1 Report to Rapport au: Finance and Economic

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Report to
Rapport au:
Finance and Economic Development Committee
Comité des finances et du développement économique
03 Nov 2015 / le 03 nov. 2015
and Council
et au Conseil
12 November 2015 / 12 novembre 2015
Submitted on October 27, 2015
Soumis le 27 octobre 2015
Submitted by
Soumis par:
John L. Moser, Acting Deputy City Manager, Planning and Infrastructure Portfolio/
Directeur municipal adjoint intérim, Portefeuille de l'Urbanisme et Infrastructure
Contact Person
Personne ressource:
Wayne Newell, General Manager, Infrastructure Services Department/
directeur général des Services d’infrastructure
613-580-2424 x16002, [email protected]
Report Author: Kelly Martin, Manager, Asset Management, Infrastructure
Services/ Gestionnaire, Gestion des biens Direction des services d'infrastructure
Ward: City Wide / À l’échelle de la ville (0) File Number: ACS2015-PAI-INF-0006
SUBJECT: Leadership in Asset Management Program
OBJET:
Programme de leadership en gestion des biens
REPORT RECOMMENDATIONS
That the Finance and Economic Development Committee recommend Council:
1. Authorize the City of Ottawa to enter into a funding agreement with the
Federation of Canadian Municipalities for the Green Municipal Fund Leadership in Asset Management Program as described in this report; and
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2. Delegate authority to the Deputy City Manager, Planning and Infrastructure, to
finalize and execute the agreement, with the concurrence of the City Clerk and
Solicitor.
RECOMMANDATIONS DU RAPPORT
Que le Comité des finances et du développement économique recommande au
Conseil :
1. d’autoriser la Ville d’Ottawa à conclure une entente de financement avec la
Fédération canadienne des municipalités pour le Fonds municipal vert –
Programme de leadership en gestion des biens, comme le décrit le présent
rapport;
2. de déléguer le pouvoir au directeur municipal adjoint, Urbanisme et
Infrastructure, de conclure et de mettre en œuvre l’entente, avec l’accord du
greffier municipal et chef du contentieux.
BACKGROUND
The Federation of Canadian Municipalities (FCM) administers a Green Municipal Fund
(GMF) to respond to evolving municipal sustainability needs and priorities. Through
GMF, FCM supports initiatives that demonstrate an innovative solution or approach to a
municipal environmental issue, and those that can generate new lessons and models
for municipalities in all regions of Canada. These initiatives offer significant
environmental benefits, strong business cases and social advantages, and are
complemented by local policies and measurement systems.
In 2015, the FCM launched the Leadership in Asset Management Program (LAMP)
under the GMF. A description of the GMF and LAMP is available on their website (link).
As part of LAMP, participating municipalities can access GMF grants to strengthen
organizational adoption of asset management and better integrate environmental and
sustainability considerations in these priority areas:

Asset management policy, strategy, and governance


Linking assets to services and outcomes (levels of service)
Risk assessment

Lifecycle management
LAMP is an 18 to 36 month GMF funded peer learning program. As part of LAMP,
participating municipalities can apply for grants of up to $175,000. Participating
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municipalities will work together to achieve a high degree of collaboration and peer
learning.
In 2012, Council endorsed the Comprehensive Asset Management (CAM) Program
(link) and approved funding for staff to pursue different initiatives in support of Asset
Management. At that time, Council also specifically endorsed a motion to “Approve
working with the Association of Municipalities of Ontario (AMO) and the Federation of
Canadian Municipalities (FCM) to achieve long-range infrastructure funding for
municipalities”.
Infrastructure Services submitted an application to advance Life Cycle Management
practices through the City’s CAM Program (Documents 1 and 2).
Ottawa’s application was one of 13 community applications from across the country
approved by FCM’s Board of Directors on September 25, 2015.
Ottawa is approved for a $120,000 grant. One of the requirements to receive the grant
is for the City to match the funds for the project. Funds for the City’s contribution are
approved through the CAM Program to provide the financial resources to guide the
organization forward in its Asset Management practices.
DISCUSSION
The City of Ottawa is committed to evolving its Asset Management Program. Over the
last decade, the City has made significant progress and continues to refine practices,
processes and adoption of an asset management system. Some of the milestones
include:

Established corporate Asset Management Working Group; 2006


Created a Strategic Asset Management Unit with a corporate mandate; 2008
Adopted a formal asset management governance structure; 2010

Completed a detailed assessment of the state of asset management at the City;
2011

Council received and approved the City’s Comprehensive Asset Management
Program, CAM Policy and CAM Strategy; 2012
Released the first State Of Asset Report (SOAR); 2012


Recognized by peer municipalities with the Canadian Network of Asset
Manager’s Tereo Award that recognizes excellence in developing and
implementing asset management approaches and significant improvements in
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business performance through the use of asset management tools and
techniques or approaches; 2013
The City has been actively working on developing its Levels of Service (LOS)
Framework, improving its Capital Investment Prioritisation approach, as well as refining
a Risk Framework that is robust, repeatable, and captures the social, economic and
environmental impacts of asset failures.
By participating in the LAMP initiative, Ottawa can both benefit from, and contribute to,
the general knowledge and practices of peers nationwide.
LAMP Phase 1
Phase 1 will be used to refresh existing Asset Management documents and the City will
act as a mentor to other municipalities that are not as advanced in establishing
foundational pieces. Forming partnerships with other municipalities provides valuable
insight on lessons learned and adopted practices.
LAMP Phase 2
Phase 2 provides an opportunity to leverage LAMP funding to undertake more
advanced CAM implementations. In Ottawa’s case, this provides an opportunity to
strengthen Life Cycle Management practices and the connections to decision making
processes (Document 1). It provides the opportunity to advance components of the
city’s existing CAM roadmap and benefit from the learning and collaborative contribution
of other municipalities.
Funding
Funding for the City’s CAM Program is secured as a Council endorsed strategic
initiative in the last term of Council and again for this term of Council. Capital order
906531- Comprehensive Asset Management was established to assist with citywide
CAM implementations and provides the city’s matching funds for the project.
RURAL IMPLICATIONS
This is a city wide report.
CONSULTATION
There are no formal consultation requirements for this initiative.
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COMMENTS BY THE WARD COUNCILLOR(S)
This is a city wide report.
LEGAL IMPLICATIONS
There are no legal impediments to approving the recommendations in this report.
RISK MANAGEMENT IMPLICATIONS
There are no risk management implications with this report.
ASSET MANAGEMENT IMPLICATIONS
Comprehensive Asset Management (CAM) is an integrated business approach
involving planning, finance, engineering, maintenance and operations geared towards
effectively managing existing and new infrastructure to maximize benefits, reduce risk
and provide safe and reliable levels of service to community users. This is
accomplished in a socially, culturally, environmentally and economically conscious
manner.
The recommendations documented in this report are consistent with the City’s CAM
Program (link) objectives. The implementation of the CAM program results in timely
decisions that minimize lifecycle costs and ensure the long-term affordability of assets.
To fulfill its obligation to deliver quality services to the community, the City must ensure
that assets supporting City services are managed in a way that balances service levels,
risk and affordability.
The FCM grant will provide valuable funding for the CAM Program and will advance the
practices and processes of managing infrastructure and other city assets. This project
provides an opportunity for the City of Ottawa to continue to be amongst the leading
municipalities on the asset management front in Canada.
FINANCIAL IMPLICATIONS
Funding for the City’s matching contribution is available within 906531 Comprehensive
Asset Management. Pending execution of the FCM agreement, this account will be
adjusted to reflect the $120,000 in increased expenditure authority, funded by FCM
grant revenues.
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ACCESSIBILITY IMPACTS
Accessibility is an important consideration for the City of Ottawa. Every effort will be
made to ensure that the recommendations in this report are inclusive.
TERM OF COUNCIL PRIORITIES
The recommendations are consistent with the following City Council objective:
GP2 – Advance management oversight through tools and processes that support
accountability and transparency. Strategic Initiative 58 – Comprehensive Asset
Management
SUPPORTING DOCUMENTATION
Document 1 – City of Ottawa – FCM LAMP Phase 2 Project Proposal
Document 2 – Ottawa Submissions
DISPOSITION
Upon Council’s approval, Infrastructure Services will work with Legal Services and FCM
to finalize a grant agreement, to be executed by the Deputy City Manager, Planning and
Infrastructure on behalf of the City, with the concurrence of the City Clerk and Solicitor.
Infrastructure Services will undertake the project under the CAM program with cross
departmental input through the CAM steering committee.