Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
Introducing the LCCAMP Model
National LG Infrastructure & Asset Management Conference
Anthony Coates
Director LGIS Operations
7 May 2014
Local Government Infrastructure Services (LGIS) is a
joint venture of Queensland Treasury Corporation
(QTC) and Local Government Association of
Queensland (LGAQ)
From 1 July 2014 LGIS will be a fully owned
subsidiary of LGAQ
LGIS was established in 2005 specifically to serve
the infrastructure related needs of Queensland local
governments
We specialise in:
infrastructure options & strategy development
program management
procurement advice
demand management
Our Aims
Provide expertise in developing & evaluating efficient
& effective infrastructure solutions
Reduce the risk & costs of infrastructure procurement
and operation
Capture economies of scale & scope in relation to
infrastructure
Develop innovative procurement and infrastructure
management solutions
4
CORE ASSET MANAGEMENT Pursue capital works that best meet
financial / social / environmental /
governance objectives (within
budget)
How asset performance
compares with ratepayer
expectations
Maximise proactive
maintenance works
(within budget)
Core asset management
plans focus on three key
areas
Underpinned by
asset register & conditions
5
CORE ASSET MANAGEMENT HAS
ITS LIMITATIONS
1. It’s difficult to quantify the impact of AM decisions on O&M,
Capex, LOS, COS and the associated risks.
eg, if we divert resources from one asset class to another, how
does in impact on both? And what’s the whole-of-council impact?
6
CORE ASSET MANAGEMENT HAS
ITS LIMITATIONS (CONT.)
2. It’s not always clear whether assets are being under/over-
serviced, or are receiving the right amount of attention.
7
CORE ASSET MANAGEMENT HAS
ITS LIMITATIONS (CONT.)
3. Where we under/over-service assets, it’s difficult to identify
the appropriate levers to use to address the imbalance.
8
Defined budget
with 10 year
forecasts
Pot hole
repairs
O & M
New
swimming
pool
O & M
Capex
Useful life
of WTP
revised
down
Capex
Car park
upgrade to
library
Capex
Capex
Road
works
O & M
Improve
waste
collection
services
O & M
Capex
Recreation
park
O & M
Capex
IMPACT ON CAPEX AND O & M
9 IMPACT ON SERVICE LEVELS
Defined budget
with 10 year
forecasts
Pot hole
repairs
O & M
New
swimming
pool
O & M
Capex
Useful life
of WTP
revised
down
Capex
Car park
upgrade to
library
Capex
Capex
Road
works
O & M
Improve
waste
collection
services
O & M
Capex
Recreation
park
O & M
Capex
High
service
levels
Low
service
levels
VS
High
service
levels
VS
10
INTRODUCING THE LCCAMP MODEL
11
ASSET MANAGEMENT PLANNING MATURITY
CURVE
12
LCCAMP MODEL OBJECTIVES
1. To demonstrate how, now and over the next 10 years, the
asset management strategy as a whole, will perform
2. To understand the impacts of Capex / O&M / Service Level
decisions
3. To act as a Decision Support Tool for elected members and
EMT
13
LCCAMP INTEGRATES EXISTING
ASSET MANAGEMENT STRATEGIES
PM score: 8
Risk score: 7
PM score: 5
Risk score: 7 PM score: 9
Risk score: 7
14
PERFORMANCE MANAGEMENT
AND RISK MANAGEMENT
Performance management score refers to the networks’
ability to provide and maintain timely, responsive and
sustainable infrastructure
Risk score refers to the resilience of the asset network
15
COUNCIL PERFORMANCE ON A PAGE
Whole of Council LCCAMP Dashboard
Select Scenario Select Financial Year
Example Council Summary FY 2019/20 - Base caseCapexPM Score: 6.65
Risk Score: 6.73
Net Capex Forecast: 210.1M
Capex Budget: 188.8M
LoS
O&M PM Score: 7.25
PM Score: 7.34 Risk Score: 6.42
Risk Score: 7.16
Cost of Service Score (PM): 4.52
O&M Forecast: 636.9M Cost of Service Score (Risk): 4.44
O&M Budget: 513.0M Expected CS Score (PM) 6.98
Expected CS Score (Risk) 6.97
Capital Expenditure
Level of ServiceOperating & MaintenanceExpenditure
1 2
16
ASSET PERFORMANCE ON A PAGE
Example Council Asset Level Dashboard
Select Scenario Select Financial Year Select Service Asset Class
Transport Summary FY 2013/14 - Base caseCapexPM Score: 6.26
Risk Score: 7.19
Net Capex Forecast: 32.8M
Capex Budget: 43.6M
LoS
O&M PM Score: 7.15
PM Score: 7.54 Risk Score: 5.77
Risk Score: 7.12
Cost of Service Score (PM): 3.60
O&M Forecast: 138.2M Cost of Service Score (risk): 2.90
O&M Budget: 135.2M CS Score (PM) 6.51
CS Score (risk) 6.45
Transport
Capital Expenditure
Level of ServiceOperating & MaintenanceExpenditure
1 32
17
DEFINING THE RELATIONSHIPS IS
KEY
Define AM metrics
Map each metric to our AM strategies
