Appendix A – Draft Asset Management Policy

1. PURPOSE

The Town of View Royal provides a wide range of services to its community that depend on the management of assets. Asset management (AM) is a systematic and integrated approach, involving all Town departments, to deliver value to its community through the effective and responsible management of assets. The intent is to maximize the benefits of the services provided by assets while balancing the associated costs and risks. The purpose of this policy is to support sustainable, risk-informed delivery of municipal services, and to:

1.1 Establish responsible governance for the practice of asset management within the Town’s organization;

1.2 Document Council’s commitment to asset management and the continuous improvement of the Asset Management Program;

1.3 Define guiding principles for the development, implementation, and integration of the Asset Management Program; and

1.4 Delineate the roles and responsibilities for the delivery of the Asset Management Program and sustainable service delivery.

2. SCOPE

This policy applies to all Town service areas, departments, officers, and employees. This policy applies to all new and existing assets owned, managed, or used by the Town of View Royal to provide services.

Where service provision is supported by assets not owned by the Town of View Royal, the Town will work collaboratively with those asset owners and promote the principles outlined in this policy.

Not included in the scope of this policy is the management of assets related to services that are not provided by, or on behalf of, the Town of View Royal.

3. DEFINITIONS

3.1 Asset: an item, thing, resource, or entity that has potential or actual value to, and is relied upon by, the Town of View Royal.

3.2 Asset Management: a systematic and integrated approach to the effective and responsible management of new and existing assets in order to maximize benefits, manage risk, and provide satisfactory levels of service to the community in a sustainable manner.

3.3 Asset Management Program: the set of policies, governing principles, strategies, processes, and practices applied to manage assets through their lifecycle in support of sustainable service delivery.

3.4 Asset Management Program Strategy: the operational document, owned and maintained by the Asset Management Working Group, in alignment with this Asset Management Policy that is the program roadmap.

3.5 Natural Assets: assets that are naturally occurring (e.g. water bodies, wetlands, urban forests, water courses, and wildlife corridors).

3.6 Lifecycle: the life of an asset, including planning, design, construction or acquisition, operations, maintenance, renewal, and disposal.

3.7 Level(s) of Service: the standard or performance level at which the Town delivers a service to the community.

3.8 Sustainability: meeting the needs of the present without compromising the ability of future generations to meet their own needs.

3.9 Risk: the likelihood and consequences of uncertain events affecting outcomes.

4. POLICY PRINCIPLES

The following principles define the Town’s high-level approach to asset management. They guide decision-making at all levels of the organization, remain constant across Council terms and organizational changes, and form the foundation for the Town’s Asset Management Program and associated plans.

4.1 Service Delivery to the Community

Assets enable the Town to deliver services to the community. Asset management decision-making should be guided by clearly defined Levels of Service that reflect community expectations and balance risk and affordability.

The Town will:

• define Levels of Service, supported by measurable key performance indicators for both customer-facing and technical outcomes, for municipal services delivered by assets;
• manage and maintain assets to efficiently and effectively deliver the defined Levels of Service;
• periodically review Levels of Service and associated performance indicators to ensure alignment with community expectations, Council direction, and available resources;
• consider the criticality of assets delivering core services to minimize the risks of service disruption;
• promote transparency in communicating service delivery performance and the status of the Asset Management Program to Council and the community;
• support decisions regarding new assets with business cases that consider lifecycle costs, service delivery benefits, and financial implications.

4.2 Long-Term Sustainability and Resilience

Long-term sustainability and resilience entails managing assets in a socially, environmentally, and economically responsible manner that meets current community needs without compromising the ability of future generations to meet their own needs.

The Town will:

• consider the intersection between assets and the environment, including how environmental conditions affect assets and how asset decisions impact climate, ecosystems, and natural systems;
• support a proactive approach to mitigating environmental risks to infrastructure, services, and the environment;
• recognize the value of Natural Assets and consider their role in supporting sustainable service delivery;
• consider Indigenous reconciliation, and socio-cultural outcomes, such as community well-being, equity of service delivery, and heritage implications, when making asset management decisions;
• consider full lifecycle costs, long-term affordability, and intergenerational financial equity to support sustainable service delivery over time.

4.3 Holistic and Integrated Approach

A holistic and integrated approach recognizes the interrelationships between assets, services, information, finances, and people as part of a connected system, through organization-wide collaboration and coordinated decision-making.

The Town will:

• apply asset management principles and practices across departments and service areas using a consistent and coordinated approach;
• encourage collaboration throughout the organization to build effective working relationships and support information-sharing;
• consider all lifecycle stages and the interrelationship between asset performance and service delivery to inform asset management decision-making;
• promote alignment between the Asset Management Program and relevant corporate plans and processes;
• recognize asset interdependencies and consider coordination of the Town’s asset management activities with regional neighbours, provincial agencies, and service partners.

4.4 Fiscal Responsibility and Evidence-Based Decision-Making

Fiscal responsibility and evidence-based decision-making entails the responsible use of funds and ongoing long-term financial analysis to support informed and defensible investment decisions that balance service outcomes, risk, affordability, and reporting obligations.

The Town will:

• develop and maintain long-term projections of asset investment needs, informed by risk and condition assessment and full lifecycle demands, to identify and prioritize investment requirements and reserve levels;
• establish prioritized capital investment plans that reflect approved Levels of Service and strategic objectives, and demonstrate the service impacts of funding decisions;
• integrate asset management financial planning with the Town’s long-term financial plan and annual budget processes to support sustainable and predictable funding;
• ensure taxation, user rates, fees, and charges are informed by the full lifecycle cost of service delivery;
• manage asset financial data with consideration to operational efficiency and regulatory reporting obligations.

4.5 Continuous Improvement

The Town views continuous improvement as a key part of its iterative approach to asset management. A culture of learning, measurement, and improvement increases the Town’s asset management maturity over time and strengthens service delivery for the community.

The Town will:

• maintain a complete and accurate asset inventory, including condition, performance, and lifecycle data;
• use appropriate best practices, data, tools, and resources to support asset management decision-making;
• periodically review and evaluate the effectiveness of the wider Asset Management Program, and make adjustments as required;
• assess the asset management competencies required to implement the program and provide necessary support, education, and training to staff;
• review this Asset Management Policy alongside the review of the Asset Management Program on a cycle of every four years, or as otherwise required;

5. ROLES AND RESPONSIBILITIES

The application of asset management is the responsibility of people throughout the Town. The following roles carry specific responsibilities for leading implementation.