Item - 2019.EX6.11

The Executive Committee recommends that:

1.  City Council adopt the Corporate Asset Management Policy set out in Appendix 1 to the report (May 29, 2019) from the City Manager and the Chief Financial Officer and Treasurer.

2.  City Council direct the City Manager to communicate the application of this policy to the Board Chairs of the City Agencies and Corporations, as set out in Schedule A to Appendix 1 to the report (May 29, 2019) from the City Manager and the Chief Financial Officer and Treasurer.

3.  City Council direct the City Manager to make available the approved Corporate Asset Management Policy to the public via a City website and to distribute copies as requested.

This report presents the City of Toronto's Corporate Asset Management Policy for City Council's approval, as required by and in accordance with Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure.

This Corporate Asset Management Policy establishes the framework and a whole of government approach to asset management for assets owned that are managed by City Programs, Agencies and the Toronto Community Housing Corporation and reported as part of the City's consolidated financial statements. By adopting this policy, Council will confirm its commitment to sound, prudent stewardship of the City's infrastructure assets valued at over $94 Billion and will fulfil the first-phase requirements of meeting Ontario Regulation 588/17.

Asset management integrates planning, finance, engineering and operations to realize value from assets, reduce risks and provide expected levels of service to the community in a socially, environmentally and economically sustainable manner. Effective asset management requires an overarching framework to establish and guide its practice so that asset management becomes central to strategic, financial and operational decision-making at all levels of the organization.

The Corporate Asset Management Policy was developed in collaboration with City Program, Agency and Toronto Community Housing Corporation asset managers and policy leads.  A review of national and international jurisdictions examined asset management policies, practices and governance frameworks.  The findings confirmed that the asset management practices and policies of these jurisdictions were aligned to international standards similar to the policy elements outlined in Ontario Regulation 588/17, and as recommended in this policy for the City of Toronto.

The Corporate Asset Management Policy, attached as Appendix 1 to this report, provides a foundation that will support an integrated approach at the City as it develops and matures its asset management practice. The policy, which applies to all applicable City Programs, Agencies (except the Toronto Parking Authority) and the Toronto Community Housing Corporation, incorporates key principles and strategic directions that will enhance asset management practices and ensure that asset management activities are continuously improved and integrated across the organization.  The long-term outcome is to ensure the sustainability of assets and related services; optimize infrastructure investment decisions; and support reliable service delivery.