HomeMy WebLinkAbout2018-PAD-073 Asset Management
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2018-PAD-073
TITLE: ASSET MANAGEMENT
ADOPTED: July 19, 2018 (C-220/18) SUPERCEDES NO: n/a
TO BE
REVIEWED: PAGE NO: 1 of 4
1 POLICY PURPOSE
To establish the County’s commitment to asset management and provide a set of
principles to guide the development and implementation of an Asset Management
System in such a way that it is coordinated, cost-effective and organizationally
sustainable.
2 DEFINITIONS
2.1 Assets – an asset is an item, thing or entity that has potential or actual value
to an organization. The value can be tangible or intangible, financial or non-
financial and includes consideration of risks and liabilities.
2.2 Asset Management – is the coordinated activity of an organization to realize
value from assets. It encompasses all asset types, tangible and intangible,
individual components or complex systems, and all activities involved in the
asset’s life cycle – everything from initial identification of requirements or
opportunities, acquisition/creation, operations, asset care/maintenance
responsibilities through to retirement/disposal.
2.3 Asset Management System (AM System) – (as defined in ISO 55000) is a
management system for asset management. The AM system should be able
to accommodate the various levels at which asset unit may be managed,
ranging from the operational level where discrete assets are managed up to
the corporate level where integration across asset systems, networks or
portfolios is desired.
2.4 Asset Management Strategy (AM Strategy) – defines the County’s high
level long term approach to asset management. Its purpose is to: define the
scope of the AM System; identify internal and external stakeholders and how
they will be engaged; document the corporate level Asset Management
Objectives (AM Objectives) and describe the role of asset management in
achieving Council’s priorities; document asset management Governance
Structure within the County; define the process for review and continuous
improvement of the AM system; and inform the approach for developing Asset
Management Plans (AM Plans).
2.5 Asset Management Framework (AM Framework) – sets out the principles
of the AM System and provides guidance for its implementation, operation,
and maintenance, It defines: the detailed components of the AM System; the
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2018-PAD-073
TITLE: ASSET MANAGEMENT
ADOPTED: July 19, 2018 (C-220/18) SUPERCEDES NO: n/a
TO BE
REVIEWED: PAGE NO: 2 of 4
functional relationships between the components and with other organizational
management systems; roles and responsibilities for components of the system
and for reviews and performance reporting; criteria for decision-making,
prioritizing, and criticality assessments; and references other framework and
asset management guidance documents.
2.6 Asset Management Plan (AM Plan) – long term (20 year) plan that details
the assets, activities and programs for each service area, and the resources
required to provide a defined level of service in the most cost-effective way.
3 POLICY STATEMENT
The County of Newell will:
3.1 Establish, implement, maintain, and continually improve an AM System in
alignment with ISO 55000, 55001, and 55002 Asset Management Standards.
3.2 Develop a strategic AM Plan and integrate this plan with the annual budget
and annual reports. An AM Strategy and AM Framework should be detailed in
the AM Plan.
3.3 Maintain and manage assets at defined levels to support public safety,
community well-being and community goals.
3.4 Monitor standards and service levels to ensure that they meet/support
community and Council goals and objectives.
3.5 Establish infrastructure replacement strategies through the use of full life cycle
costing principles.
3.6 Plan financially for the appropriate level of maintenance of assets to deliver
service levels and extend the useful life of assets.
3.7 Plan for and provide stable long-term funding to replace and/or renew and/or
decommission infrastructure assets.
3.8 Make informed decisions, identifying all revenues and costs associated with
infrastructure asset decisions, including additions and deletions.
3.9 Establish organizational accountability and responsibility for asset inventory,
condition, use and performance.
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2018-PAD-073
TITLE: ASSET MANAGEMENT
ADOPTED: July 19, 2018 (C-220/18) SUPERCEDES NO: n/a
TO BE
REVIEWED: PAGE NO: 3 of 4
3.10 Consult with stakeholders where appropriate.
3.11 Use available resources effectively and minimize total life cycle costs of assets.
3.12 Manage corporate assets to minimize risks to users and risks associated with
failure and optimize benefits to citizens.
4 POLICY ON THE KEY PRINCIPLES OF ASSET MANAGEMENT
4.1 To effectively use Asset Management to support achievement of the County’s
organizational goals, the following principles are to be applied within the
County’s AM System:
a) Holistic – take a comprehensive approach that looks at the “big picture”
(i.e. the combined implications of managing all aspects rather than a
compartmental approach). This includes the functional interdependencies
and contributions of assets within asset systems and the different
management of assets across all lifecycle phases.
b) Systematic – take a methodical approach (i.e. formal, repeatable, and
consistent) to the management of assets.
c) Systemic – make asset investment decisions in an asset system context,
not just to optimize the individual asset itself.
d) Risk-based – manage asset risk associated with attaining levels of service
and focusing resources, expenditures and priorities based on risk and
associated cost/benefit.
e) Optimal – make asset investment decisions based on trade-offs between
the competing factors of service level (including asset performance), risk
and cost.
f) Sustainable – take a long-term, lifecycle-based approach in estimating
asset investment and activities, thus developing effective asset
management strategies for the long term.
g) Integrated – coordinate the above principles to ensure the delivery of
justified services and well-defined outcomes.
COUNTY OF NEWELL - POLICY HANDBOOK
POLICY NO: 2018-PAD-073
TITLE: ASSET MANAGEMENT
ADOPTED: July 19, 2018 (C-220/18) SUPERCEDES NO: n/a
TO BE
REVIEWED: PAGE NO: 4 of 4
h) Aligned – ensure that the AM System complements the strategic
objectives of the County, as well as other key business systems,
legislation and regulation.
5 ROLES & RESPONSIBILITIES
ROLE RESPONSIBILITY
Adopt an asset management policy and establish levels of Council
service
Monitor and review infrastructure standards and levels of Council, CAO and Staff
service as established
Develop and maintain asset inventories Directors & Finance
Assess infrastructure conditions Directors
Establish and monitor infrastructure replacement levels Directors & Finance
and needs through asset inventory data set
Develop and maintain financial plans for the appropriate Directors & Finance
level of maintenance, rehabilitation, extension and
decommission of assets
Report on infrastructure assets and asset management Directors & Finance
program
6 RISKS OF NON-COMPLIANCE
Failure to adhere to this policy may result in:
6.1 The risk that the County is not investing in safe and reliable infrastructure at
the most optimal times in the asset’s lifecycle. This risk potentially
compromises the safety and service delivery provided by the County’s
infrastructure.
6.2 The risk of sub-optimal planning for growth, maintenance and replacement of
existing assets and the development of new assets. This risk potentially
compromises the County’s ability to meet expected levels of service.
6.3 The risk of conflicting department investment priorities, poor coordination of
service delivery, corporate inefficiencies, and lack of expenditure optimization.
6.4 Capital plans that are inconsistent with the needs identified in the asset
management plans, thus increasing the infrastructure gap. This risk potentially
compromises the alignment of infrastructure, financial, and land-use goals and
objectives and the ability to achieve sustainability goals.