WAVERLEY COUNCIL STRATEGIC ASSET ......This plan is Waverley Council’s first Strategic Asset Management Plan (SAMP 1). It is a plan which operates in conjunction with a range of

WAVERLEY COUNCIL

STRATEGIC ASSET

MANAGEMENT PLAN 1

(SAMP 1)

March 2006

"Council is the steward of important community assets and resources, both for current and future

generations. The way in which we plan for and manage those assets and resources is a key way in which future generations will judge the success or otherwise of councils of today"

Councils are the stewards of important communityassets and resources, both for current and future

generations. The way in which we plan forand manage those assets and resources is a

key way in which future generations will judgethe success or otherwise of councils of today.

TABLE OF CONTENTSSTRATEGIC ASSET MANAGEMENT PLAN 1

EXECUTIVE SUMMARY

SUMMARY OF MAJOR ACTIONS

1. INTRODUCTION

1.1. Background – Origins and Coverage of the Plan1.2. Methodology

1.2.1. Local Government Asset Management Methodologies in New South Wales1.2.2. Methodologies Adopted in Local Government in Other States1.2.3. A Methodology for Waverley

1.3. Purpose of SAMP 1

2. STRATEGIC ASSET MANAGEMENT PLANNING

2.1. Adopting a Strategic Approach2.2. A Strategic Approach for Waverley

2.2.1. Condition Based Assessments2.2.2. Integrated Planning2.2.3. Monitoring and Improving Performance

2.3. Benefits of a Strategic Plan

3. ISSUES & AIMS

3.1. Key Issues3.2. Key Aims

4. PERFORMANCE MEASURES & REVIEW

4.1. Translating Vision to Action4.2. Strategic Performance Measures

4.2.1. Measures for Achieving Sound Stewardship4.2.2. Measures for Optimising the Portfolio4.2.3. Measures for Ensuring Assets Enhance Service Delivery

4.3. Standards for Asset Maintenance4.3.1. Draft Preferred Minimum Standards for Assets4.3.2. Targets for Reaching Preferred Minimum Standards

4.4. Surveying Asset Condition to Monitor Performance on Standards

4.5. Monitoring of Performance and Review of the Plan4.5.1. Strategic Asset Management Planning Group – SAMPG4.5.2. Assessment of Performance in a Business Excellence Framework

5. FINDINGS & ACTION PLANS

5.1. Roads5.1.1. Roads - Holdings, Condition & Findings5.1.2. Roads - Action Plan

5.1.2.1. Roads – Stewardship5.1.2.2. Roads – Relevance

5.2. Footpaths5.2.1. Footpaths - Holdings, Condition & Findings5.2.2. Footpaths - Action Plan

5.2.2.1. Footpaths – Stewardship5.2.2.2. Footpaths – Relevance

5.3. Kerbs & Gutters5.3.1. Kerbs & Gutters - Holdings, Condition & Findings5.3.2. Kerbs & Gutters - Action Plan

5.3.2.1. Kerbs & Gutters – Stewardship

5.4. Stormwater Assets5.4.1. Stormwater Drainage – Holdings, Condition & Findings5.4.2. Stormwater Drainage – Action Plan

5.4.2.1. Stormwater Drainage - Stewardship5.4.3. Stormwater Pollution Control Devices – Holdings, Condition & Findings5.4.4. Stormwater Pollution Control Devices – Action Plan

5.4.4.1. Stormwater Pollution Control Devices – Optimisation

5.5. Buildings5.5.1. Buildings - Holdings, Condition & Findings5.5.2. Buildings - Action Plan

5.5.2.1. Buildings – Stewardship5.5.2.2. Buildings – Optimisation5.5.2.3. Buildings – Relevance

5.6. Urban Open Spaces & Malls5.6.1. Urban Open Spaces & Malls - Holdings, Condition & Findings5.6.2. Urban Open Spaces & Malls - Action Plan

5.6.2.1. Urban Open Spaces & Malls – Stewardship5.6.2.2. Urban Open Spaces & Malls – Relevance

5.7. Beach & Coastal Infrastructure5.7.1. Beach & Coastal Infrastructure - Holdings, Condition & Findings5.7.2. Beach & Coastal Infrastructure - Action Plan

5.7.2.1. Beach & Coastal Infrastructure – Stewardship5.7.2.2. Beach & Coastal Infrastructure – Relevance

5.8. Parks & Reserves Infrastructure5.8.1. Parks & Reserves Infrastructure - Holdings, Condition & Findings5.8.2. Parks & Reserves Infrastructure - Action Plan

5.8.2.1. Parks & Reserves Infrastructure – Stewardship5.8.2.2. Parks & Reserves Infrastructure – Relevance

5.9. Cemeteries5.9.1. Cemeteries - Holdings, Condition & Findings5.9.2. Cemeteries - Action Plan

5.9.2.1. Cemeteries – Stewardship5.9.2.2. Cemeteries – Optimisation5.9.2.3. Cemeteries - Relevance

5.10. Other Infrastructure5.10.1. Other Infrastructure - Holdings, Condition & Findings5.10.2. Other Infrastructure - Action Plan

5.10.2.1. Other Infrastructure – Stewardship

6. SUMMARY OF FINANCIAL IMPLICATIONS OF THE PLAN

6.1. Revision of Methodology for Calculating Cost of Asset Maintenance6.2. Estimates of Maintenance Costs for Assets in Categories 1 to 5

6.2.1. Overall Effect of Revision of Costs for Assets in Categories 1 to 56.2.2. Reviewing Capacity to Maintain Assets in Categories 1 to 5

6.3. Estimates of Maintenance Costs for Assets in Categories 6 to 106.4. Other Resource Implications6.5. General Conclusion

TABLE OF CONTENTSSAMP 1 - APPENDIX A

Appendix A.1 - Roads

Map A1.1 • Road pavement renewed since 1985Map A1.2 • Roads pavement treatments in renewals since 1985Map A1.3 • Current Condition of Roads – Condition Ratings 3 and 4Map A1.4 • Consolidated Map of Roads Likely to Require Treatment within the next

20 years (Type of treatment Suggested)Map A1.5 • Consolidated Map of Roads Likely to Require Treatment within the next

20 years

Appendix A.2 - Footpaths

Map A2.1 • Footpath Condition Ratings - Condition 3 and 4Map A2.2 • Consolidated Map of Footpaths Likely to Require Treatment within the

next 20 years

Appendix A.3 – Kerbs & Gutters

Map A3.1 • Kerb & Gutter Condition Ratings - Condition 3 and 4Map A3.2 • Consolidated Map of Kerbs & Gutters Likely to Require Treatment

within the next 20 years

Appendix A.4 – Stormwater Assets

Map A4.1 • Stormwater Drainage Systems in Waverley, including:- Stormwater Catchment Boundary- Sydney Water Trunk Stormwater Drainage Lines- Council Main Drainage Lines (600mm & above)- Stormwater Ponding Areas- Gross Pollutant Traps (GPT’s)- Stormwater Pipe CCTV Inspections

Appendix A.5 – Buildings

Map A5.1 • Mapped location of Council BuildingsMap A5.2 • Mapped location of Commercial PropertyMap A5.3 • Mapped location of Community Facilities & Child Care CentresMap A5.4 • Mapped location of Affordable Housing

Map A5.5 • Mapped location of Aged AccommodationMap A5.6 • Mapped location of Public AmenitiesTable A5.1 • Consolidated List of Buildings, including:

- Full list of buildings- Individual preliminary condition assessment ratings- Relative assessments of order of cost to bring assets to standard

and maintain them at standard thereafter- Initial environmental performance rating- Initial ratings of each building’s capacity to support the service

provided through the asset- Constraints on change of use- Assets under consideration in the Investment Strategy- Assessment of financial performance of assets- Generic recommendations for maintenance of assets, preliminary to

the results of the more detailed Asset Condition Survey.

Appendix A.6 – Urban Open Spaces & Malls

Table A6.1 • Consolidated List of Urban Open Spaces & Malls, including:- Full list of assets in this grouping- Individual preliminary condition assessment ratings- Relative assessments of order of cost to bring assets to standard

and maintain them at standard thereafter- Initial ratings of each building’s capacity to support the service

provided through the asset- Constraints on change of use- Assets under consideration in the Investment Strategy- Generic recommendations for maintenance of assets, preliminary to

the results of other related plans and the Investment Strategy.

