Management - Bland Shire · Bland Shire Council Asset Management Plan 2015 Section L - lntroduct¡on What Council Provides To support the community, Council maintains a network of

Bland Shire Council Asset Management Plan 2015

Table of ContentsSection 1 -lntroduction........What Council Provides.The Va lue of I nfrastructu re....................Council's Asset Management Goals.......Asset Management Flow Chart...Com munity Engagement and Asset Management..........Core and Advanced Asset Management ...

Core Asset M anagement Performa nce Ta rgets..........

Section 2 - Levels of Service...Current Levels of Service.........Desired Levels of Service.........Road Classification............Service Levels - Road Hierarchy.................

Section 3 - Future Demand..Demand Forecast.......Demand Management P1an.......

Changes in Techno1ogy..................New Assets for Declining Growth..

Section 4 -Lifecycle MaAcquisition...Assessment of Requirements..Asset ldentification and RecordAsset Creation, Acquisition and U

Selection Criteria.Maintenance ofAssetRoutine MaiRisk ManagementRenewalAsset Renewal P|an.........Disposal

Asset Rationalisation

Section 5 -Plan lmprovement a itoring...Financial Statements and Projections.........Lifecycle Costs......Funding Strategy........Valuation Forecasts.Key Assumptions Made in Financial Forecastslmprovements to Key AssumptionsAsset Management Systemlnformation Processes.....Performance Measures ..

Monitoring and Renewal Procedures............

References.

Schedules...Schedule L - Asset Management Po1icy...........

Schedule 2 - Asset Management Strategy........

Itt2

3

445

66

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9

10

1.1.

'17

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13

13

74

15

t6t6t7t71_8

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22

23

23

24

2525

26

26

26

27

29

29

303030

3T

3132

4060

Plan

Schedule 3 - Current Position........


Section L - lntroduct¡on

What Council Provides

To support the community, Council maintains a network of physical infrastructure within the Bland Local

Government Area (LGA). This infrastructure provides a platform'.'fgr economic and social development,

strengthens the link between the community and the natural 9nv,ir..9..¡-tnent

and creates a sense of place for the

local community and its visitors. This infrastructure is integral t9'tl'íe Community's well-being and their quality of

ridges aá'd .çulverts, footpaths, kerb and

spaces, larídfills, Council businesses and

life

The infrastructure assets managed by Council incl

gutter, stormwater and sewer infrastructure, recreati

community buildings.

roads, b

A comprehensive list of these infrastructu re intain uncil's Asset Register and details of theindividual asset categories are held in the sup this anagement Plan

The Value of lnfrasAll assets in t ts na Plan are audited under Council's inspectionregrme, n ets in Council's asset registers. This process allocates a

condition rat nof asset. This condition rating scale ranges from excellent tovery poor. A co ts dered to be a satisfactory level of seruice or condition. The

condition of the ncil's ition registers and is related to the services levels agreed toas part ofthe lntegrate ng process

Using this data the Gross ment value of the existing network can be calculated and the cost ofreturning a ll infrastructure s beíng in unsatisfactory condition (poor and very poor) to a conditiondeemed satisfactory which is at the st an average condition, can be calculated

The table providing details of asset categories included in this Asset Management Plan is included in Schedule 3.

It includes the size of each network, the gross replacement value and written down value of each network, takenfrom Councils SpecialSchedule 7 from the previous financialyear.

!

st theeach ind

rating ofcaptured

ning and

Bland Shire Council Asset Ma nagement Plan 2015

Council's Asset Management Goals

Council's goal in managing infrastructure assets is to meet the required level of service for each asset category in

the most cost effective manner for present and future consumers. The key elements of Council's infrastructure

asset management are:

¡ taking a life cycle approach

o developing cost-effective management strategies for the long term

o providing a defined level of service and monitoring performance

o understanding and meeting the demands of growth through demand management and infrastructure

investment

managing risks associated with asset failures

sustainable use of physical resources and

continuous improvement in asset managem

The Asset Management Plan and supporting ons key elements

of asset management. The cornerstones of

a

a

a

o defining levels of service - specifies

asset type

o condition assessment the

a life cycle manage

servtces

o financial summary - nd

a

red to de the required services

uncil for each

sset

future assets to provide the requiredlwill

. asset th ll manage its assets and the tools it will use tothis

. mon - how the P lbe red to ensure it is meeting Council's objectives

. asset man ent improve t plan

The main goal of such istoe t assets acquired support and meet the strategic and annual

objectives of the organ that cost of providing the service to the community does not outweigh the

benefits. llMM 2006 Sec 1.1 flow chart showing the relationships of the Asset Management Plan tothe Asset Management Policy, nagement Strategy, and its support plans is as follows:

2


Asset Management Flow Chart

..r:ìì¡':'^ ^.,t.

.:i,. ì) ì

ROADS, BRIDGES/

CULVERTS, FOOTPATHS,

CYCLE WAYS, CAR PARKS,

ANCILLARY ROAD

TRANSPORT

INFRASTRUCTURE

BUILDINGS, LAND

MANAGEMENT

PARKES AND GARDENS,

SPORTING FIELDS, WASTE

MANAGEMENT,

CEMETERIES, SWIMMING

POOLS, AIRPORT,

CORPORATE ASSET

MANAGEMENT PLAN

BUILDINGS AND LAND

MANAGEMENT

SEWER, STORMWATER

HARVESTING

zÈ

zo

É,l¡Jô-oÉ,

t¡J

o

CORPORÄTE ASSET

MANAGEIVIEhIT PLANTOWN AND VILLAGE

SERV¡CES

SEWER AND

STORMWATER

¡-IARVESTING

PTANSPROCEDURES

ASSET POLICY

REGISTERS

3


Community Engagement and Asset ManagementThis introduction of asset management as a future works and corporate sustainability tool must include theactive engagement of and consultation with the community to explain the impact on all people that use theinfrastructure asset network, and to determine the community's service level expectations for infrastructureassets. For example, an acceptable level of service may relate to the frequency a park is mown, or the number oftrip hazards in a length of footpath that the community deems to be satisfactory for that particular asset.

Quality information from community members and stakeholders ensures the current and future infrastructureacross the Bland LGA is managed by Council to achieve the principles of equity, access, participation and right.This information from the community and stakeholders will be integrated with data, research and technical andfinancial information to create a comprehensive Asset Management Plan.

The community engagement was developed based on the simple principle of Council going into the communityto meet with people, the objectives are to:

o gather information from the community about the condition of assets that is satisfactory to them

current form is intended to meet the requirements for the resourcing strategy of the lntegrated Planning andReporting Bill (2009) of the Local Government Act and to provide Council with the decision making capacity tomanage its infrastructure in the best interests of the community, to provide assets that deliver the service levelexpectations of the community and to ensure the maximum utilisation of Councils resources and funding.Future revisions of this Asset Management Plan will move toward 'strategic' asset management using a 'bottomup' approach for gathering asset information for individual assets to support the optimisation of activities andprograms to meet agreed service levels.

Strategic Asset Management "employs predictive modelling, risk management and optimised decision makingtechniques to establish asset life cycle treatment options and related long term cash flow predictions." (llMM2006)

4


Core Asset Management Performance TargetsThe following tables detail the key performance targets and measures for Council's core asset management.

A Details of assets established in a register

B Register maintained on an ongoing basis

c Assets mapped in Council's Geospatial lnformation System (Mapinfo)

D GIS updated on an ongoing basis

E File and annual repqrts of past studies, works

F

A Draft. minimum preferred standards

B Adopted in relevant section

A t inspection regimes developed and implemented

B ,Cgndition surveys completed at prescribed frequency

A Related sections reviewed as specified

B Asset Management Plan updated annually

5

Bland Shire Council Asset Mana gement Plan 2015

Current Levels of Service"An objective of Asset Management Planning is to match the level of service provided by the asset with theexpectations of the customer. Asset Management Planning will enable the relationship between level of serviceand cost of seruice (the price/quality relationship) to be determined. This relationship can then be evaluated inconsultation with customers to determine the optimum level of service that the community is prepared to payfor." (Page 3.6, llMM (2006))

Council has characterised service levels in two definitions aligned'w ith the llMM. These two levels of service are a

community level of service and a technical level

Community Levels of Service relate to how the m the service of eachasset in terms of safety, quality, quantity, reliabi

Supporting the community service levels developed to ensurethat the minimum community levels of et. The levels of service may relate tocost/efficiency and legislative com plia nce.

