Asset Management Policy

The City of Kingston is committed to managing its assets in a manner that supports sustainable service delivery, financial responsibility, and community well-being. Through effective asset management practices, the City will ensure that assets are planned, acquired, operated, maintained, renewed, and disposed of in a way that maximizes value, manages risk, and aligns with the City’s strategic priorities and legislative requirements under O. Reg. 588/17.

The City of Kingston oversees a wide range of assets that provide essential services to the community. The City continually balances expenditure, services, and risk across diversified portfolios to provide the level and quality of services expected by residents, institutions, and businesses of Kingston. In response to the Infrastructure for Jobs and Prosperity Act, 2015 ("IJP Act") Section 6(2) that sets out principles for the provincial government to regulate asset management planning for municipalities in Ontario, the City of Kingston has developed an Asset Management Policy to govern the assets in its portfolio. The subsequent Ontario Regulation, O.Reg. 588/17, "Asset Management Planning for Municipal Infrastructure" prescribes the requirements to be met and/or satisfied by municipalities when undertaking asset management.

Clause 3(1) of the regulation states, "Every municipality shall prepare a strategic asset management policy" and Clause 4. states, "Every municipality shall prepare its first strategic asset management policy by July 1, 2019, and shall review and, if necessary, update it at least every five years."

Asset Management is a critical process used in decision-making. It helps municipalities care for the infrastructure that delivers valuable services to the community in a way that considers the service needs of the community, manages risks and opportunities, and utilizes resources wisely. Supported by the City’s Corporate Asset Management Department and Asset Management Steering Committee, the City is committed to documenting this approach and defining this management system with the required asset management strategy to guide processes, meet regulatory requirements, improve efficiency, and provide strong governance and accountability.

This Asset Management Policy is specific to those assets managed and owned by the City of Kingston. It should also be read in conjunction with the Utilities Kingston Management Policy for City owned assets that are operated and maintained by Utilities Kingston.

The asset management policy aims to:

• Set expectations with Council, the Public, and other stakeholders.
• Provide leadership and commitment to asset management.
• Establish responsible governance for the practice of asset management.
• Document commitments to asset management and the continuous improvement of asset management practices.
• Provide transparency and demonstrate to stakeholders the legitimacy of decision-making processes by combining strategic plans, budgets, service levels, and risks.
• Define a set of principles that guide the City’s development of an asset management program and to formally link asset management to organizational strategic objectives and plans.

4.1 Asset Management Vision

To manage municipal infrastructure assets through a systematic, evidence-based, and financially sustainable approach that delivers Council-approved service levels efficiently and proactively while aligning with community priorities, climate resilience, and the requirements of O. Reg. 588/17 to support long-term planning and sustainable growth.

4.2 Asset Management Objectives

Asset Management allows the City to:

• Comply with legislation and regulations – including O. Reg. 588/17 and the Ontario Infrastructure for Jobs and Prosperity Act, 2015 (IJP Act).
• Deliver Council-approved service levels that balance community expectations, risk, and financial capacity.
• Optimize asset lifecycles through proactive maintenance, renewal, and replacement strategies.
• Integrate planning and decision-making across budgeting, risk management, and service delivery.
• Incorporate climate resilience and natural asset management into long-term planning.
• Enhance transparency, accountability, and stakeholder engagement in asset-related decisions.
• Support continuous improvement of asset data, tools, and organizational knowledge.

This Asset Management Policy will be applied to all physical assets owned by the City of Kingston that provide services to residents, businesses, institutions and visitors.

The City of Kingston is responsible for delivering a diverse range of critical municipal services through the support of over $8.3 billion in assets. These assets include transportation infrastructure such as roads, bridges, sidewalks, traffic control systems, bus shelters, and buses; City parks and recreational facilities; municipal buildings; natural assets; fleet; information technology systems and many more. Assets related to agencies and boards such as the Kingston Frontenac Public Library and Kingston Police Services are also included within the City’s Asset Management plans. Together, these assets enable the City to provide essential services that enhance the safety, livability, and sustainability of the community. Compiling, confirming, and maintaining the asset register is a significant component of the resulting Asset Management Plan.

