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Bland Shire Council Asset Management Plan 2015
Table of ContentsSection 1 -lntroduction........What Council Provides.The Va lue of I nfrastructu re....................Council's Asset Management Goals.......Asset Management Flow Chart...Com munity Engagement and Asset Management..........Core and Advanced Asset Management ...
Core Asset M anagement Performa nce Ta rgets..........
Section 2 - Levels of Service...Current Levels of Service.........Desired Levels of Service.........Road Classification............Service Levels - Road Hierarchy.................
Section 3 - Future Demand..Demand Forecast.......Demand Management P1an.......
Changes in Techno1ogy..................New Assets for Declining Growth..
Section 4 -Lifecycle MaAcquisition...Assessment of Requirements..Asset ldentification and RecordAsset Creation, Acquisition and U
Selection Criteria.Maintenance ofAssetRoutine MaiRisk ManagementRenewalAsset Renewal P|an.........Disposal
Asset Rationalisation
Section 5 -Plan lmprovement a itoring...Financial Statements and Projections.........Lifecycle Costs......Funding Strategy........Valuation Forecasts.Key Assumptions Made in Financial Forecastslmprovements to Key AssumptionsAsset Management Systemlnformation Processes.....Performance Measures ..
Monitoring and Renewal Procedures............
References.
Schedules...Schedule L - Asset Management Po1icy...........
Schedule 2 - Asset Management Strategy........
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Plan
Schedule 3 - Current Position........
Bland Shire Council Asset Management Plan 2015
Section L - lntroduct¡on
What Council Provides
To support the community, Council maintains a network of physical infrastructure within the Bland Local
Government Area (LGA). This infrastructure provides a platform'.'fgr economic and social development,
strengthens the link between the community and the natural 9nv,ir..9..¡-tnent
and creates a sense of place for the
local community and its visitors. This infrastructure is integral t9'tl'íe Community's well-being and their quality of
ridges aá'd .çulverts, footpaths, kerb and
spaces, larídfills, Council businesses and
life
The infrastructure assets managed by Council incl
gutter, stormwater and sewer infrastructure, recreati
community buildings.
roads, b
A comprehensive list of these infrastructu re intain uncil's Asset Register and details of theindividual asset categories are held in the sup this anagement Plan
The Value of lnfrasAll assets in t ts na Plan are audited under Council's inspectionregrme, n ets in Council's asset registers. This process allocates a
condition rat nof asset. This condition rating scale ranges from excellent tovery poor. A co ts dered to be a satisfactory level of seruice or condition. The
condition of the ncil's ition registers and is related to the services levels agreed toas part ofthe lntegrate ng process
Using this data the Gross ment value of the existing network can be calculated and the cost ofreturning a ll infrastructure s beíng in unsatisfactory condition (poor and very poor) to a conditiondeemed satisfactory which is at the st an average condition, can be calculated
The table providing details of asset categories included in this Asset Management Plan is included in Schedule 3.
It includes the size of each network, the gross replacement value and written down value of each network, takenfrom Councils SpecialSchedule 7 from the previous financialyear.
!
st theeach ind
rating ofcaptured
ning and
Bland Shire Council Asset Ma nagement Plan 2015
Council's Asset Management Goals
Council's goal in managing infrastructure assets is to meet the required level of service for each asset category in
the most cost effective manner for present and future consumers. The key elements of Council's infrastructure
asset management are:
¡ taking a life cycle approach
o developing cost-effective management strategies for the long term
o providing a defined level of service and monitoring performance
o understanding and meeting the demands of growth through demand management and infrastructure
investment
managing risks associated with asset failures
sustainable use of physical resources and
continuous improvement in asset managem
The Asset Management Plan and supporting ons key elements
of asset management. The cornerstones of
a
a
a
o defining levels of service - specifies
asset type
o condition assessment the
a life cycle manage
servtces
o financial summary - nd
a
red to de the required services
uncil for each
sset
future assets to provide the requiredlwill
. asset th ll manage its assets and the tools it will use tothis
. mon - how the P lbe red to ensure it is meeting Council's objectives
. asset man ent improve t plan
The main goal of such istoe t assets acquired support and meet the strategic and annual
objectives of the organ that cost of providing the service to the community does not outweigh the
benefits. llMM 2006 Sec 1.1 flow chart showing the relationships of the Asset Management Plan tothe Asset Management Policy, nagement Strategy, and its support plans is as follows:
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Bland Shire Council Asset Management Plan 2015
Asset Management Flow Chart
..r:ìì¡':'^ ^.,t.
.:i,. ì) ì
ROADS, BRIDGES/
CULVERTS, FOOTPATHS,
CYCLE WAYS, CAR PARKS,
ANCILLARY ROAD
TRANSPORT
INFRASTRUCTURE
BUILDINGS, LAND
MANAGEMENT
PARKES AND GARDENS,
SPORTING FIELDS, WASTE
MANAGEMENT,
CEMETERIES, SWIMMING
POOLS, AIRPORT,
CORPORATE ASSET
MANAGEMENT PLAN
BUILDINGS AND LAND
MANAGEMENT
SEWER, STORMWATER
HARVESTING
zÈ
zo
É,l¡Jô-oÉ,
t¡J
o
CORPORÄTE ASSET
MANAGEIVIEhIT PLANTOWN AND VILLAGE
SERV¡CES
SEWER AND
STORMWATER
¡-IARVESTING
PTANSPROCEDURES
ASSET POLICY
REGISTERS
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Bland Shire Council Asset Ma nagement Plan 2015
Community Engagement and Asset ManagementThis introduction of asset management as a future works and corporate sustainability tool must include theactive engagement of and consultation with the community to explain the impact on all people that use theinfrastructure asset network, and to determine the community's service level expectations for infrastructureassets. For example, an acceptable level of service may relate to the frequency a park is mown, or the number oftrip hazards in a length of footpath that the community deems to be satisfactory for that particular asset.
Quality information from community members and stakeholders ensures the current and future infrastructureacross the Bland LGA is managed by Council to achieve the principles of equity, access, participation and right.This information from the community and stakeholders will be integrated with data, research and technical andfinancial information to create a comprehensive Asset Management Plan.
The community engagement was developed based on the simple principle of Council going into the communityto meet with people, the objectives are to:
o gather information from the community about the condition of assets that is satisfactory to them
current form is intended to meet the requirements for the resourcing strategy of the lntegrated Planning andReporting Bill (2009) of the Local Government Act and to provide Council with the decision making capacity tomanage its infrastructure in the best interests of the community, to provide assets that deliver the service levelexpectations of the community and to ensure the maximum utilisation of Councils resources and funding.Future revisions of this Asset Management Plan will move toward 'strategic' asset management using a 'bottomup' approach for gathering asset information for individual assets to support the optimisation of activities andprograms to meet agreed service levels.
Strategic Asset Management "employs predictive modelling, risk management and optimised decision makingtechniques to establish asset life cycle treatment options and related long term cash flow predictions." (llMM2006)
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Bland Shire Council Asset Ma nagement Plan 2015
Core Asset Management Performance TargetsThe following tables detail the key performance targets and measures for Council's core asset management.
A Details of assets established in a register
B Register maintained on an ongoing basis
c Assets mapped in Council's Geospatial lnformation System (Mapinfo)
D GIS updated on an ongoing basis
E File and annual repqrts of past studies, works
F
A Draft. minimum preferred standards
B Adopted in relevant section
A t inspection regimes developed and implemented
B ,Cgndition surveys completed at prescribed frequency
A Related sections reviewed as specified
B Asset Management Plan updated annually
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Bland Shire Council Asset Mana gement Plan 2015
Current Levels of Service"An objective of Asset Management Planning is to match the level of service provided by the asset with theexpectations of the customer. Asset Management Planning will enable the relationship between level of serviceand cost of seruice (the price/quality relationship) to be determined. This relationship can then be evaluated inconsultation with customers to determine the optimum level of service that the community is prepared to payfor." (Page 3.6, llMM (2006))
Council has characterised service levels in two definitions aligned'w ith the llMM. These two levels of service are a
community level of service and a technical level
Community Levels of Service relate to how the m the service of eachasset in terms of safety, quality, quantity, reliabi
Supporting the community service levels developed to ensurethat the minimum community levels of et. The levels of service may relate tocost/efficiency and legislative com plia nce.
