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TENTERFIELD SHIRE COUNCIL
WASTE MANAGEMENT
ASSET MANAGEMENT PLAN
Version 1.01, 6 June 2012
Do
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© Cop
The In
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cument ID: P
ev No 1.01 6
pyright 2007 – A
nstitute of Publi
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P:\INTEGRATED
Date 6 June 2012
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MANAGEMENTAsset Ma
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ved.
eering Australia
T PLAN\Asset Maanagement Plan
evision DetailsInitial Draft
a.
anagement\Wast - DS - 6 June 12
s Dav
e Management\A.doc Author
vid Steward
Appendix I - Was
Reviewer John
Hrobelko
te Management,
Approver
TABLE OF CONTENTS ABBREVIATIONS ............................................................................................................................................................ 1 GLOSSARY ....................................................................................................................................................................... I 1. EXECUTIVE SUMMARY ...................................................................................................................................... 1
1.1 - What does it cost? ........................................................................................................................................ 1 1.2 - Plans for the future ....................................................................................................................................... 1 1.3 - Performance measures................................................................................................................................. 2
2. INTRODUCTION................................................................................................................................................... 3 2.1 Background ....................................................................................................................................... 3 2.2 Assets covered under Waste Management Category ....................................................................... 4 2.3 Goals and Objectives of Asset Management .................................................................................... 4 2.4 Plan Framework ................................................................................................................................ 4 2.5 Core and Advanced Asset Management ........................................................................................... 4
3. LEVELS OF SERVICE ......................................................................................................................................... 5 3.1 Customer Research and Expectations .............................................................................................. 5 3.2 Legislative Requirements .................................................................................................................. 5 3.3 Current Levels of Service .................................................................................................................. 5 3.4 Sustainable Level of Service ............................................................................................................. 6 3.5 Desired Levels of Service .................................................................................................................. 6
4. FUTURE DEMAND ............................................................................................................................................... 7 4.1 Demand Forecast .............................................................................................................................. 7 4.2 Changes in Technology ..................................................................................................................... 8 4.3 Demand Management Plan ............................................................................................................... 8 4.4 New Assets from Growth ................................................................................................................... 8 4.5 Future Projects .................................................................................................................................. 8
5. LIFECYCLE MANAGEMENT PLAN .................................................................................................................... 9 5.1 Background Data ............................................................................................................................... 9 5.2 Physical Parameters ......................................................................................................................... 9 5.3 Asset capacity and performance ..................................................................................................... 10 5.4 Asset condition ................................................................................................................................ 11 5.5 Asset valuations .............................................................................................................................. 12 5.6 Risk Management Plan ................................................................................................................... 13 5.7 Routine Maintenance Plan .............................................................................................................. 13 5.8 Maintenance plan ............................................................................................................................ 13 5.9 Standards and specifications .......................................................................................................... 14 5.10 Summary of future maintenance expenditures ................................................................................ 14 5.11 Renewal/Replacement Plan ............................................................................................................ 14 5.12 Renewal plan ................................................................................................................................... 14 5.13 Renewal standards .......................................................................................................................... 15 5.14 Summary of future renewal expenditure ......................................................................................... 15 5.15 Creation/Acquisition/Upgrade Plan ................................................................................................. 15 5.16 Selection criteria .............................................................................................................................. 15 5.17 Standards and specifications .......................................................................................................... 16 5.18 Summary of future upgrade/new assets expenditure ...................................................................... 16 5.19 Disposal Plan .................................................................................................................................. 16
6. FINANCIAL SUMMARY ..................................................................................................................................... 17 6.1 Financial Statements and Projections ............................................................................................. 17 6.2 Sustainability of service delivery ..................................................................................................... 17 6.3 Funding Strategy ............................................................................................................................. 18 6.4 Valuation Forecasts ......................................................................................................................... 18 6.5 Key Assumptions made in Financial Forecasts ............................................................................... 19
7. ASSET MANAGEMENT PRACTICES ............................................................................................................... 20 8. PLAN IMPROVEMENT AND MONITORING ..................................................................................................... 20
8.1 Performance Measures ................................................................................................................... 20 8.2 Improvement Plan ........................................................................................................................... 20 8.3 Monitoring and Review Procedures ................................................................................................ 20
REFERENCES ............................................................................................................................................................... 21
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ABBREVIATIONS See General Asset Management Plan for Details
GLOSSARY See General Asset Management Plan for Details
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1. EXECUTIVE SUMMARY Tenterfield Shire operates a number of waste services including kerbside and commercial garbage collection, landfill and transfer station operation and recycling.