Calculate metrics (and
resulting scores)
Develop courses of action to
improve scores
1 2 3 4
18
1) DEFINE ASSET MANAGEMENT
METRICS Sustainability ratio
LCCAMP calculates:
- 21 asset management metrics
- 29 cost of service measures
19
2) MAP METRICS TO STRATEGIES
Sustainability ratio
CoS (eg, $ per km) Effective &
efficient
maintenance
20
2) MAP METRICS TO STRATEGIES
Sustainability ratio
CoS (eg, $ per km)
Effective &
efficient
maintenance
Community
satisfaction
KPI 4
KPI 5
KPI 6
21
Capex
O&M
LOS
Community satisfaction
(#) (t)
Asset consumption(%) (t) Asset renewal
(%) (t)
Sustainability Ratio (%) (t)
Weighted average remaining useful life
(years) (t)
Annual asset consumption to
deliver the service per person
($) (t)
Reactive maintenance mgmt and service delivery
(%) (t)
O&M per asset replacement value
(%) (t)
Effective and efficient
maintenance(%) (t)
% impact in O&M(%) (t)
Prior year's O&M expense
(t)
Annual total depreciation
(t)
Total depreciation(t)
O&M expense(t)
Total maintenance expense
(t)
Proactive maintenance mgmt and service delivery
(%) (t)
Total proactive maintenance
expense(t)
Total maintenance expense
(t)
Total infrastructure/person(t) (%)
New & upgrade/renewal ratio
(%) (t)
New & upgrade/Total capex
(%) (t)
Total capex(t)
Capital replacement ratio
(%)(t)
Capex budget variance
(%) (t)
Total forecast capex(t)
D20 Population forecast
(t)
Years new asset has been in operation
(t)
D1 Capex budget(t)
D7 Renewal budget(t)
New capex(t)
New capex(t)
D6 Existing asset replacement value
(s)
Current year’s O&M expense
(t)
Prior year’s Opex(t)
Prior year’s total maintenance
expense(t)
Current year’s Opex(t)
Current year’s total maintenance
expense(t)
Total asset book value
(t)
D17 Community satisfaction scoring
of sub-assets(s)
D5 Avg remaining useful life of existing
assets (t)
D20 Population forecast
(t)
Book value of new assets
(t)
Total reactive maintenance cost
(t)
Total asset replacement value
(t)
Total asset replacement value
(t)
Renewal capex(t)
Book value of existing assets
(t)
Book value of total assets
(t)
Replacement cost of total assets
(t)
Useful lives of new assets
(s)
Renewal capex(t)
Renewal capex(t)
O&M budget variance
($) (t)
D8 O&M budget(t)
Total capex(t)
% increase in CoS(%) (t)
D2…. Last year’s CoS(t) This year’s CoS
(t)
Service satisfaction measure - all
(t) (%)
Renewal capex
Total asset replacement value
(t)
Renewal capex(t)
O&M expense(t)
Service satisfaction measure - actioned
(t) (%)
D25 Total number of service calls actioned for all
assets(t)
D24 Total number of service calls
actioned for the asset class
(s)
Cost of service (t) ($) (figure 36)
D22 Total number of service calls
raised for the asset class
(s)
D23 Total number of service calls
raised for all assets(s)
IDENTIFYING DATA
START WITH THE OUTPUTS AND WORK BACK AND BACK
22
Capex
O&M
LOS
Community satisfaction
(#) (t)
Asset consumption(%) (t) Asset renewal
(%) (t)
Sustainability Ratio (%) (t)
Weighted average remaining useful life
(years) (t)
Annual asset consumption to
deliver the service per person
($) (t)
Reactive maintenance mgmt and service delivery
(%) (t)
O&M per asset replacement value
(%) (t)
Effective and efficient
maintenance(%) (t)
% impact in O&M(%) (t)
Prior year's O&M expense
(t)
Annual total depreciation
(t)
Total depreciation(t)
O&M expense(t)
Total maintenance expense
(t)
Proactive maintenance mgmt and service delivery
(%) (t)
Total proactive maintenance
expense(t)
Total maintenance expense
(t)
Total infrastructure/person(t) (%)
New & upgrade/renewal ratio
(%) (t)
New & upgrade/Total capex
(%) (t)
Total capex(t)
Capital replacement ratio
(%)(t)
Capex budget variance
(%) (t)
Total forecast capex(t)
D20 Population forecast
(t)
Years new asset has been in operation
(t)
D1 Capex budget(t)
Depreciation on new assets
(t)
D7 Renewal budget(t)
New capex(t)
D3 User selection of capex projects
(s)D2 Capital works
plan capex(t)
New capex(t)
Opex(t)
Opex for existing assets
(t)
Opex for new assets(t)
Total proactive maintenance
expense(t)
Total reactive maintenance
expense(t)
D9 O&M expenses for existing assets
(s)D2 Capital works
plan capex(t)
D12 O&M spend as % of BV for the new
asset(t)
D13 Opex as % of O&M for the new
asset (s)
% of asset which is operational in the
current year(t)
Proactive maintenance for existing assets
(t)
Proactive maintenance for
new projects(t)
D9 O&M expenses for existing assets
(s)
D12 O&M spend as % of BV for the new
asset(t)
D13 Proactive maintenance as %
of O&M for the new asset
(s)
