Asset Management Planning Program 2019 Program & Application Guide

1. Introduction

The Asset Management Planning program was created in 2014 through a $1.5 million contribution from the Ministry of Municipal Affairs & Housing. Since that time, an additional $2.75 million has been contributed to the program in order to support planning grants, training subsidies and the development of asset management resources.

The intent of the program is to assist local governments in delivering sustainable services by extending and deepening asset management practices within their organizations. Since 2015, more than 231 grants and subsidies have been awarded to local governments throughout the province.

Matching grants of up to $15,000.00 are available under the 2019 Asset Management Planning program to support activities that advance a local government’s asset management planning or practices, and that facilitate better integration of asset management planning with long term financial planning.

Program Goals & Objectives

All local governments own, operate and maintain a wide array of assets. These include, but are not limited to, transportation and water distribution networks, sewage collection systems, information technology, vehicle and equipment fleets, parks and civic facilities.

Asset management is defined as an integrated process bringing together planning, finance, engineering and operations to effectively manage existing and new infrastructure to maximize benefits, reduce risks and provide satisfactory levels of service to community users in a socially, environmentally and economically sustainable manner.

Asset management brings together the skills, expertise and activities of people with information about a community’s physical assets and financial resources so that informed decisions can be made to ensure the sustainable service delivery for citizens today and in the future.

Each local government is different in its scale and chosen approach to asset management. Each local government will define their own activities based on their unique context, starting point and priorities.

The program seeks to support local governments to take next steps on the path to better asset management practices. A further objective of the program is to support local governments in meeting their asset management commitments under the Gas Tax Fund.

In 2016, local governments were required to complete a survey that identified the current status of their asset management practices. Moving forward, local governments are required to commit to building and strengthening the asset management capacity within their organization.

2. Key Resources

The following resources are recommended to assist local governments advance asset management within their organizations. These will help guide communities through the stages of ongoing asset management practice: assessment, planning and implementation.

Asset Management for Sustainable Service Delivery: A BC Framework, 2014

Designed to reflect best practices and with the diversity of BC’s communities in mind, the Framework establishes a high-level, systematic approach that supports local governments in moving toward service, asset and financial sustainability through an asset management process. The Framework is dedicated to helping local governments understand what asset management is, why it is important and how it can be implemented.

The Framework has been approved as a key reference document providing guidance to local governments on meeting their asset management commitments under the Gas Tax Fund.

The following tools support implementation of the Framework. All are available on the Asset Management BC website.

• Asset Management Roadmap
• AssetSmart
• Asset Management Policy Template
• Asset Management Policy Model Bylaw
• National Asset Management Strategy (NAMS)
• International Infrastructure Management Manual (IIMM)
• ISO 55000

Training for Asset Management

Asset Management BC provides information on training opportunities for local governments to advance asset management practices. Refer to their website for current training offerings.

The Asset Management Planning program training subsidy can cover up to 50% of the registration fee for up to three staff per local government for eligible Asset Management BC training events. Funding permitting, one training subsidy is available per local government and prior training without the subsidy does not impact eligibility.

Other Funding Programs

The following funding programs offer complementary resources supporting asset management:

• Gas Tax Fund: Community Works Fund – Capacity Building
• BC Ministry of Municipal Affairs & Housing: Infrastructure Planning Grant Program

3. Eligible Applicants

Eligible applicants are local governments (municipalities and regional districts) in British Columbia. Please see Section 6 for other important information on applicant responsibilities.

For each intake, only one application per municipality will be accepted. Reflecting differences in service delivery, regional districts may submit up to three applications per intake.

4. Eligible Projects & Funding Priorities

As described in the Framework, asset management activities fall broadly under the categories of Assess, Plan and Implement. The focus of the program is capacity building, supporting initial and improved assessment, and planning activities.

In addition, to qualify for funding, projects must:

• Be a new project or new project component (retroactive funding is not available)
• Be capable of completion by the applicant within one year from the date of grant approval

5. Eligible & Ineligible Costs & Activities

Eligible Costs & Activities

Eligible costs are direct costs that are approved by the Evaluation Committee, properly and reasonably incurred, and paid by the applicant to carry out eligible activities. Eligible costs can only be incurred from the date of application submission until the final report is submitted.

Under the Asset Management Planning program, eligible activities must be cost-effective and include the activities identified in Table 1.

Table 1: Eligible Activities

The following expenditures are also eligible provided they relate directly to the eligible activities identified above:

• Consultant costs
• Incremental applicant staff and administration costs
• Public information costs

Ineligible Costs & Activities

Any activity that is not outlined above or is not directly connected to activities approved in the application by the Evaluation Committee is not eligible for grant funding or as the community contribution. This includes:

• Ongoing or regular planning activities
• Feasibility studies
• Acquisition of tangible capital assets, including software
• Any activity which is considered general operation and maintenance
• Activities required to meet PSAB standards
• Development (i.e. data collection) of Asset Inventories/Registers

6. Grant Maximum

The 2019 Asset Management Planning program can provide up to 50% of total project costs to the grant maximum ($15,000). The remainder (50%) is required to be funded through community contributions.