Tenterfield town, Jennings and Urbenville residents have weekly kerbside collections.
Tenterfield and Jennings collections are conducted by Tenterfield Shire Council employees using Council’s owned side lift truck.
Urbenville residents’ service is provided by Greely Waste who also services Kyogle Shire. Waste is collected on Thursdays and taken either to Urbenville landfill.
TSC also operate a front end lift truck servicing skip bins from industrial and commercial premises in the Shire.
The majority of services are in Tenterfield town. In 2006, 71 clients received 2735 pickups, with the Council itself receiving 308 of these services
TSC also operates transfer facilities to service the remainder of the Shire. A secure supervised site is located at Drake while skip bins are provided for the smaller communities at Sandy Hill and Springfield/Mingoola.
A central transfer station is also located in Tenterfield town.
TSC operates several landfill sites across the Shire to meet community needs across the Shire’s geographical and special variances.
• Boonoo Boonoo
• Legume (previous landfill closed near cemetery)
• Urbenville
• Liston
• Torrington
• Dalman
• Jennings (closed October 2007)
TSC currently offers limited recycling services, though are interested in increasing these services to the community.
• Cardboard recycling
• Glass recycling
• Metal recycling
• Greenwaste
• drumMuster
• aluminium can recycling
• green waste processing
1.1 - What does it cost? The projected costs to provide and maintain the infrastructure covered in this Asset Management Plan, which includes the costs to cover the operations, maintenance and renewal or upgrading of the existing buildings as well as the costs of potential future assets over the duration of this plan (which is a period of 10 years) are yet to be calculated.
1.2 - Plans for the future Council’s plan’s for the future include providing the required maintenance to all its infrastructure assets for the long term period of time, these plans also include the possible renewal or upgrading of some of the current assets. This is to be done to ensure that all buildings are maintained to a standard which is functional to the people who utilise these facilities and that they are maintained to a safe standard. The AMP is put into place to enhance the management and operations of the public facilities to enable these facilities to be able to cater for demand in which they face. The future plans are aiming to ensure that the community expectations are met to the best possible standard within the allocated funding.
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1.3 - Performance measures Refer to section 3 table 3.3
The next steps
The future steps of the current AMP include the following:
• Ongoing improvement of the services and process in relation to the AMP
• Future revisions of the current plan to ensure that the plan remains current and to an improving level of detail.
• Ongoing inspection and assessment of the function and condition of the Waste Management infrastructure
• Greater review and feedback obtained from those who use the Waste Management infrastructure
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2. INTRODUCTION 2.1 Background This asset management plan is relevant to the infrastructure asset category of ‘Waste Management’, that exist in and are the property of or under the corporate management (for Crown Land) of the Tenterfield Shire Council.
Tenterfield Shire Council is directly responsible for the maintenance, operations, management and any action regarding this infrastructure.
The core purpose of the Asset Management Plan (AMP) is to ensure that council is effectively able to provide management and maintenance of the waste facilities and infrastructure outlined in this document.
This is to be carried out through the provision of funding so that the level of service for waste management is maintained at a desired level to the community.
This asset management plan is to outline the following Waste Infrastructure assets which are arranged into the following sub-categories which in turn have been divided into sub types of assets:
• Landfills – Licenced
• Landfills – Non Licenced
• Landfills - Closed
• Waste Transfer Stations
• Domestic Bins
• Commercial Bins
Each Asset category has been divided into several sub categories which in turn have been divided into sub types of assets.
See General Asset Management Plan for Details The key stakeholders in relation to the Building and Other Structures AMP are:
1. Governments (at all three levels) – Funding, management and maintenance of all building infrastructure.
2. Community and Visitors – involvement through utilising these facilities.
3. Elected Members – Though community representation and administration.
4. Utilities and Developers – Providers of services and infrastructure facilities.
5. Employees and Volunteers – Operational and administration providers.
6. Contractors and Suppliers – Supply of goods and services.
7. Insurers – Remedy providers.
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2.2 Assets covered under Waste Management Category All waste management assets have been categorised into the following ‘Sub-Categories’, The table below outlines the various sub categories, the quantity in each sub-category and the replacement value for each sub-category, as well as the total quantity and replacement value for all waste management assets.