% of asset which is operational in the
current year(t)
D12 O&M spend as % of BV for the new
asset(t)
D13 Reactive maintenance as %
of O&M for the new asset
(s)
% of asset which is operational in the
current year (t)
Reactive maintenance for existing assets
(t)
Reactive maintenance for
new projects(t)
D9 O&M expenses for existing assets
(s)
D6 Existing asset replacement value
(s)
Current year’s O&M expense
(t)
Prior year’s Opex(t)
Prior year’s total maintenance
expense(t)
Current year’s Opex(t)
Current year’s total maintenance
expense(t)
Total asset book value
(t)
Book value of new assets
(t)
Depreciation of new assets
(t)
D2 Capital works plan(t)
Book value of existing assets
(t)
D4 Useful lives of new assets from
capital works plan
D17 Community satisfaction scoring
of sub-assets(s)
Depreciation on new assets
(t)
New asset replacement value
(t)
D3 User selection of capex project
(s)
Current year (S)
Book value of new assets
(t)
Annual depreciation on new assets
(t)
Book value of new assets
(t)
Book value of new assets
(t)
D5 Avg remaining useful life of existing
assets (t)
D20 Population forecast
(t)
Book value of new assets
(t)
Total reactive maintenance cost
(t)
D2 Capital works plan(t)
Project start year(s)
Project end year(s)
D2 Capital works plan capex
(t)
Total capex cost of new assets
(t)
Total asset replacement value
(t)
Total asset replacement value
(t) D5 Average remaining useful lives of existing
assets(t)
D6 Replacement value of existing
assets
Annual depreciation on existing assets
(t)
Years new asset has been in operation
(t)
Capex cost of new asset
(s)
Depreciation on existing assets
(t)
Depreciation on existing assets
(t)
Renewal capex(t)
D2 Capital works plan capex
(t)
Current year (S)
D2 Capital works plan(t)
Project start year(s)
Project end year(s)
Book value of existing assets
(t)
Depreciation rates on new assets
(s)
D3 User selection of capex project
(s)
Book value of total assets
(t)
Replacement cost of total assets
(t)
Useful lives of new assets
(s)
Renewal capex(t)
Renewal capex(t)
O&M budget variance
($) (t)
D8 O&M budget(t)
Total capex(t)
D3 User selection of capex projects
(s)
D2 Capital works plan capex
(t)
% increase in CoS(%) (t)
D2…. Last year’s CoS(t) This year’s CoS
(t)
Corporate overhead allocation
{t}
D10 Forecast corporate overhead
allocation{t}
D10 Corporate overhead allocation% by sub-asset class
{s}
Service satisfaction measure - all
(t) (%)
Renewal capex
Total asset replacement value
(t)
Renewal capex(t)
O&M expense(t)
Service satisfaction measure - actioned
(t) (%)
D25 Total number of service calls actioned for all
assets(t)
D24 Total number of service calls
actioned for the asset class
(s)
Cost of service (t) ($) (figure 36)
D22 Total number of service calls
raised for the asset class
(s)
D23 Total number of service calls
raised for all assets(s)
IDENTIFYING DATA
START WITH THE OUTPUTS AND WORK BACK AND BACK AND BACK
23
Capex
O&M
LOS
Community satisfaction
(#) (t)
Asset consumption(%) (t) Asset renewal
(%) (t)
Sustainability Ratio (%) (t)
Weighted average remaining useful life
(years) (t)
Annual asset consumption to
deliver the service per person
($) (t)
Reactive maintenance mgmt and service delivery
(%) (t)
O&M per asset replacement value
(%) (t)
Effective and efficient
maintenance(%) (t)
% impact in O&M(%) (t)
Prior year's O&M expense
(t)
Annual total depreciation
(t)
Total depreciation(t)
O&M expense(t)
Total maintenance expense
(t)
Proactive maintenance mgmt and service delivery
(%) (t)
Total proactive maintenance
expense(t)
Total maintenance expense
(t)
Total infrastructure/person(t) (%)
New & upgrade/renewal ratio
(%) (t)
New & upgrade/Total capex
(%) (t)
Total capex(t)
Capital replacement ratio
(%)(t)
Capex budget variance
(%) (t)
Total forecast capex(t)
D20 Population forecast
(t)
Years new asset has been in operation
(t)
D1 Capex budget(t)
Depreciation on new assets
(t)
D7 Renewal budget(t)
New capex(t)
D3 User selection of capex projects
(s)D2 Capital works
plan capex(t)
New capex(t)
Opex(t)
Opex for existing assets
(t)
Opex for new assets(t)
Total proactive maintenance
expense(t)
Total reactive maintenance
expense(t)
D9 O&M expenses for existing assets
(s)D2 Capital works
plan capex(t)
D12 O&M spend as % of BV for the new
asset(t)
D13 Opex as % of O&M for the new
asset (s)
% of asset which is operational in the
current year(t)
Proactive maintenance for existing assets
(t)
Proactive maintenance for
new projects(t)
D9 O&M expenses for existing assets
(s)
