Best practices asset management oemc

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  • 1. Municipal Long-term Asset Management Ontario East Municipal Conference September 13, 2012
  • 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 PlansSeptember 27,2012 Ministry of Municipal Affairs and Housing 2
  • 3. Asset Management • Asset management takes an organization’s objectives and develops a plan to provide the supporting infrastructure services at the lowest lifecycle cost. Small but timely investments save money $60m $60m Smart Asset Management ($100m total): Make timely $10m investments Condition $10m throughout asset life $10m Poor Asset $10m Management ($120m total): Let asset depreciate, then replace 0 5 10 15 20 25 30 35 40 45 50 55 60 65September 27,2012 Ministry of Municipal Affairs and Housing 3
  • 4. 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 27,2012 Ministry of Municipal Affairs and Housing 4
  • 5. Provincial Landscape Municipalities in Ontario with an asset management plan No 63% Yes 37%September 27,2012 Ministry of Municipal Affairs and Housing 5
  • 6. Eastern Landscape Municipalities with a long-term asset management plan (Regional Comparison) Ideal standard (100%) 100% 90% 80%Percentage of municipalities with a plan 70% 60% 45% (50) 50% 42% (32) 39% (42) 40% 38% (13) Provincial average (37%) 30% 25% (27) 20% 10% 0% Eastern Central Western Northwestern Northeastern Ontario Region September 27, 2012 Ministry of Municipal Affairs and Housing 6
  • 7. 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 timeSeptember 27,2012 Ministry of Municipal Affairs and Housing 7
  • 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/municipalinfrastructureSeptember 27,2012 Ministry of Municipal Affairs and Housing 8
  • 9. 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 Expressions of Interest are due Oct 22 2013-14. Details will be available soon. September 27, 2012 Ministry of Municipal Affairs and Housing 9
  • 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 27,2012 Ministry of Municipal Affairs and Housing 10
  • 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 27,2012 Ministry of Municipal Affairs and Housing 11
  • 12. 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 27,2012 Ministry of Municipal Affairs and Housing 12
  • 13. Examples of Plans: 2009 State of the Infrastructure Report City of HamiltonSeptember 27,2012 Ministry of Municipal Affairs and Housing 13
  • 14. Examples of Plans: Eastern Ontario Township of Tudor and Cashel (Pop. 572) Township of Edwardsburgh/ Cardinal (pop. 6194)September 27,2012 Ministry of Municipal Affairs and Housing 14
  • 15. 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 27,2012 Ministry of Municipal Affairs and Housing 15
  • 16. Contact Chris Terech Manager, Financial Analysis & Reporting Municipal Finance Policy Branch, Ministry of Municipal Affairs and Housing Christopher.Terech@ontario.caSeptember 27,2012 Ministry of Municipal Affairs and Housing 16