Asset category Qty Replacement Value ($)
Landfills – Licenced – Operational (Land Only) 1 $31,000.00
Landfills – Non Licenced – Operational (Land Only) 5 $89,000.00
Landfills – Non Licenced – Closed (Land Only) 2 $19 000.00 (TBC)
Waste Transfer Stations (Land Only) 2 $31,000.00 (TBC)
Domestic Bins 2054 $224,000.00
Commercial Bins 115 $76,500.00
TOTAL $470,500.00
(CHART to be Inserted)
Diagram 1 Breakdown of Waste Infrastructure Assets by Replacement Value
2.3 Goals and Objectives of Asset Management See General Asset Management Plan for Details
2.4 Plan Framework See General Asset Management Plan for Details
2.5 Core and Advanced Asset Management See General Asset Management Plan for Details
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3. LEVELS OF SERVICE 3.1 Customer Research and Expectations See General Asset Management Plan for Details
3.2 Legislative Requirements See General Asset Management Plan for Details
3.3 Current Levels of Service Council has defined service levels in two terms.
3.3.1 Community Levels of Service
See General Asset Management Plan for Details Service Criteria Technical measures may relate to: Quality Smoothness of roads Quantity Area of parks per resident Availability Distance from a dwelling to a sealed road Safety Number of injury accidents
Council’s current service levels for each Asset Category are detailed in Table 3.3 of each Asset Category Appendix.
Table 3.3. Current Service Levels
Key Performance Measure
Level of Service Performance Measure Process Performance Target Current
Performance
COMMUNITY LEVELS OF SERVICE
Quality The facilities are to be easily accessible for the designed purpose and kept well maintained.
Customer service/ user feedback, Complaints
Less than ten complaints per year relating to council waste management infrastructure.
No current measures other than user complaints.
Function The facilities are fit for designed purpose, and meet the required legislations
Customer service/ user feedback, Complaints
Less than ten complaints per year relating to council waste management infrastructure.
No current measures other than user complaints.
Safety Ensure facilities meet safety requirements and do not pose as a potential danger or health risk
Customer service/ user feedback, Complaints, reported incidents
No reported incidents. No current measures other than incident reporting.
TECHNICAL LEVELS OF SERVICE
Condition
The condition of the infrastructure is to be maintained to a high level
Routine inspections of waste operations and condition
Increase of the level of maintenance currently carried out on waste management infrastructure.
Not currently Measured
Function/ Accessibility
The waste management infrastructure will meet compliance of the relevant legislations.
The waste management infrastructure is accessible & functional for all users.
All waste management infrastructure is to have reached compliance within the duration of this AMP (10 years)
Not currently Measured
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Cost effectiveness
Provide the services required in a cost effective manner, within the allocated funding outlined by the AMP
Compliance with the Budget and AMP
To maintain costs within the Budget and AMP Unsatisfactory
Safety Ensure all waste management infrastructure is a safe standard.
Safety audits of waste management infrastructure. Routine maintenance
Safety inspections of waste management infrastructure to determine any defects.
Unsatisfactory
3.4 Sustainable Level of Service See General Asset Management Plan for Details
3.5 Desired Levels of Service See General Asset Management Plan for Details
4.
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4.2 Changes in Technology Changes in technology can potentially have a significant impact on the waste management infrastructure; this may require attention in further issues of the AMP.
4.3 Demand Management Plan See General Asset Management Plan for Details
Table 4.3. Demand Management Plan Summary
Service Activity Demand Management Plan
Waste management upgrades and expansion
Upgrades to meet population growth demand and changes identifies in review reports and planning studies
Safety improvement Upgrades to improve safety – to be developed further within the next review period
Waste Management Strategic Review Review of Waste Management Strategic plan to incorporate remediation and future planned capital works, within the next review period
Financial Developing long term financial management plans to ensure financial sustainability
4.4 New Assets from Growth The new assets required to meet growth will be acquired from land developments and constructed by Council. The new asset values are summarised in Fig 1.
