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HomeMy WebLinkAboutFND-020-20Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: June 22, 2020 Report Number: FND-020-20 Submitted By: Trevor Pinn, Director of Finance/Treasurer Reviewed By: Andrew C. Allison, CAO File Number: Resolution#: By-law Number: Report Subject: FCM – Asset Management Grant Opportunity Recommendations: 1.That Report FND-020-20 be received; and 2.That Council authorize staff to complete the application for funding for Municipal Asset Management Program. Municipality of Clarington Page 2 Report FND-020-20 1. Legislative Requirements 1.1. Under Ontario Regulation 588/17 (Asset Management Planning for Municipal Infrastructure), Council is required to approve an Asset Management Plan (“AMP”) for Core Assets on or before July 1, 2021. 1.2. Core assets for the Municipality include all roads, bridges, culverts, storm water management ponds and all storm water conduit and structures. 1.3. The adoption of the AMP is the second requirement in a staged process of compliance with O. Reg. 588/17. 2. AMP Requirements for Core Assets 2.1. Municipalities must report on the current level of service being provided determined by the mandated technical and qualitative metrics prescribed by the regulation. 2.2. Clarington must provide an analysis of the assets which contains the assets; attributes, age, condition and replacement values. 2.3. The Municipality’s current performance of each asset category, determined in accordance with the performance measures established by the Municipality, such as those that would measure operating efficiency for all core assets. 2.4. 2.4 Clarington must calculate the lifecycle activities for each asset category that would need to be undertaken to maintain current levels of service for the next 10 years and the costs of providing those activities based on: i. The full lifecycle of the assets ii. The options for which lifecycle activities could potentially be undertaken to maintain current LOS iii. The risks associated with the options referred in (ii). Report Overview The Province of Ontario’s adopted asset management plan regulations (O. Reg 588/17) set out four milestones for compliance. The first milestone was the adoption of a Strategic Asset Management Policy which Council completed with resolution #GG-218-19. The next milestone is the adoption of an Asset Management Plan of the Municipality’s core assets by July 1,, 2021. The Finance Department is seeking approval to submit an application to FCM for a grant to aid in the development of Clarington’s Asset Management Plan. Municipality of Clarington Page 3 Report FND-020-20 iv. The lifecycle activities referred in (ii) that can be undertaken for the lowest cost to maintain the current LOS. 2.5. Municipalities need to examine the impact that increases in demand caused by growth have on the current levels of service. The AMP must include the capital and significant operating expenditures related to the lifecycle activities required to maintain the current levels of service. It must also include the associated capital and operating costs related to new construction and upgrading of existing municipal infrastructure assets 3. Asset Management Grant Opportunity 3.1. The Federation of Canadian Municipalities (FCM) has announced a grant opportunity for Canadian municipalities to help strengthen their asset management plans. 3.2. The FCM grant will fund a broad spectrum of asset management-related activities. Asset management assessments Development of asset management plans, policies and strategies Asset-related data collection and reporting Asset management training and organizational development Knowledge transfer around asset management 3.3. The FCM grant allows Municipalities to apply for a maximum project cost of $50,000, where as FCM will contribute 80% of the total project cost. 3.4. If the application is successful, that the remaining 20% of project cost to be funded from the Municipal Capital Works reserve fund. 4. Concurrence This report has been reviewed by the Acting Director of Engineering and the Acting Director of Operations who concur with the recommendations. 5. Conclusion It is respectfully recommended that Council gives approval for staff to apply for a grant opportunity from the Federation of Canadian Municipalities Municipal Asset Management Program for development of Clarington’s asset management plan and to fund the municipal share from the Municipal Capital Works Reserve Fund. Staff Contact: Erika Watson, Capital Asset Manager, 905-623-3379 ex.2607 or ewatson@clarington.net