The last number of years the catch phase of “asset management” is everywhere to be found for municipalities. Currently, substantial grant funding through the Federation of Canadian Municipalities (FCM) is available to assist municipalities in undertaking this “new” asset management idea. At first glance asset management appears to be another thing to add to the list of responsibilities for municipal administrators who are typically already overworked, understaffed and under-resourced. So, who would volunteer for more paperwork, and why?
After years of research, reading, seminars, courses and experience in the field, the nebulous idea of ‘asset management’ is starting to make sense. The International Standards Organization (ISO) defines asset management as a “measure of capacity and the ability of an entity (system, person, or organization) to achieve its objectives”. What this basically means is, creating an internal system, or series of internal procedures, checks and balances, that makes the organization (or in this case, a municipality) run more efficiently. The intent is to better utilize existing resources within the municipality (staffing, graders, gravel), and complete basic preventative maintenance on essential infrastructure (water, sewer, and roads) so that the asset function continues to provide an expected level of service (the road can be travelled with ease). It is a basic equation: resources + capability = service.
The typical goal of a municipality is to provides services to its taxpayers. The ideal way to achieve this is through efficient use of resources. Everyone has heard the term “work smarter, not harder”, and this is synonymous with asset management. If municipal assets (which yes, includes human resources like the foreman and administrator) can function as efficiently as possible, less financial resources may be necessary to maintain that asset, and still achieve the organization’s goals. Reconsider that equation above: how to best use our resources to their best ability and efficiency to meet your service expectations.
A word of caution here though, reducing financial resources is only achievable once enough data exists to justify and validate where cost-savings can occur, without jeopardizing the service the municipality is intending to provide. For example, what is the exact minimum quantity of gravel/pavement we can use on this road for its current traffic volumes, typical weather, and before the deterioration, or ‘pounding out the road’ begins to affect the foundation or structure of that road that would cause a very unaffordable rebuild? Many experienced councillors may know this number in their mind. Asset management enables this knowledge to be shared, and validated through data, with the people completing the work in the system (the gravel/pavement haulers, the grader/pavement operators, foreman, and the administrator managing the finances) so that everyone works smarter and more efficiently. This data is analyzed so that next year’s annual budgeting for gravel/pavement, and finances are more accurate.
Furthermore, when that vocal taxpayer complains about poor service on that road, administration can show the numbers and figures to defend public works maintenance scheduling, and Council’s policy decision. While the taxpayer may not be satisfied, they will be informed, and perhaps they may decrease their unrealistic service expectations. Asset management can help to bridge the gap between what taxpayers think their taxes should provide, and what the municipality realistically can afford to provide.
Working in municipal offices is challenging enough, but not getting worked so hard to require stress leave, having data to defend employee actions and leadership decisions, and still provide a good service to taxpayers, is where the ‘rubber hits the road’ and asset management makes sense.
S. Yvonne Prusak, BASc, MA, MCIP, RPP, is CEO of Northbound Planning Ltd. a private consulting firm specializing in municipal land use planning and development, asset management and administrative support. She can be reached at (306) 397-1000, or at [email protected].