D12 O&M spend as % of BV for the new
asset(t)
D13 Proactive maintenance as %
of O&M for the new asset
(s)
% of asset which is operational in the
current year(t)
D12 O&M spend as % of BV for the new
asset(t)
D13 Reactive maintenance as %
of O&M for the new asset
(s)
% of asset which is operational in the
current year (t)
Reactive maintenance for existing assets
(t)
Reactive maintenance for
new projects(t)
D9 O&M expenses for existing assets
(s)
D6 Existing asset replacement value
(s)
Current year’s O&M expense
(t)
Prior year’s Opex(t)
Prior year’s total maintenance
expense(t)
Current year’s Opex(t)
Current year’s total maintenance
expense(t)
Total asset book value
(t)
Book value of new assets
(t)
Depreciation of new assets
(t)
D2 Capital works plan(t)
Book value of existing assets
(t)
D4 Useful lives of new assets from
capital works plan
D17 Community satisfaction scoring
of sub-assets(s)
Depreciation on new assets
(t)
New asset replacement value
(t)
D3 User selection of capex project
(s)
Current year (S)
Book value of new assets
(t)
Annual depreciation on new assets
(t)
Book value of new assets
(t)
Book value of new assets
(t)
D5 Avg remaining useful life of existing
assets (t)
D20 Population forecast
(t)
Book value of new assets
(t)
Total reactive maintenance cost
(t)
D2 Capital works plan(t)
Project start year(s)
Project end year(s)
D2 Capital works plan capex
(t)
Total capex cost of new assets
(t)
Total asset replacement value
(t)
Total asset replacement value
(t) D5 Average remaining useful lives of existing
assets(t)
D6 Replacement value of existing
assets
Annual depreciation on existing assets
(t)
Years new asset has been in operation
(t)
Capex cost of new asset
(s)
Depreciation on existing assets
(t)
Depreciation on existing assets
(t)
Renewal capex(t)
D2 Capital works plan capex
(t)
Current year (S)
D2 Capital works plan(t)
Project start year(s)
Project end year(s)
Book value of existing assets
(t)
Depreciation rates on new assets
(s)
D3 User selection of capex project
(s)
Book value of total assets
(t)
Replacement cost of total assets
(t)
Useful lives of new assets
(s)
Renewal capex(t)
Renewal capex(t)
O&M budget variance
($) (t)
D8 O&M budget(t)
Total capex(t)
D3 User selection of capex projects
(s)
D2 Capital works plan capex
(t)
% increase in CoS(%) (t)
D2…. Last year’s CoS(t) This year’s CoS
(t)
Corporate overhead allocation
{t}
D10 Forecast corporate overhead
allocation{t}
D10 Corporate overhead allocation% by sub-asset class
{s}
Service satisfaction measure - all
(t) (%)
Renewal capex
Total asset replacement value
(t)
Renewal capex(t)
O&M expense(t)
Service satisfaction measure - actioned
(t) (%)
D25 Total number of service calls actioned for all
assets(t)
D24 Total number of service calls
actioned for the asset class
(s)
Cost of service (t) ($) (figure 36)
D22 Total number of service calls
raised for the asset class
(s)
D23 Total number of service calls
raised for all assets(s)
Cost of Service measures
Water CoS measures
D9 Total O&M cost of existing dams &
weirs(s)
Waste water CoS measures
Building CoS measures
Fleet CoS measures
Transport CoS measures
Drainage CoS measures
Land CoS measures
D9 Total O&M cost of existing pipelines
(s)
D9 Total O&M cost of existing water treatment plants
(s)Cost per dam &
weirs(t)
Cost per reservoir(t)
Cost per water treatment plant
(t)
Cost per km of pipeline
(t)
D9 Total O&M cost of existing reservoirs
(s)
D9 Total O&M cost of existing sewer
pump stations(s)
D9 Total O&M cost of existing
pipelines/sewers(s)
D9 Total O&M cost of existing WTPs
(s)
Cost per sewer pump station
(t)
Cost per WTP(t)
Cost per km of sewer pipeline
(t)
D9 Total O&M cost of existing kerb &
channels(s)
D9 Total O&M cost of existing roads
(s)
D9 Total O&M cost of existing pathways
(s)
Cost per km of kerb & channel
(t)
Cost per bridge(t)
Cost per km of pathway
(t)
Cost per km of road(t)
D9 Total O&M cost of existing bridges
(s)
D9 Total O&M cost of existing roadside
furniture(s)
Cost per roadside furniture
(t)
Cost per km of drainage
(t)
D9 Total O&M cost of existing drainage
(s)
D9 Total O&M cost of existing heavy
fleets(s)
D9 Total O&M cost of existing minor
fleets(s)
Cost per heavy fleet(t)
Cost per minor fleet(t)
D9 Total O&M cost of existing land
(s)
D9 Total O&M cost of existing buildings
(s)
D9 Total O&M cost of existing sports
complexes(s)
Cost per building(t)
Cost per sports complex
(t)
Parks CoS measures
D9 Total O&M cost of existing parks
(s)
Cost per hectare of park
Recreational CoS measures