Appendix A.7 – Beach & Coastal Infrastructure

Table A7.1 • Consolidated List of Beach & Coastal Infrastructure, including:- Full list of assets in this grouping- Individual preliminary condition assessment ratings- Relative assessments of order of cost to bring assets to standard

and maintain them at standard thereafter- Initial service performance rating- Generic recommendations for maintenance of assets, preliminary to

the results of the other related plans and the Investment Strategy

Appendix A.8 – Parks & Reserves

Map 8.1 • Mapped locations of Council’s parks and reservesTable A8.1 • Consolidated List of parks, reserves and road closures including:

- Full list of assets in this grouping- Individual preliminary condition assessment ratings of:

- Garden beds- Turf- Trees- Play Equipment- Furniture- Irrigation- Lighting- Fences & Bollards- Footpaths- Steps- Retaining Walls- Signage

- Relative assessments of order of cost to bring assets to standardand maintain them at standard thereafter

- Initial service performance rating- Generic recommendations for maintenance of assets, preliminary

to the results of the other related plans and the Investment Strategy- Note that 57% of assets (45 out of 79) in this grouping have

received preliminary assessment for inclusion in SAMP 1. Theremainder will be assessed for inclusion in SAMP 2.

Appendix A.9 – Cemeteries

Map 9.1 • Map of Waverley Cemetery & SurroundsTable A9.1 • Consolidated list of assets within the Cemeteries, including:

- Individual preliminary condition assessment ratings- Relative assessments of order of cost to bring assets to standard

and maintain them at standard thereafter- Initial service performance rating- Generic recommendations for maintenance of assets, preliminary

to the results of the other related plans and the InvestmentStrategy.

Appendix A.10 – Other Infrastructure

Map A10.1.1 • Location of parking meter infrastructure

TABLE OF CONTENTSSAMP 1 - APPENDIX B

Appendix B.1

AttachmentB1.1

• Council Paper Establishing SAMP Project – Finance, Ethics &Strategic Planning Committee of Council – 5 August 2003

AttachmentB1.2

• Council Paper Providing Progress Report Production of on SAMP1 – 13 December 2005

AttachmentB1.3

• Council Paper Endorsing SAMP 1 – Finance Ethics & StrategicPlanning Committee of Council – 7 March 2006

Appendix B.2

AttachmentB2.1

• A Framework for Assessing Asset Management Performance inAustralia

AttachmentB2.2

• Asset Management Self Assessment Questionnaire Analysis

Appendix B.3

Issues Paper 1 • Lifecycle or Long Term Costing.Issues Paper 2 • Depreciation of AssetsIssues Paper 3 • Estimated Costs to bring Assets to a “Satisfactory” ConditionIssues Paper 4 • AAS 27 Reporting on Parks & Recreation AssetsIssues Paper 5 • Non FeasanceIssues Paper 6 • Levels of Service

SAMP 1 – Executive Summary Page 1

EXECUTIVE SUMMARY

This plan is Waverley Council’s first Strategic Asset Management Plan (SAMP 1).

It is a plan which operates in conjunction with a range of other plans affecting assetsto ensure optimal results from our future Asset Maintenance Programs.

1. Approach

SAMP 1 establishes a new approach to asset management for Waverley. It puts inplace a cycle of activities that will need to be undertaken by officers on a regular basisto progressively improve the effectiveness and cost-efficiency of maintenanceprograms for the very wide array of assets for which Council is the custodian. Thesecyclic activities consist in ensuring that we do the following as a minimum:

Maintain data on assets: Consolidate and maintain up to date knowledge ofour assets and their features within acomprehensive data base.

Understand theircondition:

Survey the condition of assets in each category atspecified regular intervals to suit effective planningtimeframes for each asset category.

Assess their suitabilityfor use:

Implement a process to assess and review therelevance of assets in terms of their current andcontinuing capacity to service customer andcommunity needs.

Assess their risks: Assess and register risks associated with assetsand factor key risks into maintenance plans.

Assess their impacts andbenefits:

Assess any environmental, social and financialimpacts of operation of assets.

Revise the compositionof the asset portfolio:

Use all the knowledge gathered above andrecommendations of other relevant plans such asthe Investment and Accommodation Strategies torevise and confirm an optimum set of assets to beretained and/or modified for use.

Develop maintenanceplans:

Devise annual maintenance plans based oncondition survey results taking into account recommendations arising

from strategic and direction-setting plans suchas the Waverley Strategic Plan and theInvestment and Accommodation Strategies, and

allowing prioritisation within budget constraints.

Plan for acquisition andallocation of resources:

Prepare financial and human resource plans tosupport the delivery of maintenance programs.

The strategic approach is to base decisions on relevant knowledge about assets inpreference to or in addition to more traditional accounting approaches. Establishmentof this cycle of activities effectively changes Council’s operational processes for asset


management from an uncoordinated approach to a business excellence approachfocussing on:

conducting condition assessments, integrating decisions with other plans and assessing the role of assets in

achieving Council’s Vision and priorities, performance measurement, and continuous improvement.

2. Coverage

SAMP 1 attempts to provide a range of information with a reasonable degree ofconfidence to give general picture of the current condition of 9 major categories ofassets.

1. Roads2. Footpaths3. Kerbs & Gutters4. Stormwater Assets5. Buildings6. Urban Open Spaces & Malls7. Beach & Coastal Infrastructure8. Parks & Reserves Infrastructure9. Cemeteries

A 10th category titled “Other Infrastructure” is also scoped but will not be advanced indetail until future SAMPs. The 10th category is likely to cover “Other Infrastructure inthe Public Domain” including:

bus shelters, fencing, retaining walls, stairs, street lighting, street furniture, signage, and parking infrastructure.

Other asset categories may also considered for inclusion in future SAMPs such as:

Trees in Public Streets Bike Routes and Facilities Traffic Infrastructure

3. Main Findings

3.1 Condition of Assets

The condition of assets covered within the plan has been assessed on a preliminarybasis using a 5-point rating system as follows:

Condition Rating 1 - Good ConditionCondition Rating 2 - Minor DeteriorationCondition Rating 3 - Medium DeteriorationCondition Rating 4 - Major DeteriorationCondition Rating 5 - Unserviceable


By using this rating system in preliminary assessments of the condition of assets ineach of the categories, excluding stormwater assets, we have been able to make thefollowing reasonable conclusions:

1. The majority of assets could be considered to be in either good condition orsuffering only minor deterioration.

2. A reasonably significant minority of assets are suffering medium deterioration.

3. A smaller minority of assets are suffering major deterioration.

4. Only one asset is deemed unserviceable – the decommissioned WaverleyWoollahra Processing Plant.

5. The condition of stormwater assets is largely unknown and further investigation isrequired.

6. Overall, our parks and reserves are likely to be considered to among the better ofour assets in terms of condition.

7. Cemetery assets would appear to be in relatively poorer condition overall,compared to other categories.

8. Overall, our buildings are in good or reasonable condition. Further reviews arerequired however, to determine the condition of the Bondi Pavilion.

As stated above, condition assessments recorded in the plan are preliminary. Theywill be revised on an ongoing basis. They also have an element of subjectivityparticularly for assets in poorer condition, due to interpretations of what constitutes a“satisfactory standard” for an asset.

This plan recognises that there are, and will continue to be, differences as to thedefinition of “satisfactory condition”. These differences, however, do not generallyaffect the assessment of the relative condition of assets within a category in a mannerthat would be significant enough to hamper effective planning. Very effective actionplans can and have been developed to improve the condition of assets,notwithstanding differences about what constitutes “satisfactory” at this time.

3.2 Current Performance in Management

In preparing SAMP 1 a preliminary assessment of how well we are managing assetswithin a business excellence framework has been undertaken. Results of thispreliminary assessment suggest that Waverley is currently achieving a systematicapproach to asset management but has some way to go before we achieve bestpractice. Implementation of SAMP 1 will further improve our scores in businessexcellence in asset management.

3.3 Objectives for Management and Improvement

To ensure continuous improvement, SAMP 1 proposes the adoption of specificobjectives measures and targets for asset management. Action plans for eachcategory of assets have been developed to help propel the organisation towardsachievement of these objectives. The objectives are based on the followingassumptions:


1. Council should be a good steward of its assets.

• This means that we should aim responsibly to protect assets for currentand future generations, which in turn implies defining minimum standardsfor maintenance.

2. We should ensure we have the right assets for the job – ones capable ofdelivering the services and environmental outcomes we need at least cost andimpact.

• This means we should aim to select and optimise assets for both theirpotential effectiveness and efficiency and to minimise their costs andimpacts.

3. Our assets should provide for changing community needs.

• This means we should ensure that our assets are capable of supportingdelivery of services, maximising their contribution to defined socialoutcomes and maintaining their relevance as demands change.

SAMP 1 Action Plans have therefore been organised around 3 strategic themes of:

1. Achieving sound STEWARDSHIP

2. OPTIMISATION of the portfolio for efficiency and effectiveness.

3. Ensuring assets enhance service delivery and maintain their RELEVANCEto need through time.

For each of these themes we have developed the following objectives:

Theme Objective

Stewardship To ensure the protection of assets for current and futuregenerations.

Optimisation To ensure the portfolio is composed in an optimal balance tomaximise desired social outcomes at least cost and impact.

Relevance To continuously improve the contribution of assets toenhanced service delivery and maintain the relevance ofassets as service demands change.