Council's Assets Team con a'categories covered by this The 'satisfaprojections of asset renewal' ing reproviding estimates he

asset is'satisfa

red level of service for all assetthe d seruice level allows Council to developfuture in support of the Long Term Financial Plan,

to be remediated or renewed so each individualch

r CouAll assets inc in this Plan d inspection regime, rated against the asset referencesheet and captu n Council's e nrc ing system. This process allocates a condition rati ng to eachindividual asset, or of asset. nd ng scale is from excellent to very poor. ln 2010 a conditionrating of average is co tobea ctory

This can be clearly demo low graph of the kerb and gutter network in the Bland LGA, whichindicates the quantity of a ch condition. Council's Asset Team are moving towards quantify each

to remediate all assets to a 'satisfactory' or above condition, and providecondition and also the funding req u redthe financial data necessary to inform the Long Term Financial Plan.

6

Section 2 - Levels of Service


Kerb and Gutter Condition

1. Excellent2. Good

5.Very Poor

80

60

40

20

0

Quality Component deterioration

Quantity Area of parks per resident

Availability Number of users versus need

Safety Pavement width and condition

7


Desired Levels of Service

Desired levels of service have been developed from the Customer Satisfaction Survey (2005, 20IIl, lntegrated

Planning and Reporting Community Consultation process (2011,-2012l' and on-going residents' feedback toCouncillors and staff through service requests and correspondence.

It was necessary that Council reduced service levels in some areas, to ensure it provides a cost effective, reliable

and safe asset based on future budget forecasts and what service levels the community were prepared to pay

for,

For example Transport infrastructure, the service level reduction included reduced design speeds for a number ofClass 5 and 6 unsealed roads as shown in the photos.

Well formed andwell &ained

Watermay goover

Full gravelGiaveimay be

thin oi patchyoover

All weather access

Council traditionally ll approa their a particularly roads. The new hierarchy

as shown in Table L below co asset including, user rates, type of users, community

benefit, whole of li prov and to the community

Service leve b the ado d hierarchy as shown in Table 2 belowd

Council has also

initiatives includ

our s part of the Asset Management Strategy. A number of

ing tng p ,adra program in summer months and the purchase of a Kirpya

crusher will assist Cou rovide quality for the dollars spent.

8

ne size

the


Table 1 - Road Classification

Road Classification Service Function Description Class

State Highway (SH) Classified main road fully funded and maintained by RTA

Regional Roads (MR) Classified main road and roads predominantly funded by RTA1

Arterial Route(AR) > 150vpa Roads distributing traffic directly between towns and villages

CBD/Commercial AccessStreet (CA)

A CBD/Commercial Access Street is a street that providesaccess to properties and businesses within the commercialcentres of the towns and surrounding villages including Councilowned car parks

Industrial Access Street(IA)

An industrial access street is a street that provides directaccess to industrial properties or streets that when connectedprovide a direct link to arterial'routes for heavy transportvehicles, :

2

Urban Street (US)access to adjoin

street is an urban street.that provides direct primarying residential properties,

Internal Road (IR)An internal road is a road located within a Bland Shire Councilowned facility., such as a Sewer Treatment Plant, WasteDisþosal Centre or Sports Facility.

Principal Rural Road(PR)> 100

A principal rural road is a road that provides a connectionbetween ru ra l:'vil lages/townsh i ps,

3

Rural Collector Road(RC)>s0

A rural collector road is a road that provides a connectionbetween rural access roads distributing traffic onto the arterialroad,network including school bus routes

4

Access Lane (AL)An Access Lane provides secondary access to adjoiningresidential properties.

Rural Access Road (RA)A Rural Access Road is a road that provides direct access toadjoining rural and/or rural residential properties.

5

Tracks/Roads not listed formaintenance (T) Unmaintained Council Roads, Crown or private roads

6

9


6

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Rural

60

1

4

no

no

yes

only atdangerouslocations

B-11

no

no

no

2m

4.6m

yes

no

12 months

6 months

2 weeks

12 months

5

NA

NA

NA

NA

NA

NA

NA

Urban

50

3 months

6months

2 weeks

9 months

4

80

2

3

no

no

yes

only atculverts &

curves6-8

yes

yes

4.6

yes

if required

4-6

tl.

. yes

.,:.'. '.4m'.¡ :'

4.6

yes

if required

1 month ,.

3 mol'iths

1 week

6 months

Rural

100

Sealed/Gravel

2

3

no

no

yes

over crest

...: I .i,Ves soaced 250m

.i.. . i

't .t ì

3

Urban

50

,.t,.

no.. :, r i'

... :

,N4,. '

NA.

NA

NA

:..r,:'100'ì:: i :

Rural

Seàledì .. ..

2 lane

,3ì.:..ì: '

ves.. ,. I

': .OV€f crests':. ,

',' yes spaced25.0m

yes

yes

4m

4.6m

yes

if required

1 week

3months

1 week

3 months

. .i .:. : ., nO .r..r ..iì.'

ìì..: :. .¡tì:r!

2

Urban

50

Sealed ,'.t, .t .

2 Lane

yes

yes

no

no ^ i'i.: :..;t.:,

NA

NA

NA

NA

NA

NA

NA

1 week

yes spaced150m

4

yes

yes

yes

6m

5.5m

yes

if required

2 days

1 month

24 hours

1 month

1

100

Sealed

2 Lane

3.5

yesI i.ii

yes

yes '.

yes

Signs-Crests

Signs-Curves

Vegetation Cleara nce-Shou lder

Vegetation Cleara nce-Heights

Shoulder Grass Sprayed Annually

Roadside Slashing

Pothole Patching Response Time

Guideposts Defect- Response time

Warning Sign Defect Response Time

Vegetation Defect-Response T¡ me

Service Levels-Road Hierarchy

Design Speed KPH

Surface

Travel lanes

Lane Width (Metres)

1m Sealed Shoulder

500mm Sealed Shoulder

1m Gravel Shoulder

Line Marking

Guideposts

Roughness Counts/i ntervention

Signs-Speed Advisory

Table 2- SERVICE LEVELS

L0


Demand Forecast

Factors affecting demand include population change, changes in demographics, seasonal factors, vehicleownership, consumer preferences and expectations, economicawareness for example.

cultural practices and environmental

Demand for infrastructure is generated predominantly th

. an increased utilisation of existing i bro

O the requirement for new infrastructure the

The demand created by these two circu requires s to consider the ramifications to existinginfrastructure networks and the ability of th to cope the increased infrastructure. This analysisapplies in all cases ranging from new subd rncre

or

ment

on an existing sewer network and

networks potentially creatíng then and demand.

treatment plant, to that sameneed to upgrade that exist

Demand

Demand forupgrading ofinclude non-asset

The planning for infrastinfrastructure and its abilinfrastructure.

on rnc d

to co ¡l

n ha ination of managing and maintaining existing assets,

ing to meet this demand. Demand management practices

n managing failures.

nd is a constant process of review and assessment of existingwith increasing demand, versus the need to augment with new

Demand on infrastructure is created through increased utilisation generated from a growing population and

changing patterns of behaviour, ranging from social demographics to transport options and solutions. Often thisincreasing demand will stem from urban or residential growth increasing the utilisation of a range of communityinfrastructure

Section 3 - Future Demand

h

traffic

due

rvices willassets and

ns, tnsuflng

7L


Council develops strategies for demand management on single or groups of affected assets and continues tomanage the relationship between existing and new asset requirements in the context of asset management. Thisdemand management also includes asset rationalisation as discussed in this plan.

This demand forecasting and analysis is based on Australian Bureau of Statistics 2006 data and the NSW

Department of Planning projections. The outcomes of these plans form elements of future capital worksprograms captured in Council's Long Term Financial Plan,

Changes in Technol

Technology ch st to ivery of services covered by this Plan at presenttime. Ch co at I review of the Asset Management Plan.

New Assets for h

Population forecast indicate I be very few new assets required to meet growth as this data indicatesthat Council has a negative 75%.

The demographics indicate Bland Shire has an ageing population. ln the future capital items required will need tobe funded from the Council's general income. With decreasing revenue streams from a declining population andincreasing demands from an ageing population upgrading or renewal of existing infrastructure, will need to bereviewed with this mind.

e

L996 6,7OO 1,000 'Eéõline in demand

2007 6,700 1,100 lncrèäse. demand age services

2006 6,300 1,100 Further e in demand

2071 6,100 1,100 Further decliiie in demand

2016 5,800 1,100 declineF nd

202L 5,600 nd with increasedre on age seruice facilities

decl tne tn

2026 5,400 decline in demand

tntn ob

12


Section 4- Lifecycle ManagementLife cycle management details how Council plans to manage and operate the asset category at the agreed level ofservice while minimising life cycle costs throughout the useful life of the asset.