D9 Total O&M cost of existing
recreational facilities
(s)
ICT CoS measures
D9 Total O&M cost for existing
intangible ICT assets
(s)
D21 # of employees(t)
Cultural CoS measures
D9 Total O&M cost of existing cultural
assets(s)
LOS
(from figure 35)
Cost per sq km of land(t)
Total number of reservoirs
(t)
Total length of pipeline (km)
(t)
Total number of dams & weirs
(t)
Total number of water treatment
plants(t)
Total park area (in hecatare)
(t)
Total # of cultural assets
(t)
Cost per cultural asset
(t)
Cost per recreational facility
(t)
Total book value of recreational
facilities(t)
Total length of drainage
(t)
Total number of roadside furniture
(t)
Total kms of road(t)
Total number of bridges
(t)
Total kms of kerb & channel
(t)
Total kms of pathways
(t)
Total sq km of land(t)
Intangible ICT cost per employee
(t)
Total number of buildings
(t)
Total number of sports complexes
(t)
Total number of sewer pump
stations(t)
Total number of WTPs
(t)
Total kms of sewer pipeline
(t)
Total heavy fleets quantity
(t)
Total number of minor fleets
(t)
Total O&M cost of new drainage
(t)
Total O&M cost of new recreational
facilities(t)
Total O&M cost of new cultural assets
(t)
D9 Total O&M cost for new intangible
ICT assets(t)
Total O&M cost of new parks
(t)
Total O&M cost of new dams & weirs
(t)
Total O&M cost of new minor fleets
(t)
Total O&M cost of new heavy fleets
(t)
Total O&M cost of new roadside
furniture(t)
Total O&M cost of new pathways
(t)
Total O&M cost of new kerb & channel
(t)
Total O&M cost of new bridges
(t)
Total O&M cost of new roads
(t)
Total O&M cost of new land
(t)
Total O&M cost of new buildings
(t)
Total O&M cost of new sports complexes
(t)
Total O&M cost of new sewer pipelines
(t)
Total O&M cost of new sewer pump
stations(t)
Total O&M cost of new WTPs
(t)
Total O&M cost of new pipelines
(t)
Total O&M cost of new water
treatment plants(t)
Waste CoS measures
D9 Total O&M cost of existing transfer
stations (s)
D9 Total O&M cost of existing landfill
space(s)
Cost per transfer station
(t)
Cost per square m of landfill space
(t)
Total landfill space (in sqm)
(t)
Total number of transfer stations
(t)
Total O&M cost of new transfer
stations (t)
Total O&M cost of new landfill space
(t)
D9 Total O&M cost of existing public
toilets(s)
Cost per public toilet
(t)
Total number of public toilets
(t)
Total O&M cost of new public toilets
(t)
D9 Total O&M cost of existing
swimming pools(s)
Cost per swimming pool(t)
Total number of swimming pools
(t)
Total O&M cost of new swimming
pools(t)
D9 Total O&M cost for existing tangible
ICT assets(s)
D21 # of employees(t)
Tangible ICT cost per employee
(t)
D9 Total O&M cost for new tangible ICT
assets(t)
Total O&M cost of new reservoirs
Cost per light fleet (t)
Total O&M cost of new light fleets
(t)
Total number of light fleets
(t)
D9 Total O&M cost of existing light
fleets(s)
IDENTIFYING DATA
START WITH THE OUTPUTS AND WORK BACK AND BACK AND BACK AND BACK
24
3) CALCULATE METRICS AND SCORES
Performance Management Component Scores FY 13/14A FY 14/15E FY 15/16E FY 16/17E FY 17/18E FY 18/19E FY 19/20E FY 20/21E FY 21/22E FY 22/23E
O&M budget variance # 8.92 8.88 8.88 8.86 8.75 8.66 8.57 8.45 8.36 8.36
% impact in O&M # 10.00 7.54 8.31 8.33 8.66 8.82 8.74 8.75 8.94 9.00
Effective and efficient maintenance # 8.82 8.82 8.80 8.80 8.80 8.80 8.80 8.80 8.80 8.80
O&M per asset replacement cost # 8.08 8.00 7.96 7.96 7.88 7.80 7.74 7.64 7.64 7.66
Renewal capex # 2.45 2.40 2.50 2.66 2.69 2.75 2.56 3.06 2.98 2.46
Reactive maintenance mgmt. # 7.74 7.72 7.58 7.56 7.54 7.54 7.48 7.48 7.46 7.50
Proactive maintenance mgmt. # 5.95 5.95 5.99 5.92 5.92 5.92 5.92 5.94 5.94 5.92
O&M KPIs FY 13/14A FY 14/15E FY 15/16E FY 16/17E FY 17/18E FY 18/19E FY 19/20E FY 20/21E FY 21/22E FY 22/23E
O&M budget variance $M -29.3 -48.6 -64.4 -79.1 -97.0 -110.4 -123.9 -140.2 -150.7 -148.9
% impact in O&M % -% 7.9% 7.7% 6.7% 6.8% 5.6% 5.3% 5.6% 4.5% 2.6%
Effective and efficient maintenance % 0.5% 0.6% 0.6% 0.6% 0.6% 0.7% 0.7% 0.7% 0.7% 0.7%
O&M per asset replacement cost % 6.9% 7.1% 7.3% 7.5% 7.8% 7.9% 8.0% 8.1% 8.2% 8.1%
Renewal capex % 8.0% 8.4% 8.7% 8.9% 9.2% 9.3% 9.3% 9.5% 9.3% 8.1%
Reactive maintenance mgmt. % 31.5% 31.4% 32.4% 32.5% 33.1% 33.0% 34.4% 34.1% 34.0% 33.9%
Proactive maintenance mgmt. % 68.5% 68.6% 67.6% 67.5% 66.9% 67.0% 65.6% 65.9% 66.0% 66.1%
25
-
2
4
6
8
10
O&Mbudget
variance
% impactin O&M
Effectiveand
efficientmaintena
nce
O&M perasset
replacement cost
Renewalcapex
Reactivemaintena
ncemgmt.