3.4 Measures and Targets

To ensure we can monitor performance and achievement of outcomes, SAMP 1 setsup specific measures of overall performance which variously apply, or don’t apply,depending on the category of assets. The measures are:


Theme Measures

Stewardship Assets registered Standards prescribed for condition of assets Asset audits / condition surveys completed Planning cycles completed and implemented Investment maintained at levels sufficient to ensure targets

for asset maintenance can be met Maintenance plans developed and implemented Risk rating of assets Heritage protected

Optimisation Contribution of assets to community outcomes Environmental performance of assets Financial performance of assets Achievement of a balanced portfolio

Relevance Results from surveys of customer satisfaction with key assets Results from internal user/operator surveys Percentage of accepted recommendations for asset

improvement implemented.

Targets setting the desired level of achievement under each measure are set out inChapter 4.

SAMP 1 itself achieves one of these targets by proposing adoption of Draft MinimumPreferred Standards for Maintenance of Assets. These show the minimum desirablecondition we would like to see for our assets. In addition to these generic targets anddraft minimum preferred standards, the Action Plans for each category of assets havebeen developed with varying targets for the minimum proportion of assets that shouldmeet these targets. Selection of these latter targets has been based on the currentunderstanding of financial and human resource capacity. This understanding and thetargets are to be refined on an ongoing basis.

SAMP 1 also prescribes the desirable frequency of Condition Surveys applicable foreach of the nine categories of assets. This is central to our ability to plan effectively.

Performance against the targets of the plan will be monitored annually via theManagement Plan.

3.5 Financial Implications

Achieving targets and continuous improvement in asset condition is something that isnaturally limited by financial and human resource issues.

Therefore with the exception of Urban Open Spaces and Malls, targets selected in theAction Plans do not at this time pose a marked change in the pace or level ofinvestment in asset maintenance from the level that we have been sustaining inrecent years. They tend to set the benchmark at the current level of asset condition,placing the emphasis on making sure that the proportion of assets in the poorerCondition Ratings of 3, 4 or 5 does not increase beyond the current level. This is notmeant to imply that we have set a low benchmark or that we consider the currentstandard of our assets to be suitable in the long term. Realistically it would beexpected that our investment in maintenance must increase beyond the amounts weare dedicating to it now.


Targets for Urban Open Spaces and Malls do set a higher benchmark. This is areflection of the improvement in standard that can be expected to occur as a result ofthe investment that Council has programmed for those assets in recognition ofchanges in community preferences and values.

Council has been progressively increasing expenditure on assets for some years andit is expected that with careful planning we will be able to continue a pattern ofincreased spending. SAMP 1 and future SAMPs will ensure that the effectiveness ofour expenditure also improves.

For SAMP 1 we have conducted our first revision of whether past published figures inour Audited Annual Statements of Accounts about amounts required for assetmaintenance are appropriate. The revision has resulted in a reduction of previouslyreported estimates of the expenditure that will be necessary to bring our assets to asatisfactory condition and keep them there.

The reduction applies to assets in Categories 1 to 5 – Roads, Footpaths, Kerbs &Gutters Drains and Buildings – is as follows. In these figures we have reduced theestimate for four out of those five categories. The fifth category which has not beenreduced is drainage. Further investigation is required to determine whether theestimates for drainage can be revised downwards along with the other fourcategories.

Estimated Reductions in Previously Reported Costs to Bring Assets inCategories 1 – 5 to a Satisfactory Condition

Cost to bring to a“Satisfactory Condition”

Annual cost to maintain at“Satisfactory Condition”

Reported June 2004 $93,235,000 $8,738,000Revised June 2005 $60,033,000 $5,794,000Total reduction $33,202,000 $2,944,000% Reduction 35% 33%

Investigations of our current budget allocations for the next five years show that,despite the reduction in the amounts that may be required, there is still a gap betweenthe estimated funds required and the amounts currently forecast in Categories 1 to 5over the next four years. SAMP 1 estimates show this gap could be in the order of$3.3 million per year across a 10-year program but this is a preliminary estimate only.It is estimated that the majority of the shortfall would be for stormwater drainage asthe other assets in Categories 1 to 5 seem to be either relatively well funded or can befunded adequately enough where there is lower risk.

SAMP 2 should help refine the assessment of how large the shortfall is for drainage.

Various types of assessments will need to be undertaken over time to assesspotential costs of future maintenance necessary for assets in Categories 6 to 10.

Financial estimates of the cost to bring assets to a satisfactory condition will obviouslychange again if the view of what constitutes a “satisfactory standard” for assetschanges. For example, increasing demands to make Waverley “look good” or evenbetter, as the case may be, will change the definition of “satisfactory”. This will raisethe desired standard of finish and presentation for public spaces including footpathsmalls, and the like with a corresponding increase in estimates necessary to achievethat higher standard.


Financial estimates of the cost of future maintenance will also increase if Councilcontinues to create new assets. SAMP 1 recommends that planning for maintenanceshould occur whenever a new asset is established and that new works should only belisted on the capital works program with an allocation included for maintenancefunding in the recurrent budget.

The process of setting the initial targets so that the average condition of each assetcategory does not deteriorate is believed to be financially sustainable for the moment.While programmed expenditures might not be as high as might be ideally implied bycurrent assessments of need, they are nevertheless substantial and Council shouldbe able to control risks associated with assets.

SAMP 2 will attempt to answer the majority of the questions that need to be answeredto confirm whether there is a gap between necessary levels of funding in any assetcategory and what that gap might be. It should also provide insight into how we mightprogram available funds effectively and/or shape the portfolio to minimise the cost ofmaintenance. By establishing a cyclic set of activities SAMP 1 gives us the means toachieve a sound knowledge of assets and the ability to integrate our decision makingso that we can optimise the composition of our asset base over time. Use of theknowledge that comes from adopting the approaches established by SAMP 1 is thekey to reducing or closing a funding gap and it is the key to understanding andminimising the relative risks of the many different decisions that can be made aboutallocation of available funds.

3.6 Other Resource Implications

The process of preparing SAMP 1 has allowed us to consider questions aboutCouncil’s financial capacity to maintain assets but somewhat less consideration hasbeen given to issues surrounding our organisational capacity to maintain assets.Organisational capacity issues cover such things as:

our human resources and their skills and experience in managing assets, the supply of skilled resources in the market and our ability to attract and retain

skilled staff, our capacity in planning and project delivery, our relationships with providers of maintenance services, our systems, data base and knowledge management capacity, and the effectiveness of our business processes for asset review and delivery of

improvements.

Several studies have been and are being undertaken of the financial sustainability oflocal government in relation to assets but few have touched on the issue oforganisational capacity.

SAMP 1 requires some substantial changes in process management particularly inmanagement of knowledge, condition and risk assessment, and planning. As such itwill impose significant new demands on staff. The Executive is discussing the likelyneed for an assessment of our organisational capacity in relation to assetmanagement to inform the production of SAMP 2 and ensure continued realisticplanning in a business excellence framework.

3.7 Key Recommended Actions for the Short Term

Action plans in SAMP 1 have been designed to help maintain assets and reduce riskwhile we dedicate extra expenditure to acquiring knowledge of the condition of assetsand revising expenditures in later SAMPs based on that knowledge. Key activities


recommended by this plan to close important knowledge gaps are:

1. Development of a consolidated asset information system within Council’s LIS tolocate and register other details of assets.

2. Establishment of a new Pavement Management System (PMS) to register thecondition, risk and use of roads, footpaths kerbs and gutters to assist in revisionand confirmation of 20-year maintenance plans.

3. Establishment of a stormwater mapping and modelling data base to buildknowledge of the actual condition of key drains in terms of both their capacity andstructural soundness and facilitate decision making on renewal and maintenance.

4. Completion of an up-to-date Asset Condition Survey of the Bondi Pavilion.

5. An assessment of our organisational capacity to support maintenance of assets,including human resource needs, preferred industry relationships and financialplanning.

3.8 Recommendations on Works

In terms of recommendations for works, SAMP 1 provides the following for each of theasset groups:

Category Assets Approach to recommending works1, 2 & 3 Roads,

footpaths,kerbs &gutters

Detail is provided on past works, condition ratings andtreatments.

Information available is advanced and will be vested in anew Land Information System and data base. A new PMSmay result in revision of the 20-year plan in SAMP 2.

Consolidates a map of priority areas likely to require worksover the next 20 years. These areas selected are areas ofknown poorer condition.

The consolidated maps will be regularly revised and will beused to give guidance to managers as they prepare theirAnnual Maintenance Plans for Infrastructure prior tosubmission to Council each year.

4 Stormwaterdrainage

No works recommended in SAMP 1. The focus will be in investigation with a view to providing a

more accurate indication of risk and a suggested program inSAMP 2.