Fig 1. New Assets from Growth
Insert graph of new assets from growth – see Guidelines for details
Information for this section is yet to be determined
Acquiring these new assets will commit council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operating and maintenance costs.
4.5 Future Projects
New Solid Waste Landfill Site
Tenterfield Shire Council has been advised by the Environmental Protection Agency in January 2012 that a new Solid Waste Landfill may be required.
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5. LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how Council plans to manage and operate the assets at the agreed levels of service (defined in section 3) while optimising life cycle costs.
5.1 Background Data The Waste Management Infrastructure assets for which council is responsible for, are being managed with two key aspects, these being the long term (strategic) plan for the assets and the Life Cycle of the asset (the entire usage period of that asset). This Section outlines the overall information relating to all the Waste Management Infrastructure assets such as the operation and management, the issues in regards to the infrastructure and the condition as well as the maintenance and upgrades required for the Waste Management Infrastructure within the shire.
5.2 Physical Parameters The assets covered by this asset management plan are shown below.
Asset Sub Category Description
Landfills – Licenced - Operational Land Only
Landfills – Non Licenced - Operational Land Only
Landfills – Non Licenced - Closed Land Only
Waste Transfer Stations Land Only
Domestic Bins 120 & 240 Lt Mobile Garbage Bins (MGB)
Commercial Bins 2.4m3 / 3m3 Bins / 4m3 Bins
The age profile of Council’s assets is shown below.
Fig 2. Asset Age Profile
Insert graph of asset age profile – See guidelines.
The information required for this section is yet to be determined
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5.3 Asset capacity and performance Council’s services are generally provided to meet design standards where these are available.
Locations where deficiencies in service performance are known are detailed in Table 5.1.2.
Table 5.1.2. Known Service Performance Deficiencies
Asset category Service Deficiency
Landfills – Licenced - Operational Operational and Strategic management is required to meet legislative requirements and to thus meet the financial expectations of the community
Landfills – Non Licenced - Operational Operational and Strategic management is required to meet legislative requirements and to thus meet the financial expectations of the community
Landfills – Non Licenced - Closed Operational and Strategic management is required to meet legislative requirements and to thus meet the financial expectations of the community
Waste Transfer Stations Operational and Strategic management is required to meet legislative requirements and to thus meet the financial expectations of the community
Domestic Bins Lack of Maintenance
Commercial Bins Lack of Maintenance – Replacement Program required
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5.4 Asset condition The condition profile of Council’s assets is shown below.
Condition is measured using a 1 – 5 rating system.1
Rating Description of Condition 1 Excellent condition: Only planned maintenance required.
2 Very good: Minor maintenance required plus planned maintenance.
3 Good: Significant maintenance required.
4 Average: Significant renewal/upgrade required.
5 Poor: Unserviceable.
Sub Category Quantity Condition
Landfills – Licenced - Operational 1 4 - Average
Landfills – Non Licenced - Operational 5 4 - Average
Landfills – Non Licenced - Closed 3 4 - Average
Waste Transfer Stations 2 3 - Good
Domestic Bins 2054 2 – Very Good
Commercial Bins 115 4 - Average
1 IIMM 2006, Appendix B, p B:1‐3 (‘cyclic’ modified to ‘planned’)
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5.5 Asset valuations The value of assets as at 30th June 2011 covered by this asset management plan is summarised below. Assets were last re-valued at 30th June 2011. Assets are valued at brownfield rates.
** Note: The table below does not include the asset sub types of domestic and commercial bins as the detail is yet to be determined/obtained.