Proactivemaintena
ncemgmt.
Risk Component Scores - Example Council - (FY 2018/19)
-
2
4
6
8
10
O&Mbudget
variance
% impactin O&M
Effectiveand
efficientmaintena
nce
O&M perasset
replacement cost
Renewalcapex
Reactivemaintena
ncemgmt.
Proactivemaintena
ncemgmt.
Performance Management Component Scores -Example Council - (FY 2018/19)
0
2
4
6
8
10
12
Best practise Advanced Interim Core
Best practise Advanced Interim Core
4) DEVELOP COURSES OF ACTION
TO IMPROVE SCORES
Dashboard reports
indicate which areas
clearly need
addressing.
Here our Renewal
Capex scores are
woeful…
26
“A NEW SWIMMING COMPLEX
WOULD BE NICE…”
27
INTRODUCING SCENARIO MANAGER
LCCAMP Model - Base case
Example Council LCCAMP Scenarios
Select a Scenario Save before reviewing model outputs!Save Scenario
Ad-hoc Capital Projects
Service Asset Sub-Asset Useful Life Nominal Cost Quantity Project Completion
Project Name Project ID Class Class (Years) ($) () Year Year
- -
Capital Project Planning Capital Works Plan - Summary Table
Project Description Net Nominal Cumulative Net of Active or Inactive project list for each scenario
Project ID Priority Score Sub-AssetCost ($M)
Gross Cost
($M)Budget ($M)
Base caseBase case Scenario 2 Scenario 3 Scenario 4 Scenario 5
Road Network Augmentation Program RN16_018 100 Road -1.7 8.3 2,047.0 Active Active Active Active Active Active
Road Network Augmentation Program RN17_014 100 Road -1.8 6.6 2,048.7 Active Active Active Active Active Active
Road Network Augmentation Program RN18_011 100 Road -1.8 4.7 2,050.6 Active Active Active Active Active Active
Road Network Augmentation Program RN19_003 100 Road -1.9 2.8 2,052.5 Active Active Active Active Active Active
Road Network Augmentation Program RN20_002 100 Road -2.0 0.8 2,054.5 Active Active Active Active Active Active
Road Network Augmentation Program RN21_003 100 Road -2.1 -1.3 2,056.6 Active Active Active Active Active Active
Road Network Augmentation Program RN14_019 93.33 Road -1.5 -2.9 2,058.1 Active Active Active Active Active Active
Road Network Augmentation Program RN15_018 93.33 Road -1.6 -4.5 2,059.7 Active Active Active Active Active Active
Road Network Augmentation Program RN13_012 92 Road - -4.5 2,059.7 Active Active Active Active Active Active
Capping - Majors Creek Closed landfill 3278 88 Landfill - -4.5 2,059.7 Active Active Active Active Active Active
Add Project
28
WE CAN ADD A $20 MILLION
SWIMMING COMPLEX
Capital Project Planning Capital Works Plan - Summary Table
Project Description Net Nominal Cumulative Net of Active or Inactive project list for each scenario
Project ID Priority Score Sub-AssetCost ($M)
Gross Cost
($M)Budget ($M)
Scenario 2Base case Scenario 2
Road Network Augmentation Program RN16_018 100 Road -1.7 8.3 2,047.0 Active Active Active
Road Network Augmentation Program RN17_014 100 Road -1.8 6.6 2,048.7 Active Active Active
Road Network Augmentation Program RN18_011 100 Road -1.8 4.7 2,050.6 Active Active Active
Road Network Augmentation Program RN19_003 100 Road -1.9 2.8 2,052.5 Active Active Active
Road Network Augmentation Program RN20_002 100 Road -2.0 0.8 2,054.5 Active Active Active
Road Network Augmentation Program RN21_003 100 Road -2.1 -1.3 2,056.6 Active Active Active
Road Network Augmentation Program RN14_019 93.33 Road -1.5 -2.9 2,058.1 Active Active Active
Road Network Augmentation Program RN15_018 93.33 Road -1.6 -4.5 2,059.7 Active Active Active
Road Network Augmentation Program RN13_012 92 Road - -4.5 2,059.7 Active Active Active
Bridge Rehabilitation BR13_001 84 Bridge - 4.6 2,050.7 Active Active Active