5, 6, 7, 8& 9

Buildings,urban openspaces &malls, beach& coastalinfrastructure, parks andreservesinfrastructure, cemeteries

No particular works recommended. Recommendations areprovided for individual assets in general as one or more ofthe following: Routine cyclic maintenance in line with asset condition

survey. Delay major works pending Investment Strategy

outcome. Review suitability/serviceability in medium term. Continue major investment in line with adopted POM,

Capital Works Plan or known Order. Delay investment pending specific investigation of

planning process. Urgent maintenance only.

10 Otherinfrastructure

No works recommended. To be scoped in SAMP 2.


4. Conclusion

SAMP 1 offers some substantial benefits in terms of Waverley Council’s capacity tomethodically and effectively plan for the future of its assets. It may be viewed as adiagnostic document addressing the issues we face as asset managers, laying afoundation for further improvement in business processes.

SAMP 2 is due to be produced within the next year and will have the benefit of moreinformation about asset condition. This will enable us to set firmer or perhaps evenmore ambitious targets for improvement of assets and develop financial plans tosustain our assets in a condition that we agree is “satisfactory”.

Ongoing implementation of the cyclic activities recommended in SAMP 1 should helpensure expenditure is targeted on balance to the most appropriate assets, bearing inmind community preference, potential environmental outcomes, financialconsiderations and risk. It is to be hoped that SAMP 1 and future SAMPs will providea sound process to achieve business excellence in asset management within anintegrated planning framework into the future.

SAMP 1 – Summary of Major Actions Page 1

SUMMARY OF MAJOR ACTIONS

SAMP 1 proposes a range of cyclic activities and one-off projects to assemble and maintainknowledge of assets as a foundation for sound planning.

1. Key Projects for the Short Term – 2006/2009

Table 1 – Key Projects for the Short TermProject Who Commencing

a) Development of a consolidated asset information systemwithin Council’s LIS to locate and register other details ofassets.

CTS /PES

2005/06

b) Establishment of a new Pavement Management System(PMS) to register the condition, risk and use of roads,footpaths kerbs and gutters to assist in revision andconfirmation of 20-year maintenance plans.

TechServices

2005/06

c) Establishment of a stormwater mapping and modelling database to build knowledge of the actual condition of key drainsin terms of both their capacity and structural soundness andfacilitate decision making on renewal and maintenance.

TechServices

2005/06

d) Completion of an up-to-date Asset Condition Survey of theBondi Pavilion.

BSP 2005/06

e) An assessment of our organisational capacity to supportmaintenance of assets, including human resource needs,preferred industry relationships and financial planning.

FISS /HROD

2005/06

f) Production of future SAMPs. FISS 2006/07

2. Other Major Ongoing Activities

Table 2 – Major Ongoing ActivitiesActivity Who Commencing

a) Implement a process to assess and review the relevanceof assets in terms of their current and continuing capacityto service customer and community needs.

Various 2006/07

b) Assess and register risks associated with assets andfactor key risks into maintenance plans.

CTS Already inplace.

c) Assess any environmental, social and financial impacts ofoperation of assets.

Various 2006/07

d) Use all the knowledge gathered above and recommendationsof other relevant plans such as the Investment andAccommodation Strategies to revise and confirm an optimumset of assets to be retained and/or modified for use.

CTS With SAMP 2.

e) Devise annual maintenance plans based on condition surveyresults but taking into account recommendations arising fromrelated plans such as the Waverley Strategic Plan and ourInvestment and Accommodation Strategies.

Various 2006/07

f) Prepare financial and human resource plans to support the FISS/HR With SAMP 2.


Table 2 – Major Ongoing ActivitiesActivity Who Commencing

delivery of maintenance programs. ODg) Complete self-assessment of performance in asset

management within a business excellence framework.FISS With SAMP 2.

h) Progress Reports on achievement of SAMP targets. FISS With SAMP 2an then in Man

Plan from2006/07.

3. Condition Surveys - Recommended Frequency

Table 3 – Asset Condition SurveysAsset Condition Survey Frequency Who Commencing

1 Roads • Every 5 years in line with renewaland update of PavementManagement System.

TechServices

2005/06

2 Footpaths • Every 5 years in line with renewaland update of PavementManagement System.

• Visual inspections every 2 – 3years.

TechServices

2005/06

3 Kerbs & Gutters Every 5 years in line with renewaland update of PavementManagement System.

TechServices

2005/06

4 StormwaterAssets

Every 10 years or as prescribedfor sections selected in riskanalysis.

TechServices

2005/06

5 Buildings • Every 5 years unless a morefrequent inspection maintenanceregime is adopted.

BSP 2010

6 Urban OpenSpaces & Malls

• Not applicable. Daily maintenanceinspection of major malls to apply.

N/A

7 Beach &CoastalInfrastructure

• Every 3 years for structural integrityfor coastal and cliff walk, sea walls,pools.

• Additionally, monthly for detection offaults on boardwalks.

• Additionally, every day formaintenance inspections ofspecified pathways and fences,lookouts, coastal signage.

RCCS

RCCS

RCCS

2009

Already inplace.

Already inplace.

8 Parks &ReservesInfrastructure

• Every 5 years for infrastructure.• Additionally:

- all major parks inspected andmaintained on a daily basis.

- all other parks and reserves

RCCS

RCCS

2010

Already inplace.


Table 3 – Asset Condition SurveysAsset Condition Survey Frequency Who Commencing

inspected and maintained every6 weeks.

- play equipment in major parksand reserves inspected daily.

- play equipment in other parks orreserves inspected every 4-6weeks.

9 Cemeteries • Every 5-10 years for majorinfrastructure.

• Additionally, every day forlandscape condition, fencing.

BSP

BSP

2010

Already inplace

OtherInfrastructure

Generally:

• bus shelters • Every 5 years. TechServices

TBA in SAMP 2

• fencing • Every 5 years. TechServices

TBA in SAMP 2

• retaining walls • Every 10 years. TechServices

TBA in SAMP 2

• stairs • Every 10 years. TechServices

TBA in SAMP 2

• street lighting • Every 10 years if not replaced before. TechServices

TBA in SAMP 2

• streetfurniture

• Every 10 years if not replaced before. TechServices

TBA in SAMP 2

• signage • Every 10 years if not replaced before. TechServices

TBA in SAMP 2

10

• parkinginfrastructure

• Rotated but not less than once a weekfor each parking meter.

TechServices

Already in place.

SAMP 1 – Chapter 1 Page 1

1. INTRODUCTION

This is Waverley Council’s first Strategic Asset Management Plan – SAMP 1. It is the first of aseries of SAMPs that will be produced and regularly reviewed to ensure long term effectivemanagement of assets.

1.1 Background – Origins and Coverage of the Plan

Waverley was the second Sydney suburb to become a municipality on 13 June 1859. It isnow the most densely populated local government area in Australia. Waverley's highpopulation density, together with its attraction of high numbers of both local, and overseasvisitors, continues to place considerable pressure on all of its non-current assets. The futurestrategic management of these assets is a matter of vital concern for Council and thecommunity.

Non-current assets may be either a physical item (such as land or buildings), or intangible(such as computer software or intellectual property). This strategic plan deals only withphysical assets. These assets have been developed, and are maintained, to support thedelivery of council services to the residents of Waverley.

Council owns and operates a number of basic assets to service the needs of both theresidents of Waverley, and visitors, including:

1. Roads.

2. Footpaths.

3. Kerbs & Gutters.

4. Stormwater Assets.

5. Buildings.

6. Urban Open Spaces & Malls.

7. Beach & Coastal Infrastructure.

8. Parks & Reserves Infrastructure.

9. Cemeteries.

10. Other Infrastructure, including:

bus shelters, fencing, retaining walls, stairs, street lighting, street furniture, signage,


parking infrastructure.

This plan represents a first step in an ongoing process of planning for effective and efficientmaintenance of physical assets. It covers the first 9 of the above 10 asset categories. FutureSAMPs will be expanded to cover the 10th category and perhaps other assets such as treesin the public domain, bike routes and facilities, and traffic infrastructure.

The plan is prepared in recognition of Council’s obligations as custodian of public assets andthe challenges that Waverley and all councils face in management of diverse public assets ona large scale.

The plan also responds to concerns raised by the various State Governments on thechallenges of infrastructure management facing Local Government. In NSW these concernsrelate primarily to the varying capacity of different councils to finance infrastructure renewal atan appropriate pace. In responding to these concerns, this plan proposes an approach toasset management which is based less on the traditional accounting standards that havebeen used for planning purposes in the past, and more on ongoing condition basedassessments of assets. In this regard the plan proposes we follow a methodological trenddeveloping across the Australian public sector which favours a knowledge based approach toasset management in preference to an approach dominated by accounting and depreciation.

Generally, the recommendation of this plan is to use up to date information about the currentactual condition of assets and future demands for their use to achieve a portfolio of assetsthat can be maintained to a standard sufficient to:

• meet the needs of users in the most cost-efficient and effective manner,• minimise risk and threats to safety,• minimise impacts on the environment and use of resources.