This section identifies and de the the asset management life cycle of local government

assets, name nce, renewal , and disposal

AcquisitiThere are six

L planning

2. assessment of requi

3. feasibility study

4. acquire (procure or

ro ase of the cycle. They are:

construct)

5. asset identification, recognition and recording and

6. recording and accounting

These elements are not carried out in an entirely sequential manner; some elements overlap and the planning

element should be evident in all other elements.

Acq uisition

13


Congruence of the asset management process with all stages of planning is vitalto ensure the process adds value

to an organisation. Ad hoc asset management processes are unlikely to result in optimum asset management, forexample to have assets acquired, maintained or disposed of in accordance with the organisation's goals and

objectives. lt can have serious consequences for Council, particularly in longer-term sustainability.Sound and effective use of planning in all phases of the asset management cycle will assist Councilin:

¡ setting levels for service deliveryo assessing the functional adequacy of existing assetso identifying surplus or under-performing assetso assessing the assets required for new policy initiativeso evaluating options for asset provision (for example, private ver3us public investment)o evaluating options for funding asset acquisitiono ensuring funds are available when requiredo ensuring assets are maintained and disposed of in an optimum manner ando evaluating asset management performance, with lhelgoa

.. ..t'. .

The development of an Asset Management Plan as part,óii Counciof delivering value-added asset management. The Plan m

integrated with Council's strategic and othe a nning docu

Assessment of Requirements

Assessing Council's requi rsam nd

I of continuó.us improvement

l's planning proiesses provides the best means

mplete asiet'Ínanagement cycle and bet.a

r

future services and organiAppropriate and effective

It involves making judgements onthat may change at the next election

,ls by the longer-term Financial Plan requirements thatly apply strategic thinking in makingmust transcend the impacts of e

predictions to mi ndu

Questions th be satisfa a

¡ What a s are

d

nrng,

nd the

are

p

r delivery?

o What cha nbe servt and over the planning time frame?

o What is the holdings?

o What are the short- uirements?

o What are the Iong-term requirements?

o What existing assets meet the requirements?

o What further assets are required?

o Does Council need to acquire further assets or can the service be met by a service provider?

o What assets are no longer viable to retain?

¡ What alternatives are available for asset provision (public or private)?

r What alternatives are available for asset acquisition (purchase or construct)?

o What new skills will be needed to operate new assets?

L4


Requirements need to be regularly reviewed, particularly as circumstances change. Such reviews should be part

of the ongoing planning processes of Council. Once requirements have been defined and the options costed, a

decision on the best option can be made. This decision will be the beginning of further planning - the plan to

acquire the asset.

A purchasing/design and/or construction specification and a budget for the asset should be developed as well as,

a time frame for its acquisition and obtaining the necessary funding. A realistic budget, cash flow and timetable

must be set as insufficient funds or project management might seriously jeopardise the asset acquisition process.

This must include whole of life costing for the new asset including acquisition, maintenance, renewal and

disposal.

The key to adding value to the organisation in the asset acquisition ,element is project management. Once the

broad asset requirements are known, the process should be managed through Council's Project Management

Framework utilising a project team that has the necessary skills and experience to ensure all aspects of the

recognise that engineers and asset managers utilise the same information. lt is important, therefore, that the

professions work together to establish accepted methodologies and approaches. The asset management policies

and processes developed by Councils Asset Management Team are documented in the supporting Sections ofthis Plan to assist consistent decision making and reporting.

On acquisition, an asset is usually valued at its purchase price. The purchase price includes any costs necessary to

place the asset into service. lt is important that a value is placed on all assets, as the value and its diminution over

time, provide information for decisions made about the contribution, or otherwise, by assets to an organisation's

goals and objectives from an economic perspective.

15


Most public-sector assets, particularly long-lived assets such as buildings, roads and footpaths require

maintenance over their lives, There are basically five matters for asset maintenance consideration. They are:

t. planned maintenance

2. unplannedmaintenance

3. maintenance of asset records

4. revaluation and

5. reassessment

Planning is an important part of the maintenance phase. The time.fráme over which some assets are to be

maintained adds a degree of complexity to the planning involved. The development of planned maintenance

schedules should involve a multidisciplinary approach. lt is critiCal that the planning is undertaken as theresources required to maintain the assets in optimum condition for the leagt cost will require the evaluation of a

range of factors for different assets.

The selection of appropriate maintenanceprolonging the service effectiveness of assets

but unplanned maintenance consumes resou

to be available to quickly restore assets

contingency plans (business continuity plan n

failure of major infrastructure assets has t severely-::.fli5rupt the provision of services to thecommunity

Asset Creation, Ac

New works are

upgr Plan

ca

to the

not previously exist, or works which upgrade ormay result from growth, social or environmentalfrom land development however it would appear

acquire any significant assets in the foreseeable future.

assets are identified from various sources such as the Communityand other planning documents and proposals identified by

partnerships with other organisations. Candidate proposals are inspected to verify need and to develop a

preliminary renewal estimate. Verified proposals are ranked by priority and available funds and scheduled in

future works programmes. New assets and services are funded from Council's capital works program and grants

where available.

16


Maintenance of Asset Records

ln addition to the financial and technical information requirements for statutory reporting and to enable effective

management, asset records must be kept. Maintenance of asset records adds value to the asset management

process. Appropriate asset records that record relevant acquisition, operation maintenance, renewal and

disposal information can be invaluable sources of information throughout the asset management process. The

benefits of comprehensive asset records include:

o a record for each asset containing information such as condition, fair value, location, materials and so

on

recording maintenance performed ensures that it is not doile twice and enables a review to confirm

that it has been carried out, the expenditure of that mAintenance and the subsequent change to thea

asset value

r00%

60%

s0%

40%

30%

20%

to%

o%

90%

Is.Very Poor

I4.Poor

l3.Average

r 2.Good

l l.Excellent

,".:.n*

The condition distribution of Council's assets as at L March 20L5 is shown in the graph above

Condition is measured using a 1- 5 rating system.

77


Routine Maintenance Plan

Routine maintenance is the regular on-going work that is necessary to keep assets operating, including instanceswhere portions of the asset fail and need immediate repair to make the asset operational again. Maintenanceincludes reactive, planned and cyclic maintenance work activities.

Reactive maintenance is unplanned repair work carried out in response to customer or service requests and

management/supervisory directions. Assessment and prioritisation of reactive maintenance is undertaken by

Council staff using experience and judgement.

Planned maintenance is repair work identified and recorded through Asset Edge Reflect programme. Reflectactivities include inspection, assessing the condition against failure/breakdown experience, prioritising,scheduling, actioning the work and reporting what was done to develop a maintenance history and improvemaintenance and service delivery performance.

2 llMM 2006, Sectio

Cyclic maintenance assets that is

undertaken on a re generally fallsbelow the capital th

Maintenan ce expen e

7,000,000

6,ooo,ooo

5,000,000

4,ooo,ooo

3,ooo,ooo

2,000,000

1,000,000

0

r Req.Annual Mtce

I Cur. Annual Mtce

Roads Buildings Sewer Stormwater OtherStru ctu res

L8


Generally maintenance expenditure levels are considered to be inadequate to meet required service levels

The supporting Sections of this Asset Management Plan contain information relating to the necessary funding foreach specific asset category and the subsequent growth to that funding with the corresponding development ofassets to that category. Future revision of this infrastructure Asset Management Plan will include linking requiredmaintenance expenditures with required service levels.

Risk ManagementCategories of Risk

Council has an adopted risk management framework which identifies riskin three major categories, which are as

follows

1. Opportunity-Based Risk

There are two main aspects of opportuniassociated with taking an opportunity.

not taking an opportunity and thosens

Opportunity-based risk may or may not be ically nt, it is often financial, it can have a

positive or negative outcome, a can have b rt rm outcomes, lt can be managed by

assessing the upside and d risk. Thê-.,ilse of is will make the nature of the risks

clea rer.

