Best practices asset management oemc

Municipal Long-term Asset Management

Ontario East Municipal Conference

September 13, 2012

September 27,

2012 Ministry of Municipal Affairs and Housing

2

Presentation Overview

• Asset Management

• Provincial and Eastern Landscape

• Why Take Action?

• Municipal Infrastructure Strategy

• Funding Program

• New Resources Available

• Application of Resources

• Other Resources

• Examples of Plans

September 27,


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Asset Management

• Asset management takes an organization’s objectives and develops a plan

to provide the supporting infrastructure services at the lowest lifecycle cost.

0 5 10 15 20 25 30 35 40 45 50 55 60 65

Co

nd

itio

n

Small but timely investments save money

Smart Asset Management ($100m total):

Make timely investments throughout asset life

Poor Asset Management ($120m total):

Let asset depreciate, then replace

$10m$10m

$10m

$10m

$60m$60m

September 27,


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Asset Management

• Tangible capital asset accounting by itself ≠ asset management

• Research demonstrated variation in asset management planning, and the need for more resources

• Even if a municipality has an asset management plan in place, it does not necessarily mean they are adequately budgeting for their assets

• Ontario’s ten-year infrastructure plan (Building Together)

September 27,


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Provincial Landscape

Yes 37%

No 63%

Municipalities in Ontario with an asset management plan

September 27,


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Eastern Landscape

45% (50) 42% (32) 39% (42) 38% (13)

25% (27)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Eastern Central Western Northwestern Northeastern

Pe

rce

nta

ge o

f m

un

icip

alit

ies

wit

h a

pla

n

Ontario Region

Municipalities with a long-term asset management plan (Regional Comparison)

Ideal standard (100%)

Provincial average (37%)

September 27,


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Why Take Action?

• Municipal infrastructure is critical to delivering services to Ontarians and supporting our economy

• Asset management will help give us a locally developed, systematic understanding of what needs are most important and how they can be addressed

• This will help municipalities and the province make the right investments at the right time

September 27,


8

Municipal Infrastructure Strategy

• First phase launched in August 2012.

Asset management is a cornerstone.

• Municipalities seeking provincial

capital funding will now be required

to submit a detailed asset

management plan.

• The province is making resources

available to help municipalities:

• Building Together- Guide for Municipal Asset Management Plans

• Online asset management toolkit

• Municipal Infrastructure Investment Initiative (MIII)

www.ontario.ca/municipalinfrastructure

http://www.ontario.ca/municipalinfrastructure

September 27,


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Municipal Infrastructure Investment Initiative (MIII)

• $60 million funding program (over

three years.) Including:

• $9 million in entitlement funding

for eligible municipalities and

housing Service Managers to

develop long-term asset

management plans.

• Capital funding to help address

necessary road, bridge, water

and wastewater projects

identified through asset

management plans beginning in

2013-14. Details will be

available soon.

Expressions of Interest are due Oct 22

September 27,


10

New Resources Available

• A Guide for Municipal Asset

Management Plans and online asset

management toolkit are now available.

• The guide sets out the information and

analysis that, at a minimum, municipal

asset management plans should

include.

• The toolkit contains additional

resources to help municipalities

develop detailed asset management

plans.

September 27,


11

Application of Resources

Municipalities Without Plans

Many of the resources available are aimed at supporting municipalities starting the

planning process.

Direction and Support (Guide p.27)

• Obtain a Council resolution that

directs staff to develop an asset

management plan.

• Designate a project champion

within the municipal administration

and another on Council.

• Establish a Working Group or

Steering Committee to engage the

appropriate municipal departments

in the process.

• Ensure that engineering, finance and other appropriate representatives are included.

September 27,


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Application of Resources

Municipalities With Plans

Resources available also focus in on municipalities with guides in place and

clarify information which should be included in plans.

An Open and Ongoing Process (Guide p.28)

• Ensure that asset management plans are

clear and available to the public.

• Monitor and report on the implementation of

asset management plans at the Council and staff

levels.

• View asset management plans as “living”

documents that require continuous updates and

improvements.

September 27,


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Examples of Plans:

2009 State of the Infrastructure Report

City of Hamilton

September 27,


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Examples of Plans:

Eastern Ontario

Township of

Tudor and Cashel

(Pop. 572)

Township of

Edwardsburgh/

Cardinal

(pop. 6194)

September 27,


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Other Resources

Work of Partners

• Municipal DataWorks

http://www.municipaldataworks.ca/

• Municipal Finance Officers Association

http://www.mfoa.on.ca/

• Association of Municipalities of Ontario

http://www.amo.on.ca/

• HSC Asset Management Centre

http://www.hscorp.ca/asset-management-centre-amc/

September 27,


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Contact

Chris Terech

Manager, Financial Analysis & Reporting

Municipal Finance Policy Branch,

Ministry of Municipal Affairs and Housing

[email protected]

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