Internal Policy. Policy Title: Applies to: Reference #

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1 Page 1 of 5 Internal Policy Policy Title: Applies to: Reference # All City employees ###-XXX-## Approved by: Dates: Total # of Pages Effective: 01-JUL-2017 Executive Director, Transportation & Last Review: n/a 5 Utilities Next Review: 01-APR-2018 Authority: Design Regina: The Official Community Plan Bylaw Purpose The purpose of this Policy is to articulate the City of Regina s (the City s) commitment regarding a comprehensive and best practice approach to asset management (AM). The principles outlined in this Policy support and advance Design Regina: The Official Community Plan Bylaw , while providing an additional level of guidance. The Asset Management (AM) Policy outlines the principles, approach and requirements for undertaking AM across the City of Regina in a structured and coordinated way. The AM Policy provides asset managers with an understanding of expected AM outcomes and direction for the development of AM strategies and objectives. This policy should be used to guide City Council, City staff and associated service providers in the way they plan, construct, operate, maintain and dispose of the City s assets. This Policy also provides guidance to service delivery with a focus on balancing performance, risk and cost to more effectively and efficiently meet regulatory obligations and to deliver on the needs and expectations of the community. The policy will guide City planning and operations by establishing levels of service and focusing appropriate resources on managing and investing in infrastructure. When the City follows the principles in this policy, the community (and individual residents/customers) benefit in many ways. Primarily, the City will more effectively and consistently meet the current and future needs of the community, by undertaking public outreach, reporting and monitoring of service delivery to ensure that service delivery is in line with established levels of service. The City will be able to demonstrate fiscal responsibility while delivering established levels of service, while minimizing overall cost of ownership. This will provide the community the greatest value for money. 2.0 Scope This Policy applies to all City of Regina employees. This Policy dictates that the City of Regina will aim to advance these guiding principles through all aspects of day-to-day work and through the entire asset lifecycle, from acquisition to disposal. The City shall comply with this Policy both

2 Page 2 of 5 internally and in its engagements with City service providers including developers, contractors and consultants. The City shall contribute towards continuous improvement in asset management practices at the City. 3.0 Definitions Asset: An asset is an item of value that derives its worth from its ability to be used to deliver a service or create a product. At the City, an asset can be tracked and managed as part of financial, operations, maintenance and capital planning business processes. Asset Management: Asset Management can be defined as an integrated business approach within an organization that minimizes the lifecycle costs of owning, operating and maintaining assets at an acceptable level of risk, while continuously delivering established levels of service for present and future residents. It is a way of doing business that ensures we invest our resources wisely over the long-term, by continually balancing performance, risk and expenditures in a way that ensures we meet levels of service and effectively and efficiently achieve our strategic plan. Levels of Service: The defined thresholds at which services are supplied to customers. They may refer to parameters or a combination of parameters that reflect regulatory, social, environmental and economic outcomes that the City has agreed to deliver to both internal and external customers. Risk: The effect of uncertainty on objectives. Risk events are events which may compromise the delivery of the City s strategic objectives or community services. 4.0 Policy The City will incorporate best practice asset management concepts and practices in the management of the community s assets to reliably deliver established levels of service at the lowest cost of ownership. The AM Policy provides the foundational guidance that ensures City staff are working on the right activities (and projects); at the right time; at the right costs, and for the right reasons. The Policy ensures that the City follows a standard approach to managing assets in line with the following guiding principles: Regulatory Compliant The City s first obligation is to comply with legislation, regulatory and statutory requirements and is committed to meeting these obligations. Community-Focused Policy and decision makers are made aware of the requirement to establish Levels of Service and apply these Levels of Service in shaping and delivering asset management activities. Stakeholders are made aware of the cost of managing the assets and maintaining agreed Levels of Service, along with the costs associated with potential changes to the Levels of Service. Whole Life Perspective