Bridge Rehabilitation BR15_001 84 Bridge 0.1 4.7 2,050.5 Inactive Active Inactive
Kerb & Channel Replacement Program KC13_002 84 Kerb & channel - 4.7 2,050.5 Active Active Active
Kerb & Channel Replacement Program KC13_040 84 Kerb & channel - 4.7 2,050.5 Active Active Active
Road Reconstruction Program KC13_042 84 Kerb & channel - 4.7 2,050.5 Active Active Active
Road Reconstruction Program KC13_045 84 Kerb & channel - 4.7 2,050.5 Active Active Active
Road Reconstruction Program RR11_023 84 Road - 4.7 2,050.5 Active Active Active
Road Reconstruction Program RR12_001 84 Road - 4.7 2,050.5 Active Active Active
Road Reconstruction Program RR13_045 84 Road - 4.7 2,050.5 Active Active Active
Sewer Pipe Rehabilitation 2717 80 Sewer pipes - 4.7 2,050.5 Active Active Active
MIWR membrane replacement 2723 80 WWTP - 4.7 2,050.5 Active Active Active
Water Pipes Replacement (including cathodic protection) 2731 80 Water pipes - 4.7 2,050.5 Active Active Active
Sewer Pipe Rehabilitation 2761 80 Sewer pipes 3.5 8.3 2,047.0 Active Active Active
Water Pipes Replacement (including cathodic protection) 2773 80 Water pipes 4.2 12.4 2,042.9 Active Active Active
Sewer Pipe Rehabilitation 2800 80 Sewer pipes 4.4 16.8 2,038.5 Inactive Active Inactive
Water Pipes Replacement (including cathodic protection) 2812 80 Water pipes 5.4 22.2 2,033.1 Inactive Active Inactive
Bulk services bins 3322 80 Landfill - 22.2 2,033.1 Active Active Active
Bulk services bins 3324 80 Landfill 0.0 22.3 2,033.0 Active Active Active
Bulk services bins 3326 80 Landfill 0.0 22.3 2,033.0 Inactive Active Inactive
GPS Tracking System 5004 80 Heavy fleet - 22.3 2,033.0 Active Active Active
GPS Tracking System 5005 80 Heavy fleet 0.3 22.5 2,032.7 Active Active Active
Ad-hoc Capital Projects
Service Asset Sub-Asset Useful Life Nominal Cost
Project Name Project ID Class Class (Years) ($)
ABCDE Recreational Swimming pool 30 20,000,000New Swimming Pool
The money has to
come from
somewhere, so let’s
switch off $20M
worth of projects
29
Financial Year FY 13/14A FY 14/15E FY 15/16E FY 16/17E FY 17/18E FY 18/19E FY 19/20E FY 20/21E FY 21/22E FY 22/23E
Year Number Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Base caseCapex PM Score 6.53 6.62 6.57 6.53 6.48 6.36 6.67 6.59 7.01 7.10
Risk Score 7.72 7.18 7.34 7.46 7.48 7.50 7.51 7.46 7.49 7.50
O&M PM Score 7.74 7.58 7.63 7.62 7.60 7.62 7.61 7.58 7.60 7.60
Risk Score 6.63 6.71 6.66 6.58 6.52 6.43 6.76 6.67 6.77 6.64
LoS PM Score 7.59 7.03 7.19 7.30 7.31 7.33 7.34 7.30 7.32 7.33
Risk Score 6.96 6.77 6.82 6.80 6.78 6.80 6.80 6.78 6.79 6.79
Scenario 1 - new swimming poolCapex PM Score 5.61 5.69 5.64 5.61 5.57 6.10 6.70 5.66 5.73 5.65
Risk Score 6.63 6.17 6.31 6.41 6.42 6.45 7.61 6.41 6.43 6.44
O&M PM Score 6.65 6.51 6.56 6.54 6.53 6.54 7.00 6.51 6.52 6.53
Risk Score 5.70 5.76 5.72 5.65 5.60 5.52 6.54 5.73 5.82 5.71
LoS PM Score 6.52 6.04 6.17 6.27 6.28 6.30 7.00 6.27 6.29 6.30
Risk Score 5.98 5.81 5.86 5.84 5.83 5.84 6.70 5.82 5.83 5.83
INTERPRETING LCCAMP MODEL
RESULTS
1
30
INTERPRETING LCCAMP MODEL
RESULTS Financial Year FY 13/14A FY 14/15E FY 15/16E FY 16/17E FY 17/18E FY 18/19E FY 19/20E FY 20/21E FY 21/22E FY 22/23E
Year Number Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Base caseCapex PM Score 6.53 6.62 6.57 6.53 6.48 6.36 6.67 6.59 7.01 7.10
Risk Score 7.72 7.18 7.34 7.46 7.48 7.50 7.51 7.46 7.49 7.50
O&M PM Score 7.74 7.58 7.63 7.62 7.60 7.62 7.61 7.58 7.60 7.60
Risk Score 6.63 6.71 6.66 6.58 6.52 6.43 6.76 6.67 6.77 6.64
LoS PM Score 7.59 7.03 7.19 7.30 7.31 7.33 7.34 7.30 7.32 7.33