An example of an opportun d uncil acquisition of new financial software. Should thesoftware meet en to creased, along with staff morale. However, shouldthe software r una Council's expectations, then both productivity and

staff morale ll and sta willbe

2. Uncerta

Uncertainty-based risk is d with unknown and unexpected events. Uncertainty-based risks are;

unknown or extremely d

a

to tify, catastrophic or disastrous in nature, associated with negative

outcomes, and not possible to influence.

Examples of uncertainty-based risks for Council include: physical damage or damage to buildings by fire or flood;loss of a vital supplier; and influenza pandemics.

19


skRofAreas

Counci

nct

L.

Cou

3. Hazard-Based Risk

Hazard-based risk is the risk associated with a source of potential harm or a situation with the potential to causeharm. This is the most common risk associated with Council, as addressed by occupational health and safetyprograms. Hazard-based risks include:

r physical hazards - including noise, temperature or other environmental factors

o chemical hazards - including storage and/or use of flammable, poisonous, toxic or carcinogenicchemicals

o biological hazards - including viruses, bacteria, fungi and other hazardous organisms

. ergonomic hazards - including poor workspace design, layout or activity and equipment usage

. psychological hazards - that may result in physical or psychological harm, including bullying, sexualdiscrimination, workload or mismatch of job specification to employee capability Council generallyaddresses hazard-based risks through its OH&S prograrn. :

human resource ma

o knowledge management luding lnformation Technology)

Strategic risk is managed through Council's annual Risk Management Plan due to the potential affect a failure inthis area can have on Council's operations.

a

a

a

a

a

a

a

20


2. Operational Risk

These are risks that relate to the day-to-day operations of Council. They result from inadequate or failed internalprocesses, people and systems. The two main, interdependent components are operational integrity and servicedelivery.

Operational risk arises from inadequate internal controls, inadequate or no documentation, poor planning andimplementation, or inadequate supervision.

Council has identified the following operational risk areas or categories:

. contract administration and procurement

o Occupational Health and Safety management

. project management and delivery

public liability management

human resource management

fraud and corruption

business continuity manageme

An assessment of risks associated with serviCouncil in both categori es of risk. riskevent occurring, the co

assets has identified critical risks top dible risks, the likelihood of the risk

evaluates the risk and develops

urflng mediate corrective action and 'Significant' - requiringisk M ment Framework (2010) are summarised in the

a

a

a

a

the evea risk treatment plan for ptable risks.

Critical risks, being thoseprioritised corrective action i

ificant Moderate Major Catastrophic

Almost Certain nt :Significant

tikely fsignificant Significant

Possible Significant

Unlikely Significant

Rare Significa nt Significant

Risk Level

2t


Renewal

Renewal is the periodic replacement of assets or asset components. lt is the renewal of existing assets thatreturns the service potential or the life of the asset to that which it had originally. Work over and above restoringan asset to original capacity is upgrade/expansion or new works expenditure.

ln the asset operation and maintenance phase, there will have been assessment of the asset on a continuousbasis. This history of assessment provides valuable information as the asset nears the end of its useful life, andduring its useful life at times when major expenditures are approaching. Council, armed with such informationmay choose to seek alternate asset options to support services rather than to continue with more of the same as

used in the past.

The usage of the asset, the regularity of its maintenance, the extent of unplanned maintenance and anyassociated downtime, can help to determine the retirement or disposal date of the asset. The current value ofthe asset is also a factor that should be considered. lts value may be such that an earlier or later disposal date is

indicated. Two other factors that must be carefullytechnical and commercial obsolescence aspects of an itionln developing an asset renewal profile, there are a nu mber of concepts to consider:

. asset age - the elapsed time since asset

tn assessini the condition of an asset are the

nd brdught into service

. current replacement cost as new -full-cost attribution basis. ln the ca

design and co nstruction and the ind nstru

et. This cost is calculated on a

assets, the cost will include the cost ofuisition

a useful life of theprofile

used to develop the asset renewal

cost as new, to developremaining useful life in

strategies to deal with

ning for the transfer of

here

22


Asset Renewal Plan

Assets requiring renewal are identified from condition data obtained from the asset register. Candidate proposals

are inspected to verify accuracy of condition and to develop a preliminary renewal estimate based on adopted

unit rates. Assets identified for renewal are ranked by priority and available funds and scheduled in future worksprograms.

Renewal will be undertaken using 'low-cost' renewal methods where practical. The aim of 'low-cost' renewals is

to restore the service potentialorfuture economic benefits of the asset by renewing the asset at a cost less than

replacement cost where possible. Renewals are to be funded from Council's capital works program and grants

where available.

Disposal

Disposal, retirement or rationalisation of assets ge

needs. Assessment of the need for assets is a part ofmeeting the needs and expectations of t mmunity. C

options for meeting the community se

required to confirm community acceptance

will occur due to chaírges in community demands orprocess that determines whether it is

status quo añd' investigating innovativeis all pa rt rocess. Extensive community consultation is

ion and must be taken within theAs with acquisition decisions,integrated planning framfinancial and budgetarydemolition should be consi

The

consideredgrowth of Co asset base,

community

ofana requiil that a

overawhen

ural ritage

ivery needs, corporate objectives,

bjectives. Disposal options including

ion plan.ints a all o

ng the acquisitthe o

Currently there is no

funding to maintain th

n, whilst tng all the services required of Council.

relati ip between the growth of Council's asset base and the subsequent

llwill be addressed by:e ts

the life cycle applies to all assets, some may not be

ere must be a defined relationship between thecapacity to rñaintain the service delivery of that asset base to meet

funds to these assetso improving the distrib

¡ funding asset renewal and maintenance based on condition

¡ rationalising assets as required

o managing assets to meet community service expectations

23


Asset RationalisationThe reassessment of an asset's usefulness to Council should be made on a regular basis, on two criteria. They are

t. the need for the asset. Does the organisation have a continuing need for the asset? ls the asset stillproviding a required service to the community? ls that service provision what the customers expect? ls

there a more cost-effective way to provide that service?

2. the useful life of the asset. At acquisition, the asset will have been designed for a useful life, dependent

on the factors outlined in the section on useful life. Whe rs change, the useful life of the asset

should be reassessed. Usage of the asset may have or less than planned. The condition ofin its life, Any change in the expectedthe asset may be better or worse than expected

useful life of an asset will have accounting impl the ofthe asset may need to be adjusted.

NB: The ultimate aim is that through Asset Rational nd other means p is narrowed between the 10

year Asset Management Forecast Plans and the 10 ancial Management ability forecasts

24


Section 5 - Plan lmprovement and Monitoring

This section contains the financial requirements resulting from all the information presented in the previous

sections of this infrastructure Asset Management Plan. The financial projections will be improved as further

information becomes available on desired levels of service and current and projected future asset performance.

Financial Statemen rojections

lowing graph jected operating caPitalThe financial projections are shown in

expenditure (renewal and upgrade/expansio that all in 2010111 dollar values

Estimated pgrade/New Assets

2011t12 12J13 13t14 14115 15/16 16117 17118 18/19

Year

25


Life Cycle Costs

The life cycle cost of an asset is defined as 'the total cost of that asset throughout its useful life including

planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs." This value

must be used in the development of estimates for the delivery of new assets for Council. The introduction of life

cycle costing will dramatícally change the forecast capital expenditure listed above as capital costs. Capital costs

will no longer reflect just'build' cost but will include whole of life.

Whole of life costs, on the other hand, are defined as the average annual cost required to sustain the agreed

service levels. Whole of life costs include maintenance and asset consumption (deprecíation) expense.

This can be compared to 'life cycle expenditure' to give an indicator of sustainability in service provision. Life

cycle expenditure includes maintenance plus capital renewal expenditure. Life cycle expenditures will vary

depending on the timing of asset renewals

A gap between life cycle costs and life cycle expen re

paying their share of assets they consume. The toidentify levels of service that the community nee toprovide the services. Future revisions of th Plan will inclu s ratio.

Funding StrategyProjected expenditu re id

developer contributionsterm financial plan.

ncial P nrsnt fund e

as

un

capital budgets and include

n the Council's L0 year long

very few additional assets added to the asset base

ries ( ted replacement cost or fair value) will vary depending on

the rates of addition o ts, di I of old assets and consumption and renewal of existing assets.

The entire asset base is requ lued annually under the lntegrated Planning and Reporting Bill (2009)

This requires each asset condition to be always accurate as the condition is directly proportional to the annual

depreciation percentage applied to the renewal cost of the asset.