1.2 Methodology

1.2.1 Local Government Asset Management Methodologies in New SouthWales

In recent years there has been considerable debate at the state and local governmentlevels across Australia as to the most effective methodology for predicting andplanning the expenditure necessary to ensure assets are maintained to a satisfactorystandard.

In September 2004 the Premier of New South Wales released a paper titledStructural Reform of Local Government in New South Wales. Prepared by theDepartment of Local Government, the paper focussed on the varying financialcapacities of councils to manage their infrastructure and building assets. The paperexpressed substantial concern about the way in which councils maintain their assetsbased on the published figures from councils of the costs to bring their assets to a“satisfactory standard”. These figures vary widely across Councils, partly becauseliabilities naturally differ but also because of the widely varying approach amongcouncils to the use of applicable accounting standards in defining the cost ofmaintaining assets to a “satisfactory standard”. This variation is inevitable becauseaccounting standards never define what constitutes a "satisfactory" standard for an


asset and decisions by individual councils as to what constitutes “satisfactory” aretherefore essentially arbitrary. As such, the comparison of the costs between councilsis more likely than not to be misleading.

There are, however, alternative approaches to assessing costs for asset maintenanceand planning investment. These can be used in addition to or in place of accountingmethods. Generally they have greater utility for planning purposes. Theseapproaches have been adopted in other states in the local government sector.

1.2.2 Methodologies Adopted in Local Government in Other States

To date, no overall comprehensive study of the different types of challenges facinglocal government in asset management has been undertaken in New South Wales.Studies have, however, been undertaken into asset management in local governmentin Victoria and South Australia covering the situation in every council in those states.The key findings of these two studies were similar:

i) Within about ten years most councils will be facing significant increases inspending levels to renew their assets, in some cases, three to five times thelevel of existing spending.

ii) There are many councils that do not have asset management strategies orplans - the focus being on operational rather than strategic needs.

iii) Councils have poor asset registers, but do have access to other sources ofasset data (eg information gathered for insurance purposes).

iv) There is a lack of understanding about the relationship between assetmanagement life cycle costs, economic lives and depreciation.

v) Despite the large asset stocks held, councils are increasing the asset stockfaster than they are renewing it.

vi) Service levels are poorly understood by councils and their communities,therefore assets are 'held on to' even when they make little or no contributionto the community."1

It can be reasonably assumed that these key findings would apply to many councils inthis state.

The findings denote the need for a more flexible considered methodology which willallow councils to assess more accurately the actual cost of bringing assets to anacceptable standard. A key feature of this methodology is knowledge:

• knowledge of the actual condition of the asset,• knowledge of the preferred use of the asset in service provision and its suitability

for that, relative to other ways of providing the service, and• knowledge of the desired standard for maintenance of the asset.

1.2.3 A Methodology for Waverley

Like most councils Waverley is limited in its means. As the South Australian Studyfound:

1 'Asset management - the dilemma for local governments' - David Hope


Funding for asset management has to compete with all of the other demandson council, and recently these demands - for social and environmentalreasons as well as for increased services - have themselves been increasing.Revenue increases have not kept pace with these extra demands; a limitedrevenue base and community sensitivity to tax (property rates) increaseshave been the main reasons.2

The task facing Waverley is to establish a strategic action framework for each of itsageing major asset categories, allowing it to approach their future improvement andmanagement in the most responsible and cost-effective manner. While such a taskmay reveal the need to make additional funds available in certain areas, a knowledgebased approach of ongoing assessment of both the condition of assets and desiredcommunity standards has the best potential to assist Council to contain costs in thelong run and prioritise investment wisely.

1.3 Purpose of SAMP 1

The purpose of this plan is to set Council on a path towards continuous improvement assetmanagement within a business excellence framework. It is to put in place a strategicapproach for the management and maintenance of an appropriate portfolio of assets whichwill:

• be suitable, safe and structurally sound for the purposes for which the community maywish to use them; and

• have minimum impact on natural resources and the environment.

It is also designed to position Council:

to effectively manage risks, impacts and opportunities and to allow it to develop funding and other resource plans to reach best practice in asset

management.

SAMP 1 may be viewed as a diagnostic document addressing the issues we face as assetmanagers and laying a foundation for further improvement in business processes. Itestablishes cycles of regular activities to ensure sound management and decision making.

SAMP 2 is due to be produced within a year of SAMP 1 and will have the benefit of moreinformation about asset condition. This will enable Council to set firmer or perhaps even moreambitious targets for improvement of assets and refine financial plans to sustain our assets ina condition that we agree is “satisfactory”.

2 Report on the Potential from Infrastructure Asset Management in South Australian Local Government- Dr Penny Burns, Jeff Roorda, David Hope


2. STRATEGIC ASSET MANAGEMENT PLANNING

2.1 Adopting a Strategic Approach

Adopting an approach to asset management can be a can be somewhat confusing.Practitioners of asset management in the government sector across Australia all subscribe tothe need to take a “strategic” approach to asset management but they tend to be moregeneral than specific when they define “Strategic Asset Management”. Moreover, throughoutthe government sector it is difficult to find tangible examples of what could be easilyrecognised as “best practice” strategic asset management. This makes the definition of anapproach important.

As stated in Section 1 above, a knowledge based approach has potential to assist plannersto estimate costs of asset maintenance more effectively than applications of traditionalaccounting standards. But choices based on that knowledge need to be made within astrategic framework if the knowledge is to be used effectively enough to reach optimaldecisions and achieve demonstrable progress towards achievement of targets. Waverley isat present engaged in a number of planning activities that will provide a comprehensivestrategic framework for decision making. See Section 2.2.2 below on Integrated Planning.But within that context, strategic asset management planning requires some further definition.

General definitions of strategic asset management planning suggest that it is the systematicprocess of planning, maintaining and operating physical assets, cost-effectively, over their lifecycle to optimise the future financial, environmental and social benefits to stakeholders.Strategic asset management planning should provide a framework to support both short andlong-term planning. A distinguishing feature of a best practice strategic asset managementplan, at least for the public sector, should be that its success can be measured ultimately in a“triple bottom line” accountability framework. A further dimension in which planning successmight be measured is in terms of risk reduction. Ideally in local government, improvements inasset management arising from a well conceived plan should be able to be reported withinCouncil’s various reporting processes, including the Management Planning, State of theEnvironment and risk management reporting processes.

In short, public sector strategic asset plans must incorporate a balance betweenenvironmental, social and economic factors in determining strategic goals, which, in turn,define required future service levels.

Defining required future service levels from a social or customer satisfaction point of view islikely to prove quite difficult for assets as a whole. Residents of Waverley have not in pastsurveys articulated any overall or particular dissatisfaction with assets or with our stewardshipof them and there has been little, if any, consequent call for development of positivelyexpressed desired service levels for assets. (See Appendix B3, Issues Paper 6 for asummary of results of satisfaction with assets from our most recent customer and communitysurvey - “Project Wave”.) The recently released Waverley Strategic Plan has, however,provided broader indications of demands for service that will have implications for assets.

Council's portfolio of assets is both an investment in the future of the community, and apotential source of substantial liabilities if not properly managed. Strategic asset managementplanning allows a structured and systematic resource allocation approach to infrastructureand building asset management so that resources are aligned with the service objectives of


Council but within a risk management context. It will be an approach that will enable Councilto make future decisions about the management of its assets based on the priorities ofcompeting projects and reduction of risks and impacts.

2.2 A Strategic Approach for Waverley

Waverley is a small local government area supporting and using a somewhat narrowervariety of assets than many other councils. For instance, we do not operate water andsewerage systems, bridges, airfields and the like. So we can concentrate on developingapproaches that suit the smaller variety of assets that we do have.

A strategic approach will essentially depend on the knowledge we can amass andunderstand about the actual physical condition and impact of our assets. But importantly it willalso depend on our ability to look at the portfolio of assets as a whole. Given where we arewith our knowledge of our assets we propose to adopt an approach which allows us to look atassets in several ways, including:

• in relation to each other;• in relation to alternative assets or alternative ways of delivering a service;• in terms of their total contribution to desired social outcomes;• in terms of the effect of their operation on the environment;• in relation to statutory minimums for risk management and public safety; and• in terms of whether the total portfolio is composed and used optimally to achieve stated

objectives in the most cost-effective way.

We propose to achieve this by adopting a total asset management framework promoted bygovernments throughout Australia but with particular emphasis on:

1. adopting a “condition based” assessment approach for existing assets to determinethe need and priority of upgrade, renewal and maintenance of each asset;

2. taking an integrated planning approach, which prioritises potential upgrades,acquisitions and disposals within the recommendations of other key strategies includingin particular:

• the Investment Strategy,• an Accommodation Strategy for Council staff and delivery of operations, and• the Waverley Strategic Plan.

