In December 2017, the province passed an asset management planning regulation under the Infrastructure for Jobs and Prosperity Act 2015, Ontario Regulation 588/17.
An Asset Management Policy is a core requirement of good practice Asset Management system. The Asset Management Policy instructs the municipal administration to implement an Asset Management system guided by a set of principles. These principles represent the underlying philosophies that will guide asset management decision-making. Pursuant to the Regulation, every municipality is required to prepare a first strategic Asset Management Policy by July 1, 2019.
Asset management helps protect and enhance the quality of life by making the best possible decisions about our assets—pipes, buildings, roads and parks—in a way that provides targeted levels of service and manages risk in a cost-effective manner.
Good asset management means making decisions based on the lowest long-term cost over the entire lifecycle of the asset, rather than short-term savings, and managing assets in a way that balances service levels, risk and cost.
Why is Asset Management important?
- Establishes processes for Corporate Asset Management.
- Signifies that the City is committed to implementing an Asset Management business model and continual improvement.
- Builds awareness of what the City regards as good practice Asset Management and sets strong direction and clear expectations.
- Provides a strong mandate and catalyst for business improvement activities, where required.
- Provides a basis to develop Asset Management related objectives that align with the City’s overarching strategic objectives.