs Technical LOS Asset LOS Operatinal Perfrmance Indicatr (OPI) Define the technical requirements. The LOS that the Asset is capable f prviding t the Asset Manager/Crpratin (6 breaks/100 metres/year) Quantifiable indicatrs f efficiency quality and/r effectiveness f peple based task Asset Management Administrative Standard Page N 31 f 49

32 Appendix F RACI Matrix Accuntable (final apprving authrity) Respnsible Answerable fr the crrect and thrugh cmpletin f the deliverable r task Delegates the wrk t thse respnsible Only can be ne accuntable specified fr each task r deliverable Fr clarity, this is the individual that is ultimately accuntable t Cuncil fr delivery f the prject Thse wh d the wrk t achieve the task Only ne rle type f respnsible (R), althugh thers can be delegated t assist as required which are designated as (R 2 ) Cnsulted (smetimes cunsel) Thse whse pinins are sught, typically subject matter experts; and with whm there is tw-way cmmunicatin Infrmed Thse wh are kept up-t-date n prgress, ften nly n cmpletin f the task r deliverable; and with whm there is just ne-way cmmunicatin Asset Management Administrative Standard Page N 32 f 49