3. measuring performance against objectives and targets over time; and

4. applying improvements continuously, based on reviews of performance, includingprogressively applying tests to reduce resource consumption and environmental impactsof assets.

2.2.1 Condition Based Assessments

The “condition based” assessment approach referred to above represents something of ashift in or rather an additional approach to the standard approaches taken by Local


Government in assessing the extent of liability for asset renewal. It allows us to assessthe total liability as we always do but it allows us to do this more accurately and toprioritise investment more effectively.

Councils in general, like most businesses, attempt to understand how quickly thepotential future contribution of their assets to service delivery may be reduced throughwear and tear and therefore how the “value” of their assets is diminishing over time. Theyhave used various depreciation methods to calculate the cost of this capital assetconsumption. In theory, the practice of calculating depreciation should allow Councils tocover the cost of consumption of capital assets by factoring that cost into the price of theirservices each year. The exercise of reducing annual profit by calculating the expense ofdepreciation should enable a council to plan and account for paying off loans taken out tocreate the asset or replace it with a better one. But in practice it is doubtful if depreciationis often used for this purpose in Local Government.

In reality, when preparing annual statements of liability for asset renewal each yearaccountants do one thing and asset managers do another:

Accountants look at depreciation as required under the accounting codes appliedfrom time to time.

Asset managers separately attempt to come to grips with the cost of renewing assetswithout necessarily having regard to values as determined after depreciation.

Neither of them connect this to price setting.

At Waverley the assessments of the accountants as to residual asset value and theassessments of the asset managers as to “estimated cost to bring assets to a satisfactorystandard” are reported each year on the same page in the Annual Statement of Accountsunder Special Schedule No. 7. But the connection between the two reports is tenuous atbest, as it must be for many councils, if not all. This is inevitable when asset managersare not required to have regard to:

a specific method of calculating the value or even replacement value for the asset, or any common guideline for calculating the cost of bringing assets to a “satisfactory

standard”.

In the absence of such a standard the most logical approach to ensure that asset renewalis planned sensibly is, in the first instance, to adopt an approach that involves anassessment of the actual condition of assets. Over time this approach may be improvedto allow a comparison between that condition and an articulated desirable condition forthe asset taking into account an agreed view of the type of service that asset should becapable of providing or supporting. Such an approach may in turn inform notions aboutthe value of the asset used to calculate depreciation.

Appendix A .1 through A.10 provides a summary of the existing condition of Council'sassets to the extent that this is available at present. This information represents thecommencement of a Consolidated Asset Register containing sufficient information toallow for more strategic decision making. The register will be progressively updated asand when further information on assets is gathered. For the moment the status ofinformation can be summarised as follows:


Table 4 – Status of Asset Condition Assessment DataAsset Condition Assessment Status

1 Roads • Last major conditionassessment conducted in1997.

• Ongoing assessmentsconducted.

• Requires updating.• To be updated next in

association withestablishment of a newPavement ManagementSystem (PMS), mid 2006,and included in SAMP 2.

2 Footpaths • Visual inspection of allfootpaths conducted in2002/03 and thedevelopment of adatabase includingmaintenance priorities.

• Update in late 2005 which iscurrently being reviewed.

• To be updated next inassociation withestablishment of a newPavement ManagementSystem (PMS), mid 2006,and included in SAMP 2.

3 Kerbs & Gutters • Visual inspections werecarried out in 1997.

• To be updated next inassociation withestablishment of a newPavement ManagementSystem (PMS), mid 2006,and included in SAMP 2.

4 StormwaterAssets

• Visual inspection byCCTV of some 36location undertakenbetween 1994 - 2005

• Reasonably current for smallnumber of drains surveyed.

• Requires updating andexpansion to cover broaderhigh risk areas.

5 Buildings • Preliminary assessmentundertaken forpreparation of SAMP 1.

• Detailed Asset ConditionSurvey for all Councilbuildings (except BondiPavilion) receivedNovember 2005 coveringarchitectural, structural,mechanical, electricaland hydraulicrequirements.

• Current.

• Results will be incorporatedinto SAMP 2.


• Preliminary assessmentundertaken forpreparation of SAMP 1.

• Current.

7 Beach & CoastalInfrastructure

• Preliminary assessmentundertaken forpreparation of SAMP 1.

• Current.


• Detailed assessmentcompleted in part

• 57% of parks/reserves/roadclosures completed (ie 45out of 79).


Table 4 – Status of Asset Condition Assessment DataAsset Condition Assessment Status

9 Cemeteries • Surveys undertaken forpreparation of WaverleyCemetery Plan ofManagement, May 2005

• No surveys undertakenfor South HeadCemetery.

• Current.

OtherInfrastructure• bus shelters • None undertaken• fencing • None undertaken• retaining walls • None undertaken• stairs • None undertaken• street lighting • None undertaken• street furniture • None undertaken• signage • None undertaken

10


• None undertaken

The above information will be expanded on an ongoing basis for subsequent Versions ofthe SAMP through continued:

• condition surveys of buildings;• “Pavement Management Surveys” (PMS) for roads;• selective assessments and modelling of stormwater channels for capacity, condition

and environmental impact;• various condition assessments for other infrastructure;• assessments of the environmental impact/efficiency and social contribution of assets;

and• the establishment of a system of ongoing inspection and maintenance regimes.

The Register will provide the first consolidated accessible picture of our assets and will becentral to effective decision making on investment.

2.2.2 Integrated Planning

Condition assessments of the type set out above provide substantial information onmaintenance needs but somewhat less information on the need or otherwise for the assetitself.

Decisions about how assets should be maintained need to be set in the context ofwhether they should be retained or exchanged for a more effective asset, or at least onethat can be maintained more efficiently. A portfolio of assets can be maintained efficientlybut still be ineffective or sub-optimal for delivery of services. The challenge is not just tomaintain an asset well but to maintain the right assets well.


This requires strategic assessment of the potential performance of assets, comparingtheir various capacities to positively contribute to articulated outcomes and the relativecosts and impacts of their operation. This process helps us to create a balanced portfoliothat can achieve optimal efficiency and maximise delivery of diverse services withinavailable means.

SAMP 1 and subsequent SAMPs will aim to achieve this overall strategic assessment byintegrating several planning processes. Waverley has been over the past year engagedin the preparation of a range of plans linked to the SAMP including:

• the Waverley Strategic Plan;• an Investment Strategy; and• an Accommodation Strategy.

At various intervals we also prepare:

• an ongoing capital works program,• an annual asset maintenance plans,• an annual infrastructure renewal program,• an annual risk reduction strategy,• a social plan,• an annual environmental plans, and• a range of other plans at various intervals, such as statutory plans of management for

open space assets, all of which inform decisions on asset requirements.

Each of these plans provides input to the SAMP and is some cases these plans areinformed by activities and knowledge collected as part of the SAMP. Taken together, theycreate a picture of the best possible portfolio of built assets. The SAMP is the linchpinallowing us to consider investment possibilities after choices have been made aboutwhether an asset can and should be maintained within the portfolio. The diagrams belowshow how each of the related plans contributes to the other to build a picture of abalanced portfolio that can be reviewed over time and is capable of being delivered.

The Waverley Strategic Plan, Investment and Accommodation Strategies and the mostrecent Asset Condition Survey of Buildings, all of which are key inputs to the SAMP, willbe received by Council around the same time as SAMP 1. As such, SAMP 1 is beingprepared in parallel to these other key plans. SAMP 2 will be a revision of this initialversion incorporating in particular:

• more detail about service requirements for assets;• revised conclusions about maintenance priorities based on better asset knowledge;

and• refinements of financial projections due to the incorporation of findings on potential

investment options and condition assessments of assets.


Vision to Action for Asset ManagementRelationship of Plans

Waverley Strategic Plan*Describes desired outcomes for

Waverley*Translates these into service

objectives for Waverley Council

Investment Strategy Accommodation Strategy*Sets strategy to achieve optimummix of assets to ensure the most

efficient and effective delivery ofservices

*Analyses the needs for andrationalises accommodation for

resources and operations

SAMP*Sets maintenance and performance

measures for retained assets*Provides knowledge on asset

condition for decision making oninvestment

*Assesses impacts

Other plans Risk Reduction Strategy*Provide framework for decision

making on accessibility, social need,community safety, etc

*Provides risk assessment frameworkfor asset operation and review

Plans of Management*Bondi Park

*Tamarama Park*Bronte Park

*Waverley Park*Waverley Cemetery

Capital Works PlanInfrastructure Program

Annual Asset Maintenance Plans

Management Plan*Tracks performance on high level

measures for assets includingenvironmental, financial and social

performance

Operational Plan*Tracks delivery of programmed

projects for a given year


2.2.3 Monitoring and Improving Performance

Performance monitoring is the key to success in any plan. If we want continuousimprovement in our assets, checking and reporting on progress is fundamental. Twochallenges arise with high level strategic planning, however, that affect our ability tomonitor and improve performance.