3 Page 3 of 5 A comprehensive approach to asset management is used that considers both the big picture and the combined impact of managing all aspects of the asset life cycle, including the full costs of acquiring; operating; maintaining; renewing, and retiring our assets. A whole life cost approach is used when selecting the most appropriate asset interventions, where all costs associated with the asset are taken into consideration and not just the initial capital cost. Asset management efforts are aligned with the following: o Design Regina: The Official Community Plan Bylaw ; o This policy; o Strategies and plans developed and implemented to support this policy; and o Other City policies, strategies and plans. Integrated Approach An integrated approach is adopted to manage assets around their life cycle, where the relevant City staff provide input at key stages of the life cycle to achieve the best solution possible for reducing overall cost of asset ownership. System-Focused A systemic approach is adopted where the assets are considered as a system and the system is then optimized, as opposed to individual assets. Robust, Repeatable & Defensible Decision Making A formal, consistent repeatable approach is adopted for the management of infrastructure assets, incorporating a methodical approach and providing a clear and justifiable audit trail for decisions and actions.

4 Page 4 of 5 Risk-Based Asset risks associated with attaining the agreed Levels of Service are managed by focusing resources, expenditures and priorities based upon risk and the corresponding cost/benefit. Assets are maintained proactively, focusing on critical assets, to prevent service failures where proven cost effective. Service failures are investigated with root cause analysis and improvements are made through investment or changes to operational procedures. Forward Looking & Sustainable New capital assets are constructed with due regard to their future operating costs. Assets are created that are resilient to climate and environmental change, while moving towards a low carbon service. Resources are allocated appropriately and decisions are made that take into account of Levels of Service; environment; society; regulatory; statutory requirements, and makes optimal trade-offs between competing factors such as performance, cost and risk over an asset s lifecycle. Due regard is given to the long-term stewardship of the assets. The capability of City staff is developed through business involvement, training and effective communication in a way that ensures they always have the necessary skills to manage assets effectively. Needs Driven Innovative Information from the City s asset management approach, including Levels of Service, performance and Capital Investment Plans, will be used to make recommendations on future Utility rates. Innovation is encouraged in the delivery of solutions that meet the corporate and asset management objectives in a more effective and sustainable way, thus driving continual improvements in value and service. 5.0 Roles & Responsibilities All City staff and in particular those responsible for managing City assets are responsible for compliance to this Policy. In the event that clarification or interpretation are needed, the main point of contact is the Asset Management Branch. The Asset Management Branch is also responsible for regular review and updates to this Policy. The City Manager, or their designate, will be responsible to develop, implement, direct, monitor, review and approve strategies, plans, programs and initiatives in support of this Policy. Financial budgets required to implement strategies, plans, programs and initiatives in support of this Policy will be subject to City Council approval. 6.0 Related Forms

5 Page 5 of 5 N/A 7.0 Reference Material The following Policies guide asset management practices for a defined scope and should align with this corporate AM Policy: Water and Sewer Utility (Approved by ELT) October 2012; Fleet (Approved by Fleet Governance Committee) November 2013; and Roadways (December 2013 Draft V1 Initial Release). Other reference material includes: Design Regina: The Official Community Plan Bylaw Gap Analysis and AM Strategy Report (February 2017 Asset Management Adoption Project 2016; AM Framework Report (February 2017) Asset Management Adoption Project 2016; Water and Sewer Utility Asset Management Improvement Strategy, October 2012; International Infrastructure Manual 3rd Edition; and ISO 55000/1/2 Asset Management Standard. 8.0 Revision History The City Manager or their designate, shall review and revise this policy at least once every four years. Such reviews may be done in conjunction with the property tax, utility rate reviews or following changes to the operating environment of any of the divisions in the City; or at such other times as the City Manager considers appropriate to ensure that: The policy remains relevant and consistent with the Design Regina: The Official Community Plan Bylaw and the City s strategic plan. The policy is continuously improved in light of developments in appropriate fields such as, technology, operations, asset management techniques, etc. (Re)-Approval Date Description of Change Required (y/n) 01-JUL-2017 Initial Release Yes