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Purpose
To create an organization-wide Asset Management System.
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Policy Statement
The City is committed to Asset Management and to development of an integrated, organization-wide Asset Management System with the goals of:
a) delivering services at approved levels of service;
b) improving decision-making accountability and transparency;
c) considering long-term impacts of short-term decisions;
d) improving customer service;
e) maintaining or reducing lifecycle costs while maintaining levels of service; and
f) considering service outcomes when making infrastructure investment decisions.
The Asset Management System shall align with the City’s corporate strategy and policies.
Policy Requirements
1 Guiding Principles
The principles that shall guide the City’s Asset Management System objectives are:
a) holistic approach;
b) service excellence;
c) long-term sustainability and resilience;
d) innovation and continuous improvement; and
e) investment decision making.
2 Holistic Approach
The City shall:
a) implement a holistic approach to Asset Management that considers impacts of
decisions on stakeholders, and shall make informed, evidence-based decisions
using formal and consistent methods;
b) consider assets and their interrelationships in a larger service delivery context;
and
c) encourage collaboration, cooperation, and information sharing across the
organization.
3 Service Excellence
The City shall:
a) create a framework for establishing levels of service and establish levels of
service that:
i. adhere to applicable legislative requirements;
ii. use risk-based and information-driven decision-making processes that
consider impact to stakeholders when evaluating decisions regarding
maintaining or changing levels of service; and
iii. consider affordability and availability of resources;
b) target investments to maintain and manage assets at established levels of
service; and
c) ensure decisions regarding new assets are supported by a business case that
articulates costs and benefits.
4 Long-term Sustainability and Resilience
The City shall:
a) consider resilience when making infrastructure asset investment decisions,
particularly capital renewal and maintenance; and
b) consider current and future socio-cultural, environmental, and economic
implications during Asset Management decision making.
5 Innovation and Continuous Improvement
The City shall:
a) seek innovative ways to develop Asset Management tools, techniques, and
solutions;
b) measure the effectiveness of its Asset Management processes and procedures
and adjust, as required;
c) incorporate continuous improvement principles into the Asset Management
process; and
d) determine and provide the necessary training in Asset Management to
Employees.
6 Investment Decision Making
The City shall develop and maintain plans for capital investment, including, but not limited to:
a) considering the Lifecycle Cost of an asset;
b) developing long-term capital investment strategies that enable rational and
transparent investment decisions; and
c) implementing processes to address the operational budget implications of
capital investments.
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Application
This policy applies to:
a) tangible capital asset types that deliver services of the City, including, but not limited to, water/sewer/stormwater
infrastructure, buildings, fleet, land, roads, sidewalks, bridges, retaining walls, landfill, general equipment, artwork,
and parks, and shall include assets of the St. John’s Transportation Commission (Metrobus); and
b) tangible capital assets owned by St. John’s Sports & Entertainment Ltd.
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Responsibilities
1 City Council shall be responsible for:
a) approving the Asset Management policy;
b) approving funding and resources to implement the Asset Management policy and associated requirements; and
c) articulating strategic direction for Asset Management and defining priorities.
2 The Deputy City Manager (DCM), Finance and Administration shall be responsible for:
a) ensuring the development and implementation of funding strategies to support implementation of this policy, based
on available resources; and
b) development, implementation, and monitoring of the Asset Management System.
3 DCMs and the City Manager shall be responsible for:
a) maintaining, based on available resources, the organizational capacity to support effective Asset Management,
including but not limited to, resourcing, staff competencies, business process, data, and integrated information
systems.
b) creating and maintaining an Asset Management governance structure and strategy to lead the development and
implementation of Asset Management practices across the organization.
4 Employees shall be responsible for:
a) complying with this policy and all other associated requirements.
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Definition
“Asset Management” (AM) means the coordinated activity of the City to realize value from its assets, including all activities involved in an asset’s lifecycle.
“Asset Management System” means a set of interrelated and interacting elements of an organization, including but not limited to an AM policy and AM objectives, and the processes needed to achieve those objectives.
“Employee” means any person employed by the City of St. John’s as a permanent, term, part-time, casual, contract, seasonal, temporary, or student worker.
“Levels of Service” means the parameters, or combinations of parameters, that reflect the social, political, environmental, and economic outcomes that the organization delivers and may include, but are not limited to, safety, customer satisfaction, quality, quantity, capacity, reliability, responsiveness, environmental acceptability, cost, and availability.
“Lifecycle Cost” means the sum of all recurring and one-time (non-recurring) costs over either the life span, or a specified period of an asset, and may include, but is not limited to, planning, design, construction, acquisition, operation, maintenance, rehabilitation, and disposal costs.
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Monitoring and Contravention
The Budget and Treasury Division shall monitor the application of the policy.
The Asset Management System shall be monitored and periodically reviewed, at least biennially, for effectiveness (including meeting service levels), regulatory compliance, and support of strategic objectives.
Any contravention of this policy and/or associated procedures shall be reported to the Department of Finance and Administration, Department of Human Resources, the Office of the City Solicitor, and/or the City Manager for further investigation and appropriate action, which may include, but is not limited to legal action and/or discipline, up to and including dismissal.
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Approvals
• Policy Sponsor: DCM, Finance and Administration
• Policy Writer: Policy Analyst; Program Manager, Asset Management
• Date of Approval from
o Corporate Policy Committee: February 6, 2020
o Senior Executive Committee: September 25, 2020
o Committee of the Whole: September 30, 2020
• Date of Approval from Council: October 13, 2020
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Review Period
Every three years.
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