Municipal Asset Management

Municipalities are owners and stewards of millions of dollars of assets that residents and visitors use on a daily basis. These assets are utilized daily by residents from the time that they awake until the time that they go to sleep. From being able to obtain water from their tap and having it be carried away from their home and treated prior to being put back into the natural environment, or being able to drive to work in the morning on roadway with little impact from weather conditions or walking along a sidewalk to get your mail or having security and safety as a result of street lights. These core assets make everyday life easier and more bearable.

By their nature, municipal assets generally have a long service life provided they are well maintained and rehabilitated at the appropriate time. Municipalities are stewards of municipal infrastructure for not only the residents of today but for our children and grandchildren.

Globally, Canada has lagged behind other Countries on the requirement of having formalized Asset Management Plans for municipally owned assets. In 2019 the Province of Ontario passed O.Reg. 588/17 – Asset Management Planning for Municipal Infrastructure. This regulation compels municipalities to have Detailed Asset Management Plans (DAMPs) for all municipally owned infrastructure. While the Municipality of Central Elgin has practiced the principals of Asset Management informally since 1998 the new provincial requirement will allow Central Elgin to mature our philosophy on Asset Management and formalize past practices. These practices and principals include but are not limited to:

• Life Cycle Costing when determining what asset to acquire or how to construct an asset.
• Whole Life Costing for assets. The initial cost, the cost of acquisition is typically the last cost when looking at an asset through its life cycle. Whole Life costs include acquisition, operations, maintenance and disposal of the asset.
• Risk. By owning and providing assets to residents and the public a municipality takes on risk on behalf of all residents. The risks that an asset brings is constantly being reviewed and accommodated by the municipality.
• Performance. Municipal assets by their nature have a long service life. It is incumbent on municipalities to select and maintain assets in such a manner so as to provide optimal performance for as long as possible.

As part of this process the municipality will be developing long range Detailed Asset Management Plans for all core assets (Roads and Bridges, Sanitary Sewer, Storm Sewer and Potable Water) by 2021. These DAMPs will assist in guiding Council and staff to set long term programs for acquisition, operation, maintenance and replacement of municipal assets.