Policy Review - Asset Management · 1.3 POLICY REVIEW - ASSET MANAGEMENT Ward: (No Wards) (Asset Management) Disclosure of Interest: Nil Authorised Officer: (Executive Manager Operations)

Ordinary Meeting of Council 15 June 2016

1.3 POLICY REVIEW - ASSET MANAGEMENT

Ward: (No Wards) (Asset Management)

Disclosure of Interest: Nil

Authorised Officer: (Executive Manager Operations)

KEY ISSUES

• As part of the annual review of Council and Management policies, staff have undertaken a review of five Council policies relating to asset management.

• No amendments to the existing policies are required.

The Governance Committee recommends that the Council:

1) Adopt the following five Council policies, with no amendments:

• POL-C-040 Midland District Drainage Development Reserve Fund

• POL-C-062 Hazelmere (Residential Areas) Drainage Improvement Reserve Fund

• POL-C-096 Guildford & South Guildford District Drainage Development Fund

• POL-C-100 Asset Management

• POL-C-148 Joint Use Agreements with Education Provider

BACKGROUND

The annual review of Council policies is underway. Council policies due for renewal by 30 June 2016 will be reviewed and submitted to Council, via the Governance Committee, for adoption. It is anticipated that a number of policies will not require any amendments.

Page 1


DETAILS

Since January 2016 the following five Council policies (relating to asset management) have been reviewed with no proposed amendments identified.





• POL-C-148 Joint Use Agreements with Education Providers

The reviewed policies have been collated in the attachment, Policy Review - Council - 15 June 2016.

CONSULTATION

The Governance Committee, at its meeting held on 16 May 2016, recommended that Council adopt the five reviewed Council policies.

ATTACHMENTS

Policy Review - Council - 15 June 2016

STRATEGIC IMPLICATIONS

Strategic Community Plan 2012-2022

KRA: Governance

Outcome: G2 Optimise use of City Resources

Objective: G2.1 Improve capability and capacity

STATUTORY IMPLICATIONS

Local Government Act 1995

FINANCIAL IMPLICATIONS

Nil

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VOTING REQUIREMENTS

Simple majority

RECOMMENDATION

That the Council resolves to:

1) Adopt the following five Council policies, with no amendments:





• POL-C-148 Joint Use Agreements with Education Providers

CARRIED

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Policy Review - 2016

TABLE OF CONTENTS

POLICY REVIEW - NO AMENDMENTS ........................................................................................ 1-

POL-C-040 Midland District Drainage Development Reserve Fund ..................................................... 3-6

POL-C-062 Hazelmere (Residential Areas) Drainage Improvement Reserve Fund ............................ 7-10

POL-C-096 Guildford & South Guildford District Drainage Development Fund ............................... 1

POL-C-100 Asset Management .........................................................................................................

POL-C-148 Joint Use Agreements with Education Providers ...........................................................

Policy Review - No Amendments

Page

The following Council policies have been reviewed and no amendments are proposed:

POL-C-040 Midland District Drainage Development Reserve FundPOL-C-062 Hazelmere (Residential Areas) Drainage Improvement Reserve Fund

POL-C-096 Guildford & South Guildford District Drainage Development FundPOL-C-100 Asset ManagementPOL-C-148 Joint Use Agreements with Education Providers

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POLICY POL-C-040 - Midland District Drainage Development Reserve Fund

Page 1 of 4 Date Accessed - 02/02/2016

1 Objective

To specify Council's policy on drainage contribution, as part of the Midland District Drainage Development Reserve Fund.

2 Policy Statement2.1 Midland District Drainage Contribution Scheme

2.1.1. A drainage contribution fee shall be collected from all new subdivisions, developments and/or extensions to existing developments within the area as indicated on the attached Plan No. D86-4s.

2.1.2 A Specified Area Rate will be levied in the Midland District Drainage area generally at a similar rate adopted by the Water Corporation for Gross Rental Value properties in the Perth Metropolitan Area.

2.2 Application of the Drainage Contribution Fee

2.2.1 The requirement for the fee shall be included as a condition of subdivision or development and paid prior to the issue of a building licence or development approval if no building licence is required, or prior to clearance of subdivision conditions.