Council's Assets Team con a'categories covered by this The 'satisfaprojections of asset renewal' ing reproviding estimates he
asset is'satisfa
red level of service for all assetthe d seruice level allows Council to developfuture in support of the Long Term Financial Plan,
to be remediated or renewed so each individualch
r CouAll assets inc in this Plan d inspection regime, rated against the asset referencesheet and captu n Council's e nrc ing system. This process allocates a condition rati ng to eachindividual asset, or of asset. nd ng scale is from excellent to very poor. ln 2010 a conditionrating of average is co tobea ctory
This can be clearly demo low graph of the kerb and gutter network in the Bland LGA, whichindicates the quantity of a ch condition. Council's Asset Team are moving towards quantify each
to remediate all assets to a 'satisfactory' or above condition, and providecondition and also the funding req u redthe financial data necessary to inform the Long Term Financial Plan.
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Section 2 - Levels of Service
Bland Shire Council Asset Ma nagement Plan 2015
Kerb and Gutter Condition
1. Excellent2. Good
5.Very Poor
80
60
40
20
0
Quality Component deterioration
Quantity Area of parks per resident
Availability Number of users versus need
Safety Pavement width and condition
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Bland Shire Council Asset Management Plan 2015
Desired Levels of Service
Desired levels of service have been developed from the Customer Satisfaction Survey (2005, 20IIl, lntegrated
Planning and Reporting Community Consultation process (2011,-2012l' and on-going residents' feedback toCouncillors and staff through service requests and correspondence.
It was necessary that Council reduced service levels in some areas, to ensure it provides a cost effective, reliable
and safe asset based on future budget forecasts and what service levels the community were prepared to pay
for,
For example Transport infrastructure, the service level reduction included reduced design speeds for a number ofClass 5 and 6 unsealed roads as shown in the photos.
Well formed andwell &ained
Watermay goover
Full gravelGiaveimay be
thin oi patchyoover
All weather access
Council traditionally ll approa their a particularly roads. The new hierarchy
as shown in Table L below co asset including, user rates, type of users, community
benefit, whole of li prov and to the community
Service leve b the ado d hierarchy as shown in Table 2 belowd
Council has also
initiatives includ
our s part of the Asset Management Strategy. A number of
ing tng p ,adra program in summer months and the purchase of a Kirpya
crusher will assist Cou rovide quality for the dollars spent.
8
ne size
the
Bland Shire Council Asset Ma nagement Plan 2015
Table 1 - Road Classification
Road Classification Service Function Description Class
State Highway (SH) Classified main road fully funded and maintained by RTA
Regional Roads (MR) Classified main road and roads predominantly funded by RTA1
Arterial Route(AR) > 150vpa Roads distributing traffic directly between towns and villages
CBD/Commercial AccessStreet (CA)
A CBD/Commercial Access Street is a street that providesaccess to properties and businesses within the commercialcentres of the towns and surrounding villages including Councilowned car parks
Industrial Access Street(IA)
An industrial access street is a street that provides directaccess to industrial properties or streets that when connectedprovide a direct link to arterial'routes for heavy transportvehicles, :
2
Urban Street (US)access to adjoin
street is an urban street.that provides direct primarying residential properties,
Internal Road (IR)An internal road is a road located within a Bland Shire Councilowned facility., such as a Sewer Treatment Plant, WasteDisþosal Centre or Sports Facility.
Principal Rural Road(PR)> 100
A principal rural road is a road that provides a connectionbetween ru ra l:'vil lages/townsh i ps,
3
Rural Collector Road(RC)>s0
A rural collector road is a road that provides a connectionbetween rural access roads distributing traffic onto the arterialroad,network including school bus routes
4
Access Lane (AL)An Access Lane provides secondary access to adjoiningresidential properties.
Rural Access Road (RA)A Rural Access Road is a road that provides direct access toadjoining rural and/or rural residential properties.
5
Tracks/Roads not listed formaintenance (T) Unmaintained Council Roads, Crown or private roads
6
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Bland Shire Council Asset Management Plan 2015
6
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Rural
60
1
4
no
no
yes
only atdangerouslocations
B-11
no
no
no
2m
4.6m
yes
no
12 months
6 months
2 weeks
12 months
5
NA
NA
NA
NA
NA
NA
NA
Urban
50
3 months
6months
2 weeks
9 months
4
80
2
3
no
no
yes
only atculverts &
curves6-8
yes
yes
4.6
yes
if required
4-6
tl.
. yes
.,:.'. '.4m'.¡ :'
4.6
yes
if required
1 month ,.
3 mol'iths
1 week
6 months
Rural
100
Sealed/Gravel
2
3
no
no
yes
over crest
...: I .i,Ves soaced 250m
.i.. . i
't .t ì
3
Urban
50
,.t,.
no.. :, r i'
... :
,N4,. '
NA.
NA
NA
:..r,:'100'ì:: i :
Rural
Seàledì .. ..
2 lane
,3ì.:..ì: '
ves.. ,. I
': .OV€f crests':. ,
',' yes spaced25.0m
yes
yes
4m
4.6m
yes
if required
1 week
3months
1 week
3 months
. .i .:. : ., nO .r..r ..iì.'
ìì..: :. .¡tì:r!
2
Urban
50
Sealed ,'.t, .t .
2 Lane
yes
yes
no
no ^ i'i.: :..;t.:,
NA
NA
NA
NA
NA
NA
NA
1 week
yes spaced150m
4
yes
yes
yes
6m
5.5m
yes
if required
2 days
1 month
24 hours
1 month
1
100
Sealed
2 Lane
3.5
yesI i.ii
yes
yes '.
yes
Signs-Crests
Signs-Curves
Vegetation Cleara nce-Shou lder
Vegetation Cleara nce-Heights
Shoulder Grass Sprayed Annually
Roadside Slashing
Pothole Patching Response Time
Guideposts Defect- Response time
Warning Sign Defect Response Time
Vegetation Defect-Response T¡ me
Service Levels-Road Hierarchy
Design Speed KPH
Surface
Travel lanes
Lane Width (Metres)
1m Sealed Shoulder
500mm Sealed Shoulder
1m Gravel Shoulder
Line Marking
Guideposts
Roughness Counts/i ntervention
Signs-Speed Advisory
Table 2- SERVICE LEVELS
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Bland Shire Council Asset Management Plan 2015
Demand Forecast
Factors affecting demand include population change, changes in demographics, seasonal factors, vehicleownership, consumer preferences and expectations, economicawareness for example.
cultural practices and environmental
Demand for infrastructure is generated predominantly th
. an increased utilisation of existing i bro
O the requirement for new infrastructure the
The demand created by these two circu requires s to consider the ramifications to existinginfrastructure networks and the ability of th to cope the increased infrastructure. This analysisapplies in all cases ranging from new subd rncre
or
ment
on an existing sewer network and
networks potentially creatíng then and demand.
treatment plant, to that sameneed to upgrade that exist
Demand
Demand forupgrading ofinclude non-asset
The planning for infrastinfrastructure and its abilinfrastructure.
on rnc d
to co ¡l
n ha ination of managing and maintaining existing assets,
ing to meet this demand. Demand management practices
n managing failures.
nd is a constant process of review and assessment of existingwith increasing demand, versus the need to augment with new
Demand on infrastructure is created through increased utilisation generated from a growing population and
changing patterns of behaviour, ranging from social demographics to transport options and solutions. Often thisincreasing demand will stem from urban or residential growth increasing the utilisation of a range of communityinfrastructure
Section 3 - Future Demand
h
traffic
due
rvices willassets and
ns, tnsuflng
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Bland Shire Council Asset Management Plan 2015
Council develops strategies for demand management on single or groups of affected assets and continues tomanage the relationship between existing and new asset requirements in the context of asset management. Thisdemand management also includes asset rationalisation as discussed in this plan.
This demand forecasting and analysis is based on Australian Bureau of Statistics 2006 data and the NSW
Department of Planning projections. The outcomes of these plans form elements of future capital worksprograms captured in Council's Long Term Financial Plan,
Changes in Technol
Technology ch st to ivery of services covered by this Plan at presenttime. Ch co at I review of the Asset Management Plan.
New Assets for h
Population forecast indicate I be very few new assets required to meet growth as this data indicatesthat Council has a negative 75%.
The demographics indicate Bland Shire has an ageing population. ln the future capital items required will need tobe funded from the Council's general income. With decreasing revenue streams from a declining population andincreasing demands from an ageing population upgrading or renewal of existing infrastructure, will need to bereviewed with this mind.
e
L996 6,7OO 1,000 'Eéõline in demand
2007 6,700 1,100 lncrèäse. demand age services
2006 6,300 1,100 Further e in demand
2071 6,100 1,100 Further decliiie in demand
2016 5,800 1,100 declineF nd
202L 5,600 nd with increasedre on age seruice facilities
decl tne tn
2026 5,400 decline in demand
tntn ob
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Bland Shire Council Asset Management Plan 2015
Section 4- Lifecycle ManagementLife cycle management details how Council plans to manage and operate the asset category at the agreed level ofservice while minimising life cycle costs throughout the useful life of the asset.
