By Leanne Brannigan, Acting Director, Enterprise Asset Management, Region of Peel (ON)
How do you “do” asset management… and where do you start?
The simple answers are, “Just do it”, and “Start from wherever you are”!
Every municipality is at a different place in their journey, and that’s okay. They have differing levels of asset management maturity, differing data and information and different levels of organizational buy in and support. The best tip is to start where you are and reach out to your local communities of practice (yes they exist across the country, I am most familiar with Asset Management Ontario), the Canadian Network of Asset Managers, the Federation of Canadian Municipalities or any of the numerous asset management training partners across the country. Many have free tools to figure out where you are, your best next steps to gap fill, and tools to help you along that journey.
At Peel, we have been on our asset management journey since 2007 (Journey is documented on page 27 & 28 of our EAMP that I have added for reference at the end of this write up). Our leadership recognized that the Region’s infrastructure is necessary to provide service levels that the public expects, achieve Term of Council Priorities, and realize the vision of the Region of Peel as a Community for Life. This realization of our senior leadership that using tangible capital asset accounting (TCAA) data is a backwards looking exercise, and that asset management allowed us to look forward to ensure that we continued to meet the levels of service that our community expected was foundational for our journey. Maintaining existing assets in a state of good repair and building new infrastructure which meets current and future needs is critical to the success of the Region of Peel.
Across the organization we had data and asset information gaps, and the data that we did have was a different levels of maturity, age, accuracy and in different systems and sources. That did not stop us from using what we did have to compile and show evidence of the necessity of an infrastructure levy to support future infrastructure and service delivery and to help establish intergenerational equity. The ones using the infrastructure should be the ones paying for it. Council established our first infrastructure levy in 2008 based on the work that our asset management team did and our journey has continued from there.
Establishing an asset management team soon followed and Peel developed a risk-based approach to asset management. This approach is integrated with the Region’s Strategic Plan and the Long Term Financial Planning Strategy and supports the desired service outcomes and the long term goal of a Community for Life. This did not happen over night and was a slow progression as our maturity developed and we built confidence with the Program and service delivery areas, senior leadership and Council
Today, Enterprise Asset Management is an integral part of the Region of Peel’s strategic and long-term planning practices. It focuses on developing sustainable plans to maintain the infrastructure over a planning horizon that can be as long as 100 years. Guided by the principle of continuous improvement, these plans support Council’s level of service targets and long-term financial strategies. The Region’s Asset Management program is guided by industry best practice, as well as regulatory requirements. The program is continuously evolving to leverage opportunities and address challenges.
The Enterprise Asset Management Plan uses lifecycle models to forecast infrastructure condition, reinvestment needs, and asset related risks to service. The models are specific to the Region’s assets and use the most recently available asset information, allowing us to regenerate risks and recommendations multiple times per year to support Capital Planning, and support annual Public issuing of our Infrastructure Status and Outlook Report which is a report card style report, as well as our more comprehensive Enterprise Asset Management Plan.
However, despite our accomplishments and being embedded in the organization, you are never done in asset management. To support the Region’s approximately $43 Billion of infrastructure we are committed to being a strong steward of the public’s infrastructure assets and are on a continuous improvement journey to ensure continued provision of high quality and affordable municipal services to the Peel community. We are currently supporting the organizational implementation of an Enterprise Asset Management System, development and improvement of decision support systems, integration of climate change adaptation and mitigation into our risk analysis and recommendations and have initiated work on a Diversity, Equity and Inclusion Strategy for integration into asset management considerations. It is a journey that makes asset management an exciting, strategic and valuable part of the municipal framework and an enviable profession to be a part of.
Enterprise Asset Management Road Map
Enterprise Asset Management is an integral part of the Region of Peel’s strategic and long-term planning practices. Introduced in 2007, the program focuses on developing sustainable plans to maintain the infrastructure over a planning horizon that can be as long as 100 years. Guided by the principle of continuous improvement, these plans support Council’s level of service targets and long-term financial strategies. The Region’s Asset Management program is guided by industry best practice, as well as regulatory requirements. The program is continuously evolving to leverage opportunities and address challenges.
Although the Region of Peel’s long-term asset planning program has been in place since 2007, it is still good practice to review the program to accommodate emerging trends. In 2017, the Region retained an independent third-party consultant to initiate a comprehensive asset management program review. The objective of the review was to align the Region’s asset management practices with industry best practices. As a result of the review, over the next several years several initiatives have been proposed. These initiatives will address emerging trends as well as focus on identified gaps.
Changes since the 2018 Enterprise Asset Management Plan
- Enterprise Asset Management (EAM) division established within the Finance department.
- The Region’s Asset Management Policy has been updated to meet the new Ontario Regulation 588/17.
- Assets supporting the Affordable Housing service managed by Peel Housing Corporation and Police service managed by Peel Police are incorporated into Asset Management reporting.
- Operations and Maintenance costs incorporated into Service areas for full lifecycle costing considerations.
Improvements for the Future
- Staff is undertaking many technical studies and condition assessments to improve knowledge of the Region’s infrastructure conditions.
- Asset Management planning process improvements are being made across several services to improve investment forecasting and to manage risks to Regional services.
- An Enterprise Asset Management System will be introduced to support asset management functions across the organization.
- Assets supporting Peel Information Technology Infrastructure and Green Infrastructure will be added to the Enterprise Asset Management Plan in the 2024 reporting cycle.
1 In accordance with ISO (International Organization for Standardization) 55000
Related Articles
Additional information about Asset Management can be found in the following articles by the Region of Peel.
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