Municipal Infrastructure Asset Management

The Federal Government has requested all municipalities to be practicing some form of asset management by 2018 to be eligible for receiving federal funding. The Province of Prince Edward Island will be facilitating the process for all municipalities to develop and implement an asset management plan (AMP).

Asset Management helps municipalities maximize investments and get the most out of their infrastructure. It also prioritizes spending so that investments are made on needs instead of wants.

To develop an asset management strategy, it can be helpful to answer the following questions:

  • What do we own, and where is it?
  • What is its current condition?
  • What is its value?
  • What is its useful life?
  • What do we need to do to it?
  • When do we need to do it?

By investigating these questions, a municipality becomes more familiar with the infrastructure it is responsible for and is able to put together a strategic and sustainable long-term plan.

The Province’s strategy for implementing asset management within the municipalities will be broken out into four phases. The timeline for the plan extends only to the end of Phase 1.

Phase I: Asset Inventory – October 2014 – June 2015

Municipalities will have to identify every piece of infrastructure that they own and maintain. This information will be gathered in two parts; Form A, which will pertain to buildings, parks, athletic fields, cultural/tourism infrastructure, trails and land and Form B, which will pertain to water/wastewater, storm water management, roads/sidewalks and public transit.

Phase II: Condition Assessment

Once an inventory of infrastructure assets has been compiled, a condition rating must be assigned to each asset. Knowing the current condition is extremely important for anticipating the future needs of your assets and when they are expected to fail. After the first few rounds of inspections have been completed, a municipality should start to get an idea of the rate at which an individual asset is deteriorating between each inspection. From here, accurate predictions can be made on when investments will be required for rehabilitation or replacement.

Phase III: Performance Evaluation

All infrastructure provides a municipality with a service, and how this infrastructure performs is referred to as the level of service (LOS). A municipality must examine its infrastructure, population and public expectation, and determine acceptable levels of service. 

Regulations or legislative requirements already in place often dictate the level of service at which an asset should perform. Level of service can also be defined by population size, public demand and what the customer expects from the infrastructure they fund.

For example: 

  • How rough will we let our roads get?
  • How many water line breaks per one kilometre of pipe are acceptable before we need to replace the entire line?
  • How many parts per million of contaminants is acceptable in our drinking water?

Also in this phase municipalities will prioritize their asset inventory based on risk, and the severity of failure for each asset.

Phase IV: Cost Analysis

In the final phase, municipalities will be required to identify all costs associated with each of their assets, including but not limited to: annual operating and maintenance costs, replacement costs, capital costs and decommissioning costs.  

The focus will be on laying out all anticipated costs for operating and maintaining their infrastructure while properly allocating investments where they are required the most. In this phase, municipalities will be encouraged to seek and consider alternative maintenance options, and to explore the advantages of planned preventative maintenance. Injecting appropriately-timed investments into infrastructure can not only slow the deterioration process but can also extend the overall service life, ultimately saving the municipality money.

This plan is not meant to be a one-time occurrence. The needs and expectations of a municipality, along with their infrastructure are constantly changing. To account for this, our infrastructure must be continuously re-evaluated and asset inventories must be kept up to date to ensure that decisions are based on the most current information.

Implementing an asset management system requires a lot of up front work, but once the initial run through of the four phases is complete it becomes a lot easier. At that point, municipalities must examine their volume of infrastructure and determine the best plan for re-evaluating and reassessing their assets.

Who can I contact for more information?

For more information contact Alex Dalziel by phone (902) 620-3631 or email jadalziel@gov.pe.ca

Are there any important dates coming up?

December 31st, 2017: Asset Management Plans are to be submitted to the Infrastructure Secretariat from each municipality.

March 31, 2018: All municipalities must be practicing asset management in order to be eligible for future Gas Tax funding.

Where can I find Asset Inventory Forms?

Published date: 
August 3, 2015
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