This section identifies and de the the asset management life cycle of local government
assets, name nce, renewal , and disposal
AcquisitiThere are six
L planning
2. assessment of requi
3. feasibility study
4. acquire (procure or
ro ase of the cycle. They are:
construct)
5. asset identification, recognition and recording and
6. recording and accounting
These elements are not carried out in an entirely sequential manner; some elements overlap and the planning
element should be evident in all other elements.
Acq uisition
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Bland Shire Council Asset Management Plan 2015
Congruence of the asset management process with all stages of planning is vitalto ensure the process adds value
to an organisation. Ad hoc asset management processes are unlikely to result in optimum asset management, forexample to have assets acquired, maintained or disposed of in accordance with the organisation's goals and
objectives. lt can have serious consequences for Council, particularly in longer-term sustainability.Sound and effective use of planning in all phases of the asset management cycle will assist Councilin:
¡ setting levels for service deliveryo assessing the functional adequacy of existing assetso identifying surplus or under-performing assetso assessing the assets required for new policy initiativeso evaluating options for asset provision (for example, private ver3us public investment)o evaluating options for funding asset acquisitiono ensuring funds are available when requiredo ensuring assets are maintained and disposed of in an optimum manner ando evaluating asset management performance, with lhelgoa
.. ..t'. .
The development of an Asset Management Plan as part,óii Counciof delivering value-added asset management. The Plan m
integrated with Council's strategic and othe a nning docu
Assessment of Requirements
Assessing Council's requi rsam nd
I of continuó.us improvement
l's planning proiesses provides the best means
mplete asiet'Ínanagement cycle and bet.a
r
future services and organiAppropriate and effective
It involves making judgements onthat may change at the next election
,ls by the longer-term Financial Plan requirements thatly apply strategic thinking in makingmust transcend the impacts of e
predictions to mi ndu
Questions th be satisfa a
¡ What a s are
d
nrng,
nd the
are
p
r delivery?
o What cha nbe servt and over the planning time frame?
o What is the holdings?
o What are the short- uirements?
o What are the Iong-term requirements?
o What existing assets meet the requirements?
o What further assets are required?
o Does Council need to acquire further assets or can the service be met by a service provider?
o What assets are no longer viable to retain?
¡ What alternatives are available for asset provision (public or private)?
r What alternatives are available for asset acquisition (purchase or construct)?
o What new skills will be needed to operate new assets?
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Bland Shire Council Asset Management Plan 2015
Requirements need to be regularly reviewed, particularly as circumstances change. Such reviews should be part
of the ongoing planning processes of Council. Once requirements have been defined and the options costed, a
decision on the best option can be made. This decision will be the beginning of further planning - the plan to
acquire the asset.
A purchasing/design and/or construction specification and a budget for the asset should be developed as well as,
a time frame for its acquisition and obtaining the necessary funding. A realistic budget, cash flow and timetable
must be set as insufficient funds or project management might seriously jeopardise the asset acquisition process.
This must include whole of life costing for the new asset including acquisition, maintenance, renewal and
disposal.
The key to adding value to the organisation in the asset acquisition ,element is project management. Once the
broad asset requirements are known, the process should be managed through Council's Project Management
Framework utilising a project team that has the necessary skills and experience to ensure all aspects of the
recognise that engineers and asset managers utilise the same information. lt is important, therefore, that the
professions work together to establish accepted methodologies and approaches. The asset management policies
and processes developed by Councils Asset Management Team are documented in the supporting Sections ofthis Plan to assist consistent decision making and reporting.
On acquisition, an asset is usually valued at its purchase price. The purchase price includes any costs necessary to
place the asset into service. lt is important that a value is placed on all assets, as the value and its diminution over
time, provide information for decisions made about the contribution, or otherwise, by assets to an organisation's
goals and objectives from an economic perspective.
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Bland Shire Council Asset Management Plan 2015
Most public-sector assets, particularly long-lived assets such as buildings, roads and footpaths require
maintenance over their lives, There are basically five matters for asset maintenance consideration. They are:
t. planned maintenance
2. unplannedmaintenance
3. maintenance of asset records
4. revaluation and
5. reassessment
Planning is an important part of the maintenance phase. The time.fráme over which some assets are to be
maintained adds a degree of complexity to the planning involved. The development of planned maintenance
schedules should involve a multidisciplinary approach. lt is critiCal that the planning is undertaken as theresources required to maintain the assets in optimum condition for the leagt cost will require the evaluation of a
range of factors for different assets.
The selection of appropriate maintenanceprolonging the service effectiveness of assets
but unplanned maintenance consumes resou
to be available to quickly restore assets
contingency plans (business continuity plan n
failure of major infrastructure assets has t severely-::.fli5rupt the provision of services to thecommunity
Asset Creation, Ac
New works are
upgr Plan
ca
to the
not previously exist, or works which upgrade ormay result from growth, social or environmentalfrom land development however it would appear
acquire any significant assets in the foreseeable future.
assets are identified from various sources such as the Communityand other planning documents and proposals identified by
partnerships with other organisations. Candidate proposals are inspected to verify need and to develop a
preliminary renewal estimate. Verified proposals are ranked by priority and available funds and scheduled in
future works programmes. New assets and services are funded from Council's capital works program and grants
where available.
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Bland Shire Council Asset Management Plan 2015
Maintenance of Asset Records
ln addition to the financial and technical information requirements for statutory reporting and to enable effective
management, asset records must be kept. Maintenance of asset records adds value to the asset management
process. Appropriate asset records that record relevant acquisition, operation maintenance, renewal and
disposal information can be invaluable sources of information throughout the asset management process. The
benefits of comprehensive asset records include:
o a record for each asset containing information such as condition, fair value, location, materials and so
on
recording maintenance performed ensures that it is not doile twice and enables a review to confirm
that it has been carried out, the expenditure of that mAintenance and the subsequent change to thea
asset value
r00%
60%
s0%
40%
30%
20%
to%
o%
90%
Is.Very Poor
I4.Poor
l3.Average
r 2.Good
l l.Excellent
,".:.n*
The condition distribution of Council's assets as at L March 20L5 is shown in the graph above
Condition is measured using a 1- 5 rating system.
77
Bland Shire Council Asset Management Plan 2015
Routine Maintenance Plan
Routine maintenance is the regular on-going work that is necessary to keep assets operating, including instanceswhere portions of the asset fail and need immediate repair to make the asset operational again. Maintenanceincludes reactive, planned and cyclic maintenance work activities.
Reactive maintenance is unplanned repair work carried out in response to customer or service requests and
management/supervisory directions. Assessment and prioritisation of reactive maintenance is undertaken by
Council staff using experience and judgement.
Planned maintenance is repair work identified and recorded through Asset Edge Reflect programme. Reflectactivities include inspection, assessing the condition against failure/breakdown experience, prioritising,scheduling, actioning the work and reporting what was done to develop a maintenance history and improvemaintenance and service delivery performance.
2 llMM 2006, Sectio
Cyclic maintenance assets that is
undertaken on a re generally fallsbelow the capital th
Maintenan ce expen e
7,000,000
6,ooo,ooo
5,000,000
4,ooo,ooo
3,ooo,ooo
2,000,000
1,000,000
0
r Req.Annual Mtce
I Cur. Annual Mtce
Roads Buildings Sewer Stormwater OtherStru ctu res
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Bland Shire Council Asset Management Plan 2015
Generally maintenance expenditure levels are considered to be inadequate to meet required service levels
The supporting Sections of this Asset Management Plan contain information relating to the necessary funding foreach specific asset category and the subsequent growth to that funding with the corresponding development ofassets to that category. Future revision of this infrastructure Asset Management Plan will include linking requiredmaintenance expenditures with required service levels.
Risk ManagementCategories of Risk
Council has an adopted risk management framework which identifies riskin three major categories, which are as
follows
1. Opportunity-Based Risk
There are two main aspects of opportuniassociated with taking an opportunity.
not taking an opportunity and thosens
Opportunity-based risk may or may not be ically nt, it is often financial, it can have a
positive or negative outcome, a can have b rt rm outcomes, lt can be managed by
assessing the upside and d risk. Thê-.,ilse of is will make the nature of the risks
clea rer.
An example of an opportun d uncil acquisition of new financial software. Should thesoftware meet en to creased, along with staff morale. However, shouldthe software r una Council's expectations, then both productivity and
staff morale ll and sta willbe
2. Uncerta
Uncertainty-based risk is d with unknown and unexpected events. Uncertainty-based risks are;
unknown or extremely d
a
to tify, catastrophic or disastrous in nature, associated with negative
outcomes, and not possible to influence.
Examples of uncertainty-based risks for Council include: physical damage or damage to buildings by fire or flood;loss of a vital supplier; and influenza pandemics.