This process is applied to each asset and subsequently each asset class, determining the renewed value of the

asset class, the annual depreciation and the cumulative depreciation of the asset in total.

26


Key Assumpt¡ons Made in Financial ForecastsThis section details the key financial assumptions made in presenting the information contained in this

infrastructure Asset Management Plan and in preparing forecasts of required operating and capital expenditure

and asset values, depreciation expense and carrying amount estimates. lt is presented to enable readers to gain

an understanding of the levels of confidence in the data behind the financial forecasts.

Key financial assumptions made in this Asset Management Plan are:

1. Unit Rates

Council has quantified unit rates for all assets for the construction or purchase cost of each asset. ln some cases

these unit rates are simply the purchase price of an asset for example a pit lid, or as complex as the inclusion of a

variety of materials, plant and labour rates combined to create a single unit rate for an asset.

complex na the develo of rates can leád to the over or under stating of a particular element of

a particular m nce event. m holing in sealed roads is quantified at a rate of $881.34m3. This

figure is extrapol rate material divided by the potential depth and area of average

pot holes to create a

27


3. Depreciation Methodology

Council adopted a depreciation methodology used to develop the fair value of its assets as requiredby the Division of Local Government.

The depreciation methodology adopted is a Straight Line Depreciation Method. The methodologycan be diagrammatically represented as follows.

Flat Line Depreciation9,000

8,000

7,0o0

6,000

5,000

of.ËîtcoCLx]¡J

l!?-CLlE

L.,

4,

3,

000

000 -þsp¡g6i

ated Amount

2,000

1,000

0

r2 4 5-

Essentially, lifecyclthe condition

five distinct phases. These phases are categorised by

predicting the eventual total life of an asset there is onlynal straight-line approach, A miscalculation ol 5o/o in total life

annual calculation of depreciation

Due to the significantsmall room for error usiwill drive a 5% (material) e

28


lmprovements to Key AssumptionsAccuracy of future financial forecasts may be improved in future revisions of this infrastructure Asset

Management Plan by the following actions.

1. lmproving Unit Rate Accuracy

As described above Council has quantified unit rates for all assets for the construction or purchase cost of each

asset. Whilst the complexity of the development of these unit rates may allow an element of error to be included

in the original rate, the continual review of these rates, based on financial data captured against each asset, will

see a reduction of error in the unit rates. The Asset Management 'system', by capturing the necessary data to

supply the legislated financial reporting requirement, will itself redefine the unit rates as more and more data is

captured to refine the values.

2. lmproving Maintenance Rate

As with the unit rate above, there is the p

complex nature of the development of these

a particular maintenance event.

A periodic review of these figures utilisinrates

3. lmproving

As the depreciationasset condition and

the organisatio

Asset Ma entCouncilwillmainta

This data will be linke

exported from that form

r to existthe ove o

in

rutheSé maintenance unit rates as thender stating of a particular element of

nc d against each asset will refine these unit

by the asset condition, a continual 'live' update ofity's asset will improve the financial information of

. .. l'.1 .

in theinew corporate system Tech 1 "One Council" software program

uncils al lnformation System (Mapinfo),This data is readily available to be

a vafl formats to suit a variety of needs. These needs include:

o Works programming

o Current Asset Fair Value data

o Expenditureforecasting

o Condition summary

o Extrapolation/manipulation of data and

o Asset location and details

The responsibility for Asset Management is documented in Council's lnfrastructure Asset Management Policy

(EDRMS Doc.lD 33282t1

29


lnformation Processes

The key

a

a

a

a

a

a

a

The key

information sources into this infrastructure Asset Management Plan are:

the asset registerdata on size, age, value, remaining life of the network

the unit rates for categories of work/material

the adopted service levels

depreciation rates etc

projections of various factors affecting future demand for services

correlations between maintenance and renewal, including çonsumption models

data on new assets acquired by Council

information sources from this infrastructure Asset,Management Plan are:

The

and

PeThe

tained in

I budget

nt Plan are

o the degree to 1-5 etailed works programs, budgets, business plans and organisational

structures take i cco e 'global' works program trends provided by the infrastructure Asset

Management Plan

Monitoring and Renewal ProceduresThis infrastructure Asset Management Plan will be reviewed during annual budget preparation and amended torecognise any changes in service levels and/or resources available to provide those seruices as a result of thebudget decision process.

The Plan is updated annually and this first revision being completed in March 20L4to fit ¡nto the budget reviewprocess, the revision will be due in March 2015. Future versions of this Plan will identify those sections of thePlan that have been improved.

30


References

lnternational lnfrastructure Management Manual', lnstitute of Public Works Engineering Australia,

Sydney, IPWEA, 2006

lnstitute of Public Works Engineering Website, www.ipwea'org.au

a Bland Shire Council, 'Community Strategic Pla

Bland Shire'Risk Management Policy'

a

a

a Bland Shire Council, 'Long Term Fi an'

a Bland Shire Council,'Asset Manageme

a Bland Shire Coun

a

nte nfra Assets'

. SCHEDULE 1-

. SCHEDULE2-¡ SCHEDULE 3-

Management Policy

Management Strategy

Current PositionAsset

SCHEDULES

31

---

---#


SCHEDULE t - Asset Management Policy

POLICY ADOPTED: 27 t{lAY 2011

corporate

for all ofc Plan

Statement of Commitment

Bland Shire Council recognises that care and management of itS iñfrastructure assets is an essentialelement in achieving the organisations stated mission and to meet the present and future needs of theshire community

Aims and Objectives

Aims

To provide the overall framework to gui

infrastructure assets in alegislation;

Local Government

Roads Act 1993

by

CommunityPrepare an

m of Bland Shire Council'splying with the followingand

and ) Act

o Esta objectives for asset management based on servicedeliveryAccount ng assets and any new asset solutions proposed in Councilsa

a

a Provide resources to re asset data and integrate asset information as a core component of

Delivery ProgramStrategy and relevant Asset Management Plans to suppott the

Community Strateg d Delivery Program

Councils corporate database in order to provide support for the implementation of lntegratedPlanning and Reporting legislation

. To establish procedures that provide a simple, systematic and readily usable risk managementapproach to the maintenance of public roads and infrastructure

o Maximising value for money by adoption of life - cycle costing, combined with disciplinedperformance management and review of asset utilisation and service levels

. Assigning accountability and responsibility for service delivery together with asset management

. Provide relevant information for the annual financial statements in line with the LocalGovernment Code of Accounting Practice and Financial Reporting

. Promoting sustainability to plan for the needs of future generations

33


ObjectivesTo ensure that the importance of effectively and efficiently managing Council's assets for present and

future generations is clearly recognised by Council and the community, in accordance with the Council's

Charter under Section I of the Local Government Act 1993 (as amended).

To reinforce Councils commitment to ensuring a sustainable future, whilst complying with the Local

Government Amendment (Planning and Reporting) Act 2009.

To provide a systematic method of identification, evaluation and prioritisation of maintenance works on

Councils road network that will assist Council's decision-making process in its annual budget

formulation.

OverviewAsset management is a systematic process to guide the planning, acquisition, operation andmaintenance, renewal and disposal of assets. lts objective is'to maximise asset service deliverypotential and manage related risks and costs over the entire life of the,asset.

The importance of infrastructure assetsbudgets means that asset managementPlan and Delivery program of Council

lnfrastructure assets arc fundame

hire community and their significance for CouncilI component to supporl the Community Strategic

rvice delivery and planning andand management oversight. This

ement essential for effective strategic asset

that planning mustaddress both short

dependent on their timing the impactnd capital resources.

planning must be integrated with Council's overall

responsibility for them requires strongoversight is crucial to achieving themanagement

The long lived naturebe based on an undeand long term planning

I nfrastructu alon planni and

d theof the costs th

an

will vary g

According ly,financial and pla order for Council (and the community) to understandeach asset's costs n effectively for asset acquisition, operation and maintenance,renewal and

This policy provides the ework to guide the strategic management of Bland Shire Council'sinfrastructure assets and will pported with the development of a more detailed Asset ManagementStrategy and Asset Management Plan- The Corporate Approach.