The first is to ensure that actions arising from the plan are translated into work plans thatstaff can deliver. At Waverley we do this annually through what is known as a “Vision toAction” process which scans all related plans and ensures their translation into the annualManagement and Operational Plans. These guide staff in day-to-day delivery and allowquarterly monitoring and reporting.

The second challenge is to ensure selection of meaningful performance measures.Measuring the right things depends on us articulating our values for assets. At Waverleyour values for assets essentially shouldn’t differ from our values for everything else. Assuch, the articulated values for Waverley, recently revised through the preparation of theWaverley Strategic Plan will be relevant for asset planning and maintenance decisions.

2.3 Benefits of a Strategic Plan

A plan based on the above knowledge-based approach of:

• condition assessment,• integration of decisions with those of related plans,• monitoring through meaningful measures, and• continuous improvement through translation of revised plans into understandable and

deliverable action schedules

has the best potential to lead to fulfilment of the vision for service delivery though assets.Specific benefits of the process include:

developing cost-effective asset management strategies for the life of the Plan andbeyond;

managing risks associated with asset failures;

demonstrating to stakeholders that services are being delivered effectively and efficiently;

improved customer satisfaction and organisation image;

improved understanding of service requirements and options;

better communication and exchange of knowledge and experience between managers ofvarious types of assets through the Strategic Asset Management Planning Group(SAMPG);

greater accountability and financial efficiency;

guidance on and justification for forward capital works and maintenance programs, and


improved and earlier insight into the financial planning challenge and financial provisionsthat will be necessary to sustain asset maintenance programs.

The SAMP plays a major role in financial planning. SAMP 1 will substantially modify ourcurrent understanding of future financial liability for asset management and successiveSAMPs will allow us to fine-tune this over time. Chapter 6 outlines how SAMP 1 has affectedour view of the cost of maintaining assets into the future.


3. ISSUES & AIMS

3.1 Key Issues

Factors making the preparation of a strategic asset management plan a priority matter forWaverley Council include:

• the age of Council's assets; and• the intense pressure that will continue to be placed on them due to:

- Waverley’s density of population and development;- the year-round high visitor numbers that are attracted to Waverley; and- the resulting high traffic volumes, including both private and public transport.

Like any Council, the funding available for asset renewal is also an issue but the abovefactors place some greater limitations on what can be achieved in asset renewal. One of ourmost critical asset renewal issues is likely to be in stormwater drainage and the fact that thearea is completely and heavily developed places a substantial constraint on our ability torenew these assets. Effectively we often have to wait until re-development occurs to addresscapacity issues in the system. Other infrastructure projects such as public domain works canalso be affected by the varying pace of re-development through time. This is a commonproblem affecting infrastructure renewal programs in an old city like Sydney.

Bearing these issues in mind we should nevertheless aim to achieve some fundamentalsbased on principles and values for our assets.

3.2 Key Aims

That existing assets will be maintained to a satisfactory level, but that the basis of thedetermination of what constitutes a "satisfactory” standard will be stated for each assetcategory.

That the adoption of the recommended actions set in this Plan, should limit the risk of anyfuture unforeseen asset failures, and their associated liabilities.

That we should aim to progressively improve the contribution of assets to serviceoutcomes while reducing the impact of those assets on the environment.

That the projected outcomes, during the life of the Plan, and beyond, should improve ourcapacity to plan financially for the future of all assets.


4. PERFORMANCE MEASURES & REVIEW

4.1 Translating Vision to Action

Council’s adopted Vision requires us to manage our assets well and recognises oursubstantial role and responsibility as custodians of public assets.

In translating that Vision to action, staff have identified some fundamentals that have beenreflected within the Waverley Strategic Plan objectives:

1. Council should be a good steward of its assets.

• This means that we should aim responsibly to protect assets for current andfuture generations, which in turn implies defining minimum standards formaintenance.

2. We should ensure we have the right assets for the job – ones capable of delivering theservices and environmental outcomes we need at least cost and impact.

• This means we should aim to select and optimise assets for both their potentialeffectiveness and efficiency and to minimise their costs and impacts.

3. Our assets should provide for changing community needs.

• This means we should ensure that our assets are capable of supporting deliveryof services, maximising their contribution to defined social outcomes andmaintaining their relevance as demands change.

This leads us to the development of three strategic themes for performance measurement:

1. Achieving sound STEWARDSHIP2. OPTIMISATION of the portfolio for efficiency and effectiveness.3. Ensuring assets enhance service delivery and maintain their RELEVANCE to need

through time.

Performance measures and targets have been organised under these themes as shownbelow. These are high level measures to assist in monitoring overall performance against theSAMP’s objectives. More detailed measures are provided in Chapter 5 for individual groupsof assets.

4.2 Strategic Performance Measures

4.2.1 Measures for Achieving Sound Stewardship

Objective: To ensure the protection of assets for current and future generations.


Table 5 - Measures of Sound StewardshipKey Performance Measures Targetsi) Assets registered. (a) Details of assets established in a register.

(b) Register maintained on an ongoing basis.(c) Assets mapped in Council’s LIS.(d) LIS updated on an ongoing basis.(e) File records of past studies, works etc on

assets noted in asset register.ii) Standards prescribed for

condition of assets.(a) Draft minimum preferred standards

adopted in SAMP 1 (see proposed draftStandards for Asset Maintenance inSection 4.3 below).

(b) Draft standards revised in subsequentSAMPs.

iii) Asset audits / conditionsurveys completed.

(a) Asset safety audit schedules prepared andcompleted as scheduled in annual RiskPlan.

(b) Inspection maintenance regimesestablished for assets where relevant byDecember 2006.

(c) Condition surveys completed at prescribedfrequency (see 4.4 below).

iv) Planning cyclescompleted andimplemented.

(a) Related plans reviewed as specified (see4.2.2 (iv) below).

(b) SAMP updated annually from December2006 or at intervals as specified in futureSAMPs.

v) Investment maintainedat levels sufficient toensure targets for assetmaintenance can bemet.

(a) Ratio of investment in new works torenewals/maintenance maintained at 30:70across any five-year period.

vi) Maintenance plansdeveloped andimplemented.

(a) Developed annually.(b) Implemented as prescribed.

vii) Risk rating of assets. (a) Public Risk Reduction Plans implementedannually.

(b) No. of successful liability claims arisingfrom asset condition kept to less than 2004baseline year.

viii) Heritage protected. (a) Priority heritage protection activitiesidentified for heritage assets by June 2008.


4.2.2 Measures for Optimising the Portfolio

Objective: To ensure the portfolio is composed in an optimal balance tomaximise desired social and environmental outcomes at least costand impact.

Table 6 – Measures of Portfolio OptimisationKey Performance Measures Targetsi) Contribution of assets to

community outcomes.(a) Scoring system for assessing ongoing

contribution of assets in categories 5 – 9 toservice delivery established by June 2008.

(b) 80% of assets in categories 5 – 9 achieve anacceptable value score from 2009 onwards.

(c) Strategies developed to address deficienciesor substitute asset in annual revisions of theSAMP.

ii) Environmentalperformance of theassets.

(a) Energy consumption reduction programsmeet SOE targets.

(b) Water use programs meet SOE targets.(c) Greenhouse emissions meet SOE targets.(d) Stormwater discharge quality meets SOE

targets.(e) Strategies developed to address energy

inefficiencies or define substitute asset as perSOE targets.

iii) Financial performance ofthe assets.

(a) Define acceptable rates of return forcommercial assets, recognising constraints(legal, historical, other) by December 2006.

(b) Commercial assets achieve market rates ofreturn if no constraints apply.

(c) Other assets maintained within budget (forincome and expenditure).

(d) Under-performing assets identified andstrategies developed to address or substitute.

iv) Achievement of abalanced portfolio.

(a) Recommendations from the Investment andAccommodation Strategies factored intoSAMP by December 2006.

(b) Substitution strategies, if any, fed back tofuture investment plans in planning cycle.

(c) Strategies developed in revisions of theSAMP or Investment Strategy to exchangelower net performing assets for higher wherepossible.


4.2.3 Measures for Ensuring Assets Enhance Service Delivery

Objective: To continuously improve the contribution of assets to enhancedservice delivery and maintain the relevance of assets as servicedemands change.

Table 7 – Measures of Service and RelevanceKey Performance Measures Targetsi) Results from surveys of

customer satisfactionwith key assets.

(a) 60% of respondents in customer andcommunity satisfaction survey say thatassets are generally in a satisfactorycondition.

ii) Results from internaluser/operator surveys.

(a) Overall user/operator satisfaction score of80% or better.

iii) Percentage of acceptedrecommendations forasset improvementimplemented.

(a) 80% within adopted timeframes.

