The Gas Tax Agreement and Asset Management The Integration of Asset Management into Funding Programs Asset Management: Why it’s more critical now than ever before FMI & GFOABC Workshop, February 3, 2015

Presentation Overview Historical Context Asset Management in the GTF The Framework Local Government Commitments

On December 8, 2005, the meeting of the NRTSI was held in Calgary, Alberta where committees were created to address issues relating to: – Infrastructure financing – Innovation – Smaller community infrastructure – National asset management

National Asset Management Working Group Asset Management is an integrated business approach involving planning, finance, engineering and operations to effectively manage existing and new infrastructure to maximize benefits, reduce risk and provide satisfactory levels of service to community users in a socially, environmentally and economically sustainable manner

PSAB 3150 Ministry of Community Services (now MCSCD), working with GFOABC, to prepare for implementation of PSAB 3150 in Ministry interested in leveraging work being done with PSAB 3150 with asset management. Integration of asset management into funding programs

Integration of Asset Management within Senior Government Funding Programs 1990s Funding often used to deal with crisis (i.e. reaction to poor planning & risk management) 2000Shift towards supporting integrated resource management and increased local government accountability 2007Province supports sustainable infrastructure planning and management  Long-range Planning  Asset Management  Appropriate User Fees  Financial Independence

Asset Management BC

The Gas Tax Agreement Annex B, section 7 of the GTA states; “The Parties agree that strengthening Local Government capacity to undertake Asset Management is integral to building strong cities, communities and regions, and agree to support Asset Management practices in all Local Government jurisdictions during the term of the Agreement. Schedule F (Asset Management) provides more details on the approach agreed upon by the Parties.”

The Gas Tax Agreement Schedule F – Asset Management ; Recognize the varying capacities of local governments and the range of ongoing asset management activities. Develop an Asset Management Framework as a guidance tool Develop local government commitments under the GTA

Commitments under the GTA The GTA Partnership Committee has established and approved local government commitments to asset management under the GTA. In keeping with Schedule F, the commitments recognize the various capacities and range of ongoing asset management activities of local government. The approach is to support, not prescribe, allowing individual local governments to address individual needs/capacity. The Framework becomes the tool that provides guidance and direction.

Commitments under the GTA Captured as three (3) separate steps or actions; 1.Establishing an Asset Management Baseline 2.Developing an Implementation Plan under the GTA 3.Asset Management Reporting

Additional Resources Asset Management Planning Program Asset Management under the GTA – Eligible Project Category – CWF and SPF funding

Glen Brown (250) Thank You Questions?