Background

Ontario recognizes the importance of consulting with stakeholders affected by provincial policy decisions. As part of the development of a proposed municipal asset management planning regulation in summer 2016, we launched an online consultation and held 9 regional sessions throughout the province to consult with our municipal sector partners.

Over the course of the summer we heard a range of ideas on what this proposed regulation should include, from individuals who deal with municipal asset management planning first-hand. We also heard from a number of municipal sector associations, private sector organizations and the general public.

Thank you for participating. We recognize the time and effort municipal participants put into these consultations, and value the contributions and expertise that was provided throughout the summer.

Consultation findings at a glance

In total, we received over 1600 comments during the consultation.

Regional, in-person sessions were held in Quinte West, Carleton Place, Barrie, Brampton, Thunder Bay, Dryden, London, Sudbury and Timmins.

The main themes we heard during the consultation were:

  • Municipal capacity and scale of challenges
  • Need support from council and the public
  • Understanding service levels and the importance of good data
  • Importance of integrated asset management planning

What we heard

The feedback we received was comprehensive. We heard a variety of perspectives that reflected the diverse circumstances of municipalities across Ontario. Though municipalities share a common concern for addressing infrastructure challenges, there are many different opinions on the best approach.

We received hundreds of comments on the scale of the infrastructure challenges municipalities face, and how a regulation on asset management planning could help address them. Many participants spoke of the potential for evidence-based decision-making and prioritization, and a common framework promoting collaboration between municipalities.

At the same time, many smaller municipalities spoke about the importance of return on investment as part of asset management planning. These municipalities talked about the time and resources that go into asset management planning, and the need to ensure positive outcomes are achieved as a result of these efforts.

However, despite the many positions of participants, there was a common acknowledgment of the value of asset management planning in improving long-term infrastructure outcomes. To this end, we recognize more than ever that the proposed regulation should promote improvement, and any requirements should translate to continued progress.

To help us achieve this goal, we aim to ensure that the common themes from the consultations are reflected as we continue to develop the proposed regulation. Outlined here is a summary of what we heard throughout the summer.

Major theme 1: municipal capacity and scale of challenges

Many municipalities have limited capacity

“#1 challenge is resources – staff to drive the processes, and finances to maintain, repair and replace assets.”

Central to the development of a proposal for a municipal asset management planning regulation is the understanding that many municipalities face capacity challenges. We heard that these challenges affect both large and small municipalities, and that municipalities will need adequate time to meet any new regulatory requirements.

We heard that financial and staffing limitations in smaller municipalities in particular should be understood, and that many small municipalities are further behind in the maturity of their asset management programs than mid-sized and large municipalities.

However, we also heard that mid-sized and large municipalities face unique challenges resulting from the size of their administrations. These municipalities spoke of the challenge to integrate processes between departments, and find ways to collaborate to develop a centralized plan.

Throughout the consultations, municipalities expressed the need for the Ontario government to recognize the capacity challenges they face. Many municipalities expressed the need for the proposed regulation to encourage better asset management planning by phasing in requirements over time.

Significant infrastructure needs

“This year almost all of our roads experienced significant deterioration.”

Asset management planning is an important step in tackling the infrastructure challenges Ontario municipalities face, but we heard that this is a particularly difficult task at present. Many municipal assets are reaching the end of their useful life due to the construction boom of the 1950s and 1960s. This has resulted in a unique situation where many infrastructure projects are required at the same time, creating new pressures on municipalities’ ability to pay.

We also heard that this problem is particularly challenging in Northern Ontario communities, where shorter construction seasons and higher construction costs exacerbate the structural issues these municipalities already face.

Municipalities told us that the Ontario government’s expectations around municipal asset management planning should not exceed what can be realistically achieved given these structural challenges.

Major theme 2: need support from council and the public

Council and public engagement is critical

“Our council recognizes the significant infrastructure gap and the importance of addressing it. This has been a significant driver for the focus on the plan and has helped it receive priority.”

Another key theme we heard is that good asset management planning requires a collaborative approach. Though staff may work to develop and implement the plan, it is ultimately council that needs to approve it and agree to the required investments. Additionally, the public needs to understand the services the municipality provides and, as taxpayers and ratepayers, they need to understand the costs of maintaining these services.