34


Asset

Management Principles

Council acknowledges the following principles in determining its approach to asset management

. Seruice delivery forms the basis for asset management¡ Asset management will be integrated with corporate, financial, busrness and budgetary

planning and will form an essenúral component of the Community Strategic Plan andDelivery programs

. lnformed decision making, incorporating a life cycle approach to asset management whilstminimising public liability exposure and providing a best value service to the community

. Esúaölishing accountability and responsihilityfor asset condition, use and performance¡ Susfarnability, providing for present needs while sustaining resources for future generations

with

a Achi ancial s ility assets over a period of time through the followingm

o that the base is not increased without considering the impact on Councilsntenance and renewal of the assetability futu

o Not repl that are determined to be underutilised, at the end of theiruseful lives, consultation with the community and determining the impact of notreplacing the will have on the community

o Continually improving Councils maintenance and renewal practices and adopting bestpractice wherever possible

o lncreasing grant, contributions and other funding to ensure that assets are maintained in

an optimum conditiono Utilising technology advances and innovative solutions that assist and are relevant to

asset preservation, maintenance and reducing overall life costs

Maintaining and renewing Councils existing assets in a manner which is acceptable to Counciland the community in terms of safety, access, quality, impact on the environment, meetingcommunity needs and Council's ability to fund those works.

o

35


Regularly consulting with the community to determine whether its needs are being met.

Preparation and review of detailed asset management plans for all major classes of assets andusing these plans to assist Council to determine the priorities for capital, renewal andmaintenance expenditure.

Asset Management Responsibilities

Councilwill

r act as responsible custodians and trustees for infraétructuie'assets and maintain accurate andreliable asset registers

a

a

a

a

a

Gene

a

o

a

a

Maximising resources to achieve the best outcome for the community

resou. del.mO

a

a

set I

ensureservrce

rt ance

and ble i

organisatio n in achieving the Asset Management

n available resourcesis presented to Council for decision making

36


Directors and Managers

. assist the General Manager to develop the Corporate Asset Management Policy, Strategy andPlan

o as asset "owners" develop and take responsibility for asset management plans for individualasset groups, using the principles of life cycle analysis

. develop and implement asset improvement plans for individual asset groups

. implement improvement plans (maintenance programs, capitalworks programs) in accordancewith Asset Management Plan and Councils Management Plan and Budget targets

. deliver levels of service to agreed service, risk and costs standardso prêsêrìt information to the GM and Council in terms of asset life cycle risks and costs

Asset Management Program

m pe co parks and gardens, ovals and recreation

rese cemeteries, s furniture, parking areas, sewerage systems, saleyards,

caravanhousing

m s, Council vehicle and plant fleet and Council owned

ldings, I n nology (lT) computer networks and equipment.

Sustainability is ieved n Council allocates sufficient resources to the maintenance and

aerod

renewal of itsuseful life.

that they can be replaced or renewed at the end of the assets

37


Related Policies

Community Strategic Plan

Risk Management Policy

Related Legislation

Local Government Act 1993 (as amended)

Local Government Amendment (Planning and Reporting) Act 2009

Roads Act 1993

Civil Liabilities Act 2002

I nternational lnfrastructure Manag ntStatewide MutualAustRoads Guide

Ma

10. ASiNZS1 1. ARRB T

rso

Review

The Policyoperational am

input within 4 years from date of adoption, withCouncil's approval

Refere

1

234567I9 an

s

38

¡


Authorisation:

Status Committee

Manex

Owner DIRECTOR ENGINEERING SERVICES

EDRMS Doc. lD 332821

Superceded Policy

Review DateRevision Number Minute Number,,?,:.,..

Date of Adoption/Amendment

.;:,:t,'0 33t20 December 2005

18 April 2011121 March 2006

May 201527 May 2011 2

Related Council Policy / Procedure

Community Strategic Plan Policy ,i/¿2,?,".. "1

?.,Risk Management Policy

39

Bland Shire Council Asset lVlanagement Plan 2015

Responsible Officer

Asset Team -

commenced

Asset Team -

commenced

MJT - commenced

aa

Resources

Engineering Services


Asset Team-lnvestigate use of"reflect"

a

Ensure current utilisation rates are being monitored and stored in a

database

lnclude future demands as an item in the community consultationstrategy

Develop/adopt industry best practice Asset Condition Check lists and

program annual inspection program

Action

Future Demands

To compile a complete asset

condition rating of all councilassets:

20L4

41.


A Strategy on any approach to effective management provides a better understanding of how to align

commitment to the delivery, asset management being no different. This strategy outlines the steps required to

align the asset portfolio so that it best meets the delivery need of the local community now and in the future,

allowing the aims, objectives and commitment of council asset management policy to be achieved and aligning

the management of assets with Councils Community Strategic Plan and Delivery Programs.

At the time of writing this overview Bland Shire Council has no confirmed approach or adopted method forthe

management of its asset base, in fact very little in the way of a systern.except the recording of the assets and

their replacement value exist for the greater part of council "Fair Válue" for Councils buildings and road assets

have been completed in accordance with AASB 116 and local goúernment requirements however there is a

distinct need to scrutinise existing data, particula ments and develop a rigorous asset system to

store and maintain existing and future data.

Council is exposed to varying risk from unknown conducting aõtivities on or in council

assets. Council's duty of care under the O isto p place and implement safe work

practises for all employees this is inclusive rs; uncil's obligation to meet this statutory

requirement is deficient as no formal ma t are in n many of Council's community assets.

To follow on this issue exposes il to the lity o failing to provide a safe

workplace, public liability al inju reé iá place for preventing unauthorised

or unqualified work being o bers, I is also exposed to prosecution under

environmental laws, conside provided it would be expected that council manage theut by

u ncil

commr

assets according

the LGSA sho

to do da to council's reputation within the community and

Managing an effectively o xrmum servrce levels requires recording accurate and current

information on limited to t llowi the identification of the asset, function, current cost to

provide, current ma nt plan, ral US, life cycle, role in council's community strategic plan,

occupancy, visitation future utilisation, and priority within council's asset register. This

information provides a to develop counci l's asset management plan

The strategic approach outlined e body of this document will ena ble a systematic method in collection of

accurate asset data and overview of what council is actually managing, this will provide insight into what for

dollar value council is achieving and what level of service is being provided to current assets, this will provide the

basis of the determination of what category the asset will be placed under in the overall asset management plan.

The nature of local government is such that the majority of council assets exist under the management of the

engineering seruices. A review of where all asset responsibilities lie will need to be completed so Councils asset

management systems align to industry best practise and are systematic in approach. This strategy will guide

Council into the utilisation and format of the IPWEA NAMS PLUS Asset Management Plan templates a resolution

previous passed by Council.

42


ASSET MANAG EMENT STRATEGY

Step L:Buildino current asset reoistersCondition of current assets

Operotina and maintenance cost of our ossets

Utilisation rate of assets

Com m u n itv e xpectotionsFuture Demonds

What Assets does council currently manage?

l. ldentificotion of Assets

There has been no formal adoption of rs or

currently recorded by various means th ncil but

folders or hard copy. A search has found

Schedules and in some incomplete "Access" d

It would seem that each ofareas of interest in counci nancial

This process is asm

positions.

software. of assets are

in individualstaffpt via excel

ation lnfo folders in excel folders of lnsurance

not been tested for accuracy levels.

ng information on their assets or

nce.

and data is lost when staff members vacate their

t.

il.ilt.tv.V.

vr.

kn

such

43


The areas of Council's Directorate are currently Corporate, Community & Development Services, Asset &

Engineering Services and General Managers Office. Directorate responsibilities include the following;

Asset & Engineering ServicesDirectorate

Office of the GeneralManager

Gorporate, Gommunity & DevelopmentServices Directorate

RatesAnnual FinancialStatementsAnnual Budget &ReviewDebtorsCreditorslnvestmentsLong TermFinancial PlanningCouncil LeasesManage Section355 CommitteesAdministrationCustomer Service

&

T

Toy LibraIt Takes

CommunityDevelopmentYouth ServicesFamily Day CarePreschoolMobile ResourceUnitVacation Care

PLi

Corporatelnformation/RecordsManagementlnformation

. Urban SealedRoads

. Urban UnsealedRoads

: Rural Sealed. Roads. Rural Unsealed

.Roads. Urban Roadside. RTî,-. Street Gleaning. Aerodronie. Parking Areas... Private Works.. .