4.3 Standards for Asset Maintenance

Performance measures for achievement of objectives in stewardship above require draftstandards for the condition of assets to be adopted and revised through time. The followingstandards are suggested as draft preferred minimum standards at this time in accordancewith custodianship obligations.

4.3.1 Draft Preferred Minimum Standards for Assets

Table 8 – Draft Preferred Minimum Standards for AssetsAsset Draft Preferred Minimum Standard

1 Roads • All roads are sealed/crack sealed to minimise ingressof water into sub-grade.

• Sub-grade drainage is effective.• Surface inlet pits are cleaned on a regular basis.• Adequate surface inlet pits are installed.• Periodic flooding problems are reduced and/or

eliminated to the maximum possible extent.• Fit for purpose (eg. 50km speed limit on local roads).

2 Footpaths • Minimisation of trip hazards with particular attentionto the most highly trafficked areas, and public places.

• Damaged sections of the footpath system arerepaired in priority order based on the volume ofpedestrian traffic.

3 Kerbs & Gutters • Kerbs and gutters are structurally sound and pose noimpediment to effective transfer of stormwater to the



drainage system.4 Stormwater

Assets• Stormwater drains provide sufficient capacity to

ensure prevention of flooding of private property instorms with a frequency of less than 1 in 100 years.

• Stormwater drains are maintained to ensurestructural integrity in high impact areas.

• Stormwater pollution control devices are maintainedto perform at specification.

5 Buildings • Compliance with OH&S and BCA requirements withregular inspections being carried out as requiredunder the regulations.

• Are structurally sound.• No water ingress from roof, windows etc.

Guttering/downpipes/stormwater drainage systemoperating satisfactorily.

• Painting, internal - generally in good condition, notpeeling etc.

• Painting, external – generally in good condition,adequately protecting the façade, visuallyacceptable.

• Carpets/floor coverings - no holes in floor coveringpresenting trip hazards, etc.

• Air conditioning, and other plant and equipment,function in a satisfactory manner.


• Mall and Street pavements to meet standards forfootpaths, kerbs & gutters as set out above.

• Car park pavements to meet standards for roads asset out above.

• Car park signage and equipment – as for OtherInfrastructure below.


All assets are structurally sound. Pools are regularly maintained to minimise slip and

other hazards. Fences and bollards are stable, with bolts secure and

no missing parts. For footpaths / boardwalks - minimisation of trip

hazards with particular attention to the most highlytrafficked areas, and public places.

Steps and retaining walls are structurally sound.• Signage is stable and legible.


• Garden bed edgings are sound and containvegetation effectively.

• Turf is maintained with minimal presence of weed.• Trees are healthy.• Play equipment is compliant with Australian

Standards.• Park furniture is sound.



• Irrigation systems are functioning and don’t leak.• Lighting is structurally sound and operational.• Fences and bollards are stable, with bolts secure and

no missing parts.• For footpaths - minimisation of trip hazards with

particular attention to the most highly trafficked areas,and public places.

• Steps and retaining walls are structurally sound.• Signage is stable and legible.

9 Cemeteries • Road – As for roads above.• Footpaths, kerbs, gutters – as for above. Also

minimisation of trip hazards with particular attentionto the most highly trafficked areas, and public places.

• Drains – as for above.• Buildings – Standards as for buildings above.• Plantings and trees are healthy with weeds under

reasonable control to prevent increased infestation.• Garden bed edgings are sound and contain

vegetation effectively.• Memorial gardens and walls are structurally sound.• Trees are healthy.• Irrigation systems are functioning and don’t leak.• Lighting is structurally sound and operational.• Fences and bollards are stable, with bolts secure and

no missing parts.• Steps and retaining walls are structurally sound.• Signage is stable and legible.

OtherInfrastructure• bus shelters • Structurally sound.• fencing • Structurally sound.• retaining walls • Structurally sound.• stairs • Structurally sound with minimisation of trip hazards.• street lighting • Structurally sound and operational providing sufficient

lighting to meet standards.• street furniture • Structurally sound with minimisation of hazards.• signage • Stable and legible.

10


• Fully operational at all times.

4.3.2 Targets for Reaching Preferred Minimum Standards

Unless otherwise specified, targets for achievement of the standards are based oninitial categorisation of each asset group into five ratings of condition:


Condition Rating 1 Good conditionCondition Rating 2 Minor deteriorationCondition Rating 3 Medium deteriorationCondition Rating 4 Major deteriorationCondition Rating 5 Unserviceable

Chapter 5 shows the proportion of assets currently rated as condition 1, 2, 3, 4 and 5.These ratings are preliminary only and require substantial further technical investigationand consultation. This is to be undertaken in successive SAMPs. SAMP 1 charts anaction plan to collect sufficient asset knowledge to enable both confirmation of ratingsand asset condition improvement.

Generally, the targets aim to continuously reduce the proportion of assets incategories 3, 4 and 5 to the extent of available funding.

It is considered that, for purposes of calculating the cost of bringing these assets to asatisfactory condition, only assets with a condition rating of 3, 4 or 5 require work tobring them to a “satisfactory standard”. Successive plans will prioritise work to bedone on the assets rated in categories 3, 4 or 5, unless of course such assets areslated for disposal or demolition through other planning processes such as theInvestment Strategy or the Waverley Strategic Plan.

4.4 Surveying Asset Condition to Monitor Performance on Standards

In order to monitor and report whether assets are meeting minimum standards for theircondition and therefore plan effectively for asset maintenance and renewal, information aboutthe current condition of assets needs to be maintained on a regular basis. Condition surveystake various forms and are required at varying intervals depending on the asset. Thefollowing schedule proposes a minimum frequency for surveys and data collection.

Table 9 – Condition Survey Frequency by Asset CategoryAsset Condition Survey Frequency

1 Roads • Every 5 years in line with renewal and update ofPavement Management System.

2 Footpaths • Every 5 years in line with renewal and update ofPavement Management System.

• Visual inspections every 2 – 3 years.3 Kerbs & Gutters Every 5 years in line with renewal and update of

Pavement Management System.4 Stormwater Assets Every 10 years or as prescribed for sections selected

in risk analysis.5 Buildings • Every 5 years unless more frequent inspection

maintenance regime is adopted.6 Urban Open Spaces

& Malls• Not applicable. Daily maintenance inspection of major

malls to apply.


Table 9 – Condition Survey Frequency by Asset CategoryAsset Condition Survey Frequency


• Every 3 years for structural integrity for coastal and cliffwalk, sea walls, pools.

• Additionally, monthly for detection of faults onboardwalks.

• Additionally, every day for maintenance inspections ofpathways and fences, lookouts, coastal signage.

8 Parks & ReservesInfrastructure

• Every 5 years for infrastructure.• Additionally:

- all major parks inspected and maintained on a dailybasis,

- all other parks and reserves inspected andmaintained every 6 weeks.

- play equipment in major parks and reservesinspected daily.

- play equipment in other parks or reserves inspectedevery 4-6 weeks.

9 Cemeteries • Every 5-10 years for major infrastructure.• Additionally, every day for landscape condition, fencing.

Other Infrastructure• bus shelters • Every 5 years.• fencing • Every 5 years.• retaining walls • Every 10 years.• stairs • Every 10 years.• street lighting • Every 10 years if not replaced before.• street furniture • Every 10 years if not replaced before.• signage • Every 10 years if not replaced before.

10


• Rotated but not less than once a week for each parking meter.

4.5 Monitoring of Performance and Review of the Plan

Monitoring performance in achievement of the targets of this Plan will be undertaken throughCouncil’s usual process of translating key performance measures into annually revisedManagement Plans and Operational Plans. Supervision of this task and oversight ofperformance reporting will be undertaken by the Finance & Information Systems andServices Division, which will also monitor and report on achievement of outcomes of theCapital Works Plan and other related plans as prescribed from time to time.

4.5.1 Strategic Asset Management Planning Group – SAMPG

In addition to the above performance reporting, the SAMP itself will undergo regularreview led by the Asset Planning Manager with the Assistance of the Strategic AssetManagement Planning Group (SAMPG). This group comprises:

Director, Corporate & Technical Services - Bronwyn Kelly Director, Public Works & Services - Tony Reed


Manager, Asset Planning - Keith Gordon Divisional Manager, Technical Services - Dan Joannides Manager, Infrastructure - Robert Esdaile Divisional Manager, Businesses, Services & Property - Greg Worner Divisional Manager, Parks & Open Space Operations - Greg Holten Divisional Manager, Maintenance & Construction - Shaun Naidoo Divisional Manager, Finance & Information Systems &

Services (Chair)- Ian Mead

The SAMPG contains the bulk of Council's asset planning and managementexpertise. It will al

Documents

WAVERLEY COUNCIL STRATEGIC ASSET ......This plan is Waverley Council’s first Strategic Asset Management Plan (SAMP 1). It is a plan which operates in conjunction with a range of