As noted in the Context section of this document, Utilities Kingston operates and maintains multiple city-owned assets such as water and sewage systems, natural gas assets, street lighting, traffic signals, and hot water tanks, including related facilities and its supporting infrastructure (such as valves, hydrants, and service connections). In this capacity, they have developed an independent Asset Management Policy that was adopted by Council on July 11, 2023. The City works in conjunction with Utilities Kingston to ensure a coordinated approach to asset management planning which prioritizes investment in assets while minimizing risk and complying with regulations. The asset management plans report on those assets meeting the capitalization threshold identified in the Tangible Capital Assets Policy.

The City will collaborate where possible with adjacent municipalities to operate and maintain boundary roads and promote the principles outlined in this policy.

The asset management process is designed to align with and complement existing corporate processes such as budgeting and strategic planning. The intent of the process is to provide a long-term perspective, focused on the integral challenges associated with the assets that support the achievement of the City’s strategies and objectives.

6.1 Governance

• Create and maintain an asset management governance structure to lead the development of asset management tools and practices and oversee their application across the organization.
• Assign clear roles and responsibilities, including Council and executive leadership.
• Promote cross-departmental collaboration and oversight.

6.2 Asset Management Strategy

Adopt an asset management strategy to:

• Ensure compliance with O Reg 588/17: Asset Management Planning for Municipal Infrastructure.
• Implement industry-recognized asset management protocols, document and consistently adhere to them.
• Define levels of service that balance customer expectations with risks, affordability, and time constraints.
• Establish standardized criteria for assessing asset condition and performance, using a rating scale from 1 to 5: 1 – Very Good, 2 – Good, 3 – Fair, 4 – Poor, 5 – Very Poor.
• Ensure asset management recognizes and adapts to changes in the City’s demographics that may alter customer expectations and needs.
• Link asset management decisions to budget and financial planning to optimize resource use and maintain service levels.
• Adopt risk-based decision-making processes that consider the likelihood of asset failure and the associated consequences to safety and service levels.

• Acquire knowledge and skills in asset management in accordance with recognized competency frameworks.
• Integrate and adopt the evaluation of total lifecycle costs within the decision-making process for the allocation of investments across assets.
• Monitor asset performance and the effectiveness of asset management practices with a perspective of continuous improvement.

6.3 Climate Resilience

• Strive, wherever possible, to exceed minimum legislated solutions to improve resilience to social, environmental, and economic changes.
• Integrate climate vulnerability assessments and adaptation strategies.
• Apply climate change mitigation and resiliency lenses to lifecycle activities.
• Incorporate climate impacts and growth projections into planning.

6.4 Financial Integration

• Remain focused on obtaining external grant funding and service delivery opportunities to meet infrastructure investment needs.
• Integrate asset management into annual budgets and long-term financial plans.
• Leverage asset condition data to highlight funding gaps and inform financial strategies.
• Link infrastructure investment decisions to service delivery goals.

6.5 Innovation and Technology

• Remain informed of asset management best practices.
• Explore technology/solutions that help integrate data across the City.
• Define scope of Request for Proposal (RFPs) to include requirements that data be uploaded into City asset databases for planning purposes with the goal of optimizing life expectancy i.e. manufacturers recommended general maintenance, lifecycle maintenance requirements, and estimated replacement date based on industry standards.
• Use performance-based planning tools and cross-disciplinary approaches.

6.6 Public Engagement and Transparency

• Inform Council of the state of the infrastructure and expected trends as part of long-term financial plan submissions.
• Provide opportunities for public input into asset management planning.
• Enhance transparency through clear reporting and performance tracking.
• Conduct annual reviews to ensure alignment with strategic goals.

6.7 Strategic Alignment

• Align asset management with strategic plans, official plans, and climate action goals.
• Ensure decisions to support broader municipal objectives and growth management.
• Coordinate planning with upper-tier and neighboring municipalities.

The policy requires commitment from all stakeholders. The following provides the roles of the various stakeholders as it relates to Asset Management planning for the City of Kingston.

7.1 Council is responsible for:

• Adoption and periodic review of the Asset Management policy and plans.
• Setting the vision, service mandates, and management policies.
• Ensuring commitment to a financial strategy that enables the asset management plan to deliver service mandates that balance customer expectations with risk, affordability, and time constraints.
• Fostering informed dialogue with the public to enhance transparency.
• Approving Levels of Service (LOS) for all Asset categories except those that are governed by regulations like the National Fire Protection Agency (NFPA) Standards for Fire Apparatus and Equipment, etc.
• Approving funding for both capital and operating budgets associated with Asset Management through the annual budget.

7.2 The Corporate Management Team will:

• Champion the asset management strategy within the organization.
• Ensure department resources are available along with necessary capabilities to support the elements and practices of the asset management system.
• Provide executive sponsorship and support for the development and implementation of asset management initiatives.

7.3 Executive Lead: Director, Corporate Asset Management and Fleet

The Director will assume the role of Executive Lead. The Executive Lead will:

• Coordinate and advise on asset management initiatives within the organization.
• Maintain support for asset management through annual updates to CMT on progress in the implementation of the asset management policy and strategy across the organization.
• Coordinate the development of an asset management charter to ensure consistency in asset management practices throughout all departments of the City of Kingston.
• Review and revise the charter as necessary with department leads.
• Provide directions to the Asset Management team in developing the Asset Management Policy, plans, and strategies.
• Chair and lead the Asset Management Steering Committee.
• Support education and training to build capability and promote continuous improvement in asset management processes.

7.4 The Directors of the City of Kingston will:

• Support the Executive Lead by ensuring human capital is made available to implement the asset management system by building resources into operating budgets.
• Support the Executive Lead in the process of developing a consistent corporate asset management system and process across the City of Kingston.
• Adopt an asset management strategy specific to their department which aligns with the established asset management charter.
• Align with the financial strategies of the City of Kingston and those directed by Council.
• Support Asset Management education and training required to build competency within the respective department.

7.5 The service area leads will:

• Adhere to the asset management system by providing data and information on assets and services, participating in risk management and complete the required analyses to ensure an up-to-date asset management system.

7.6 The Asset Management Steering Committee members will:

• Provide strategic oversight and guidance for the development, implementation, and continuous improvement of the corporate asset management system.
• Being Asset Management ambassadors.
• Monitor progress on asset management initiatives and ensure accountability for deliverables across departments.
• Review and endorse updates to the asset management policy, strategy, and charter before submission to Council.
• Support resource planning by identifying organizational needs for training, tools, and systems to enhance asset management capabilities.
• Evaluate risks and opportunities related to asset performance, lifecycle costs, and service delivery to inform decision-making.
• Provide technology solution recommendations and make decisions related to

7.7 The Corporate Asset Management Team will:

• Guide departments on asset management principles, practices, and standards.
• Develop and maintain asset management policies, strategies, and plans under the guidance of the executive lead.
• Help achieve asset management goals and objectives through collaboration, training, and technical expertise throughout the organization.
• Facilitate interdepartmental collaboration to manage shared assets and ensure consistent practices.
• Promote continuous improvement and innovation in asset management.
• Support the Steering Committee, Executive Lead, and Directors with technical input and progress updates.
• Stay current with industry trends, standards, and technologies to enhance the City's asset management maturity.
• Lead pilot projects and innovation initiatives to test and refine asset management approaches.
• Oversee the management and continuous improvement of the Enterprise Asset Management (EAM) system, Open Gov (formerly Cartegraph), and support corporate users in achieving asset management objectives.

7.8 City Staff will:

• Embrace new business processes and technology tools required for effective asset management.
• Participate where required in teams and meetings as part of Corporate Asset Management process.
• Update Asset Register data records where applicable including inspection records and data.
• Ensure compliance with corporate asset management policies, standards, and practices.

To effectively use asset management to support the achievement of the City’s organizational goals, administration should ensure the following principles are within the Asset Management System:

Asset Management systems and tools.

Holistic – Deploy a comprehensive and coordinated approach that looks at the "big picture" (i.e. the combined implications of managing all aspects rather than a compartmental approach). This includes the functional interdependencies and contributions of assets within asset systems and the different management of assets across all lifecycle phases.

Systematic – Implement a methodical approach (i.e. formal, repeatable, and consistent) to the management of assets.

Systemic – Generate asset investment decisions in an asset system context, not just to optimize the individual asset itself.

Risk-based – Manage asset risk associated with attaining levels of service and focusing resources, expenditures, and priorities based on risk and associated cost/benefit.

Optimal – Make asset investment decisions based on trade-offs between competing factors of service level (including asset performance), risk and cost.

Sustainable – Take a long-term, lifecycle-based approach in estimating asset investment and activities, thus developing effective asset management strategies for the long term.

Integrated – Coordinate the above principles to ensure the delivery of justified services and well-defined outcomes.

Aligned – Ensure that the asset management system complements the strategic objectives of the City, as well as other key business systems, legislation, and regulation.

9.1 Asset Management Plans will be developed for all infrastructure assets owned and or controlled by the City of Kingston. These plans will be developed in accordance with O. Reg 588/17 - Asset Management Planning for Municipal Infrastructure.

9.2 Asset Management plans will incorporate all assets that meet the capitalization threshold as outlined in the City’s Tangible Capital Asset Policy as well as certain assets that may fall below the capitalization threshold, that based upon professional judgement are critical to service delivery.

9.3 Asset Management plans will be updated in accordance with dates outlined in the Regulation, and at least every five years thereafter.

10.1 The City will implement continuous improvement protocols and seek to adopt best practices regarding asset management planning including:

1. Comprehensive and up-to-date Asset Register data
2. Condition Assessment Standards and Policies
3. Risk models
4. Lifecycle Management strategies and procedures
5. Financial Strategy Development
6. Service Level and Performance Monitoring

10.2 The City will develop and implement appropriate performance metrics and reporting tools to report and communicate the current state of asset management to Council and the community.

10.3 Asset management plans will be integrated into the City’s annual budget process.

The benefits of compliance with the policy include but are not limited to:

• Maintaining alignment with the City’s strategic objectives.
• Maintaining service area investment priorities, the coordination of delivery of services, corporate efficiencies, and expenditure optimization.
• Capital planning that is consistent with the needs identified in the asset management plans maintains the alignment of financial, infrastructure, and land use goals and objectives.
• Optimal planning for growth, maintenance, and replacement of existing assets as well as the development of new assets, maintains the ability to meet expected levels of service.
• Timely investment in assets maintains the optimal lifecycle, reliability, safety, security of the assets, and service delivery.
• Minimize risks to users associated with asset failure.

In the policy the following definitions are used:

Asset  means an item, thing or entity that has potential or actual value to an organization. The value can be tangible or intangible, financial or non-financial, and includes consideration of risks and liabilities.

Asset Management  means planned actions and coordinated activities of an organization to optimally and sustainably manage its assets that will enable the assets to provide the desired level of service in sustainable way, while managing the risk at the lowest lifecycle cost. It encompasses all asset types, tangible or intangible, individual components or complex systems, and all activities involved in the assets lifecycle form

Asset Management Plan  means a strategic document (long term) that states how a group of assets are to be managed over time. The plan describes the characteristics and condition of infrastructure assets, the levels of service expected from them, planned actions to ensure the assets are providing the expected level of service, and financing strategies to implement the planned actions.

Asset Management System means a management system or framework for asset management. It is a standard management approach outlining the linkages between key elements and practices of an effective asset management program. It is a set of interrelated or interacting practices and techniques of an organization enabling the management of assets at various levels from the operational level up to where integration across asset systems and networks is required.

Asset Management Strategy means a high level action plan that gives effect to an organization’s Asset Management Policy.

Capitalization Threshold  means the value of the infrastructure asset at or above which the City of Kingston will capitalize the value of it and below which it will expense the value of it.

Condition  means the physical state of an asset.

Infrastructure  means the network of physical assets (and natural assets) developed and/or used by the City to support its social, cultural, and economic activities and services.

Level of Service  means the parameters or combination of parameters that reflect the social, political, economic, and environmental outcomes the organization delivers.

Service statements describe the outputs or objectives of the organization’s activities that are intended to be delivered to customers.

Lifecycle  means the time interval that commences with the identification of the need for an asset and terminates with the disposal of the asset.

Performance Monitoring means continuous or periodic quantitative and qualitative assessments of the actual performance compared to specific objectives, targets or standards.

Risk  means the effect of uncertainty on objectives. Risk events are events which may compromise the delivery of the organization’s strategic objectives.

Service/Useful Life  means the period over which an asset or component is expected to be available for use.

This policy will be reviewed at a minimum every five (5) years from its effective date.

Include a list of approval authority