19
Bland Shire Council Asset Management Plan 2015
skRofAreas
Counci
nct
L.
Cou
3. Hazard-Based Risk
Hazard-based risk is the risk associated with a source of potential harm or a situation with the potential to causeharm. This is the most common risk associated with Council, as addressed by occupational health and safetyprograms. Hazard-based risks include:
r physical hazards - including noise, temperature or other environmental factors
o chemical hazards - including storage and/or use of flammable, poisonous, toxic or carcinogenicchemicals
o biological hazards - including viruses, bacteria, fungi and other hazardous organisms
. ergonomic hazards - including poor workspace design, layout or activity and equipment usage
. psychological hazards - that may result in physical or psychological harm, including bullying, sexualdiscrimination, workload or mismatch of job specification to employee capability Council generallyaddresses hazard-based risks through its OH&S prograrn. :
human resource ma
o knowledge management luding lnformation Technology)
Strategic risk is managed through Council's annual Risk Management Plan due to the potential affect a failure inthis area can have on Council's operations.
a
a
a
a
a
a
a
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Bland Shire Council Asset Management Plan 2015
2. Operational Risk
These are risks that relate to the day-to-day operations of Council. They result from inadequate or failed internalprocesses, people and systems. The two main, interdependent components are operational integrity and servicedelivery.
Operational risk arises from inadequate internal controls, inadequate or no documentation, poor planning andimplementation, or inadequate supervision.
Council has identified the following operational risk areas or categories:
. contract administration and procurement
o Occupational Health and Safety management
. project management and delivery
public liability management
human resource management
fraud and corruption
business continuity manageme
An assessment of risks associated with serviCouncil in both categori es of risk. riskevent occurring, the co
assets has identified critical risks top dible risks, the likelihood of the risk
evaluates the risk and develops
urflng mediate corrective action and 'Significant' - requiringisk M ment Framework (2010) are summarised in the
a
a
a
a
the evea risk treatment plan for ptable risks.
Critical risks, being thoseprioritised corrective action i
ificant Moderate Major Catastrophic
Almost Certain nt :Significant
tikely fsignificant Significant
Possible Significant
Unlikely Significant
Rare Significa nt Significant
Risk Level
2t
Bland Shire Council Asset Management Plan 2015
Renewal
Renewal is the periodic replacement of assets or asset components. lt is the renewal of existing assets thatreturns the service potential or the life of the asset to that which it had originally. Work over and above restoringan asset to original capacity is upgrade/expansion or new works expenditure.
ln the asset operation and maintenance phase, there will have been assessment of the asset on a continuousbasis. This history of assessment provides valuable information as the asset nears the end of its useful life, andduring its useful life at times when major expenditures are approaching. Council, armed with such informationmay choose to seek alternate asset options to support services rather than to continue with more of the same as
used in the past.
The usage of the asset, the regularity of its maintenance, the extent of unplanned maintenance and anyassociated downtime, can help to determine the retirement or disposal date of the asset. The current value ofthe asset is also a factor that should be considered. lts value may be such that an earlier or later disposal date is
indicated. Two other factors that must be carefullytechnical and commercial obsolescence aspects of an itionln developing an asset renewal profile, there are a nu mber of concepts to consider:
. asset age - the elapsed time since asset
tn assessini the condition of an asset are the
nd brdught into service
. current replacement cost as new -full-cost attribution basis. ln the ca
design and co nstruction and the ind nstru
et. This cost is calculated on a
assets, the cost will include the cost ofuisition
a useful life of theprofile
used to develop the asset renewal
cost as new, to developremaining useful life in
strategies to deal with
ning for the transfer of
here
22
Bland Shire Council Asset Management Plan 2015
Asset Renewal Plan
Assets requiring renewal are identified from condition data obtained from the asset register. Candidate proposals
are inspected to verify accuracy of condition and to develop a preliminary renewal estimate based on adopted
unit rates. Assets identified for renewal are ranked by priority and available funds and scheduled in future worksprograms.
Renewal will be undertaken using 'low-cost' renewal methods where practical. The aim of 'low-cost' renewals is
to restore the service potentialorfuture economic benefits of the asset by renewing the asset at a cost less than
replacement cost where possible. Renewals are to be funded from Council's capital works program and grants
where available.
Disposal
Disposal, retirement or rationalisation of assets ge
needs. Assessment of the need for assets is a part ofmeeting the needs and expectations of t mmunity. C
options for meeting the community se
required to confirm community acceptance
will occur due to chaírges in community demands orprocess that determines whether it is
status quo añd' investigating innovativeis all pa rt rocess. Extensive community consultation is
ion and must be taken within theAs with acquisition decisions,integrated planning framfinancial and budgetarydemolition should be consi
The
consideredgrowth of Co asset base,
community
ofana requiil that a
overawhen
ural ritage
ivery needs, corporate objectives,
bjectives. Disposal options including
ion plan.ints a all o
ng the acquisitthe o
Currently there is no
funding to maintain th
n, whilst tng all the services required of Council.
relati ip between the growth of Council's asset base and the subsequent
llwill be addressed by:e ts
the life cycle applies to all assets, some may not be
ere must be a defined relationship between thecapacity to rñaintain the service delivery of that asset base to meet
funds to these assetso improving the distrib
¡ funding asset renewal and maintenance based on condition
¡ rationalising assets as required
o managing assets to meet community service expectations
23
Bland Shire Council Asset Management Plan 2015
Asset RationalisationThe reassessment of an asset's usefulness to Council should be made on a regular basis, on two criteria. They are
t. the need for the asset. Does the organisation have a continuing need for the asset? ls the asset stillproviding a required service to the community? ls that service provision what the customers expect? ls
there a more cost-effective way to provide that service?
2. the useful life of the asset. At acquisition, the asset will have been designed for a useful life, dependent
on the factors outlined in the section on useful life. Whe rs change, the useful life of the asset
should be reassessed. Usage of the asset may have or less than planned. The condition ofin its life, Any change in the expectedthe asset may be better or worse than expected
useful life of an asset will have accounting impl the ofthe asset may need to be adjusted.
NB: The ultimate aim is that through Asset Rational nd other means p is narrowed between the 10
year Asset Management Forecast Plans and the 10 ancial Management ability forecasts
24
Bland Shire Council Asset Management Plan 2015
Section 5 - Plan lmprovement and Monitoring
This section contains the financial requirements resulting from all the information presented in the previous
sections of this infrastructure Asset Management Plan. The financial projections will be improved as further
information becomes available on desired levels of service and current and projected future asset performance.
Financial Statemen rojections
lowing graph jected operating caPitalThe financial projections are shown in
expenditure (renewal and upgrade/expansio that all in 2010111 dollar values
Estimated pgrade/New Assets
2011t12 12J13 13t14 14115 15/16 16117 17118 18/19
Year
25
Bland Shire Council Asset Management Plan 2015
Life Cycle Costs
The life cycle cost of an asset is defined as 'the total cost of that asset throughout its useful life including
planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs." This value
must be used in the development of estimates for the delivery of new assets for Council. The introduction of life
cycle costing will dramatícally change the forecast capital expenditure listed above as capital costs. Capital costs
will no longer reflect just'build' cost but will include whole of life.
Whole of life costs, on the other hand, are defined as the average annual cost required to sustain the agreed
service levels. Whole of life costs include maintenance and asset consumption (deprecíation) expense.
This can be compared to 'life cycle expenditure' to give an indicator of sustainability in service provision. Life
cycle expenditure includes maintenance plus capital renewal expenditure. Life cycle expenditures will vary
depending on the timing of asset renewals
A gap between life cycle costs and life cycle expen re
paying their share of assets they consume. The toidentify levels of service that the community nee toprovide the services. Future revisions of th Plan will inclu s ratio.
Funding StrategyProjected expenditu re id
developer contributionsterm financial plan.
ncial P nrsnt fund e
as
un
capital budgets and include
n the Council's L0 year long
very few additional assets added to the asset base
ries ( ted replacement cost or fair value) will vary depending on
the rates of addition o ts, di I of old assets and consumption and renewal of existing assets.
The entire asset base is requ lued annually under the lntegrated Planning and Reporting Bill (2009)
This requires each asset condition to be always accurate as the condition is directly proportional to the annual
depreciation percentage applied to the renewal cost of the asset.
This process is applied to each asset and subsequently each asset class, determining the renewed value of the
asset class, the annual depreciation and the cumulative depreciation of the asset in total.
26
Bland Shire Council Asset Management Plan 2015
Key Assumpt¡ons Made in Financial ForecastsThis section details the key financial assumptions made in presenting the information contained in this
infrastructure Asset Management Plan and in preparing forecasts of required operating and capital expenditure
and asset values, depreciation expense and carrying amount estimates. lt is presented to enable readers to gain
an understanding of the levels of confidence in the data behind the financial forecasts.