Some municipalities have had success in engaging council and the public, but most continue to struggle with this issue. In small communities in particular, many spoke of resistance in their municipalities to activities resulting in a need for additional tax revenue or debt.

Informing council and increasing public awareness on the importance of developing and following an asset management plan is important to the success of an asset management program. Part of this education comes from engaging council and the public in the early stages of the asset management planning process, and providing ongoing information.

Secondary theme 1: understanding service levels and the importance of good data

Need to better understand service levels

“What service levels do we want to achieve? How much will it cost to achieve those levels?”

We heard that many municipalities struggle around discussions of service levels. Many municipalities do not have a good understanding of how their service levels relate to their infrastructure networks, and find it challenging to define the current service levels being provided to residents. This makes it difficult to determine the full cost of maintaining these services, and to consider potential options for funding or adjusting service levels. Many municipalities suggested that the Ontario government should provide further guidance on how they can measure their service levels in a meaningful way.

While a few municipalities indicated that a fixed set of prescribed service level metrics could help promote better comparability across plans, many believed that it would be challenging to establish a list of metrics that are relevant province-wide. Small, rural and northern municipalities expressed concerns over how their measured service levels could potentially inform future funding from the Ontario government. A few municipalities suggested alternative approaches, such as having different metrics for small and large municipalities, allowing municipalities to select from a list of service level metrics, or simply providing guidance materials.

Good data is important for asset management processes

“Challenge is in obtaining accurate and reliable data, with the existing staff resources that we have.”

One of the important drivers of good asset management planning is accurate data on municipal assets. Identifying asset performance and assessing risk are largely derived from having accurate inventory, condition and cost data on assets. This data is essential for tying together service levels, financial planning and lifecycle management options.

Some larger municipalities spoke of success in maintaining a good asset database, but many others noted that this remains one of the important challenges they continue to face. They told us that the Ontario government needs to recognize this challenge and account for the time and resources that it takes to maintain good data.

Secondary theme 2: importance of integrated asset management planning

Linking plans to budgeting and financial planning

“Need to have an open discussion on the appropriate tools that generate long-term sustainable funds to manage assets.”

Creating an asset management plan is one part of the broader asset management planning process. Importantly, a plan must have financial support to be effective. One of the challenges we heard is that plans can sometimes “sit on shelves” after they have been created, and that there is a need to commit to funding the required investments.

For those municipalities that have had success in this area, they noted that it has helped provide support for funding the activities identified in their asset management plans. But many spoke of how this remains a challenge, and without this integration, it remains difficult to gain support for implementing the asset management plan.

Many municipalities suggested that the regulation should promote integration with budgeting, and that financial considerations should run through the entire asset management planning process.

Integration with other municipal plans and processes

“Municipalities strategically plan for the future and have a number of plans that impact infrastructure management.”

Similar to the importance of linking asset management plans to budgeting, we heard that plans must also be linked to other municipal plans and processes. An asset management plan should both inform and be informed by important municipal planning documents, such as official plans, strategic plans and other plans and processes specific to the municipality.

There is more to asset management planning than simply maintaining assets. Each municipality in Ontario works to plan for the overall direction of their community, such as planning for a growing and aging population, promoting accessibility and preparing for a changing climate. Asset management planning must be aligned with this direction.

Provincial coordination

“It is important that the AMP Regulation be embedded into the existing regulatory framework rather than added as a new layer.”

We heard that municipalities are already required to comply with a number of provincial regulations and policies, and that any new municipal asset management planning regulation should align with these. Municipalities stressed that the Government of Ontario must seek opportunities to create efficiencies where possible.

Municipalities noted that the proposed regulation needs to be complementary to the work that municipalities are already doing, and that timing requirements under this regulation should not conflict with requirements under other provincial regulations and policies.

How the feedback will be used

The feedback that we heard in summer 2016 was essential in helping us develop the proposed regulation. Building from this feedback, we posted proposed regulation content on the Ontario Environmental Registry and Ontario Regulatory Registry for further input from municipalities and others.

It is important that we continue to partner with municipalities on this initiative, and that any final regulation reflects the valuable feedback we have received. We thank all participants, once again, for contributing to these consultations. We look forward to continuing this work together and advancing asset management planning across Ontario.