The community contribution for a project must be directly related to activities approved in the application and can come from a number of sources, including:

• Cash contribution from local government
• In-kind contribution from local government
• Third-party contribution
• Other grant funding (see below)

Other Grant Funding

In order to ensure transparency and accountability in the expenditure of public funds, all other grant contributions for eligible portions of the project must be declared and, depending on the total value, may decrease the value of the grant.

Gas Tax Fund

Applicants can use Community Works Funds to meet the community contribution requirement for projects funded under the 2019 Asset Management Planning program.

For a defined project, eligible applicants may either be approved for funding under the Strategic Priority Fund or the Asset Management Planning program, but not both. It is recommended that the same project not be applied for under both programs. Projects that have been approved under the SPF - Capacity Building Stream are deemed ineligible projects under the Asset Management Planning program, unless they are identified as a distinct or phased component of the overall project.

FCM Municipal Asset Management Program

For a defined project, eligible applicants may be funded under both the FCM MAMP and the Asset Management Planning program for activities that are eligible under both programs. As FCM will fund up to 80% (to maximum of $50,000) and UBCM will fund up to 50% (to maximum of $15,000), applicants can leverage both programs to meet the community contribution requirements.

Applicants with approved FCM MAMP projects should forward the complete MAMP application package with the FCM notice of funding approval with their Asset Management Planning program application.

7. Application Requirements & Process

Application Deadline

Applications can be submitted at any time; however, funding permitting, applications will only be reviewed two times in 2019. Applicants will be advised of the status of their application within 60 days of the following application deadlines:

• May 3, 2019
• October 4, 2019

Required Application Contents

All applicants are required to submit:

• Signed application form
• Council or Board resolution indicating support for the proposed activities and willingness to provide overall grant management.
• Detailed project budget
• For eligible projects that have also been funded through FCM, the complete MAMP application package and notice of funding approval from FCM is also required to be submitted.

Submission of Applications

Applications should be submitted as Word or PDF files. If you choose to submit your application by e-mail, hard copies do not need to follow.

All applications should be submitted to:

Local Government Program Services, Union of BC Municipalities E-mail: lgps@ubcm.ca Mail: 525 Government Street, Victoria, BC, V8V 0A8

Review of Applications

Priority will be given to applications that demonstrate cost-effective progress in asset management policy and/or practice and to applications from applicants that have not previously received funding through the Asset Management Planning program.

Applications will be assessed based on the guiding principles and funding priorities. Higher application review scores will be given to projects that:

• Are from applicants that have not previously received funding through the program
• Align with the Asset Management Framework
• Complement priorities and commitments under provincial and federal programs
• Include collaboration or partnering with one or more other local governments (regional opportunities, training, etc.)
• Demonstrate transferability and add value to other local governments
• Include in-kind or cash contributions to the project (including other grant funding)
• Are cost-effective

8. Grant Management & Applicant Responsibilities

Please note that grants are awarded to eligible applicants only and, as such, the applicant is responsible for completion of the project as approved and for meeting reporting requirements.

Applicants are also responsible for proper fiscal management, including maintaining acceptable accounting records for the project. UBCM reserves the right to audit these records.

Notice of Funding Decision

All applicants will receive written notice of the funding decision as well as the terms and conditions of any grant that is awarded. Grant payments are issued when the approved project is complete and UBCM has received and approved the required final report and a financial summary.

Changes to Approved Projects

Approved grants are specific to the project as identified in the application, and grant funds are not transferable to other projects. Approval from Evaluation Committee will be required for any significant variation from the approved project.

To propose changes to an approved project, approved applicants are required to submit:

• Revised application package, including an updated budget
• Written rationale for proposed changes to activities and/or expenditures

Applicants are responsible for any costs above the approved grant unless a revised application is submitted and approved prior to work being undertaken.

Extensions to Project End Date

All approved activities are required to be completed within 12 months of approval and all extensions beyond this date must be requested in writing and be approved by UBCM. Extensions will not exceed one year.

9. Final Report Requirements & Process

All funded activities are to take place within one year of notification of funding approval and the final report will be due within 30 days of project completion.

Applicants are required to submit an electronic copy of the complete final report, including the following:

• Completed Final Report Form
• Financial Summary, including the community contribution and other grant funding
• Copies of any plans or documents that were developed or updated as part of the funded project

Submission of Final Reports

All final reports should be submitted to:

Local Government Program Services, Union of BC Municipalities E-mail: lgps@ubcm.ca Mail: 525 Government Street, Victoria, BC, V8V 0A8