Risk Score 6.96 6.77 6.82 6.80 6.78 6.80 6.80 6.78 6.79 6.79
Scenario 1 - new swimming poolCapex PM Score 5.61 5.69 5.64 5.61 5.57 6.10 6.70 5.66 5.73 5.65
Risk Score 6.63 6.17 6.31 6.41 6.42 6.45 7.61 6.41 6.43 6.44
O&M PM Score 6.65 6.51 6.56 6.54 6.53 6.54 7.00 6.51 6.52 6.53
Risk Score 5.70 5.76 5.72 5.65 5.60 5.52 6.54 5.73 5.82 5.71
LoS PM Score 6.52 6.04 6.17 6.27 6.28 6.30 7.00 6.27 6.29 6.30
Risk Score 5.98 5.81 5.86 5.84 5.83 5.84 6.70 5.82 5.83 5.83
2
31
INTERPRETING LCCAMP MODEL
RESULTS Financial Year FY 13/14A FY 14/15E FY 15/16E FY 16/17E FY 17/18E FY 18/19E FY 19/20E FY 20/21E FY 21/22E FY 22/23E
Year Number Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Base caseCapex PM Score 6.53 6.62 6.57 6.53 6.48 6.36 6.67 6.59 7.01 7.10
Risk Score 7.72 7.18 7.34 7.46 7.48 7.50 7.51 7.46 7.49 7.50
O&M PM Score 7.74 7.58 7.63 7.62 7.60 7.62 7.61 7.58 7.60 7.60
Risk Score 6.63 6.71 6.66 6.58 6.52 6.43 6.76 6.67 6.77 6.64
LoS PM Score 7.59 7.03 7.19 7.30 7.31 7.33 7.34 7.30 7.32 7.33
Risk Score 6.96 6.77 6.82 6.80 6.78 6.80 6.80 6.78 6.79 6.79
Scenario 1 - new swimming poolCapex PM Score 5.61 5.69 5.64 5.61 5.57 6.10 6.70 5.66 5.73 5.65
Risk Score 6.63 6.17 6.31 6.41 6.42 6.45 7.61 6.41 6.43 6.44
O&M PM Score 6.65 6.51 6.56 6.54 6.53 6.54 7.00 6.51 6.52 6.53
Risk Score 5.70 5.76 5.72 5.65 5.60 5.52 6.54 5.73 5.82 5.71
LoS PM Score 6.52 6.04 6.17 6.27 6.28 6.30 7.00 6.27 6.29 6.30
Risk Score 5.98 5.81 5.86 5.84 5.83 5.84 6.70 5.82 5.83 5.83
3
32
INTERPRETING LCCAMP MODEL
RESULTS Financial Year FY 13/14A FY 14/15E FY 15/16E FY 16/17E FY 17/18E FY 18/19E FY 19/20E FY 20/21E FY 21/22E FY 22/23E
Year Number Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Base caseCapex PM Score 6.53 6.62 6.57 6.53 6.48 6.36 6.67 6.59 7.01 7.10
Risk Score 7.72 7.18 7.34 7.46 7.48 7.50 7.51 7.46 7.49 7.50
O&M PM Score 7.74 7.58 7.63 7.62 7.60 7.62 7.61 7.58 7.60 7.60
Risk Score 6.63 6.71 6.66 6.58 6.52 6.43 6.76 6.67 6.77 6.64
LoS PM Score 7.59 7.03 7.19 7.30 7.31 7.33 7.34 7.30 7.32 7.33
Risk Score 6.96 6.77 6.82 6.80 6.78 6.80 6.80 6.78 6.79 6.79
Scenario 1 - new swimming poolCapex PM Score 5.61 5.69 5.64 5.61 5.57 6.10 6.70 5.66 5.73 5.65
Risk Score 6.63 6.17 6.31 6.41 6.42 6.45 7.61 6.41 6.43 6.44
O&M PM Score 6.65 6.51 6.56 6.54 6.53 6.54 7.00 6.51 6.52 6.53
Risk Score 5.70 5.76 5.72 5.65 5.60 5.52 6.54 5.73 5.82 5.71
LoS PM Score 6.52 6.04 6.17 6.27 6.28 6.30 7.00 6.27 6.29 6.30
Risk Score 5.98 5.81 5.86 5.84 5.83 5.84 6.70 5.82 5.83 5.83
4
33
INTERPRETING LCCAMP MODEL
RESULTS
LoS
PM Score: 7.59
Risk Score: 6.96
Cost of Service Score (PM): 1.60
Cost of Service Score (risk): 1.59
CS Score (PM) 8.07
CS Score (risk) 8.07
CapexPM Score: 6.53
Risk Score: 7.72
Net Capex Forecast: 23.4M
Capex Budget: 30.0M
O&MPM Score: 7.74
Risk Score: 6.63
O&M Forecast: 99.8M
O&M Budget: 100.0M
Dashboard summary – BASE CASE
34
INTERPRETING LCCAMP MODEL
RESULTS Dashboard summary – NEW SWIMMING POOL
CapexPM Score: 5.61
Risk Score: 6.63
Net Capex Forecast: 43.4M
Capex Budget: 30.0M
O&MPM Score: 6.65
Risk Score: 5.70
O&M Forecast: 101.8M
O&M Budget: 100.0M
LoS
PM Score: 6.52
Risk Score: 5.98
Cost of Service Score (PM): 1.60
Cost of Service Score (risk): 1.59
CS Score (PM) 8.07
CS Score (risk) 8.07
35
TO BUILD OR NOT TO BUILD?
With the correct data, and granularity of data, LCCAMP can
provide clear answers (like in this example).
The tool serves to help a council make an informed
decision.
It doesn’t make the decision and can’t replace qualitative
assessment and conversation about asset options – but
information should help this conversation.
36
THANK YOU