2.2.2 The fee shall be applied at a rate set by the City of Swan during the annual budgeting process indicated in the current year’s Budget (found on the City’s website) and using the following provisions:

a) The fee is applicable to all subdivisions and developments;

b) The site area shall be assessed as the total allotment area;

c) In no case shall any property be levied on an area greaterthan it encompasses. In order to ensure that this does notoccur, a register shall be maintained recording allcontributions paid and corresponding individual lot areasassessed;

d) In no case shall a stormwater extension fee be charged, asthe fund will be used to carry out the road drainage extensionworks once the developer has paid into the contribution fund;

REVIEW

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2.3 Fund Administration

a) All contributions shall be held in the Midland District DrainageDevelopment Reserve Fund and used for the purposes of fundingdrainage works within the designated area and as first approved byCouncil.

b) The drainage contribution fee shall be revised by Council annuallybased on the Perth CPI adjustment, or more often should Councildecide to do so.

c) This policy shall take effect immediately and all development andsubdivision applications submitted subsequent to the date of thisdecision shall be assessed accordingly.

d) Council contribute an additional 30% of the amount levied in theSpecified Area Rate to drainage construction works within theMidland District Drainage area in each financial year;

e) When this fee is deemed applicable, a condition of subdivision ordevelopment approval must be applied as follows:

“A drainage contribution at $...... shall be paid to the City of Swan, as this development falls within the Midland District drainage area. This fee is to contribute towards the upgrade and supply of an adequate drainage service within the Midland district drainage area and enables the Applicant to connect to and use the City’s drainage system. Payment shall be made prior to the clearance of subdivision conditions or prior to the issue of a building licence and prior to any work commences on the site.”

f) Further to this, a condition of building licence approval (ifapplicable) must be applied as follows:

“As this development is within the Midland District Drainage area a drainage contribution of $..... (GST Inclusive) is required as noted on the approval to commence development. This fee is to contribute towards the upgrade and supply of an adequate drainage service within the Midland area and enables the Applicant to connect to and use the City’s drainage system. “This fee must be paid prior to the issuing of a building licence.”

REVIEW

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Page 5



Governance References

Statutory Compliance Section 6.32 & 6.37 Local Government Act 1995

Industry Compliance N/A.

Organisational Compliance N/A

Decision Maker CouncilBusiness Model Links N/A

Process Links N/A

Policy Administration

Business Unit Name Officer Title Contact:Financial Services (Original Policy)

Asset Management(Amendments only)

Manager, Asset Management

Engineer, Subdivisions & Drainage (amendments only)

9267 9267

Risk Complexity Classification 2 Review Frequency Biennial

Next Due 2018

Version Decision Reference Synopsis

1. OCM 21/05/08 – Pt.B-4 An additional study has shown that areas of Viveash and Woodbridge should be included in the revised Midland District Drainage Area

2. OCM 24/02/10 Approved the revised Midland District Drainage policy.

3. Executive 25/10/12 Endorsed the revised policy and submitted to Governance Committee.

4. GOV 13/11/2012 Endorsed the revised policy and submitted to Council.5. OCM 12/12/2012 Endorsed the revised policy.

6.Executive - 31/07/2014Governance - 26/08/2014OCM - 10/09/2014

Endorsed the review of policy.Endorsed the review of policy. Adopted the reviewed policy.

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POLICY POL-C-062 - Hazelmere (Residential Areas) Drainage Improvement Reserve Fund


1 Objective

To specify Council's policy on drainage contribution, as part of the Hazelmere (Residential Areas) Drainage Improvement Reserve Fund.

2 Policy Statement2.1 Hazelmere (Residential Areas) Drainage Improvement

Reserve Fund

2.1.1 A drainage contribution fee shall be collected from all new subdivisions, developments and/or extensions to existing developments within the Hazelmere Drainage Improvement Area as indicated on the attached Plan No. D 258-1.

2.1.2 A Specified Area Rate will be levied in the Hazelmere Drainage Improvement Area generally at a similar rate adopted by the Water Corporation for Gross Rental Value properties in the Perth Metropolitan Area.




a) the fee is applicable to all subdivisions and developments;

b) the site area shall be assessed as the total allotment area;

c) in no case shall any property be levied on an area greaterthan it encompasses. In order to ensure that this does notoccur, a register shall be maintained recording allcontributions paid and corresponding individual lot areasassessed;

d) in no case shall a stormwater extension fee be charged, asthe fund will be used to carry out the road drainageextension works once the developer has paid into thecontribution fund.

REVIEW

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2.2 Fund Administration

a) All contributions shall be held in the Hazelmere (Residential Areas)Drainage Improvement Reserve Fund and used for the purposes offunding drainage works within the designated area and as firstapproved by Council;

b) The drainage contribution fee shall be revised by Council annuallybased on the Perth CPI adjustment or more often should Councildecide to do so;

c) This policy shall take effect immediately and all development andsubdivision applications submitted subsequent to the date of thisdecision shall be assessed accordingly;

d) Council contribute an additional 30% of the amount levied in theSpecified Area Rate to drainage construction works within theHazelmere Drainage Improvement Area in each financial year;


“A drainage contribution of $.... shall be paid to the City, as this development falls within the Hazelmere Drainage Improvement Area. Payment shall be made prior to the issue of a building licence and before any work commences on the site.