Asset Sub Type Category Location Current Replacement Cost Depreciable Amount Depreciated
Replacement Cost Annual Depreciation Expense
Tenterfield Landfill Works Land Improvements Waste Transfer
Station 280,000 280,000 168,000 5,611.00
Boonoo Boonoo Landfill Works Land Improvements Boonoo Boonoo
Landfill Site 50,000 50,000 45,000 1,002.00
Jennings Landfill Works Land Improvements Jennings Landfill
Site 4,500 4,500 2,250 90.00
Liston Landfill Works Land Improvements Liston Landfill Site 5,000 5,000 2,500 100.00 Dalman Landfill Works Land Improvements Dalman Landfill
Site 5,300 5,300 4,770 106.00
Torrington Landfill Works Land Improvements Torrington Landfill
Site 5,100 5,100 4,590 102.00
Urbenville Landfill Works Land Improvements Urbenville Landfill
Site 6,000 6,000 4,800 120.00
Legume Landfill Works Land Improvements Legume Landfill
Site 5,000 5,000 4,000 100.00
Domestic & Commercial Bins
MGB 120 litre Various 39,000 TBA TBA TBA
MGB 240 litre Various 37,000 TBA TBA TBA
Commercial 2.4 m3 Various 70,000 TBA TBA TBA
Commercial 3.0 m3 Various 45,000 TBA TBA TBA
Commercial 4.0 m3 Various 84,500 TBA TBA TBA
Commercial 4.5 m3 Various 24,000 TBA TBA TBA
Sub totals $660,400 TBA TBA TBA
Current Replacement Cost $360,900.00
Depreciable Amount $ TBA
Depreciated Replacement Cost $ TBA
Annual Depreciation Expense $ TBA
Council’s sustainability reporting reports the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion.
Asset Consumption 16%
Asset renewal Not Available At This Time
Annual Upgrade/expansion Not Available At This Time
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5.6 Risk Management Plan See General Asset Management Plan for Details
Table 5.2. Critical Risks and Treatment Plans
Note: EPA application – Environmental Risk Assessment Management Plan ‘ERAMP’ to be utilised to assess each asset risk level.
Asset at Risk What can Happen Risk Rating (VH, H,M & L) Risk Treatment Plan
5.7 Routine Maintenance Plan See General Asset Management Plan for Details
5.8 Maintenance plan See General Asset Management Plan for Details
Cyclic maintenance is replacement of higher value components/sub-components of assets that is undertaken on a regular cycle including repainting, building roof replacement, etc. This work generally falls below the capital/maintenance threshold.
Maintenance expenditure trends are shown in Table 5.3.1
Table 5.3.1. Maintenance Expenditure Trends
Year Maintenance Expenditure Reactive Planned Cyclic
2008/09 $ $ $
2009/10 $ $ $
2010/11 $ $ $
Please Note: Maintenance Expenditure Yet to be Obtained/Determined
Planned maintenance work is yet to be determined .
Maintenance expenditure levels are considered to be inadequate to meet required service levels. Future revision of this asset management plan will include linking required maintenance expenditures with required service levels.
Assessment and prioritisation of reactive maintenance is undertaken by Council staff using experience and judgement.
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5.9 Standards and specifications Maintenance work is carried out in accordance with the following Standards and Specifications.
• Australian Standards
• Local Environmental Planning Policy
• Manufacturer’s requirements for proprietary products
5.10 Summary of future maintenance expenditures Future maintenance expenditure is forecast to trend in line with the value of the asset stock as shown in Fig 4. Note that all costs are shown in current 2011 dollar values.
Fig 4. Planned Maintenance Expenditure
Insert graph of planned maintenance expenditure – see guidelines for details.
This information unavailable at this time
Deferred maintenance, i.e. works that are identified for maintenance and unable to be funded are to be included in the risk assessment process in the infrastructure risk management plan.
Maintenance is funded from Council’s Waste Management Fund budget and grants where available. This is further discussed in Section 6.2.
5.11 Renewal/Replacement Plan See General Asset Management Plan for Details
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5.12 Renewal plan See General Asset Management Plan for Details
Table 5.4.1 Renewal Priority Ranking Criteria
Criteria Weighting
Community Plan No current weighting or ranking against other asset classes.
Long term financial plan No current weighting or ranking against other asset classes.
Current service level No current weighting or ranking against other asset classes.
Legislative OHS No current weighting or ranking against other asset classes.
Buildings (all Classes) Building has serious identified defects, resulting in unacceptable appearance, user comfort and / or safety. Urgent work is required, with safety issues to be addressed urgently
Total 100%
Renewal will be undertaken using ‘low-cost’ renewal methods where practical. The aim of ‘low-cost’ renewals is to restore the service potential or future economic benefits of the asset by renewing the assets at a cost less than replacement cost.