Key financial assumptions made in this Asset Management Plan are:
1. Unit Rates
Council has quantified unit rates for all assets for the construction or purchase cost of each asset. ln some cases
these unit rates are simply the purchase price of an asset for example a pit lid, or as complex as the inclusion of a
variety of materials, plant and labour rates combined to create a single unit rate for an asset.
complex na the develo of rates can leád to the over or under stating of a particular element of
a particular m nce event. m holing in sealed roads is quantified at a rate of $881.34m3. This
figure is extrapol rate material divided by the potential depth and area of average
pot holes to create a
27
Bland Shire Council Asset Management Plan 2015
3. Depreciation Methodology
Council adopted a depreciation methodology used to develop the fair value of its assets as requiredby the Division of Local Government.
The depreciation methodology adopted is a Straight Line Depreciation Method. The methodologycan be diagrammatically represented as follows.
Flat Line Depreciation9,000
8,000
7,0o0
6,000
5,000
of.ËîtcoCLx]¡J
l!?-CLlE
L.,
4,
3,
000
000 -þsp¡g6i
ated Amount
2,000
1,000
0
r2 4 5-
Essentially, lifecyclthe condition
five distinct phases. These phases are categorised by
predicting the eventual total life of an asset there is onlynal straight-line approach, A miscalculation ol 5o/o in total life
annual calculation of depreciation
Due to the significantsmall room for error usiwill drive a 5% (material) e
28
Bland Shire Council Asset Management Plan 2015
lmprovements to Key AssumptionsAccuracy of future financial forecasts may be improved in future revisions of this infrastructure Asset
Management Plan by the following actions.
1. lmproving Unit Rate Accuracy
As described above Council has quantified unit rates for all assets for the construction or purchase cost of each
asset. Whilst the complexity of the development of these unit rates may allow an element of error to be included
in the original rate, the continual review of these rates, based on financial data captured against each asset, will
see a reduction of error in the unit rates. The Asset Management 'system', by capturing the necessary data to
supply the legislated financial reporting requirement, will itself redefine the unit rates as more and more data is
captured to refine the values.
2. lmproving Maintenance Rate
As with the unit rate above, there is the p
complex nature of the development of these
a particular maintenance event.
A periodic review of these figures utilisinrates
3. lmproving
As the depreciationasset condition and
the organisatio
Asset Ma entCouncilwillmainta
This data will be linke
exported from that form
r to existthe ove o
in
rutheSé maintenance unit rates as thender stating of a particular element of
nc d against each asset will refine these unit
by the asset condition, a continual 'live' update ofity's asset will improve the financial information of
. .. l'.1 .
in theinew corporate system Tech 1 "One Council" software program
uncils al lnformation System (Mapinfo),This data is readily available to be
a vafl formats to suit a variety of needs. These needs include:
o Works programming
o Current Asset Fair Value data
o Expenditureforecasting
o Condition summary
o Extrapolation/manipulation of data and
o Asset location and details
The responsibility for Asset Management is documented in Council's lnfrastructure Asset Management Policy
(EDRMS Doc.lD 33282t1
29
Bland Shire Council Asset Management Plan 2015
lnformation Processes
The key
a
a
a
a
a
a
a
The key
information sources into this infrastructure Asset Management Plan are:
the asset registerdata on size, age, value, remaining life of the network
the unit rates for categories of work/material
the adopted service levels
depreciation rates etc
projections of various factors affecting future demand for services
correlations between maintenance and renewal, including çonsumption models
data on new assets acquired by Council
information sources from this infrastructure Asset,Management Plan are:
The
and
PeThe
tained in
I budget
nt Plan are
o the degree to 1-5 etailed works programs, budgets, business plans and organisational
structures take i cco e 'global' works program trends provided by the infrastructure Asset
Management Plan
Monitoring and Renewal ProceduresThis infrastructure Asset Management Plan will be reviewed during annual budget preparation and amended torecognise any changes in service levels and/or resources available to provide those seruices as a result of thebudget decision process.
The Plan is updated annually and this first revision being completed in March 20L4to fit ¡nto the budget reviewprocess, the revision will be due in March 2015. Future versions of this Plan will identify those sections of thePlan that have been improved.
30
Bland Shire Council Asset Management Plan 2015
References
lnternational lnfrastructure Management Manual', lnstitute of Public Works Engineering Australia,
Sydney, IPWEA, 2006
lnstitute of Public Works Engineering Website, www.ipwea'org.au
a Bland Shire Council, 'Community Strategic Pla
Bland Shire'Risk Management Policy'
a
a
a Bland Shire Council, 'Long Term Fi an'
a Bland Shire Council,'Asset Manageme
a Bland Shire Coun
a
nte nfra Assets'
. SCHEDULE 1-
. SCHEDULE2-¡ SCHEDULE 3-
Management Policy
Management Strategy
Current PositionAsset
SCHEDULES
31
---
---#
Bland Shire Council Asset Management Plan 2015
SCHEDULE t - Asset Management Policy
POLICY ADOPTED: 27 t{lAY 2011
corporate
for all ofc Plan
Statement of Commitment
Bland Shire Council recognises that care and management of itS iñfrastructure assets is an essentialelement in achieving the organisations stated mission and to meet the present and future needs of theshire community
Aims and Objectives
Aims
To provide the overall framework to gui
infrastructure assets in alegislation;
Local Government
Roads Act 1993
by
CommunityPrepare an
m of Bland Shire Council'splying with the followingand
and ) Act
o Esta objectives for asset management based on servicedeliveryAccount ng assets and any new asset solutions proposed in Councilsa
a
a Provide resources to re asset data and integrate asset information as a core component of
Delivery ProgramStrategy and relevant Asset Management Plans to suppott the
Community Strateg d Delivery Program
Councils corporate database in order to provide support for the implementation of lntegratedPlanning and Reporting legislation
. To establish procedures that provide a simple, systematic and readily usable risk managementapproach to the maintenance of public roads and infrastructure
o Maximising value for money by adoption of life - cycle costing, combined with disciplinedperformance management and review of asset utilisation and service levels
. Assigning accountability and responsibility for service delivery together with asset management
. Provide relevant information for the annual financial statements in line with the LocalGovernment Code of Accounting Practice and Financial Reporting
. Promoting sustainability to plan for the needs of future generations
33
Bland Shire Council Asset Management Plan 2015
ObjectivesTo ensure that the importance of effectively and efficiently managing Council's assets for present and
future generations is clearly recognised by Council and the community, in accordance with the Council's
Charter under Section I of the Local Government Act 1993 (as amended).
To reinforce Councils commitment to ensuring a sustainable future, whilst complying with the Local
Government Amendment (Planning and Reporting) Act 2009.
To provide a systematic method of identification, evaluation and prioritisation of maintenance works on
Councils road network that will assist Council's decision-making process in its annual budget
formulation.
OverviewAsset management is a systematic process to guide the planning, acquisition, operation andmaintenance, renewal and disposal of assets. lts objective is'to maximise asset service deliverypotential and manage related risks and costs over the entire life of the,asset.
The importance of infrastructure assetsbudgets means that asset managementPlan and Delivery program of Council
lnfrastructure assets arc fundame
hire community and their significance for CouncilI component to supporl the Community Strategic
rvice delivery and planning andand management oversight. This
ement essential for effective strategic asset
that planning mustaddress both short
dependent on their timing the impactnd capital resources.
planning must be integrated with Council's overall
responsibility for them requires strongoversight is crucial to achieving themanagement
The long lived naturebe based on an undeand long term planning
I nfrastructu alon planni and
d theof the costs th
an
will vary g
According ly,financial and pla order for Council (and the community) to understandeach asset's costs n effectively for asset acquisition, operation and maintenance,renewal and
This policy provides the ework to guide the strategic management of Bland Shire Council'sinfrastructure assets and will pported with the development of a more detailed Asset ManagementStrategy and Asset Management Plan- The Corporate Approach.
34
Bland Shire Council Asset Management Plan 2015
Asset
Management Principles
Council acknowledges the following principles in determining its approach to asset management
. Seruice delivery forms the basis for asset management¡ Asset management will be integrated with corporate, financial, busrness and budgetary
planning and will form an essenúral component of the Community Strategic Plan andDelivery programs
. lnformed decision making, incorporating a life cycle approach to asset management whilstminimising public liability exposure and providing a best value service to the community
. Esúaölishing accountability and responsihilityfor asset condition, use and performance¡ Susfarnability, providing for present needs while sustaining resources for future generations
with
a Achi ancial s ility assets over a period of time through the followingm
o that the base is not increased without considering the impact on Councilsntenance and renewal of the assetability futu
o Not repl that are determined to be underutilised, at the end of theiruseful lives, consultation with the community and determining the impact of notreplacing the will have on the community
o Continually improving Councils maintenance and renewal practices and adopting bestpractice wherever possible
o lncreasing grant, contributions and other funding to ensure that assets are maintained in
an optimum conditiono Utilising technology advances and innovative solutions that assist and are relevant to
asset preservation, maintenance and reducing overall life costs
Maintaining and renewing Councils existing assets in a manner which is acceptable to Counciland the community in terms of safety, access, quality, impact on the environment, meetingcommunity needs and Council's ability to fund those works.
o
35
Bland Shire Council Asset Management Plan 2015
Regularly consulting with the community to determine whether its needs are being met.
Preparation and review of detailed asset management plans for all major classes of assets andusing these plans to assist Council to determine the priorities for capital, renewal andmaintenance expenditure.
Asset Management Responsibilities
Councilwill
r act as responsible custodians and trustees for infraétructuie'assets and maintain accurate andreliable asset registers
a
a
a
a
a
Gene
a
o
a
a
Maximising resources to achieve the best outcome for the community
resou. del.mO
a
a
set I
ensureservrce
rt ance
and ble i
organisatio n in achieving the Asset Management
n available resourcesis presented to Council for decision making
36
Bland Shire Council Asset Management Plan 2015
Directors and Managers
. assist the General Manager to develop the Corporate Asset Management Policy, Strategy andPlan
o as asset "owners" develop and take responsibility for asset management plans for individualasset groups, using the principles of life cycle analysis
. develop and implement asset improvement plans for individual asset groups
. implement improvement plans (maintenance programs, capitalworks programs) in accordancewith Asset Management Plan and Councils Management Plan and Budget targets
. deliver levels of service to agreed service, risk and costs standardso prêsêrìt information to the GM and Council in terms of asset life cycle risks and costs
Asset Management Program
m pe co parks and gardens, ovals and recreation
rese cemeteries, s furniture, parking areas, sewerage systems, saleyards,
caravanhousing
m s, Council vehicle and plant fleet and Council owned
ldings, I n nology (lT) computer networks and equipment.
Sustainability is ieved n Council allocates sufficient resources to the maintenance and
aerod
renewal of itsuseful life.
that they can be replaced or renewed at the end of the assets
37
Bland Shire Council Asset Management Plan 2015
Related Policies
Community Strategic Plan
Risk Management Policy
Related Legislation
Local Government Act 1993 (as amended)
Local Government Amendment (Planning and Reporting) Act 2009
Roads Act 1993
Civil Liabilities Act 2002
I nternational lnfrastructure Manag ntStatewide MutualAustRoads Guide
Ma
10. ASiNZS1 1. ARRB T
rso
Review
The Policyoperational am
input within 4 years from date of adoption, withCouncil's approval
Refere
1
234567I9 an
s
38
¡
Bland Shire Council Asset Management Plan 2015
Authorisation:
Status Committee
Manex
Owner DIRECTOR ENGINEERING SERVICES
EDRMS Doc. lD 332821
Superceded Policy
Review DateRevision Number Minute Number,,?,:.,..
Date of Adoption/Amendment
.;:,:t,'0 33t20 December 2005
18 April 2011121 March 2006
May 201527 May 2011 2
Related Council Policy / Procedure
Community Strategic Plan Policy ,i/¿2,?,".. "1
?.,Risk Management Policy
39
Bland Shire Council Asset lVlanagement Plan 2015
Responsible Officer
Asset Team -
commenced
Asset Team -
commenced
MJT - commenced
aa
Resources
Engineering Services
Engineering Services
Asset Team-lnvestigate use of"reflect"
a
Ensure current utilisation rates are being monitored and stored in a
database
lnclude future demands as an item in the community consultationstrategy
Develop/adopt industry best practice Asset Condition Check lists and
program annual inspection program
Action
Future Demands
To compile a complete asset
condition rating of all councilassets:
20L4
41.
Bland Shire Council Asset Management Plan 2015
A Strategy on any approach to effective management provides a better understanding of how to align
commitment to the delivery, asset management being no different. This strategy outlines the steps required to
align the asset portfolio so that it best meets the delivery need of the local community now and in the future,
allowing the aims, objectives and commitment of council asset management policy to be achieved and aligning
the management of assets with Councils Community Strategic Plan and Delivery Programs.
At the time of writing this overview Bland Shire Council has no confirmed approach or adopted method forthe
management of its asset base, in fact very little in the way of a systern.except the recording of the assets and
their replacement value exist for the greater part of council "Fair Válue" for Councils buildings and road assets
have been completed in accordance with AASB 116 and local goúernment requirements however there is a
distinct need to scrutinise existing data, particula ments and develop a rigorous asset system to
store and maintain existing and future data.
Council is exposed to varying risk from unknown conducting aõtivities on or in council
assets. Council's duty of care under the O isto p place and implement safe work
practises for all employees this is inclusive rs; uncil's obligation to meet this statutory
requirement is deficient as no formal ma t are in n many of Council's community assets.
To follow on this issue exposes il to the lity o failing to provide a safe
workplace, public liability al inju reé iá place for preventing unauthorised
or unqualified work being o bers, I is also exposed to prosecution under
environmental laws, conside provided it would be expected that council manage theut by
u ncil
commr
assets according
the LGSA sho
to do da to council's reputation within the community and
Managing an effectively o xrmum servrce levels requires recording accurate and current
information on limited to t llowi the identification of the asset, function, current cost to
provide, current ma nt plan, ral US, life cycle, role in council's community strategic plan,
occupancy, visitation future utilisation, and priority within council's asset register. This
information provides a to develop counci l's asset management plan
The strategic approach outlined e body of this document will ena ble a systematic method in collection of
accurate asset data and overview of what council is actually managing, this will provide insight into what for
dollar value council is achieving and what level of service is being provided to current assets, this will provide the
basis of the determination of what category the asset will be placed under in the overall asset management plan.
The nature of local government is such that the majority of council assets exist under the management of the
engineering seruices. A review of where all asset responsibilities lie will need to be completed so Councils asset
management systems align to industry best practise and are systematic in approach. This strategy will guide
Council into the utilisation and format of the IPWEA NAMS PLUS Asset Management Plan templates a resolution
previous passed by Council.
42
Bland Shire Council Asset Management Plan 2015
ASSET MANAG EMENT STRATEGY
Step L:Buildino current asset reoistersCondition of current assets
Operotina and maintenance cost of our ossets
Utilisation rate of assets
Com m u n itv e xpectotionsFuture Demonds
What Assets does council currently manage?
l. ldentificotion of Assets
There has been no formal adoption of rs or
currently recorded by various means th ncil but
folders or hard copy. A search has found
Schedules and in some incomplete "Access" d
It would seem that each ofareas of interest in counci nancial
This process is asm
positions.
software. of assets are
in individualstaffpt via excel
ation lnfo folders in excel folders of lnsurance
not been tested for accuracy levels.
ng information on their assets or
nce.
and data is lost when staff members vacate their
t.
il.ilt.tv.V.
vr.
kn
such
43
Bland Shire Council Asset Management Plan 2015
The areas of Council's Directorate are currently Corporate, Community & Development Services, Asset &
Engineering Services and General Managers Office. Directorate responsibilities include the following;
Asset & Engineering ServicesDirectorate
Office of the GeneralManager
Gorporate, Gommunity & DevelopmentServices Directorate
RatesAnnual FinancialStatementsAnnual Budget &ReviewDebtorsCreditorslnvestmentsLong TermFinancial PlanningCouncil LeasesManage Section355 CommitteesAdministrationCustomer Service
&
T
Toy LibraIt Takes
CommunityDevelopmentYouth ServicesFamily Day CarePreschoolMobile ResourceUnitVacation Care
PLi
Corporatelnformation/RecordsManagementlnformation
. Urban SealedRoads
. Urban UnsealedRoads
: Rural Sealed. Roads. Rural Unsealed
.Roads. Urban Roadside. RTî,-. Street Gleaning. Aerodronie. Parking Areas... Private Works.. .
':-'.:',CemeterieS , ,,ri' Passive Recreation
Areas. Parks & Gardens.:, Sporting Ovals'y'T'ç9e Planting &
Ré.4.9va1. Cyclé/Walking
r,.l;.Paths.'.lRural Fire Service. State Emergency
Service
. Saleyards
. Street lighting
. Sewerage Services
. Waste Services
. Public Conveniences
. Public SwimmingPools
. Asset Management
. Council PropertiesManagement &Cleaning
. Risk Management
. lnsurances
. WH&S
. Stores Management
. Plant & DepotManagement
. Pest Control
. Noxious Plants
. Governance
. lnternal Audit
. Compliance
. Executive Support
. Human ResourceManagement
. EEO
. Training
. Payroll
. IPR Development &Review
. EconomicDevelopmenU Tourism
Responsibility Areas
Action-To comp¡le a complete identification
listing of all counc¡l assets
o Gathering of all existing data and compile into a Asset Folder on"F"Drive (temporary asset register) until a corporate system is finalised
. Agree on the type category of each asset
o Develop register into agreed type categories. Confirm register listings with management areas
. Carry out initial risk assessment of register¡ lnvestigate corporate asset system
44
Bland Shire Council Asset Management Plan 2015
What physical state are our assets in?
ll. Condition of current ossets_
Some of council's assets have this information already attached to an existing data base and for smaller group
type assets (e.g. pipes, outdoor seating) may be acceptable for the establishment of the asset register, for the
larger assets and especially the assets that house essent¡al service delivery (as identified from the initial risk
assessment) it will be critical that the information of the assessment is accurate.
To assess the current physical state of an asset will require various levels of expertise to gain accurate
information forthe required dataset and a combination of the following methods may be utilised;
bed period
many customer
bs such as potho es,
ilised with
nt patch jorut
rre
de
cu
un
re
a
r renewal or capita
d
m
woul
syste
m
tsthrougth
fo
Request (
p
id
ng
Council's current
com plaints/requests
drainage is therefore
45
Bland Shire Council Asset Management Plan 2015
Action -To compile a complete asset
cond ition rating of a ll cou nc¡l assets
Gathering of all existing condition data and compile into asset
registers in Asset Folder on "F" Drive (temporary asset register) until
a corporate system is finalisedAdopt councils risk matrix and prioritise asset tasks according
councils exposure to risk
Ensure all staff members are made aware of the importance to log
all customer service requests through the system and make training
available to staff members who regularly use the system.
Develop/adopt industry best practice Asset Condition Check lists and
program annual inspection program
Provide a five year program and budget for asset condition data
collection
a
a
o
a
a
parent costing accounts set up
re in use for the recording of
Currently, it is difficult to account for capital and maintenance expenditure on assets and attribute the
appropriate asset adjustments as the finance system has no direct links to the asset system or Councils adopted
GIS program Mapinfo.
True costing and the whole of life costs of individual assets can only be calculated and determined when the
income and expenditure is directly linked to the asset.
Asset ldParent Number : Child NumberPrincipal ActivTown Streets R2R
36000901-Park Street36500902-Acacia Street 4r0(
0903- 3655Conway Street
46
Bland Shire Council Asset Management Plan 2015
Action - Operating and ma¡ntenance cost of
lnvestigate methods to link financial, asset and GIS information so
expenditure can be directly attributed to the costs of the individualasset
Ensure Councils corporate knowledge system can provide these links
prior to upgrading/ redundancy of the current Practical program.
ou r assets
a
a
What is the usage rate of the asset?
lV. Utilisotion rote of assets
Assets are used at differing rates according
apply to councils essential service assets s
& gardens, reserves, swimming pools and co
The information that wil
for classification of High,
I ind be
lnformation on vi
Bookings
Events
Ga
Veh u
Land u
from asset
Membership ofo
tr
lds
but a
lity. The utilisãtion rate will not only
structure such as roads, footpaths, parks
the rating needs to be decided on
a
a
a
a
a
a
a
a
lncomeons
Action- Ut¡lisation rate of assets
Gathering of all existing condition data and compile into asset registers in
Asset Folder on "F" Drive (temporary asset register) until a corporatesystem is finalisedEnsure Councils corporate knowledge system can provide these links
prior to upgrading/ redundancy of the current 'Practical' corporatesystem.
a
a
47
Bland Shire Council Asset Management Plan 2015
What is the satisfaction level with the delivery?
V. Community expectotions
Asset functionality is influenced by the users, are expectations of the community being met, are community
expectations realistic or affordable and does the asset give value for dollar service. To gain this information
consultation with the users of the asset will need to be conducted and research of the customer service requests
and customer complaints systems carried out.
The results will provide council with direction and the ability to rank priorities on agreed rating of High, Medium
or Low
lnformation compiled from customer complaints and the customei service requests system should indicate
service discrepancies, type of failing and the level lwill need to address
Levels of service however must be directly aligned
with whole of life costing calculated.
What are the future demands for the asset?
Vl. Future Demonds
The future of an asset will depend on current demand, current and past utilisation rates as well as predicted
population growth and identified for inclusion in forward town planning. The rating for future demands should
be listed as importance of High, Medium. Low,
matrix and considered in budgets allocations
Action - Community expectations
Ensure all staff members are made aware of the importance to log all
customer service requests through the system and make trainingavailable to staff rnenrbers who regularly use the system
lmplement a comnrunication strategy to promote and gain feedback on
determining affordable and acceptable levels of service which thecommunity are willing to pay for (align with consultation for theCommunity Strategic Plan)
a
a
48
Bland Shire Council Asset Management Plan 2015
lnformation will be used to determine;
o Existing utilisation rates,o Trend in utilisationo Asset consumption rateo New technology
lnformation can be sourced through councils Planning Unit on LEP and growth rates for the area of asset and
consideration of the information from community consultation'
At the comp
information
r has begun to take shape and should containthe
currentconditionoperating a
utilisation rateuser satisfaction w rsron
future demand indica
It is paramount that these registers are maintained in a central asset database system and council will need to
investigate all options when upgrading their corporate data system to ensure that important corporate
knowledge and information can be stored, shared and integrated into the finance, Asset and GIS programs of
Council.
a
a
O
a
a
a
Action- Future Demands
Ensure current utilisation rates are being n-ronitored and stored in a
data ba se
lnclude future demands as an item ìn tire comrnunity consultation
strategy
a
a
nt assets
nce
a
49
Bland Shire Council Asset Management Plan 2015
Step 2:t.
il.ilt.
Ensurine the rie asset is nrovidedEnsurins qualitv management
What outcome does council require from asset management?
!, Deciding where council wants to be
The answer to the question of "where does council want
current attitudes and practises. The key outcome in a
should be;
"The provision of services responsive to the unity's
What is Asset Manacement?
"the combination of mana fina
physical assets, with the the level of
Deciding where council wants to be
nt act
lies in t sought and may affect
with Cou gement Plan 2010-2015
ng and other practices, applied to
in the most cost effective manner."
n rporate management system needs to be
in accordance with the IPWEA NAMS plus format;
usage rates, occupancy entitlements, financial position,
and life cycle costs.
To aid council in
embraced.
The system s
condition status,
records of inspecti
Council also needs from
outcomes and that service I
over servicing is eliminated
s
m to be able to determine if the assets provided meet agreeable
nually being monitored and achieved within a sustainable budget and
ave the abi
rp, mat
of man
50
Bland Shire Council Asset Management Plan 2015
Action - Deciding where counc¡l wants to be
Ensure that an appropriate budget is set aside in the 2011/12 budget toupgrade the corporate management system.
Ensure that the appropriate staff members with hands on practical
experience from finance, GIS and assets have input into the process ofpurchasing the corporate management system.
a
a
How to ensure that the right asset is provided?
ll. Ensuring the right osset is provided
ln deciding what is needed and what level
ldentify the critical assets
ldentify c
ncilwill need to research the following;
use
our current demands
a
o
a
a
a
a
Determto co nity
ration '
rasingle
rpo rrent
posa
Determ pla costs and le of life costs
Assess cu
urelsu
ldentify a
port on a
ln doing so, council will critica and identify any future funding shortfalls
5L
Bland Shire Council Asset Management Plan 2015
Action - Ensuring the right asset is provided
o Ensure current utilisation rates are being monitored and stored in a
data base.o lnclude research items in the community consultation strategyo Gathering of all existing condition data and compile into asset registers in
Asset Folder on "F" Drive (temporary asset register) until a corporate
system is finalised
Ensuring quality consistent management?
lll: Ensuring quality monqgement
Assets require different levels of m according to
with the listing from
e.g, a major
n of management
where the maintenance and environment are consistent a
d have apþro.aches incorporating
plans that progress to developing sustaina
To achieve this goa
the assets register.
I all assets
A plan will be up
infrastructu as roads,
developed, but
generic plan of man
This process will need to
ec
s,
onal a
ent listing a co e adopted
h
a
a
a
a
a
a
a
ldentify type users
ldentify owner of asset and any license or lease requirements
Assess financial position and future impact on budgets
Review service levels
Develop plan of management with community consultation
Display plans
Adopt plans
The end process wil determ ne expenditure forecasts for short and ong term budgets
52
Bland Shire Council Asset Management Plan 2015
Action - Ensur¡ng qual¡ty management
Prepare Asset Management Plans in line with the IPWEA NAMS Plus
templates.Prioritise asset categories in accordance with councils current exposure
to risk and list assets for the preparation of Plans
lnclude in community consultation strategyReview current service levels and revaluate service levels using risk
a
a
a
a
and adopted
is committed to
ent"
For council to provide a plan it to be based on an asset management system, the chosen best
practise system is IPWEA system will need to be housed and managed through a dedicated asset
module which should be entre Council's information management system
The process identified is;
All assets to be loaded into temporary "F" drive folder until council decides what informationmanagement system will be used
Asset registers will be required to be manually maintained prior to a dedicated asset managementsystem being adoptedControls on and links to the system maintenance be identified on a needs basis and to be determinedprior to purchase or upgrade of Council's lnformation Management System
a
a
a
53
Bland Shire Council Asset Management Plan 2015
ll. NationolAsset Monøgement System
The development of the documents and asset system
Asset Management plans will use the adopted format of the IPWEA NAMS Plus system. Management of the data
will be critical and council will need to write rules ensure the dataset remains valid, for GlS, asset registers and
fina ncia I accountability.
Council currently has access to the GIS program Maplnfo and Assets program Reflect for State Road
infrastructure. Further investigation will be needed to determine if existing lT resources can be utilised and
married to Councils future information management system.
Action - How do we achieve desired outcomes
Prepare Asset Management Plans in line the IPWEA NAMS Plus
tem plates
Ensure that the appropriate staff members with hands on practical
experience from finance, GIS and assets have input into the process of
purchasing the corporate matragement system.
a
a
54
Bland Shire Council Asset Management Plan 2015
I PWEA NAMS PLU S û¿ad ?o(*rye,**,î T^U/"
DEFINE SCOPE &STRUCTURE OF PLAN
CORPORATE PLANNINGConfirm strategic objectives and establish AMpolicies, strategies & goals.
Defi ne responsibilities & ownership.Decide core or advanced AM Pan.Gain organisation commitment.
REVIEW/COLLATE ASSET INFORMATIONExisting information sourcesldentiff & describe assets.Data collectionCondition assessmentsPerformance monitoringValuation Data
Establish strategic
Establish measures &
ESTABLISH
Define & adoptAM PLAN
REVIEWANDAUDIT
decision
Fzul
uJ
oÉo-
=FoEE(ú
summary
Assess currenUdesired practices
Develop improvement plan
PLAN
ITERATIONReconsider service statementsOptions for fundingConsult with CouncilConsult with Community
IS THE PLANAFFORDABLE?
55
Bland Shire Council Asset lVlanagernent Flan 20L5
ø b*0¿ 9-¿" ûM'%o."'a? ^urrî Vo.r*ã,r't u
CorporateAssetManagementPlan
. INDIVIDUALPLANS
. Sewer
. TransportI nfra stru ctu re
. Town andVillage Service
. Buildings andPlant
ran
a
V¡II
d
cq>Fbo(I)ñ(u
9FE\-õv)
c- (ft)rto-gEbo9l-f--l Gt:c
ir
nagemPolicy
MAsset
a ent
56
Bland Shire Council Asset Management Plan 2015
MJT completed
MJT completed
MJT completed
MJT completed
MJT completed
Director - completed
MJT completed
MJT completed
Director - ongoing
Director - completed
' porate,serviËes '::.,"
eam
.'''l n ì"t Team:ìi:,,¡ r. . .i.ri , .,¡1..¡1"
rrì1r- 1 .
Asset Teamrì.i.rìi:: ";..'.ì\'
'^iN¡
Asset Team
Asset Team. ì. .¡
.lllt I
,r", Team
:t'
Corporate Services
Engineering Services
Gather of all existing data and compile
., r'ìiì
FU
rporateFolder
Drive (temporary asset register)final
Agree on the type of
Develop register into
Confirm register list¡ngs with ma reas
¡
Carry out initial risk assessment of register ìi:ifìt lr
Llnvestigate corporate asset system ì,,'
Gathering of all existing condition data and compile into asset
registers in Asset Folder on "F" Drive (temporary asset register)until a corporate svstem is finalised
Adopt councils risk matrix and prioritise asset tasks accordingcouncils exposure to risk
Ensure all staff members are made aware of the ¡mportance tolog all customer service requests through the system and make
training available to staff members who regularly use the system
Provide a five year program and budget for asset condition datacollection
To compile a completeidentification listing of
allcouncil assets
57
Bland Shire Council Asset Management Plan 2015
Communications Unit -completed
Director-completed
Director-completed
Director - completed
MJT- completed
Director - completed
Director - commenced
Directors - completed
unity Se
Corporate Services
Services
Corporate Services
CorporateServices/Enginee ring Se rvices
Corporate Services
",: ir'i ì¡
i:lìÌì-ìiliìr'Ìl$.flìì¡
Asset Team
.. I..,\...l. iiJ:r
on
log a
ln
rporate
m
thesecorpo
so
theinform
uted to theasset a
ster
these li rn
rrent
lmplement a communication strategy to promote and gain feed
determining affordable and acceptable levels of service whfortoare willcommu
Ensure that an appropriate budget is set aside inThe2O]-2/!3 budget toupgrade the corporate management
Ensure that the appropr¡ate staff members with hands on practical
experience from finance, GIS and assets have input into the process ofthea ma ment
redEnsure Councils
touGathering of all existing condi
Asset Folder on "F" Drive (temporaryand
ts
Ensure Councils corporate knowledgeto upgrading/ redundancy ofthe current
can
Ensure all staff members are made aware ofcustomer service requests through the
available to staff members whoke
the
m
lnvestigate methods to linexpenditure can be direct
Deciding where Council wantsto be
To compile utilisation rate ofassets
To meet communityexpectations
To compile operating and
maintenance cost of ourassets
58
Asset Management Plan 2015Bland Shire Council
Director-completed
Asset team - comPleted
Communications Unit -
completed
Asset Team-completed
Asset team - comPleted
Asset team - comPleted
Asset team - comPleted
Communications unit -
completed
Services
munity
ngineering
Engineering Services
, t"'t'.:r lii'' iì
tnsrneennq 5ervlces
Community Services
Engineering Services
i:l\:ìiiì:..ìi
urè toi:ì
Plus
tnasset
using risk
future
the commu
Prepare Asset Management Plans in line with the IPWEA
lates
Ensure that the appropriate staff members with
experience from finance, Gls and assets have ¡nput into the process ofrate ma mntthe
hands on practical
Prepare Asset Management Plans in linetemplates
e
Prioritise asset categories in accordance with coun
risk and list assets for thecurrent
ration of Plans
lnclude in community consultation strategy
lnclude research
Gathering of all existingAsset Folder on "F" Drive
co
assetis fina
Review current service levels and
and results of the research data
ce
and
allocations
How do we achieve desired
outcomes
Ensuring quality management
59
Bland Shire Council Asset Management Plan 2015
Plant & Equipment
SCH EDU LE 3
76,616,953 65,482,802Roads -Sealed 819.56km
26,0L7,265Roads -Unsealed 2,370.61km 48,486,904
L5,7O7,OOOBridges 9 bridges +47pedestrian 1.8,465,000
17,130,000Kerb and Gutter 95.36km
2,550,000Footpaths 26km 3;6V1,OOO
Shared Paths 8.3km ::':. . /':;. 2,250,009 1,6LL,000
382,24r 339,843Transport Others
6,266 23 89Sporting Gomplex
2,845PlaygroundsEquipment
2 2,r87,739Open Space-Parks
0,968 11,560,894Stormwater
22,r48,50r 10,208,000Sewer
2,98t,1t4Other Stru 4,393,298
lngs "':/ 24,72r,L98 17,49r,044Buildings
15,736,894 1,255,998
Livestock
3,3r9,345 2,724,027Swimming Gom 2
1,45L,000 L,L47,000Aerodrome 1
4,793,000rL,46t,OOO
265,853,L97 L85,944,315
6L
Bland Shire Council Asset Management Plan 2015
The current gross Replacement Value of the existing network of infrastructure assets in the Bland LGA is
S265,853,197 (as at June 2014)
The estimated costs of maintenance and renewal are extrapolated from each sub-plan category's 10 year
forecast (based on whole of life costing)
These sub-plans are kept in the asset 10 year plan register.
The shortfall in Asset Maintenance (including asset renewal)l is the d nce between these 10 year asset
forecast plans and the 10 year affordable financial budget fore
The shortfall for the 2015-2016 financial year is estimated
62
Bland Shire Council Asset Management Plan 2015
ufuBLAND SHIRE COUNCIL
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