“As this development is within the Hazelmere Drainage Improvement Area a drainage contribution of $..... is required as noted on the approval to commence development. This fee is to contribute towards the upgrade and supply of an adequate drainage service within the Hazelmere area.”

REVIEW

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Page 8



Page 9





Industry Compliance N/A.


Decision Maker CouncilBusiness Model Links N/A

Process Links N/A






9267 9267


Next Due 2018


1. OCM 27/07/05 – Pt.B –1.3

Endorse the Hazelmere (Residential Areas) Drainage Improvement Reserve Fund.

2. OCM 24/02/10 Revised policy adopted.

3. Executive 25/10/12 Endorsed the revised policy and submitted to Governance Committee

4. GOV 13/11/2012 Endorsed the revised policy and submitted to Council.5. OCM 12/12/2012 Endorsed the revised policy.


Endorsed renewal of policy for 2 years.Endorsed renewal of policy for 2 years. Adopted policy for 2 years.

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Page 10

POLICY POL-C-096 Guildford & South Guildford District Drainage Development Fund


1 Objective

To specify Council's policy on drainage contribution, as part of the Guildford & South Guildford District Drainage Reserve Fund.

2 Policy Statement2.1 Guildford & South Guildford District Drainage Contribution

Scheme

2.1.1. A drainage contribution fee shall be collected from all new subdivisions, developments and/or extensions to existing developments within the Guildford & South Guildford District Drainage Area as indicated on the attached Plan Nos. D288-1s & D275-1s.

2.1.2 A Specified Area Rate will be levied in the Guildford & South Guildford District Drainage Areas generally at a similar rate adopted by the Water Corporation for Gross Rental Value properties in the Perth Metropolitan Area.




a) the fee is applicable to all subdivisions and developments;

b) the site area shall be assessed as the total allotment area;

c) in no case shall any property be levied on an area greaterthan it encompasses. In order to ensure that this does notoccur, a register shall be maintained recording allcontributions paid and corresponding individual lot areasassessed;

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Page 1



d) in no case shall a stormwater extension fee be charged, asthe fund will be used to carry out the road drainage extensionworks once the developer has paid into the contribution fund.

2.3 Fund Administrationa) All contributions shall be held in the Guildford & South Guildford

District Drainage Fund and used for the purposes of fundingdrainage works within the designated area and as first approved byCouncil.

b) The drainage contribution fee shall be revised by Council annuallybased on the Perth CPI adjustment or more often should Councildecide to do so.

c) This policy shall take effect immediately and all development andsubdivision applications submitted subsequent to the date of thisdecision shall be assessed accordingly.

d) Council contribute an additional 30% of the amount levied in theSpecified Area Rate to drainage construction works within theGuildford & South Guildford District Drainage Area in each financialyear.


“A drainage contribution of $.... shall be paid to the City, as this development falls within the Guildford & South Guildford District Drainage Area. Payment shall be made prior to the issue of a building licence and before any work commences on the site.”


“As this development is within the Guildford & South Guildford District Drainage Area a drainage contribution of $.... is required as noted on the approval to commence development. This fee is to contribute towards the upgrade and supply of an adequate drainage service within the Guildford & South Guildford area.”

REVIEW

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Page 1



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Industry Compliance NA.

Organisational Compliance NA

Decision Maker CouncilProcess Links NA






9267 9267


Next Due 2018


1. OCM 27/07/05 – Pt.B – Item 1.2 Endorse the Guildford and South Guildford District Drainage Development Fund policy.

2. OCM 24/02/10 Revised policy approved by Council.

3. Executive 25/10/12 Endorsed revised policy and submitted to Governance Committee

4. GOV 13/11/2012 Endorsed revised policy and submitted to Council.5. OCM 12/12/2012 Endorsed revised policy


Endorsed renewal of policy for 2 years.Endorsed renewal of policy for 2 years.Adopted policy for 2 years.

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Page


POLICY POL-C-100 Asset Management

1 ObjectiveThe objective of this policy is to provide clear direction in the management of all Cityassets to deliver best value outcomes for the community, including land, buildings, parks & landscaping, natural environment and engineering assets.

2 Policy StatementA systematic approach will be implemented for the management of council assets that results in ‘best value’ outcomes for present and future generations of customers. This approach will be used in all asset life cycle functions from planning for new assets todisposal of assets.

Council staff will provide the most up to date information about assets to council for strategic decision-making in the management of assets.

2.1 Planning

2.1.1 Asset management will be incorporated into the City of Swan’s Integrated Planning Framework.

2.1.2 The asset management strategy within each asset management plan will be regularly reviewed to maintain focus in meeting customer needs and to guide asset management improvement.

2.2 New Assets

2.2.1 In considering the provision of new assets, council will take into account the following:

(a) The new asset’s life cycle costs and benefits;

(b) Demonstration that the new asset fulfils priority community needs;

(c) The new asset’s impact on rates and charges;

(d) That sufficient funding has been set aside for the future operation and maintenance of the new asset;

(e) That sufficient funding has been set aside for the renewal of the new asset.

REVIEW

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Page

POLICYPOL-C-100 – Asset Management


2.3 Budget Process

2.3.1 Council will give priority in its annual budgeting for the maintenance,operation and renewal of existing assets where need demonstrates theirretention

2.3.2 In allocating funds in its Annual Budget, Council should fund the creation of new assets by the use of loan funds (when required). Depreciation should be used for the maintenance and renewal of existing assets.

Governance References Statutory Compliance N/A

Industry Compliance N/A


Decision Maker CouncilBusiness Unit Links TBC

Process Links N/A

Policy AdministrationBusiness Unit Name Officer Title Contact:Asset Management Manager, Asset Management 9267 9267


Next Due 2018

Version Decision Reference Synopsis1. OCM - 17/03/10 Adopt revised policy.2. Exec - 25/10/2012 Endorsed revised policy.3. Governance 13/11/2012 Endorsed revised policy4. OCM - 12/12/2012 Endorsed revised policy.5. OCM - 10/09/2014 Adopted policy for 2 years6.

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Page


POLICY POL-C-148 Joint Use Agreements with Education Providers

1 ObjectiveThe objective of this policy is to highlight the Strategic principles that will guide the application of all joint use agreements with education providers within the City of Swan.

2 Policy StatementThis policy applies to the City wide application of joint use agreements with education providers.

It seeks to provide the principles the City will work to in collaboration with the Department of Education and/or other education providers in the provision and operation of joint use community facilities and infrastructure.

The Memorandum of Understanding: Department of Education/other Education Providers and the City of Swan has been developed in order to guide the implementation of a Joint Use Agreement.

2.1 Principles to Govern All Agreements

The City will work to the following principles in order to minimise the limitations and optimise the benefits of joint facilities:

2.1.1 For the City to enter into an agreement with an education provider there must be an equitable sharing of costs and benefits between the parties. The financial savings and community benefits of the agreement must outweigh the financial costs and City obligations.

2.1.2 Buildings are to comply with the Building Codes of Australia and any other standards related to venues provided for access to the public.

2.1.3 The parties are to contribute to the costs of any building, structure, or feature whenever they derive a benefit from its provision.

2.1.4 All joint use facilities will be designed to the standards highlighted by the City’s “Community Building Design Guidelines” and “Landscape Design Guidelines” and other guidelines where relevant.

2.1.5 Agreements associated with development of joint use facilities must be flexible and responsive to changing needs, trends and priorities over the short and long term.

2.1.6 Facilities will be located and built on land owned by or vested in the City wherever possible.

REVIEW

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Page

POLICYPOL-C-148 - Joint Use Agreements forEducation Providers


2.1.7 Where a facility is located on an education providers land, the City will not enter into an agreement which allows the other party to terminate an agreement without adequate compensation to the City.

2.1.8 Where a facility is located across property boundaries, land titles will define ownership of a facility and its components.

Governance References Statutory Compliance City of Swan Local Planning Strategy

Industry Compliance N/A

Organisational Compliance Joint Use Agreement Guidelines

Decision Maker CouncilBusiness Model Links TBC

Process Links TBC

Policy AdministrationBusiness Unit Name Officer Title Contact:Asset Management Manager, Asset Management 9267 9267


Next Due 2018

Version Decision Reference Synopsis1. OCM - 30/06/2010 Adopt new policy.2. Executive - 31/07/2014 Endorsed renewal of policy for 2 years.3. Governance - 26/08/2014 Endorsed renewal of policy for 2 years.4. OCM - 10/09/2014 Adopted policy for 2 years.5.

REVIEW

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Documents

Policy Review - Asset Management · 1.3 POLICY REVIEW - ASSET MANAGEMENT Ward: (No Wards) (Asset Management) Disclosure of Interest: Nil Authorised Officer: (Executive Manager Operations)