':-'.:',CemeterieS , ,,ri' Passive Recreation

Areas. Parks & Gardens.:, Sporting Ovals'y'T'ç9e Planting &

Ré.4.9va1. Cyclé/Walking

r,.l;.Paths.'.lRural Fire Service. State Emergency

Service

. Saleyards

. Street lighting

. Sewerage Services

. Waste Services

. Public Conveniences

. Public SwimmingPools

. Asset Management

. Council PropertiesManagement &Cleaning

. Risk Management

. lnsurances

. WH&S

. Stores Management

. Plant & DepotManagement

. Pest Control

. Noxious Plants

. Governance

. lnternal Audit

. Compliance

. Executive Support

. Human ResourceManagement

. EEO

. Training

. Payroll

. IPR Development &Review

. EconomicDevelopmenU Tourism

Responsibility Areas

Action-To comp¡le a complete identification

listing of all counc¡l assets

o Gathering of all existing data and compile into a Asset Folder on"F"Drive (temporary asset register) until a corporate system is finalised

. Agree on the type category of each asset

o Develop register into agreed type categories. Confirm register listings with management areas

. Carry out initial risk assessment of register¡ lnvestigate corporate asset system

44


What physical state are our assets in?

ll. Condition of current ossets_

Some of council's assets have this information already attached to an existing data base and for smaller group

type assets (e.g. pipes, outdoor seating) may be acceptable for the establishment of the asset register, for the

larger assets and especially the assets that house essent¡al service delivery (as identified from the initial risk

assessment) it will be critical that the information of the assessment is accurate.

To assess the current physical state of an asset will require various levels of expertise to gain accurate

information forthe required dataset and a combination of the following methods may be utilised;

bed period

many customer

bs such as potho es,

ilised with

nt patch jorut

rre

de

cu

un

re

a

r renewal or capita

d

m

woul

syste

m

tsthrougth

fo

Request (

p

id

ng

Council's current

com plaints/requests

drainage is therefore

45


Action -To compile a complete asset

cond ition rating of a ll cou nc¡l assets

Gathering of all existing condition data and compile into asset

registers in Asset Folder on "F" Drive (temporary asset register) until

a corporate system is finalisedAdopt councils risk matrix and prioritise asset tasks according

councils exposure to risk

Ensure all staff members are made aware of the importance to log

all customer service requests through the system and make training

available to staff members who regularly use the system.

Develop/adopt industry best practice Asset Condition Check lists and

program annual inspection program

Provide a five year program and budget for asset condition data

collection

a

a

o

a

a

parent costing accounts set up

re in use for the recording of

Currently, it is difficult to account for capital and maintenance expenditure on assets and attribute the

appropriate asset adjustments as the finance system has no direct links to the asset system or Councils adopted

GIS program Mapinfo.

True costing and the whole of life costs of individual assets can only be calculated and determined when the

income and expenditure is directly linked to the asset.

Asset ldParent Number : Child NumberPrincipal ActivTown Streets R2R

36000901-Park Street36500902-Acacia Street 4r0(

0903- 3655Conway Street

46


Action - Operating and ma¡ntenance cost of

lnvestigate methods to link financial, asset and GIS information so

expenditure can be directly attributed to the costs of the individualasset

Ensure Councils corporate knowledge system can provide these links

prior to upgrading/ redundancy of the current Practical program.

ou r assets

a

a

What is the usage rate of the asset?

lV. Utilisotion rote of assets

Assets are used at differing rates according

apply to councils essential service assets s

& gardens, reserves, swimming pools and co

The information that wil

for classification of High,

I ind be

lnformation on vi

Bookings

Events

Ga

Veh u

Land u

from asset

Membership ofo

tr

lds

but a

lity. The utilisãtion rate will not only

structure such as roads, footpaths, parks

the rating needs to be decided on

a

a

a

a

a

a

a

a

lncomeons

Action- Ut¡lisation rate of assets

Gathering of all existing condition data and compile into asset registers in

Asset Folder on "F" Drive (temporary asset register) until a corporatesystem is finalisedEnsure Councils corporate knowledge system can provide these links

prior to upgrading/ redundancy of the current 'Practical' corporatesystem.

a

a

47


What is the satisfaction level with the delivery?

V. Community expectotions

Asset functionality is influenced by the users, are expectations of the community being met, are community

expectations realistic or affordable and does the asset give value for dollar service. To gain this information

consultation with the users of the asset will need to be conducted and research of the customer service requests

and customer complaints systems carried out.

The results will provide council with direction and the ability to rank priorities on agreed rating of High, Medium

or Low

lnformation compiled from customer complaints and the customei service requests system should indicate

service discrepancies, type of failing and the level lwill need to address

Levels of service however must be directly aligned

with whole of life costing calculated.

What are the future demands for the asset?

Vl. Future Demonds

The future of an asset will depend on current demand, current and past utilisation rates as well as predicted

population growth and identified for inclusion in forward town planning. The rating for future demands should

be listed as importance of High, Medium. Low,

matrix and considered in budgets allocations

Action - Community expectations

Ensure all staff members are made aware of the importance to log all

customer service requests through the system and make trainingavailable to staff rnenrbers who regularly use the system

lmplement a comnrunication strategy to promote and gain feedback on

determining affordable and acceptable levels of service which thecommunity are willing to pay for (align with consultation for theCommunity Strategic Plan)

a

a

48


lnformation will be used to determine;

o Existing utilisation rates,o Trend in utilisationo Asset consumption rateo New technology

lnformation can be sourced through councils Planning Unit on LEP and growth rates for the area of asset and

consideration of the information from community consultation'

At the comp

information

r has begun to take shape and should containthe

currentconditionoperating a

utilisation rateuser satisfaction w rsron

future demand indica

It is paramount that these registers are maintained in a central asset database system and council will need to

investigate all options when upgrading their corporate data system to ensure that important corporate

knowledge and information can be stored, shared and integrated into the finance, Asset and GIS programs of

Council.

a

a

O

a

a

a

Action- Future Demands

Ensure current utilisation rates are being n-ronitored and stored in a

data ba se

lnclude future demands as an item ìn tire comrnunity consultation

strategy

a

a

nt assets

nce

a

49


Step 2:t.

il.ilt.

Ensurine the rie asset is nrovidedEnsurins qualitv management

What outcome does council require from asset management?

!, Deciding where council wants to be

The answer to the question of "where does council want

current attitudes and practises. The key outcome in a

should be;

"The provision of services responsive to the unity's

What is Asset Manacement?

"the combination of mana fina

physical assets, with the the level of

Deciding where council wants to be

nt act

lies in t sought and may affect

with Cou gement Plan 2010-2015

ng and other practices, applied to

in the most cost effective manner."

n rporate management system needs to be

in accordance with the IPWEA NAMS plus format;

usage rates, occupancy entitlements, financial position,

and life cycle costs.

To aid council in

embraced.

The system s

condition status,

records of inspecti

Council also needs from

outcomes and that service I

over servicing is eliminated

s

m to be able to determine if the assets provided meet agreeable

nually being monitored and achieved within a sustainable budget and

ave the abi

rp, mat

of man

50


Action - Deciding where counc¡l wants to be

Ensure that an appropriate budget is set aside in the 2011/12 budget toupgrade the corporate management system.

Ensure that the appropriate staff members with hands on practical

experience from finance, GIS and assets have input into the process ofpurchasing the corporate management system.

a

a

How to ensure that the right asset is provided?

ll. Ensuring the right osset is provided

ln deciding what is needed and what level

ldentify the critical assets

ldentify c

ncilwill need to research the following;

use

our current demands

a

o

a

a

a

a

Determto co nity

ration '

rasingle

rpo rrent

posa

Determ pla costs and le of life costs

Assess cu

urelsu

ldentify a

port on a

ln doing so, council will critica and identify any future funding shortfalls

5L


Action - Ensuring the right asset is provided

o Ensure current utilisation rates are being monitored and stored in a

data base.o lnclude research items in the community consultation strategyo Gathering of all existing condition data and compile into asset registers in

Asset Folder on "F" Drive (temporary asset register) until a corporate

system is finalised

Ensuring quality consistent management?

lll: Ensuring quality monqgement

Assets require different levels of m according to

with the listing from

e.g, a major

n of management

where the maintenance and environment are consistent a

d have apþro.aches incorporating

plans that progress to developing sustaina

To achieve this goa

the assets register.

I all assets

A plan will be up

infrastructu as roads,

developed, but

generic plan of man

This process will need to

ec

s,

onal a

ent listing a co e adopted

h

a

a

a

a

a

a

a

ldentify type users

ldentify owner of asset and any license or lease requirements

Assess financial position and future impact on budgets

Review service levels

Develop plan of management with community consultation

Display plans

Adopt plans

The end process wil determ ne expenditure forecasts for short and ong term budgets

52


Action - Ensur¡ng qual¡ty management

Prepare Asset Management Plans in line with the IPWEA NAMS Plus

templates.Prioritise asset categories in accordance with councils current exposure

to risk and list assets for the preparation of Plans

lnclude in community consultation strategyReview current service levels and revaluate service levels using risk

a

a

a

a

and adopted

is committed to

ent"

For council to provide a plan it to be based on an asset management system, the chosen best

practise system is IPWEA system will need to be housed and managed through a dedicated asset

module which should be entre Council's information management system

The process identified is;

All assets to be loaded into temporary "F" drive folder until council decides what informationmanagement system will be used

Asset registers will be required to be manually maintained prior to a dedicated asset managementsystem being adoptedControls on and links to the system maintenance be identified on a needs basis and to be determinedprior to purchase or upgrade of Council's lnformation Management System

a

a

a

53


ll. NationolAsset Monøgement System

The development of the documents and asset system

Asset Management plans will use the adopted format of the IPWEA NAMS Plus system. Management of the data

will be critical and council will need to write rules ensure the dataset remains valid, for GlS, asset registers and

fina ncia I accountability.

Council currently has access to the GIS program Maplnfo and Assets program Reflect for State Road

infrastructure. Further investigation will be needed to determine if existing lT resources can be utilised and

married to Councils future information management system.

Action - How do we achieve desired outcomes

Prepare Asset Management Plans in line the IPWEA NAMS Plus

tem plates

Ensure that the appropriate staff members with hands on practical

experience from finance, GIS and assets have input into the process of

purchasing the corporate matragement system.

a

a

54


I PWEA NAMS PLU S û¿ad ?o(*rye,**,î TÛ/"

DEFINE SCOPE &STRUCTURE OF PLAN

CORPORATE PLANNINGConfirm strategic objectives and establish AMpolicies, strategies & goals.

Defi ne responsibilities & ownership.Decide core or advanced AM Pan.Gain organisation commitment.

REVIEW/COLLATE ASSET INFORMATIONExisting information sourcesldentiff & describe assets.Data collectionCondition assessmentsPerformance monitoringValuation Data

Establish strategic

Establish measures &

ESTABLISH

Define & adoptAM PLAN

REVIEWANDAUDIT

decision

Fzul

uJ

oÉo-

=FoEE(ú

summary

Assess currenUdesired practices

Develop improvement plan

PLAN

ITERATIONReconsider service statementsOptions for fundingConsult with CouncilConsult with Community

IS THE PLANAFFORDABLE?

55

Bland Shire Council Asset lVlanagernent Flan 20L5

ø b*0¿ 9-¿" ûM'%o."'a? ûrrî Vo.r*ã,r't u

CorporateAssetManagementPlan

. INDIVIDUALPLANS

. Sewer

. TransportI nfra stru ctu re

. Town andVillage Service

. Buildings andPlant

ran

a

V¡II

d

cq>Fbo(I)ñ(u

9FE\-õv)

c- (ft)rto-gEbo9l-f--l Gt:c

ir

nagemPolicy

MAsset

a ent

56


MJT completed

MJT completed

MJT completed

MJT completed

MJT completed

Director - completed

MJT completed

MJT completed

Director - ongoing


' porate,serviËes '::.,"

eam

.'''l n ì"t Team:ìi:,,¡ r. . .i.ri , .,¡1..¡1"

rrì1r- 1 .

Asset Teamrì.i.rìi:: ";..'.ì\'

'îN¡

Asset Team

Asset Team. ì. .¡

.lllt I

,r", Team

:t'

Corporate Services


Gather of all existing data and compile

., r'ìiì

FU

rporateFolder

Drive (temporary asset register)final

Agree on the type of

Develop register into

Confirm register list¡ngs with ma reas

¡

Carry out initial risk assessment of register ìi:ifìt lr

Llnvestigate corporate asset system ì,,'

Gathering of all existing condition data and compile into asset

registers in Asset Folder on "F" Drive (temporary asset register)until a corporate svstem is finalised

Adopt councils risk matrix and prioritise asset tasks accordingcouncils exposure to risk

Ensure all staff members are made aware of the ¡mportance tolog all customer service requests through the system and make

training available to staff members who regularly use the system

Provide a five year program and budget for asset condition datacollection

To compile a completeidentification listing of

allcouncil assets

57


Communications Unit -completed

Director-completed

Director-completed


MJT- completed


Director - commenced

Directors - completed

unity Se

Corporate Services

Services

Corporate Services

CorporateServices/Enginee ring Se rvices

Corporate Services

",: ir'i ì¡

i:lìÌì-ìiliìr'Ìl$.flìì¡

Asset Team

.. I..,\...l. iiJ:r

on

log a

ln

rporate

m

thesecorpo

so

theinform

uted to theasset a

ster

these li rn

rrent

lmplement a communication strategy to promote and gain feed

determining affordable and acceptable levels of service whfortoare willcommu

Ensure that an appropriate budget is set aside inThe2O]-2/!3 budget toupgrade the corporate management

Ensure that the appropr¡ate staff members with hands on practical

experience from finance, GIS and assets have input into the process ofthea ma ment

redEnsure Councils

touGathering of all existing condi

Asset Folder on "F" Drive (temporaryand

ts

Ensure Councils corporate knowledgeto upgrading/ redundancy ofthe current

can

Ensure all staff members are made aware ofcustomer service requests through the

available to staff members whoke

the

m

lnvestigate methods to linexpenditure can be direct

Deciding where Council wantsto be

To compile utilisation rate ofassets

To meet communityexpectations

To compile operating and

maintenance cost of ourassets

58

Asset Management Plan 2015Bland Shire Council

Director-completed

Asset team - comPleted

Communications Unit -

completed

Asset Team-completed




Communications unit -

completed

Services

munity

ngineering


, t"'t'.:r lii'' iì

tnsrneennq 5ervlces

Community Services


i:l\:ìiiì:..ìi

urè toi:ì

Plus

tnasset

using risk

future

the commu

Prepare Asset Management Plans in line with the IPWEA

lates

Ensure that the appropriate staff members with

experience from finance, Gls and assets have ¡nput into the process ofrate ma mntthe

hands on practical

Prepare Asset Management Plans in linetemplates

e

Prioritise asset categories in accordance with coun

risk and list assets for thecurrent

ration of Plans

lnclude in community consultation strategy

lnclude research

Gathering of all existingAsset Folder on "F" Drive

co

assetis fina

Review current service levels and

and results of the research data

ce

and

allocations

How do we achieve desired

outcomes

Ensuring quality management

59


Plant & Equipment

SCH EDU LE 3

76,616,953 65,482,802Roads -Sealed 819.56km

26,0L7,265Roads -Unsealed 2,370.61km 48,486,904

L5,7O7,OOOBridges 9 bridges +47pedestrian 1.8,465,000

17,130,000Kerb and Gutter 95.36km

2,550,000Footpaths 26km 3;6V1,OOO

Shared Paths 8.3km ::':. . /':;. 2,250,009 1,6LL,000

382,24r 339,843Transport Others

6,266 23 89Sporting Gomplex

2,845PlaygroundsEquipment

2 2,r87,739Open Space-Parks

0,968 11,560,894Stormwater

22,r48,50r 10,208,000Sewer

2,98t,1t4Other Stru 4,393,298

lngs "':/ 24,72r,L98 17,49r,044Buildings

15,736,894 1,255,998

Livestock

3,3r9,345 2,724,027Swimming Gom 2

1,45L,000 L,L47,000Aerodrome 1

4,793,000rL,46t,OOO

265,853,L97 L85,944,315

6L


The current gross Replacement Value of the existing network of infrastructure assets in the Bland LGA is

S265,853,197 (as at June 2014)

The estimated costs of maintenance and renewal are extrapolated from each sub-plan category's 10 year

forecast (based on whole of life costing)

These sub-plans are kept in the asset 10 year plan register.

The shortfall in Asset Maintenance (including asset renewal)l is the d nce between these 10 year asset

forecast plans and the 10 year affordable financial budget fore

The shortfall for the 2015-2016 financial year is estimated

62


ufuBLAND SHIRE COUNCIL

RÉ (teoÍ a,rqÁ(ßr4t

Documents

Management - Bland Shire · Bland Shire Council Asset Management Plan 2015 Section L - lntroduct¡on What Council Provides To support the community, Council maintains a network of