Examples of low cost renewal include the minor repair of an asset such as replacing a section of roof sheeting oppose to replacing the entire roof structure.
5.13 Renewal standards Renewal work is carried out in carried out in accordance with the following Standards and Specifications.
• Relevant legislations and Australian Standards
• Material, Product or supplier specifications
5.14 Summary of future renewal expenditure Projected future renewal expenditures are forecast to increase over time as the asset stock ages. The costs are summarised in Fig 5. Note that all costs are shown in current 2011 dollar values.
The projected capital renewal program is shown in Appendix B.
Fig 5. Projected Capital Renewal Expenditure
Insert graph of projected renewal expenditure – see guidelines for details.
This information unavailable at this time
See General Asset Management Plan for Details
5.15 Creation/Acquisition/Upgrade Plan See General Asset Management Plan for Details
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5.16 Selection criteria See General Asset Management Plan for Details
Table 5.5.1 New Assets Priority Ranking Criteria
Criteria Weighting
Available Budget No Weighting Adopted
Building Planning Priorities No Weighting Adopted
Standards and Legislation No Weighting Adopted
Total 100%
5.17 Standards and specifications Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those for renewal shown in Section 5.4.2.
5.18 Summary of future upgrade/new assets expenditure Planned upgrade/new asset expenditures are summarised in Fig 6. The planned upgrade/new capital works program is shown in Appendix C. All costs are shown in current 2011 dollar values.
Fig 6. Planned Capital Upgrade/New Asset Expenditure
Insert graph of planned capital upgrade/new expenditure – see guidelines for details.
This information unavailable at this time
New assets and services are to be funded from Council’s capital works program and grants where available. This is further discussed in Section 6.2.
5.19 Disposal Plan There are no disposal plans for waste management assets due to the nature of service and environmental responsibilities by Council on behalf of the community.
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6. FINANCIAL SUMMARY This section contains the financial requirements resulting from all the information presented in the previous sections of this 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.
6.1 Financial Statements and Projections The financial projections are shown in Fig 7 for projected operating (operations and maintenance) and capital expenditure (renewal and upgrade/expansion/new assets).
Fig 7. Planned Operating and Capital Expenditure
Insert graph of planned future operating and capital expenditure – see guidelines for details
This information unavailable at this time and yet to be determined
Note that all costs are shown in current 2011 dollar values.
6.2 Sustainability of service delivery There are two key indicators for financial sustainability that have been considered in the analysis of the services provided by this asset category, these being long term life cycle costs and medium term costs over the 10 year financial planning period.
• Long term - Life Cycle Cost to 2029
• Medium term costs over the 10 year period of councils LTFP.
Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service levels over the longest asset life. Life cycle costs include maintenance and asset consumption (depreciation expense). The annual average life cycle cost for the services covered in this asset management plan is yet to be determined.
Medium term – 10 year financial planning period
This asset management plan identifies the estimated maintenance and capital expenditures required to provide an agreed level of service to the community over a 20 year period for input into a 10 year financial plan and funding plan to provide the service in a sustainable manner.
This may be compared to existing or planned expenditures in the 20 year period to identify any gap. In a core asset management plan, a gap is generally due to increasing asset renewals.
Fig 8 shows the projected asset renewals in the 20 year planning period from the asset register. The projected asset renewals are compared to planned renewal expenditure in the capital works program and capital renewal expenditure in year 1 of the planning period as shown in Fig 8. Table 6.1.1 shows the annual and cumulative funding gap between projected and planned renewals.
Fig 8. Projected and Planned Renewals and Current Renewal Expenditure
Insert graph of projected/planned asset renewals and current renewal expenditure- see guidelines.
This information is yet to be determined
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Table 6.1.1 shows the gap between projected and planned renewals.
Table 6.1.1 Projected and Planned Renewals and Expenditure Gap
Year Projected Renewals Planned Renewals Renewal Funding Gap Cumulative Gap
INSERT projected and planned renewals in Table 6.1.1 and calculate yearly and cumulative renewal funding gaps.
Providing services in a sustainable manner will require matching of projected asset renewals to meet agreed service levels with planned capital works programs and available revenue.
A gap between projected asset renewals, planned asset renewals and funding indicates that further work is required to manage required service levels and funding to eliminate any funding gap.
Council will manage the ‘gap’ by developing this asset management plan to provide guidance on future service levels and resources required to provide these services.
Council’s long term financial plan covers the first 10 years of the 20 year planning period. The total maintenance and capital renewal expenditure required over the 10 years is yet to be obtained.
This is an average expenditure of "[ Click here and type 10 yr average mtce & cap. renewal exp. ]" . Estimated maintenance and capital renewal expenditure in year 1 is "[ Click here and type yr 1 mtce & cap. renewal exp. ]" . The 10 year sustainability index is "[ Click here and type 10 yr sustainabilty index ]"
6.3 Funding Strategy Projected expenditure identified in Section 6.1 is to be funded from Council’s operating and capital budgets. The funding strategy is detailed in the Council’s 10 year long term financial plan.
Achieving the financial strategy will require an ongoing commitment to fund the increasing demand for asset renewals. This may be in the form of increasing revenue streams, rates and user charges.
6.4 Valuation Forecasts Asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Council and from assets constructed by land developers and others and donated to Council. Fig 9 shows the projected replacement cost asset values over the planning period in current (2011) dollar values.
Fig 9. Projected Asset Values
Insert graph of projected asset values – see guidelines for details.
This information is yet to be obtained
Depreciation expense values are forecast in line with asset values as shown in Fig 10.
Fig 10. Projected Depreciation Expense
Insert graph of projected depreciation expense – see guidelines for details.
This information is yet to be obtained
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The depreciated replacement cost (current replacement cost less accumulated depreciation) will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets. Forecast of the assets’ depreciated replacement cost is shown in Fig 11.
Fig 11. Projected Depreciated Replacement Cost
Insert graph of projected depreciated replacement cost – see guidelines for details.
This information is yet to be obtained
6.5 Key Assumptions made in Financial Forecasts This section details the key assumptions made in presenting the information contained in this asset management plan and in preparing forecasts of required operating and capital expenditure and asset values, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.
Key assumptions made in this asset management plan are:
• Property assets will remain in council ownership though out the planning period;
• Forecasts are based on current equipment and construction cost and will be influenced by cost increases in materials and labour;
• The projected and planned renewals will remain constant;
Accuracy of future financial forecasts may be improved in future revisions of this asset management plan by the following actions.
• Future projected expenditure to be modelled on asset condition, usage and operations
• Continual review of depreciation rates as improved condition and asset consumption information becomes available
• Continual Improvement in the asset data
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7. ASSET MANAGEMENT PRACTICES See General Asset Management Plan for Details
8. PLAN IMPROVEMENT AND MONITORING
8.1 Performance Measures See General Asset Management Plan for Details
8.2 Improvement Plan The asset management improvement plan generated from this asset management plan is shown in Table 8.2.
The actions resulting from this asset management plan are:
• Verify unit / replacement rates and useful lives across all asset groups.
• Establish a single asset register that is suitable for financial reporting and technical asset management. Develop formal processes for maintaining the asset register.
• Formalise condition inspection frameworks and establish process for on-going condition assessment (in particular sealed and unsealed pavements). Close gaps in condition data.
• Pilot the inspection frequencies and maintenance response times ensuring all asset categories are covered.
Formalise methodologies for establishing future capital works programmes for undertaking necessary Council funded road and drainage upgrade projects, including setting priorities for each category of assets.
8.3 Monitoring and Review Procedures See General Asset Management Plan for Details
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REFERENCES Glen Innes Severn Council, ‘Buildings & Other Structures, Asset Management Plan Part 6’.
Glen Innes Severn Council, ‘Asset Management Plan Part 1’.
Kyogle Council, ‘Parks and Reserves, Asset Management Plan’
Albury City Council ‘Building Asset Management Plan’
DVC, 2006, ‘Asset Investment Guidelines’, ‘Glossary’, Department for Victorian Communities, Local Government Victoria, Melbourne, http://www.dvc.vic.gov.au/web20/dvclgv.nsf/allDocs/RWP1C79EC4A7225CD2FCA257170003259F6?OpenDocument
IPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public Works Engineering Australia, Sydney, www.ipwea.org.au
APPENDICES
Appendix – A:
