A Proud Community Growing Together

Melton City Council Asset Management Plan 2014 - 2018

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1.0 Executive Summary – Asset Management Plan 13

1.1 Purpose (The Asset Management Plan) 13

1.2 Asset Types in the City of Melton 14

1.3 Levels of Service 14

1.4 Future Demand 14

1.5 Lifecycle Management Plan 15

1.6 Financial Summary 15

1.7 Asset Management Practices 16

2.0 Introduction 24

2.2.1 Relationships with other plans 20

3.0 Levels of Service 30

3.1 Customer Research and Expectation 23

3.2 Legislative requirements 23

3.3 Asset Hierarchies 24

3.4 Current Levels of Service 24

3.4.1 Community Levels of Service 24

3.5 Desired Levels of Service 25

4.0 Future Demand. 32

4.1 Demand Drivers 25

4.2 Demand forecast 25

4.3 Changes in technology 27

4.4 Demand Management Plan 27

4.5 Asset Programs to Meet Demand 27

4.5.1 New Assets from Precinct Structure Plans & Sub-divisional Growth 27

4.5.2 Capital Program 27

4.5.3 Estimated Valuations and Maintenance 27

5.0 Lifecycle Management Plan 31

5.1 Background Data 31

5.1.1 Physical parameters 31

5.1.2 Asset Condition, Valuation and Sustainability 32

5.2 Risk Management 32

5.3 Routine Maintenance 32

6.0 Financial Summary 33

6.2.1 General Rate Revenue 33

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6.1.2 Federal Governments Roads to Recovery 33

6.1.3 Grants Commission - Financial Assistance Grant 34

6.1.4 Developer Contribution Funding (DCP).. 34

6.2 Valuation Forecasts 34

6.3 Key assumptions made in financial forecasts 35

R1.0 Introduction 39

R1.1 Background 39

R1.2 Road Asset Types In Melton City 40

R 1.2.1 Council’s Roads 40

R1.2.2 VicRoads Assets 41

R1.2.3 Other Roads 41

R2.0 Asset Condition 41

R2.1 Condition Assessment 41

3.0 Levels of Service 42

R3.1 Customer research and expectation 42

R3.1.1 DPCD Community Satisfaction Survey 42

R3.2 Legislative requirements 44

R3.3 Road Hierarchies 45

R3.4 Current Levels of Service 45

R3.4.1 Community Levels of Service 45

R3.4.2 Strategic Levels of Service 46

R3.4.3 Technical Levels of Service 47

R3.5 Desired levels of Service 48

R4.0 Future Demand 48

R4.1 Demand Drivers 48

R4.2 Demand Forecast 49

R4.3Changes in Technology 50

R4.4 Demand Management Plan 50

R4.5 Asset Programs to Meet Demand 51

R4.5.1 New Road Assets from Precinct Structure Plans & Sub divisional Growth 51

R4.5.2 Capital Program 52

R4.5.3 Estimated Valuations and Maintenance 52

R4.6 Road Infrastructure Design, Construction Standards & Specifications 53

R5.0 Lifecycle Management Plan 53

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R5.1 Background Data 53

R5.1.1 Physical parameters 53

R5.2 Renewal, Replacement, Creation and Upgrade Plan 54

R5.3 Summary of future capital expenditure 55

R6.0 Financial Summary 56

R6.1 Financial Statements and Projections 56

R6.2 Valuation forecasts 58

R6.3 Key assumptions made in financial forecasts 58

RA1 General – Roads 61

RA2 Supporting Documents and Strategies 61

RA3 Capacity and Performance 61

RA4 Condition Assessment 61

RA4.1 Current Condition 62

RA5 Asset Valuation & Sustainability 63

RA6 Asset Maintenance 67

RA6.1 Maintenance Plan 67

RA7 Capital Improvement 68

RA8 Disposal of Roads 70

RB1 General- Footpaths 71

RB2 Supporting Documents and Strategies 71

RB3 Capacity and Performance 71

RB4 Condition Assessment 71

RB5 Asset Valuation & Sustainability 72

RB6 Asset Maintenance 77

RB6.1 Maintenance Plan 77

RB7 Capital Improvement 78

RB8 Disposal of Footpaths 80

RC2 Supporting Documents and Strategies 81

RC3 Capacity and Performance 81

RC4 Condition Assessment 82

RC5 Asset Valuation & Sustainability 83

RC6 Asset Maintenance 87

RC6.1 Maintenance Plan 87

RC7 Capital Improvement 88

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RC8 Disposal of Kerb & Channel 89

RD2 Supporting Documents and Strategies 91

RD3 Capacity and Performance 91

RD4 Condition Assessment 92

RD4.1 Current Condition (Age Based Assessment) 92

RD5 Asset Valuation & Sustainability 93

RD6 Asset Maintenance 94

RD6.1 Maintenance Plan 94

RD7 Capital Improvement 94

RD8 Disposal of Traffic Control Devices 96

RE1 General- Bridges 97

RE2 Supporting Documents and Strategies 97

RE3 Capacity and Performance 97

RE4 Condition Assessment 97

RE5 Asset Valuation & Sustainability 100

RE6 Asset Maintenance 102

RE6.1 Maintenance Plan 102

RE7 Capital Improvement 103

RE8 Disposal of Bridges & Major Culverts 105

RF1 General – Other Assets 107

RF2 Supporting Documents and Strategies 107

RF3 Capacity and Performance 107

RF4 Condition Assessment 107

RF5 Asset Valuation & Sustainability 108

RF6 Asset Maintenance 109

RF6.1 Maintenance Plan 109

RF7 Capital Improvement 110

RF8 Disposal of Assets 110

D1.1 Background 112

D1.2 Waterways in Melton 113

D1.2 .1 Water Management in Melton 113

D1.2.2 Council’s Drainage 113

D1.2.3 Melbourne Water’s Drainage 114

D1.3 Other Drainage 114

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D1.4 What is a Catchment? 114

D1.5 Defining Stormwater 115

D1.6 Major & Minor Drainage Systems 115

D1.7 Storm Frequencies 116

D1.8 Storm Duration 117

D1.9 Effect of Development in Melton 117

D1.10 Drainage Asset Types In Melton City 117

D2.0 Asset Condition 120

D2.1 Current Condition 120

D3.0 Levels of Service 121

D3.1 Customer research and expectation 121

D3.1.1 Annual Customer Satisfaction Survey- Stormwater Drainage Assets 121

D3.1.2 Annual Customer Satisfaction Survey- Road Assets (Including drainage in road reserves) 121

D3.2 Legislative requirements 122

D3.3 Stormwater Drainage Hierarchies 123

D3.4 Current Levels of Service 123

D3.4.1 Community Levels of Service 123

D3.4.2 Strategic Levels of Service 124

D3.4.3 Capital Levels of Service – New Assets, Reconstructed Assets, Upgraded Assets 124

D3.4.4 Technical Levels of Service 125

D3.5 Desired levels of service 125

D4.0 Future Demand 125

D4.1 Demand Drivers 125

D4.2 Demand Forecast 125

D4.3 Changes in technology 126

D4.4 Demand Management Plan 127

D4.5 Asset Programs to Meet Demand 128

D4.5.1 New Drainage Assets from Precinct Structure Plans & Subdivisional Growth 128

D4.5.2 Capital Program 129

D4.5.3 Estimated Valuations and Maintenance 129

D4.6 Stormwater Design, Construction Standards & Specifications 130

D4.7 Legal Point of Discharge 131

D4.8 House Siting Guidelines 131

D4.9 New Subdivision and Development 132

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D4.10 Commercial and Industrial Areas 133

D5.0 Lifecycle Management Plan 134

D5.1 Background Data 134

5.1.1 Physical Parameters 134

5.1.2 Asset condition, valuation and sustainability 135

D6.0 Financial Summary 136

6.1 Funding Strategy 136

D6.2 Valuation forecasts 138

D6.3 Key assumptions made in financial forecasts 139

DA1 General- Stormwater Pipes and Minor Culverts 140

DA2 Supporting Documents and Strategies 141

DA3 Capacity and Performance 141

DA4 Asset Valuation & Sustainability 141

DA5 Asset Maintenance 142

DA5.1 Maintenance Plan 142

DA6 Renewal, Replacement, Creation and Upgrade Plan 144

DA6.1 Renewal Plan 144

D6.2 Creation / Upgrade Plan 146

DA7 Capital Improvement 148

DA8 Disposal of Pipes and Culverts 149

DB1 General- Stormwater Pits 151

DB2 Supporting Documents and Strategies 151

DB3 Asset Valuation & Sustainability 151

DB4 Asset Maintenance 152

DB4.1 Maintenance Plan 152

DB5 Renewal, Replacement, Creation and Upgrade Plan 153

DB5.1 Renewal plan 154

DB5.2 Creation / Upgrade Plan 155

DB6 Capital Improvement 157

DB7 Disposal of Pits 157

B1.0 Introduction 160

B1.1 Background 161

B1.2 Building Types in the City of Melton 161

B1.2.1 Council Assets 163

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B1.2.2 Financially Intangible Building Assets 163

B1.3 Supporting Documents and Strategies 163

B2.0 Asset Condition 163

B3.1 Customer research and expectations 166

B3.1.1 Community Feedback – Strategies and Surveys 166

B3.1.2 Work Orders and Customer Requests 167

B3.2 Legislative requirements 168

B3.3 Building Hierarchies 169

B3.4 Current Levels of Service 170

B3.4.1 User Levels of Service 170

B3.4.2 Strategic Levels of Service 171

B3.4.3 Maintenance Levels of Service 172

B4.0 Future Demand 172

B4.1 Demand Drivers 172

B4.2 Demand forecast 173

B4.3 Changes in Technology 175

B4.4 Demand management plan 175

B4.5 Asset Programs to Meet Demand 176

B4.5.1 New Building Assets from Precinct Structure Plans & Sub divisional Growth 176

B4.5.2 Capital Program 177

B4.5.3 Maintenance Planning 177

B4.5.3 Estimated Valuations and Maintenance 178

B5.1 Background Data 178

B5.1.1 Physical parameters 178

B5.2 Building Design, Construction Standards & Specifications 179

B5.3 Renewal, Replacement, Creation and Upgrade Planning 179

B5.3.1 Renewal planning 179

B5.3.2 Creation / Upgrade Renewal Standards 180

B5.3.3 Creation / Upgrade/ Expansion Plan 180

B5.4 Building Design, Construction Standards & Specifications 180

B6.1 Funding Strategy 181

B6.3 Key assumptions made in financial forecasts 182

B6.4 Forecast Reliability and Confidence 183

BA2 Supporting Documents and Strategies 185

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BA3 Capacity and Performance 185

BA4 Condition Assessment 185

BA5 Asset Valuation & Sustainability 186

BA6 Maintenance Programs & Expenditure 187

BA7 Capital Improvement 188

BA8 Disposal of Commercial and Civic Buildings 190

BB1 General - Community Buildings 191

BB2 Supporting Documents and Strategies 191

BB3 Capacity and Performance- Community Buildings 191

BB4 Condition Assessment- Community Buildings 191

BB5 Asset Valuation & Sustainability 192

BB6 Asset Maintenance & Expenditure 193

BB7 Capital Improvement 194

BB8 Disposal of Community Buildings 196

BC1 General – Council Housing 197

BC2 Supporting Documents and Strategies 197

BC3 Capacity and Performance 197

BC4 Condition Assessment 197

BC5 Asset Valuation & Sustainability 198

BC6 Asset Maintenance & Expenditure 199

BC7 Capital Improvement 200

BC8 Disposal of Buildings 201

BD1 General – Industrial Building Facilities 203

BD2 Supporting Documents and Strategies 203

BD3 Capacity and Performance 203

BD4 Condition Assessment 203

BD5 Asset Valuation & Sustainability 204

BD6 Asset Maintenance & Expenditure 206

BD7 Capital Improvement 207

BE1 General- Childrens Services Facilities 209

BE2 Supporting Documents and Strategies 209

BE3 Capacity and Performance 209

BE4 Condition Assessment 209

BE5 Asset Valuation & Sustainability 210

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BE6 Asset Maintenance & Expenditure 211

BE7 Capital Improvement 212

BE8 Disposal of Buildings 214

BF1 General – Public Conveniences 215

BF2 Supporting Documents and Strategies 215

BF3 Capacity and Performance 215

BF4 Condition Assessment 215

BF5 Asset Valuation & Sustainability 216

BF6 Maintenance Programs & Expenditure 217

BF6.1 Maintenance Planning 217

BF7 Capital Improvement 218

BF8 Disposal of Buildings 219

BG1 General- Recreational Buildings 220

BG2 Supporting Documents and Strategies 221

BG3 Capacity and Performance 221

BG4 Condition Assessment 221

BG5 Asset Valuation & Sustainability 222

BG6 Asset Maintenance & Expenditure 224

BG7 Capital Improvement 225

BG8 Disposal of Buildings 227

O1.0 Introduction 230

O1.1 Background 230

O1.2 Open Space Asset Types in the City of Melton 231

O1.3 Management of Open Space Assets at the City of Melton 231

O1.4 Tangible and Financially Intangible Open Space Assets 232

O1.5 Supporting Documents and Strategies 232

O2.0 Condition 233

O3.0 Levels of Service 233

O3.1 Customer research and expectations 233

O3.1.1 Community Feedback – Strategies and Surveys 233

O3.1.2 Work Orders and Customer Requests 234

O3.2 Legislative Requirements 235

O3.3 Open Space Hierarchies 237

O3.4 Current Levels of Service 237

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O3.4.1 Strategic & Technical Levels of Service 237

O3.4.2 Maintenance Levels of Service 239

O3.5 Desired levels of service 239

O4.0 Future Demand 239

O4.1 Demand Drivers 239

O4.2 Demand Forecast 240

O4.3 Changes in Technology 242

O4.5.1 New Open Space Assets from Precinct Structure Plans & Subdivisional Growth 243

O4.5.2 Capital Program 244

O4.5.3 Estimated Valuations and Maintenance 244

O4.5.4 Current and Planned Maintenance & Expenditure 245

O5.0 Lifecycle Management Plan 247

O5.1.1 Physical parameters 247

O5.2 Renewal Plan 247

O5.3 Upgrade/Expansion/Creation 248

O5.4 Creation / Upgrade Renewal Standards 248

O.5.5 Open Space Design, Construction Standards & Specifications 248

O6.0 Financial Summary 248

OA1 General- Parklands & Reserves 251

OA2 Capacity and Performance 251

OA3 Condition Assessment 252

OA4 Asset Valuation & Sustainability 252

OA5 Capital Improvement 252

OA6 Disposal of Open Space Assets 252

OB1 General – Environmental Reserves 253

OB2 Capacity and Performance 253

OB3 Condition Assessment 253

OB4 Asset Valuation & Sustainability 253

OB5 Renewal, Replacement, Creation and Upgrade Plan 253

OB6 Capital Improvement 254

OC1 General- Active & Passive Recreation Reserves 257

OC2 Condition Assessment 257

OC3 Asset Valuation & Sustainability 259

OC4 Capital Improvement 260

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OC5 Disposal of Open Space Assets 262

OD1 General – Play Spaces (Equipment) 263

Table OD1 – Sub-asset type, quantity and replacement value – Play Spaces 263

OD2 Capacity and Performance 263

OD3 Condition Assessment 263

OD4 Asset Valuation & Sustainability 264

OD5 Capital Improvement 265

OD6 Disposal of Open Space Assets 267

OE1 General 269

OE2 Capacity and Performance 269

OE3 Condition Assessment 269

OE4 Asset Valuation & Sustainability 272

OE5 Capital Improvement 273

OE6 Disposal of Park Furniture and Ancillary Assets 275

OF1 General- Park and Sports Ground Lighting 277

OF2 Capacity and Performance 277

OF3 Condition Assessment 277

OF4 Asset Valuation & Sustainability 278

OF5 Capital Improvement 279

OF6 Disposal of Open Space Assets 280

7.0 Asset Management Practices 281

7.1 Accounting / financial systems 282

7.1.1 Financial System 282

7.2 Asset management systems 283

7.3 Information flow requirements and processes 283

7.4 Standards and guidelines 284

8.0 Plan Improvement and Monitoring 287

8.1 Improvement Plan 287

8.2 Monitoring and review procedures 292

10.0 References 297

11.0 Appendices and Attachments 299

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1.0 Executive Summary – Asset Management Plan

1.1 Purpose (The Asset Management Plan)

Melton City Council exists to provide services to its community through the delivery, acquisition and maintenance of infrastructure and other assets. Assets may be acquired through contract arrangements, purchase, construction and by way of developer contribution. In accordance with Melton City’s Asset Management Strategy our goal in managing assets is to meet the required level of service in the most cost effective manner for present and future consumers.

Melton City Councils Asset Management Plan (AMP) has been developed to articulate Councils Asset Management practices to the community. This AMP is presented as a suite of documents to address issues common to all asset classes while also presenting unique information for each asset class covered by this plan. Figure 1 illustrates the format of this document.

Figure 1 – Asset Management Plan – Suite of Documents

This Asset Management Plan (AMP) incorporates 4 Sections being the Road Asset Management Plan (RAMP), the Drainage Asset Management Plan (DAMP), the Buildings Asset Management Plan (BAMP) and the Open Space Asset Management Plan (OSAMP). These sections provide generic information about the asset category and contain parts (as shown at Figure 1) which provide specific detail about asset subclasses.

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1.2 Asset Types in the City of Melton

The AMP has been developed as a complete suite of documents accounting for all asset classes owned and operated by the City of Melton. At July 2014 the Melton City Council is responsible for assets with an assessed replacement value of approximately $1.1 Billion dollars, excluding land value. Asset groups included in this plan are as follows;

Asset type Description Replacement Value

Roads and Related Infrastructure

This asset class includes sealed and unsealed roads, footpath, kerb and channel, traffic control devices, signs and signals, road furniture, bridges and street lighting. Sub-section 1 of the AMP details these subclasses.

$687,579,373

Drainage (Stormwater Infrastructure)

This asset class includes stormwater pits and pipes, minor culverts, gross pollutant traps, retarding basins, levee banks, dams, open channels, water sensitive urban design and sedimentation ponds. Sub-section 2 of the AMP details these subclasses

$273,365,845

Buildings This asset class refers to all buildings held on Councils asset register including commercial and civic buildings, community buildings, Council housing, industrial buildings, children services centres, public conveniences and recreational facilities. Section 3 of the AMP details these subclasses.

$140,826,892

Open Spaces This asset class accounts for all open passive and active spaces including passive reserves, environmental reserves, Active reserves and assets, park furniture and ancillary items, play spaces and public lighting. Sub-section 4 of the AMP details these subclasses.

$35,057,384

TOTAL $1,136,829,494

Table 1 – Asset Classes City of Melton as at July 2014

1.3 Levels of Service

Councils Assets, in general are provided and maintained to a very high level of service. Each section of this plan reports customer satisfaction levels with regard to asset provision and maintenance (where available) as well as strategic and technical service levels.

Overall it is demonstrated that the majority of Councils assets are held in good to very good condition and that these appear to meet the current needs of the community, indeed, in some instances it would be arguable that Council is over servicing the needs of the community and that through advanced asset practices such as community engagement and data modelling it may be shown that potential savings, or at a minimum more informed asset renewal and maintenance allocations may be achieved. Such activities have been recognised as improvement actions to the AMP and shall be included in future iterations of this plan.

1.4 Future Demand

Perhaps the biggest influence on asset provision and maintenance within the City of Melton is the expected rate of development and population increase to the community. This will see a significant

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rate of growth across all asset classes with many new assets being realised through development of growth areas and sub divisional growth. The short term result of such growth will result in substantial increases in asset replacement value and high quality amenities and facilities, all of which are expected to assist Council to deliver a fundamental role in provision of services to the community.

Council shall need to understand and determine more fully the services it will continue to offer the community and the ways in which such services shall be funded and supported. Completion of this process shall involve development of service plans across the organisation which considers asset requirement, use, development and lifecycle management, as well as community consultation and engagement.

In managing our growth Councils Asset Managers will look to advances in technology, service planning, best use and maintenance of assets and sustainable service agreements to ensure the best possible outputs for the community from the asset portfolio. Each sub-section of this plan discusses demand in detail and provides opportunity for embracing technological advances in the years ahead.

1.5 Lifecycle Management Plan

The process of lifecycle asset management includes all management options and strategies as part of the asset lifecycle, from planning to disposal. The objective of managing the assets in this manner is to look at long-term cost impacts (or savings) when making asset management decisions

Each sub-section of the AMP addresses lifecycle of asset classes specifically and is supported by modelling where completed for future renewal and upgrade of various asset subclasses.

1.6 Financial Summary

Figure 2 illustrates growth of assets across all classes between 2015 and 2019. Substantial growth is attributed to the rate of precincts and subsequent subdivision development. This rapid rate of growth will result in high quality assets which must be managed strategically to ensure that these do not reach end of life at the same time. Modelling of assets in conjunction with detailed service planning will enable Council to predict optimal expenditure patterns. This process is currently in place for road infrastructure and is listed as an improvement action for all other asset groups.

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Figure 2 – Asset Growth City of Melton 2015-2019

Maintenance of these assets will be necessary to ensure that current or future determined levels of service are maintained. Peak industry bodies such as IPWEA recommend that maintenance should be delivered at a value of 1-2% of asset replacement value. At a current maintenance delivery rate of approximately 0.5% Council invests less than is recommended however given customer satisfaction and feedback and a high percentage of newer assets this is deemed adequate at this point in time. As assets age Council may need to increase investment in planned, cyclic and reactive maintenance activities to ensure acceptable service levels are maintained. Strategic asset modelling across the asset classes will assist Council to manage this predicted increase and is included as an output in the improvement actions of this plan.

1.7 Asset Management Practices

Asset management systems, processes and plans are an essential element to assist organisations with their general management and long term planning of infrastructure assets. Section 7 of this plan outlines the nature of current practices for AM decision making and details an improvement program to enhance them in order to provide ongoing improvement to management of the Council’s assets.

1.8 Monitoring & Improvement

Through development of the asset management plan numerous improvement actions have been identified to drive management of Councils assets forward to a more advanced level. These are shown at table 8 of this plan and are also included in the Asset Management Strategy (AMS). The AMS provides direction for Council moving forward and has been derived in conjunction with this plan. Completion and adoption of the asset management policy, strategy and plan will assist Council to meet core maturity under the MAV step program and will form a solid foundation on which to move toward more advanced asset practices in keeping with Councils stated goals and directions.

2015 2016 2017 2018 2019 Annual Depreciation Approx $60,187,505.10 $65,439,620.75 $70,256,060.30 $71,367,245.50 $76,716,105.90

Replacement Value $1,203,750,102.00 $1,308,792,415.00 $1,405,121,206.00 $1,427,344,910.00 $1,534,322,118.00

Written Down Value $541,344,093.00 $578,827,309.84 $617,380,443.18 $584,463,713.97 $637,084,257.10

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

Ass

et V

alue

Asset Growth, Replacement Value (RV), Written Down Value (WDV),

and Estimated Annual Depreciation 2015-2019

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2.0 Introduction

The City of Melton is one the fastest growing municipalities in Australia, offering urban and rural lifestyles within a comfortable commuting distance from Melbourne, Victoria. The City embraces a series of townships and communities, the larger centres being Caroline Springs and Melton. Caroline Springs is 19 kilometres west of Melbourne’s Central Business District, whilst Melton is 35 kilometres west of Melbourne’s CBD and 15 minutes west of the Western Ring Road.

Other communities are Atherstone, Brookfield, Burnside, Burnside Heights, Diggers Rest, Exford, Eynesbury, Hillside, Kurunjang, Melton, Melton South, Melton West, Mount Cottrell, Parwan, Plumpton, Ravenhall, Rockbank, Taylors Hill, Toolern Vale, Truganina and Waterford.

Figure 3: Ward Locality Map

Figure 3: Ward Locality Map

The City is bounded by Moorabool Shire to the West, Macedon Ranges Shire to the north, the Cities of Hume and Brimbank to the east and Wyndham City to the south. The population of Melton City has increased significantly in the past twenty years and predictions are that this will continue. The current population of the City is 128,000 and this figure is expected to increase to 241,000 people with an addition 40,000 dwellings by 2031. This represents an annual growth rate of 4.3%1

Figure 4: The Estimated Resident Population is the official City of Melton population 2014-2031.

1 forecast.id – www.forecast2id.com.au 2013

Predicted Population Year End 30 June 2014

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At time of writing Council has in place 6 Precinct Structure Plans (PSP). The PSP is a long term plan for urban development. It describes how the land is to be developed and how and where services are planned to support development. The PSP is informed by State Planning frameworks, Local Planning Frameworks and other strategies dependant on locality of the precinct and subsequent affect of development on the environment in which it is to be developed. Table 2, outlines the six approved precinct structure plans (PSP) in place for the city of Melton as at 1 July 2014.

PSP Description Population

Growth

Households

Melton

North

This precinct is located at the northern edge of the Melton township. The PSP

encompasses a range of networks for this area including transport, open space, active

recreation, social infrastructure and an activity centre. 2

4000

15 Dwellings

per Net Dev Ha

Toolern Located to the south east of the Melton township the Toolern Town Centre will be the

community heart of this PSP. Development will occur over a number of decades

evolving from a local hub in its first decade to a regional centre in the long term. It will

provide a range of regional and local employment, civic, retail, education, medical,

residential, recreation and entertainment uses which will draw upon sustained

investment from both the public and private sectors.3

55000

24,000

Toolern

Park

The Toolern Park PSP sits within the wider context of the approved Toolern PSP and will

function as a neighbourhood of Toolern/Melton South. A significant portion of the

Toolern Park Precinct falls within the boundary of the future Toolern Creek Regional

Park. Open space plays a major role in the definition of the precincts character.4

Included in Toolern Development

Rockbank

North

Located North of the Western Highway and bounded by Leakes Road to the west and

Reserve to the east. The PSP encompasses a range of networks for this area including

transport, open space, active recreation, social infrastructure and an activity centre.

Land use within the area is expected to generate employment opportunity.5

20,400

7,300

Taylors Hill

West

East of Melton this PSP is bounded by Beattys Rd to the North, a transmission

easement to the west and Taylors Rd to the South and Caroline Springs to the East.6

15 Dwellings

per Net Dev Ha

Diggers

Rest

Located to the west of the existing Diggers Rest township. The PSP encompasses a

range of networks for this area including transport, open space, active recreation,

social infrastructure and an activity centre. Land use within the area is expected to

generate employment opportunity of up to 1200 jobs. 7

11,300

4,040

Table 2: Precinct Structure Plans – Melton City Council.

Development within the PSP areas will see a significant increase in Councils assets including road and drainage infrastructure, buildings, parks and open space facilities. The efficient management of these

2 Melton North Precinct Structure Plan – www.gaa.vic.gov.au 3 Toolern Precinct Structure Plan- www.gaa.vic.gov.au 4 Toolern Park Precinct Structure Plan – www.gaa.vic.gov.au

5 Rockbank North Precinct Structure Plan – www.gaa.vic.gov.au 6 Taylors Hill West Precinct Structure Plan – www.gaa.vic.gov.au 7 Diggers Rest Precinct Structure Plan – www.gaa.vic.gov.au

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assets is vital in maintaining safe and reliable access for the community, which in turn meets the strategic priorities and goals of Council.

2.1 Goals and Objectives of Asset Management

Melton City Council exists to provide services to its community. Some of these services are provided through the delivery, acquisition and maintenance of infrastructure and other assets. Melton City Council acquires assets through contract arrangements, purchase, construction and by way of developer contribution. The assets deliver a level of service (LoS) to the community. In accordance with Melton City’s Asset Management Strategy our goal in managing assets is to meet the required level of service in the most cost effective manner for present and future consumers. The overall objective of Asset Management is:

“To ensure that infrastructure assets support services that are appropriate, accessible, responsive, timely and sustainable to the community, in accordance with responsible asset management that

will preserve the life of the asset and ensure that the community is receiving the best value for money from the Asset Management Program”.

2.2 Plan Framework

The asset management plan is a tactical plan that translates broad strategic goals and plans into specific goals and objectives relevant to a particular activity for the organisation. Specifically, it may be regarded as;

• A document for implementing infrastructure related strategies, which arise from the strategic planning process.

• A tool combining management, financial, engineering and technical practices to ensure the LoS required by customers is provided in the most economical manner to the community.

• Intended to protect the environmental and cultural values of the assets providing the service.

The plan is the medium by which Council articulates its management of assets to achieve the desired outcomes. The key elements of asset management are:

• Taking a life cycle approach; • Developing cost-effective management strategies for the long term; • Providing a defined level of service and monitoring performance; • 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 management practices.

The important elements of this AMP as per the International Infrastructure Management Manual (IIMM) and draft International Standard for Asset Management (ISO 55000) are:

• Asset databases, which is Councils corporate asset database;

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• Asset hierarchy structures; • Asset inspection regimes and processes; • Clearly articulated service level criteria for maintenance, renewal and upgrading; • Performance standards with respect to service levels; • Council specific activity guidelines for maintenance and renewal; • Fit for purpose asset data – such as condition, functionality and financial data; • Asset performance models -performance prediction knowledge– i.e. How do our assets

perform over time or deteriorate over time; • Financial Plan – documented costs of planning, acquisition, maintenance and renewal of

Council’s assets; • Fit for purpose asset management tools – software that is capable of storing, analysing and

optimising life cycle solutions and work programs; and • Effective and efficient maintenance practices for routine operational, maintenance and

renewal tactics.

Council has specifically adopted this AMP to better drive the management of its infrastructure by including the consideration of customer service, life cycle economy and risk management. The AMP attempts to appropriately balance these three drivers to provide optimal levels of service to the community whilst also ensuring that risk of future litigation is minimised.

2.2.1 Relationships with other plans

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. Figure 5 illustrates the relationship between core council documents and highlights how this AMP feeds into global documents, strategies and reporting processes.

Figure 5: The relationship of the AMP to other Council Documents and Reporting Processes

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This asset management plan is prepared under the direction of Melton City Council’s vision,

“A Proud Community Growing Together.”

Melton City Council’s assets represent a significant investment by the community and are vital to its health and wellbeing. Asset Management is a core Council function. Implementation of sound asset management principles and policy will contribute to the health, safety and economy of the community thereby enabling Council to meet is objectives as follows;

• Provide services to current and future generations; • Provide and maintain community infrastructure within the City; and • Encourage and support the economic and social development of the City. Key stakeholders in the preparation and implementation of this asset management plan are:

Stakeholder Role

Council Endorsement of the asset management policy, strategy and plans. Set high level direction through the development of asset management principles in the Strategic Resource Plan.

Senior

Management

Endorse development of asset management plans and provide the resources required to complete this task. Set high level priorities for asset management development in Council and raise the awareness of this function among Council staff and contractors. Support the implementation of actions resulting from this plan. Support for an asset management driven budget and Long Term Financial Plan (LTFP).

Engineering,

Operations,

Capital Works

Department,

Leisure and

Facilities,

Environmental

Services

Consolidating the asset register and ensuring the asset valuations are accurate. Development of supporting policies such as capitalisation and depreciation. Preparation of asset sustainability and financial reports incorporating assert depreciation incompliance with current Australian accounting standards. Provide local knowledge level detail on all infrastructure assets. They verify the size, location and condition of assets. They can describe the maintenance standards deployed and Councils’ ability to meet technical and customer levels of service.

External Parties ACEAM Consultants; Community.

Table 3: Asset Management Plan Stakeholders

As at July 2014 Melton City Council was responsible for assets with a known replacement value of $1,136,829,494.00. Assets are split across the following categories and include a variety of asset types. Asset types are detailed at sub-section 1-4 of this plan for road, drains, buildings and open space assets respectively.

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Asset type Replacement Value

Roads and Related Infrastructure $687,579,373

Drainage (Stormwater Infrastructure) $273,365,845

Buildings $140,826,892

Open Spaces $35,057,384

TOTAL $1,136,829,494 Table 4: Assets covered by this plan as at 1 July 2014

Figure 6: Distribution of Asset Classes covered by this plan as at 1 Jul 2014

Council’s Strategic Infrastructure Objective stated in the Asset Management Policy and Strategy is:

“Ensuring our fast growth is well planned and managed and Council’s

physical assets are well maintained.”

The goals defined to achieve the Strategic Objective are; • to proactively consult, plan, build, maintain and upgrade assets; • Advocate for a range of housing choices to offer lifestyle options; • Advocate for and further integrate and improve the transport network within the

municipality; and • Provide access to quality infrastructure and services.

2.3 Core and Advanced Asset Management

This document is prepared as a ‘core’ asset management plan in accordance with the International Infrastructure Management Manual8

8 IIMM 2011 Glossary xii

. It is prepared to meet minimum legislative and organisational

21%

74%

4% 1%

Distribution of Melton City Council Assets as at July 2014

Road Infrastructure

Drainage Infrastructure

Buildings

Open Space

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requirements for sustainable service delivery and long term financial planning and reporting. Core asset management relies primarily on the use of an asset register, maintenance management systems, top-down condition assessment, simple risk assessment and defined levels of service, in order to establish a long term cash flow projection.

Future revisions of this asset management plan will move towards ‘advanced’ asset management using a ‘bottom up’ approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels. In addition Council shall consider aligning asset practice with international standards based on benefit of doing so to the community and organisation.

3.0 Levels of Service (LoS)

Levels of Service (LoS) define assets performance targets (reliability, quantity, quality, responsiveness, safety, capacity, environmental impacts, comfort, cost/affordability and legislative compliance). Achievement and sustainability of services requires funding for routine and responsive maintenance and for timely renewal or replacement of the asset. Adequate financial resources ensure that the assets are appropriately managed and preserved.

Financial allocations that are set below the required service levels have a direct impact on community development and if prolonged will likely result in substantial needs for “catch up” expenditure which is most commonly imposed on ratepayers in the future. Additionally, deferred renewal results in increased and escalating reactive maintenance as aged assets deteriorate at increasing rates.

It is recognised that authorities cannot deliver everything, all the time. Indeed, in line with good practice and affordable service delivery, it may not be practical or cost-effective to deliver the same level of service across the entire asset portfolio all of the time or at the same time.

3.1 Customer Research and Expectation

Council’s customer research into infrastructure asset needs and satisfaction has included:

• Department of Planning and Community Development (DPCD) Community Satisfaction Survey;

• Annual community satisfaction survey undertaken by Council’s roads contractor; • Customer Service Centre enabling one on one contact (i.e. letters, phone calls) during normal

working hours; and • Department of Planning and Community Development - Annual collection and analysis of

Councils Asset Management Data • Each sub-section of this plan shall detail more specifically, customer research and

expectation in line with each category.

3.2 Legislative requirements

Melton City Council complies with several legislative and regulatory requirements prescribed for each asset group. These are detailed specifically in each sub-section of this plan. Collectively these documents direct Council to provide safe, relevant and responsive infrastructure assets which consider the needs, current and future, of our community.

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3.3 Asset Hierarchies

In accordance with the International Infrastructure Management Manual, Council acknowledges that the primary purpose of an asset hierarchy is to ensure that appropriate management, engineering standards and planning practices are applied to the asset based on its function. It also enables more efficient use of limited resources by allocating funding to those assets that are in greater need and the costs are better justified.

Melton City Council has documented hierarchies for each asset group, as shown in sub-section 1-4 of this plan. These are documented in the asset register and assets are grouped by age, condition and response data as well as risk. This enables council to model various funding scenarios which supports community enquiry, grant lobbying, capital works and maintenance programming. The use of a hierarchy structure prevents inefficient allocation of resources, user expectations may vary and the maintenance of these assets made more difficult. In the case of some assets it has been difficult to apply detailed hierarchies as data is limited. Data improvement and review of hierarchy, condition and useful lives is noted as an improvement action at section 8 of this plan.

3.4 Current Levels of Service

Melton City Council has defined service levels in three terms:

3.4.1 Community Levels of Service

The community levels of service relates to how the community perceives the service in terms of safety, quality, quantity, reliability, responsiveness, cost / efficiency and legislative compliance. Council has conducted or obtained some survey data which is detailed in each part of this plan. The level of enquiry conducted by Council with regard to some of the asset groups will be improved over time as Council moves from Core to Advanced Asset Practices. Opportunities for improved data collection pertaining to community satisfaction are noted at Section 8. Detailed community surveys shall be noted in each sub-section of this plan where such results are available.

3.4.2 Strategic Levels of Service

Strategic levels of service communicate the philosophies of Council in relations to the management of the asset network. Melton City Council’s strategic levels of service that have been adopted as a result of this AMP are documented specifically in each sub-section.

3.4.3 Technical Levels of Service

Council regards technical levels as activities (i.e. works/tasks to address maintenance faults which occur during the assets lifecycle) which are delivered on a day to day basis to ensure that the assets maintain their predicted lifecycle path and that the community levels of service are met. Technical LoS identify;

• The tasks or work expected to be delivered i.e. repair pothole, paint rooms, clean drain: • The schedule of inspections to be undertaken of specified matters at specified intervals; • The priority with regards to rectification assigned to each intervention level; • The type of action that will be carried out against each intervention level; and • Provision as far as practicable for works that result from events such as emergencies and

natural disasters.

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3.5 Desired Levels of Service

At present indications of desired levels of service are obtained from various sources including feedback from the community into the Council Planning process, resident’s feedback to Councillors and customer service requests. Future iterations of this AMP will analyse and quantify the desired levels of service.

4.0 Future Demand

4.1 Demand Drivers

Council’s fundamental role is to provide services to the community and its assets are a means to support this. Consequently, future demand on these assets is tied to the demand for Council’s services and this combined with extensive population growth presents complex scenarios for consideration.

Asset management plans are critically driven by the needs of the services to be delivered and therefore meaningful asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining Council’s assets without adequate regard for service needs may result in a well-maintained portfolio of assets, but it may also result in an asset portfolio which does not meet the needs the community.

At present Councils Service Planning has only been completed at the highest level. Council should undertake to develop more detailed service planning which considers community feedback, lifecycle cost of assets and asset viability in relation to desired service offerings. The outcomes of these plans may be used to update asset hierarchy and in turn inform detailed asset models into the future. This activity is listed as an improvement action at section 8 (G.1) of this plan.

4.2 Demand forecast

Councils’ mission is to “support the growth, wellbeing and aspirations of our community through leadership, excellence and inclusion”.9

Through stakeholder research and consultation Council has established four strategic themes. These provide focus for future investment, enable connection with the community, support transparent and accountable management and provide a strategically planned place to work, live and play. The four themes are;

This mission is to be considered in conjunction with Councils strategic themes and their supporting objectives when developing ‘bottom up’ asset management practices.

• Managing our growth; • A well governed and leading organisation; • Diverse, confident and inclusive communities; and • Community health and wellbeing.

9 Melton City Council – Council Plan 2013-2017

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Section two of this plan outlines the Precinct Structure Plans in place and highlights future growth throughout the city of Melton. The PSP documents detail services or projects required to be implemented to support this growth. These combined with management of the existing asset base and growth factors are to be considered as part of Councils strategic asset practices.

Perhaps the biggest influence on assets within the City of Melton is the expected rate of development and population increase. Recent Census Population figures for the City illustrate an annual population growth rate of approximately 4.45%, with an addition of approximately 40,000 dwellings (2011 – 2031)10

In line with our service centric approach, future services will be driven by demand and utilisation. The current demographic profiles are represented at Figure 7.

and an eventual build out of 400,000 people in 2050.

Figure 7: Forecast age structure males and females 2013, 2021 and 2031

Demand factor trends for each asset group are further summarised at sub-sections 1-4 of this plan.

When considering capital and maintenance works, the demand drivers include:

• Rapid asset growth; • Increased age of these assets; • Increased community expectation of accountability of asset maintenance; • Increased community expectation of, for example, quality of road network: • Improved surfacing - gravelled to seal or asphalt; • Inclusion of both on-road bikeways and off-road pathways; • Adequate footpath networks between schools, aged facilities and community hubs; • Remaining useful life of existing infrastructure; • Early failure of some donated assets; and • Increased costs associated with working in more congested traffic and • As a result of supply / purchase of materials and labour.

10 http://forecast2.id.com.au/Default.aspx?id=116&pg=5520

0

20000

40000

60000

80000

100000

120000

140000

160000

Age 0-4 Years Age 5-19 Years

Age 20-64 Yrs Age 65-84 Yrs Age 85+

2013

2021

2031

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4.3 Changes in technology

Council is continuously monitoring new asset treatments or changes within the industry that may be available to be adopted or implemented to increase the life of its assets. Technology changes that could affect the delivery of services covered by this AMP are included in each sub-section of this plan.

4.4 Demand Management Plan

Demand for new assets and services across Council will be met through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand. Opportunities identified to date for demand management at each sub-section of this plan.

4.5 Asset Programs to Meet Demand

Asset growth across Council results from;

• Precinct Structure Plans; • Sub-divisional Growth; • Capital Planning and Works

4.5.1 New Assets from Precinct Structure Plans & Sub-divisional Growth

Table 2, at section 2 of this plan lists PSPs currently under development or commencing within the City. In a growth area such as MCC this accounts for the majority of new assets required to service community need. Council is integral to the planning of the assets to deliver community service, actively working with state bodies to plan and implement these. The effect of sub-divisional growth will be noted in each sub-section of this plan.

4.5.2 Capital Program

As stated in this plan, MCC will experience substantial growth within the next 18 years. In addition to works scheduled as part of PSPs and associated Sub-divisional growth Council will be required to invest in infrastructure improvements to link the community and continue to deliver satisfactory LoS to its customers. To this end Council plans capital infrastructure programs in line with community growth, desired LoS and budgetary constraint. The annual Capital Works Program is made public each year and is published with the Annual Report. The annual capital works program for 2014-2015 is attached at Appendix 1. These assets will be funded through Council Revenue, PSP Contribution and Grants funding. In addition to annual programming Long Term Planning takes place and is considered as part of Councils Long Term Financial Plan. Capital development for each asset group is noted in sub-section 1-4 of this plan respectively.

4.5.3 Estimated Valuations and Maintenance

Council presently owns and is responsible for road and drainage infrastructure as well as, building and open space assets that value in the vicinity of $1.1 billion. Based on planning forecasts this will increase to an estimated $1.5 billion by 2019, an estimated increase in assets (included in this plan) of 50%. Figure 8 illustrates increased asset growth between 2013 and 2019.

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Figure 8– New Assets from Growth 2014-2019 including Average Asset Growth from Subdivisions, and PSP Development

Acquiring these new assets will commit Council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required as illustrated at Figure 9 below. Section 5 of this plan, Lifecycle Management Plan, details estimated operating and maintenance costs based on current LoS.

2015 2016 2017 2018 2019

Road Additions $69,322,292 $65,629,344 $62,961,695 $62,961,695 $62,961,695

Drainage Additions $24,867,718 $13,934,895 $10,133,548 $2,095,272 $13,301,626

Building Additions $16,754,527 $14,778,074 $11,933,548 $3,298,000 $10,100,365

Open Space Additions $11,300,000 $11,300,000 $11,300,000 $11,300,000 $11,300,000

Accumulated Asset Stock $1,203,150,102 $1,308,792,415 $1,347,689,943 $1,436,658,432 $1,550,995,942

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000 Es

timat

ed A

sset

Gro

wth

Predicted Asset Growth City Of Melton 2015-2019

2015 2016 2017 2018 2019

Predicted Replacement Value of Assets 1,203,150,102 1,308,792,415 1,405,121,206 1,427,344,910 1,534,322,118

Recommended Maintenance Expenditure (IPWEA) 1.5% 18,047,252 19,631,886 21,076,818 21,410,174 23,014,832

Current Maintenance Expenditure 17,194,805

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

Asse

t Val

ue a

nd E

xpen

ditu

re

Asset Value and Recommend and Current Maintenance Expenditure

Figure 9 – Asset Growth and Predicted Maintenance Expenditure 2015-2019

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5.0 Lifecycle Management Plan

The process of lifecycle asset management includes all management options and strategies as part of the asset lifecycle, from planning to disposal. The objective of managing the assets in this manner is to look at long-term cost impacts (or savings) when making asset management decisions. The diagram below provides a graphical representation of the asset lifecycle including each of the stages an asset passes through during its life.

Figure 10 – Asset Lifecycle Diagram

The lifecycle management plan details how Council plans to manage and operate the assets at the agreed LoS while optimising life cycle costs and is an essential component of this AMP. Detailed asset data and the processes required to effectively manage, maintain, renew and upgrade these is provided in the sub-sections attached to this plan.

It must be noted that as Councils Asset Management System matures work is being undertaken to incorporate all of Councils Infrastructure Assets (Roads, Buildings, Parks and Open Spaces and Drainage) and that at time of writing some of this information is not yet available. Council seeks to undertake continual improvement to this process and accordingly will update the Asset Management Plans as the data becomes available. This improvement action list for all asset groups is shown at Section 8 of this plan. Not with standing, the methodology applied to completed asset classes is to be applied across all asset classes and in this instance council demonstrates robust analytical and review systems.

5.1 Background Data

5.1.1 Physical parameters

The assets covered by this asset management plan and its sub-sections include;

• Sealed Roads; • Unsealed Roads;

Identify Asset Need

Plan

Construct / Acquire

Operate / Maintain

Monitor & Review Need

Disposal

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• Footpaths and Shared Paths;

• Kerb and Channel;

• Bridges and Major Culverts;

• Traffic Control Devices;

• Signage;

• Car parks;

• Public Lighting;

• Street Furniture;

• Pipes and Minor Culverts;

• Pits and Nodes;

• GPTs;

• Sump Pits;

• Open Channels;

• Retarding Basins;

• Sedimentation Ponds;

• Water Sensitive Urban Design;

• Buildings;

• Pergolas and Rotundas;

• Play structures;

• BBQ’s;

• Sports Courts and Pitches;

• Fencing;

5.1.2 Asset Condition, Valuation and Sustainability

Each sub-section of this AMP will detail asset condition, values and sustainability ratios for each category.

5.2 Risk Management

An assessment of risk associated with service delivery from infrastructure assets has identified critical risks to Melton City Council. The risk assessment process identifies;

• credible risks;

• the likelihood of the risk event occurring;

• the consequences should the event occur;

• develops a risk rating;

• evaluates the risk; and

• development of a risk treatment plan for non-acceptable risks.

Council is yet to develop a risk register with regards to infrastructure, building and open space assets. As data improves and processes mature it is anticipated that the register will be developed. This activity is a priority activity as noted at Section 8 of this plan. Service Planning will assist in development of such a document as risk and consequence associated with service delivery or failure to deliver services shall be articulated through this process.

5.3 Routine Maintenance

Sub - sections 1-4 of this plan detail routine maintenance activities and expenditure.

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6.0 Financial Summary

Sub-sections 1-4 summarise the financial requirements and funding strategies resulting from all the information presented in the previous sections of this asset management plan. The financial projections will be improved as further information becomes available on desired levels of service and current and projected future asset performance.

6.1 Funding Strategy Projected expenditure identified throughout this plan are to be funded from Council’s operating and capital budgets, loans and reserves, Federal and State Government grants. The funding strategy is detailed in Melton City Council’s strategic resource plan, which is also referred to in the Council Plan 2013-2018. Council’s long term Strategic Resource Plan provides for a minimum of one third of Rate Revenue to be directed to the Capital Program over the next 10 years. The strategy is supported by Councils Long Term Financial Plan (LTFP).

The Melton City Councils 10 year long term financial plan is a dynamic document in that it is reviewed and refined on a continual basis, to reflect as accurate as possible changes in financial circumstances. The base point used for the modelling is the annual budget as at 30 June 2014 and the current projected growth factors as identified in this AMP to account for additional income and costs from expected population growth. Council’s objective of its 10 year long term financial plan is to achieve as a minimum, a break even operating position. The Council Plan and Strategic Resource Plan are available from Council’s offices or via the web. Funding for development, renewal and maintenance of Councils assets is detailed below.

6.2.1 General Rate Revenue

Funding required for the maintenance, renewal, upgrade and construction of the road and associated road infrastructure network is heavily reliant on Council’s rate revenue as the main source of funds and as such, competes with other Council projects and programs on an annual basis for funds, such as building, open spaces and stormwater drainage works.

6.1.2 Federal Governments Roads to Recovery

The Roads to Recovery Act became law on 21 December 2000. The first round of funding was provided in March 2001. The programmes intention is to address the funding gap associated with local government road infrastructure in Australia reaching the end of its useful life and its replacement cost being beyond the capacity of councils to fund.

The Roads to Recovery programme operates fairly uniformly across Australia. Each council is guaranteed a share of the total available funds. It is enshrined in legislation. Money is paid directly from the Australian Government to each council under simple administrative procedures whereby funding decisions are made locally and reported to the Government.

The Federal Government has announced it will extend the Roads to Recovery Programme for an additional four years, under expanded guidelines until 30 June19. Details of the amount of funding and the formula used to calculate the funding per each Council across Australia is available from the Roads to Recovery website.

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6.1.3 Grants Commission - Financial Assistance Grant

Commonwealth funding is distributed under the Local Government (Financial Assistance) Act 1995 which aims to provide financial assistance to improve financial capacity, equitable level of services, certainty of funding and efficiency and effectiveness of local governing bodies. These are spread across all Councils based on ensuring several key principles, e.g. ability of Councils to function at a standard not lower than the average standard of other Councils.

6.1.4 Developer Contribution Funding (DCP).

DCP funding refers to the payment of levies from developers to ensure that the infrastructure specified in the PSPs is funded to enable Council to deliver specified works, service and facilities to be used by the community. The DCP prepared in accordance with the requirements of part 3B of The Planning and Environment Act 1987 (the Act). Levies are charged in accordance with s46J of the Act.

6.2 Valuation Forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Melton City Council and from assets constructed by land developers and others and donated to Melton City Council. Figure 11 illustrates that Councils asset portfolio will increase by approximately 50% to $1.5 billion from a forecast base of $1.1 billion 2014. Based on current averaged depreciation rate of 5% annually asset depreciation will increase proportionally.

Figure 11: Value of Predicted Council Assets, Written Down Value and Annual Depreciation 2013-2018.

Carrying amount of the assets (Written Down Value) will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets. Forecast of the asset’s carrying amount is shown in the above table.

2015 2016 2017 2018 2019 Annual Depreciation Approx $60,187,505.10 $65,439,620.75 $70,256,060.30 $71,367,245.50 $76,716,105.90

Replacement Value $1,203,750,102.00 $1,308,792,415.00 $1,405,121,206.00 $1,427,344,910.00 $1,534,322,118.00

Written Down Value $541,344,093.00 $578,827,309.84 $617,380,443.18 $584,463,713.97 $637,084,257.10

$0

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Ass

et V

alue

Asset Growth, Replacement Value (RV), Written Down Value (WDV), and Estimated Annual Depreciation 2015-2019

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6.3 Key assumptions made in financial forecasts

This section details the key assumptions made in presenting the information contained in the asset management plan and in preparing forecasts of required operating and capital expenditure and asset value, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this infrastructure and asset management plan are:

• The current levels of service will remain constant over the life of this AMP.

• The treatment and maintenance costs are based on Council’s current schedule of rates and may not directly compare to Councils internal service provision actual costs.

• All predicted financial figures are based on 2014/2015 rates and are not adjusted by the inflation rate for the particular year of works.

• The projected population growth will be in line with that documented in Section 4.

• The projected asset stock will be in line with that documented in Section 4.

It is envisaged that accuracy of these future financial forecast will be improved in future revisions of this asset management plan by the following actions:

• Further refinement and improvement of the prediction modelling life-cycle paths and decisions; and

• Refinement of the levels of service currently being delivered via consultation with the community.

• The levels of service currently being delivered via consultation with the community.

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A Proud Community Growing Together

ASSET MANAGEMENT PLAN

Section 1: Roads Asset Management Plan

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R1.0 Introduction The Road Asset Management Plan (RAMP) comprises sub-section 1 of the AMP. This sub-section includes reference to all of Councils roads and road related assets including roads (sealed and unsealed), kerb and channel, footpaths, Traffic Control Devices, bridges, car parks, signage, street furniture and street lighting. The Custodian of the RAMP is the Engineering Services Manager. Officers responsible for implementation and improvements associated with this sub-section of Councils Asset Plan are;

• Engineering Services Manager • Operations Manager • Asset Management Coordinator • Civil Operations Coordinator

As identified at section 2.4 of the Asset Management Plan (AMP), this document comprises data consistent with achievement of core asset management principles and seeks to identify action for improvement into the future.

R1.1 Background

Melton City Council’s (MCC) road infrastructure represents a significant investment by the community and is vital to its health and wellbeing. Stewardship of civil road related infrastructure is a core Council function. The RAMP is written to demonstrate responsive management of assets, service provided from assets, compliance with regulatory requirements, and to communicate strategies to the community.

This revision of the RAMP coincides with Councils activities to achieve ‘Core Maturity’ under the National Asset Management Assessment Frameworks (NAMAF). The fundamental purpose of this document is to improve Council’s long-term strategic management of its road related infrastructure assets in order to cater for the community’s desired levels of service in the future, in accordance with Council’s key strategic documents, Asset Management Policy, Strategy, Councils Road Management Plan and the Council Plan should be read in association with these documents.

This RAMP, for the purpose of assets within road reserves, also uses the legal elements of various codes of practice in relation to the Road Management Act 2004 and establishes inspection guidelines and protocols in relation to these mandatory codes. The relationship between this RAMP and the Road Management Act 2004 is therefore essentially the setting of frame-works that will become Council’s statutory defence guidelines, work practices and co-operative arrangements with other authorities where infrastructure forms part of, or falls within the road reserve.

In relation to civil liability, Council acknowledges that the general thrust of the Road Management Act 2004 is to provide greater certainty and consistency in regard to civil liability for road management. Therefore, this RAMP has set out frameworks for inspection, maintenance and repair of drainages roads and related infrastructure and has established reasonable standards of performance. It is therefore considered that Melton City Council has been ‘reasonable’ in its duty of care.

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R1.2 Road Asset Types In Melton City

At July 2014 Melton City Council is responsible for road related infrastructure assets with an assessed replacement value of $687,579,373.

Asset type Length / No. Unit Replacement value

Roads Sealed 854 (km) $417,015,051

Roads Unsealed 150 (km) $10,775,505

Paths 967 (km) $101,906,960

Kerb 1367 (km) $77,190,321

Signage 13916 (no) $4,191,123

Traffic Control Devices 6748 (no) $54,968,564

Signals* 10 (no) $166,343

Bridges and Major Culverts 135 (no) $15,031,269

Car parks 84 (no) $5,315,061

Road Furniture & Ancillary * 1787 (no) $640,369

Public Lighting*(Non Std- Roads)*

26 (no) $378,807

TOTAL $687,579,373

Table R1: Assets covered by this plan as at 1 Jul 2014

Figure R1: Distribution of Asset Classes covered by this plan as at 1Jul 2014

R 1.2.1 Council’s Roads

Council owns and manages the majority of the road network across the municipality. In accordance with the requirements of the Road Management Act (2004) Council publishes annually a register of roads for which they are responsible for. As a general rule of thumb this includes a variety of road types that are not declared main roads.

Distribution of Road Related Infrastructure Assets at at 2014

Sealed Roads

Unsealed Roads

Paths

Kerb

Signage

Traffic Control Devices

Signals

Bridges and Major Culverts

Car parks

Street furniture

Public Lighting

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In general declared main roads are highways or major collector roads and are the responsibility of Vic Roads.

R1.2.2 VicRoads Assets

VicRoads is the state administrator and manager for all declared arterial roads. In the City of Melton prominent roads or carriageways which are declared arterial roads include;

• Calder Freeway;

• High Street

• Melton Highway (Keilor-Melton Road);

• Western Highway including Deer Park By-Pass;

• Gap Road;

• Hopkins Road;

• Gisborne Melton Road;

• Federation Drive, High Street (between Melton Hwy and Centenary Ave);

• Coburns Road (between High Street and Western Highway);

• Vineyard Road;

• Diggers Rest Coimadai Road; and

• Robinsons Road (currently Boundary Rd to Deer Park Bypass)

R1.2.3 Other Roads

There are also some roads within the municipality owned and maintained by private or other government providers such as Parks Victoria. In addition there are private streetscapes and rural access roads for which body corporate and local landowners are responsible parties. These assets are not listed on the road register.

Assets associated with the roads may be looked after by various parties as identified above or in partnership by way of management agreements. In line with our strategic infrastructure objective to ensure that our fast growth is well planned and managed, and that physical assets are well maintained, Council will consult with external regulators to manage issues arising in areas where both Council and VicRoads hold assets.

R2.0 Asset Condition

R2.1 Condition Assessment

Council engages the services of an external contractor to capture and assess condition of Roads in accordance with Council’s condition assessment methodology documented in ‘Strategic Transportation Asset Management Business Process Manual – 2010’. The contractor uses digital data capture and imaging by way of survey vehicle and quad bikes. The data is provided to Council in short intervals which enables viewing of the asset in segment. This method is applied for roads, kerbs and footpaths only. All other road assets have condition ratings applied based on remaining useful life or service potential.

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Figure R2 – Asset Condition Assessment Vehicles and Sample

Council’s overall condition rating scale for road pavements, road wearing surfaces, unsealed roads, is shown below. This rating scale has been documented to provide the community with an objective measurement of these assets. Ranking from 0-6 implies that assets are in the following state.

Condition Rating

Descriptor Condition

0 New Asset A Brand New Asset

1 Excellent Condition Inspection in accordance with Council and Legislative Requirement and Only Cyclic Maintenance Required

2 Very Good Minor Maintenance Required in Addition to Cyclic Maintenance

3 Good Moderate Maintenance Required in Addition to Cyclic Maintenance

4 Average Significant Maintenance Required. Capital Renewal or upgrade may be required within the next 5 years

5 Poor Significant renewal/upgrade required within the following 2 years 6 Very Poor End of Life provides no service potential

Table R2 – Condition Scores for Rating Roads

3.0 Levels of Service

R3.1 Customer research and expectation

Council’s customer research into road infrastructure needs and satisfaction has included:

• Department of Planning and Community Development (DPCD) Community Satisfaction Survey;

• Annual survey undertaken by Councils roads contractor; • Customer Service Centre enabling one on one contact (i.e. letters, phone calls) during normal

working hours; and • Department of Planning and Community Development - Annual collection and analysis of

Councils Asset Management Data

R3.1.1 DPCD Community Satisfaction Survey

MCC participates in regular benchmarking and survey activities in order to understand how we, as a Council perform in comparison to our peer group. In the 2013 Community Satisfaction Survey,

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conducted by the DPCD, Melton City recorded an overall performance index score of 5911

R3.1.2 Annual Customer Satisfaction Survey- Road Assets

. This score is consistent with the state-wide average of 60. Performance measures included Customer Service, Community Consultation and Engagement, Advocacy and Overall Council Direction.

Melton City Council’s customer satisfaction survey is a written questionnaire, and surveys a sample of residents on their level of satisfaction with Melton City Council’s services. In addition to local government and other surveys Council tracks work orders. Work orders arise for planned maintenance as well as from inspection and Customer Actions Requests (CAR). Survey results from this data are shown at Figure R3.

Figure R3: Work Orders Resulting from Customer Action Requests and Routine

Inspections July 2011- June 2014

11 Community Satisfaction Survey – Melton City Council Annual Report 2014

0

100

200

300

400

500

600

Qua

ntity

Area of Service

Customer Action Requests - Road Maintenance 2012-2014

2012

2013

2014

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Figure R4: Distribution of Work Orders from Customer Action Requests and Routine Inspections Jul 20

R3.2 Legislative requirements

Melton City Council complies with the following legislative and regulatory requirements. It should be noted that these, in addition to design specifications and standards form the minimum levels of service for Councils Roads and associated infrastructure.

Legislation Requirement

Road Management Act 2004 and associated Regulations and Codes of Practice

Purpose is to establish a coordinated management system for public roads that will promote safe and efficient State and local public road networks and the responsible use of road reserves for other legitimate purposes, such as the provision of utility services. Defines the responsible authorities for all roads within the state. It makes Council the controlling authority for Public Local Roads, Boundary Roads and parts of Declared Roads within the municipal area and it is therefore responsible for managing the infrastructure assets within them.

Local Government Act 1989 Sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by asset management plans for sustainable service delivery.

Transport Act 1983 Sets up structure for the provision and regulation of public and commercial transport.

Road Safety Act 1986 Safety requirements relating to the use and operation of the road network.

Road Safety Regulations 2009

Sets out regulations for implementing the Road Safety Act.

National Asset Management Framework Legislation 2010

Focuses on long term financial sustainability and provides a mandate to have long term strategy, financial statements and annual reporting mechanisms. AM plans are likely to be audited.

Occupational Health and Safety Act 2004

Aims to secure the health, safety and welfare of people at work. It lays down general requirements which must be met at places of work in Victoria. The provisions of the Act cover every place of work in Victoria. The Act covers self employed people as well as employees, employers, students, contractors and other visitors.

Occupational Health and Safety Regulations 2007

Outlines minimum actions to be taken to comply with OH&S Act. It explains plant such as Lifts, boilers maintenance, inspection and testing and WorkCover registration requirements.

15%

29%

2%

29%

2%

23%

Distribution of Work Orders Jul 2011 - Jul 2014

Roads

Footpaths

Kerb & Channel

Street Furniture & Signs

Bridges & Footbridges

Other

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Disability Discrimination Act 1992

Sets out the responsibilities of Council and staff in dealing with access and use of public infrastructure.

Planning and Environment Act 1987

Sets of legislative requirements for planning and environmental concerns in new and upgrades areas. Allows for impact of asset construction and growth and sets parameters to trigger council activities/actions.

Melton City Council Local Law, such as the Asset Protection and Footpath Trading.

Various local laws exist to protect the well-being of the community, the amenity of local neighbourhoods and the environment. Local laws guide communities on appropriate behaviour and actions, and they outline legally enforceable standards for issues such as:

• Protection of our built and natural environment; • Behaviour in public spaces; • Neighbourhood nuisances; • Safety Concerns; and • Health matters.

Table R3: Legislation affecting Melton City Councils RAMP

Collectively these documents direct Council to provide safe, relevant and responsive infrastructure assets which consider the needs, current and future, of our community.

R3.3 Road Hierarchies

Melton City Council has documented a road asset hierarchy that classifies the network into groups based on the current road hierarchy as documented in Council’s Road Asset Management Plan and applied to both sealed and unsealed roads.

Road Hierarchy Description

Class 1 Trunk Collector Roads – Kerbed local roads with at least 5000 vehicles per day or un kerbed local roads with at least 1000 vehicles per day

Class 2 Collector Roads – Kerb local roads with between 1000 – 4999 vehicles per day or un kerbed roads with 501-999 vehicles per day

Class 3 Access Streets – Kerbed roads with 500- 999 vehicles per day or un kerbed roads with 101- 499 vehicles per day.

Class 4 Access Places – kerbed roads with less than 500 vehicles per day or un kerbed roads with less than 100 vehicles per day

Table R4 Road Hierarchy

R3.4 Current Levels of Service

Melton City Council has defined service levels in three terms:

R3.4.1 Community Levels of Service

The community levels of service relates to how the community perceives the service in terms of safety, quality, quantity, reliability, responsiveness, cost / efficiency and legislative compliance. The Customer Satisfaction Survey, conducted annually by the Road maintenance Contractor identifies that customers have a reasonable level of satisfaction with regard to road asset maintenance. Figure 5 represents community response to the survey for the past 5 years.

The survey results demonstrate that in 2008 customer satisfaction levels were relatively high and some decrease in these was noted throughout 2009-2011. 2012 saw a rise in most categories following review of services and renewal of the roads maintenance contract. Council consider these survey results when considering asset improvement through capital works programs. The current

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and upcoming programs, for example, include an accelerated sealing program aimed to tackle customer satisfaction on unsealed roads across the municipality.

Figure R5: Customer Satisfaction (Road Survey) Results 2008-2014

R3.4.2 Strategic Levels of Service

Strategic levels of service communicate the philosophies of Council in relations to the management of the road and related infrastructure network. Melton City Council’s strategic levels of service that have been or are recommended for adoption as a result of this RAMP are documented in the following table.

Key Performance Measure

Level of Service Performance Measure Process

Performance Target

Current Performance

STRATEGIC LEVELS OF SERVICE ( LoS)

Quality Well maintained and suitable road related infrastructure assets

No. of customer incidents relating to road maintenance

< 50 per annum 17

Function Road Related Assets meet community needs

Community Satisfaction Survey

>50% of survey respondents are satisfied with Councils service vs dissatisfied

53%

Function Sealed Road and Shoulder Repairs perceived to meet community needs

Roads maintenance services Annual Customer Satisfaction Survey

>50% of survey respondents are satisfied with Councils service vs dissatisfied

53%

0

10

20

30

40

50

60

70

80

90

Satis

fact

ion

Rat

ing

/100

%

Service Area

2008

2009

2011

2012

2010

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Function Road line marking perceived to meet community needs

Roads maintenance services Annual Customer Satisfaction Survey

>50% of survey respondents are satisfied with Councils service vs dissatisfied

53%

Function Kerb and Channel perceived to meet community need

Roads maintenance services Annual Customer Satisfaction Survey

>50% of survey respondents are satisfied with Councils service verses dissatisfied

53%

Function/Safety Unsealed road network grading and re-sheeting perceived to meet community needs

Roads maintenance services Annual Customer Satisfaction Survey

>50% of survey respondents are satisfied with Councils service vs dissatisfied

53%

Function /Safety Roadside signs and guideposts are perceived to be maintained

Roads maintenance services Annual Customer Satisfaction Survey

>50% of survey respondents are satisfied with Councils service vs dissatisfied

68.18%

Function/Safety Roadside Slashing perceived to meet community need

Roads maintenance services Annual Customer Satisfaction Survey

>50% of survey respondents are satisfied with Councils service vs dissatisfied

55.30%

Availability*Recommended Roads and bridges are available for public use all year round

No of road or bridge closures due to degraded asset condition

< 5 per annum Nil Current Data

Safety* Recommended Safe and reliable road network

No. of injuries attributable to road condition

< 10 claims of lose per annum

0

Safety* Recommended Safe and reliable footpath network

No. of customer incidents relating to footpath incidence

< 50 per annum 10

Responsiveness Response time to customer requests

Time taken to close requests

> 80% of all requests adequately responded to within target.

96.3

Quality Road Condition maintained to an acceptable level

KMs of Road (Hierarchy 1 &2) with an OCI greater than 5

< 5% of Councils road network

1.7%

Quality Bridge condition maintained to an acceptable level that lowers risk to users

No. of bridges with a BCN > 30

< 10% bridges TBC

Quality Footpath condition maintained to an acceptable level

KMs of Footpath with an OCI greater than 5

< 10% of footpath network

1.9%

Quality *Recommended

Well maintained unsealed road network

Compliance with contract requirement for roadside slashing

80% of all roads graded as per Council’s patrol grading program.

No Current Data

Table R5: Community Levels of Service- Current and Desired

Where strategic service levels have been recommended Council will need to evaluate benefit and assess how and who will collect such data. This activity is listed as an improvement action at section 8 (R.1) of the RAMPR3.4.3 Technical Levels of Service

Council regards technical levels of service as activities (i.e. works/tasks to address maintenance faults which occur during the assets lifecycle) which are delivered on a day to day basis to ensure that the assets maintain their predicted lifecycle path and that the community levels of service are met.

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Council has defined its technical levels of service through the following documents:

• Melton City Council Road Management Plan Version 4.0, May 2013 • Melton Shire Council roads maintenance contract, CONTRACT 11/004 – Provision of Road &

Drainage Maintenance Service. Full listings of the technical responses within the contract have been documented in Appendix 1.

These documents identify:

• The tasks or work expected to be delivered i.e. repair pothole; • The schedule of inspections to be undertaken of specified matters at specified intervals; • The priority with regards to rectification assigned to each intervention level; • The type of action that will be carried out against each intervention level; and • Provision as far as practicable for works that result from events such as emergencies and

natural disasters.

R3.5 Desired levels of Service

At present indications of desired levels of service are obtained from various sources including feedback from the community into the Council Planning process, resident’s feedback to Councillors and customer service requests. Future iterations of this RAMP will analyse and quantify the desired levels of service as noted at Section 8 (R.1) and an improvement action of this plan.

R4.0 Future Demand

R4.1 Demand Drivers

Councils’ mission is to “support the growth, wellbeing and aspirations of our community through leadership, excellence and inclusion”.12

Through stakeholder research and consultation Council has established four strategic themes. These provide focus for future investment, enable connection with the community, support transparent and accountable management and provide a strategically planned place to work, live and play. The four themes are;

This mission is to be considered in conjunction with Councils strategic themes and their supporting objectives when developing ‘bottom up’ asset management practices.

• Managing our growth; • A well governed and leading organisation; • Diverse, confident and inclusive communities; and • Community health and wellbeing.

In addition to these themes the results of available surveys and community consultative processes and organisational strategies are reviewed and included in funding and other strategies. This RAMP aims to capture and document processes which assist in meeting all of these considerations now and into the future.

12 Melton City Council – Council Plan 2013-2017

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The AMP outlines the PSPs in place and highlights future growth throughout the city of Melton. The PSP documents detail services or projects required to be implemented to support this growth. These combined with management of the existing asset base and growth factors are to be considered as part of Councils strategic asset practices.

Council’s fundamental role is to provide services to the community and its road related infrastructure assets are a means to support this. Consequently, future demand on assets are tied to the demand for Council’s services and this is a more complex consideration than population growth.

Asset management plans are critically driven by the needs of the services to be delivered and therefore meaningful road asset strategies cannot be developed in isolation or in absence of comprehensive service strategies.

R4.2 Demand Forecast

Perhaps the biggest influence on future road related assets within the City of Melton is the expected rate of development and population increase. Recent Census Population figures for the City illustrate an annual population growth rate of approximately 4.45%, with an addition of approximately 40,000 dwellings (2011 – 2031)13

Demand factor trends and impacts on service delivery are summarised in Table R6.

Demand Factor

Present position Projection Impact on services

Population 129194 estimated population 2014

241613 by 2031 (based on 4.45% growth from 2011 Census recorded population)

Population growth will be mostly supported by green-field development meaning a greater number of gifted assets to Council.

Demographics Mixed Population with majority between 20-64 years

No significant shift As more families move to the area, demand for safe off-road shared use pathways will increase. However Council will still be required to maintain a safe walking network to and from aged care facilities and between schools and community centres

Satellite developments

6 PSPs to be built which will see land between Caroline Springs and Melton developed as well as the establishment of a large hub in the Toolern precinct. Existing areas of Diggers Rest and Melton North will be expanded to the municipality borders.

Development between Caroline Springs and Melton and on the outskirts of the township.

Increase development across our region will result in additional vehicle movements on major Arterials and Collectors to and from towns/suburbs. These roads will need to be well planned and maintained to cope with the additional traffic volume.

Change in demographics and increased quality of life

Long standing families living in the area

More people moving into the district from other municipalities and overseas migration

Higher traffic volumes requiring increased Arterial roads and collector point. Substantial increase in all road related assets with development of the PSPs. High level of new assets being brought on board annually – proactive maintenance required to ensure that these are well maintained and that strategic practices are implemented to ensure effective life cycle management of the assets.

Table R6 - Demand Factors, Projections and Impact on Services

13 http://forecast2.id.com.au/Default.aspx?id=116&pg=5520

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This plan does not account for eventual build out of the City which is anticipated to be 400,000 people by 2050. Future iterations of this plan shall address addition growth in association with new PSP planning and development data.

R4.3Changes in Technology

Council is continuously monitoring new asset treatments or changes within the industry that may be available to adopt or implement to increase the life of its assets. Technology changes that could affect the delivery of services covered by this RAMP are documented below;

Technology Change

Effect on Service Delivery

Vehicle safety Improved vehicle design and quality will mean road condition will become less important as the vehicles will be able to accommodate minor shape loss / deformations better.

Bitumen quality Bitumen manufacturers are constantly developing new products to suit modern day applications to cope with increased traffic volumes, increased solar radiation and environmental cracking. These improvements may mean roads have a longer useful life and require less maintenance over their life.

Trenchless Technologies

By using trenchless methodologies, this will have a better impact on Council’s assets as the soundness of the road and footpath pavements is not compromised when installing new services within the road reserve.

Recycled Materials

By exploring the option of using recycled materials, this will have a dual impact in terms of reduction in green house gas emissions and reduction in initial asset construction costs, thereby enabling more assets to be renewed with the same allocation of annual funds.

Vehicle Construction

Reduced axle loading due to the use of lighter products in vehicle manufacturing may contribute to longer pavement life expectancy.

Table R7 - Changes in Technology and Forecast effect on Service Delivery

In time, Council will explore these options with regards to the overall impact on this RAMP and this activity is listed as an improvement action at Section 8 (R.2) of this plan

R4.4 Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Opportunities identified to date for demand management are shown in Table R8.

Service Activity Demand Management Plan

Roads Pursue a greater use of public transport to reduce the number of vehicles on the road. Engage with stakeholders to ensure developed arterial roads are at a required capacity to meet commuter needs.

Bridges Load limits – ensure heavy vehicles have a prescribed route in which to travel so that bridge augmentation is not duplicated.

Table R8 - Demand Management Plan Summary

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Clearly the demand on Council road related infrastructure is going to increase proportionally with the predicted population growth and predicted demographic changes however at this point Council is still developing formal demand management plans as more data on Councils Asset stock and demographics is collected. This will better enable Council to review the impacts and pressures of population growth on these assets. Council is formally addressing these requirements as part of longer term planning processes. Programs to meet known growth and requirement are detailed further below and at sections R5 of this plan.

R4.5 Asset Programs to Meet Demand

As noted above the demand for increased road related infrastructure will increase proportionally with predicted population growth. The following points discuss this growth.

R4.5.1 New Road Assets from Precinct Structure Plans & Sub divisional Growth

New road related infrastructure required for new developments is built by the developers and/or their contractors, in accordance with Council’s design standards and industry guidelines. Sub divisional plans and are submitted to and approved by Council. Council staff supervises the works to ensure compliance to Council’s specifications. When the works are completed the developer hands these assets over to Council for ownership and maintenance for the remainder of their useful life. However, a defect liability period of 3 months is applicable to all road related assets created by the developer.

In a growth area such as Melton City this accounts for the majority of new assets required to service community need. Council is integral to the planning of the assets to deliver community service, actively working with state bodies to plan and implement these. Table 2, at Section 2 of the AMP lists PSP areas currently under development or commencing within the City. A summary of the expected or anticipated value of the major road network associated with PSP development and associated sub divisions is shown at table R9.

GROWTH FROM PRECINCT STRUCTURE PLANNING

PSP Estimated Completion Date Annual Average Increase Total

Melton North 2015 $2,667,649.20 $8,002,947.00

Toolern 2028 $9,466,382.00 $141,995,730.00

Toolern Park 2028 $3,692,948.00 $3,692,948.00

Rockbank North 2026 $4,555,215.83 $59,217,805.00

Taylors Hill West 2020 $3,094,535.43 $24,756,283.00

Diggers Rest 2025 $5,963,677.40 $35,782,064.00

SUB TOTAL $272,910,754.00

ASSOCIATED SUB-DIVISION GROWTH

Annual Projected Subdivisional Growth

2014-2030 $39,881,885.00 $717,873,930.00

TOTAL $987,628,761.00

Table R9 – New Assets from Growth (PSP and Subdivision) - Estimated Core Road Infrastructure Network

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R4.5.2 Capital Program

As stated in this plan, MCC will experience substantial growth within the next 18 years. In addition to works scheduled as part of PSPs and associated Sub-divisional growth Council will be required to invest in infrastructure improvements to link the community and continue to deliver satisfactory LoS to it’s customers. To this end Council plans capital infrastructure programs in line with community growth, desired levels of service and budgetary constraint as outlined in the AMP.

R4.5.3 Estimated Valuations and Maintenance

Council presently owns and is responsible for maintenance of road related assets with a replacement value in the vicinity of $687m. Based on planning forecasts this will increase to an estimated $1 Billion by 2019 and dependant on PSP development beyond that in excess of $2 Billion by 2030, an estimated increase in road related assets of approximately 200%. For the purpose of this iteration of the plan, Figure R6 illustrates increased road related infrastructure asset growth between 2014 and 2019.

Figure R6 – New Assets from Growth 2014-2019 including Average Asset Growth from Subdivisions, and PSP Development

Acquiring these new assets will commit Council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. Section R5 of this plan, Lifecycle Management Plan, details estimated operating and maintenance costs based on current levels of service.

$-

$200,000,000.00

$400,000,000.00

$600,000,000.00

$800,000,000.00

$1,000,000,000.00

$1,200,000,000.00

2014 2015 2016 2017 2018 2019

Asset Growth from Development Road Infrastructure 2014-2019

PSP Development

Average Subdivision Growth

Accumulated Asset Stock

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R4.6 Road Infrastructure Design, Construction Standards & Specifications Council takes the following factors into consideration, when determining design and construction aspects for new road and road associated infrastructure and for roads and road related infrastructure which require renewal or upgrade works:

• Functional classification; • Traffic volume and type; • Percentage of trucks; • Bus routes; • Bicycle Lanes; and • Geometric design parameters to allow for the safe and functional movements of traffic.

Council utilises the following standards and guidelines for construction of new roads and associated road infrastructure and for the expansion, upgrading, renewal and maintenance of existing infrastructure:

• Melton City Council standard drawings; • Australian Standards including but not limited to; • AS 1742.10—2009 Manual of uniform traffic control devices Part 10: Pedestrian control and

protection • AS 1742 Parts 1 to 13 —2009 Manual of Uniform Traffic Control Devices • Australian bridge design standard 5100 Parts 1 to 7 • AS1170 Minimum design loads on structures (SAA Loading Code) • AS1684 National Timber Framing Code • AS3600 - Concrete structures • AS4100 - Steel structures • Vic Roads Supplements • Residential Code of Practice; • Aust Roads Standards and Guides such as Australian Bridge Design Code • Australian Asphalt Pavement Association Work Tips • Aus-Spec Specifications

R5.0 Lifecycle Management Plan

R5.1 Background Data

Section 5 of the AMP outlines the process of Lifecycle Management with regard to assets. The information presented in this section is generic only. More detailed information is shown at sub-section R4.7.1 above.

R5.1.1 Physical parameters

The assets covered by this RAMP include;

• Sealed Roads; • Unsealed Roads; • Footpaths and Shared Paths;

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• Kerb and Channel; • Bridges and Major Culverts; • Traffic Control Devices; • Signage: • Car parks; • Public Lighting; and • Street Furniture

As noted above Parts A – F of this plan provide more detail for life cycle management of each asset group covered by this plan including valuation, risk management, routine maintenance, and renewal, replacement, creation and upgrade planning.

R5.2 Renewal, Replacement, Creation and Upgrade Plan

Renewal expenditure is major work which does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original capacity. Work over and above restoring an asset to original capacity is upgrade/expansion or new works expenditure.

R5.2.1 Renewal plan

Assets requiring renewal are identified from the asset register. Candidate proposals are selected based on decision criteria that take into account various conditions which may affect the asset. This decision criteria for road surface renewals and road reconstruction is detailed below. Projects selected for capital renewal are ranked by priority and available funds and scheduled into future works programmes.

Control Hierarchy Structural / Coarse Condition

Treatment

Yes Class 1 or 2 > = 3.0 Road Renewal Yes Class 3 or 4 > = 4.0 Road Renewal

Table R10 – Road Renewal Criteria - Condition

Council’s priority renewal ranking criteria for road and road related assets is detailed in the following Table below.

Criteria Weighting

Perceived Risk Factor 40%

Road Capacity 30%

Historical Performance History (i.e. maintenance failures)

20%

Historical Customer Requests

10%

Total 100%

Table R11 – Road Renewal Priority Rankings

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R5.2.2 Creation / Upgrade Plan

New works are those works that create a new asset which did not previously exist. Upgrade works improve an existing asset beyond its existing original intended function and capacity. Currently, new assets and assets which require upgrade or expansion works are identified from various sources including Council’s PSP, traffic management counts, local Council staff knowledge with regards to capacity and functionality issues of existing assets, councillor or community requests and actions identified by strategic plans. The criteria that Melton City Council will propose to drive the future capital upgrade works for roads is shown at Table R12 and R13.

Control Hierarchy Structural / Coarse Condition

Treatment

Yes Class 1 or 2 > = 3.0 Road Upgrade Yes Class 3 or 4 > = 4.0 Road Upgrade

> 4.0 Road Upgrade Table R12 – Road Upgrade Criteria - Condition

Control Hierarchy Structural / Coarse Condition

Treatment

Yes Class 1 or 2 > = 5000 vehicles per day Consider Road Duplication Table R13 – Road Duplication Criteria - Condition

Projects selected for capital upgrade works will be ranked by priority and available funds and scheduled into Council’s 10 year capital works programmes. Council’s priority upgrade ranking criteria for roads and road related infrastructure assets is detailed in the following Table below.

Criteria Weighting

Functionality or Capacity Requirements 50%

Historical Customer Requests 20%

External Funding 30%

Total 100%

Table R14 – Road Upgrade Priority Rankings

R5.2.3Creation / Upgrade Renewal Standards

Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those documented above.

R5.3 Summary of future capital expenditure

Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

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• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

The projected capital expenditure for each asset subclass profile for 2014 –2019 is shown at parts A - F of this sub-section.

R6.0 Financial Summary

This sub-section summarises the financial requirements and funding strategies resulting from all the information presented in the previous sections of this asset management plan and from Parts A – F of the plan. The financial projections will be improved as further information becomes available on desired levels of service and current and projected future asset performance.

R6.1 Financial Statements and Projections

The financial projections are shown in the following bar graph for planned operating (operations and maintenance) and capital expenditure (renewal and upgrade / expansion / new assets) over the following 5 years. Figure R7 illustrates overall projected capital growth. Figure R7 illustrates current maintenance expenditure based on the existing road maintenance contract funding.

Figure R7: Known 5 Year Operating (Road Maintenance Contract) and Capital Expenditure

Road Related Infrastructure 2014-2019.

$-

$5,000,000.00

$10,000,000.00

$15,000,000.00

$20,000,000.00

$25,000,000.00

$30,000,000.00

2015 2016 2017 2018 2019

Capital expenditure

Maintenance Expenditure

57

Industry standards establish that typical maintenance expenditure is calculated at between 1-2% 14

Based on an increased expenditure of 1.5% of asset value the following table illustrates projected funding allocation required to maintain assets based on this recommendation. This projected allocation is compared against current allocations under the existing Roads Maintenance Contract. This contract expires in 2016 and as such is only illustrated until that time.

of asset replacement value. Figure R8 illustrates current expenditure under the Road Maintenance agreement and compares this to those recommendations (based on 1.5%).

Figure R8 Projected Maintenance Expenditure to meet industry standards for maintenance of assets 2014-2018

As shown above Melton City Council is currently allocating approximately 50% of industry recommended funding however it must also be noted that as a growth council many of the assets are relatively new when compared to more developed local government areas. Based on current data it is understood that overall the community is satisfied with current service levels achieved under the current maintenance agreement. In line with this statement the above table also illustrates predicted expenditure that will be required to maintain current service levels as the network expands.

14 International Infrastructure Management Manual Edition 2011

1 2 3 4 5 Current Maintenance Expenditure $3,438,987 $3,504,576 Industry Recommended

Maintenance Expenditure $6,875,794 $7,569,017 $8,225,310 $8,854,927 $9,484,544

Predicted expenditure based on Growth and Current Levels of

Service $3,438,987 $3,784,508 $4,112,655 $4,427,464 $4,742,272

YEAR 2015 2016 2017 2018 2019

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

Mai

nten

ance

Exp

endi

ture

Current and Projected Maintenance Expenditure Requirements 2014-2019

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Council will undertake a new community satisfaction survey in coming months. The results of this survey should be reviewed to validate community levels of satisfaction. Levels of service should be determined following consideration of those results in combination with the cost to the community and sustainability of such funding into the future. This activity is listed as an improvement action at section 8(R.1) of this plan.

R6.2 Valuation forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Melton City Council and from assets constructed by land developers and others and donated to Melton City Council. Figure R9 illustrates that Councils road related infrastructure asset portfolio will increase by approximately 40% to $971 million from a forecast base of $690 million in 2014. Based on current depreciation rate of 2% annually asset depreciation will increase proportionally.

Figure R9: Value of Predicted Road Related Infrastructure, Written Down Value and Annual Depreciation 2014-2018.

Carrying amount of the assets (Written Down Value) will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets. Forecast of the asset’s carrying amount is shown in the above table.

R6.3 Key assumptions made in financial forecasts

This sub-section details the key assumptions made in presenting the information contained in the asset management plan and in preparing forecasts of required operating and capital expenditure and asset value, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this infrastructure and asset management plan are:

• The current levels of service will remain constant over the life of this RAMP. • The treatment and maintenance costs are based on Council’s current schedule of rates and

may not directly compare to Councils internal service provision actual costs. • All predicted financial figures are based on 2013/14 rates and are not adjusted by the

inflation rate for the particular year of works.

2015 2016 2017 2018 2019 $-

$200,000,000.00

$400,000,000.00

$600,000,000.00

$800,000,000.00

$1,000,000,000.00

$1,200,000,000.00

Valuation Forecast Road Infrastructure

Replacement Value

Accumulated Depreciation

Written Down Value

Annual Depreciation

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• The projected population growth will be in line with that documented in Section 4. • The projected asset stock will be in line with that documented in Section 4.

It is envisaged that accuracy of these future financial forecast will be improved in future revisions of this asset management plan by the following actions:

• Further refinement and improvement of the prediction modelling life-cycle paths and decisions; and

• Refinement of the levels of service currently being delivered via consultation with the community. RO

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RA1 General – Roads The Road Asset Management Plan (RAMP) comprises sub-section 1 of the Councils Asset Management Plan. Part A of the RAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for the sealed and unsealed roads owned by the City of Melton. Assets covered at Part A represent approximately 60% of Councils Road Infrastructure Assets and includes the following;

Asset Subclass Description

Sealed Roads Urban and rural roads with a bitumen surface typically spray seal, asphalt or recycled bitumen or concrete

Unsealed Roads Mostly rural roads formed and surfaced with imported granular material. It should be noted that roads which have not been constructed by Council and private roads constructed by the property owner or other are not included in this RAMP.

Table RA1 – Asset Subclasses - Roads

RA2 Supporting Documents and Strategies Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Road Management Plan • Road Safety Strategy and Action Plan (Road 2 Zero) • Planning Scheme and Precinct Structure Plans

RA3 Capacity and Performance Melton City Council’s roads are generally provided to meet design standards where these are available. In general terms it is believed that the local road network is meeting capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipalities growth and expansion. Council has presently identified in its forward strategic sustainability planning that it will require $20.5m [1]

RA4 Condition Assessment

over the following five years to undertake upgrade, expansion and renewal works in addition to works to be undertaken by developers. Traffic counts are undertaken periodically to review need and performance.

Condition assessment of road assets is undertaken every 3 years as identified in the RAMP at paragraph 3. These assessments determine condition of road surface and road pavements as individual elements. On interrogation of the data these scores are combined to provide an overall condition score which applies to the engineering or structural condition of the asset.

[1] Data obtained from 10 Year Capital Works Program

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RA4.1 Current Condition

A summary of current pavement and surface condition index is shown below.

Figure RA1 – Asset Condition – Pavement and Road Surface

Condition scores for pavement and surface are combined to provide an overall condition index (OCI) which applies to the engineering or structural condition of the asset. Figure RA2 below illustrates that overall, the majority of Councils Roads are rated as ‘good’ or above.

Figure RA2 – Roads Condition Ratings

Council has established useful lives for its road related infrastructure assets. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to geology, use, maintenance, capital improvement or replacement. Useful life for roads assets has been determined as;

3%

84%

6% 5%

1% 1%

0%

Pavement Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

2%

24%

59%

10% 4%

1% 0%

Road Surface Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

0 1 2 3 4 5 6 Roads Overall Condition

Index - (KM) 11 812 153 29 6 2 0

0 200 400 600 800

1000

Kilo

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f Roa

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Roads Overall Condition Index - (KM)

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Table RA4 – Asset Sustainability - Roads

Asset Class Material Useful Life (Years) Residual Value

Formation Gravel 100 100%

Pavement Flexible & Rigid 70 0%

Surfaces Pavers

Asphalt

Spray Seals

40

16

10

0%

0%

0%

Table RA2 – Asset Residual Value

RA5 Asset Valuation & Sustainability

The table below illustrates the current value of sealed and unsealed roads across the municipality as at July. Assets were last re-valued at 1 July 2012. Assets are valued at Greenfield rates, however at renewal stages are valued at Brownfield rates. The valuation summary for Councils sealed and unsealed roads as at July 2014 is;

Current Replacement Cost $427,786,688.00

Depreciated Replacement Cost/ Written Down Value

$366,776,161.00

Annual Depreciation Expense

$9,119,308

Table RA3 – Asset Values - Roads

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the road asset category. Annual asset consumption for roads is also shown. This data is used by Council to apply predictive modelling scenarios to the asset groups thereby allowing funding scenarios to be tested and suitable recommendations for capital renewal, upgrade and the requirement for new assets to be made.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability

Ratio

Capital Expenditure/Depreciation

33%15 70-90%

Asset Renewal Funding Ratio

Average Capital Renewal Expenditure/ Average

Desired Capital Expenditure

42%16 60-80%

Remaining Service Potential

Written Down Value / Residual Value

85.74% > 60%

Average Annual Asset

Consumption Annual

Depreciation/Depreciable Amt

6.13% 0-3%

15 Based on average capital expenditure of $20,588,354 between 2014-2018 for delivery of Road Capital Renewal and Upgrade 16 Based on scenarios presented below – optimal spend is approximately $8.4 million per annum

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It must be noted that at present the average useful live for Councils sealed roads is 16 years. It has been demonstrated that most roads will well exceed this lifespan with routine maintenance. During the next condition assessment and revaluation period, expected to occur in 2015, a change to useful lives will be implemented across the portfolio. This will have a direct affect on asset sustainability ratios. This activity is listed as an improvement action at Section 8(R.4) of the RAMP.

The figures below demonstrate various funding scenarios for renewal, upgrade or expansion of the City of Meltons’ road network including increased and decreased spend, change of treatment offered and current allocations. It should be noted that modelling has been done assuming that Council adjusts present useful lives to 25 years. Table RA5 summarises the above scenarios. Modelling of data enables Council to predict the state of assets in each scenario and the average condition is shown for both pavement and surface.

Option 1: 10 Year - Current Financial Budgeted Allocation with allowance for increase based on capital spend ratio

Option 2: 10 Year - 50% Reduction of Current Financial Budgeted Allocation.

Option 3: 20 Year - Current Financial Budgeted Allocation with $1.2m increase every three years from 6th year.

Option 4: 20 Year - Current Financial Budgeted Allocation with $600K increase every two years

Year

Av

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1 0.7 $3,000,000 0.7 $1,500,000 0.7 $3,000,000 0.7 $3,000,000

2 0.8 $3,000,000 1.1 $1,500,000 1.0 $3,000,000 1.0 $3,000,000

3 1.0 $3,000,000 1.3 $1,500,000 1.3 $3,000,000 1.2 $3,000,000

4 1.2 $3,000,000 1.4 $1,500,000 1.3 $3,000,000 1.3 $3,600,000

5 1.2 $3,000,000 1.4 $1,500,000 1.4 $3,000,000 1.3 $3,600,000

6 1.3 $3,106,480 1.5 $1,500,000 1.5 $4,200,000 1.4 $3,600,000

7 1.3 $3,128,225 1.6 $1,500,000 1.5 $4,200,000 1.5 $4,200,000

8 1.6 $3,150,123 1.7 $1,500,000 1.5 $4,200,000 1.6 $4,200,000

9 1.6 $3,172,174 1.7 $1,500,000 1.6 $5,400,000 1.6 $4,200,000

10 1.6 $3,194,379 1.8 $1,500,000 1.6 $5,400,000 1.7 $4,800,000

11 1.8 $3,216,740 1.9 $1,500,000 1.7 $5,400,000 1.9 $4,800,000

12 1.9 $3,239,257 2.1 $1,500,000 1.8 $6,600,000 2.0 $4,800,000

13 2.0 $3,261,931 2.2 $1,500,000 1.9 $6,600,000 2.0 $5,400,000

14 2.0 $3,284,765 2.3 $1,500,000 1.9 $6,600,000 2.0 $5,400,000

15 2.1 $3,307,758 2.5 $1,500,000 1.9 $7,800,000 2.1 $5,400,000

16 2.1 $3,330,913 2.6 $1,500,000 2.0 $7,800,000 2.1 $6,000,000

17 2.1 $3,354,229 2.7 $1,500,000 2.0 $7,800,000 2.1 $6,000,000

18 2.7 $3,377,709 2.8 $1,500,000 2.0 $9,000,000 2.2 $6,000,000

19 2.7 $3,401,353 3.0 $1,500,000 2.1 $9,000,000 2.4 $6,600,000

20 2.7 $3,425,162 3.0 $1,500,000 2.2 $9,000,000 2.4 $6,600,000

Total Funding

Allocation

$63,951,198 $30,000,000 $114,000,000 $94,200,000

Table RA5 – Funding Scenario Comparison - Roads

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The data at table RA5 illustrates average overall condition that that would be expected as a result of allocated funding as shown at options 1-4. In each instance, with the exception of option 2 average asset condition will maintained as good or above over a period of 20 years. To better understand the effect of modelled scenarios the figures and table below identify the effect on percentage of assets in condition 4 or above over a twenty year period.

Figure RA3 – Current Capital Renewal Allocation - Roads

Figure RA4 – Current Capital Renewal 50% of Current Allocation - Roads

Figure RA5 –Capital Renewal Current Allocation Plus an Additional $1.2 million every three years – Roads

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Figure RA6 –Capital Renewal Current Allocation plus additional $600,000 every three years - Roads

Figure RA7 – Funding Scenario Comparison of percentage of roads at Condition 4 or worse at 10, 15 and 20 Years

Option 1 Current spend with applied

inflation

Option 2 Reduced

Spend by 50%

Option 3 Increased

Spend by $1.2 million every three years from year 6

Option 4 Increase spend

by $600,000 every three

years

%Roads in Overall Condition 4 or below at Year 1 0 0 0 0

%Roads in Overall Condition 4 or below at 10 Years2 0.72 0.94 0.94 0.79

% Roads in Overall Condition 4 or below at 15 Years 15.21 16.08 14.16 15.06

% Roads in Overall Condition 4 or below at 20 Years 24.14 26.47 17.47 22.94

0

5

10

15

20

25

30

Year

s

Comparison of Capital Investment Options and Effect on Road Condition at 10,15 and 20 Years

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As shown in the above table present allocation of funding will see an increase in roads at condition 4 or above over the next 20 years. In accordance with condition criteria shown at sub-section 2 of the

RAMP Assets in Condition 4 are deemed to be average. These assets may require significant maintenance and will most likely require capital renewal in the following five years. As the road network expands it is anticipated that increased funding shall be required to ensure statutory compliance and also best possible service levels. It is suggested that at present Councils service levels

are high (at an average of Overall Condition 2.2) and that these could be reviewed. This activity and consideration of capital renewal funding into the future is listed as an improvement action at Section 8(R.1, R.4) of the AMP. The above models provide a guide for Council to determine future funding allocation only and on determination of satisfactory service levels and reassessment of useful lives as recommended in the RAMP may be updated.

RA6 Asset Maintenance

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

RA6.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, repainting or building roof replacement for example. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends are shown below.

Year Maintenance Totals

Reactive Planned Cyclic

2012/2013 $1,970,238 $0 $2,603,154 $4,573,392.00

2013/2014 $1,901,566 $0 $2,045,309 $3,946,875.00

2014/2015 $2,817,709 $0 $2,086,695 $4,904,404.00

Table RA6 – Road Maintenance Expenditure 2012-2015 - Roads

Planned maintenance work for the road roads and related infrastructure is calculated at approximately 35% of Councils total maintenance expenditure. Proactive maintenance is conducted in accordance with Councils Road management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1 of the RAMP.

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Future maintenance costs are forecast to trend in line with the value of the asset stock as shown at section 4.5.3 to this plan, figure 12. Maintenance expenditure is calculated (following the current road maintenance contract) at a rate equivalent to 0.5% compounding (from 2016). The table below illustrates projected expenditure for maintenance of Councils Road Network 2014 – 2019.

Figure RA8 – Maintenance Expenditure Current & Projected – Roads 2014-2019

Industry best practice recommends that maintenance of assets should be calculated at between 1-2% of asset replacement value17

It should be acknowledged that where substantial maintenance is carried out on road infrastructure there may be resultant improvement in the overall condition of the asset. Although not formally recognised at time of works it is anticipated that improvements will be recognised during three yearly condition inspection audits and data updated accordingly at that time.

however given that many of councils road assets are newer it is anticipated that an increase consistent with current ratio (0.5%) will ensure ongoing levels of service are maintained in the short term. As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

RA7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development; • Population Growth; • Current Asset Condition Data; • Levels of Service ; • Available resources; and 17 IIMM International Infrastructure Management Manual- 2011

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015 2016 2017

2018

Mai

nten

ance

Val

ue

2014 2015 2016 2017 2018 Road Maintenance Contract $3,946,875.00 $4,904,404.00 $4,904,404.00 $5,315,868.00 $5,741,137.44

Current & Projected Maintenance Expenditure Roads 2014 - 2018

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• Comparison of renewal v new assets.

The projected capital expenditure profile for 2015 –2019 for Roads is shown below. This table represents Councils Capital Investment as well as developer funded initiatives or those constructed, up-graded or renewed as a result of grant funding.

Figure RA9 – Capital Expenditure – Roads 2014-2019

The table below provides a breakdown of planned capital expenditure for road related infrastructure from 2014/2015 financial year to the 2018/2019 financial year as allocated through developer contributions and grant funding. This is shown as new, upgrade, renewal and expansion funding. Significant development is shown with respect to newly constructed assets which are required to support extensive growth of the community including major arterial roads and associated connectors.

Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Roads

Upgrade 14,094,332 2,393,518 10,287,584

Renewal 600,000

New 1,263,549 6,497,973 1,948,153 9,346,988

Expansion

Table RA7 – Breakdown of Capital Expenditure – Developer & Grant Funded - Roads

$-

$5,000,000.00

$10,000,000.00

$15,000,000.00

$20,000,000.00

$25,000,000.00

$30,000,000.00

2015 2016 2017 2018 2019

Capital Expenditure- Roads 2015-2018

Capital Projects- Council Funded

Developer and Grant Funded Projects

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The table below further illustrates capital expenditure showing Council allocated funding. In line with Councils Asset Management Policy renewal, upgrade and expansion funding are prioritised.

Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Roads

Upgrade 70,000 311,034

Renewal 2,879,320 3,000,000 3,000,000 3,000,000 3,000,000

New 1,200,000 255,000 1,125,000 176,000

Expansion 100,000 2,210,000 1,500,000 1,518,000

Table RA8 – Breakdown of Capital Expenditure – Council Funded - Roads

As identified through strategic modelling above Council is presently not spending enough to maintain current service levels based on current data sets. However, the asset’s condition (and level of service) will be re-assessed and confirmed with the next scheduled data condition assessment anticipated to be undertaken in 2014-2015. This condition data will be utilised along with newly calibrated prediction models to refine and provide improved confidence in the projected future capital works expenditure profiles. This has been identified and included as an improvement item in Section 8 (R.5) of this RAMP.

RA8 Disposal of Roads

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any roads within its network that are excess to requirements. It is anticipated instead that as we continue to grow roads will be identified for capital improvement through upgrade and renewal activities.

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RB1 General- Footpaths The Road Asset Management Plan (RAMP) comprises sub-section 1 of the Councils Asset Management Plan. Part B of the RAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for the Footpath network across the City of Melton. Assets covered at Part B include all shared and non shared paths that are constructed along the road network and throughout Councils Parks and Gardens. Paths are typically constructed of concrete however may also be constructed using paving, gravel or combinations of these. Footpaths cater to pedestrian and cycle movement across the city. Assets covered at Part B represent approximately 15% of Councils Road Infrastructure Assets.

Asset Sub Class Description

Footpaths Generally concrete paths constructed to link localities and provide ease of egress for pedestrians. May be shared or non shared paths and vary in width

Park Paths May be constructed of concrete, asphalt or gravel. Provide links between open space facilities from car parks and road footpaths

Table RB1: Asset Subclasses -Paths

RB2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Planning Scheme and Precinct Structure Plans

RB3 Capacity and Performance

Melton City Council’s footpaths are generally provided to meet design standards where these are available. In general terms it is believed that the local footpath network is meeting capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipalities growth and expansion.

RB4 Condition Assessment

Council engages the services of an external contractor to capture and assess condition of Footpaths in accordance with Council’s condition assessment methodology documented in ‘Strategic Transportation Asset Management Business Process Manual – 2010’ and as outlined in sub-section 2 of the RAMP.

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Figure RB1: Footpath Condition

The chart above illustrates that over 90% of Councils Footpath infrastructure is rated as ‘good’ or above. As with roads the majority of Councils footpath network is in good condition or above. Footpaths are assessed for deformation and/or cracking and these are rated as slight, moderate or extreme. Scores are applied dependant on surface areas affected.

Council has established useful lives for its footpath assets. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to geology, use, maintenance, capital improvement or replacement. Useful lives for footpaths have been determined as;

Asset Class Material Useful Life (Years) Residual Value

Footpath Reinforced Concrete

Gravel/Crushed Rock

Asphalt

50

15

30

0

0

0

Table RB2 Useful Lives - Paths

RB5 Asset Valuation & Sustainability The table below illustrates the current value of footpaths across the municipality. Assets were last re-valued at 1 July 2012. Assets are valued at Greenfield rates, however at renewal stages are valued at Brownfield rates. The valuation summary for Councils footpaths as at July 2014 is;

Current Replacement Cost $101,906,960

Depreciated Replacement Cost/ Written Down Value

$74,599,219

Annual Depreciation Expense $1,592,698

Table RB3 Values – Paths

6% 4%

25%

58%

7%

0% 0%

Footpath Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

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Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the footpath category. Annual asset consumption for footpaths is also shown. This data is used by Council to apply predictive modelling scenarios to the asset groups thereby allowing funding scenarios to be tested and suitable recommendations for capital renewal, upgrade and the requirement for new assets to be made.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio

Capital Expenditure/Depreciation

23%18 70-90%

Asset Renewal Funding Ratio

Average Capital Renewal Expenditure/ Average

Desired Capital Expenditure

53%19 60-80%

Remaining Service Potential

Written Down Value / Residual Value

73.20% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

3.76% 0-3%

Table RB4 Asset Sustainability - Paths

Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability into the future. It should be noted however that routine maintenance activities such as the footpath replacement program also contribute to the improvement of assets. These improvements are realised by proactive, preventative and responsive programs. To date these benefits have not been applied to the asset condition as maintenance expenditure is recorded as an expense and as such data reflecting improvement is not captured under current processes. Review of this process to ensure amendments are made to engineering condition is listed as an improvement action at section 8(R.6) of this plan.

It is further recommended as part of this review that funding for the footpath replacement program be included in capital renewal projections as opposed to funding as part of the roads maintenance contract. Such action would be expected to better enable predictive modelling of the asset subclass into the future. The figures below demonstrate various funding scenarios for renewal, upgrade or expansion of the City of Meltons’ footpath network.

18 Based on current capital spend of $6,299,900 between 2014-2019 19 Based on scenarios presented below – optimal spend is approximately $ per annum

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Option 1: 20 Year - Current Financial Budgeted Allocation.

Option 2: 20 Year - Optimal Financial Allocation to maintain Current Condition over 20 years.

Option 3: 20 Year - Current Financial Budgeted Allocation Plus additional $500k each year.

Option 5: 20 Year - Current Financial Budgeted Allocation Plus additional $1 million each year.

Year

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1 2.5 $500,000 2.5 $1,000,000 2.5 $1,000,000 2.5 $1,500,000

2 2.7 $800,000 2.6 $1,500,000 2.6 $1,300,000 2.6 $1,800,000

3 2.7 $1,000,000 2.7 $1,500,000 2.7 $1,500,000 2.7 $2,000,000

4 2.8 $1,000,000 2.7 $2,000,000 2.7 $1,500,000 2.7 $2,000,000

5 2.8 $1,000,000 2.7 $2,000,000 2.7 $1,500,000 2.7 $2,000,000

6 2.9 $1,000,000 2.7 $2,000,000 2.8 $1,500,000 2.7 $2,000,000

7 2.9 $1,000,000 2.7 $2,000,000 2.8 $1,500,000 2.7 $2,000,000

8 3.0 $1,000,000 2.7 $2,500,000 2.8 $1,500,000 2.7 $2,000,000

9 3.0 $1,000,000 2.6 $2,500,000 2.8 $1,500,000 2.7 $2,000,000

10 3.2 $1,000,000 2.6 $2,500,000 2.9 $1,500,000 2.6 $2,000,000

11 3.2 $1,000,000 2.6 $2,500,000 2.9 $1,500,000 2.6 $2,000,000

12 3.3 $1,000,000 2.6 $2,500,000 2.9 $1,500,000 2.6 $2,000,000

13 3.4 $1,000,000 2.6 $2,500,000 3.0 $1,500,000 2.6 $2,000,000

14 3.4 $1,000,000 2.6 $2,500,000 3.0 $1,500,000 2.7 $2,000,000

15 3.5 $1,000,000 2.6 $2,500,000 3.0 $1,500,000 2.7 $2,000,000

16 3.6 $1,000,000 2.5 $2,500,000 3.1 $1,500,000 2.8 $2,000,000

17 3.6 $1,000,000 2.5 $3,000,000 3.1 $1,500,000 2.8 $2,000,000

18 3.7 $1,000,000 2.5 $3,000,000 3.2 $1,500,000 2.8 $2,000,000

19 3.7 $1,000,000 2.5 $3,000,000 3.2 $1,500,000 2.8 $2,000,000

20 3.8 $1,000,000 2.5 $3,000,000 3.2 $1,500,000 2.7 $2,000,000

Total Funding Allocation 2015-2035

$21,300,000

$46,500,000

$29,300,000

$39,300,000

Table RB5 Asset Sustainability Funding Model Comparison - Paths

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The data above illustrates average overall condition that that would be expected as a result of allocated funding as shown at options 1-4. Options 1 and 3, which provide for current spend or only minimal increase in footpath renewal funding show a decrease in condition from current service levels however on average the condition will be fair or better. To better understand the effect of modelled scenarios the figures and table below identify the effect on percentage of assets in condition 4 or above over a twenty year period.

Figure RB2 Asset Renewal Funding Scenarios – Predicted condition based on current funding allocation.

Figure RB3 Asset Renewal Funding Scenarios – Predicted condition based on optimal funding allocation

Figure RB4 Asset Renewal Funding Scenarios – Predicted condition based on current funding plus $500,000 additional per annum

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Figure RB5 Asset Renewal Funding Scenarios – Predicted condition based on current funding

plus $1,000,000 additional per annum

Figure RB6 – Funding Scenario Comparison of percentage of footpaths at Condition 4 or worse at 10, 15 and 20 Years

Option 1 Current spend

Option 2 Optimal Spend to Maintain Condition

Option 3 Increased Spend

by $500,000 annually

Option 4 Increased Spend

by $1,000,000 annually

%Footpaths in Overall Condition 4 or below at Year 1 13.17 12.67 12.02 12.58

%Footpaths in Overall Condition 4 or below at 10 Years2 55.53 39.31 46.28 39.29

% Footpaths in Overall Condition 4 or below at 15 Years 59.41 33.91 47.12 36.88

% Footpaths in Overall Condition 4 or below at 20 Years 62.14 25.97 46.56 33.88

0

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Comparisson of Capital Investment Options and Effect on Footpath Condition at 10,15 and 20 Years

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As shown in the above table present allocation of funding will see a significant increase in footpaths at condition 4 or above over the next 20 years. In accordance with condition criteria shown at sub-sub-section 2 of the RAMP Assets in Condition 4 are deemed to be average. These assets may require significant maintenance and will most likely require capital renewal in the following five years. As the footpath network expands it is anticipated that increased funding shall be required to ensure statutory compliance and also best possible service levels. It is suggested that at present Councils service levels are high (at an average of Overall Condition 2.2) and that these could be reviewed. This activity and consideration of capital renewal funding into the future is listed as an improvement action at section 8(R.1, R.4, R.6) of the RAMP. The above models provide a guide for Council to determine future funding allocation only and on determination of satisfactory service levels and reassessment of useful lives as recommended in the RAMP may be updated.

RB6 Asset Maintenance

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

RB6.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, footpath bay replacement for example. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends are shown below.

Year Maintenance Total

Reactive Planned Cyclic

2012/2013 $700,897 $0 $511,278 $1,212,175

2013/2014 $549,110 $0 $519,981 $1,069,091

2014/2015 $1,309,000 $0 $528,685 $1,837,685

Table RB6 Maintenance Expenditure 2012-2015 - Paths

Planned maintenance work for road and related infrastructure is calculated at approximately 35% of Councils total maintenance expenditure. Maintenance expenditure levels are considered to be

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adequate to meet required service levels. Future revision of this asset management plan will include linking required maintenance expenditures with required service levels.

Maintenance is conducted in accordance with Councils Road Management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1.

Future maintenance costs are forecast to trend in line with the value of the asset stock as shown at sub-section 4.5.3 to this plan, figure 12. Current maintenance expenditure for footpath is calculated at 2% of the footpath network replacement value. As indicated above however some of this activity could possibly be reassigned as capital renewal expenditure and in effect result in better sustainability ratio reporting. Based on this premise the following table calculates maintenance expenditure for footpaths, following the current contract at a ratio of 1% of the expected replacement value of the network.

Figure RB7 Asset Maintenance Expenditure 2014-2019 - Paths

It is anticipated that should funding be more appropriately allocated to capital renewal that the net effect would be improved sustainability reporting. It would also be anticipated that allocation of maintenance at 1% of the network (as shown above) would be sufficient to maintain current service levels across the footpath network with regards to maintenance activities.

RB7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development; • Population Growth; • Current Asset Condition Data; • Levels of Service ; • Available resources; and • Comparison of renewal v new assets.

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

2014 2015 2016 2017 2018

Current and Projected Maintenance Expenditure Footpaths 2014-2019

Road Maintenance Contract (Footpaths)

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The projected capital expenditure profile for 2014 –2018 is shown at figure RB8.

Figure RB8 Capital Expenditure (New, Renewal, Upgrade & Expansion) 2014-2019 - Paths

The table below provides a breakdown of planned capital expenditure for path infrastructure from 2014/2015 financial year to the 2018/2019 financial year as allocated through developer contributions and grant funding. This is shown as new, upgrade, renewal and expansion funding. Significant development is shown with respect to newly constructed assets which are required to support extensive growth of the community including major arterial roads and associated connectors.

Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Paths

Upgrade

Renewal

New 94,000

Expansion

Table RB7 – Breakdown of Capital Expenditure – Developer & Grant Funded - Paths

The table below further illustrates capital expenditure showing Council allocated funding. In line with Councils Asset Management Policy renewal, upgrade and expansion funding are prioritised.

Asset Group Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Paths

Upgrade 40,000 40,000 122,900 40,000 40,000

Renewal 1,309,000 1,332,000 1,343,000 1,000,000 1,000,000

New 765,000 1,050,000 1,050,000 750,000 905,068

Expansion

Table RB8 – Breakdown of Capital Expenditure – Council Funded - Paths

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

2014 2015 2016 2017 2018

Capital Expenditure- Paths 2014-2018

Capital Projects

Capital Projects DCP & Grant Funded

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RB8 Disposal of Footpaths Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any paths within its network that are excess to requirements. It is anticipated instead that as we continue to grow footpaths will be identified for capital improvement through upgrade and renewal activities.

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RC1 General- Kerbs The Road Asset Management Plan (RAMP) comprises Sub-section 1 of the Councils Asset Management Plan. Part C of the RAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for the kerb and channel across the sealed road network in the City of Melton. Assets covered at Part C include all mountable, plinth and barrier kerbs. Kerbs are typically constructed of concrete on the edge of sealed roads to formalise the traffic corridor and convey surface stormwater to the underground pipe drainage network. Assets covered at Part C represent approximately 1% of Councils Road Infrastructure Assets.

Asset Sub Class Description

Barrier Kerb A Kerb with a vertical face. Designed to act as barrier preventing vehicles from leaving a road carriageway.

Mountable kerb A kerb with semi horizontal face which allows vehicle to cross it

Plinth Kerb Kerb that is flat or with slight angle designed to bound roads, borders.

Channel A concrete or stone structure typically located at the edge of a road designed to provide road drainage and act as a barrier to prevent vehicles leaving the carriageway.

Table RC1: Asset Subclasses –Kerb & Channel

RC2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Road Management Plan • Road Safety Strategy and Action Plan (Road 2 Zero) • Planning Scheme and Precinct Structure Plans

RC3 Capacity and Performance

Melton City Council’s kerbs are generally provided to meet design standards where these are available. In general terms it is believed that the local road network and its kerb component is meeting capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality growth and expansion. Council has identified in its forward strategic sustainability planning that it will require $335,000[1]

over the following five years to undertake upgrade and renewal works in addition to works to be undertaken by developers.

[1] Data obtained from 10 Year Capital Works Program

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Table - RC2 – Useful Lives Kerb

RC4 Condition Assessment

Council engages the services of an external contractor to capture and assess condition of Kerbs in accordance with Council’s condition assessment methodology documented in ‘Strategic Transportation Asset Management Business Process Manual – 2010’. The contractor uses digital data capture and imaging by way of survey vehicle and quad bikes as shown at sub-section 3 of this RAMP.

Figure RC1 – Condition Breakdown

The chart above illustrates that based on current data over 75% of Councils Kerb and Channel infrastructure is rated as ‘good’ or above. As with roads the majority of Councils kerb and channel network is in good condition or above. Kerb and Channel is assessed for deformation and/or cracking and these are rated as slight, moderate or extreme. Scores are applied dependant on surface areas affected. Recent maintenance activities suggest that documented condition may vary from what is being noted by maintenance contractors. Council shall undertake a condition assessment of road related assets in 2015. This activity will include inspection of the kerb and channel. Review of condition should be undertaken following this activity and is listed as an improvement action at Section 8 (R.7) of this plan.

Council has established useful lives for its kerb and channel assets. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to geology, use, maintenance, capital improvement or replacement. Useful life for kerb and channel has been determined as;

Asset Class Material Useful Life (Years) Residual Value

Kerb and Channel All Materials 60 0

5%

30%

40%

25%

0% 0% 0%

Kerb and Channel Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

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RC5 Asset Valuation & Sustainability The table below illustrates the current value of kerb and channel across the municipality. Assets were last re-valued at 1 July 2012. Assets are valued at Greenfield rates, however at renewal stages are valued at Brownfield rates. The valuation summary for Councils sealed and unsealed roads as at July 2014 is;

Current Replacement Cost $77,190,321

Depreciated Replacement Cost/ Written Down Value

$60,757,764

Annual Depreciation Expense $273,875

Table RC3 –Asset Valuations - Kerb

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the kerb and channel category. Annual asset consumption for kerb and channel is also shown. This data is used by Council to apply predictive modelling scenarios to the asset groups thereby allowing funding scenarios to be tested and suitable recommendations for capital renewal, upgrade and the requirement for new assets to be made.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio

Capital Expenditure/Depreciation

33%20 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average

Desired Capital Expenditure

20%21 60-80%

Remaining Service Potential

Written Down Value / Residual Value

78.71% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

1.77% 0-3%

Table RC4 Asset Sustainability Ratios – Kerbs

Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability into the future. It must be noted that the City of Melton remains a significant growth area and takes on a high proportion of new assets annually. These factors in turn will have a direct effect on the figures illustrated above, particularly with regard to renewal funding ratios and asset consumption.

20 Based on current capital spend projection for 5 years or 505,000 between 2014 - 2019 21 Based on scenarios presented below – optimal spend is approximately $500,000 per annum

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Table RC5 demonstrate various funding scenarios for renewal, upgrade or expansion of the City of Melton kerb and channel network.

Option 1: 20 Year - Current Financial Budgeted Allocation.

Option 2: 20 Year - Optimal Financial Allocation to maintain Current Condition over 10 years.

Option 3: 20 Year - Current Financial Budgeted Allocation Plus additional $500k each year.

Option 4: 20 Year - Current Financial Budgeted Allocation Plus additional $250k each year.

Year

Av

Scor

e

Asse

t St

ock

Valu

e ($

)

Av

Scor

e

Asse

t St

ock

Valu

e ($

)

Av

Scor

e

Asse

t St

ock

Valu

e ($

)

Ave

Scor

e

Asse

t St

ock

Valu

e ($

)

1 1.8 1.8 $500,000 1.8 $500,000 1.8 $250,000

3 1.9 $40,000 1.8 $500,000 1.8 $540,000 1.8 $290,000

4 1.9 $40,000 1.9 $500,000 1.9 $540,000 1.9 $290,000

5 2.0 $40,000 1.9 $600,000 1.9 $540,000 2.0 $290,000

6 2.1 $40,000 2.0 $600,000 2.0 $540,000 2.0 $290,000

7 2.1 $40,000 2.0 $600,000 2.0 $540,000 2.1 $290,000

8 2.2 $40,000 2.1 $700,000 2.1 $540,000 2.1 $290,000

9 2.2 $40,000 2.1 $700,000 2.1 $540,000 2.2 $290,000

10 2.3 $40,000 2.1 $700,000 2.1 $540,000 2.2 $290,000

11 2.3 $40,000 2.1 $800,000 2.2 $540,000 2.2 $290,000

12 2.4 $40,000 2.2 $800,000 2.2 $540,000 2.3 $290,000

13 2.4 $40,000 2.2 $900,000 2.2 $540,000 2.3 $290,000

14 2.5 $40,000 2.2 $900,000 2.3 $540,000 2.4 $290,000

15 2.6 $40,000 2.2 $1,000,000 2.3 $540,000 2.4 $290,000

16 2.6 $40,000 2.2 $1,000,000 2.3 $540,000 2.5 $290,000

17 2.7 $40,000 2.3 $1,000,000 2.4 $540,000 2.5 $290,000

18 2.8 $40,000 2.3 $1,000,000 2.4 $540,000 2.6 $290,000

19 2.9 $40,000 2.3 $1,000,000 2.5 $540,000 2.6 $290,000

20 3.0 $40,000 2.4 $1,100,000 2.5 $540,000 2.7 $290,000

Total Spend 2014-2034

$720,000

$14,400,00

$9,720,000

$5,220,000

Table RC5 Asset Sustainability Funding Model Comparison - Kerb

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The data above illustrates average overall condition that that would be expected as a result of allocated funding as shown at options 1-4. In each instance, average asset condition will be maintained as good or above over a period of 20 years. To better understand the effect of modelled scenarios the figures and table below identify the effect on percentage of assets in condition 4 or above over a twenty year period.

Figure RC2 Asset Renewal Funding Scenarios – Predicted condition of kerb

based on current funding allocation.

Figure RC3 Asset Renewal Funding Scenarios – Predicted condition of kerb

based on optimal funding allocation.

Figure RC4 Asset Renewal Funding Scenarios – Predicted condition of kerb

based on additional $500,000 funding allocation.

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Figure RC5 Asset Renewal Funding Scenarios – Predicted condition of kerb based on additional

$250,000 funding allocation

Figure RC6 – Funding Scenario Comparison of percentage of footpaths at Condition 4 or worse at 10, 15 and 20 Years

Option 1 Current spend

Option 2 Optimal Spend

Option 3 Increased Spend by

$500,000 per annum

Option 4 Increased Spend by

$250,000 per annum

%Kerb and Channel in Overall Condition 4 or below at Year 1 1.66 0.97 0.97 1.33

%Kerb and Channel in Overall Condition 4 or below at 10

Years2 15.88 9.93 10.31 13.11

%Kerb & Channel in Overall Condition 4 or below at 15

Years 23.61 12.34 15.31 19.63

% Kerb & Channel in Overall Condition 4 or below at 20

Years 33.41 9.94 22.89 28.31

0

5

10

15

20

25

30

35

40

% o

f Ker

bs a

nd C

hann

el i

n co

nditi

on 4

or a

bove

Effect of projected spend on Kerb and Channel condition over 20 years Options 1-4

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As shown in the above table present allocation of funding will see a significant increase in kerb and channel at condition 4 or above over the next 20 years. In accordance with condition criteria shown at sub-section 2 of the RAMP Assets in Condition 4 are deemed to be average. These assets may require significant maintenance and will most likely require capital renewal in the following five years. As the road network expands it is anticipated that increased funding shall be required to ensure statutory compliance and also best possible service levels for associated assets such as kerb and channel. It is suggested that at present Councils service levels are high (at an average of Overall Condition 2.2) and that these could be reviewed. This activity and consideration of capital renewal funding into the future is listed as an improvement action at section 8(R.1, R.4) of the RAMP. Council should also consider drainage aspects when determining kerb renewal models and acceptable levels of service.

RC6 Asset Maintenance

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

RC6.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example replacement of kerb segments. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends are shown below.

Year Maintenance

Reactive Planned Cyclic

2012/2013 $0 $0 $511,278

2013/2014 $0 $0 $519,981

2014/2015 $0 $0 $528,685

Table RC6 Maintenance Expenditure 2012-2015 - Kerbs

Planned maintenance work is calculated at approximately 40% of Councils total maintenance expenditure. Based on documented condition, maintenance expenditure levels are considered to be adequate to meet required service levels. Condition data should be updated however to ensure that this statement is accurate as through local knowledge and an increase in CARs for kerb repair it is anticipated that kerbs are not performing to the levels shown at sub-section RC3 of this plan. This activity is listed as an improvement action at section 8(R.7) of this plan.

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Proactive maintenance is conducted in accordance with Councils Road management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1.

Future maintenance costs are forecast to trend in line with the value of the asset stock as shown at sub-section 4.5.3 to this plan, figure 12. Maintenance expenditure for kerb is included with roads maintenance activities and as such is not able to be determined independently. The table below illustrates projected expenditure for maintenance of Councils Road Network 2014 – 2018.

Figure RC7 Asset Maintenance Expenditure 2014-2019 - Kerbs

In the short term it is anticipated that this increase in road maintenance expenditure will ensure that Councils Road Network continues to be maintained to a high level of service. As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

RC7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

2014 2015 2016 2017 2018

Mai

nten

ance

Val

ue

2014 2015 2016 2017 2018 Road Maintenance Contract $3,946,875 $4,904,404 $4,904,404 $5,315,868 $5,741,137

Current & Projected Maintenance Expenditure Roads (Including Kerb & Channel) 2014 - 2018

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The projected capital expenditure profile for 2014–2018 is shown below.

Figure RC8 Capital Expenditure (New, Renewal, Upgrade & Expansion) 2014-2019 - Kerbs

It is considered that the current identified capital expenditure profile is insufficient to maintain the current kerb infrastructure throughout the duration of this plan, however, the asset’s condition (and level of service) will be re-assessed and confirmed with the next scheduled data condition assessment anticipated to be undertaken in 2014-2015. Consideration of useful lives should be undertaken following the next condition assessment and this is listed as an improvement action at Part 8(R.4) of the Asset Management Plan.

The table below illustrates capital expenditure showing Council allocated funding. In line with Councils Asset Management Policy renewal, upgrade and expansion funding are prioritised. . This is shown as new, upgrade, renewal and expansion funding.

Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Kerbs

Upgrade 255,000 350,000

Renewal

New 50,000 50,000 50,000 50,000 50,000

Expansion

Table RC7– Breakdown of Capital Expenditure – Council Funded - Kerbs

RC8 Disposal of Kerb & Channel Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any roads within its network that are excess to requirements. It is anticipated instead that as we continue to grow roads will be identified for capital improvement through upgrade and renewal activities.

$- $50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

$400,000.00

2014 2015 2016 2017 2018

Capital Expenditure- Kerbs 2014-2018

Capital Projects

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RD1 General – Traffic Control Devices (TCD) The Road Asset Management Plan (RAMP) comprises Sub-section 1 of the Councils Asset Management Plan. Part D of the RAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Traffic Control Devices across the City of Melton. Assets covered at Part D include all Bus Bays, Parking Bays, Central Median Strips, Intersection Treatments, Roundabouts, School Crossings, Speed Humps and Splitter Islands. Traffic Control Devices are typically constructed of concrete however may also be constructed using paving, gravel, landscaping or combinations of these. Traffic Control Devices cater for safe vehicle and pedestrian movement across the city. Assets covered at Part D represent approximately 8% of Councils Road Infrastructure Assets.

Asset Sub Type Description

Roundabout A circular intersection or junction in which traffic flows almost continuously in one direction around a central island.

Centre Median Strip The reserved area that separates opposing lanes of traffic on divided roadways, such as divided highways, dual carriageways, freeways, or motorways

Splitter Island A raised or painted traffic island that separates traffic in opposing directions of travel. They are typically used at roundabouts and on the minor road approaches to an intersection.

Parking Bay/Bus Bay The reserved area built for the purpose of parking cars or allowing buses to exit the carriageway while allowing for continues traffic flow.

Speed Humps The common name for a family of traffic calming devices that use vertical deflection to slow motor-vehicle traffic in order to improve safety conditions

Threshold Treatments Refers to defined area noted at some Council intersections and are commonly paved or made of different materials to the road surface. May be defined by plinth kerb.

Garbage Pick Up Units Reserved area in courts or narrow access roads where the residents may leave bins for routine collection. Generally established in areas where pickup trucks are unable to easily turn

Table RD1 – Types of Traffic Control Devices

RD2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Planning Scheme and Precinct Structure Plans

RD3 Capacity and Performance

Melton City Council’s new traffic control devices are generally provided to meet design standards where these are available. In the instances of older assets however there may be requirement for

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upgrade to meet these standards and in this instance these assets are highlighted for improvement as part of capital work programming.

In general terms and in consideration of programmed expenditure for upgrade and improvement of substandard assets it is believed that the current l traffic management device network will meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning, as well as in capital programming will accommodate the municipality growth and expansion.

RD4 Condition Assessment

Council does not currently undertake formal condition assessment of this asset subclass. At present assets are depreciated over the designated lifespan (16-60) years. Council will need to assess the validity and necessity to undertake formal condition assessment of this asset group. This is listed as an improvement at Section 8 (R.3) of the AMP.

RD4.1 Current Condition (Age Based Assessment)

Figure RD1 – Condition Breakdown TCDS City of Melton 2014

Condition data for traffic control devices across the municipality is limited, with only approximately 79% of the assets having assigned condition based on the age of the asset. Of that 79% the majority are in good condition or above. It is expected that the assets not rated would fall between a score of 3-4 if assessed. Council will need to undertake to review data to best understand the condition of TCDs across the network. This activity is listed as an improvement action at Section 8(R.8) of the plan.

Council has established useful lives for its traffic management device assets. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to geology, use, maintenance, capital improvement or replacement. Useful lives for Traffic Control Devices have been determined as;

0%

38%

0%

42%

20%

TMD Condition

Condition 0

Condition 1

Condition 2

Condition 3

Not rated

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Asset Class Material Useful Life (Years) Residual Value

Traffic Control Device Reinforced Concrete

Gravel/Crushed

Rock/Landscaped

50

15

0

0

RD5 Asset Valuation & Sustainability The table below illustrates the current value of TCDs across the municipality. Assets were last re-valued at 1 July 2012. Assets are valued at Greenfield rates, however at renewal stages are valued at Brownfield rates. The valuation summary for Councils footpaths as at July 2014 is;

Current Replacement Cost $54,968,563

Depreciated Replacement Cost/ Written Down Value

$49,332,821

Annual Depreciation Expense $1,136,709 Table RD3 Asset Value – Traffic Control Devices

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the TCD category. Annual asset consumption for TCDs is also shown. This data is used by Council to apply predictive modelling scenarios to the asset groups thereby allowing funding scenarios to be tested and suitable recommendations for capital renewal, upgrade and the requirement for new assets to be made.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio

Capital Expenditure/Depreciation

72%22 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average

Desired Capital Expenditure

NA23 60-80%

Remaining Service Potential

Written Down Value / Residual Value

89.75% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

2.43% 0-3%

Table RD4 Asset Sustainability - Traffic Control Devices

22 Based on current capital spend projection for 5 years 23 Optimal funding for this asset class has not been modelled

Table RD2 – Useful Lives Traffic Control Devices

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It must be noted that the City of Melton remains a significant growth area and takes on a high proportion of new assets annually. These factors in turn will have a direct effect on the figures illustrated above, particularly with regard to renewal funding ratios and asset consumption. The table above illustrates that based on current allocated lives and data Council is presently allocating sufficient funds to maintain the current service level of Traffic Control Devices into the future. More detailed understanding and modelling of this asset class should be undertaken as an improvement action. This is listed as an improvement action at section 8(R.9) of the RAMP. Such activity will also enable better understanding of capital works backlog and renewal gap where applicable.

RD6 Asset Maintenance Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

RD6.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, replacement of a roundabout. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends are shown below.

A breakdown of maintenance for traffic control devices is not specified in the roads maintenance contract. It is anticipated that as asset practices mature this data will be enhances in future iterations of this plan. Proactive maintenance is conducted in accordance with Councils Road Management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1.

Maintenance expenditure is for TCDS is not distinguished in the road maintenance contracts. Documenting of this data is listed as a suggested improvement action at Section 8(R.10) of this plan

RD7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets;

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• Outcomes of Local Area Traffic Management Studies; and

• Future traffic Investigations

The projected capital expenditure profile for 2014 –2018 is shown below.

Figure RD2 Capital Expenditure (New, Renewal, Upgrade & Expansion ) 2014-2019 - TCDs

It is considered that the current identified capital expenditure profile is sufficient to maintain the current TCD infrastructure throughout the duration of this plan, however, the asset’s condition (and level of service) will be re-assessed and confirmed with the next scheduled data condition assessment anticipated to be undertaken in 2014-2015. Consideration of useful lives should be undertaken following the next condition assessment and this is listed as an improvement action at Part 8(R.1, R.4) of the Asset Management Plan.

The table below illustrates capital expenditure showing developer and grant allocated funding.

Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Paths

Upgrade

Renewal

New 850,678 1,213,606

Expansion

Table RD5 Capital Expenditure (New, Renewal, Upgrade & Expansion ) 2014-2019 - TCDs

$-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

2014 2015 2016 2017 2018

Capital Expenditure- Traffic Control Devices 2014-2018

Council Funded Capital Projects

Developer and Grant Funded Capital Projects

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Table RD6 illustrates capital expenditure showing Council allocated funding. In line with Councils Asset Management Policy renewal, upgrade and expansion funding are prioritised. . This is shown as new, upgrade, renewal and expansion funding.

Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Paths

Upgrade 380,000 380,000 380,000 380,000 380,000

Renewal

New 551,000 590,000 590,000 618,000 1,211,111

Expansion

Table RD6 Capital Expenditure (New, Renewal, Upgrade & Expansion ) 2014-2019 - TCDs

RD8 Disposal of Traffic Control Devices Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Through Local Area Traffic Management Studies (LATMS) Melton City Council identifies any Traffic Control Devices within its network that are excess to requirements.

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RE1 General- Bridges The Road Asset Management Plan (RAMP) comprises Sub-section 1 of the Councils Asset Management Plan. Part E of the RAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for the bridges and major culverts owned by the City of Melton. Assets covered at Part E represent approximately 2% of Councils Road Infrastructure Assets and includes the following;

Asset Subclass Description

Road Bridges Bridges traversing urban and rural roads and /or waterways with a bitumen surface typically spray seal, asphalt or recycled bitumen

Pedestrian Bridges Bridges constructed for the purpose to connect one point to another for pedestrians who may traverse roads, culverts, waterways and ravines. Constructed of various materials including steel, timber and concrete.

Major Culverts Include structural culverts under bridges and other overpasses. Predominantly constructed of concrete, pipe or box greater than 900mm

Boardwalks & Viewing Platforms Walkways and platforms predominantly located in reserves or along waterways. May be constructed of concrete or timber.

Table RE1 Types of Bridges in City of Melton

RE2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Road Management Plan • Road Safety Strategy and Action Plan (Road 2 Zero) • Planning Scheme and Precinct Structure Plans • Drainage Asset Management Plan • Flood Management Plan • Emergency Flood Management Plan

RE3 Capacity and Performance

Melton City Council’s bridges are generally provided to meet design standards where these are available. In general terms it is believed that the local bridge network is meeting capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality growth and expansion.

RE4 Condition Assessment

Council engages the services of an external contractor to capture and assess condition of Bridges in accordance with Council’s condition assessment methodology documented in ‘Strategic Transportation Asset Management Business Process Manual – 2010’. The contractor undertakes level 1 and 2 condition assessment of the asset class considering super structure (Level1) as well as sub structures and components such as rails, columns, abutments and cross heads. Level 1 Bridge

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inspections are undertaken annually in accordance with Councils road services contract. Level 2 inspections of Councils Bridge network was last assessed in 2010 and is due for re-assessment in the current calendar year. This activity is listed as an improvement action at Section 8(R.11) of the RAMP.

Figure RE1 – Condition Breakdown – Road Bridges

The above table illustrates that of the rated assets, the majority of Council road bridges are good condition or better. Council will conduct updated condition assessment in the current financial year (2014/2015). This data should be updated to best inform capital programs in coming years. This activity is listed as an improvement action at Section 8 (R.12) of the RAMP.

Figure RE2 – Condition Breakdown Pedestrian Bridges

The above table illustrates that of the rated assets, the majority of Council pedestrian bridges are very good condition or better. Council will conduct updated condition assessment in the current

0%

17%

21%

8%

4% 4% 0%

46%

Road Bridge Condition

Condition 0 Condition 1 Condition 2 Condition 3 Condition 4 Condition 5 Condition 6 Not Rated

0%

15%

54%

5% 1%

0% 0%

25%

Pedestrian Bridge Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

Not Rated

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financial year (2014/2015). This data should be updated to best inform capital programs in coming years. This activity is listed as an improvement action at Section 8(R.12) of the RAMP.

Figure RE3 – Condition Breakdown Viewing Platforms

The above table illustrates that of the rated assets, the majority of Council boardwalks and viewing platforms bridges are in very good condition or better. Council will conduct updated condition assessment in the current financial year (2014/2015). This data should be updated to best inform capital programs in coming years. This activity is listed as an improvement action at Section 8(R.12) of the RAMP. In addition to the above planned condition assessment, Councils maintenance contractor is required to undertake routine Level 1 inspection of this asset group. Opportunity to review this data should be investigated and utilised when finalising annual capital programs. This activity is also listed as an improvement action at section 8(R.13) of the RAMP.

At time of writing Council does not have documented condition for major culverts in the City. It is expected that the majority of the assets will be rated in good to very good condition and this will be confirmed following inspection of the assets in the current financial year (2014/2015). This data should be updated to best inform capital programs in coming years. This activity is listed as an improvement action at Section 8 (R.12) of the RAMP.

Council has established useful lives for its bridge and culvert infrastructure assets. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to geology, use, maintenance, capital improvement or replacement. Useful life for roads assets has been determined as;

0% 0%

88%

6%

0% 0% 0%

6%

Boardwalks and Viewing Platform Condition

Condition 0 Condition 1 Condition 2 Condition 3 Condition 4 Condition 5 Condition 6 Not Rated

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Asset Class Material Useful Life (Years) Residual Value

Road Bridge -

Formation

Gravel 100 100%

Road Bridge -

Pavement

Flexible & Rigid 70 0%

Road Bridge -Sealed

Surfaces

Substructures

Gravel

Pavers

Asphalt

Spray Seals

Steel

Timber

12

40

16

10

100

80

0%

0%

0%

0%

0%

0%

Major Culverts Concrete 100.00 0%

Pedestrian Bridges Timber

Concrete

Steel

40.00

50.00

0%

0%

Boardwalks & Viewing

Platforms

Timber

Concrete

40.00

50.00

0%

0%

Table RE2 – Useful Lives Bridges & Platforms

RE5 Asset Valuation & Sustainability The table below illustrates the current value of bridges and major culverts across the municipality as at July. Assets were last re-valued at 1 July 2014. Assets are valued at Greenfield rates, however at renewal stages are valued at Brownfield rates. The valuation summary for Councils bridge and major culvert assets as at July 2014 is;

Current Replacement Cost $15,031,269.00

Depreciated Replacement Cost/ Written Down Value

$9,674,843.87

Annual Depreciation Expense $206,319.13

Table RE3 Asset Valuations – Bridges & Major Culverts as at July 1, 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the road asset category. Annual asset consumption for roads is also shown. This data is used by Council to apply predictive

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modelling scenarios to the asset groups thereby allowing funding scenarios to be tested and suitable recommendations for capital renewal, upgrade and the requirement for new assets to be made.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio

Capital Expenditure/Depreciation 71%24 70-90%

Asset Renewal Funding Ratio

Average Capital Renewal Expenditure/ Average Desired

Capital Expenditure

42%25 60-80%

Remaining Service Potential

Written Down Value / Residual Value

85.74% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable Amt

6.13% 0-3%

Table RE4 Asset Sustainability Ratios – Bridges as at July 1, 2014

It should be noted that the City of Melton remains a significant growth area and takes on a high proportion of new assets annually. This fact has a direct effect on the figures illustrated above, particularly with regard to renewal funding ratios and asset consumption. Based on current data Council is investing adequate funds to maintain and possibly improve the condition of this asset class. Council should review the above figures following the upcoming condition assessment of this asset class in the 2014/2015 year and this has been included as an improvement action at Section 8(R.1) of the plan.

Preliminary modelling utilising existing data has been conducted as shown below.

Figure RE4 Bridge Expenditure Modelling – Outputs for Renewal and Upgrade Expenditure by Year

24 Based on average capital expenditure of $3,500,000 per annum between 2013-2018 for delivery of Road Capital renewal and Upgrade 25 Based on scenarios presented below – optimal spend is approximately $8.4 million per annum

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Based on current criteria this table illustrate nil to limited necessity to invest funds into upgrade and renewal of road bridges within this asset group. Local knowledge however has been applied to capital forecasts and on this basis approximately $288,000 per annum has been allocated toward upgrade and renewal programs. In addition $4,000,000 has been allocated in the 2014/2015 year for construction of a new bridge in the Toolern PSP. Following updated condition inspection Council should undertake to develop models based on updated data and criteria in order to best appoint allocated funds and to determine ongoing funding requirements into the future. This activity will also enable better understanding of current backlog (if any) with regard to this asset class. This is listed as an improvement action at section 8 (R.12) of this plan

RE6 Asset Maintenance

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

RE6.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, replacement of a rail. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends are shown below.

Year Maintenance

Reactive Planned Cyclic

2012/2013 $0 $470,000 $0

2013/2014 $0 $470,000 7,500

2014/2015 $0 $484,100 $80,000

Table RE5 Maintenance Expenditure 2012-2015 - Bridges

Planned maintenance work is calculated at approximately 35% of Councils total maintenance expenditure. Maintenance expenditure levels are considered to be adequate to meet required service levels for bridges. Future revision of this asset management plan will include linking required maintenance expenditures with required service levels.

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Proactive maintenance is conducted in accordance with Councils Road management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1.

Future maintenance costs are forecast to trend in line with the value of the asset stock as shown at sub-section 4.5.3 to this plan, figure 12. Current maintenance expenditure for bridges is calculated at 4% of the network replacement value. This is typically higher than industry standard which is predicted at 1-2% of asset value.26

For the purpose of this plan however bridge maintenance allocation is predicted using industry standards at the higher rate of 2%.

Given good community feedback with regard to maintenance of road related assets and high sustainability reporting it may be appropriate to review funding allocations for maintenance of bridges across the municipality. This activity should be undertaken following condition assessment and modelling of bridge data as noted at Section 8 (R.11, R.12).

Figure RE5 Asset Maintenance Expenditure 2014-2019 - Bridges

It is anticipated that allocation of maintenance at 2% of the network (as shown above) would be sufficient to maintain current service levels across for bridges and platform with regards to maintenance activities. Savings made in this area may be better allocated to assets where maintenance funding is estimated to be insufficient.

RE7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development; • Population Growth; • Current Asset Condition Data; • Levels of Service ;

26 IIMM – International Infrastructure Management Manual 2012

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015 2016 2017 2018

Current and Projected Maintenance Expenditure Bridges and Viewing Platforms 2014-2019

Road Maintenance Contract (Bridges and Viewing Platforms)

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• Available resources; • Comparison of renewal v new assets; and • Flood Mapping

The projected capital expenditure profile for 2015 –2019 is shown below.

Figure RE6 Capital Expenditure (New, Renewal, Upgrade & Expansion) 2014-2019 - Bridges

As identified condition data (to be collected in the 2014/2015 year) will be utilised along with newly calibrated prediction models to refine and provide improved confidence in the projected future capital works expenditure profiles. This has been identified and included as an improvement item in Section 8(R.12) of this plan.

The table below illustrates capital expenditure showing developer and grant allocated funding. This is shown as new, upgrade, renewal and expansion funding.

Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Bridges

Upgrade

Renewal

New 4,094,868 41,863

Expansion

Table RE6– Breakdown of Capital Expenditure – Developer Funded – Bridges

The table below illustrates capital expenditure showing Council allocated funding. In line with Councils Asset Management Policy renewal, upgrade and expansion funding are prioritised. . This is shown as new, upgrade, renewal and expansion funding.

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

2015 2016 2017 2018 2019

Capital Expenditure- Bridges & Major Culverts 2014-2018

Capital Projects

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Asset Group

Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Bridges

Upgrade

Renewal 80,000 80,000 80,000 120,000 120,000

New 250,000 250,000 250,000 250,000 250,000

Expansion

Table RE7– Breakdown of Capital Expenditure – Council Funded - Bridges

RE8 Disposal of Bridges & Major Culverts Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any bridges or major culverts within its network that are excess to requirements. It is anticipated instead that as we continue to grow such assets will be identified for capital improvement through upgrade and renewal activities.

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RF1 General – Other Assets The Road Asset Management Plan (RAMP) comprises Sub-section 1 of the Councils Asset Management Plan. Part F of the RAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for the assets not covered at parts A-E of the RAMP. Assets covered at Part F include the following;

Asset Type Description

Road Furniture & Ancillary* Includes railings, bollards, street furniture and shelters

Car parks Off street parking constructed of Bitumen, gravel or other. May or may not also incorporate kerb

Signs Regulatory, information, guide and warning signs

Signals* Traffic lights and pedestrian signals located throughout the municipality

Public Lighting (Street Lights)* Non Standard Lighting located throughout the municipality

Table RF1 Types of Other Assets in City of Melton

*Incomplete Asset Data Held in Register

RF2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Road Management Plan • Road Safety Strategy and Action Plan (Road 2 Zero) • Planning Scheme and Precinct Structure Plans • General Local Knowledge • Local Area Traffic Management Studies (LATMS)

RF3 Capacity and Performance

Melton City Council’s road related infrastructure is provided to meet design standards where these are available. Capacity and Performance data for this asset group does not exist. Improvement of data sets is included as an improvement action at Section 8(R.13) of this plan.

RF4 Condition Assessment

Limited condition data exists for the assets listed in part. It is anticipated that some data will be collected during the life of this plan. Other assets do not require condition assessment and are maintained under maintenance agreements. Improvement of condition data for the assets in this category is listed as an improvement action at section 8 (R.14) of this plan

Council has established useful lives for its road infrastructure assets. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to geology, use, maintenance, capital improvement or replacement. Useful life for roads assets has been determined as;

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Asset Class Material Useful Life (Years) Residual Value

Road Furniture All 15 0%

Signs All 15 0%

All 30 0%

0%

0%

0%

0%

0%

Car parks Unsealed Gravel 50 0%

Street Lights All 25 0%

0%

Signals All 20 0%

0%

Table RF2 – Useful Lives Other Assets - Roads

RF5 Asset Valuation & Sustainability The table below illustrates the current value of sealed and additional road infrastructure assets across the municipality as at July.

Current Replacement Cost

$10,691,703

Depreciated Replacement Cost/ Written Down Value

$NA

Annual Depreciation Expense $206,319.13

Table RF3 Asset Valuations –Other Assets as at July 1, 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the road asset category. At present data for assets included in this sub-section is insufficient to provide reliable sustainability ratio outputs. It is anticipated that as Councils asset practices mature that this data shall be available in future iterations of this plan. Improvement of data is noted as an improvement action at section 8(R.13) of this plan.

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RF6 Asset Maintenance

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

RF6.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, replacement of road furniture. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends are shown below.

Year Maintenance

Reactive Planned Cyclic

2012/2013 $0 $726,578 $14,273

2013/2014 $0 $748,358 $13,309

2014/2015 $0 $790,138 $20,300

Table RF4 Maintenance Expenditure 2012-2015 - Other Assets

Planned maintenance work is calculated at approximately 35% of Councils total maintenance expenditure. Maintenance expenditure levels are considered to be adequate to meet required service levels. Future revision of this asset management plan will include linking required maintenance expenditures with required service levels.

Proactive maintenance is conducted in accordance with Councils Road management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1.

At present insufficient data exists to validate the level of expenditure for maintenance of assets shown in this category. Improvement of data shall enable Council to establish appropriate funding ratios and this activity is shown as an improvement action at Section 8 (R.15) of this plan.

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RF7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

At present no capital programs apply to assets contained in this sub-section. In most instances these will be included in larger projects and documented when data is updated within the asset register.

RF8 Disposal of Assets Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any other road assets within its network that are excess to requirements. It is anticipated instead that as we continue to grow such assets will be identified for capital improvement through upgrade and renewal activities.

U

A Proud Community Growing Together

ASSET MANAGEMENT PLAN

Section 2: Drainage Asset Management Plan

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D1.0 Introduction

The Drainage Asset Management Plan (DAMP) comprises sub sub-section 2 of the AMP. This sub-section includes reference to all of Councils stormwater assets including pits, pipes, minor culverts, swales, gross pollutant traps, retarding basins and other Water Sensitive Urban Design, however at the time of this AMP being produced all captured and recorded assets have been classified under the categories of ‘stormwater pits’ and ‘storm water pipes’ in the asset register. Work is progressing to ensure all assets are collected in the central database under an expanded hierarchy and this has been noted as an improvement action at section 8 (D.1) of the Asset Management Plan (AMP). Condition assessment for stormwater drainage assets is presently based on age as inspection of these assets is only carried out on a reactive basis. Council is in the process of investigating the value of assessing its stormwater assets and this has been noted as an improvement action at section 8 (D.1) of the AMP. Further iterations of this plan will reflect these changes.

D1.1 Background

Melton City Council’s (MCC) stormwater infrastructure represents a significant investment by the community and is vital to its health and wellbeing. Stewardship of drainage infrastructure is a core Council function. The DAMP is written to demonstrate responsive management of assets, service provided from assets, compliance with regulatory requirements, and to communicate strategies to the community. This revision of the DAMP coincides with Councils activities to achieve ‘Core Maturity’ under the National Asset Management Assessment Frameworks (NAMAF).

The fundamental purpose of this document is to improve Council’s long-term strategic management of its stormwater related infrastructure assets in order to cater for the community’s desired Levels of Service in the future, in accordance with Council’s key strategic documents, Asset Management Policy, Strategy and also Councils Road Management Plan, and should be read in association with these documents.

This DAMP, for the purpose of stormwater assets within road reserves, also uses the legal elements of various codes of practice in relation to the Road Management Act 2004 and establishes inspection guidelines and protocols in relation to these mandatory codes. The relationship between this DAMP and the Road Management Act 2004 is therefore essentially the setting of frame-works that will become Council’s statutory defence guidelines, work practices and co-operative arrangements with other authorities where drainage falls within the road reserve.

In relation to civil liability, Council acknowledges that the general thrust of the Road Management Act 2004 is to provide greater certainty and consistency in regard to civil liability for road management. Therefore, this DAMP has set out frameworks for inspection, maintenance and repair of drainage assets (within road reserves) and has established reasonable standards of performance. It is therefore considered that Melton City Council has been ‘reasonable’ in its duty of care.

In managing its stormwater related assets across the Municipality, Council has, in consultation with Melbourne Water developed and adopted a flood risk management approach as set out in

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the Flood Management Plan (2013)27

• Sharing knowledge of data between key organisations;

. Collaborative development of this document between Council, Melbourne Water and the State Emergency Service has enabled integrated and sustainable responses to be determined which will in time address flooding hotspots across the municipality. Collaboration will continue resulting in coordinated Asset Data Management, Risk Mitigation and appropriate allocation of technical expertise and financial allocation. The Flood Management Plan and Flood Emergency Management Plan incorporate improvement actions to address key issues and knowledge gaps. These include but are not limited to;

• Development of capital works programs to address key hot spots and flood risk areas;

• Undertaking Flood Modelling in a collaborative manner ( between Melton City and Melbourne Water)

• Undertaking Community education as part of flood preparedness and awareness; and

• Emergency response planning.

This DAMP should be read in conjunction with Councils Flood Management, Flood Emergency Management and Road Management Plans.

D1.2 Waterways in Melton

There are 373 km of natural waterways, 25km of channels and 30 km of underground drains located within the City of Melton. MCC manages over 25km of waterways and land adjacent to waterways. The majority of these waterways are located within the Werribee River catchment with tributaries including Toolern Creek, Djerriwarrh Creek, Yangardook Creek, Arnolds Creek and Little Blind Creek. These tributaries drain from north to south through Melton townships and connect to the Werribee River at the south of the Melton development. The major waterways throughout the municipality form important riparian habitat corridors of significant conservation and recreational value.

D1.2 .1 Water Management in Melton

Water management in Melton, including the management of stormwater assets, covers a range of services to the community, including:

• Protection of life, property and transport networks from both riverine and local catchment flooding;

• Management of water quality, aquatic environmental values and environmental flows; and

• Water re-use.

D1.2.2 Council’s Drainage

Council primarily controls the stormwater drainage system, (supporting catchments up to 60 hectares in area) with the exception of the larger pipes and creeks. In its role as the local drainage authority, Council is responsible for the operation and maintenance and renewal of the existing drainage system. Council is also responsible for undertaking forward planning and

27 Flood Management Plan – For the City of Melton and Melbourne Water, 2013, Melbourne Water & City of Melton.

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administering development control through planning permit assessment, building permit assessment and local laws.

D1.2.3 Melbourne Water’s Drainage

Melbourne Water is the regional drainage and floodplain management authority for the Melbourne area. It is responsible for managing regional drainage and flood mitigation (generally supporting catchments greater than 60 hectares) and operating and maintaining 30kms of main trunk drains within Melton. Melbourne Water is also responsible for the management of all creeks and rivers that pass through Melton.

The various roles of Melbourne Water include:

• Regional Drainage and Flood Mitigation - this includes setting of drainage infrastructure standards, planning of stormwater infrastructure in areas under development and operational responsibility for providing safe and effective conveyance systems for stormwater runoff;

• Waterway Management - this role relates to the management, protection and rehabilitation of existing waterways to sustain and improve their environmental and functional integrity. Melbourne Water is responsible for a range of strategic planning, capital and operational works for major waterways in the municipality; and

• Water Quality Management - this includes planning, monitoring and implementation of mitigation works to protect and improve water quality in the receiving environment.

Melbourne Water’s main drain network performs a similar function to that of Melbourne’s arterial roads and freeways. These drains are responsible for transporting water collected in local areas and delivering it to a receiving water way.

D1.3 Other Drainage

There are also some drains associated with major roads owned and maintained by VicRoads. Generally VicRoads’ assets are the pits located in their roads only.

Open drains and underground drainage associated with the railway reserve within the municipality is owned and maintained by VicTrack. Drainage that passes under VicTrack assets is the responsibility of the relevant authority to which the asset belongs.

There are also some private drainage infrastructure assets located within some areas of the municipality and these assets are the responsibility of the property owners.

D1.4 What is a Catchment?

The catchment area of any point is defined by the limits from where surface runoff will make its way, either by natural or man-made paths, to this point. The municipality is within the Werribee Catchment. The main river is the Werribee River which runs through Werribee Gorge. Tributaries of the Werribee River in the City of Melton are Djerriwarrh, Arnolds, Toolern, Yangardook, Ryans and Little Blind Creeks. The Kororoit Creek flows from Toolern Vale through Caroline Springs then directly into Port Phillip Bay.

The Melton Reservoir, which is also known as the Exford Weir (part of the Werribee River), is used for recreation is managed by Southern Rural Water. Melton Reservoir also supplies the Werribee Irrigation District downstream for vegetable growing.

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D1.5 Defining Stormwater

Stormwater is defined as any rain that falls on roofs or is collected via paved areas like drive ways, roads or footpaths. The drainage network within Melton is a combination of pits, pipes, open channels, natural waterways and road reserves, which carry the stormwater and dispose it in creeks, rivers and/or other catchments, and quality protection devices that contribute to maintaining water quality.

The following diagram illustrates a typical drainage concept for urban catchments;

Figure D1 – Urban Stormwater Drainage System

D1.6 Major & Minor Drainage Systems Drainage systems are usually designed as two separate elements. The underground piped network transports stormwater flows for minor storm events. The piped network has sufficient capacity to contain nuisance flows and reduces the frequency and quantity of surface flows.

The major drainage system caters for flows in excess of the piped network and usually consists of floodways, road reserves or natural waterways. The major drainage system prevents stormwater damage to properties and transports the stormwater to the receiving waterways. The frequency at which the overland drainage system operates is determined by the design criteria of the piped network.

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Figure D2 – Drainage system behaviour during minor & major storm events – Australian Rainfall & Runoff 1987

Figure D3 – Possible major & minor design standards – Australian Rainfall & Runoff 1987

D1.7 Storm Frequencies Rain storms vary in intensity and duration and therefore the quantity of water runoff also varies from one occasion to another. Accordingly, drainage systems are designed to be able to cope with the runoff from storms up to a predetermined design standard. This design rainstorm is discussed in terms of the frequency that it may occur, for example, a 1 in 5 year storm event, which is a generally accepted standard for design of underwater drainage networks within metropolitan Vic, assumes a storm of this intensity will have an Average Recurrence Interval (ARI) of five years. Alternatively, it has a 20% probability of occurring each year.

Drainage systems may also be designed for different situations. A system that is designed to provide protection for commercial buildings within a new subdivision where the consequences of flooding are severe may require drainage protection offered through a frequency of 1 in 100, years for example.

Minor

Major

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The greater the frequency interval, the larger the expected storms and consequent runoff, therefore larger drainage pipe sizes required and corresponding cost.

D1.8 Storm Duration Designs for drainage systems can be further complicated by the duration of storm events. Storm duration recognises that a storm event that lasts for 1 hour will produce a different runoff outcome then storm event that lasts for 24 hours. Either may, in fact, cause flooding problems depending on the size of the catchment and the nature of the existing drainage downstream. The former is likely to cause localised flooding of a few houses, whereas the latter may cause a local creek to break its banks and therefore has broader scale flooding problems. Drainage design processes must use judgment to assess the typical storm duration and frequency that will occur for any particular location.

D1.9 Effect of Development in Melton

Increased development in Melton’s catchments (i.e. cases where one land parcel that used to house one dwelling and now housing up to two or three town houses) has led to increased runoff due to the increase in impervious areas. Increased runoff leads to both an increase in peak flow rates and an increase in the total volume of stormwater. This may result in flow levels exceeding peak flow rates or exceeding the capacity of the major and/or minor drainage networks. In turn there is potential increases in nuisance flows, damage to property or personal injury. To negate the effects of development on the drainage system, retarding basins or On-site Detention Systems (OSD’s) are being used by Council to retard the peak flows to suit the capacity of the existing drainage. Note that retarding basins or OSD’s will not reduce the volume of stormwater and over time they can become less effective in retarding flows. Alternatively, in order to ensure that the drainage system is adequate for increased development, the capacity of the existing minor and/or major drainage systems may possibly be increased appropriately.

In addition to increasing peak flow rates and runoff volumes, urban development also increases the level of pollutants that enter receiving waters such as rivers, creeks and the bay. The major pollutants are litter, suspended solids, nitrogen and phosphorous which impact on the receiving waterways by causing sediment build up, increased aquatic plant growth and, in extreme cases, algal blooms. MCC is addressing this issue via the installation of stormwater treatment devices within high priority sub-catchments/catchments outfalls and ongoing monitoring to help prioritise resources.

D1.10 Drainage Asset Types In Melton City

The following types of drainage assets are included in the City of Melton’s stormwater drainage system.

• Pipes - located underground normally within the roadway or nature strip and generally range in size from 300mm in diameter to greater than 1200mm in diameter. On the basis of the capacity of the pipes they have been designed to cater for the underground conveyance of stormwater. Also includes pipes (referred to as road or minor culverts) which transpose water from one side of the road to the other where typically a piped underground system does not exist.

• Pits / Nodes - points of entry or exit for stormwater from the above ground drainage system to the underground drainage system junction pits. The entry pits are typically located as part of the kerb and channel, dish drain or roadway (i.e. in the centre of the road) and are strategically constructed at the lowest point of the roadway to allow for water to take its

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natural course so that it may freely enter the underground drainage system on its own accord by gravity. Junction pits are constructed to provide for changes in the direction and grade of the pipe, as a location for increasing pipe size / capacity, provide for connection of the pipe and/or to allow for a point of entry to inspect and clean the underground drainage system. End walls are designed to protect the pipe at the outlet discharge point.

• Open channels (such as kerb and gutters, dish drains, table drains and swale drains)- act as drainage channels, directing stormwater surface flows into the underground stormwater drainage network via drainage pits or directly to the outlet point .

• Retarding (detention) basins - constructed to provide temporary stormwater storage and thus ease stormwater runoff peaks that are generated by significant storm events for flood protection of downstream urban areas. Retarding basins can also provide additional purposes such as water quality treatment and landscape amenity.

• Dams – a barrier that impounds water or underground streams.

• Levee Banks -any low ridge or earthen embankment built along the edges of a stream or river channel to prevent flooding of the adjacent land

• Gross Pollutant Traps (GPT) - capture litter and other rubbish left in the streets that can be washed down stormwater drains prior to entering the receiving waterways.

• Wetlands – areas that are regularly wet or flooded and have a water table that stands at or above the ground level for at least part of the year.

• Sedimentation ponds - constructed to provide treatment of stormwater by capturing sediments prior to its disposal into receiving waterways.

• Water sensitive urban designs assets – includes bio-retention swales and rain gardens which provides for environmental sound filtration of pollution prior to water entering the draining systems.

Assets not considered in this DAMP are:

• Creeks, unlined channels and rivers • Irrigation and water capture and reuse assets • Stormwater asset owned by Melbourne Water / Other Authorities • Property Stormwater Assets ( Internal Stormwater drainage for properties including Council

Buildings up to Point of Discharge)

Asset type Length / No. Unit Replacement value

Drains Outlets & Pipes 941,787 (m) $230,891,051

Drainage Pits 33,879 (no) $38,422,034

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GPT’s 35 (no) $892,500

Retarding Basins28 3 (no) $574,292

Levee banks29 2 (no) $160,120

Concrete Channels & Lining30 6 (no) $1,149,550

Sump Pits 1 (no) $59,264

Dams 31 7 (no) $1,217,034

Minor Culverts32 - - -

Open Channels33 - - -

WSUD34 - - -

Sedimentation Ponds35 1 (no) -

Totals $273,35,845

Table D1: Drainage Assets covered by this plan as at 01 July 2014

At present data held within the asset register is at a high level only. Data will be assessed with a view to separating assets into more specific sub classes, for example outlets and pipes. This activity is listed as an improvement action at Section 8(D.7) of the DAMP.

Figure D4: Distribution of Asset Classes by $ value covered by this plan as at 1Jul 2014

28 These assets are currently being identified for inclusion in Council’s Asset Register and associated information will be updated in future iterations of this Plan. 29 These assets are currently being identified for inclusion in Council’s Asset Register and associated information will be updated in future iterations of this Plan 30 These assets are currently being identified for inclusion in Council’s Asset Register and associated information will be updated in future iterations of this Plan 31 These assets are currently being identified for inclusion in Council’s Asset Register and associated information will be updated in future iterations of this Plan 32 These assets have been included in the Roads Asset Management Plan 33 These assets have been included in the Roads Asset Management Plan 34 These Water Sensitive Urban Design (WSUD) assets are currently being identified for inclusion in Council’s Asset Register and will be included in future iterations of this Plan. 35 These assets are currently being identified for inclusion in Council’s Asset Register and will be included in future iterations of this Plan.

Distribution of Drainage Related Infrastructure Assets ($ Value) as at 2014

Drains

Pits

GPTs

Retarding Basins

Levee Banks

Concrete Channels

Sump Pits

Dams

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In line with our strategic infrastructure objective to ensure that our fast growth is well planned and managed, and that physical assets are well maintained, Council will consult with external regulators to manage issues arising in areas where both Council and Melbourne Water hold assets. It should also be noted that household drainage systems from within private properties up until the drainage discharge point, are not maintained by Council. These systems are maintained by the property owners.

D2.0 Asset Condition Council does not presently undertake condition assessment of its drainage network. This activity has been programmed as a rolling program over the coming years, commencing with pipes located within flooding hotspots. It is anticipated that data obtained from these inspections shall be included in future iterations of this plan. This activity is listed as an improvement action at Section 8(D6) of the plan.

Council’s overall condition rating scale for stormwater pipes and culverts, is shown below. This rating scale has been documented to provide the community with an objective measurement of these assets. Ranking from 0-6 implies that assets are in the following state, as shown at Table D2.

Condition Rating

Descriptor Condition

0 New Asset A Brand New Asset

1 Excellent Condition Inspection in accordance with Council and Legislative Requirement and Only Cyclic Maintenance Required

2 Very Good Minor Maintenance Required in Addition to Cyclic Maintenance

3 Good Moderate Maintenance Required in Addition to Cyclic Maintenance

4 Average Significant Maintenance Required. Capital Renewal or upgrade may be required within the next 5 years

5 Poor Significant renewal/upgrade required within the following 2 years

6 Very Poor End of Life provides no service potential

Table D2 – Condition Scores for Rating Pipes and Culverts

D2.1 Current Condition Current condition is based solely on age of the asset. As a growth council the majority of assets are believed to be in very good or better condition. Following inspection programs identified above this data will be more refined and documented in future iterations of this plan. This activity is listed as an improvement action at section 8 of the plan (D.8). In addition Council has established useful lives for its stormwater assets as detailed in this plan. These are shown below;

Asset Class Material Useful Life (Years) Residual Value

Pipe Concrete 100 0%

Pipe PVC 100 0%

Culvert 100

Table D3 – Asset Residual Value

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D3.0 Levels of Service

D3.1 Customer research and expectation D3.1.1 Annual Customer Satisfaction Survey- Stormwater Drainage Assets

Melton City Council’s customer satisfaction survey is a written questionnaire which surveys a sample of residents on their level of satisfaction with Melton City Council’s Road Maintenance services (which also includes stormwater drainage related services).

Figure D5 identifies the number of respondents and their satisfaction with the maintenance activities delivered by Council for 2013.

Figure D5: Customer Satisfaction Survey Result Drain Cleaning and Maintenance 2013

The results of this survey indicate that on the whole, residents are typically satisfied with the current maintenance level of service delivered by Council. Of the 142 responses with regards to stormwater drainage maintenance and cleansing, 86 respondents (60% of those surveyed) where generally satisfied or very satisfied.

D3.1.2 Annual Customer Satisfaction Survey- Road Assets (Including drainage in road reserves)

In addition to the customer satisfaction survey Council undertakes and assessment of residents request for work. Work orders arise for planned maintenance as well as from inspection and Customer Actions Requests (CAR).

0

10

20

30

40

50

60

70

Cleaning and Maintenance of Stormwater Drains

Very Satisified

Generally Satisfied

Somewhat Dissatified

Very Dissatisfied

No Opinion

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Figure D6: Work Orders Resulting from Customer Action Requests and Routine Inspections July 2011-Jun 2014

When interrogating Council’s CAR system, the number of stormwater blockage requests has dropped by 42% when compared to 2011/12, however the number of stormwater pit maintenance requests have remain relatively static with a slight decrease in the most recent year. This is reflective of improved mapping practices and upload of data from the asset register to the maintenance contractor and of subsequent proactive cleaning activities. It is also the result of climatic changes which have seen lower annual rainfalls and more frequent extreme events across the municipality. When compared to the various maintenance services that Council delivers on its road infrastructure assets, stormwater drainage requests rank third behind requests with regards to footpaths and signs respectively.

D3.2 Legislative requirements Melton City Council complies with the following legislative and regulatory requirements. It should be noted that these, in addition to design specifications and standards form the minimum levels of service for Councils stormwater drainage and associated infrastructure.

Legislation Requirement

Local Government Act 1989 Sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by asset management plans for sustainable service delivery.

National Asset Management Framework Legislation 2010

Focuses on long term financial sustainability and provides a mandate to have long term strategy financial statements and annual reporting mechanisms. AM plans are likely to be audited.

Occupational Health and Safety Act 2004

Aims to secure the health, safety and welfare of people at work. It lays down general requirements which must be met at places of work in Victoria. The provisions of the Act cover every place of work in Victoria. The Act covers self employed people as well as employees, employers, students, contractors and other visitors.

Occupational Health and Safety Regulations 2007

Outlines minimum actions to be taken to comply with OH&S Act. It explains plant such as Lifts, boilers maintenance, inspection and testing and WorkCover registration requirements.

Water Act 1989 Includes providing for the integrated management of all elements of the terrestrial phase of the water cycle (S1). The Act gives the rights and responsibilities for the use flow and control of water e.g. S16. The Act creates the waterway management authorities (e.g. Melbourne Water).

Catchment and Land Protection Act 1994

Includes setting up a framework for the integrated management and protection of catchments (S1). The Act establishes the catchment management authorities (S11).

Australian Rainfall and Runoff Provide “Australian designers with the best available information on design flood estimation” and in turn “providing a sound basis for the sizing of works and structures that are subject to floods”.

2011/12 2012/13 2013/2014 stormwater blockage 234 136 166 stormwater pit maintenance 253 256 225

0

100

200

300

400

500

600

No

Of C

ARS

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Environment Protection Act 1970 To provide a legislative framework for the protection of the environment in Victoria having regard to environment protection principals (S1). Establishes the EPA and details the powers, duties and functions of that authority (Part II).

Building Act 1993 and Building Regulations 1994

To provide for the regulation of building and building standards (S1). Provides for: -

consent from Council to build over easements vested in Council (reg 2.4);

a report to be gained from Council on the point of discharge (reg 5.9);

control of building in flood prone areas (re 6.2)

Melton City Council Precinct Structure Plans

A strategic plan that guides the delivery of urban environment within the municipality. It sets the vision for how land should be developed, illustrates the future urban structure and describes the outcomes to be achieved by future development. It details the form and conditions that must be met by future plan use and development. It also addresses the requirements of the EPBC Act 1999 in accordance with the endorsed program under part 10.

Table D4: Legislation affecting Melton City Councils DAMP

In addition, Melton City Council where appropriate, complies with the following design specifications and Australian Standards:

Title Purpose - Description

Melton City Council Design Manual

Provides the standards of design and construction for those assets that will vest in Council following the development of land.

Melton City Council Stormwater Drainage Requirements for Development Works

Provides the requirements for stormwater surface runoff for new developments within the municipality.

Urban Stormwater Best Practice Environmental Management Guidelines

Supports the preparation of plans or strategies for the environmental management of stormwater in urban areas and the assessment of current management practices.

Various waterway and catchment strategies Specific strategies and plans for the management of catchments and waterways.

Table D5: Design Standards used for Melton City Council Drainage Network

Collectively these documents direct Council to provide safe, relevant and responsive infrastructure assets which consider the needs, current and future, of our community.

D3.3 Stormwater Drainage Hierarchies

Melton City Council does not presently have a documented stormwater drainage asset hierarchy that classifies the drainage system / network into groups. Council shall undertake to develop a model based on the current road hierarchy as documented in Council’s Road Asset Management Plan. Proposed drainage hierarchies will be reviewed and included in future iterations of this Plan, once further drainage information is collected with respect to drainage capacity studies and drainage criticality in line with the IPWEA Stormwater Drainage Practice Note 5 Guidelines and Councils Flood Management Plan. This activity is listed as an improvement action at Section 8 (D.9) of this plan.

D3.4 Current Levels of Service

D3.4.1 Community Levels of Service

To date minimal data has been collected which links directly to community satisfaction regarding drainage provision and maintenance. There is opportunity to collect data through the Customer Satisfaction Survey, conducted annually by the Road Maintenance Contractor. This improvement action is included at section 8(D.2) of the DAMP.

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D3.4.2 Strategic Levels of Service

Melton City Councils Strategic Levels of Service that have been adopted as a result of this DAMP are tabulated below as:

Key Performance Measure

Strategic Level of Service Performance Measure Process

Performance Target Current Performance

COMMUNITY LEVELS OF SERVICE

Quality Performance in providing and maintaining stormwater drainage infrastructure.

Customer Survey

Customer requests

<=3 in satisfaction

< 400 per annum

2.9 (2013)

392 (2013)

Responsiveness Response time to customer requests

Time taken to close stormwater calls

> 80% of all requests adequately responded to within target.

To be determined*

Table D6 - Strategic Levels of Service

Council should also review levels of service that are applied to protect the community in the event of major flooding, and in accordance with requirements of the flood management plan. This activity is listed as an improvement action at Section 8(D.10) of the DAMP.

D3.4.3 Capital Levels of Service – New Assets, Reconstructed Assets, Upgraded Assets The built nature of new drainage systems will always be provided in accordance with the:

• Precinct Structure Plans; • Council Design Standards36

• Australian Rainfall and Runoff Guidelines; and

;

• Relevant Australian Standards.

In addition, Council has adopted the following design criteria where new developments works are undertaken or where drainage or road renewal works are undertaken.

Location / Hierarchy Design Criteria

Residential Areas 1 in 5 ARI

Industrial or Retail Areas 1 in 10 ARI

Road Reserve / Drainage Reserve 1 in 100 ARI

Table D7 – Design Criteria

These specifications have been adopted / documented to ensure the quality of new public assets, the compatibility of private works with Council's infrastructure, and the protection of the environment from the impacts of development.

36 Council’s Engineering Department maintains Standard Drawings and templates for most asset classes, these to produce a standard set of construction drawings. The construction drawings and estimates are either issued for works for internal works unit or alternatively tendered usually on a schedule of rates basis.

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D3.4.4 Technical Levels of Service

Council has defined its technical LoS for drainage in the following documents:

• Melton City Council Road Management Plan Version 4.0, May 2013 • Melton Shire Council roads maintenance contract, CONTRACT 11/004 – Provision of Road &

Drainage Maintenance Service. Full listings of the technical responses within the contract have been documented in Appendix 1 to this plan.

These documents identify:

• The tasks or work expected to be delivered i.e. repair pit, inspect pipe; • The schedule of inspections to be undertaken of specified matters at specified intervals; • The priority with regards to rectification assigned to each intervention level; • The type of action that will be carried out against each intervention level; and • Provision as far as practicable for works that result from events such as emergencies and

natural disasters.

This Drainage Asset Management Plan has differening maintenance interventions, inspection frequencies and response times for each stormwater drainage classification, as defined in Appendix 1.

D3.5 Desired levels of service At present indications of desired levels of service are obtained from various sources including feedback from the community into the Council Planning process, resident’s feedback to Councillors and customer service requests. Council has yet to fully quantify desired levels of service. This will be undertaken in future revisions of this Plan and is noted as an improvement action at Section 8 (D.2)

D4.0 Future Demand D4.1 Demand Drivers Drainage networks across the municipality will be driven by three key factors;

• Population Growth; and • Existing Hotspots and Flood management issues; • Climatic Conditions and Weather Events

Assessment and consideration of these two factors in planning and development as well as update of the existing network are crucial to delivering well maintained assets that meet the needs of the community

D4.2 Demand Forecast

Councils’ mission is to “support the growth, wellbeing and aspirations of our community through leadership, excellence and inclusion”.37

Through stakeholder research and consultation Council has established four strategic themes. These provide focus for future investment, enable connection with the community, support transparent and accountable management and provide a strategically planned place to work, live and play. The four themes are;

This mission is to be considered in conjunction with Councils strategic themes and their supporting objectives when developing ‘bottom up’ asset management practices.

37 Melton Shire Council – Council Plan 2013-2017

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• Managing our growth; • A well governed and leading organisation; • Diverse, confident and inclusive communities; and • Community health and wellbeing.

In addition to these themes the results of available surveys and community consultative processes and organisational strategies are reviewed and included in future iterations of this plan. This DAMP aims to capture and document processes for which assist in meeting all of these considerations now and into the future.

Demand factor Present position Projection Impact on services

Population 123000 estimated population 2014

241613 by 2031 (based on 4.45% growth from 2011 Census recorded population)

Population growth will be mostly supported by green-field development meaning a greater number of gifted assets to Council. This will result in greater need for consideration of draining assets including retarding bases and GPTs. In addition development of existing lots to incorporate additional dwellings will impact on flow rates and volumes in within current networks. Appropriate On Site Detention facilities will be required to manage flow.

Table D8 - Demand Factors, Projections and Impact on Services

When considering the planning and programming of capital and maintenance works, the demand drivers include:

• Rapid asset growth; • Increased age of these assets; • Increased community expectation of accountability of asset maintenance; • Increased community expectation of, for example, quality of building functionality; • Remaining useful life, function and capacity of existing infrastructure; • Early failure of some donated assets; and • Increased costs as a result of supply / purchase of materials and labour.

D4.3 Changes in technology Technology changes that could affect the delivery of services covered by this DAMP are documented below;

Technology Change Effect on Service Delivery

Aquifer storage Water as a commodity can be harvested and stored underground only to be retrieved at a later time when required to irrigate reserves, etc. Groundwater studies would need to be undertaken to determine the suitability of this and additional infrastructure (pipes, pumps, etc.) required to replenish and extract water from underground aquifers. Would also have an impact on the amount of water entering the stormwater drainage system.

New side entry pits New pits come with grates to make it easier and more cost effective to inspect, maintain and clean. Life-cycle costs could be greatly reduced.

Water Sensitive Urban Design (WSUD)

Reduced flow rates from new developments

Higher quality runoff

Greater detention storage and greater capacity for treatment re-use of stormwater

Water course management techniques

Removal of trees and weeds along water courses and planting of native flora.

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Trenchless Technologies By using trenchless methodologies, this will have a better impact on Council’s assets as the soundness of the road and footpath pavements is not compromised when installing new services within the road reserve.

Drain Rehabilitation Technologies

Potential Costs savings and reduced impact of utilising technologies such as slip lining and other techniques.

Drain Inspection and Cleaning Technologies

Less reliance on open excavation techniques

Table D9 - Changes in Technology and Forecast effect on Service Delivery

In time, Council will explore these options with regards to the overall impact on this DAMP

D4.4 Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Opportunities identified to date for demand management are shown in Table D10.

Demand factor Present position Projection Impact on services

Higher density developments

Large allotments Smaller allotments Increased impervious areas leading to a greater requirement for stormwater drainage infrastructure. Improved access to waterways leads to more illegal dumping of rubbish.

Customer Expectation

Stormwater is channelled and piped to the nearest creek i.e. it is a nuisance, get rid of it.

Greater re-use of stormwater for irrigation. Treat it as a commodity – harness and distribute to areas that most require it.

Larger areas of land required to build basins and wetlands and an increase in operational costs to pump water around the municipality.

Customer Expectation

Stormwater plumbed to the street.

People will install tanks to collect and re-use their own rain water.

Positive impact – stormwater capacity will be slightly reduced if more water is contained on-site.

Environmental Awareness

Trees are removed and banks widened along creeks and waterways to aid the flow of stormwater.

Creeks are considered a place of natural beauty and more importance will be placed on the existing structure and vegetation along waterways making it politically more difficult to modify.

Places more pressure on the pipe system and the need for alternative storage assets.

Environmental Awareness

Minor control of pollutants entering streams and waterways.

Greater restriction on the quality of run-off water particularly from roads and reserve areas

Increased use of filters, possible change in maintenance practises – more street sweeping and a different regime for maintenance in reserves adjacent waterways.

Environmental Awareness

Some stormwater is captured in storage basins to reduce flow rates but very little is currently re-used for irrigation, etc.

The EPA State of the Environment Report recommends a doubling of “the capture and re-use of stormwater and waste water by 2012” (R2.3)

More storage basins for capturing water and a greater network of pipes for the re-use.

Climate Changes & Weather Events

Infrequent Major Weather Events Frequent extreme weather events with less seasonal rainfall.

Higher frequencies of extreme flooding. Reduction in ongoing self cleansing of pipe network

Table D10 - Demand Management Plan Summary

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Clearly the demand on Council drainage infrastructure is going to increase proportionally with the predicted population growth however at this point Council is still developing formal demand management plans as more data on Councils Asset stock and demographics is collected. This, combined with recommendations of the Flood Management Plan and Flood Emergency Management Plan, will better enable Council to review the impacts and pressures of population growth on these assets. Council is formally addressing these requirements as part of longer term planning processes. Programs to meet known growth and requirement are detailed further below and at section 8(D4) of this plan.

D4.5 Asset Programs to Meet Demand

D4.5.1 New Drainage Assets from Precinct Structure Plans & Subdivisional Growth

Drainage related infrastructure required for new developments is built by the developers and/or their contractors, in accordance with Council’s design standards and industry guidelines. Subdivisional plans are submitted to and approved by Council. Council staff supervises the works to ensure compliance to Council’s specifications.

The built nature of new drainage systems will always be provided in accordance Sub-section 3.4.3. These specifications have been adopted / documented to ensure the quality of new public assets, the compatibility of private works with Council's infrastructure, and the protection of the environment from the impacts of development. For road-related drainage it is standard Council practice to investigate the need to replace or upgrade the existing drainage in conjunction with major road works.

When the works are completed the developer hands these assets over to Council for ownership and maintenance for the remainder of their useful life. However, a defect liability period of 3 months is applicable to all road related assets created by the developer.

At present, Council has not identified any additional stormwater infrastructure works to be delivered in conjunction with the PSP developments either currently under construction or due to commence within Melton North, Toolern, Rockbank North, Taylors Hill West and Diggers Rest.

However, it should be noted that some assets which require works as identified from the flood management plan and located within these PSP areas will be assessed and if not considered a high risk, will be deferred for upgrade / expansion works in conjunction with the timeframe of when these developments will occur.

As a result of PSPs currently under development or commencing within the City it is anticipated that the network will extend significantly to accommodate our rapid growth. A summary of the expected or anticipated value of the major drainage network associated with PSP development and associated subdivisions is shown at table D11.

Table D11 – New Assets from Subdivision Growth - Estimated Core Stormwater Infrastructure Network

Current Asset Replacement Value

Average Annual Growth ($)

Estimated Value of Assets at added to network between 2013- 2030

Estimated Asset Network Value 2030

Percentage increase. (Approx)

Pits $34,329,700.00 $1,824,565 $31,017,605 $65,347,305.00 53%

Pipes $200, 153,507.00 $4,661,496 $3,402,609,619 $279,398,939 72%

Total $234,483,207.00 $344,746,244.00 68%

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D4.5.2 Capital Program

As identified earlier at this sub-section Melton City, in conjunction with Melbourne Water, have undertaken flood studies and have documented these in the Flood Management Plan. Locations where deficiencies in service performance exist are currently and progressively being identified through the Floodplain Risk Management process, in consultation with Melbourne Water and will be prioritised as part of a long term rolling program of works. This is particularly relevant where location coincide with major road rehabilitation projects.

Where a section of road has reached the end of its effective life and is due for rehabilitation, it is standard Council practice to analyse in detail the associated drainage system so that, if appropriate, both asset classes can be renewed or upgraded at the same time.

In addition customer requests and ongoing maintenance task may be used to identify hotspots where upgrade or renewal of drainage assets are warranted. These areas are considered in due course and with applied rigor to risk and consequence of either undertaking works immediately or

D4.5.3 Estimated Valuations and Maintenance

Council presently owns and is responsible for maintenance of stormwater infrastructure assets with an asset replacement value in the order of $280 m. Based on current PSP planning forecasts it is estimated that the current stormwater asset portfolio will increase to $312m by 2023. This equates to a 13% increase which near doubles Council’s current stormwater asset portfolio. Tables 12 and 13 illustrate increased stormwater related infrastructure asset growth between 2013 and 2019.

Table D12 – New Drainage Assets from Growth - Pipes 2014-2019

$210,000,000.00

$220,000,000.00

$230,000,000.00

$240,000,000.00

$250,000,000.00

$260,000,000.00

$270,000,000.00

2015 2016 2017 2018 2019

Asset Growth from Development - Pipe Network - 2014-2019

Projected Growth

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Table D13 – New Drainage Assets from Growth- Pits 2014-2019

Acquiring these new assets will commit Council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. Sub-section 5 of this plan, Lifecycle Management Plan, details estimated operating and maintenance costs based on current LoS.

D4.6 Stormwater Design, Construction Standards & Specifications The following design criteria has been adopted by the City of Melton with regard to the drainage network.

• Design ARI for minor storm event, residential areas – 5 years

• Design ARI for minor storm event, commercial & industrial areas – 10 years.

• Design ARI for major storm event – 100 years

• Overland flow paths to be contained within road reserves, designated floodways or natural waterways.

• All parts of the overland flowpath to be continuous so that there are no trapped low points within the drainage network.

• Property floor levels to be 300mm above the peak flood level during a 1 in 100 year storm event.

• Minimum pipe diameter for road runoff – 300mm

• All future properties to discharge to pipe rather than to kerb and channel.

• Where a private developer is generating infill subdivisions, sufficient documentation should be provided so that Council can check and approve the proposed drainage network prior to construction.

In addition, Council utilises the following standards and guidelines for construction of new stormwater drainage infrastructure and for the expansion, upgrading, renewal and maintenance of existing infrastructure assets:

• Melton City Council standard drawings;

• Melton City Council Stormwater Drainage Requirements for Development Works;

$-

$10,000,000.00

$20,000,000.00

$30,000,000.00

$40,000,000.00

$50,000,000.00

$60,000,000.00

2014 2015 2016 2017 2018 2019

Asset Growth from Development - Pits - 2013-2030

Projected Growth

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• Australian Rainfall and Runoff Design Criteria;

• Residential Code of Practice; and

• Aus-Spec specifications.

D4.7 Legal Point of Discharge Properties can have varying arrangements for discharging stormwater, including:

• Direct connection to drainage pipeline.

• Pipe connection to kerb and channel.

• No piped drainage outlet.

Council requires developers who develop within existing infill areas (i.e. existing houses that are rebuilt or existing blocks which are developed into multiple dwellings) to connect all new drainage to a suitable Council drainage pipeline under the following arrangements:

• Developer / builder to design and construct all internal drainage.

• Developer / builder to design the required outfall drain and obtain Council approval to the design.

• Developer / builder to construct the first 80 metres of drain extending from the property at their cost.

• The new outfall drain external to the property is to become a Council asset.

It should be noted that where there are a number of properties which currently do not have adequate drainage discharge points, Council will instigate the feasibility of constructing new drains as part of the capital works program.

D4.8 House Siting Guidelines Any house siting guidelines should be consistent with the drainage system performance objectives and enforceable under current legislative and administrative systems.

The Building Regulations Act 1994 requires any proposed building to be located such that the floor level is at least 300 mm above the 100 year ARI flood level. The Building Regulations Act 1994 also requires that life, health and safety issues are considered in the siting of houses and development of sites in areas subject to overland flow. With regard to life, health and safety issues in relation to overland flow the following issues should be considered:

• Frequency of flooding.

• Duration of flooding.

• Depth and velocity of overland flow.

• Potential egress paths from the property.

Melbourne Water’s Drainage Design Guide was released in February 1999 and provides guidelines regarding safety issues related to urban flooding. The guidelines deal with a number of situations including flow along roads, flow over road embankments and flow through private property, and suggest limits on flow which consider the primary use of the land and hazards to vehicles and pedestrians. This report also includes flooding hazard criteria (see Sub-section 3, Step 1) that has been used in the assessment of Council’s drainage system. To enable houses to be sited in Melton City Council in accordance with the Drainage System Performance Objectives the following process has been recommended:

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Identification of properties that may be subject to overland flow with reference to:

• Melbourne Water’s flood maps for all Melbourne Water main drains and waterways (incorporated into Council’s Planning Scheme as Land Subject to Inundation Overlays and Special Building Overlays if not already done so).

• Council’s Drainage Feature Plans.

This information should be referred to in the planning process to ensure that houses are sited in an appropriate location.

D4.9 New Subdivision and Development The continuation of large scale Greenfield subdivision developments is very likely to occur in Melton. Over the past five years, Council’s drainage network has seen an increase of some 264kms of pipes and 10,100 pits. This is an increase of approximately 28%.

Subdivision developments have the potential to negatively impact on existing drainage networks and receiving waters by increasing stormwater runoff and increasing pollutant loadings.

Strategies that have been considered to address the effect of increased runoff include:

• Requiring the developer to submit a stormwater management plan for the proposed development. The plan should clearly indicate how the site is to be drained and demonstrate that the development will not have an adverse impact on downstream conditions. Large developments, where connecting into drainage assets that do not have spare capacity, should be required to provide retarding basins that contain peak discharges to those that occur under existing conditions. (This form of retarding should not be compared with OSD systems for individual sites).

• Contractors should be required to comply with the EPA publication “Environmental Guidelines for Major Construction Sites,” (EPA 1995). This publication focuses on controlling pollutants, particularly sediments, during construction and refers to techniques such as silt screens, tyre washes and sediment ponds. Regular inspections may be required to ensure compliance with the guidelines.

• Future road networks and allotment layouts should provide adequate overland flowpaths to drain the proposed development in addition to flows from external catchments. New developments should not be permitted to alter existing catchments unless it can be established that doing so will not exacerbate downstream drainage conditions.

• Water Sensitive Urban Design (WSUD) techniques can assist in attenuating stormwater flows in addition to providing water quality advantages. Swales and filtration media help increase time of concentrations and attenuate peak flow rates, while an increase in pervious areas will reduce runoff volumes. While WSUD philosophies should be encouraged, their effect on reducing peak discharges from a development should be carefully assessed before drainage design criteria are relaxed.

In accordance with current legislation and best practice, it is recommended for subdivision developments that the following criteria is met:

• Developer to submit Stormwater Management Plan for Council approval.

• Compliance with EPA “Environmental Guidelines for Major Construction Sites,” (EPA 1995).

• Provision of adequate overland flow paths.

• Water Sensitive Urban Design (WSUD) techniques considered to improve water quality.

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• Compliance with EPA / CSIRO “Urban Stormwater - Best Practice Environmental Management Guidelines.” (CSIRO 1999)

D4.10 Commercial and Industrial Areas Stormwater runoff from commercial and industrial sites can place additional loads on existing drainage infrastructure. Increased runoff is usually associated with commercial and industrial areas due to the increased impervious areas resulting from extensive roof areas and car parks. In addition to this, the piped drainage network is often sized to cater for a 1 in 10 year storm event to provide a greater level of flood protection to buildings and reduce the likelihood of street flooding. This level of flood protection is consistent with the desired minor drainage system performance across the entire Municipality.

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D5.0 Lifecycle Management Plan

D5.1 Background Data

5.1.1 Physical Parameters

The assets covered by this DAMP are shown below:

Pipes All pipes and minor culverts that are <2500mm diameter. Note: major culverts are included in the road asset management plan.

Pits All kerb entry pits, junction boxes, etc.

Inlets/Outlets -

Headwalls Points where water enters or exit the system and typically where headwalls are located.

Structures Any other man-made structure not else

classified including gross pollutant traps (GPTs), tanks, etc.

Open Channels Any man-made formed and possibly lined channel for the distribution of water.

Storage / Detention Basins

Any man-made basin for the storage of stormwater. Includes detention and retention basins.

Table D14 Assets Covered by this Plan

Parts A and B of this sub-section detail the life cycle management of pits and pipes across the municipality. Other drainage assets are not detailed in this iteration of this plan as insufficient data exists with regard to condition and management. It is envisaged that asset data shall be improved and these shall be incorporated in future iterations of this plan. This activity is listed as an improvement action at Section 8 (D.1)

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When considering the planning and programming of capital and maintenance works, the demand drivers include:

• Rapid asset growth; • Increased age of these assets; • Increased community expectation of accountability of asset maintenance; • Increased community expectation of, for example, quality of building functionality; • Remaining useful life, function and capacity of existing infrastructure; • Early failure of some donated assets; and • Increased costs as a result of supply / purchase of materials and labour; and • Climate Change and Extreme Weather Events

5.1.2 Asset condition, valuation and sustainability

By understanding the condition of Council’s drainage assets and the various types of distresses that affect Council’s assets, Council can utilise this data to endeavour to maintain the level of service the community wants, in the context of affordability and also minimise the risk of asset failure. The consequences of drainage failures can include legal liability and downstream impacts on Council and Melbourne Water drains and receiving waterways.

There are many reasons why existing drainage assets fail/deteriorate and therefore do not meet current performance standards and community expectations. Among the most common reasons for failure are the following:

• Damage by service authorities when installing / constructing their infrastructure within Council’s road reservation.

Figure D7 – Service authority conduit passing through Council’s underground pipe and causing blockages.

• The predominant soils within the municipality are clays, which are highly reactive and expand and contract with changes in moisture content. The movement of the soil can generally cause the drainage pipes to move from their original constructed alignment, becoming disjointed and this is especially an issue for the older butt-jointed pipelines.

• Tree roots searching for water entering cracked pipes or at the pipe joint, causing permanent structural damage or blockage in many instances.

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Figure D8 – Tree roots entering Council’s underground pipe via cracks or at butt joints and causing blockages and displacement of the pipe.

• Blockage of the pipes and pits from some building sites; allow soil, concrete and rubble to enter the underground drainage system. Also house-hold and street debris over time can contribute to blockage of the pipes and pits.

Figure D9 – Debris from building sites entering the underground drainage system.

• Extreme weather events that damage drainage infrastructure.

D6.0 Financial Summary This sub-section contains the financial requirements resulting from all the information presented in the previous sections of this asset management plan. The financial projections will be improved as further information becomes available on desired levels of service and current and projected future asset performance.

6.1 Funding Strategy Expenditure for capitalised renewal works is guided by Council’s Asset Capitalisation Policy. The capitalisation threshold for renewal works is prescribed by s4.5 Rule 2 and detailed in “table 4.7 – Asset Category/Asset Component tables” The threshold for drainage component renewal is currently set at $5000. Components with a value less than $5000 are considered maintenance.

Capitalised component renewals are included in Council’s 10 yr Capital Works program.

The financial projections are shown in the following bar graph for planned operating (operations and maintenance) and capital expenditure (renewal and upgrade / expansion / new assets) over the following 5 years. Table 12 and 13 illustrates projected capital growth of storm water assets. Figure D10 illustrates current and projected required maintenance expenditure based growth.

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Figure D10: Known 5 Year Operating (Road Maintenance Contract) and Capital Expenditure Drainage Related

Infrastructure 2014-2019. Current Contract expires at 2017.

Industry standards38

establish that typical maintenance expenditure is calculated at between 1-2% of asset replacement value. Based on expenditure of 1.5% of asset value the following table illustrates projected maintenance required to maintain assets based on this recommendation.

Figure D11: Recommended Maintenance Expenditure Required 2015-2020 to support

current service levels associated with capital growth

Maintenance expenditure predictions recommend higher funding than is presently allocated by Council. Given that the community reports a good to high level of satisfaction associated with

38 International Infrastructure Management Manual

$- $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00 $900,000.00

$1,000,000.00

2015 2016 2017 2018 2019

Capital Growth Drainage Assets 2015-2019

Capital expenditure Maintenance Expenditure

$-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

2015 2016 2017 2018 2019

Current & Predicted Maintenance Expenditure Stormwater Assets 2015-2019

Desired Maintenance Expenditure

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stormwater drainage maintenance Council should undertake to evaluate the benefit of such an increase and also should determine how such additional allocation would be applied. Such investigation and reporting is listed as an improvement action at section 8(D5) of this plan.

Planned capital expenditure has at the time of writing been limited to water sensitive urban design, underground drainage flood protection works and culvert construction and replacement. The PSPs do not specifically identify upgrade of drainage works however these would be undertaken in association with road and other civil infrastructure development. At present these works are established during the design and development process. It is anticipated that, as Councils asset system matures that more strategic thought and direction will be documented with regard to stormwater infrastructure. In addition it is Councils intent to seek condition assessment of the drainage network, the results of which will be used to inform capital works programming. Section 8(D.6) of the AMP identifies this as an improvement action.

D6.2 Valuation forecasts Asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Melton City Council and from assets constructed by land developers and others and donated to Melton City Council. Table 16 illustrates that Councils drainage related infrastructure asset portfolio will increase by approximately 14% to $312 million from a forecast base of $270 million in 2014. Based on current depreciation rate of 2% annually asset depreciation will increase proportionally.

Table D16: Predicted Value of Drainage Related Infrastructure, Written Down Value and Annual Depreciation 2014-2018.

Written Down Value will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets. Forecast of the asset’s carrying amount is shown in the above table.

2014 2015 2016 2017 2018 Annual Depreciation $2,797,454.73 $3,020,001.09 $3,252,441.36 $3,503,476.85 $3,771,825.13 Replacement Value $270,970,161.0 $286,256,488.3 $309,157,007.3 $333,889,567.9 $358,622,128.5 Written Down Value $233,381,402.00 $243,113,615.5 $262,693,559.3 $283,839,898.6 $304,738,912.3

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

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D6.3 Key assumptions made in financial forecasts This sub-section details the key assumptions made in presenting the information contained in the asset management plan and in preparing forecasts of required operating and capital expenditure and asset value, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this infrastructure and asset management plan are:

• The current levels of service will remain constant over the life of this DAMP.

• The treatment and maintenance costs are based on Council’s current schedule of rates and may not directly compare to Councils internal service provision actual costs.

• All predicted financial figures are based on 2013/14 rates and are not adjusted by the inflation rate for the particular year of works.

• The projected population growth will be in line with that documented in Section 4.

• The projected asset stock will be in line with that documented in Section 4.

It is envisaged that accuracy of these future financial forecast will be improved in future revisions of this asset management plan by the following actions:

• Further refinement and improvement of the prediction modelling life-cycle paths and decisions; and

• Refinement of the levels of service currently being delivered via consultation with the community.

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DA1 General- Stormwater Pipes and Minor Culverts The Drainage Asset Management Plan (DAMP) comprises Sub-section 2 of the Councils Asset Management Plan. Part A of the DAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for pipe and minor culvert network owned by the City of Melton. Assets covered at Part A include the following;

Asset Subclass Description

Stormwater Pipe Pipes which are typically laid underground to transport excess stormwater to receiving waterways. These may be constructed of concrete or PVC

Minor Culvert A pipe that traverses across a roadway (under asphalt) with the purpose of directing rainwater to the pipe network, waterways or to areas of absorption.

Table DA1 – Asset Subclasses –Stormwater Pipes and Culverts

DA2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Road Management Plan • Planning Scheme and Precinct Structure Plans • City of Melton Flood Management Plan • City of Melton Flood Emergency Management Plan

DA3 Capacity and Performance

Melton City Council’s stormwater pipes are generally provided to meet design standards where these are available. In general terms it is believed that the drainage network is meeting capacity and performance requirements and that projected growth and development outlined in precinct structure planning combined with capital upgrade will accommodate the municipalities growth and expansion.

DA4 Asset Valuation & Sustainability

The table below illustrates the current value of pipes and minor culverts across the municipality as at July 1 2014. Assets were last re-valued at 1 July 2014. Assets are valued at Greenfield rates, however at renewal stages are valued at Brownfield rates. The valuation summary for Councils stormwater pipes and culverts as at July 2014 is;

Current Replacement Cost $230,891,051

Depreciated Replacement Cost/ Written Down Value

$201,156,689

Annual Depreciation Expense $2,293,589

Table DA2 – Asset Values - Pipes & Culverts

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and

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renewal ratios (based on a 5 year average) as well as service potential across the stormwater pipe and culvert asset category. Annual asset consumption for pipes and culverts is also shown. This data is used by Council to apply predictive modelling scenarios to the asset groups thereby allowing funding scenarios to be tested and suitable recommendations for capital renewal, upgrade and the requirement for new assets to be made.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio

Capital Expenditure/Depreciation

1.6%39 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average

Desired Capital Expenditure

NA 60-80%

Remaining Service Potential

Written Down Value / Replacement Value

87% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

0% 0-3%

As indicated Council is not presently allocating sufficient funds to meet sustainability targets. It should be noted however that drainage assets have an extensive useful life of 100 years. Council allocates funds to improving drainage conditions in flooding hotspots. As condition data is obtained it should be reviewed to assess remaining service potential and requirement for additional expenditure. This activity is listed as an improvement action at Section 8 (D.8) of the DAMP

DA5 Asset Maintenance

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

DA5.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities 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 improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, replacing a damaged section of pipe. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends for all stormwater drainage assets are shown below.

39 Based on average capital expenditure of $500,000 between 2014-2018 for delivery of Drainage Capital Renewal and Upgrade

Table DA3 – Asset Sustainability - Pipes and Culverts

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Year Maintenance

Reactive Planned Cyclic

2012/2013 $0 $818,915

2013/2014 $0 $937202

2014/2015 $0 $971747

Table DA4 -Drainage Maintenance Expenditure 2012-2015

Planned maintenance work is calculated at 5% of Councils total maintenance expenditure40

Proactive maintenance for pipes and culverts is conducted in accordance with Councils Road management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1.

. Maintenance expenditure levels are considered to be adequate to meet required service levels. Future revision of this asset management plan will include linking required maintenance expenditures with required service levels and review of expenditure following rolling condition assessment of the drainage network.

Future maintenance costs are forecast to trend in line with the value of the asset stock as shown at sub-section 4.5.3 to this plan, figure 12. Maintenance expenditure is calculated (following the current road maintenance contract) at a rate equivalent to 0.5% compounding (from 2016). The table below illustrates projected expenditure for maintenance of Councils Stormwater Pipes and Culverts 2014 – 2019.

Figure DA2 – Maintenance Expenditure – Stormwater Assets 2014-2019

40 Based on total expenditure of approximately $21m expenditure 2014 over all asset classes in this plan

$900,000.00 $920,000.00 $940,000.00 $960,000.00 $980,000.00

$1,000,000.00 $1,020,000.00 $1,040,000.00 $1,060,000.00 $1,080,000.00

2014 2015 2016 2017 2018

Expe

nditu

re

2014 2015 2016 2017 2018 Road Maintenance Contract $971,747.00 $971,747.00 $971,747.00 $1,000,993.00 $1,077,664.00

Current & Planned Maintenance Expenditure Stormwater Drains and Minor Culverts 2014-2018

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Industry best practice recommends that maintenance of assets should be calculated at between 1-2% of asset replacement value41

It should be acknowledged that where substantial maintenance is carried out on drainage infrastructure there may be resultant improvement in the overall condition of the asset. Although not formally recognised at time of works it is anticipated that improvements will be recognised during three yearly condition inspection audits and data updated accordingly at that time.

however given that many of councils drainage assets are newer it is anticipated that an increase consistent with current ratio (0.5%) will ensure ongoing levels of service are maintained in the short term. As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

DA6 Renewal, Replacement, Creation and Upgrade Plan

Renewal expenditure is major work which does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original capacity. Work over and above restoring an asset to original capacity is upgrade/expansion or new works expenditure.

DA6.1 Renewal Plan

The nature of Melton City Council, being an urban environment in areas and a rural environment in other parts, means that the parts of the municipality is generally considered to be fully serviced by the existing stormwater drainage network and in other parts, new asset will be required as a result of developments or to cater for changes in design standards.

Accordingly all stormwater drainage capital works undertaken by Council constitute renewal of existing assets and typically also involve upgrading the capacity of the asset to improve its performance and service delivery.

At present, due to limited available condition data for the drainage network, the program of capital renewal works on Council's drainage network comprises mostly of upgrade works as opposed to projects selected for renewal based on their current condition.

In future, Melton City Council proposes that all stormwater drainage capital works programs will be developed by using condition information from condition surveys whilst also taking into consideration results of the flood management plan studies and historical performance issues of the asset within the catchment.

Council intends to use Assetic’s MyPredictor (prediction modelling software) to develop these renewal plans in the future. The criteria that Melton City Council will propose to drive the future renewal / replacement plan is documented in the following Tables. Once statistical sampling of the condition of Council’s stormwater drainage network is undertaken and the flood management plan studies are progressively completed, future iterations of this Plan will provide a detailed summary of the proposed future expenditure amounts necessary from a renewal perspective.

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Pipes

Control Hierarchy Pipe Size Capacity Rating

Structural / Coarse Condition

Treatment

Yes Class 1 or 242

>= 900 <=4 > = 4.0 Pipe Renewal

< 900 <=4 > = 5.0 Pipe Renewal

Yes Class 3 or 443 >= 900 <=4 > = 4.0 Pipe Renewal

< 900 <=4 > 5.0 Pipe Renewal

Table DA5 –Pipe Renewal Criteria

Box Culverts

Control Asset Type

Hierarchy Culvert Height

Capacity Rating

Structural / Coarse

Condition

Treatment

Yes Culverts Class 1 or 2 or High44

>= 1050

< = 4.0 > = 4.0 Box Culvert Renewal

< 1050 < = 4.0 > = 5.0 Box Culvert Renewal

Yes Culverts Class 3 or 4 or Medium or

Low45

>= 1050

< = 4.0 > = 4.0 Box Culvert Renewal

< 1050 < = 4.0 > 5.0 Box Culvert Renewal

Table DA6 –Culvert Renewal Criteria Open Channels

Control Asset Type Material Hierarchy Capacity Rating

Structural / Coarse

Condition

Treatment

Yes Open Channels Constructed & lined

High46 < = 4.0 > = 5.0 Open Channel Renewal

Medium or Low47

< = 4.0

> 5.0 Open Channel Renewal

Table DA7–Open Channel Renewal Criteria

42 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan. 43 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

44 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

45 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

46 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

47 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

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Projects selected for capital works renewal will be ranked by priority and available funds and scheduled into Council’s 10 year capital works programmes. Council’s priority renewal ranking criteria for stormwater drainage assets is detailed in the following Table below.

Criteria Weighting

Perceived Risk Factor 30%

Pipe Size or Catchment Area 20%

Risk to Downstream Properties 20%

Historical Performance History (i.e. maintenance failures) 20%

Historical Customer Requests 10%

Total 100%

Table DA8 –Storm water Renewal Weighting Criteria

D6.2 Creation / Upgrade Plan

New works are those works that result in the creation of an asset which did not previously exist. Upgrade works improve an existing asset beyond its current level of service for which it was constructed to deliver.

Currently, new assets which require upgrade or expansion works are identified from various sources including Council’s PSP, local Council staff knowledge with regards to capacity and functionality issues of existing assets, councillor or community requests and actions identified by strategic plans.

Assets which require upgrade and selected for inclusion in the capital works program are progressively developed from the results of flood management plan studies that were undertaken in 2012. The financial requirements to implement these works to mitigate known flooding issues during times of typical stormwater rain events, has been documented in Sub-section 6 of this plan.

In addition when roads are rehabilitated, an opportunity is taken to renew or upgrade stormwater drainage assets within the roadway in conjunction with these major road works.

The criteria that Melton City Council will propose to drive the future capital upgrade works is documented in the following Tables. However, this data will be required to be progressively updated as council completes flood management plan studies.

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Pipes

Control Hierarchy Pipe Size Capacity Rating

Structural / Coarse Condition

Treatment

Yes Class 1 or 248 >= 900 > = 4.0 > = 2.0 Pipe Upgrade

< 900 > = 5.0 > = 2.0 Pipe Upgrade

Yes Class 3 or 449 >= 900 > = 4.0 > = 2.0 Pipe Upgrade

< 900 > = 5.0 > = 2.0 Pipe Upgrade

Table DA9 –Pipe Upgrade Criteria Culverts

Control Asset Type

Hierarchy Culvert Height

Capacity Rating

Structural / Coarse

Condition

Treatment

Yes Culverts Class 1 or 2 or High

>= 1050 > = 4.0 > = 2.0 Box Culvert Upgrade

< 1050 > = 5.0 > = 2.0 Box Culvert Upgrade

Yes Culverts Class 3 or 4 or Medium

or Low

>= 1050 > = 4.0 > = 2.0 Box Culvert Upgrade

< 1050 > = 5.0 > = 2.0 Box Culvert Upgrade

Table DA10 –Culvert Upgrade Criteria Open Channels

Control Asset Type Material

Hierarchy

Capacity Rating

Structural / Coarse

Condition

Treatment

Yes Open Channels Constructed & lined

High50 > = 4.0 > = 2.0 Open Channel Upgrade

Medium or Low51

> = 5.0

> = 2.0 Open Channel Upgrade

Table DA11 –Open Channel Upgrade Criteria

48 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

49 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

50 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

51 These are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

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Projects selected for capital upgrade works will be ranked by priority and available funds and scheduled into Council’s 10 year capital works programmes. Council’s priority upgrade ranking criteria for stormwater drainage assets is detailed in the table below.

Criteria Weighting

Functionality or Capacity Requirements 40%

Risk to Downstream Properties 20%

Historical Customer Requests 20%

External Funding 20%

Total 100%

Table DA12 –Storm water Renewal Weighting Criteria

DA6.3 Creation / Upgrade Renewal Standards

Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those documented above.

DA7 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

It is intended that as Council’s strategic asset management process evolves, that future iterations of this DAMP will identify future drainage infrastructure capital expenditure requirements that are based on outcomes from strategic predictive modelling. Such modelling will consider the condition of the asset portfolio in conjunction with the assets capacity and functionality requirements, also taking into account the community expectation as will be defined in Council’s Service Planning and through community consultation.

Based on current expenditure and community feedback it is considered that the current identified capital expenditure profile is sufficient to maintain the current drainage infrastructure levels of service over the following 5 years. However, the asset’s condition (and level of service) will be re-assessed and confirmed with the next scheduled data condition assessment anticipated to be undertaken in 2014-2015. This condition data will be utilised along with the calibrated prediction models to refine and provide improved confidence in the projected future capital works expenditure profiles. This has been identified and included as an improvement item in Section 8 (D6.D8) of this DAMP.

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Figure DA1 – Capital Expenditure – Pipes and Culverts 2015-2019

The table below provides a breakdown of planned capital expenditure for road related infrastructure from 2014/2015 financial year to the 2018/2019 financial year as allocated by Council. This is shown as new, upgrade, renewal and expansion funding. Developer contributions are not specified distinctly from projected works and as such have not been included. Increase in assets expected from sub divisional growth has been shown in the main body of this plan.

Asset Group Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Stormwater Drains

(Pipes & Culverts)

Upgrade 100,000 100,000 100,000 100,000 100,000

Renewal

New 80,000 80,000 80,000 80,000 80,000

Expansion

Table DA14 – Breakdown of Capital Expenditure - Pipes & Culverts

Despite low asset sustainability ratios it is considered that existing capital expenditure is sufficient to maintain present levels of service across the pipe and culvert network. To confirm this however the asset’s condition (and level of service) will be re-assessed and confirmed with the next scheduled data condition assessment. This condition data will be utilised along with the calibrated prediction models to refine and provide improved confidence in the projected future capital works expenditure profiles. This has included as an improvement item in Section 8(D.9) of this DAMP.

DA8 Disposal of Pipes and Culverts

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any pipes or culverts within its network that are excess to requirements. It is anticipated instead that as we continue to grow assets will be identified for capital improvement through upgrade and renewal activities.

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

2015 2016 2017 2018 2019

Capital Expenditure- Pipes & Culverts 2015-2019

Capital Projects- Council Funded

Developer and Grant Funded Projects DRAIN

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DB1 General- Stormwater Pits The Drainage Asset Management Plan (DAMP) comprises Sub-section 2 of the Councils Asset Management Plan. Part B of the DAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for pipe and minor culvert network owned by the City of Melton. Assets covered at Part B include the following;

Asset Subclass Description

Junction Pits Pits where stormwater pipes meet. Range of sizes are constructed across Council

Side Entry Pit Pit with side access . Range of sizes are constructed across Council

Grated Pit Pit with grated lid, generally indicated where stormwater may be plentiful during rain events or in kerb

Gross Pollutant Trap52 Specialised pit designed for purpose of removing gross pollution from the drainage network. Assists to avoid blockages and maintains integrity of stormwater

Table DB1 – Asset Subclasses –Stormwater Pits

DB2 Supporting Documents and Strategies Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Road Management Plan • Planning Scheme and Precinct Structure Plans • City of Melton Flood Management Plan • City of Melton Flood Emergency Management Plan

DB3 Asset Valuation & Sustainability The table below illustrates the current value of pits across the municipality as at July 1 2014. . The valuation summary for Councils stormwater pits as at July 2014 is;

Current Replacement Cost $38,422,034

Depreciated Replacement Cost/ Written Down Value

$30,617,642

Annual Depreciation Expense $480,189

Table DB2 – Asset Values – Stormwater Pits

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the road asset category. Annual asset consumption for roads is also shown. This data is used by Council to apply predictive modelling scenarios to the asset groups thereby allowing funding scenarios to be tested and suitable

52 These assets are presently included in the stormwater pit category. As asset practices mature these will be noted as separate asset in the register

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recommendations for capital renewal, upgrade and the requirement for new assets to be made. At present this is incomplete for this asset subclass however known ratios are shown below.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio

Capital Expenditure/Depreciation

NA 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average

Desired Capital Expenditure

NA 60-80%

Remaining Service Potential

Written Down Value / Replacement Value

79% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

1.2% 0-3%

As noted remaining service potential and asset consumption fall within recommended benchmarks. This suggests that the stormwater pits are being depreciated at a rate which is sustainable . Pits are often improved with renewal of other assets including road, landscaping and pipe works. At present Council is unable to specify average increase in stormwater pits related to capital works.

DB4 Asset Maintenance

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

DB4.1 Maintenance Plan

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions. Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, replacing a pit lid. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends for all stormwater drainage assets are shown below.

Year Maintenance

Reactive Planned Cyclic

2012/2013 $0 $818,915

2013/2014 $0 $937202

2014/2015 $0 $971747

Table DB4 -Pit Maintenance Expenditure 2012-2015

Table DB3 – Asset Sustainability – Stormwater Pits

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Proactive maintenance is conducted in accordance with Councils Road management Plan and Road Management Contract. Reactive maintenance is also carried out through Road Maintenance Contract in accordance with response levels of service detailed in Appendix 1.

Future maintenance costs are forecast to trend in line with the value of the asset stock as shown at sub-section 4.5.3 to this plan, figure 12. Maintenance expenditure is calculated (following the current road maintenance contract) at a rate equivalent to 0.5% compounding (from 2016). The table below illustrates projected expenditure for maintenance of Councils Stormwater Pits 2014 – 2019.

Figure DA2 – Maintenance Expenditure – Stormwater Pits 2014-2019

Industry best practice recommends that maintenance of assets should be calculated at between 1-2% of asset replacement value53

t should be acknowledged that where substantial maintenance is carried out on drainage infrastructure there may be resultant improvement in the overall condition of the asset. Although not formally recognised at time of works it is anticipated that improvements will be recognised during three yearly condition inspection audits and data updated accordingly at that time.

however given that many of councils drainage assets are newer it is anticipated that an increase consistent with current ratio (0.5%) will ensure ongoing levels of service are maintained in the short term. As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

DB5 Renewal, Replacement, Creation and Upgrade Plan Renewal expenditure is major work which does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original capacity. Work over and above restoring an asset to original capacity is upgrade/expansion or new works expenditure.

53 IIMM International Infrastructure Management Manual- 2011

$-

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

2014 2015 2016 2017 2018

Expe

nditu

re

2014 2015 2016 2017 2018 Road Maintenance Contract $971,747.00 $971,747.00 $971,747.00

Current & Planned Maintenance Expenditure Stormwater Pits 2014-2018 DRAIN

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DB5.1 Renewal plan The nature of Melton City Council, being an urban environment in areas and a rural environment in other parts, means that the parts of the municipality is generally considered to be fully serviced by the existing stormwater drainage network and in other parts, new asset will be required as a result of developments or to cater for changes in design standards. Accordingly all stormwater drainage capital works undertaken by Council constitute renewal of existing assets and typically also involve upgrading the capacity of the asset to improve its performance and service delivery.

At present, due to limited available condition data for the drainage network, the program of capital renewal works on Council's drainage network comprises of mostly of upgrade works as opposed to projects selected for renewal based on their current condition. In future, Melton City Council proposes that all stormwater drainage capital works programs will be developed by using condition information from condition surveys whilst also taking into consideration results of the flood management plan studies and historical performance issues of the asset within the catchment.

Council intends to use Assetic’s MyPredictor (prediction modelling software) to develop these renewal plans in the future. The criteria that Melton City Council will propose to drive the future renewal / replacement plan is documented in the following Tables. Once statistical sampling of the condition of Council’s stormwater drainage network is undertaken and the flood management plan studies are progressively completed, future iterations of this Plan will provide a detailed summary of the proposed future expenditure amounts necessary from a renewal perspective.

Pits

Control Pit Type Hierarchy Capacity Rating

Structural / Coarse Condition

Treatment

Yes Grated Side Entry Pits Class 1 or 2 <=4 > = 4.0 Pit Renewal

Class 3 or 4 <=4 > = 5.0 Pit Renewal

Yes All Other Side Entry Pit Types

Class 1 or 2 <=4 > = 4.0 Pit Renewal

Class 3 or 4 <=4 > = 5.0 Pit Renewal

Yes Junction Pit Class 1 or 2 <=4 > = 4.0 Junction Pit Renewal

Class 3 or 4 <=4 > = 5.0 Junction Pit Renewal

Yes Headwall or Endwall Class 1 or 2 <=4 > = 4.0 Headwall/Endwall Renewal

Class 3 or 4 <=4 > = 5.0 Headwall/Endwall Renewal

Yes Grated Bio Filtration Class 1 or 2 <=4 > = 4.0 Filtration Renewal

Class 3 or 4 <=4 > = 5.0 Filtration Renewal

Yes Other Class 1 or 2 <=4 > = 4.0 Other Renewal

Class 3 or 4 <=4 > = 5.0 Other Renewal

Table DB5 – Asset Renewal Criteria- Pits 54

GPTs

54 These classes are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

155

Control Asset Type Environmental Criticality

Structural / Coarse Condition

Treatment

Yes GPT High > = 4.0 GPT Renewal

Medium or Low > = 5.0 GPT Renewal

Table DB6– Asset Renewal Criteria - GPTs 55

Projects selected for capital works renewal will be ranked by priority and available funds and scheduled into Council’s 10 year capital works programmes. Council’s priority renewal ranking criteria for stormwater drainage assets is detailed in the following Table below.

Criteria Weighting

Perceived Risk Factor 30%

Pipe Size or Catchment Area 20%

Risk to Downstream Properties 20%

Historical Performance History (i.e. maintenance failures) 20%

Historical Customer Requests 10%

Total 100%

Table DB7 –Pits Renewal Weighting Criteria

DB5.2 Creation / Upgrade Plan New works are those works that result in the creation of an asset which did not previously exist. Upgrade works improve an existing asset beyond its current level of service for which it was constructed to deliver. Currently, new assets which require upgrade or expansion works are identified from various sources including Council’s PSP, Flood management Plan, Flood Emergency Management Plan and local Council staff knowledge with regards to capacity and functionality issues of existing assets, councillor or community requests and actions identified by strategic plans.

Assets which require upgrade and selected for inclusion in the capital works program are progressively developed from the results of flood management plan studies that were undertaken in 2012. The financial requirements to implement these works to mitigate known flooding issues during times of typical stormwater rain events, has been documented in Sub-section 6 of this plan.

In addition when roads are rehabilitated, an opportunity is taken to renew or upgrade stormwater drainage assets within the roadway in conjunction with these major road works. The criteria that Melton City Council will propose to drive the future capital upgrade works is documented in the following Tables. However, this data will be required to be progressively updated as council completes flood management plan studies.

55 These classes are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

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Pits

Control Pit Type Hierarchy Capacity Rating

Structural / Coarse Condition

Treatment

Yes Grated Side Entry Pits Class 1 or 2 > = 5.0 > = 1.0 Pit Upgrade

Class 1 or 2 > = 4.0 > = 2.0 Pit Upgrade

Class 3 or 4 > = 5.0 > = 2.0 Pit Upgrade

Class 3 or 4 > = 4.0 > = 3.0 Pit Upgrade

Yes All Other Side Entry Pit Types

Class 1 or 2 > = 5.0 > = 1.0 Pit Upgrade

Class 1 or 2 > = 4.0 > = 2.0 Pit Upgrade

Class 3 or 4 > = 5.0 > = 2.0 Pit Upgrade

Class 3 or 4 > = 4.0 > = 3.0 Pit Upgrade

Yes Junction Pit Class 1 or 2 > = 5.0 > = 1.0 Junction Pit Upgrade

Class 1 or 2 > = 4.0 > = 2.0 Junction Pit Upgrade

Class 3 or 4 > = 5.0 > = 2.0 Junction Pit Upgrade

Class 3 or 4 > = 4.0 > = 3.0 Junction Pit Upgrade

Yes Headwall or Endwall Class 1 or 2 > = 5.0 > = 2.0 Headwall/Endwall Upgrade

Class 3 or 4 > = 5.0 > = 3.0 Headwall/Endwall Upgrade

Yes Grated Bio Filtration Class 1 or 2 > = 5.0 > = 2.0 Filtration Upgrade

Class 3 or 4 > = 5.0 > = 3.0 Filtration Upgrade

Yes Other Class 1 or 2 > = 5.0 > = 2.0 Other Upgrade

Class 3 or 4 > = 5.0 > = 3.0 Other Upgrade

Table DB8 –Pit Upgrade Criteria56

Projects selected for capital upgrade works will be ranked by priority and available funds and scheduled into Council’s 10 year capital works programmes. Council’s priority upgrade ranking criteria for stormwater drainage assets is detailed in the following Table below.

Criteria Weighting

Functionality or Capacity Requirements 40%

Risk to Downstream Properties 20%

Historical Customer Requests 20%

External Funding 20%

Total 100%

Table DB9 –Pit Renewal Weighting Criteria

56 These classes are yet to be determined by Council following development of stormwater hierarchy structures. These figures have been recommended only and will require review during the life of this plan.

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DB5.3 Creation / Upgrade Renewal Standards

Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those documented above.

DB6 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

Council has no scheduled pit works included in the capital works program. These assets will typically be constructed as part of larger projects and capitalised once completed.

DB7 Disposal of Pits

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any stormwater pits within its network that are excess to requirements. It is anticipated instead that as we continue to grow assets will be identified for capital improvement through upgrade and renewal activities.

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A Proud Community Growing Together

ASSET MANAGEMENT PLAN

Section 3: Buildings Asset Management Plan

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B1.0 Introduction

Melton City Council’s (MCC) buildings infrastructure represents a significant investment by the community and is a vital enabler in the achievement of Council’s Vision of A Proud Community Growing Together. Stewardship of buildings infrastructure is a core Council function. The BAMP is written to demonstrate Council’s responsive management of assets; services provided utilising assets, compliance with regulatory requirements, and to communicate its strategies to the community. This revision of the BAMP is aligned with Councils current activities to achieve ‘Core Maturity’ under the National Asset Management Assessment Frameworks (NAMAF).

The fundamental purpose of this document is to deliver, Council’s vision for the management of infrastructure as outlined in its Asset Management Policy. Aligned purpose is included in all of Council’s key strategic documents; the Asset Management Policy, Asset Management Strategy as well as numerous related strategies and plans. These documents are referred to throughout this plan and should be read in conjunction with this document.

The Buildings Asset Management Plan (BAMP) is sub-section 3 of the Asset Management Plan (AMP). This sub-section includes reference to all of Councils building assets grouped into seven groups; Commercial and Civic Buildings, Community Buildings, Council Housing, Preschools and Childcare Centres, Recreational Facilities, Industrial Buildings & Warehouses and Public Conveniences.

Previously to the establishment of this BAMP building assets had been documented in various Service Unit and Corporate registers and the responsibility for financial and lifecycle data was maintained by Council’s Asset Accountant. Over a period of 18 months Council has committed and worked towards incorporating all assets into a central asset database MyData©. This consolidation of Building Assets has also included a review of building condition and valuation.

The building condition audit was undertaken by Sergon Building Consultants who have undertaken Level 1 and 2 condition assessments. Level 1 condition assessment provides high level data of the main components of a building including;

• Superstructure; • Substructure; • Roof: • Site Infrastructure; • Site Services: • Fit-outs and Fittings; • Floor Covering; • Services (Fire, Electrical, Mechanical , Transport, Hydraulic, Security and Other This assessment has included componentisation of data in order to comply with required Australian Accounting Standards and best practice recommendations5758

57 Australian Accounting Standards, Australian Accounting Standards Board; www.aasb.gov.au

. Council will now undertake to confirm and align valuation data, (also provided as an output of the assessment), with the various components listed in the register to best inform predictive modelling into the future. (Improvement Action Section 8(B.1) of this plan.

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Level 2 assessments detail sub-components of the buildings. Examples of these include building components such roof guttering & downpipes, kitchen & bathroom fit outs , fixtures & fittings, wall and ceiling linings, windows & doors as well as minor assets such as paper towel holders, light fittings and fitted appliances which have been individually and condition rated . This data has been rated using Councils standard rating scale, 0-6 where 0 representing new assets and 6, those at the end of their functional life or failed (breakdown) beyond viable repair.

Where components have been rated at condition 4or below, Sergon Building Consultants have quantified the data providing both replacement cost and estimated replacement dates. This data will be used to inform a planned high level maintenance program.

Council Asset Custodians needs to apply this information across all subcomponents assessed at condition 0-3 in order to enable longer term strategic modelling to be completed. This activity is listed as an improvement action in section 8 (B.2) of this plan.

Valuations of Council’s buildings by asset class have also been carried out however some of the more specialised buildings, such as the new Melton Library and Learning Hub will require further detailed assessments to be undertaken. These additional detailed assessments will allow better quantification of the likely replacement value and fair market values of the buildings based on the sum of their specialist components. Detailed valuation of specialised assets has been noted as an improvement action at section 8 (B.3) of this plan, as has application of revaluation data across the remaining portfolio.

The refinement of buildings data continues to be a work in progress and the information that is presently available and validated has been combined with hierarchy and risk data to develop high level models for the building assets as noted at Parts A- G of this sub-section.

Building assets are complex in their nature comprising various components which all have differing effective lifecycles. Included in the recent condition audit, these effective lifecycles have been recognised and will be applied to the database., along with revaluation of the building portfolio during the life of this plan. Asset lifecycles for buildings are assessed over a nominal period of 50 years.

Updated valuations, per the Sergon Audit data shall be brought into effect at the close of the 2014/2015 financial year. In accordance with Australian Accounting Standard AASB 116 building assets shall be reviewed annually and re- valued where there is a net shift in replacement value equal to or greater than 10%, or at each condition assessment period (3 years). Assessment of useful lives may also be undertaken during the rehabilitation phase.

B1.1 Background

The Buildings Asset Management Plan (BAMP) comprises sub-section 3 of the Asset Management Plan (AMP). This sub-section includes reference to all of Councils building assets grouped into seven groups; Commercial and Civic Buildings, Community Buildings, Council Housing, Preschools and Childcare Centres, Recreational Facilities, Industrial Buildings & Warehouses and Public Conveniences.

B1.2 Building Types in the City of Melton

As at July 2014 MCC was responsible for 289 building infrastructure assets with an assessed replacement value of $140,766,891.00

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Asset Type Qty Unit Replacement Value (RV)

Commercial and Civic Buildings 17 (no) $46,224,872

Community Buildings Facilities 70 (no) $33,203,010

Council Housing Facilities 28 (no) $2,160,100

Industrial Building Facilities 34 (no) $1,046,850

Childrens Services Centres Facilities 22 (no) $9,717,800

Public Convenience Facilities 41 (no) $2,419,062

Recreational Building Facilities 77 (no) $46,055,196

TOTAL 289 (no) $140,826,892

Table B1: Assets covered by this BAMP as at 1 Jul 2014

Figure B1: Distr ibution of Assets (Replacement Value) covered by this plan as at 1 July 2014

23%

26%

2% 1%

8% 2%

38%

Distribution of Building Related Infrastructure Assets by Replacement Value as at 1 July 2014

Commercial and Civic Buildings

Community Building Facilities

Council Housing Facilities

Warehouse & Industrial Building Facilities

Pre-School and Childcare Facilities

Public Convenience Facilities

Recreational Building Facilities

7%

23%

10% 12%

8%

14%

26%

Distribution of Building Related Infrastruture Assets by Quantity as at 1 July 2014

Commercial and Civic Buildings

Community Building Facilities

Council Housing Facilities

Warehouse & Industrial Building Facilities

Childrens Service Centre Facilities

Public Convenience Facilities

Recreational Building Facilities

163

Figure B2: Distr ibution of Assets by quant ity as at 1 July 2014

B1.2.1 Council Assets

Council’s buildings portfolio comprises of 289 assets. This includes two investment assets, the Melton Country Club and the Melton Golf Club. Operational Leases, Licences and maintenance arrangements for these assets vary from building to building with precedent set on which arrangements are used generally via a historical timeline of when the property was added to Council asset schedule. Each Lessor/Licensee has varying responsibilities in regards to maintenance or capital renewal and upgrade activities. In order to better understand these varying responsibilities with regard to the building portfolio Council shall undertake to incorporate lease, licence and maintenance data into the Asset Management System (MyData™) and develop a responsibility matrix for each asset listed in this category. This activity is listed as an improvement action in section 8(B.4) of the BAMP.

B1.2.2 Financially Intangible Building Assets

Council partners with various community organisations and government bodies to provide services to the community. In some instances this involves shared use and maintenance of buildings that do not appear as tangible on the asset register. An example of this is the Melton Indoor Recreation Centre (MIRC). This asset is owned by the Department of Education and Early Childhood Development (DEECD), as it is located upon a titled parcel of land, listing the Education Department as the owner.

Council utilises this asset to offer recreation services to the community and in such has as entered into a contractual agreement with the asset owner for Council use, community access and the determination of maintenance responsibilities.

As Council develops the use of the MyData™ system for maintenance management, these assets will need to be recognised within the register of assets. Inclusion of these intangible assets onto the register shall occur in as and when they are identified. This activity is listed as an improvement action in Section 8(B.4) of this plan.

B1.3 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read as a whole. Supporting plans documents and strategies relevant to the building assets at City of Melton include but are not limited to;

• Asset Management Strategy; • Precinct Structure Plans; • Community Infrastructure Plan; • Greenhouse Action Plan; • Legislative Documents as listed in sub-section 3.2 of the BAMP.

B2.0 Asset Condition

Council has captured and assessed the condition of Buildings in accordance with Council’s condition assessment methodology documented in ‘Asset Management Condition Assessment Manual (Buildings) and IPWEA Buildings Practice Note 3. Level 1 and 2 condition assessments have been completed for all Commercial and Civic Buildings. Data has been incorporated into the asset

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register and has been used to develop high level programmed maintenance and capital works renewal models. This data capture was undertaken by Sergon Building Consultants.

Council’s overall condition rating scale is shown below. This rating scale has been documented to provide the community with an objective measurement of Council’s building assets.

Condition Rating

Descriptor Condition

0 New Asset A Brand New Asset

1 Excellent Condition Inspection in accordance with Council and Legislative Requirement and Only Cyclic Maintenance Required

2 Very Good Minor Maintenance Required in Addition to Cyclic Maintenance

3 Good Moderate Maintenance Required in Addition to Cyclic Maintenance

4 Average Significant Maintenance Required. Capital Renewal or upgrade may be required within the next 5 years

5 Poor Significant renewal/upgrade required within the following 2 years

6 Very Poor End of Life provides no service potential

Table B2: Assets Condit ion rat ings adopted by City of Melton

Condition assessments for each building take into consideration of the condition of the following components:

• Sub-Structure • Super-Structure • Roof • Fit outs (Floor Coverings) • Fit outs and Fittings • Services Mechanical, Electrical, Fire, Hydraulics (Plumbing), Security and Transport • Site Infrastructure • Site Services

In addition a safety and aesthetics rating has also been allocated to each building.

In obtaining the Overall Condition Index (OCI) for each building, the condition of the Sub-Structure, Super-Structure, Roof and the Safety assessment have been utilised and a weighting applied (Refer Fig B3).

165

F igure B3. Asset Condit ion – Calculat ion Methodology rat ing components used to determine condit ion

F igure B4. Asset Condit ion – Calculat ion Methodology rat ing components

Council has established useful lives for its building asset components. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to use, maintenance, capital improvement or replacement. These useful lives have been determined as;

Individual Component Ratings

Calculated Overall Condition Index

(OCI)

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Asset Class Component Useful Life (Years) Residual Value

Buildings Super Structure

Sub Structure

Fit-outs (Floor Covering)

Fit-outs & Fittings

Roof

Services Mechanical

Services Electrical

Services Fire

Services Transport

Services Security

Services Hydraulics

Site Infrastructure

Site Services

100

100

15

30

50

20

30

20

30

25

40

40

30

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

0%

Table B3 Asset Component Useful Life

B3.0 Levels of Service

B3.1 Customer research and expectations This sub-section defines the levels of service that are proposed and confirms the basis of the levels to be provided. It includes background and customer research undertaken and the proposed future approach to consultation with building users. It aims to identify how knowledge of user requirements has been considered in the setting of the Levels of Service.

B3.1.1 Community Feedback – Strategies and Surveys

Council participates in regular survey and benchmarking activities in order to understand how we, as a Council perform in comparison to our peer group. In the 2013 Community Satisfaction Survey, conducted by the DPCD, Melton City recorded an overall performance index score of 5959

Additionally the following surveys, plans and strategies, which impact on provision and maintenance of building assets, have also been undertaken or developed;

.

• Community Infrastructure Plan 2011-203160

• Active Participation Survey

61

• Aquatic Strategy 2014

62

• Melton Tennis Strategy 2012

63

• Melton Hockey Club Relocation Feasibility Study 2012

64

• Melton Indoor Sports Strategy 2013 (Draft)

65

• Regional Athletics Centre Feasibility Study 2011

66

59Community Satisfaction Survey – Melton City Council Annual Report 2013/2014 (Source : DPCD)_

60 Community Infrastructure Plan 2013-3031 City of Melton – ASR Research 2011 61 Active Participation Survey 2013 – City of Melton - Ross Planning 62 Melton City Council Aquatic Plan 2013 – 2034 t- SGL Consulting Group Australia (2014) 63 Melton Tennis Strategy 2012 - Inside Edge Sport and Leisure 64 Melton Hockey Club Relocation Feasibility Study 2012 - Inside Edge Sports and Leisure 65 Melton Indoor Sports Strategy 2013 – (Draft) SGL Consulting Group Australia

167

• Recreation Strategy, now incorporated into the Open Space Plan (draft), • Greenhouse action plan

These documents and initiatives seek and invite community feedback and comment and are referred to when planning for new capital developments and should be read in conjunction with this sub-section. MCC refers to information contained in these documents, particularly the Community Infrastructure plan to undertake capital planning. Data included in these documents may be entered into the asset management system (MyData™) updating Functionality Assessment and Risk information. Such activity will greater inform and enhance strategic modelling output and has been included as an improvement action at Section 8(B.5) of this plan.

B3.1.2 Work Orders and Customer Requests

In addition to local government and other surveys Council tracks work orders issued using Council’s Interim Asset Management System (IAMS). Work orders are issued in response to planned and responsive maintenance tasks as well as those generated from proactive inspections and in response to Customer Actions Requests (CAR).

Figure B5: Distr ibution of Work Orders by Asset Type as at 1 July 2014

66 Regional Athletics Centre Feasibility Study 2011– Ross Planning

0

500

1000

1500

2000

Fiscal Calendar 2010

Fiscal Calendar 2011

Fiscal Calendar 2012

Fiscal Calendar 2013

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F igure B6: Distr ibution of Customer Act ion Request by Asset Type as at 1 Ju ly 2014

B3.2 Legislative requirements Melton City Council has to meet many legislative and regulation requirements at a federal and state level, including:

Legislation Requirement

Local Government Act 1989

Local Government Finance and reporting Regulations 2004

Sets out role, purpose, responsibilities and powers of local government including the preparation of a long term financial plan supported by asset management plans for sustainable service delivery.

Building Act 1993

Building Regulations 2006

Regulates building work and standards and provides for the accreditation of building products, construction methods, building components and building systems. Also provides an efficient and effective system for issue of building and occupancy permits, administration and enforcement building and safety related matters and dispute resolution. In addition this legislation regulates building practitioners and plumbers. The Act limits periods within which building and plumbing actions may be brought.

Disability Act (Vic) 2006 The Disability Act establishes a framework for providing support and services to people with disabilities throughout Victoria.

Domestic Animals Act 1994 The purpose of this Act is to promote animal welfare, the responsible ownership of dogs and cats and the protection of the environment.

Dangerous Goods Act 1985 An Act to promote the safety of persons and property in relation to the manufacture, storage, transfer, transport, sale, purchase and use of dangerous goods.

Electricity Safety Act 1998 The purpose of this Act is to make further provision relating to the safety of electricity supply and use and the efficiency of electrical equipment.

Environment Protection Act 1970 The purpose of this Act is to create a legislative framework for the protection of the environment in Victoria having regard to the principles of environment protection

Graffiti Prevention Act 2007 The purpose of this Act is to reduce the incidence of graffiti.

Housing Act 1983 An Act to modernize housing law, to improve housing administration in Victoria.

Heritage Act 1995 The main purposes of this Act are— (a) to provide for the protection and conservation of places and objects of cultural heritage significance and the registration

0 200 400 600 800

1000 1200

Com

mun

ity C

entre

Em

erge

ncy

Serv

ices

Fa

ctor

y

Libr

ary

Mat

erna

l Chi

ld H

ealth

Offi

ce

Pres

choo

l

Res

iden

tial

Spor

ts P

avilli

on

Toile

ts

War

ehou

se

Fiscal Calendar 2010

Fiscal Calendar 2011

Fiscal Calendar 2012

Fiscal Calendar 2013

169

of such places and objects; and (b) to establish a Heritage Council; and (c) to establish a Victorian Heritage Register.

Independent Contractors Act 2006 The principal objectives of this Act are: (a) to protect the freedom of independent contractors to enter into services contracts; and (b) to recognise independent contracting as a legitimate form of work arrangement that is primarily commercial; and (c) to prevent interference with the terms of genuine independent contracting arrangements.

Landlord and Tenant Act 1958 This legislation defines roles , responsibilities and obligation of landlords and tenants with respect to lease and hire of buildings etc

Occupational Health and Safety Act (Vic)2004

Occupational Health and Safety Regulations 2007

The Act sets out the key principles, duties and rights in relation to occupational health and safety. The general nature of the duties imposed by the Act means that they cover a very wide variety of circumstances, do not readily date and provide considerable flexibility for a duty holder to determine what needs to be done to comply

Table B4: Legis lat ive Requirements

B3.3 Building Hierarchies Melton City Council has documented a building asset hierarchy that classifies the portfolio into groups based on the current function and criticality of the individual asset. Hierarchy has been established based on the following criteria;

• Required availability - ( is the building used daily, weekly etc and for how many hours at a time);

• Type of Customer / User served by the Asset– ( Operational, recreational etc); • Consequence of Failure (Low, Moderate or High); • How many Customers / Users affected by failure.

Buildings have been scored and assigned a hierarchy utilising the following model;

Hierarchy Availability Type of Customer

Consequence of Failure

Number Customers Affected

Comment Examples

Class 1 >/= 5 days per Week

Workplace, Operations, Community

High Any Building aimed to serve wider community including outside the LGA and typically utilised at least 5 days per week. The building is used for community or operational purposes and it is acknowledged that the community would have high expectations on maintenance and management of this building asset.

Melton Civic Centre, Melton Waves and high use Public Conveniences.

Class 2 >4 days per week

Community, Recreation

Moderate Any Building aimed to serve the community within the LGA and typically utilised at least 4 days per week. The building can be used for either community, recreational, operational and special use purposes and it is acknowledged that the community would have medium to high expectations on maintenance and management of this building asset.

Community Health Centres, Pre Schools.

Class 3 2-3 days /week

Operational, Recreation Residential

Moderate- Low <500 Building aimed to serve the local community within surrounding suburbs and typically utilised at least 2 to 3 days per week. The building can be used for either community, recreational, operational and special use purposes and it is acknowledged that the community would have low to medium expectations on maintenance and management of this building asset.

Sporting clubs, Scout Halls, Public Housing and Pavilions i.e. MacPherson Park - Baseball Pavilion

Class 4 Less than weekly

Recreation, Residential

Low 250-500

<250

Building aimed to serve community within each individual neighbourhood and typically utilised less than weekly. The building is generally limited to either recreational or special use purposes and it is acknowledged that the community would have low expectations on maintenance and management of this building asset.

Storage Sheds and Plant Rooms and low use Public Conveniences i.e. Conveniences at Mt Cottrell Recreation Reserve

Table B5: Bui lding Hierarchies

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It should be noted that these hierarchies are implemented for asset modelling and prediction and do not correlate with those listed in the Community Infrastructure Plan which have been developed and documented to provide guidelines for the priorities associated with the provision of buildings in growth areas.

B3.4 Current Levels of Service

Melton City Council has defined service levels in three terms; User, Strategic and Technical.

B3.4.1 User Levels of Service

To date little specific data has been collected which links directly to the Community and Building user’s satisfaction with Council’s provision of building assets and maintenance. In development of the Community Infrastructure Plan (CIP) Council sought to achieve the following outcomes;

• To ensure that the amenity and aesthetic character of community infrastructure is of a high quality;

• To ensure that infrastructure is easily accessible by foot, bicycle or public transport for the majority of residents in the surrounding neighbourhood;

• To consolidate and centralise service enabling assets into Community focused activity hubs.

• To provide opportunities for services and clubs to co-locate as a way of sharing resources, increasing the level of service integration and encouraging greater resident utilisation and participation;

• To embrace sustainability principles and objectives such as reducing the number of trips (e.g. by private vehicles) people need to make to access services, attend meetings and social gatherings or participate in formal and informal recreation activities;

• To actively encourage, where appropriate, participation by local residents in the development of community infrastructure as a means of encouraging community ownership, maximizing utilisation, encouraging resident interaction, and increasing community identity and sense of place.

The CIP includes numerous “Planning & Design principles” the following summarises those principles relevant to the determination of service levels.

• Maximise opportunities for social interaction; • Increase “sense of place” opportunities; • Ensure equitable access to range of assets meeting numerous functional needs; • Ensure Integrated activity hubs attract diverse demographic groups; • Consultation with local communities and service providers; • Develop detailed design briefs inclusive of comprehensive consultation programs.

At present indications of desired levels of service are obtained ad hoc from various sources including feedback from the Community, Building Users and Council Planning process inputs, Resident’s feedback to Councillors and review of Customer Action Requests.

Future iterations of this BAMP will utilise Building User surveys to quantify and analyse the desired levels of service. Completion of User satisfaction surveys is noted as an improvement action included in Section 8(B.6) of the AMP.

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B3.4.2 Strategic Levels of Service

Strategic levels of service communicate the philosophies of Council in relations to the management of Councils Building assets. Melton City Council’s strategic levels of service that have been adopted as a result of this BAMP are documented in table B6.

Key Performance Measure

Level of Service Performance Measure Process

Performance Target Current Performance 2014

Community Levels of Service ( LoS)

Well maintained and suitable building assets

No. of customer requests relating to building maintenance

Annual Service Team performance report

less than previous year Pending completion of report

Building Assets meet community needs

DPCD Customer Survey Maintain within +/- 2% of state average – 60 (2014)

5967

Victorian Building Regulation Compliance

s1007, s1219, s1210, s1301 to 1304

ESIS inspection system VBR inspections completed as scheduled

Achieved

Undertaking mandatory inspections and testing as prescribed in the Building Regulations.

Essential Safety Measures Inspections & maintenance reporting.

ESIS inspection system ESM maintenance tasks and audit Inspections completed as scheduled and recoded in Annual Service Unit performance report

Achieved

Building Assets meet consumer/customer demand

No of facility closures due to degraded asset condition incidents

Tri-Annual Active participation Survey , Customer Action Requests

Nil closures, reported in Annual Service Team performance report

Achieved

Licence agreements in place for tenants of Council sporting and community facilities.

100% of tenants of Council community facilities that have licence agreements in place for use.

Recreation Team Tennant Schedules

100% Compliance, reported in Recreation Team Annual Performance report.

Achieved

Building cleanliness No of customer requests relating to unsatisfactory cleaning.

Annual Service Team performance report

Numbers of complaints less than previous year,

Pending Completion of Report

Provide and maintain access and security systems at Councils buildings and facilities.

No of customer requests relating to failed building security systems.

Annual Service Team performance report

Numbers of complaints less than previous year,

Pending Completion of Report

Buildings are routinely inspected for hazards and risk.

No. of Risks attributable to building condition

Annual Facility Inspection Reports

Nil Compliant

Technical Levels of Service (LoS)

Quality Average Condition for Class 1 and 2 Buildings

Level 1 and/or level 2 building condition inspections every 3-4 years

Average condition of Class 1 & 2 buildings to be <=2.5

2.1 (2014)

Quality Average Condition for Class 3 Buildings

Level 1 and/or level 2 building condition inspections every 3-4 years

Average condition of Class 3 buildings to be <=3

2.1 (2014)

Quality Average Condition for Class 4 Buildings

Level 1 and/or level 2 building condition inspections every 3-4 years

Average condition of Class 4 buildings to be <=4

1.9 (2014)

Table B6: Strategic Levels of Service – MCC Bui lding Assets

67 Community Satisfaction Survey – Melton Shire Council Research Report June 2014– www.jwsresearch.com

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Councils Asset Management Strategy allows for further consultation as Councils moves from ‘Core Asset Maturity’ toward more advanced practices. These will consider the capacity and functionality of the assets and related infrastructure in addition to a component condition based system.

B3.4.3 Maintenance Levels of Service

Council regards maintenance levels as activities (i.e. works or tasks required to address component faults which occur during the assets lifecycle) responsive maintenance is delivered on a day to day basis, ensuring that User levels of service are achieved.

Council utilises a pool of contractors to maintain and service various components of the building portfolio. Contracts are awarded .The contracts use a standard format and identify the following;

• The tasks or work activity expected to be delivered (example: plumbing services);

• The schedule of inspections to be undertaken or scheduled services at specified intervals including statutory inspections where required;

• The priority with regards to rectification assigned to each task;

• The type of action that will likely be carried out against each task; and

• Provision as far as practicable for works that may result from events such as emergencies and natural disasters.

Council is currently in the process of documenting the above factors in their Maintenance Levels of Service framework. The completion of this framework has been included as an improvement action.

B4.0 Future Demand

B4.1 Demand Drivers Council’s fundamental role is to provide services to the community and its building assets are a means to enable this. Consequently, future demand on these assets is tied to the demand for Council’s services and this is a more complex consideration than population growth alone. Council has in place a 20 year Community Infrastructure Plan, this combined with service planning and asset modelling is utilised to inform capital development, renewal, upgrade and expansion.

Asset management plans are critically driven by the needs of the services to be delivered and therefore meaningful building asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining Council’s building assets without adequate regard for service needs may result in a well-maintained portfolio of assets, but it may also result in an asset portfolio which does not meet the needs the community.

Business Planning been undertaken by Council has enabled development of high level service plans that associate asset requirement to service output.

These documents will be reviewed and upgraded periodically months. The documents assist Council to drive asset service planning with regard to management practices in the long term. Review of these plans should be undertaken and updates made to them as an improvement action included in Section 8(B.7) of this plan.

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B4.2 Demand forecast Councils’ mission is to “support the growth, wellbeing and aspirations of our community through leadership, excellence and inclusion”.68

Through stakeholder research and consultation Council has established four strategic themes. These provide focus for future investment, enable connection with the community, support transparent and accountable management and provide a strategically planned place to work, live and play. The four themes are;

This mission is to be considered in conjunction with Councils strategic themes and their supporting objectives when developing ‘bottom up’ asset management practices.

• Managing our growth; • A well governed and leading organisation; • Diverse, confident and inclusive communities; and • Community health and wellbeing.

In addition to these themes the results of available surveys and community consultative processes and organisational strategies are reviewed and included in future iterations of this plan. This BAMP aims to capture and document processes which assist in meeting all of these considerations now and into the future.

Section 2 of the AMP outlines the PSPs in place and highlights future growth projected for the City of Melton. The PSP documents detail services or projects required to be implemented to support this growth.

Perhaps the biggest influence on future building assets within the City of Melton is the expected rate of development and population increase. Recent Census Population figures for the City illustrate an annual population growth rate of approximately 4.45%, with an addition of approximately 40,000 dwellings (2011 – 2031)69

. It should be noted that these sub-sections of the AMP reflect growth during the current life of approved Precinct Structure Plans. They do not reflect eventual build out figures which anticipate a growth in population to 400,000 residents by 2050. As new growth areas are approved for development data will become available to inform future iterations of this plan. In line with our service centric approach, future services will be driven by demand and utilisation. The current demographic profiles relevant to this plan are represented in Figures B7 and B8.

68 Melton Shire Council – Council Plan 2013-2017 69 http://forecast2.id.com.au/Default.aspx?id=116&pg=5520

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Figure B7: Forecast age structure at 2013, 2021 and 2031

Figure B8: Forecast family structure 2013, 2021 and 2031

0

20000

40000

60000

80000

100000

120000

140000

160000

0-4 Yrs 5-19Yrs 20-64 Yrs 65-84 Yrs 85+

2013

2021

2031

0

0.5

1

1.5

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2.5

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3.5

4

4.5

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Couples without Children

Couples with Children

One Parent Families

2013

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2031

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Demand factor trends and impacts on service delivery are summarised in the following Table;

Demand Factor Present Position Projection Impact on Services

Population 124096 estimated population 2013 241,613 by 2031 (based on 4.45% growth from 2011 Census recorded population)

Population growth will be mostly supported by green-field development meaning a greater number of gifted assets to Council. Many community recreation and leisure Buildings will be built as per PSPs. Increased service ratios will need to be considered as part of Councils ongoing service planning ratios

Demographics Mixed Population with majority between 20-64 years

No significant shift As more families move to the area, demand for community services and subsequently the Building enablers required for delivery of these services will increase. Council will be required to provide and maintain adequate number of Buildings for delivery of Council based programs and in support of community based activities.

Satellite developments

6 PSPs to be built which will see land between Caroline Springs and Melton developed as well as the establishment of a large hub in the Toolern precinct. Existing areas of Diggers Rest and Melton North will be expanded to the municipality borders.

Development between Caroline Springs and Melton and on the outskirts of the township.

As above.

Change in demographics and increased quality of life

Long standing families living in the area

More people moving into the district from other municipalities and overseas migration. Increase in families and aging people

Demographic changes will result in a higher proportion of families and aging people residing within the community. Service planning will need to consider programs required to meet the needs of these groups and work with planning and development departments to ensure adequate Building assets are available to meet service delivery requirements. Functionality, capacity and service locations must also be considered when planning renewal, upgrade or replacement of existing Building assets. Design of new Building assets may incorporate strategies which allow operational function to be adapted to suit changing community need as the municipality matures.

Table B7: - Demand Factors, Project ions and Impact on Services

When considering the planning and programming of capital and maintenance works, the demand drivers include:

• Rapid asset growth; • Increased age of these assets; • Increased community expectation of accountability of asset maintenance; • Increased community expectation of, for example, quality of building functionality; • Remaining useful life, function and capacity of existing infrastructure; • Early failure of some donated assets; and • Increased costs as a result of supply / purchase of materials and labour.

B4.3 Changes in Technology Council is continuously monitoring new asset treatments or changes to practices within the industry as they become available, to implement improved lives of its assets. A detailed review of technology changes that may impact on the delivery of services covered by this BAMP is yet to be fully documented and is included as an improvement action in Section 8(B.8) of this Plan. In addition, Council’s adoption of the Greenhouse Action Plan will require further investigation to determine any impacts it may have on the BAMP.

B4.4 Demand management plan Demand for new services will be managed through a combination of enhanced management of existing assets, upgrading of existing assets and providing new assets to meet demand for services.

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Demand management practices will include non-asset solutions, insuring against risks and managing failures. Councils 20 year Community Infrastructure Plan considers the impact of PSP development, and population growth in driving infrastructure management decisions. The demands on Council building infrastructure will undoubtedly increase as noted at sub-section 4.1 proportionally with the predicted population growth. However, this will not be the only driver and opportunities for enhanced demand management planning in relation to the Buildings portfolio will be better understood when Council completes its service planning activities. The review of these plans is listed as a priority action in Section 8(B.8) of the AMP as well as Councils Asset Management Strategy.

B4.5 Asset Programs to Meet Demand B4.5.1 New Building Assets from Precinct Structure Plans & Sub divisional Growth Building infrastructure required for new developments might be built by the developers and/or their contractors, in accordance with Council’s design standards and industry guidelines. Most often, these projects will be funded by developers and built by Council through various legal agreement including Section 173 agreements. Proposed development projects are listed in the Community Infrastructure Plan 2011-2013 and have been recognised in Council’s Capital Works Planning. Demand drivers such as sub-divisional growth and development of PSPs accounts for the majority of new asset growth. Council has an integral role in the planning of these assets to deliver community services, working in collaboration with State & Federal Government agencies and other authorities, to plan and implement these community acquisitions. In the instance of developer contributed assets works are completed by the developer and handed over to Council for ownership and maintenance for the remainder of their useful life. A defects liability period is entered into and varies from 1 to 7 years, (depending on the nature of the asset). Council presently has limited documented process with regard to the Building asset handover process. Council is currently investigating options to formalise this process. The activity is included as an improvement action in section 8(B.19) of this plan As a result of PSPs currently under development or commencing within the City it is anticipated that the building portfolio will grow significantly between 2014 and 2018. The building portfolio network associated with PSP development is described below.

GROWTH FROM PRECINCT STRUCTURE PLANNING 2013-2019

Buildings Current Asset Replacement Value

Average Annual Growth ($)

Estimated Value of Gifted Assets at added to network between 2013- 2019

Estimated Asset Network Value with additional Gifted Assets2019

Percentage increase. (Approx)

$140,826,892.00 $10,998,195 $54,991,195 $ 195,817,087 72%

Table B8:– New Assets f rom PSP Development

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B4.5.2 Capital Program

Melton City Council will experience substantial growth until the City meets maximum built capacity. In addition to works scheduled as part of PSPs and associated Sub-divisional growth Council will need to invest in infrastructure renewal and upgrade improvements to ensure continued delivery of its programs and in order to respond to community requirements.

Council’s Asset planning model includes capital infrastructure programs responsive to community growth, desired Levels of Service and budgetary constraints The annual Capital Works Program is made public each year and is published with Council’s Annual Plan and Budget. The annual Capital Works Program for 2014-2015 is attached in Appendix 2 of the AMP. These assets are funded through a combination of Council’s General Revenue, PSP Contribution and Grants funding. In addition to the annual Capital Works Program, Long Term Planning takes place by Council and is included in Council’s Strategic Resource Plan and the Long Term Financial Plan. Routine maintenance is described as scheduled, reoccurring work tasks that are necessary to keep assets operating, including instances where components of the asset fail and need immediate repair or replacement to return the asset to an operational state.

B4.5.3 Maintenance Planning

Maintenance plans includes responsive, programmed and scheduled (cyclic) maintenance work activities. Maintenance expenditure for each sub class associated with this plan is shown at Part A-G.

Maintenance Type Description

Responsive Maintenance Responsive maintenance is described as unplanned repair work carried out in response to component failures or customer service requests.

Programmed Maintenance Programmed maintenance includes substantive repair, renewal and minor improvement work that is identified and managed through a PMP (planned maintenance program). PMP activities include inspection, assessing component condition against failure / breakdown experience, prioritising, scheduling, procuring resources, implementing the work and reporting the outcomes to develop a maintenance history to enable continually improved maintenance and service delivery performance. The program may include renewal (by replacement) of higher value components and subcomponents that are undertaken on a regular basis, including for example, repainting or external building fabric replacements.

Programmed Maintenance Programmed maintenance includes substantive repair, renewal and minor improvement work that is identified and managed through a PMP (planned maintenance program). PMP activities include inspection, assessing component condition against failure / breakdown experience, prioritising, scheduling, procuring resources, implementing the work and reporting the outcomes to develop a maintenance history to enable continually improved maintenance and service delivery performance. The program may include renewal (by replacement) of higher value components and subcomponents that are undertaken on a regular basis, including for example, repainting or external building fabric replacements

Table B9:– Maintenance Definit ions

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B4.5.3 Estimated Valuations and Maintenance

Council presently owns and is responsible for maintenance of building assets to the value of $140m. Based on planning forecasts this will increase to an estimated $195 million by 2018/2019 an estimated increase in building assets by 71%. The table below illustrates increased building asset growth between 2013 and 2018.

F igure B9: – New Assets f rom Growth 2015-2019 including Accumulated Asset Growth, PSP Development and Capital Projects (excludes land)

Acquiring these new assets will commit Council to support and fund ongoing operations and maintenance costs for the effective life of the asset. Sub-section 5 of this plan, Lifecycle Management Plan, details estimated operating and maintenance costs based on current levels of service.

B5.0 Lifecycle Management Plan

B5.1 Background Data

B5.1.1 Physical parameters

The assets covered by this asset management plan include; • Commercial & Civic Buildings; • Community Buildings; • Council Housing, Residential Buildings; • Industrial Buildings including warehousing; • Preschool and other Children’s Services Buildings; • Public Conveniences; • Recreation Buildings.

2015 2016 2017 2018 2019 Capital Addition Developer Contribution and Grant

Funded $17,961,918.00 $17,741,756.00 $2,035,003.00 $6,348,446.00 $13,301,626.00

Capital Addition Council Funded $6,905,800.00 $2,600,000.00 $- $1,397,272.00 $-

Asset Replacement Value $140,826,892.00 $165,694,610.00 $186,036,366.00 $188,071,369.00 $195,817,087.00

$-

$50,000,000.00

$100,000,000.00

$150,000,000.00

$200,000,000.00

$250,000,000.00

Ass

et R

epla

cem

ent V

alue

Asset Growth - Buildings City of Melton 2015-2019

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Parts A – G of this plan provided details for life cycle management of each asset group covered by this plan including valuation, risk management, routine maintenance, and renewal, replacement, creation and upgrade planning. Below are summary tables for assets covered in these parts.

B5.2 Building Design, Construction Standards & Specifications Council’s Asset Managers take the following principles into consideration, when determining design and implementation requirements for new buildings, component renewals and upgrade works to existing assets:

• Functional classification; • Hierarchy; • Intended service delivery, including contingencies to allow for differing future service

delivery; • Community Use & Expectation; • Alignment with Council’s Policy, Strategies and plans.

This plan prescribes the use the following standards and guidelines for new construction, expansions, upgrades, component renewal and maintenance of existing infrastructure:

• Melton City Council standard drawings (as applicable); • Australian Standards referenced in Acts and Regulations applying to Building Assets; • Australian Standards referenced in the “Guide to Standards – Building and Construction”

published by SAI Global 7 May 2011; • Guide To Standards & Tolerances 2007, published by the Victorian Building Commission,

replaced by the Victorian Building Authority; • Building Condition & Performance Assessment Guidelines, Practice Note 3 Buildings,

published by Institute of Professional Works Engineers Australasia; • Omtrak Operations and Maintenance Manuals.

B5.3 Renewal, Replacement, Creation and Upgrade Planning Renewal expenditure is major work which does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original capacity. Work over and above restoring an asset to original capacity is considered upgrade/expansion or new works expenditure.

B5.3.1 Renewal planning

Assets components requiring renewal are identified by condition recorded in the asset register. Candidate proposals are selected based on criteria taking into account existing conditions which may impact service delivery from the asset. Council intends to use Assetic’s MyPredictor™ (prediction modelling software) to develop renewal plans for all Building components into the future. Criteria for the renewal of each building group are described in the following table.

Control Hierarchy Component Condition

Treatment

Yes Class 1 or 2 > = 4.0 Asset Renewal

Yes Class 3 or 4 > 5.0 Asset Renewal

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Table B10: Assets Renewal select ion criteria

.

Renewal priority selection criteria for building assets are described in the table BA7.

Criteria Weighting

Perceived Risk Factor 40%

Asset Capacity & Function 30%

Historical Performance History (i.e. maintenance failures)

20%

Historical Customer Requests 10%

Total 100%

Table B11: Assets Renewal prior ity weightings

B5.3.2 Creation / Upgrade Renewal Standards

Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those documented above.

B5.3.3 Creation / Upgrade/ Expansion Plan

New works are those works that result in the creation of an asset which previously did not exist. Upgrade works improve an existing asset beyond its service delivery capability. Currently, assets which require upgrade or expansion works are identified from various sources including Councils Community Infrastructure plan, precinct structure plans, Service delivery staff knowledge with regards to capacity and functionality of existing assets, Councillor or Community requests and actions identified by strategic plans.

The criteria to drive the buildings capital upgrade and acquisitions program is governed by the CIP (Community Infrastructure Plan). These drivers will require annual review and the CIP outputs are to be progressively updated by Council’s Community Infrastructure Planner. This activity is listed as an improvement action in section 8 (B.9) of the BAMP.

B5.4 Building Design, Construction Standards & Specifications

Council takes the following factors into consideration, when determining design and construction aspects for buildings and for assets which require renewal or upgrade works:

• Functional classification;

• Hierarchy;

• Intended service delivery and options to alter service delivery;

• Community Use & Expectation;

• Community Plans and Strategies;

This plan prescribes the use the following standards and guidelines for new construction, expansions, upgrades, component renewal and maintenance of existing infrastructure:

• Melton City Council standard drawings (as applicable);

• Australian Standards referenced in Acts and Regulations applying to Building Assets;

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• Australian Standards referenced in the “Guide to Standards – Building and Construction” published by SAI Global 7 May 2011;

• Guide To Standards & Tolerances 2007, published by the Victorian Building Commission, replaced by the Victorian Building Authority;

• Building Condition & Performance Assessment Guidelines, Practice Note 3 Buildings, published by Institute of Professional Works Engineers Australasia;

• Omtrak Operations and Maintenance Manuals

B6.0 Financial Summary

This sub-section summarises the financial requirements and funding strategies resulting from all the information presented in the previous sections of this plan and from parts A – G which follow this sub-section. The financial projections will be improved as further information becomes available on desired levels of service, current and projected future asset performance.

B6.1 Funding Strategy

Expenditure for capitalised renewal works is guided by Council’s Asset Capitalisation Policy. The capitalisation threshold for renewal works is prescribed by s4.5 Rule 2 and detailed in “table 4.7 – Asset Category/Asset Component tables” The threshold for Building component renewal is currently set at $5000. Components with a value less than $5000 are considered maintenance.

Programmed maintenance expenditure is forecast using level 2 component condition data included in MyData™, responsive maintenance allowances are based on historical 5 year expenditure trends.

Capitalised component renewals are included in Council’s 5 yr Capital Expenditure budget as described in the “5021_Building Component Renewal Program”. The content of this program is populated from the Renewal Plan (refer 5.1.2).

The financial projections are shown in the following bar graph for planned operating (operations and maintenance) and capital expenditure (renewal and upgrade / expansion / new assets) over the following 5 years. Figure 16 illustrates overall projected expenditure. Maintenance costs are forecast to trend in line with the value of the asset stock as shown in sub-section 4.5.3. Maintenance expenditure is calculated (following the current road maintenance contract) at a rate equivalent to 1.5% of asset replacement value.

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Figure B10: Projected 5 Year Operat ing (Bui ld ing Maintenance Contract) and Capital

Expenditure

The overall value of the Buildings asset portfolio is forecast to increase as new assets are added from construction and acquisition activity by Melton City Council and from assets gifted by land developers and others to Melton City Council. Figure B8 Illustrates that Councils building asset portfolio will increase by approximately 65% to $216 million from a forecast base of $140 million in 2014. Based on a current annual depreciation rate of 2%, asset depreciation will increase proportionally.

F igure B11 - Predicted Bui lding Asset value, Written Down Value and Annual Depreciat ion 2013-2018.

Carrying amount of the assets (Written Down Value) will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets. Forecast of the asset’s carrying amount is shown in the above table.

B6.3 Key assumptions made in financial forecasts This sub-section details the key assumptions made in presenting the information contained in the asset management plan and in preparing forecasts of required operating and capital expenditure

$0.00

$5,000,000.00

$10,000,000.00

$15,000,000.00

$20,000,000.00

$25,000,000.00

$30,000,000.00

Capital expenditure

Maintenance Expenditure

2014 2015 2016 2017 2018 2019 Annual Depreciation $2,689,319. $2,816,537. $3,313,892. $3,720,727. $3,761,427. $3,916,341. Replacement Value $140,826,89 $140,826,89 $165,694,61 $186,036,36 $188,071,36 $195,817,08 Written Down Value $99,064,304 $96,247,767 $117,801,59 $134,422,62 $132,696,19 $136,525,57

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

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and asset value, depreciation expense and carrying amount estimates. It is presented to gain an understanding of the levels of confidence in the data behind the financial forecasts. Key assumptions made in this asset management plan are:

• The current levels of service will remain constant over the life of this BAMP. • The treatment and maintenance costs are based on Council’s current service contracts

schedule of rates and may not directly compare to the actual costs of Councils internal service provision;

• All predicted financial figures are based on 2012/13 rates and are not adjusted by the inflation rate for the particular year of works;

• The projected population growth will be in line with that documented in Section 4 of the AMP;

• The projected asset stock will be in line with that documented in Section 4 of the AMP.

B6.4 Forecast Reliability and Confidence It is envisaged that accuracy of these future financial forecast will be improved in future revisions of this asset management plan by the following actions:

• Further refinement and improvement of the prediction modelling life-cycle paths and decisions ;

• Refinement of the levels of service being delivered via consultation with the Community

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BA1 General- Commercial & Civic Buildings

Part A of the BAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Commercial and Civic buildings owned or operated by the City of Melton. Assets covered at Part A represent approximately 20% (Replacement value) and 5% (Qty) of Councils Building Assets and includes the following;

Asset Subclass Description

Civic Buildings Buildings assigned to offer civic services to the community. Includes Council chambers, Customer Service Points, Libraries and staff administrative offices.

Commercial Buildings Buildings used by Council or the community for the purpose of conducting profit based business opportunity

Table BA1. Descr ipt ion of Commercial & Civic Bui ldings

BA2 Supporting Documents and Strategies Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read as a whole. Supporting Plans Documents and Strategies relevant to the Building assets at City of Melton include but are not limited to;

• Asset Management Strategy; • Precinct Structure Plans; • Community Infrastructure Plan; • Green Action Plan; • Legislative Documents as listed in sub-section 3.2 of the BAMP.

BA3 Capacity and Performance Council’s Commercial and Civic buildings are generally provided to meet relevant design standards where available. Council will undertake to develop the current Civic Centre during the life of this plan. While condition of the asset is sound, the Civic centre has exceeded maximum capacity for staff and officers and more floor space is required.

BA4 Condition Assessment Figure BA1 illustrates that of the 17 Commercial and Civic Assets held on the asset register, the majority are in very good or better condition. Regardless, as noted above Council has selected the Melton Civic Centre for upgrade during the life of the plan in consideration of capacity and functionality criteria.

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F igure BA1 Distr ibution of Asset Condit ion – Commercial and Civic Bui ldings 1 July 2014

BA5 Asset Valuation & Sustainability

The following table illustrates the current value of Commercial and Civic buildings across the municipality as at July 1, 2014.

Current Replacement Cost $46,224,872

Depreciated Replacement Cost/ Written Down Value $38,102,756

Annual Depreciation Expense $800,406

Table BA2 Current Asset Value – Commercial & Civic Assets at July 1 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset component renewal, and functionality upgrades. Table BA3 describes the sustainability and renewal ratios (based on a 5 year average) as well as service potential for the Commercial and Civic assets.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio

Capital Expenditure/ Annual Depreciation

141%70 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average Desired Capital Expenditure

100% 60-80%

Remaining Service Potential

Written Down Value / Replacement Value

82% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable Value

1.73% 0-3%

Table BA3 –Sustainabi l i ty and Renewal Rat ios- Commercial & Civic Bui ldings at July 1 2014

Based on current projections Council is allocating funds above that required to improve current service levels or condition of its Commercial and Civic building components. Apart from the

70 This result is based on average capital expenditure for renewal and upgrade works valued at $11,529,504 (2014-2018). Excludes allocation of developer and grant funds for new capital works.

7% 7%

73%

13%

0% 0% 0%

Overall Condition Index Commercial and Civic Buildings (Total Assets = 17)

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

187

sustainability ratio, actual results are within acceptable parameter benchmarks. This is explained by the allocation of substantial capital funding for this asset sub class including planned major component renewal and functionally upgrades for the Melton Civic Centre, and as such it is anticipated that there is likely to be no significant funding gap or backlog across this asset sub class. Revaluation of the assets, scheduled for 2017 should reflect an increase in service potential of this asset group as a result of this planned capital expenditure.

It should be noted that routine maintenance activities also contribute to the improvement of assets. These improvements are realised by proactive, preventative and responsive programs. To date these benefits have not been applied to the asset valuation, these omissions may also include significant renewals or upgrade improvements. Predictive modelling across the asset class will assist Council to establish programs for upgrade and component renewal of building assets, funding for which may be better allocated as ongoing capital programs rather than annual maintenance allocations. Such action would be expected to better inform asset sustainability data into the future. Predictive modelling across the asset group will occur as data sets are updated and improved. This is noted as an improvement action in section 8(B.2) of the BAMP.

BA6 Maintenance Programs & Expenditure

The table below illustrates maintenance breakdown for Commercial and Civic Buildings.

Year Maintenance Type

Responsive Programmed Scheduled Total

2009/2010 $457,240 $213,680 $184,891 $855,811

2010/2011 $371,070 $117,545 $631,979 $1,120,594

2011/2012 $297,003 $116,311 $203,549 $616,863

2012/2013 $1,149,762 $117,929 $53,510 $1,321,201

2013/2014 $542,703 $126,886 $116,489 $786,078

Table BA4 – Maintenance Expenditure (5 years) - Commercial & Civic Bui ldings

Programmed and scheduled maintenance activity makes up approximately 40% of the total maintenance expenditure for this asset group. Overall this maintenance expenditure appears adequate to meet the desired condition service levels as the majority of the group’s OCI is >3.

Implementation of level 2 inspection data is continuing combined with historical data and local knowledge to drive the formation of high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will verify the required expenditure and funding commitments.

Maintenance expenditure is calculated at a rate equivalent to 0.2% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Community Buildings 2014 – 2018.

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F igure BA2 Current & Projected Maintenance Expenditure Bui ldings 2014-2018

associated with asset growth – Bui lding Assets

In the short term it is anticipated that current maintenance expenditure will ensure that Councils building assets continue to be maintained to a good level of service. As a growth area Council, Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

BA7 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program considers factors such as;

• PSP Development;

• Community Infrastructure Plan;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015

2016 2017

2018

$ M

aint

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2014 2015 2016 2017 2018 Building Maintenance Budget $4,248,485.87 $4,248,485.87 $4,588,364.74 $4,955,433.92 $5,351,868.63

Current and Projected Maintenance Expenditure City of Melton - All Buildings 2014-2018

189

The projected capital expenditure profile for 2015 –2019 for Commercial and Civic Buildings is shown at figure BA2. This represents Councils Capital Investment, developer funded Initiatives, grants or other third party funding. Allocations are itemized in tables BA10 & 11 as new, upgrade, renewal and expansion funding.

Assuming that Council continues to deliver the same level of service to the community with respect to Community building assets future maintenance costs should be allocated to increase in line with the value of the asset stock.

F igure BA3. Capital Expenditure – Commercial & Civic Bui ldings 2015- 2019

Table BA10 summarizes Council’s planned capital expenditure for Commercial and Civic Buildings beginning from the 2014/2015 financial year to 2018/2019.

Asset Group Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Commercial & Civic Buildings

Upgrade 7,000,000.00 2,500,000.00 0.00 0.00 0.00

Renewal 105,000 0.00 0.00 0.00 0.00

New 4,675,800.00 0.00 0.00 0.00 0.00

Expansion 2,859,504 2,330,000.00 0.00 0.00 0.00

Table BA5: Planned Capital expenditure – Counci l funding

Table BA11 illustrates funding from developer and third party sources. The majority of this funding is allocated to planned renewal and upgrade of the existing Melton Civic Centre in addition to fit-out of a new administration facility to be leased in the Melton Township.

Asset Group Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Commercial & Civic Buildings

Upgrade 0.00 0.00 0.00 0.00 0.00

Renewal 0.00 0.00 0.00 0.00

New 8,156,488.00 0.00 0.00 0.00 0.00

Expansion 200,000 1,050,000.00

Table BA6: Planned Capital expenditure – other funding sources

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

2015 2016 2017 2018 2019

Capital Expenditure - Commercial and Civic Buildings 2015-2019

Capital Projects (Council Funded)

Developer/Grant Funded

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Allocated capital expenditure for this asset group is considered sufficient. As asset practices mature strategic modelling across the asset portfolio shall provide guidance on future spending, both in terms of capital improvement and also maintenance programming to provide optimal lifecycle management of the assets. Continued improvement of existing datasets to enable this modelling, is listed as an improvement action in Section 8(B6) of the BAMP.

BA8 Disposal of Commercial and Civic Buildings

Disposal is defined as any activity associated with removing an asset from ‘service’ through decommissions, including sale, demolition or relocation. Council has not identified any Commercial or Civic Buildings within its portfolio that is currently in excess to service delivery requirements.

191

BB1 General - Community Buildings The Buildings Asset Management Plan (BAMP) comprises Sub-section 3 of the Councils Asset Management Plan. Part B of the BAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Community Buildings owned or operated by the City of Melton. Assets covered at Part B represent approximately 23% (Qty) and 16% (Replacement Value) of Councils Building Assets and includes the following;

Asset Sub Class Description

Community Centres Buildings assigned to offer community services. Generally located within a hub allowing ease of access via public transport and a range of service offerings in one single locality.

Senior Citizens Centres Buildings used by senior community members to participate in social and learning activities. May or may not include kitchen facilities.

Maternal Child Health Centres Often located within community centres or schools Maternal Child Health Centres provide community access to MCHC nursing services

Libraries Buildings which include learning and resource areas, meeting rooms and lecture rooms/theatres. Accessible to the wider community and generally located within key hub areas.

Community Halls Buildings maintained for the use of community groups and activity. Examples include scout and guide halls.

Table BB1. Descr ipt ion of Community Bui ldings

BB2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Precinct Structure Plans • Community Infrastructure Plan • Green Action Plan • Legislative Documents as listed in sub-section 3.2 of the BAMP

BB3 Capacity and Performance- Community Buildings

Council’s Community buildings are generally provided to meet relevant design standards where available. It is understood that most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s expansion.

BB4 Condition Assessment- Community Buildings

Figure BB1 illustrates that of the 70 Community Building Assets held on the asset register, the majority are in very good or better condition.

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F igure BB1 Distr ibution of Asset Condit ion – Community Bui ldings as at1 July 2014

BB5 Asset Valuation & Sustainability

Table BB3 illustrates the current value of Community Buildings across the City of Melton as at July 1, 2014. Assets were last re-valued at 1 July 2014, however data is to be re validated and entered into the asset register periodically.

Current Replacement Cost $33,203,010

Depreciated Replacement Cost/ Written Down Value $22,919,459

Annual Depreciation Expense $662,273

Table BB2 Current Asset Value – Community Bui ldings as at July 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. Table BB4 illustrates the sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Community Building assets.

Table BB3 Asset Sustainability – Community Buildings as at 1 July 2014

Table BB3 illustrates that Council has allocated insufficient capital to maintain asset sustainability into the future. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Community Buildings this would be estimated

1%

21%

49%

29%

Overall Condition Index Community Buildings (Total Assets = 70)

Condition 0

Condition 1

Condition 2

Condition 3

193

at approximately an additional amount of $2.6 million, or total capital improvement investment of approximately $6.5 million over the next 5 years.

It should be noted that routine maintenance activities also contribute to the improvement of assets. These improvements are realised by proactive, preventative and responsive programs. To date these benefits have not been applied to the asset valuation, these omissions may also include significant renewals or upgrade improvements.

Predictive modelling across the asset class will assist Council to establish programs for upgrade and component renewal of building assets, funding for which may be better allocated as ongoing capital programs rather than annual maintenance allocations. Such action would be expected to better inform asset sustainability data into the future. Predictive modelling across the asset group will occur as data sets are updated and improved. This is noted as an improvement action in section 8B.2 of the AMP.

BB6 Asset Maintenance & Expenditure

A summary of maintenance expenditure for the past five financial years is included in the following table

Year Maintenance

Responsive Programmed Scheduled Totals

2009/2010 $175,314 $115,402 $83;932 $374,648

2010/2011 $242,746 $93,948 $97,135 $433,829

2011/2012 $263,462 $49,993 $82,165 $395,620

2012/2013 $406,246 $30,227 $35,403 $471,876

2013/2014 $292,018 $156,017 $45,094 $493,129

Table BB4 – Maintenance Expenditure Community Bui ldings (5 years)

Assuming that Council continues to deliver the same level of service to the community with respect to Community Buildings assets future maintenance costs should be allocated to increase in line with the value of the asset stock.

Maintenance expenditure is calculated at a rate equivalent to 0.2% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Community Buildings 2014 – 2018.

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Figure BB2 Current & Projected Maintenance Expenditure Bui ldings 2014-2018

associated with asset growth – Bui lding Assets

Planned maintenance work is calculated at approximately 36% of Councils total maintenance expenditure. Overall this maintenance expenditure appears adequate to meet the desired condition service levels as the majority of the group’s OCI is <3. Implementation of level 2 inspection data is continuing combined with historical data and local knowledge to drive the formation of high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will verify the required expenditure and funding commitments.

In the short term it is anticipated that current maintenance expenditure will ensure that Councils open space assets continue to be maintained to a good level of service. As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

BB7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program considers factors such as;

• PSP Development; • Community Infrastructure Plan; • Population Growth; • Current Asset Condition Data; • Levels of Service ; • Available resources; and • Comparison of renewal v new assets.

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015

2016 2017

2018

$ M

aint

enan

ce E

xpen

ditu

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2014 2015 2016 2017 2018 Building Maintenance Budget $4,248,485.87 $4,248,485.87 $4,588,364.74 $4,955,433.92 $5,351,868.63

Current and Projected Maintenance Expenditure City of Melton - All Buildings 2014-2018

195

The projected capital expenditure profile for 2015 –2019 for Community Buildings is shown at figure BB3. This represents Councils Capital Investment, developer funded Initiatives, grants or other third party funding. Allocations are itemized in tables BB10 & 11 as new, upgrade, renewal and expansion funding.

. Figure BB3. Capital expenditure – Community Bui ldings 2014- 2018

Table BB5 summarizes the Council’s planned capital expenditure for Community buildings beginning from the 2014/2015 financial year to 2018/2019. This is detailed as new, upgrade, renewal and expansion funding. Significant development relates to new construction which is required to support the extensive growth of the municipality.

Asset Group

Activity 2014/15

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Community Buildings

Upgrade 349,000 0.00 0.00 0.00 0.00

Renewal 1,049,105 500,000 500,000 500,000 500,000

New 2,200,000 2,600,000 1,397,272 0.0000

Expansion 546,925 0.00 0.00 0.00

Table BB5: Planned Capital expenditure – Counci l funding

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

2014 2015 2016 2017 2018

Capital Expenditure & Development Community Buildings 2015-2019

Capital Projects (Council Funded)

Capital Development (Developer Contributions and Grant Funded)

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Table BB6 illustrates funding from developer and third party sources. In line with Councils Asset Management Policy, renewal, upgrade and expansion funding are prioritised in the planning of the capital work programmes.

Asset Group Activity 2014/15

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Community Buildings

Upgrade 130,000 0.00 0.00 0.00 0.00

Renewal 0.00 0.00 0.00 0.00 0.00

New 4,850,000 0.00 2,035,003 3,102,728 11,335,123

Expansion 0.00 0.00 0.00 0.00 0.00

Table BB6: Planned Capital expenditure – other funding sources

Allocated capital expenditure for the Community Buildings is theoretically insufficient as shown above however this sub class of buildings includes several newer assets which, at present do not require capital improvements. As asset practices mature strategic modelling across the asset portfolio shall provide guidance on future spend both in terms of capital improvement and also maintenance programming to provide optimal lifecycle management of the assets. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8(B.5) of the BAMP.

BB8 Disposal of Community Buildings Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Community Buildings within its portfolio that are excess to requirements.

197

BC1 General – Council Housing The Buildings Asset Management Plan (BAMP) comprises Sub-section 3 of the Councils Asset Management Plan. Part C of the BAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Council Housing Facilities owned or operated by the City of Melton. Assets covered at Part C represent approximately 2% (Replacement Value) and 10% (Qty) of Councils Building Assets and includes the following;

Asset Subclass Description

Council Housing Buildings assigned to offer accommodation to individual vulnerable community members and their family.

Community Housing Buildings assigned to offer accommodation to vulnerable community members - often group housing or respite services.

Garages and Carports Structures co-located with above dwellings

Table BC1 Types of Council Housing in City of Melton

BC2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Precinct Structure Plans • Community Infrastructure Plan • Green Action Plan • Legislative Documents as listed in sub-section 3.2 of the BAMP

BC3 Capacity and Performance

Melton City Council’s Council Housing Facilities are generally provided to meet design standards where these are available. It is understood most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion.

BC4 Condition Assessment

Figure BC1 illustrates that of the 28 Council Housing Assets held on the asset register, the majority are in very good or better condition.

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. F igure BC1. Distr ibution of Asset condit ion – Counci l Housing 1 July 2014

The above chart illustrates that of the 28 Council Housing Assets held on the asset register, the majority are in good or better condition.

BC5 Asset Valuation & Sustainability Table BC3 illustrates the current value of Council Housing Facilities across the City of Melton as at July 1, 2014. Assets were last re-valued at 1 July 2014, however data is to be validated and entered into the asset register during the coming year.

Current Replacement Cost $2,138,100

Depreciated Replacement Cost/ Written Down Value $747,004

Annual Depreciation Expense $452,762

Table BC2 Current Asset Value – Counci l Housing Faci l i t ies

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates the sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Council Housing assets.

Measure Formula Result as at 30 June

2014 Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

0%71 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average Desired Capital Expenditure

0% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

30% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable Amt

0.5% 0-3%

Table BC3 –Sustainabi l i ty and Renewal Rat ios Counci l Housing as at Jul 1 2014

71 This result is based on average capital expenditure for renewal and upgrade works valued at $0.00 (2014-2018). Excludes allocation of developer and grant funds for new capital works

7%

47% 46%

Overall Condition Index Council Housing

(Total Assets = 28)

Condition 1

Condition 2

Condition 3

199

Table BC3 illustrates that Council has not allocated adequate capital to maintain asset sustainability into the long term. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Council Housing this would be estimated at approximately an additional amount of $1 million, or total capital improvement investment of approximately $1million over the next 5 years.

At present Council has not allocated capital funding to renew, upgrade or expand Council housing. Given that asset condition is good or above and that routine maintenance activity is likely to maintain this condition there is no indicator that such allocation of funds, as indicated above would be in the best interest of the greater community.

It should be noted that routine maintenance activities also contribute to the improvement of assets. These improvements are realised by proactive, preventative and responsive programs. To date these benefits have not been applied to the asset valuation, these omissions may also include significant renewals or upgrade improvements.

Predictive modelling across the asset class will assist Council to establish programs for upgrade, renewal and expansion of assets, funding for which may be better allocated as ongoing capital programs rather than maintenance programming. Such action would be expected to better inform asset sustainability data into the future. Predictive modelling across the asset group will occur as data sets are updated and improved. This is noted as an improvement action at section 8 of the BAMP

BC6 Asset Maintenance & Expenditure Routine maintenance is described as scheduled, reoccurring work tasks that are necessary to keep assets operating, including instances where components of the asset fail and need immediate repair or replacement to return the asset to an operational state.

A summary of maintenance expenditure for the past five financial years is included in the following table

Year Maintenance

Reactive Programmed Scheduled

2009/2010 $91,905 $12,982 $2,578

2010/2011 $78,419 $29,921 $3,921

2011/2012 $60,821 $44,020 $3,985

2012/2013 $68,351 $5,902 $1,144

2013/2014 $62,454 $47,293 $1,176

Table BC4 – Maintenance Expenditure (5 years) – Counci l Housing

Planned maintenance work is calculated at approximately 29.70% of Councils total maintenance expenditure. Overall this maintenance expenditure appears adequate to meet the desired condition service levels as the majority of the group’s OCI is <3. Implementation of level 2 inspection data is continuing combined with historical data and local knowledge to drive the formation of high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will verify the required expenditure and funding commitments

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Assuming that Council continues to deliver the same level of service to the community with respect to Community Buildings assets, future maintenance costs should be allocated to increase in line with the value of the asset stock. Maintenance expenditure is calculated at a rate equivalent to 0.2% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Community Buildings 2014 – 2018.

F igure BA2 Current & Projected Maintenance Expenditure Bui ldings 2014-2018

associated with asset growth – Bui lding Assets

Planned maintenance work is calculated at approximately 36% of Councils total maintenance expenditure. Overall this maintenance expenditure appears adequate to meet the desired condition service levels as the majority of the group’s OCI is <3. Implementation of level 2 inspection data is continuing combined with historical data and local knowledge to drive the formation of high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will verify the required expenditure and funding commitments.

In the short term it is anticipated that current maintenance expenditure will ensure that Councils open space assets continue to be maintained to a good level of service. As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

BC7 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015

2016 2017

2018

$ M

aint

enan

ce E

xpen

ditu

re

2014 2015 2016 2017 2018 Building Maintenance Budget $4,248,485.87 $4,248,485.87 $4,588,364.74 $4,955,433.92 $5,351,868.63

Current and Projected Maintenance Expenditure City of Melton - All Buildings 2014-2018

201

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

Council has not allocated funding toward capital improvement of housing assets during the life of this plan. Allocated capital expenditure for the Council Housing Facilities Buildings is noted to be insufficient to renew and upgrade existing assets held within the register. As asset practices mature strategic modelling across this asset type shall provide guidance on future spend both in terms of capital improvement and also maintenance programming. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8(B.7) of this BAMP.

BC8 Disposal of Buildings

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Council Housing facilities within its portfolio that are excess to requirements.

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203

BD1 General – Industrial Building Facilities The Buildings Asset Management Plan (BAMP) comprises Sub-section 3 of the Councils Asset Management Plan. Part D of the BAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Industrial Building Facilities owned or operated by the City of Melton. Assets covered at Part D represent approximately 10% (Qty) and 0.7% (Replacement Value) of Councils Building Assets and includes the following;

Asset Subclass Description

Warehouse Large free standing assets with minimal components. May also be co-located with other assets. Used for bulk storage

Factory Large free standing assets that may or may not have several components. May be used to facilitate delivery of service on behalf of and to the community. May be commercially operated or used to deliver community programs.

Shed Smaller buildings which in most instances are co-located with larger parent assets. Used for storage.

Table BD1 Types of Industrial Buildings in City of Melton

BD2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Precinct Structure Plans • Community Infrastructure Plan • Green Action Plan • Legislative Documents as listed in sub-section 3.2 of the BAMP

BD3 Capacity and Performance

Melton City Council’s Warehouse and Industrial Facilities are generally provided to meet design standards where these are available. It is understood most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion.

BD4 Condition Assessment Figure BD1 illustrates that of the 34 Warehouse and Industrial Building Facility Assets held on the asset register, the majority are in good or better condition.

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Figure BD1. Distribution of asset condition – Industrial Buildings as at 1 July 2014

BD5 Asset Valuation & Sustainability The table below illustrates the current value of Warehouse and Industrial Facilities across the City of Melton as at July 1, 2014. Assets were last re-valued at 1 July 2014, however data is to be validated and entered into the asset register during the coming year.

Current Replacement Cost $1,074,630

Depreciated Replacement Cost/ Written Down Value $656,501

Annual Depreciation Expense $21,493

Table BD2 Current Asset Value – Industrial Bui ldings at July 1 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Warehouse and Industrial Facilities Facility assets. As advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion.

3% 0%

47% 50%

Overall Condition Index Industrial Building Facilities (Total Assets = 34)

Condition 0

Condition 1

Condition 2

Condition 3

205

Measure Formula Result as at 30 June

2014 Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

13%72 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average Desired Capital Expenditure

0% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

60% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable Amt

1% 0-3%

Table BD3 –Sustainabi l i ty and Renewal Rat ios- Industr ial Bui ldings as at July 1 2014

Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability into the long term. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Council Housing this would be estimated at approximately an additional amount of $245,000, or total capital improvement investment of approximately $300,000 over the next 5 years.

At present Council has not allocated adequate capital funding to renew, upgrade or expand Council Warehouses and Industrial Buildings. Given that asset condition is good or above and that routine maintenance activity is likely to maintain this condition there is no indicator that such allocation, as indicated above would be in the best interest of the greater community.

It should also be noted that routine maintenance activities may also contribute to improvement of assets. As these improvements are done under maintenance programs, benefit is not applied to the asset even where there has been resultant renewal, upgrade or expansion benefit.

Predictive modelling across the asset class will assist Council to establish programs for upgrade, renewal and expansion of assets, funding for which may be better allocated as ongoing capital programs rather than maintenance programming. Such action would be expected to better inform asset sustainability data into the future.

As advanced asset practices are adopted Council will also consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will also provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. This is noted as an improvement action at section 8(B2) of the BAMP

72 Based on capital improvement spend of $55,000 between 2015 and 2019

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BD6 Asset Maintenance & Expenditure A summary of maintenance expenditure for the past five financial years is included in the following table

Year Maintenance Type

Responsive Programmed Scheduled Total

2009/2010 $22,453 $47,567 $7,303 $77,323

2010/2011 $145,841 $27,515 $9,574 $182,930

2011/2012 $21,476 $58,724 $5,840 $86,040

2012/2013 $13,073 $3,553 $11,149 $27,775

2013/2014 $61,226 $15,330 $9,375 $85,931

Table BD4– Maintenance Expenditure (5 years) - Industrial Bui ldings

Planned maintenance work is calculated at approximately 29.70% of Councils total maintenance expenditure. Overall this maintenance expenditure appears adequate to meet the desired condition service levels as the majority of the group’s OCI is <3. Implementation of level 2 inspection data is continuing combined with historical data and local knowledge to drive the formation of high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will verify the required expenditure and funding commitments

Assuming that Council continues to deliver the same level of service to the community with respect to Community Buildings assets, future maintenance costs should be allocated to increase in line with the value of the asset stock.

Maintenance expenditure is calculated at a rate equivalent to 0.2% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Community Buildings 2014 – 2018.

207

F igure BD2 Current & Projected Maintenance Expenditure Bui ldings 2014-2018

associated with asset growth – Bui lding Assets

BD7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development; • Population Growth; • Current Asset Condition Data; • Levels of Service ; • Available resources; and • Comparison of renewal v new assets.

The projected capital expenditure profile for 2014 –2018 for Warehouse and Industrial Facilities

is shown below.

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015

2016 2017

2018

$ M

aint

enan

ce E

xpen

ditu

re

2014 2015 2016 2017 2018 Building Maintenance Budget $4,248,485.87 $4,248,485.87 $4,588,364.74 $4,955,433.92 $5,351,868.63

Current and Projected Maintenance Expenditure City of Melton - All Buildings 2014-2018

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F igure BD3. Capital expenditure – Industrial Bui ldings 2015-2019

The table below provides a breakdown of planned capital expenditure for Warehouse and Industrial Facilities from 2014/2015 financial year to the 2018/2019 financial year. This expenditure incorporates Capital Works funding only. There are presently no projects allocated under developer contributions or grant funding.

Asset Group Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Buildings

Industrial

Upgrade 25,000.00

Renewal

New 30,000.00

Expansion

Table BD5: Planned Capital expenditure – Industrial Buildings

Allocated capital expenditure for the Warehouse and Industrial Facilities Buildings is noted to be insufficient to renew and upgrade existing assets held within the register. As asset practices mature strategic modelling across this asset type shall provide guidance on future spend both in terms of capital improvement and also maintenance programming. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8(B2) of this BAMP.

BD8 Disposal of Buildings Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Warehouse and Industrial Facilities within its portfolio that is excess to requirements.

$-

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

2015 2016

2017 2018

2019

Capital Expenditure- Industrial Facilities 2014-2018

Capital Projects

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BE1 General- Childrens Services Facilities

The Buildings Asset Management Plan (BAMP) comprises Section 3 of the Councils Asset Management Plan. Part E of the BAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Children Services Centres owned or operated by the City of Melton. Assets covered at Part E represent approximately 10% (Qty) and 10% (Replacement Value) of Councils Building Assets and includes the following;

Asset Subclass Description

Preschool / Kindergarten Buildings utilized to provide early years development programs, nurturing and education opportunities for Children.

Table BD1 Types of Industrial Childrens’ Services Centres in City of Melton

BE2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Precinct Structure Plans • Community Infrastructure Plan • Green Action Plan • Legislative Documents as listed in sub-section 3.2 of the BAMP

BE3 Capacity and Performance

Melton City Council’s Preschool and Childcare Facilities are generally provided to meet design standards where these are available. It is understood most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion.

BE4 Condition Assessment

Figure BE3. Distribution of asset condition – Commercial and Civic Buildings 1 July 2014

8%

52%

36%

4%

Overall Condition Index Preschool and Childcare Facilities (Total Assets = 22)

Condition 1

Condition 2

Condition 3

Condition 4

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The above chart illustrates that of the 22 Preschool and Childcare Facility Assets held on the asset register, the majority are in good or better condition

BE5 Asset Valuation & Sustainability

The table below illustrates the current value of Preschool and Childcare Facilities across the City of Melton as at July 1, 2014. Assets were last re-valued at 1 July 2014, however data is to be validated and entered into the asset register during the coming year.

Current Replacement Cost $10,378,996

Depreciated Replacement Cost/ Written Down Value $6,498,124

Annual Depreciation Expense $42,762

Table BE2 Current Asset Value – Commercial & Civic Assets

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Preschool and Childcare Facilities Facility assets.

As advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion.

.

Measure Formula Result as at 30 June

2014 Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

45%73 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average Desired Capital Expenditure

57% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

60% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable Amt

0.41% 0-3%

Table BE3 –Sustainability and Renewal Ratios Childrens Service Facilities as at 1 July 2014

Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability into the future. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Preschool and Childcare Facilities this would be

73 Based on capital improvement spend of $1,600,000 between 2015 and 2019. These funds include developer contributed expansion of existing assets.

211

estimated at approximately an additional amount of $1.5 million, or total capital improvement investment of approximately $2.75 million over the next 5 years.

It should be noted however that routine maintenance activities may also contribute to improvement of assets. As these improvements are done under maintenance programs, benefit is not applied to the asset even where there has been resultant renewal, upgrade or expansion benefit.

Predictive modelling across the asset class will assist Council to establish programs for upgrade, renewal and expansion of assets, funding for which may be better allocated as ongoing capital programs rather than maintenance programming. Such action would be expected to better inform asset sustainability data into the future.

As advanced asset practices are adopted Council will also consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will also provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. This is noted as an improvement action at section 8(B2) of the AMP

BE6 Asset Maintenance & Expenditure

A summary of maintenance expenditure for the past five financial years is included in the following table

Year Maintenance

Responsive Programmed Scheduled Totals

2009/2010 $61,646 $24,690 $14,721 $101,057

2010/2011 $77,752 $85,000 $95,899 $258,651

2011/2012 $83,861 $8,935 $42,052 $134,848

2012/2013 $128,121 $13,751 $10,418 $152,290

2013/2014 $69,242 $89,747 $10,924 $169,913

Table BE4 – Maintenance Expenditure (5 years) Chi ldrens Services Faci l i t ies

Planned maintenance work is calculated at approximately 29.70% of Councils total maintenance expenditure. Overall this maintenance expenditure appears adequate to meet the desired condition service levels as the majority of the group’s OCI is <3. Implementation of level 2 inspection data is continuing combined with historical data and local knowledge to drive the formation of high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will verify the required expenditure and funding commitments

Assuming that Council continues to deliver the same level of service to the community with respect to Community Buildings assets, future maintenance costs should be allocated to increase in line with the value of the asset stock.

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Maintenance expenditure is calculated at a rate equivalent to 0.2% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Community Buildings 2014 – 2018.

F igure BE2 Current & Projected Maintenance Expenditure Bui ldings 2014-2018

associated with asset growth – Bui lding Assets

BE7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015

2016 2017

2018

$ M

aint

enan

ce E

xpen

ditu

re

2014 2015 2016 2017 2018 Building Maintenance Budget $4,248,485.87 $4,248,485.87 $4,588,364.74 $4,955,433.92 $5,351,868.63

Current and Projected Maintenance Expenditure City of Melton - All Buildings 2014-2018

213

Figure BE3. Capital expenditure – Children Services Centres 2015-2019

The table below provides a breakdown of planned capital expenditure for Pre School and Childcare facilities from 2014/2015 financial year to the 2018/2019 financial year as allocated through developer contributions and grant funding. This is shown as new, upgrade, renewal and expansion funding. Significant development is shown with respect to newly constructed assets which are required to support extensive growth of the community.

Asset Group Activity 2014/15

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Children Services Centres

Upgrade 0.00 0.00 0.00 0.00 0.00

Renewal 0.00 0.00 0.00 0.00 0.00

New 0.00 0.00 1,279,215.00 1,525,731.00 0.00

Expansion 1,600,000.00 0.00 0.00 0.00 0.00

Table BE5: Planned Capital expenditure – Commercial & Civic Bui ldings

The table below further illustrates capital expenditure showing Council allocated funding. In line with Councils Asset Management Policy renewal, upgrade and expansion funding are prioritised.

Asset Group Activity 2014/15

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Children Services Centres

Upgrade 0.00 0.00 0.00 0.00 0.00

Renewal 0.00 0.00 0.00 0.00 0.00

New 2,397,000 2,400,000 0.00 0.00 0.00

Expansion 0.00 200,000.00 0.00 0.00 0.00

Table BE6: Planned Capital expenditure – Counci l funding al locat ions

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

2015 2016 2017 2018 2019

Capital Expenditure & Development Children Services Centres

2015-2019

Capital Projects (Council Funded)

Capital Projects Developer and Grant Funded

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Allocated capital expenditure for the Children Services Centres is theoretically insufficient. As identified above however this sub class of buildings includes several newer assets which, at present do not require any capital improvement. As asset practices mature strategic modelling across this asset type shall provide guidance on future spend both in terms of capital improvement and also maintenance programming to provide optimal lifecycle management of this asset subclass. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8(B.1) of this BAMP.

BE8 Disposal of Buildings Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Children Services Centre within its portfolio that is excess to requirements.

215

BF1 General – Public Conveniences

The Buildings Asset Management Plan (BAMP) comprises Sub-section 3 of the Councils Asset Management Plan. Part F of the BAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Public Conveniences owned or operated by the City of Melton. Assets covered at Part F represent approximately 14% (Qty) and 0.7% (Replacement Value) of Councils Building Assets and includes the following;

Asset Subclass Description

Public Convenience Includes toilets, washrooms and changing facilities for public use which cater for all abilities.

Table RD1 – Types Public Conveniences

BF2 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Precinct Structure Plans • Community Infrastructure Plan • Green Action Plan • Legislative Documents as listed in sub-section 3.2 of the BAMP

BF3 Capacity and Performance

Melton City Council’s Public Convenience Facilities are generally provided to meet design standards where these are available. It is understood most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion.

BF4 Condition Assessment

F igure BF1. Distr ibution of Asset condit ion – Publ ic Convenience 1 July 2014

17%

51%

29%

3%

Overall Condition Index Public Convenience Facilities (Total Assets = 41)

Condition 1

Condition 2

Condition 3

Condition 4

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The above chart illustrates that of the 41 Public Convenience Facilities Assets held on the asset register, the majority are in good or better condition.

BF5 Asset Valuation & Sustainability The table below illustrates the current value of Industrial Building Facilities across the City of Melton as at July 1, 2014. Assets were last re-valued at 1 July 2014, however data is to be validated and entered into the asset register during the coming year.

Current Replacement Cost $2,531,562

Depreciated Replacement Cost/ Written Down Value $1,184,259

Annual Depreciation Expense $50,631

Table BF2 Current Asset Value – Publ ic Conveniences as at Ju ly 1 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Public Convenience assets.

As advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion.

Measure Formula Result as at 30 June

2014 Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation 3574 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average Desired Capital Expenditure

46% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

46% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable Amt

1.9 0-3%

Table BF3 –Sustainabi l i ty and Renewal Rat ios – Publ ic Conveniences as at 1 July 2014

Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability into the future. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Public Convenience Facilities this would be estimated at approximately an additional amount of $540,000, or total capital improvement investment of approximately $1 million over the next 5 years.

74 Based on capital renewal of $480,000 over 5 years. Does not incorporate new assets

217

It should be noted however that routine maintenance activities may also contribute to improvement of assets. As these improvements are done under maintenance programs, benefit is not applied to the asset even where there has been resultant renewal, upgrade or expansion benefit.

Predictive modelling across the asset class will assist Council to establish programs for upgrade, renewal and expansion of assets, funding for which may be better allocated as ongoing capital programs rather than maintenance programming. Such action would be expected to better inform asset sustainability data into the future. As advanced asset practices are adopted Council will also consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will also provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. This is noted as an improvement action at section 8 (B.2) of the BAMP.

BF6 Maintenance Programs & Expenditure

Routine maintenance is the regular ongoing work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

BF6.1 Maintenance Planning

Maintenance expenditure trends are shown at Table BF4.

Year Maintenance

Responsive Programmed Scheduled Total

2009/2010 $42,969 $16,670 $2,302 $61,941

2010/2011 $45,281 $19,117 $2,952 $67,350

2011/2012 $53,974 $10,742 $2,457 $67,173

2012/2013 $65,331 $106,039 $2,814 $174,184

2013/2014 $91,581 $779.35 $4,630 $96,990

Table BF4 – Maintenance Expenditure (5 years) - Publ ic Conveniences

Planned maintenance work is calculated at approximately 36% of Councils total maintenance expenditure for this Building type. Maintenance expenditure levels are considered to be adequate to meet required service levels. Council is implementing recent level 2 inspection data, combined with historical data and local knowledge to drive initial high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will result.

Assuming that Council continues to deliver the same level of service to the community with respect to Public Convenience assets future maintenance costs should be allocated to increase in line with the value of the asset stock.

Maintenance expenditure is calculated at a rate equivalent to 0.2% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Building Assets 2014 – 2018.

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F igure BF2 Current & Projected Maintenance Expenditure Bui ldings 2014-2018

In the short term it is anticipated that current maintenance expenditure will ensure that Councils Public Convenience assets continue to be maintained to a good level of service. As a growth area, Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

BF7 Capital Improvement Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development; • Population Growth; • Current Asset Condition Data; • Levels of Service ; • Available resources; and • Comparison of renewal v new assets.

The projected capital expenditure profile for 2014 –2018 for Public Conveniences is shown below. This represents council funding only. There are no allocated developer contributions or grant funds for upgrade, renewal or expansion of public convenience facilities.

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015

2016 2017

2018

$ M

aint

enan

ce E

xpen

ditu

re

2014 2015 2016 2017 2018 Building Maintenance Budget $4,248,485.87 $4,248,485.87 $4,588,364.74 $4,955,433.92 $5,351,868.63

Current and Projected Maintenance Expenditure City of Melton - All Buildings 2014-2018

219

F igure BF3. Capital Expenditure – Publ ic Conveniences 2015-2019

The table below provides a breakdown of planned capital expenditure for Public Conveniences Buildings from 2013/2014 financial year to the 2017/2018 financial year. This expenditure incorporates Capital Works funding only and excludes, PSP developer contributions and grant funded works.

Asset Group Activity 2014/15

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Buildings

Public Convenience

Upgrade 160,000.00 160,000.00 160,000.00

Renewal

New

Expansion

Table BF5: Planned Capital expenditure – Publ ic Conveniences

Allocated capital expenditure for the Public Conveniences is noted to be insufficient to renew and upgrade existing assets held within the register. As asset practices mature strategic modelling across this asset type shall provide guidance on future spend both in terms of capital improvement and also maintenance programming. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8(B.1) of this BAMP.

BF8 Disposal of Buildings

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Public Convenience Facilities within its portfolio that are excess to requirements.

0

20000

40000

60000

80000

100000

120000

140000

160000

2015 2016 2017 2018

2019

Capital Expenditure- Public Convenience Facilities 2015-2019

Capital Projects BUILDIN

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221

BG1 General- Recreational Buildings The Buildings Asset Management Plan (BAMP) comprises Sub-section 3 of the Councils Asset Management Plan. Part G of the BAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Recreational Building Facilities owned or operated by the City of Melton. Assets covered at Part G represent approximately 26% (Qty) and 31% (Replacement Value) of Councils Building Assets and includes the following;

Asset Subclass Description

Pavilion Recreation facility that supports numerous community activities and from which multiple services may be offered. Uses by wider community

Clubroom Recreation facility generally used by single or very few community groups. May house change and toilet facilities

Table BG1. Descr ipt ion of Recreation Bui ldings

BG2 Supporting Documents and Strategies Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the road network at City of Melton include but are not limited to;

• Asset Management Strategy • Precinct Structure Plans • Community Infrastructure Plan • Green Action Plan • Legislative Documents as listed in sub-section 3.2 of the BAMP

BG3 Capacity and Performance Melton City Council’s Recreational Building Facilities are generally provided to meet design standards where these are available. It is understood most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion.

BG4 Condition Assessment Figure BG1 illustrates that of the 77 Recreational Building Facility Assets held on the asset register, the majority are in good or better condition.

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F igure BG1. Distr ibution of asset condit ion – Recreation Bui ldings 1 July 2014

BG5 Asset Valuation & Sustainability The table below illustrates the current value of Recreational Building Facilities across the City of Melton as at July 1, 2014. Assets were last re-valued at 1 July 2014, however data is to be validated and entered into the asset register during the coming year.

Current Replacement Cost $40,618,530

Depreciated Replacement Cost/ Written Down Value $14,705,566

Annual Depreciation Expense $817,412

Table BG2 Current Asset Value – Recreation Bui ldings as at Ju ly 1 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Industrial Building Facilities Facility assets.

As advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion.

1%

21%

49%

20%

5% 4%

Overall Condition Index Recreational Building Facilities (Total Assets = 77)

Condition 0 Condition 1 Condition 2 Condition 3 Condition 4 Condition 5

223

Measure Formula Result as at 30 June 2014 Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

10%75 70-90%

Asset Renewal Funding Ratio

Average Capital Expenditure/ Average Desired Capital Expenditure

10% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

61% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable Amt

2.04% 0-3%

Table BG3 –Sustainabi l i ty and Renewal Rat ios

Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability into the future. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Recreational Buildings this would be estimated at approximately an additional amount of $15.5 million, or a significant total capital improvement investment of approximately $18 million over the next 5 years.

It should be noted however that routine maintenance activities may also contribute to improvement of assets. As these improvements are done under maintenance programs, benefit is not applied to the asset even where there has been resultant renewal, upgrade or expansion benefit. In addition expansion of the municipality will see development of new and improved recreation assets which may in turn result in decommissioning of older recreation facilities such as those at Mount Cottrell Reserve and Macpherson Park. As council undertakes to develop detailed service plans the viability, functionality and capacity of assets will become clear.

Predictive modelling across the asset class will assist Council to establish programs for upgrade, renewal and expansion of assets, funding for which may be better allocated as ongoing capital programs rather than maintenance programming. Such action would be expected to better inform asset sustainability data into the future. Predictive modelling across the asset group will occur as data sets are updated and improved. This is noted as an improvement action at section 8 (B.2) of the AMP

As advanced asset practices are adopted Council will also consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will also provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion.

75 Based on capital improvement spend of $2,623,845 between 2015 and 2018. Includes renewal, upgrade and expansion funding only

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BG6 Asset Maintenance & Expenditure

Maintenance expenditure trends are shown below.

Year Maintenance

Responsive Programmed Scheduled Total

2009/2010 $306,271 $149,721 $235,082 $691,074

2010/2011 $300,538 $416,669 $297,070 $1,014,277

2011/2012 $301,250 $269,872 $128,081 $699,203

2012/2013 $427,070 $116,547 $97,537 $641,154

2013/2014 $461,561 $133,142 $186,197 $780,900

Table BG5 – Maintenance Expenditure (5 years) - Recreation Faci l i t ies

Planned maintenance work is calculated at approximately 53% of Councils total maintenance expenditure. Maintenance expenditure levels are considered to be adequate to meet required service levels. Council is implementing recent level 2 inspection data, combined with historical data and local knowledge to drive initial high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will result.

Assuming that Council continues to deliver the same level of service to the community with respect to Recreational Buildings assets, future maintenance costs should be allocated to increase in line with the value of the asset stock.

Maintenance expenditure is calculated at a rate equivalent to 0.2% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Recreation Buildings 2014 – 2018.

225

F igure BG2 Current & Projected Maintenance Expenditure Bui ldings 2014-2018

associated with asset growth – Building Assets

In the short term it is anticipated that current maintenance expenditure will ensure that Councils open space assets continue to be maintained to a good level of service. As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders.

BG7 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

The projected capital expenditure profile for 2014 –2018 for Industrial Building Facilities is

shown below.

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

2014 2015

2016 2017

2018

$ M

aint

enan

ce E

xpen

ditu

re

2014 2015 2016 2017 2018 Building Maintenance Budget $4,248,485.87 $4,248,485.87 $4,588,364.74 $4,955,433.92 $5,351,868.63

Current and Projected Maintenance Expenditure City of Melton - All Buildings 2014-2018

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F igure BG3. Capital expenditure – Recreation Bui ldings 2015-2019

The table below provides a breakdown of planned capital expenditure for Recreation Buildings from 2014/2015 financial year to the 2018/2019 financial year as allocated through developer contributions and grant funding. This is shown as new, upgrade, renewal and expansion funding. Significant development is shown with respect to newly constructed assets which are required to support extensive growth of the community.

Asset Group Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Recreation Buildings

Upgrade 50,000 0.00 0.00 0.00 0.00

Renewal 0.00 3,600,000 0.00 0.00 0.00

New 2,558,430.00 15,341,756.00 0.00 3,245,718.00 1,966,503.00

Expansion 50,000.00 0.00 0.00 0.00 0.00

Table BG5: Planned Capital expenditure – Commercial & Civic Bui ldings

The table below further illustrates capital expenditure showing Council allocated funding. In line with Councils Asset Management Policy renewal, upgrade and expansion funding are prioritised.

Asset Group Activity 2014/15 $

2015/2016 $

2016/2017 $

2017/2018 $

2018/2019 $

Recreation Buildings

Upgrade 333,845 0.00 0.00 0.00

Renewal 530,000 380,000 380,000 380,000 380,000

New 530,000 380,000 380,000 380,000 380,000

Expansion 200,000 0.00 0.00 0.00 40,000

Table BG6: Planned Capital expenditure – Counci l funding al locat ions

Allocated capital expenditure for the Recreation Buildings is theoretically insufficient. As identified above however this sub class of buildings includes several newer assets which, at present do not

$- $2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

$18,000,000.00

$20,000,000.00

2015 2016 2017 2018 2019

Capital Expenditure & Development Recreation Buildings 2015-2019

Capital Projects (Council Funded)

Capital Development (Developer Contributed and Grant Funded)

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require capital improvement. As asset practices mature strategic modelling across this asset type shall provide guidance on future spend both in terms of capital improvement and also maintenance programming to provide optimal lifecycle management of this asset subclass. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8(B1) of this BAMP.

BG8 Disposal of Buildings Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has identified the following recreational facilities – Mt Cottrell motocross and motorsports buildings

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A Proud Community Growing Together

ASSET MANAGEMENT PLAN

Section 4: Open Space

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O1.0 Introduction

The Open Space Asset Management Plan (OSAMP) comprises sub-section 4 of the Asset Management Plan (AMP). This sub-section includes reference to Councils Open Space Assets grouped by Parks and Reserve Land, Environmental Reserves, Passive and Active Reserves, Playground Equipment, Park Furniture and Ancillary, and Park and Sport Ground Lighting

This plan does not include park paths (footpaths and shared paths) and footbridges as these are recognised in Section 1 of the AMP, Road Management Plan. The plan also does not, at this point in time, incorporate minor assets located in open space areas such as seating and furniture, bins, signs or public art. These assets will be considered in future iterations of this AMP and have been incorporated in Section 8(O.1) of this Plan.

Open Space Assets are currently recorded in IAMS (Integrated Asset Management System) and responsibility for financial and lifecycle data is held by the Asset management team.

Council has committed to, and is working toward bringing assets into the corporate asset management system MyData©. Approximately 60% of assets have been migrated to the My Data systems. This process continues to be refined and is referred to throughout this document and included as an improvement action at Section 8 (O.2) of this Plan

O1.1 Background

Melton City Council’s (MCC) Open Space Infrastructure represents a significant investment by the community and is a vital enabler in the achievement of Council’s Vision of A Proud Community Growing Together. “The City of Melton has a high proportion of open space for the population with over 2532 hectares being managed. Approximately 648 parks and reserves, including approximately 514 hectares of linear reserves are located throughout the municipality. In addition there are 1,266 hectares of environmental reserves.”76

Stewardship of Open Space Infrastructure is a core Council function. The OSAMP is written to demonstrate Council’s responsive management of assets, services provided utilising assets, compliance with regulatory requirements and to communicate its strategies to the community. This revision of the OSAMP is aligned with Councils current activities to achieve ‘Core Maturity’ under the National Asset Management Assessment Frameworks (NAMAF).

The fundamental purpose of this document is to deliver, Council’s vision for the management of infrastructure as outlined in its Asset Management Policy. Aligned purpose is included in all of Council’s key strategic documents; the Asset Management Policy, Asset Management Strategy as well as numerous related strategies and plans. These documents are referred to throughout this plan and should be read in conjunction with this document.

76 Draft Open Space Plan 2014-2024– City of Melton

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O1.2 Open Space Asset Types in the City of Melton At July 2014 MCC was responsible for open space infrastructure assets with an assessed replacement value of $35,057,384 excluding land values.

Asset type Qty Unit Replacement value

Passive Open Space 599 (no) $0.0077

Environmental Reserves

49 (no) 0.0078

Active Open Space Assets

272 (no) $19,112,977.00

Park Furniture and Ancillary 319 (no) $5,705,065.00

Play Spaces & Structures 471 (no) $6,015,269.00

Public Lighting 103 (no) $4,224,073.00

TOTAL $35,057,384.00

Table O1: Assets covered by this OSAMP by Quantity and Replacement Value as at 1Jul 2014

Figure O1: Asset distribution by Replacement Value and Quantity (excluding land) as at Jul 2014

O1.3 Management of Open Space Assets at the City of Melton Councils Open Space Asset portfolio lists 648 passive open space reserves comprising;

• Regional Reserves; • District Reserves; • Neighbourhood Reserves; • Local Reserves; • Linear Reserves; • Environmental Reserves; • Pocket Parks; • Drainage Reserves; • Building Surrounds; and • Streetscapes.

In addition, to date, there are 1,167 Open Space Assets including active playing surfaces and courts, park furniture and playgrounds, that are associated to those reserves.

77 Assets do not hold tangible asset value. Refer to Part A of this section 78 Assets do not hold tangible asset value. Refer to Part B of this section

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The majority of open space assets across the municipality are owned and maintained by Council, however in some instances, Crown Land is managed under direction of Committee of Management, such as the Melton Golf Course and in other cases land owned by Council may be leased to third parties, e.g.; Melton Country Club who in turn are required to maintain the asset and its open spaces.

Conversely, by way of agreement, Council also maintains open space assets that they do not own but which are owned by other entities such as Vic Roads, Department of Justice and the Department of Education and Early Childhood Development. It is proposed that such agreements benefit the community through provision of access to facilities that enhance active and passive recreational opportunities and which beautify the municipality. In most instances formalised agreements are in place either through present maintenance contracts or, as with Vic Roads the Minor Maintenance Agreement program, however some non specific agreements also exist. To best understand if Council contribution toward maintenance of assets owned by other entities is in the best interest of the community a review of access, and use is recommended. Such an activity is timely as Council intends to undertake a review of its current Parks Maintenance activities and contracts during the life of this plan. This activity is listed as an improvement action at Section 8 (O.3) of this Plan.

O1.4 Tangible and Financially Intangible Open Space Assets

Tangible assets refer in general to any asset that can be seen and touched. Open Space tangible assets include things that can be reproduced, such as playgrounds, and things that cannot be reproduced, such as the land upon which the playground sits. Tangible assets are comparatively easy to price and therefore they are often used to express the value to an organisation. Therefore Council owned and maintained assets are recorded as Tangible in the ledger and financial reports.

Where Council has in place service agreements as noted at sub-section O1.3 to maintain non - Council assets, this is deemed as one that is financially intangible expenditure. The expenditure to maintain these assets may be implemented by way of maintenance activities or through capital programs however there is no shift in net present value of the asset within Councils financial data base. The benefit of expenditure shall only be realised in terms of service availability or delivery to the community.

Council has established covenants at two environmental reserves at Mt Cottrell Recreation Reserve and Bush’s Paddock. These covenants are in place to ensure long term protection of portions of these reserves due to native vegetation losses elsewhere in the municipality due to Council and developer related projects. Council recognises the value of these reserves as offset locations and is developing a policy to support Council’s position. In addition to these key environmental reserves, a number of environmental reserves may have capacity to be used as offsets for native vegetation losses throughout the municipality and as such further investigation should be undertaken. This activity is listed as an improvement action at sub-section 8(O.4) of this plan.

O1.5 Supporting Documents and Strategies

Asset management plans are a key component of the Council planning process, linking with several core plans and documents. These documents should be read in conjunction with each other. Supporting Plans Documents and Strategies relevant to the open space network at the City of Melton include but are not limited to;

• Asset Management Strategy • Precinct Structure Plans • Community Infrastructure Plan • Melton City Council – Open Space Plan 2014-2024 (DRAFT) • Service Contracts

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• Legislative Documents as listed in sub-section 3.2 of the OSAMP

O2.0 Condition

With the exception of playground equipment, turfed sporting arenas and park furniture Council does not undertake formal condition assessment of Open Space Assets. The Council or service provider, will inspect the parks, reserves and associated assets as part of routine maintenance programming and respond to CARS as required. Council will review ways in which to document condition of active open space assets into the future and opportunity exists to incorporate this output into future service contracts, as either a set program or rolling inspection regime. Condition assessment may be undertaken by suitably trained Council Officers using Councils condition manual and IPWEA Practice Note 10.1 as guidance. Alternately this may be incorporated into future service contracts or specialist consultants may be engaged. Council should consider all options and determine a suitable condition assessment program and this activity is included as an improvement action at section 8 of the OSAMP (O.11). Such data will be beneficial to document not only condition, capacity and functionality but also in support of maintenance planning and more accurate allocation of associated funding as the municipality continues to grow.

Proposed condition rating for the active open space asset sub class is shown below. These condition ratings and examples should be documented within the Open Space Condition manual. This document is presently being developed and should be completed in accordance with improvement actions at section 8 of the OSAMP (O.11)

Condition Rating

Descriptor Condition

0 New Asset A Brand New Asset

1 Excellent Condition Inspection in accordance with Council and Legislative Requirement and Only Cyclic Maintenance Required

2 Very Good Minor Maintenance Required in Addition to Cyclic Maintenance

3 Good Moderate Maintenance Required in Addition to Cyclic Maintenance

4 Average Significant Maintenance Required. Capital Renewal or upgrade may be required within the next 5 years

5 Poor Significant renewal/upgrade required within the following 2 years

6 Very Poor End of Life provides no service potential

Table O2 – Condition Scores for Rating Active and Passive Recreation Reserves

O3.0 Levels of Service

O3.1 Customer research and expectations

Levels of Service (LoS) define assets performance targets (reliability, quantity, quality, responsiveness, safety, capacity, environmental impacts, comfort, cost/affordability and legislative compliance). With regards to Open Space Asset provision and maintenance the following data exists.

O3.1.1 Community Feedback – Strategies and Surveys

MCC participates in regular survey and benchmarking activities in order to understand how we, as a Council perform in comparison to our peer group. In the 2013 Community Satisfaction Survey, conducted by the DPCD, Melton City recorded an overall performance index score of 5979

79Community Satisfaction Survey – Melton City Council Annual Report 2013/2014 (Source : DPCD)_

. More

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specifically the following surveys, plans and strategies, which impact on provision and maintenance of open space assets, have been undertaken or developed;

• Community Infrastructure Plan 2011-203180

• Active Participation Survey

81

• Melton Tennis Strategy 2012

82

• Melton Hockey Club Relocation Feasibility Study 2012

83

• Regional Athletics Centre Feasibility Study 2011

84

• Recreation Strategy, now incorporated into the Open Space Plan,

• Greenhouse Action Plan 85

These documents and initiatives seek and invite community feedback and comment and are referred to when planning for new capital developments and should be read in conjunction with this sub-section.

Of particular note in recent years has been the undertaking of extensive community consultation in development of the draft Open Space Plan. To date, over 800 residents have contributed to the development of this plan. Residents have also been particularly active in community consultation activities for redevelopment of high profile sites such as McKenzie Street.

Melton City Council refers to information obtained from such consultation and as contained in these documents to undertake capital planning and development activity. Data included in these documents may be entered into the asset management system (MyData™) updating Functionality Assessment and Risk information in order to marry information with assets that either exist or are to be created. Such activity will greater inform and enhance strategic modelling output and has been included as an improvement action in Section 8 (O.5) of this Plan.

In addition the Household Community Satisfaction Survey is being conducted by Council in December 2014 and information from this survey will assist in the review of levels of service.

O3.1.2 Work Orders and Customer Requests

Council tracks work orders issued using Council’s Integrated Asset Management System (IAMS). Work orders are issued in response to planned and responsive maintenance tasks as well as those generated from proactive inspections and in response to Customer Actions Requests (CAR). Figure 02 illustrates trends with regards to CARs for active recreation assets from 2012 – 2014.

80 Community Infrastructure Plan 2013-3031 City of Melton – ASR Research 2011 81 Active Participation Survey 2013 – City of Melton - Ross Planning 82 Melton Tennis Strategy 2012 - Inside Edge Sport and Leisure 83 Melton Hockey Club Relocation Feasibility Study 2012 - Inside Edge Sports and Leisure 84 Regional Athletics Centre Feasibility Study 2011– Ross Planning

85 Greenhouse Action Plan – City of Melton 2013

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Figure O2 Work Orders Resulting from Customer Action Requests and Routine Inspections July 2012-Jul 2014

O3.2 Legislative Requirements Melton City Council complies with the following legislative and regulatory requirements. It should be noted that these, in addition to design, and technical specifications and standards form the minimum levels of service for Councils Open Space Infrastructure.

2012 2013 2014 BBQ Maintenance 48 14 55 Fallen Branch 289 345 529 Fencing Maintenance 263 336 240 Grounds Maintenance 1075 1153 922 Tree Inspection 266 335 437 Lighting Maintenance 19 41 52 Replace Street Trees 232 220 226 Bin Repair and Replacement 23 20 16 Syringe Clean Up 28 39 35 Play Equipment Maintenance 74 55 69 Irrigation /Plumbing Maintenance 97 105 119 Tree Prunning 654 571 765 Parks Furniture & Maintenance 32 41 33 Bollard Maintenance 0 21 91 Park Signage Repair or Replacement 0 6 34 Sportsground Surface 32 36 12 Stump Removal 264 248 251

0

200

400

600

800

1000

1200

1400 CA

RS IS

SUED

Customer Action Requests Actioned 2012-2014

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Legislation Requirement

Local Government Act 1989 Sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by asset management plans for sustainable service delivery.

In addition, Section 6 outlines the purpose of a council which includes the provision of services and facilities for the community and ensuring these are managed efficiently and effectively.

Section 7 outlines the objectives of a council including the involvement of community and other public bodies to ensure facilities and services are adequately resourced. That planning for the future and representing the interests of the community takes place. That policies and performance targets are set.

Environmental Protection Act 1970

This legislation is aimed at protecting the environment and covers requirements related to stormwater quality from building and construction sites, former landfill and run-off from open space.

Planning and Environment Act 1987

This Act specifies the framework for planning the use, development and protection of land in Victoria in the present and long term.

Crown Land Reserves Act 1978

This Act provides for the reservation of Crown Lands for certain purposes and for the management of such lands.

Catchment and Land Protection Act 1994

This Act specifies the framework for the integrated management and protection of catchments so as to maintain and enhance long-term land productivity while also conserving the environment and to ensure that the quality of the State's land and water resources and their associated plant and animal life are maintained and enhanced. In addition the Act encourages community participation in the management of land and water resources and establishes a system of controls on noxious weeds and pest animals.

National Asset Management Framework Legislation 2010

Focuses on long term financial sustainability and provides a mandate to have long term strategy, financial statements and annual reporting mechanisms. AM plans are likely to be audited.

Occupational Health and Safety Act 2004

Aims to secure the health, safety and welfare of people at work. It lays down general requirements which must be met at places of work in Victoria. The provisions of the Act cover every place of work in Victoria. The Act covers self employed people as well as employees, employers, students, contractors and other visitors.

Occupational Health and Safety Regulations 2007

Outlines minimum actions to be taken to comply with OH&S Act. It explains plant such as Lifts, boilers maintenance, inspection and testing and WorkCover registration requirements.

Disability Discrimination Act 1992

Sets out the responsibilities of Council and staff in dealing with access and use of public infrastructure.

Melton City Council Local Law Branches.

Council’s local law exist to protect the well-being of the community, the amenity of local neighbourhoods and the environment. This guides the community on appropriate behaviour and actions, and they outline legally enforceable standards for issues such as:

Protection of our built and natural environment; Behaviour in public spaces; Neighbourhood nuisances; Safety Concerns; and Health matters.

National Parks And Wildlife Act 1974

The objects of this Act are: (a) the conservation of nature, including, but not limited to, the conservation of: (i) habitat, ecosystems and ecosystem processes, and (ii) biological diversity at the community, species and genetic levels, and (iii) landforms of significance, including geological features and processes, and (iv) landscapes and natural features of significance including wilderness and wild rivers, (b) the conservation of objects, places or features (including biological diversity) of cultural value within the landscape.

National Parks and Wildlife Amendment (Protected Native Plants)Order 2009

The object of this Order is to substitute Schedule 13 to the National Parks and Wildlife Act1974 (the Act) (the Schedule that classifies certain plants as protected native plants).

Environmentally Hazardous Chemicals Act 1985 No 14 and Regulations

An Act which provides a mechanism for regulating chemicals of environmental concern throughout their entire life cycle.

Community Land Development Act 1989 No 201

The object of this Act is to facilitate the subdivision of land into parcels for separate development or disposition, including Community Land.

Electrical Safety Act 1988 Section 84 of this Act specifies who is responsible for the maintenance of electric lines. In regard to public lands, Section 84 (4) specifies that “a person responsible for the management of public land in an area declared under section 81 is responsible for the keeping of the whole or any part of a tree situated on the land clear of an electric line other than a private electric line”.

The Electricity Safety (Electric Line Clearance) Regulations (2010)

Prescribes the Code of Practice for Electric Line Clearance and set down: • management procedures for standards and practices to be adopted and observed in tree cutting or

removal in the vicinity of electric lines and the keeping of the whole or any part of a tree clear of electric lines; and

• management procedures to minimise danger of electric lines causing fire or electrocution; and • other matters for or with respect to the maintenance of electric lines; and • provide for management plans relating to compliance with the Code; and • provide for other matters authorised under the Act relating to electric line clearance.

Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)

This act provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places.

CFA Act (vic) 1958 The objectives of this act are too; Contribute to a whole sector approach to emergency management; and Promote a culture within the emergency management sector of community focus, interoperability and public value.

Table O3: Legislative requirements applicable to Melton City Council (Open Spaces)

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Collectively these documents direct Council to provide safe, relevant and responsive infrastructure and assets which consider the needs, current and future, of our community.

O3.3 Open Space Hierarchies

The Open Space asset hierarchy comprises of assets which provide a measure of the Open Space service provision to the community. The Open Space asset hierarchy currently utilized by Council’s Operations Unit for management of lawn and grassed areas is documented in the table below.

In developing the Open Space hierarchy Council has utilised the following guiding principles:

• Profile of Open Space from a public perspective.

• Communal importance.

• Level of usage.

• Frequency of usage.

• Service criticality in terms of demand and risk.

• Responsiveness and equity.

Park Location Hierarchy

Type Description

1 High Profile Site A site that is utilised regularly by the community and generally has a staff presence during normal business hours. The level of service at these sites includes a daily visit to facilitate removal of litter and graffiti. Mowing performed on a weekly basis. Currently comprises 9 sites.

2 Standard A Site A significant reserve or arterial road reservation that receives higher than normal visitation/use. These sites are cut on a weekly basis and removal of litter and graffiti is also performed weekly.

3 Standard B Site A standard site that is serviced within the general scope of the parks contract. This includes mowing on a fortnightly basis and litter and graffiti removal on the same frequency. This is the default status for most parks and open space in parks network.

Table O4. Park and Reserve Location Hierarchy

This OSAMP therefore has different technical and maintenance interventions levels of service for grassed areas and lawns within each Open Space Reserve. Maintenance of other assets in this plan is documented in the Open Space Parks Maintenance Contracts. Council should consider documenting hierarchies for all open space assets and this is noted as an improvement action (O.6) to this plan.

With regards to the levels of service for provision of Open Spaces within the municipality, these have been documented in Council’s Draft Open Space Plan.

O3.4 Current Levels of Service

Melton City Council has defined service levels in three terms:

O3.4.1 Strategic & Technical Levels of Service

Strategic and Technical levels of service communicate the philosophies of Council in relation to the management of the open space assets. Melton City Council’s strategic levels of service that have been adopted as a result of this OSAMP are documented below. This list is not exhaustive and it is timely that Council should review the current levels of service (strategic) in line with activities to undertake formal service planning across the organisation and in review of the Parks Maintenance Contracts. This activity is noted as an improvement action at section 8(O.7) of the AMP.

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Strategic and Technical Levels of Service

GENERAL

Key Performance Measure

Level of Service Performance Measure Process Performance Target Current Performance

Quality Well maintained and suitable passive and active open space infrastructure assets

No. of customer requests relating to open space in regard to mowing, weeds and trees.

Grounds Maintenance

< 1000 per annum

922

Quality Passive open space Assets meet community needs

Community Satisfaction Survey Survey

Over 60% of the community are satisfied that community open space meets requirements

TBA*

Safety Provide Open Space Assets that present Low Risk to the community

No of Incidents resulting in Claims of loss against Council

<10 injuries per annum 5

Responsiveness Response time to customer requests

Time taken to close customer requests

> 80% of all requests adequately responded to within target.

TBA*

ACTIVE OPEN SPACES

Quality Well maintained and suitable active open space infrastructure assets

Average ground condition is satisfactory as advised by independent annual assessment at a rate of 80% or better

< 85% 92%

PLAYGROUNDS

Function To provide a diverse range of safe playgrounds and equipment to suit the needs of the user.

Condition Audits 100% of playgrounds and equipment are inspected and considered to meet functionality quarterly

100% inspected Quarterly for safety.

Accessibility To provide and maintain current DDA accessible and integrated playgrounds.

DDA Compliant 70% Not Currently measured- To be included as improvement action at Section 8 of AMP

Safety To provide a safe hazard free Play Spaces.

Inspections as per AS 1924, AS 4685, ASNZ 4422:1996

Recorded monthly M1 defects to be rectified within 2 days of identification.

100%

PARK FURNITURE & ANCILLARY

Function To provide a diverse range of park ancillary assets to suit the needs of the user that are clean and free from graffiti and other vandalism

Condition Audits 80% of park ancillary assets inspected are considered to meet current functionality requirements

Not Currently measured- To be included as improvement action at Section 8 of AMP

Condition To ensure all ancillary assets are operational.

Condition assessment every 3 years. ancillary assets <= 3 out of possible score of 6.

Not Currently measured- To be included as improvement action at Section 8 of AMP

Table O5. Strategic and Technical Levels of Service

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O3.4.2 Maintenance Levels of Service

Council regards maintenance levels as activities (i.e. works/tasks to address maintenance faults which develop during the assets lifecycle) which are delivered on a day to day basis to ensure that the community levels of service are met.

Council has defined its technical LoS in the following documents:

• Melton Shire Council Parks and open space maintenance contract, CONTRACT 09/009A – Maintenance for Open Spaces –ISS Facility Services. Melton Shire Council – Contract 09/00B High Profile Maintenance Contract – Programmed Maintenance Services.

• Melton Shire Council – Contract 09/009C Provision of parks, Open Space and Tree Maintenance – Citywide Service Solutions These documents identify:

• The tasks or work expected to be delivered i.e. mowing, weeding, graffiti removal, component replacement;

• The schedule of inspections to be undertaken of specified matters at specified intervals;

• The priority with regards to rectification assigned to each intervention level;

• The type of action that will be carried out against each intervention level; and

• Provision as far as practicable for works that result from events such as emergencies and natural disasters.

O3.5 Desired levels of service

At present, indications of desired levels of service are obtained from various sources including feedback from the community into the Council Planning process, resident’s feedback to Councillors and customer service requests. Council is also due to undertake formalised service planning activities which will further analyse and quantify the desired levels of service. Asset provision, capital expenditure and maintenance requirements shall all be addressed as part of this process. It is expected that future iterations of this plan shall detail the outcomes of these activities.

O4.0 Future Demand

O4.1 Demand Drivers

Council’s fundamental role is to provide services to the community and its open space assets are a means to enable this. Consequently, future demand on these assets is tied to the demand for Council’s services and this is a more complex consideration than population growth alone. Council has in place a 20 year Community Infrastructure Plan, this combined with service planning and asset modelling is utilised in conjunction with strategies to inform capital development, renewal, upgrade and expansion.

Asset management plans are critically driven by the needs of the services to be delivered and therefore meaningful Open Space Asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining Council’s Open Space Infrastructure assets without adequate regard for service needs may result in a well-maintained portfolio of assets, but it may also result in an asset portfolio which does not meet the needs the community. The Open Space Strategy will provide direction for future development of active and passive recreation reserves within the municipality and should be read in conjunction with this plan. This combined with service planning activities to be undertaken by Council and infrastructure development guideline will drive asset management practices in the long term. Review of these documents and service plans should be

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undertaken and relevant inclusions added to future iterations of this plan. Service planning is noted as an improvement action included in Section 8 (O.8) of this plan.

O4.2 Demand Forecast

Councils’ mission is to “support the growth, wellbeing and aspirations of our community through leadership, excellence and inclusion”.86

Through stakeholder research and consultation Council has established four strategic themes. These provide focus for future investment, enable connection with the community, support transparent and accountable management and provide a strategically planned place to work, live and play. The four themes are;

This mission is to be considered in conjunction with Councils strategic themes and their supporting objectives when developing ‘bottom up’ asset management practices.

• Managing our growth; • A well governed and leading organisation; • Diverse, confident and inclusive communities; and • Community health and wellbeing.

In addition to these themes the results of available surveys and community consultative processes and organisational strategies are reviewed and included in funding and other strategies. This OSAMP aims to capture and document processes which assist in meeting all of these considerations now and into the future. The AMP outlines the Precinct Structure Plans (PSP) in place and highlights future growth throughout the City of Melton. The PSP documents detail services or projects required to be implemented to support this growth. These combined with management of the existing asset base and growth factors are to be considered as part of Councils strategic asset practices.

Perhaps the biggest influence on future open space assets within the City of Melton is the expected rate of development and population increase. Recent Census Population figures for the City illustrate an annual population growth rate of approximately 4.45%, with an addition of approximately 40,000 dwellings in the short to medium term (2011 – 2031)87

In line with our service centric approach, future services will be driven by demand and utilisation. The current demographic profiles relevant to this plan are represented at Figures O3 and O4 below.

. It should be noted that these sections of the AMP reflect growth during the current life of approved Precinct Structure Plans. They do not reflect eventual build out figures which anticipate a growth in population to 400,000 residents by 2050. As new growth areas are approved for development data will become available to inform future iterations of this plan.

86 Melton City Council – Council Plan 2013-2017 87 http://forecast2.id.com.au/Default.aspx?id=116&pg=5520

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F igure O3: Forecast age structure at 2013, 2021 and 2031

F igure O4: Forecast family structure 2013, 2021 and 2031

0

20000

40000

60000

80000

100000

120000

140000

160000

0-4 Yrs 5-19Yrs 20-64 Yrs 65-84 Yrs 85+

2013

2021

2031

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Couples without Children

Couples with Children

One Parent Families

2013

2021

2031

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Demand factor trends and impacts on service delivery are summarised in Table O688

Demand factor

.

Present Position Projection Impact on services Population 124096 estimated population 2013 241,613 by 2031 (based on

4.45% growth from 2011 Census recorded population)

Population growth will be mostly supported by green-field development meaning a greater number of gifted assets to Council. Many open space assets will be built and developed as per PSPs. Increased service ratios will need to be considered as part of Councils ongoing service planning ratios

Demographics Mixed Population with majority between 20-64 years

No significant shift As more families move to the area, demand for community services and subsequently the open space enablers required for delivery of these services will increase. Council will be required to provide and maintain adequate number of open space assets to support delivery of council and community based activities.

Satellite developments

6 PSPs to be built which will see land between Caroline Springs and Melton developed as well as the establishment of a large hub in the Toolern precinct. Existing areas of Diggers Rest and Melton North will be expanded to the municipality borders.

Development between Caroline Springs and Melton and on the outskirts of the township.

As above.

Change in demographics and increased quality of life

Long standing families living in the area

More people moving into the district from other municipalities and overseas migration. Increase in families and aging people

Demographic changes will result in a higher proportion of families and aging people residing within the community. Service planning will need to consider programs required to meet the requirements of these groups and work with planning and development departments to ensure adequate Open Space assets are available to meet service delivery requirements. Functionality, capacity and service locations must also be considered when planning renewal, upgrade or replacement of existing assets.

Climate Change Unrestricted availability of water Longer extended periods of extreme heat resulting in lower rainfalls and possible water restrictions

Community demand for more shade and green space. Vegetation under extreme heat stress

Table O5 - Demand Factors, Projections and Impact on Services

When considering the planning and programming of capital and maintenance works, the demand drivers include:

• Rapid asset growth; • Increased age of these assets; • Increased community expectation of accountability of asset maintenance; • Increased community expectation of, for example, quality of asset functionality; • Remaining useful life, function and capacity of existing infrastructure; • Early failure of some donated assets; • Increased costs as a result of supply / purchase of materials and labour; • Climate Change and extreme weather events; and • Availability of water.

O4.3 Changes in Technology

Council is continuously monitoring new asset treatments or changes to practices within the industry as they become available, to implement improved lives of its assets. Changes in technology that may impact on the delivery of services covered by this OSAMP are shown below. Council is presently

88 Figures reflective of current growth determined by approved PSP development. Figures do not represent eventual build out of 400,000 in 2050

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considering type and benefit of available technology and it is anticipated that these shall be included in and how it may be applied to new maintenance contracts. This activity is listed as an improvement action at section 8 (O.9) of this plan.

Technology Change Effect on Service Delivery

GPS Tracking Technology Consideration will be given to this technology being used in specific vehicle types, e.g.; watering trucks to maximise route planning and efficiency

Asset Management Integration The implementation of Assetic Maintenance Modules and Modelling Software provides a further opportunity to assets asset data collection and storage across current service delivery and alignment

Mobile Device Usage The use of this technology is already in place for a range of purposes however will continue to be assessed to assist in service delivery efficiency.

Table O7 – Changes in technology affecting asset

O4.4 Demand Management Plan

Demand for new services will be managed through a combination of enhanced management of existing assets, upgrading of existing assets and providing new assets to meet demand for services. Demand management practices will include non-asset solutions, insuring against risks and managing failures. Councils 20 year Community Infrastructure Plan considers the impact of PSP development, and population growth in driving infrastructure management decisions.

The demands on Council Open Space infrastructure will increase proportionally as identified above with the predicted population growth. However, this will not be the only driver and opportunities for enhanced demand management planning in relation to the Open Space portfolio will be better understood when Council completes its service planning activities. The review of these plans is listed as a priority action in Section 8 (O.10) of the AMP.

O4.5 Asset Programs to Meet Demand

As noted the demand on Council open space infrastructure is going to increase proportionally with the predicted population growth and demographic changes. Council is still developing formal demand management plans as data on Councils asset stock and demographics requirements are further refined. This activity is listed as an improvement action at Section 8(O.2, O.5) of this plan.

O4.5.1 New Open Space Assets from Precinct Structure Plans & Subdivisional Growth

Open Space infrastructure required as part of new development is often built by the developers and/or their contractors in accordance with Council’s design standards and industry guidelines. Most often, these are funded and constructed by developers in accordance with Planning Permit requirements. They may also be constructed by Council through Section 173 agreements or Works in Kind arrangements. Proposed development projects are listed in the Community Infrastructure Plan 2011-2031 and have been recognised in Council’s Capital Works Planning.

Demand drivers such as sub-divisional growth and development of PSPs accounts for the majority of new asset growth. Council has an integral role in the planning of these assets to deliver community services, working in collaboration with State & Federal Government agencies and other authorities, to plan and implement these community acquisitions.

In the instance of developer contributed assets, works are completed by the developer and handed over to Council for ownership and maintenance for the remainder of their useful life. A defects liability period is entered into and varies from 2 – 7 years, (depending on the nature of the asset). Council has documented processes with regard to the Open Space asset handover which should be reviewed in conjunction with this plan as necessary.

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As a result of PSPs currently under development or commencing within the City it is anticipated that the open space infrastructure portfolio will grow significantly between 2014 and 2019. The asset portfolio network associated with PSP development is described below.

GROWTH FROM PRECINCT STRUCTURE PLANNING 2014-2031

Current Asset Replacement Value($)

Average Annual Growth ($)

Estimated Value of Assets at added to network between 2014- 2019

Estimated Asset Network Value 2019

Percentage increase. (Approx)

Open Space Assets

35,057,384 11.1 55.2m 92 m 60.1%

Table O8 – Growth from PSP 2014- 2019 City of Melton

O4.5.2 Capital Program

Melton City Council will experience substantial growth within the next 18 years (Life of Community Infrastructure Plan). In addition to development associated with Sub-divisional growth Council will need to invest in infrastructure renewal, upgrade and expansion to ensure continued delivery of its programs and in responding to community requirements. Asset planning includes Capital Infrastructure programs responsive to community growth, desired Level of Service and budgetary constraint. This activity is guided by the objectives of the Community Infrastructure Plan and other strategies listed at O3.1.1 of this sub-section.

The annual Capital Works Program is made public each year and is published with Council’s Annual Report. The annual capital works program for 2014-2015 is attached in Appendix 2 of the AMP. These assets are funded through a combination of Council’s General Revenue, PSP Contribution and Grants funding. In addition Long Term Planning is forecast by Councils Planning and Development Team and is included in Council’s Strategic Resource Plan and 10 year capital works program.

O4.5.3 Estimated Valuations and Maintenance

Council presently owns and is responsible for maintenance of open space assets to the value of $35m. Based on planning forecasts this will increase to an estimated $92 million by 2018/2019 an estimated increase in open space assets of 61%.

In addition Council will be gifted approximately $44 million of land under the Precinct Structure Plan. Land value is not shown in Figure 5 which illustrates increased open space asset growth between 2015 and 2019 resulting from PSP development, Capital Investment and Subdivisional Growth.

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Figure O5 – New Assets from Growth 2015-2019 including Accumulated Asset Growth, PSP Development and

Capital Projects (excludes land)

O4.5.4 Current and Planned Maintenance & Expenditure

Routine maintenance is the regular ongoing work that is necessary to maintain and where required keep assets operating, including instances where portions of the asset fail and need immediate repair or replenishment to make the asset operational again.

Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management / supervisory directions. Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure / breakdown experience; prioritising; scheduling; auctioning the work; and reporting what was done to develop a maintenance history and improve maintenance and service delivery / performance.

Cyclic maintenance is replacement of higher value components / subcomponents of assets that are undertaken on a regular cycle including for example, mowing and watering an oval. This work generally falls below the capital / maintenance threshold. Maintenance expenditure trends are shown below. This table accounts for all open space maintenance expenditure. It is anticipated that breakdown of this data across the open space asset subclasses may be included in future iterations of this plan. This activity is listed as an improvement action at Section 8 (O13) of the OSAMP

Year Maintenance

Reactive Planned Cyclic

2012/2013 $289,000 $ 5,036,676 1,424,548

2013/2014 $200,000 $ 5,474,124 $2,089,036

2014/2015 $100,000 $5,777,634 $2,657,952

Table O9 – Reactive, Planned and Cyclic Maintenance of Open Space Assets City of Melton.

$-

$10,000,000.00

$20,000,000.00

$30,000,000.00

$40,000,000.00

$50,000,000.00

$60,000,000.00

$70,000,000.00

$80,000,000.00

$90,000,000.00

$100,000,000.00

2015 2016 2017 2018 2019

Council Funded Assets (New Capital)

Gifted Assets - Developer and Grant Funded (New)

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Planned maintenance work for open space assets is calculated at approximately 40% of Councils total maintenance expenditure. Maintenance expenditure levels are considered to be adequate to meet required service levels. Implementation of condition data as recommended by this part combined with historical data and local knowledge will assist high level maintenance programs. As data is further developed more accurate and detailed maintenance planning will result. This activity is shown as an improvement action at section 8 (O.6)

Assuming that Council continues to deliver the same level of service to the community with respect to Active and Passive Reserves future maintenance costs should be allocated to increase in line with the value of the asset stock as shown at sub-section 4.5.3 to this plan, figure O5.

Maintenance expenditure is calculated at a rate equivalent to 12% of the asset stock value. The table below illustrates projected expenditure for maintenance of all of Councils Open Space Assets 2014 – 2018. Specific data for each asset class has not been determined and is listed as an improvement action at section 8 (O.13) of this plan. Detailed data for each asset type should be included in future iterations of this plan.

Figure OC2 Maintenance Expenditure - Active and Passive Recreation Reserves 2015-2019

In the short term it is anticipated that current maintenance expenditure will ensure that Councils open space assets continue to be maintained to a very high level of service As a growth community Council will need to be vigilant in ensuring maintenance spend aligns with increased asset stock and that condition data is updated in order to provide accurate reporting to various stakeholders. It should be acknowledged that where substantial maintenance is carried out on Active and Passive Reserves there may be resultant improvement in the overall condition of the asset. Although not formally recognised at time of works it is anticipated that improvements will be recognised during three yearly condition inspection audits and data updated accordingly at that time.

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

2014 2015

2016 2017

2018

$ Al

loca

tion

2014 2015 2016 2017 2018 Open Space Maintenance Budget $7,663,160.00 $8,435,586.00 $9,218,103.00 $9,667,959.00 $10,838,003.00

Open Space Maintenance Budget Current & Predicted Expenditure 2014-2019

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O5.0 Lifecycle Management Plan O5.1 Background Data

The process of lifecycle management is detailed in the main body of this plan. The OSAMP and its subsequent parts provide specific data with regards to the open space asset class.

O5.1.1 Physical parameters

The assets covered by this asset management plan include;

• Passive Recreation Space; • Environmental Reserves; • Active Recreation Spaces; • Play Spaces and Playgrounds; • Park Furniture and Ancillary; and • Park and Sports Ground Lighting

O5.2 Renewal Plan

Council intends to use Assetic’s MyPredictor™ (prediction modelling software) to develop renewal plans for all Open Space assets into the future. At present assets requiring renewal are identified through routine inspections, condition audits, review of CAR data and through local understanding. It is anticipated that as additional condition data is collected that this data will be incorporated into the asset database and combined with the decision criteria for asset renewal as detailed below.

Council envisages that in future iterations of this plan, that it will use the following documented approach, where assets can be strategically modelled for selection in future works programs and these work programs may be ranked by priority and available funds. Adopting a formalised approach to renewal of active and passive space assets is included as an improvement action at section 8(O.6) of the OSAMP

Control Hierarchy Component Condition

Treatment

Yes High Profile Site (Class 1) > = 4.0 Asset Renewal

Yes Standard A Site (Class 2) > = 4.0 Asset Renewal

Yes Standard B Site (Class 3) > = 5.0 Asset Renewal

Table O10 – Proposed renewal triggers –Open Space Assets

Council may also consider the following criteria to model renewal plans with regards to open space assets.

Criteria Weighting

Perceived Risk Factor 40%

Asset Capacity & Function 40%

Historical Customer Requests 20%

Total 100%

Table O11 –Renewal Weighting Criteria –Open Space Assets

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O5.3 Upgrade/Expansion/Creation New works are those works that result in the creation of an asset which did not previously exist. Upgrade works improve an existing asset beyond its service delivery capability. Expansion refers to development or improvement of existing infrastructure that will support another community group (not currently utilising the asset.) Currently, assets which require upgrade or expansion works are identified from various sources including Councils Community Infrastructure plan, precinct structure plans, strategies and through service delivery staff knowledge with regards to capacity and functionality of existing assets. It is proposed to formally document a framework for selection and prioritisation of works for upgrade, new and expansion and this has been included in Section 8 (O.6) as an improvement action.

O5.4 Creation / Upgrade Renewal Standards Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those documented above. At present much of the data is kept at a very high level. Improvement of the data sets will enable more responsive planning outcomes and this activity is listed as an improvement action at section 8(10) of this plan.

O.5.5 Open Space Design, Construction Standards & Specifications Council takes the following factors into consideration, when determining design and construction aspects for open spaces and for assets which require renewal or upgrade works:

• Functional classification;

• Hierarchy;

• Intended service delivery and options to alter service delivery;

• Community Use & Expectation;

• Community Plans and Strategies;

Council uses Australian standards and industry guidelines for construction of and for the expansion, upgrading, renewal and maintenance of existing infrastructure.

O6.0 Financial Summary This sub-section summarises the financial requirements and funding strategies resulting from all the information presented in the previous sections of this plan and from parts A–F. The financial projections will be improved as further information becomes available on desired levels of service, current and projected future asset performance.

6.1 Funding Strategy Expenditure for capitalised renewal works is guided by Council’s Asset Capitalisation Policy. The capitalisation threshold for renewal works is prescribed by S4.5 Rule 2 and detailed in “table 4.7 – Asset Category/Asset Component tables” The threshold for Open Space Asset renewal is currently set at $5000. Components with a value less than $5000 are considered maintenance.

Maintenance is programmed as per contract agreements. Programmed and responsive maintenance is outlined in Parts A-F of this plan. Maintenance valuations forecast below are based on current spend which equates to approximately 20% of Open Space Asset value. The figure below illustrates capital expenditure (renewal, upgrade and expansion) as well as predicted maintenance funding required, consistent with the rate of capital growth (12%) following the life of the existing maintenance agreement assuming current Levels of Service are to be maintained. Current maintenance expenditure in 2013/2014 for open space assets was in the vicinity of $8.5 million.

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Figure O6 – Council operating expenditure Capital and Maintenance Predictions 2014-2019

6.2 Valuation forecasts The overall value of the Open Space asset portfolio is forecast to increase as new assets are added from construction and acquisition activity by Melton City Council and from assets gifted by land developers and others to Melton City Council. Figure O7 Illustrates that Councils Open Space Asset portfolio will increase by approximately 60.1% to $90.3 million from a forecast base of $35 million in 2014. Based on current depreciation rate of 5% annually asset depreciation will increase proportionally.

Figure O7: - Value of Predicted Open Space Assets, Written Down Value and Annual Depreciation 2014-2019

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

Capital expenditure $5,240,800.00 $4,896,200.00 $5,796,200.00 $5,815,800.00 $5,815,800.00 Maintenance Expenditure $8,535,586.00 $8,535,586.00 $9,422,103.84 $9,817,863.84 $11,029,907.64 Year 2015 2016 2017 2018 2019

Capital & Maintenance Expenditure City of Melton

2014 2015 2016 2017 2018 2019

Annual Depreciation $1,778,911.8 $2,610,295. $3,221,699. $3,840,876. $4,028,316. $4,515,834.

Replacement Value $35,051,384 $52,205,911. $64,433,984. $76,817,532. $80,566,332. $90,316,697.

Written Down Value $18,686,817. $33,115,601 $42,121,975 $50,664,646 $50,385,130 $55,619,660

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

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Written Down Value will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets. Forecast asset amount is shown in the above table.

6.3 Key assumptions made in financial forecasts This sub-section details the key assumptions made in presenting the information contained in the asset management plan and in preparing forecasts of required operating and capital expenditure and asset value, depreciation expense and written down amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this asset management plan are:

• The current levels of service will remain constant over the life of this OSAMP.

• The treatment and maintenance costs are based on Council’s current service contracts

schedule of rates and may not directly compare to the actual costs of Councils internal

service provision;

• All predicted financial figures are based on 2013/14 rates and are not adjusted by the

inflation rate for the particular year of works;

• The projected population growth will be in line with that documented in Section 4;

• The projected asset stock will be in line with that documented in Section 4.

6.4 Forecast Reliability and Confidence It is envisaged that the accuracy of these future financial forecasts will be improved in future revisions of this asset management plan by the following actions:

• Further refinement and improvement of the prediction modelling life-cycle paths and decisions ;

• Refinement of the levels of service being delivered via consultation with the Community; and • Obtaining condition data

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OA1 General- Parklands & Reserves The Open Space Asset Management Plan (OSAMP) comprises Sub-section 4 of the Councils Asset Management Plan. Part A of the OSAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Parklands and Reserves owned or maintained by the City of Melton. Assets covered at Part A represent approximately 2532 hectares of land. This document does not include Environmental Reserves which are included in Part B of this OSAMP.

Asset Subclass Description

Regional Reserves Large parks and significant trails significant environmental, tourism, recreational and linkage values

District Reserves Outdoor sports grounds, fields, courts and their associated infrastructure (e.g. Pavilions, car parks). Large destination open spaces that often incorporate varied landscape settings providing for a range of activities, play, social gatherings and informal recreation and that can accommodate users for several hours

Neighbourhood Reserves Larger parks with the capacity to accommodate facilities supporting play for children of multiple ages, paths and infrastructure including seating, shade and picnic facilities that are regularly visited by residents in the surrounding area.

Local Reserves Smaller areas of open space with limited facilities, but usually including paths, seats, trees, open areas and with basic playgrounds in some cases. Ideally should be 1 ha but have a higher level of development for smaller reserves.

Linear Reserves Open space along waterways, water bodies or easements that can provide linkages between destinations or serve as conservation corridors.

Pocket Parks Small parcels of open space that may be undeveloped or serve a purely amenity function, but do not generally provide functional active recreational space. Pocket parks can be of any size that adds to the proposed or current amenity value of an area and can be recognised as mitigating a gap in the 'Walkability' map but generally should not be included in the established provision ratios unless they achieve a greater than 2000sq m size.

Building Surrounds Grasses, trees, gardens, park furniture and ancillary located around building assets. These provide amenity and beautification to the associated building.

Streetscapes Grasses, trees, gardens, park furniture and ancillary located in road reserves. These provide amenity to the associated road.

Table OA1 – Types of passive Open Space Assets City of Melton 89

OA2 Capacity and Performance Melton City Council’s passive open spaces are generally provided to meet legislated standards where these are available. It is understood that existing parklands and reserves meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion. Council’s draft Open Space Strategy 2014-2024 clearly documents these as being necessary to the health and wellbeing of the community and outlines the importance of ensuring that access to such spaces remains

89 Melton Open Space Strategy 2014-2024 (Draft)

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paramount in planning and developing the municipality into the future. Land value is not included in this OSAMP.

OA3 Condition Assessment

For land, condition assessments are not applicable or undertaken by Council.

OA4 Asset Valuation & Sustainability

As noted at sub-section O2.2.2 of the OSAMP there may also be other value, tangible or intangible that can be applied to environmental reserve land parcels. Such benefits are documented in the draft Open Space Strategy and may be measured through implementation of community survey. Results of community surveys planned during the life of this plan may be documented in the asset register and utilised to develop strategic models to assist with planning of capital expenditure as asset management processes mature. This activity is included as an improvement action at section 8 of the OSAMP (O.4).

OA5 Capital Improvement

For the purpose of this plan all capital improvements have been applied to assets that that may be selected for upgrade, renewal and expansion, for example playgrounds and garden beds.

OA6 Disposal of Open Space Assets

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any parks and reserve land within its portfolio that are excess to requirements.

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OB1 General – Environmental Reserves The Open Space Asset Management Plan (OSAMP) comprises Section 4 of the Councils Asset Management Plan. Part B of the OSAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Environmental Reserves owned or maintained by the City of Melton. Assets covered at Part B represent approximately 1200 hectares of land. Asset Type Description

Environmental Reserves Open space reserved for conservation or water management with varied public access and managed by Council

Table OB1 – Description of Environmental Reserves City of Melton

OB2 Capacity and Performance

Melton City Council’s Environmental Reserves are generally provided to protect and enhance the Council’s native vegetation and biodiversity assets as required under Section 52.16 and 52.17 of the Planning Scheme. The Planning and Environment Act 1987, Flora and Fauna Guarantee Act 1988 and the federal Environment and Biodiversity Conservation Act 1999 also require that native vegetation and associated threatened ecosystems, flora and fauna must not be removed without appropriate permits. Two key environmental reserves provide native vegetation offsets to compensate for the removal of native vegetation elsewhere in the municipality. Offsets must be accompanied by offset management plans that have detailed actions for 10 years and the requirement to manage the ecosystem into perpetuity. There are clear guidelines and requirements set for the Department of Environment and Primary Industries about what must be achieved to manage and improve the quality of native vegetation offsets and these provide the performance criteria.

There is significant benefit to be gained through the provision of Environmental Reserves. Council’s draft Open Space Plan 2014-2024 clearly documents these as being necessary to the health and wellbeing of the community and outlines the importance of ensuring that access to such spaces remains paramount in planning and developing the municipality into the future

OB3 Condition Assessment

For land, condition assessments are not applicable or undertaken by Council.

OB4 Asset Valuation & Sustainability

As noted at sub-section O1.4 of the OSAMP there may also be other value, tangible or intangible that can be applied to environmental reserve land parcels. Such benefits are documented in the draft Open Space Strategy and may be measured through implementation of community survey. Results of community surveys planned during the life of this plan may be documented in the asset register and utilised to develop strategic models to assist with planning of capital expenditure as asset management processes mature. This activity is included as an improvement action at section 8 of the OSAMP (O.4).

OB5 Renewal, Replacement, Creation and Upgrade Plan

Council has allocated $450,000 to rehabilitate and improve the environmental reserve, Mt Cottrell Recreation Reserve. The reserve has extremely high conservation values and is

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considered to contain one of the best remaining grasslands in the Melbourne area. The grassland is protected under state and federal legislation. The site also supports three critically endangered species listed under federal and state legislation; the Striped Legless Lizard (Delma impar); Golden Sun Moth (Synomon plana) and Spiny Rice-flower (Pimelia spinescens). Historically, Council had supported the use of the site for motor sports and other active and destructive pursuits. The recognition of the importance of the ecological values prompted the Council to remove all damaging activity from the reserve. The historic use of the site has caused considerable damage and requires rehabilitation. The allocated funding is required to rehabilitate the site and thereafter manage the whole reserve in perpetuity using conservation covenants with Trust for Nature. The Mount Cottrell Recreation Reserve Rehabilitation and Restoration Plan (Meinhardt March 2014) details the substantial works that are required to rehabilitate the site.

OB6 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing 10 year capital works program. This program has considered factors such as;

• PSP Development;

• Community Infrastructure Plan;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

The projected capital expenditure profile for 2015-2019 for Environmental Reserves is shown below.

This table represents Councils Capital Investment during the life of this plan.

Figure OB1–Programmed Capital Expenditure 2014-2019 Environmental Reserves

$- $50,000.00

$100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00 $350,000.00 $400,000.00 $450,000.00

2015 2016 2017 2018 2019

Capital Upgrade - Environmental Reserves- 2015-2019

Capital Projects (Council Funded New, Renewal, Upgrade, Expansion)

Developer Funded

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The table below provides a breakdown of planned capital expenditure for Environmental Reserves from 2014/2015 financial year to the 2018/2019 financial year. This expenditure incorporates Capital funding allocated by Council as well as PSP developer contributions and grant funded works.

Asset Group Activity 2014/15

$

2015/16

$

2015/2016

$

2016/2017

$

2017/2018

$

Environmental Reserve Land

Upgrade 450,000

Table OB2–Breakdown of Programmed Capital Expenditure 2014-2019 Environmental Reserves As asset practices for this sub class mature strategic modelling across this asset type shall provide guidance on future spend both in terms of capital improvement and also maintenance programming. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8 of this OSAMP (O.1, O2).

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OC1 General- Active & Passive Recreation Reserves The Open Space Asset Management Plan (OSAMP) comprises Sub-section 4 of the Councils Asset Management Plan. Part C of the OSAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Active and Passive Recreation Reserves owned or operated by the City of Melton. Assets covered at Part C represent approximately 54% (Replacement Value) of Councils Open Space Assets and includes the following;

Asset Sub Class Qty Replacement Value

Ovals 33 $ 4,466,232.00

Tennis Facilities (Hard Court and Grassed) 51 $ 2,282,472.00

Courts (BB NB MU HALF)90 30 $ 1,237,118.00

Fields & Pitches (Synthetic & Grassed) 19 $ 6,767,616.00

Skate & BMX Parks 9 $ 2,408,020.00

Sports Ground Ancillary 57 $ 261,078.00

Athletics Facilities 2 $ 73,520.00

Bocce Pitches 5 $ 37,988.00

Cricket Facilities (Nets, Wickets, Pitches) 37 $ 1,072,861.00

Criterium Track 1 $ 112,446.00

Bowling Rinks 3 $ 189,800.00

Greyhound Track 1 $ 35,012.00

Equestrian Arena 1 $ 168,814.00

Passive Recreation Landscapes91

Active Recreation Landscapes92

Table OC1 – Asset Subclasses Active and Passive Recreation Reserves

Streetscapes, passive reserve areas and garden beds are not currently valued by Council. This will be reviewed in future iterations of this plan and included as improvement actions in Section 8(O.1, O.2) of this plan.

OC2 Condition Assessment With the exception of turfed playing fields, Council does not undertake formal condition assessment of Active and Passive Reserves. The parks maintenance contractor will inspect the area as part of routine maintenance programming and respond to CARS as required. There is

90 BB = Basketball, NB = Netball, MU = Multiple Use, HALF = Half Court 91 Includes vegetation across passive recreation areas 92 Includes vegetation surrounding active recreation reserves and playgrounds. Includes Soft fall and soft paths

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some historical data indicating previous inspection of some however this is limited and as such formal condition data does not exist for this subclass. For most part condition has been rated based on asset age.

Council will review ways in which to document condition of active open space assets into the future and opportunity exists to incorporate this output into service contracts, as either a set program or rolling inspection regime. Condition assessment may be undertaken by suitably trained Council Officers using Councils condition manual and IPWEA Practice Note 10.1 as guidance. Alternately this may be incorporated in the service contracts or specialist consultants may be engaged. Council should consider all options and determine a suitable condition assessment program and this activity is included as an improvement action at section 8 of the OSAMP (O.11). Such data will be beneficial to document not only condition, capacity and functionality but also in support of maintenance planning and more accurate allocation of associated funding as the municipality continues to grow.

Council has established useful lives for its Active and Passive Reserves Open Space Assets as well as associated residual values of the asset when it reaches the end of its useful life. These useful lives have been determined as;

Asset Class Subclass Useful Life (Years) Residual

Value

Active Open Space Assets

Ovals Grassed 25 0%

Tennis Courts Hard Court

Grass

20

20

0%

Courts (All) Hard Courts

Grass Courts

20

20

0%

Fields & Pitches Grass

Synthetic

20

15

0%

Skate & BMX Parks Concrete

Metal

Dirt Tracks

100

50

25

0%

Sports Ground Ancillary Coaches Boxes

Players Benches

Goal Posts/Goals

Bollards

20

20

15

15

0%

Athletics Facilities Tracks Synthetic

Tracks Grass

Pitches

20

20

20

0%

Bocce Pitches All 20 0%

Cricket Facilities Practice Nets& Run Ups

Pitches

25

15

0%

Criterium Track All 25 0%

Bowling Rinks All 20 0%

Greyhound Track All 20 0%

Equestrian Arena All 25 0%

Table OC2 Active and Passive Recreation Reserves Useful Life

Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to use, maintenance, capital improvement or replacement.

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Useful lives assume that not all assets within this sub class will have residual value. In addition the list is not exhaustive and shall require review and update on annual basis. While it could be reasonable expected that well active and passive reserves would exceed the above useful lives these are provided as an indicator to enable strategic asset modelling into the future. Council envisages that it will formally review its useful lives and residuals at the next revaluation.

OC3 Asset Valuation & Sustainability

The table below illustrates the current value of Active Open Space Assets across the City of Melton as at July 1, 2014. Some assets were re-valued at 1 Jul 2014 (Skate Parks and BMX) while others were last assessed in 2012. Revaluation should be conducted following formal condition assessment of the all assets in this subclass.

Current Replacement Cost $19,112,977

Depreciated Replacement Cost/ Written Down Value

$11,996,615

Annual Depreciation Expense $910,14193

Table OC3 Active and Passive Recreation Reserves – Valuation as at Jul 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal, upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Active Open Space subclass.

As advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets.

Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. This data will become more refined for each subclass and may be used to inform various recreation strategies and plans.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

220%94 70-90%

Asset Renewal Funding Ratio

Average Capital Renewal Expenditure/ Average

Desired Capital Expenditure

100% 60-80%

Remaining Service Potential

Written Down Value / Replacement Value

63% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Value

0.04% 0-3%

Table OC4 Active and Passive Recreation Reserves – Sustainability Ratios as at Jul 2014

93 Based on average asset useful life of 21 years across this asset sub class 94 Based on capital improvement spend of $34,171,300 funding ratio (renewal, upgrade and expansion) between 2014 and 2018. This figure includes renewal of vegetation, streetscapes and planting of trees as outlines in the 10 Year Capital Works Program. If considering Active surfaces only Renewal Sustainability Ration = 99%

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Based on figures illustrated above Council has allocated a very high portion of funds to maintain asset sustainability into the future. It should be noted that this assessment is based upon total funding ratio for capital improvement including renewal, upgrade and expansion of the asset sub class. A breakdown of this allocation is shown at Table OC6 below.

It should be also noted however that this assessment may change following review of condition and also revaluation of the asset sub classes. In addition evaluation of the capacity and function of the existing assets should be undertaken through community survey to best understand the level of use and practicality of these assets to the community.

Predictive modelling across the asset class will also assist Council to establish programs for upgrade, renewal and expansion of assets, funding for which may be better allocated as ongoing capital programs rather than existing maintenance programming. Such action would be expected to better inform asset sustainability data into the future. Predictive modelling of assets based on improved data sets will also provide varied funding scenarios, also to be considered when planning for capital renewal, upgrade and expansion. This is noted as an improvement action at section 8 of the OSAMP (O.10).

OC4 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing Community Infrastructure Plan and also the current Capital Works Program. This plan and program have considered factors such as;

• PSP Development;

• Community Infrastructure Plan;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

The projected capital expenditure profile for 2015 –2019 for Active and Passive Recreation Reserves

Open Space is shown at Figure OC1. This graph represents Councils Capital Investment as well as developer funded initiatives or those constructed, upgraded, renewed or expanded as a result of grant funding. In line with extensive community growth there is a high rate of investment and assets acquisition.

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Figure OC1 Capital Works Expenditure including acquisition and gifted assets - Active and Passive Recreation Reserves 2015-2019

The table below provides a breakdown of planned capital expenditure for Active and Passive Recreation Reserves from 2014/2015 financial year to the 2018/2019 financial year. This expenditure incorporates Capital funding allocated by Council only and excludes, PSP developer contributions and grant funded works. All assets gifted by developers, as shown in the above table are considered to be new.

Asset Group Activity 2014/2015

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Active & Passive

Open Space

Upgrade 1,468,000 1,573,400 1,373,400 1,393,000 1,393,000

Renewal 22,524,000 2,524,000 3,624,000 3,624,000 3,624,000

New 7,445,321 3,343,179 1,700,000 2,500,000 3,300,000

Expansion

Table OC4 –Breakdown of Programmed Capital Expenditure 2014-2019- Active and Passive Recreation Reserves

The table below provides a breakdown of planned capital expenditure for Active and Passive Recreation Reserves from 2014/2015 financial year to the 2018/2019 financial year. This expenditure incorporates PSP developer contributions and grant funded works.

Asset Group Activity 2014/2015

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Active & Passive Open

Space

Upgrade 200,000 3,245,752, 9,318,958

Renewal

New 8,573,546 10,836,094 9,634,748 200,000 6,201,565

Expansion

Table OC5 –Breakdown of Programmed Capital Expenditure Grant & Developer Funded 2014-2019- Active and Passive Recreation Reserves

$-

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

2015 2016 2017 2018 2019

Capital Expenditure- Passive and Active Reserves 2015-2019

Capital Projects (Council Funded New, Renewal, Upgrade, Expansion)

Developer Contibuted and Grant Funded Assets O

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Based on historical data and predicted growth allocated capital expenditure for the Active and Passive Recreation Reserves is expected to be sufficient to renew and upgrade existing assets. As asset practices for this sub class mature, strategic modelling across this asset type shall provide guidance on future spend both in terms of capital improvement and also maintenance programming. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8 (O. 1, O.2) of this OSAMP.

OC5 Disposal of Open Space Assets

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any active or passive open space assets within its portfolio that are excess to requirements.

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OD1 General – Play Spaces (Equipment) The Open Space Asset Management Plan (OSAMP) comprises Sub-section 4 of the Councils Asset Management Plan. Part D of the OSAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Play Spaces (including exercise equipment) owned or operated by the City of Melton. Assets covered at Part D represent approximately 16% (Replacement Value) of Councils Open Space Assets and includes the following;

Asset Sub Class Qty Replacement Value

Play Spaces 450 $5,972,769 Exercise Equipment 21 $42,500 Table OD1 – Sub-asset type, quantity and replacement value – Play Spaces

OD2 Capacity and Performance

Melton City Council’s Play Spaces Assets are provided to meet design and safety standards. It is understood most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion. Based on current growth history it is anticipated that in addition to capital upgrade of existing assets Council shall be gifted approximately $200,000.00 worth of Playground equipment in each year for the life of this plan.

OD3 Condition Assessment

Council engages the services of a specialist assessor to undertake quarterly compliance auditing of the asset sub class. In December 2013 the assessor was requested to obtain and report on condition data and also to provide revaluation of the subclass. Data has been documented and recorded in the asset management system. In addition to routine risk inspections the parks maintenance contractor will inspect the assets as part of routine maintenance programming and respond to CARS as required.

As at 1 July 2014 the condition of Play Spaces Assets located within the municipality is shown;

Figure OD1 – Asset Condition Playground Equipment and Exercise Equipment

1%

40%

19%

31%

8%

1% 0%

Playground Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

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Council will review ways in which to continue to document condition of active open space assets into the future. Opportunity exists to incorporate this output into service contracts, as either a set program or rolling inspection regime, or to continue to utilise the services of the risk assessor. Condition should be undertaken using Councils condition manual and IPWEA Practice Note 10.1 as guidance. Such data will be beneficial to document not only condition, capacity and functionality but also in support of maintenance planning and more accurate allocation of funding as the municipality continues to grow.

Council has established useful lives for its Active Open Space Assets as well as associated residual values of the asset when it reaches the end of its useful life. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to use, maintenance, capital improvement or replacement. These useful lives have been determined as;

Asset Class Subclass Useful Life (Years) Residual Value

Play Spaces Combination Units All 20 0%

Swings All 20 0%

Spring Riders All 10 0%

Carousels All 20 0%

Exercise Equipment All 10 0%

Other

All

10/20 0%

Table OD2 Play and exercise Equipment - Useful Life

Useful lives assume that not all assets within this sub class will have residual value. In addition the list is not exhaustive and shall require review and update on annual basis. While it could be reasonably expected that play and exercise equipment assets would exceed the above useful lives these are provided as an indicator to enable strategic asset modelling into the future.

OD4 Asset Valuation & Sustainability

The table below illustrates the current value of Play Spaces (including exercise equipment) across the City of Melton as at July 1, 2014. All Play Spaces assets were re-valued at 1 Jul 2014.

Current Replacement Cost $6,015,269.00

Depreciated Replacement Cost/ Written Down Value

$3,118,274.00

Annual Depreciation Expense $240,610.0095

Table OD3 Play Spaces – Valuation as at Jul 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal, upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Active Open Space subclass.

95 Based on average asset useful life across this category of 25 years

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As advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. This data will become more refined for each subclass and may be used to inform various recreation strategies and plans.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

31%96 70-90%

Asset Renewal Funding Ratio

Average Capital Renewal Expenditure/ Average

Desired Capital Expenditure

37% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

51% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

3.9% 0-3%

Table OD5 Play Spaces – Sustainability Ratios as at Jul 2014

Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability of Play Spaces into the future. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Play Spaces Assets this would be estimated at approximately an additional amount of $1.1 million, or total capital improvement investment of approximately $ 2 million over the next 5 years. It should be also noted however that this assessment may change following review of condition and also revaluation of the asset sub classes. In addition evaluation of the capacity and function of the existing assets should be undertaken through community survey to best understand the level of use and practicality of these assets to the community.

Predictive modelling across the asset class will also assist Council to establish programs for upgrade, renewal and expansion of assets, funding for which may be better allocated as ongoing capital programs rather than existing maintenance programming. Such action would be expected to better inform asset sustainability data into the future. Predictive modelling of assets based on improved data sets will also provide varied funding scenarios, also to be considered when planning for capital renewal, upgrade and expansion. This is noted as an improvement action at section 8 of the OSAMP (O.10).

OD5 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing Community Infrastructure Plan and also the current Capital Works Program. This plan and program have considered factors such as;

96 Based on capital improvement spend of $900,000 between 2014 and 2018

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• PSP Development;

• Community Infrastructure Plan;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

The projected capital expenditure profile for 2015-2019 for Play Spaces is shown below. This graph represents Councils Capital Investment as well as developer funded initiatives or those constructed, upgraded or renewed as a result of grant and developer funding. Estimation of gifted assets has been based on historical data using average subdivision development factors between 2011- 2014.

Figure OD2 Capital Works Expenditure including gifted assets - Play Spaces 2015-2019

The table below provides a breakdown of planned capital expenditure for Active Open Space Assets from 2014/2015 financial year to the 2018/2019 financial year. This expenditure incorporates Capital funding allocated by Council only and also includes projected PSP developer contributions and grant funded works. All assets gifted by developers, as shown in the above table are considered to be new.

Asset Group Activity 2014/2015

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Playground Equipment

Upgrade

Renewal 150,000 150,000 150,000 150,000 150,000

New97 250,000 200,000 200,000 200,000 200,000

Expansion

Table OD5–Breakdown of Programmed Capital Expenditure 2014-2019- Playground Equipment

97 Based on average gifted Play Spaces assets of $200,000,000 pa base on one in three subdivisions having structures built worth approximate average of $20000

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

2015 2016 2017 2018 2019

Capital Expenditure- Play Equipment 2015-2019

Capital Projects (Council Funded New, Renewal, Upgrade, Expansion)

Developer Contibuted and Grant Funded Assets

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Allocated capital expenditure for the Play Spaces is theoretically insufficient and in addition rate of asset consumption across this subclass is higher than acceptable benchmarks. Given the high proportion of assets in good or better condition review of useful lives should be investigated. Allocation of higher useful lives would result in changes to sustainability ratios and would have direct correlation on asset sustainability and if more accurate could be better modelled to best drive capital expenditure and maintenance programming thereby providing optimal lifecycle management of this asset subclass. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8 of this OSAMP (O6).

OD6 Disposal of Open Space Assets

Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Play Spaces assets within its portfolio that are excess to requirements.

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OE1 General The Open Space Asset Management Plan (OSAMP) comprises Sub-section 4 of the Councils Asset Management Plan. Part E of the OSAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Park Furniture and Ancillary equipment owned or operated by the City of Melton. Assets covered at Part E represent approximately 16% (Replacement Value) of Councils Open Space Assets and includes the following;

Asset Sub Class Replacement Value

Pergolas , Rotunda & Shelters 2,872,979.00

Fencing 524,505.00

BBQ 341,464.00

Irrigation 1,770,444.00

Table OE1 – Sub-asset type, quantity and replacement value – Park Furniture & Ancillary

At present park furniture and ancillary does not include items such a bins, seating, meters or signage. It is anticipated that as data is brought into the asset register that future iterations of the OSAMP will include these assets.

OE2 Capacity and Performance

Melton City Council’s Park Furniture & Ancillary Assets are provided to meet design and safety standards. It is understood most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion.

At time of writing estimating growth of gifted assets is unable to be achieved with a high level of confidence. Council should undertake to interrogate data sets from various sources to determine historical and estimated growth of gifted assets for this subclass.

OE3 Condition Assessment

Condition assessment of assets included in this part is typically carried out informally through the maintenance program and where issues arise, or where CARs are registered reactive maintenance of the asset will occur. Consideration to formally documenting this process and applying updates to the asset register is listed as an improvement action at Section 8 of the OSAMP (O.11). Condition assessment should be undertaken using Councils condition manual and IPWEA Practice Note 10.1 as guidance. Such data will be beneficial to document not only condition, capacity and functionality but also in support of maintenance planning and more accurate allocation of funding as the municipality continues to grow.

Current condition for BBQs, fencing and shelters, as shown in the figures below, has been based on useful life of the assets and high level asset inspection. Condition data for irrigation systems has not been assessed and should be reviewed as an improvement action of the OSAMP. As at 1 July 2014

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the condition of park furniture and ancillary assets (as recorded) located within the municipality is shown;

Figure OE1 – Asset Condition BBQs

Figure OE1 illustrates the condition distribution of the BBQ assets and shows that the majority of the assets are in good condition or above. Assessment is based on asset age and high level visual inspection. Formalised programs should be adopted which also consider availability and function as asset management systems mature.

Figure OE2 – Asset Condition Fencing

Figure OE2 illustrates the condition distribution of the fence assets and shows that the majority of the assets are in good condition or above. Assessment is based on asset age and high level visual inspection. Formalised programs should be adopted which also consider availability and function as asset management systems mature. It should also be noted that for most parts fences considered in this plan relate only to those in Active Space areas. Council should undertake to collect and

3%

84%

6% 5%

1% 1% 0%

BBQ Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

1%

40%

19%

31%

8%

1% 0%

Fencing Condition

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

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incorporate data for all fences, walls and entry statements across the municipality. This action if noted at section 8(O.1, O.2) of the OSAMP.

Figure OE3 – Asset Condition Non Habitable Structures

Figure OE3 illustrates the condition distribution of the non habitable structures and shows that the majority of the assets are in good condition or above. Assessment is based on asset age and high level visual inspection. Formalised programs should be adopted which also consider availability and function as asset management systems mature. Council will review ways in which to continue to document condition of park furniture and ancillary assets into the future.

Council has established useful lives for its Park Furniture and Ancillary Assets as well as associated residual values of the asset when it reaches the end of its useful life. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to use, maintenance, capital improvement or replacement. These useful lives have been determined as;

Asset Class Subclass Useful Life (Years) Residual Value

Park Furniture and Ancillary

Non Habitable Structures All 20 0%

Irrigation All 20 0%

Fences All 20 0%

BBQs All 20 0%

Table OE2 Park Furniture & Ancillary - Useful Life

Useful lives assume that not all assets within this sub class will have residual value. In addition the list is not exhaustive and shall require review and update on annual basis. While it could be reasonably expected that play and exercise equipment assets would exceed the above useful lives these are provided as an indicator to enable strategic asset modelling into the future.

6% 4%

25%

58%

7%

0% 0%

Shade Structures

Condition 0

Condition 1

Condition 2

Condition 3

Condition 4

Condition 5

Condition 6

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OE4 Asset Valuation & Sustainability The table below illustrates the current value of Park Furniture and Ancillary Assets across the City of Melton as at July 1, 2014.

Current Replacement Cost $6,015,269.00

Depreciated Replacement Cost/ Written Down Value

$3,118,274.00

Annual Depreciation Expense $240,610.0098

Table OE3 Park Furniture & Ancillary– Valuation as at Jul 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal, upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Park Furniture & Ancillary subclass.

As advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. This data will become more refined for each subclass and may be used to inform various recreation strategies and plans.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

27%99 70-90%

Asset Renewal Funding Ratio

Average Capital Renewal Expenditure/ Average

Desired Capital Expenditure

37% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

51% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

3.9% 0-3%

98 Based on average asset useful life across this category of 25 years 99 Based on capital improvement spend of $786,000 between 2014 and 2018

Table OE4 Park Furniture & Ancillary– Sustainability Ratios as at Jul 2014

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Based on figures illustrated above Council has not allocated adequate capital to maintain asset sustainability of park furniture and ancillary equipment into the future. Low asset sustainability ratios theoretically indicate a potential renewal gap or funding backlog. In the instance of Park Furniture & Ancillary this would be estimated at approximately an additional amount of $1.25 million, or total capital improvement investment of approximately $ 2 million over the next 5 years. In addition consumption rate of assets is higher than recommended benchmarks meaning that assets will not last for their predicted life. Condition assessment for these assets has been recommended. At this point Council should undertake to review useful lives of the assets and make updates as necessary within the database. Review of sustainability ratios should be undertaken following this activity which is listed as an improvement action at section 8(O.11) of this plan.

It should be noted that routine maintenance activities may also contribute to improvement of assets. As these improvements are done under maintenance programs, benefit is not applied to the asset even where there has been resultant renewal, upgrade or expansion benefit. Strategic Asset modelling will assist Council to establish programs for upgrade, renewal and expansion of assets, and drive funding to either capital or maintenance programs. Such action would be expected to better inform asset sustainability data into the future. Predictive modelling of assets based on improved data sets will also provide varied funding scenarios, also to be considered when planning for capital renewal, upgrade and expansion. This is noted as an improvement action at section 8(O.10) of the OSAMP

OE5 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing Community Infrastructure Plan and also the current Capital Works Program. This plan and program have considered factors such as;

• PSP Development;

• Community Infrastructure Plan;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

The projected capital expenditure profile for 2015 –2019 for Park Furniture& Ancillary is shown below. This Graph represents Councils Capital Investment as well as developer funded initiatives or those constructed, upgraded or renewed as a result of grant funding. Estimation of gifted assets has been based on historical data using average subdivision development figures between 2011 and 2014 as well as predicted growth from development of reserves and other active spaces under the PSPs. Accordingly it is anticipated that there will be an increase across assets in this subclass of approximately 15% or $150,000 per annum over the period illustrated below.

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Figure OE4 Capital Works Expenditure including acquisition and gifted assets - Park Furniture & Ancillary 2015-2019

The table below provides a breakdown of planned capital expenditure for Park Furniture & Ancillary Assets from 2014/2015 financial year to the 2018/2019 financial year. This expenditure incorporates Capital funding allocated by Council and also includes projected PSP developer contributions and grant funded works. All assets gifted by developers, as shown in the above table are considered to be new.

Asset Group Activity 2014/2015

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Park Furniture &

Ancillary

Upgrade

Renewal 500,000 500,000 500,000 500,000 500,000

New 186,860 150,000 150,000 150,000 150,000

Expansion

Table OE5 –Breakdown of Programmed Capital Expenditure 2014-2019- Park Furniture & Ancillary

Allocated capital expenditure for the Park Furniture & Ancillary is theoretically insufficient however as above illustrated most assets are in good or better condition and are maintained and inspected in accordance with legislative guidelines. Review of useful lives should be investigated as many assets, although in good or better condition are nearing end of useful life. This data would have direct correlation on asset sustainability and if more accurate could be better modelled to best drive capital expenditure and maintenance programming thereby providing optimal lifecycle management of this asset subclass. Continued improvement of existing datasets to enable this activity is listed as an improvement action at Section 8 (O.1, O.2) of this OSAMP.

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

2015 2016 2017 2018 2019

Capital Expenditure- Park Furniture & Ancillary 2015-2019

Capital Projects (Council Funded New, Renewal, Upgrade, Expansion)

Developer Contibuted and Grant Funded Assets

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OE6 Disposal of Park Furniture and Ancillary Assets Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Park Furniture & Ancillary assets within its portfolio that are excess to requirements.

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OF1 General- Park and Sports Ground Lighting The Open Space Asset Management Plan (OSAMP) comprises Sub-section 4 of the Councils Asset Management Plan. Part F of the OSAMP outlines specifically, lifecycle management tactics, asset values and quantities, condition assessment and rating plans for Park and Sports Ground lighting owned or operated by the City of Melton. Assets covered at Part F represent approximately 12% (Replacement Value) of Councils Open Space Assets and includes reserve lighting, sports field lighting, park lighting and feature lighting.

At present there are 159 assets listed in the IAMS database. There are also 113 Assets listed in the My Data register. Council is undertaking audit of both registers with a view to having a single point of truth and accurate understanding of asset quantity, condition and value. This action is listed as an improvement item at Section 8 of the OSAMP (O.14). The known asset value for public lighting assets (open space) is $4,224,073.00.

OF2 Capacity and Performance Melton City Council’s Park and Sports Ground Lighting Assets are provided to meet design and safety standards. Council has in place a biannual audit for sports grounds lighting. Most of these assets meet capacity and performance requirements and that projected growth and development outlined in precinct structure planning will accommodate the municipality’s growth and expansion.

OF3 Condition Assessment There is no data relating to condition of Park Lighting assets. Collection of all assets and condition assessment is included as a recommend improvement action at section 8 of the OSAMP (O.15). On completion Council shall review ways in which to continue to collect document condition into the future. Opportunity exists to incorporate this output into service contracts, as either a set program or rolling inspection regime. Condition should be undertaken using Councils condition manual and IPWEA Practice Note 10.1 as guidance. Such data will be beneficial to document not only condition, capacity and functionality but also in support of maintenance planning and more accurate allocation of funding as the municipality continues to grow.

Council has established useful lives for its Park and Sports Ground Lighting Assets as well as associated residual values of the asset when it reaches the end of its useful life. Useful lives are a guide only as assets may be consumed more quickly or slowly than the expected useful life due to factors including but not limited to use, maintenance, capital improvement or replacement. These useful lives have been determined as;

Asset Class Subclass Useful Life (Years) Residual

Value

Park & Sports Ground

Lighting

All All 20 0%

Table OF1 Useful Life Park and Sports Ground Lighting

Useful lives assume that not all assets within this sub class will have residual value.

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OF4 Asset Valuation & Sustainability The table below illustrates the current value of Park and Sports Ground Lighting across the City of Melton as at July 1, 2014.

Current Replacement Cost $4,224,073.00

Depreciated Replacement Cost/ Written Down Value

$2,900,438.00

Annual Depreciation Expense $163,433.00

Table OF2 Park & Sports Ground Lighting – Valuation as at Jul 2014

Sustainability reporting demonstrates the rate of annual asset consumption and compares this to asset renewal, upgrade and expansion. The table below illustrates MCC sustainability and renewal ratios (based on a 5 year average) as well as service potential across the Park and Sports Ground Lighting presently reported in the Asset System.

As data is cleansed and interrogated and as advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the state of assets. Predictive modelling of assets based on available data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. This data will become more refined for each subclass and may be used to inform various recreation strategies and plans.

Measure Formula Result as at 30 June 2014

Acceptable Benchmark

Asset Sustainability Ratio Capital Expenditure/Depreciation

0%100 70-90%

Asset Renewal Funding Ratio

Average Capital Renewal Expenditure/ Average

Desired Capital Expenditure

60% 60-80%

Remaining Service Potential

Written Down Value / Residual Value

51% > 60%

Average Annual Asset Consumption

Annual Depreciation/Depreciable

Amt

3.9% 0-3%

Table OF3 Park and Sports Ground Lighting – Sustainability Ratios as at Jul 2014

Based on figures illustrated above Council has not allocated any capital to maintain asset sustainability of public lighting across recreation assets. This theoretically indicates a potential renewal gap or funding backlog. As data is cleansed and interrogated and as advanced asset practices are adopted Council will consider this data in conjunction with functionality and risk information as well as feedback from community consultation to draw more informed conclusions about the value, condition and sustainability of the assets. Predictive modelling of assets based on improved data sets will provide varied funding scenarios also to be considered when planning for capital renewal, upgrade and expansion. Sustainability ratios should be reviewed on completion of

100 Based on capital improvement spend of $1,250,000 between 2014 and 2018

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data audit, condition assessment and revaluation of this asset sub class. This is noted as an improvement action at section 8 (O.16) of the OSAMP

OF5 Capital Improvement

Future capital expenditure has been determined in accordance with Council’s existing Community Infrastructure Plan and also the current Capital Works Program. This plan and program have considered factors such as;

• PSP Development;

• Community Infrastructure Plan;

• Population Growth;

• Current Asset Condition Data;

• Levels of Service ;

• Available resources; and

• Comparison of renewal v new assets.

The projected capital expenditure profile for 2015 –2019 for Park & Sports Ground Lighting is shown below. This Graph represents Councils Capital Investment as well as developer funded initiatives or those constructed, upgraded or renewed as a result of grant funding. Estimation of gifted assets has been based data provided regarding construction of new park and sports ground across the municipality between 2014 and 2019. It is anticipated that approximately 124 lighting towers will be erected as part of this Development. Average unit rate applied is $6000.00 per unit. For the purpose of this plan the total value of capital addition had been averaged over the five year period shown below.

Figure OF1 Capital Works Expenditure including acquisition and gifted assets - Park & Sports Ground Lighting

$-

$50,000.00

$100,000.00

$150,000.00

$200,000.00

2015 2016 2017 2018 2019

Capital Expenditure- Open Space Public Lighting 2015-2019

Capital Projects (Council Funded New, Renewal, Upgrade, Expansion)

Developer Contibuted and Grant Funded Assets

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Table OF4 provides a breakdown of planned capital expenditure for Park & Sports Ground Lighting from 2014/2015 financial year to the 2018/2019 financial year. This expenditure incorporates Capital funding allocated by Council and also includes projected PSP developer contributions and grant funded works. All assets gifted by developers, as shown in the above table are considered to be new.

Asset Group Activity 2014/2015

$

2015/2016

$

2016/2017

$

2017/2018

$

2018/2019

$

Park & Sports Ground Lighting

Upgrade

Renewal 100,000 100,000 100,000 100,000 100,000

New 248,800 248,800 248,800 248,800 248,800

Expansion

Table OF4–Breakdown of Programmed Capital Expenditure 2014-2019- - Park & Sports Ground Lighting

OF6 Disposal of Open Space Assets Disposal is any activity associated with removing an asset from ‘service’ through decommission, including sale, demolition or relocation. Melton City Council has not identified any Open Space Public Lighting Assets within its portfolio that are excess to requirements. Macpherson Park Tennis lighting is being removed as the court is now a decommissioned asset.

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7.0 Asset Management Practices

Asset management systems, processes and plans are an essential element to assist organisations with their general management and long term planning of infrastructure assets.

This Section outlines the nature of current practices for AM decision making and details an improvement program to enhance them in order to provide ongoing improvement to management of the Council’s road assets. Table 15 identifies areas vital to managing Councils Assets.

Item Description

Asset data Information on the actual physical details of the assets including quantity, dimensions, age, condition, cost to provide, replacement cost, useful life span, etc. It must be appropriate for the required purpose, reliable and accessible.

Information systems This includes all the data information systems necessary to competently manage the asset. Key systems include the corporate accounting system, asset information system, geographic information system and public request system. Ideally, data should be input once only into one of these systems and be accessible through other systems through interfacing.

Processes Involves the various processes to analyse and evaluate the data from the above systems to produce relevant management reports and works programs.

Strategies Implementation strategies for organisational management, including contractual, people and resource issues, are essential to ensure that the asset management process overall is conducted in a sound and competent manner.

Table 15: Asset Management Requirements

The following chart illustrates the relationship.

Figure 13: Asset Management Support Systems

Corporate Data Information Systems

Corporate Financial System

Geographic Information System

Asset Information System

Stores Inventory System

Corporate Public Request System

Ass

et D

ata

AssetManagement

Plan

Implementation Strategies to facilitate

service delivery

Data analysis and evaluation processes

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7.1 Accounting / financial systems There is a requirement under the Local Government Act 1989 for all Councils to present an Annual report to the Minister for Local Government by the 30 September of each year.

Melton City Council complies with the following accounting standards and guidelines as required:

• AASB 116 Property, Plant & Equipment – prescribes requirements for recognition and depreciation of property, plant and equipment assets

• AASB 136 Impairment of Assets – aims to ensure that assets are carried at amounts that are not in excess of their recoverable amounts

• AASB 1021 Depreciation of Non-Current Assets – specifies how depreciation is to be calculated

• AAS 1001 Accounting Policies – specifies the policies that Council is to have for recognition of assets and depreciation

• AASB 1041 Accounting for the reduction of Non-Current Assets – specifies the frequency and basis of calculating depreciation and revaluation basis used for assets

• AAS 1015 Accounting for acquisition of assets – method of allocating the value to new assets on acquisition

• AAS 1010 Recoverable Amounts of Non-Current Assets – specifies requirement to test the reasonableness of valuations

Council has prepared and endorsed a capitalisation and depreciation policy with schedules for capitalisation and valuation thresholds. These financial thresholds and activities have been developed to assist in determining when expenditure is capital or maintenance.

Council has also documented and adopted an Infrastructure Assets Valuation Methodology Manual to comply with AASB 116 Standards and Fair Value Methods.

7.1.1 Financial System

The Civica system is Council’s financial management and accounting system, which has a number of general purpose or specific purpose general ledgers with their own unique user defined account structure. These include:

• General Ledgers;

• Accounts Receivable Ledgers;

• Accounts Payable Ledgers;

• Budgets Ledgers;

• Forecast Ledgers;

• Cash Accounting Ledgers;

• Commitments Ledgers;

• Project Cost Ledgers; and

• Statistical Ledgers.

Also incorporated into Civica are facilities to manage deployment of fixed assets across the organisation with extensive functionality and reporting for the full life cycle of assets that provides full transparency, from acquisition to disposal. The system also offers a total and comprehensive purchasing solution, encompassing controlling, maintaining and streamlining of purchasing activities across the organisation.

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7.2 Asset management systems Asset management systems using software have become an essential tool for the management of Council’s infrastructure assets. Asset management draws on the information contained in these corporate software systems, which are briefly outlined below.

Melton City Council currently utilises Assetic’s MyData© software system for data storage and asset registers, which contribute to the overall management and long term planning of its infrastructure assets in order to:

• Know what and where the assets are that the organisation owns or is responsible for;

• Know the condition of assets;

• Establish suitable operational, maintenance and renewal regimes to suit the assets and level of services required of them by present and future customers;

• Establish asset function and asset maintenance to meet the needs of the present and future customers;

• Review maintenance practices and optimising operational procedures;

• Implement management strategies for resources and work programs;

• Improve risk management techniques; and

• Identify the true cost of operations and maintenance and predict future capital investments and maintenance expenditure required to optimise the asset function and lifecycle.

In addition, Council utilises Assetic’s MyPredictor© software for prediction analyses and determining future strategies and capital expenditure planning.

The Asset Management Team, operating under the Engineering Business Unit has accountability and responsibility for this system with regards to roads and road associated infrastructure assets.

Council also utilises Pitney Bowles’ MapInfo© as its Geographical Information System (GIS). The GIS system stores asset and other information spatially. The GIS Section operating under the Engineering Business Unit has accountability and responsibility for this system with regards to roads and road associated infrastructure assets.

The effectiveness of asset management can be improved when integration between various systems.

Melton City Council’s Asset Management systems are currently linked and/or integrated in the following manner:

• Asset valuation and depreciation is calculated in MyData© and then exported at the close of each financial period, via Excel to the Finance System to be manually entered at the asset financial class level.

• Council currently has developed an integration between MyData© and MapInfo© where the spatial data is linked to the asset information stored within the MyData© asset database. The current process is that all assets will be first spatially created within the GIS system and then via the selection of a launch button, the MyData© asset register will ‘fire’ open to that asset where the attribute, condition and financial data is populated.

7.3 Information flow requirements and processes The key information that flows into this asset management plan are:

• The asset register data on size, age, value, remaining life of the network;

• The unit rates for categories of work / material;

• The adopted service levels;

• Projections of various factors affecting future demand for services;

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• Correlations between maintenance and renewal, including decay models; and

• Data on new assets acquired by Melton City Council.

The key information flows from this asset management plan are:

• The assumed Works Program and trends;

• The resulting budget, valuation and depreciation projections; and

• The useful life analysis.

These will impact the Long Term Financial Plan, Strategic Business Plan, Annual Budget and departmental business plans and budgets.

In 2012, Council began to implement the maintenance management module within MyData© to compliment the current ledger structure and provide the necessary detail to measure asset performance over its life. This is also regarded as a way to record the different kinds of maintenance expenditure on each asset i.e. planned, unplanned and cyclic. Work tickets have only been partially implemented and further investigation is needed to identify the most suitable costing model and then proceed to change the current work practises of staff.

As a result of this asset management plan, the following changes are proposed for the asset management system:

• Tighter integration with the GIS so that all assets can be located easily with accuracy;

• Transition to an integrated work order system for work planning and control for all of Council’s infrastructure assets;

• Identify and improve upon current asset data within the asset register to improve the quality of asset data and retain all asset knowledge within Council’s corporate asset management register; and

• Link customer requests with specific assets or asset types.

7.4 Standards and guidelines Melton City Council has an endorsed asset management policy which prescribes how asset management is to be utilised by Council to achieve it strategic outcomes which have been defined in Melton City Council Plan 2013-2017.

The principal purpose of the asset management policy is to guide Council in the delivery of needs based services to the residents, businesses and visitors. It is based on a set of policy principles that relate to:

• Asset Planning & Budgeting

• Asset Operations & Maintenance

• Risk Assessment & Management

• Asset Accounting & Costing

• Service Planning and associated functional requirements

• Information Systems

• Data Management

Council has also prepared an asset management strategy. The objective of the asset management strategy has identified a structured set of strategies aimed at enabling Council to improve its asset management practices in line with the Council Plan and asset management policy. Combined with the asset management plans for each asset class, these documents will provide Council with a set of comprehensive information and a framework to assist both short and long-term service delivery planning.

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A key benefit of implementing this AMP is the resultant ability for Council to align its resources and needs against a key set of actions to implement asset management planning techniques that can be monitored for their performance and cost effectiveness.

The IIMM provides an international best practice context to the development of asset management capability within Council.

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8.0 Plan Improvement and Monitoring

8.1 Improvement Plan The asset management improvement plan generated from this AMP is shown in Table 5.

Task No

Associated Plan

Task Description Responsible Unit Timeline

G.1 ALL Service Planning Undertake detailed service analysis and planning for delivery of services and associated asset requirement (20 Years)

Asset Managers July 2016

G.2 ALL Asset Risk Register

Build on base data to develop a risk register for all asset classes through review of condition data, service planning outputs and lifecycle modeling for asset types

Strategic Asset Management Officer

July 2016

R.1 RAMP Levels of Service Analyse and quantify community satisfaction survey to understand acceptance of current levels of service or any proposed shift in service levels in accordance with funding allocations.

Asset Management

Operations

July 2015

R.2 RAMP Technology Review technological advances in road asset construction and maintenance and their application to current programs.

Asset Management

Operations

Capital Works

Ongoing

R.3 RAMP Condition Assessment

Review condition assessment of road and road related assets and update register to reflect updated condition

Asset Management

July 2016

R.4 RAMP Asset Lifecycle Review useful lives for all assets and update register in conjunction with condition assessment activities

Asset Management

July 2016

R.5 RAMP Asset Lifecycle Modelling

Undertake to update models for all assets in this plan following update of condition and lifecycle data as noted at improvement actions R.3 and R.4. Update RAMP Parts A-F accordingly.

Asset Management

July 2016

R.6 RAMP Maintenance Funding Allocation Footpaths

Review funding allocated to maintenance of footpaths across the network with a view to transferring footpath renewal to capital program to ensure that resulting capital renewals are applied in the asset database

Asset Management

Engineering

Operations

July 2015

R.7 RAMP Condition Assessment and Maintenance Kerb

Validate kerb condition data and update asset register and renewal models. Review maintenance expenditure and apportion specifically to kerb sub assets to enable more

Asset Management

Operations

July 2016

288

detailed reporting in future iterations of this plan.

R.8 RAMP Condition Assessment TCDs

Undertake condition assessment of TCDs across the municipality. Apply condition data to register.

Asset Management

Dec 2016

R.9 RAMP Capital Renewal Selection & Modelling TCDs

Develop prediction modelling for capital renewal and upgrade this sub class to better inform future iterations of this plan.

Asset Management

Dec 2016

R.10 RAMP Maintenance Expenditure TCDs

Record and document maintenance expenditure for TCDs to enable higher level reporting and understanding of funding ratios

Operations Jul 2016

R.11 RAMP Condition Assessment Bridges

Undertake condition assessment for all road and foot bridges (Level 1and 2) utilising professional services organisation. Validate condition information for viewing platforms as provided by roads contractor and update asset register with condition data accordingly.

Asset Management

Operations

Dec 2015

R.12 RAMP Bridge Capital Renewal

Update Bridge renewal models in accordance with updated condition data as noted at improvement action R. 11.

Asset Management

Dec 2016

R.13 RAMP Data Improvement Other Assets (Part F)

Undertake to update register to include all assets listed at Part F of this plan including upload of street light data as held in IAMS and Intra maps tables

Asset Management

July 2016

R.14 RAMP Condition Assessment Other Assets

Review assets subclasses included at part A and determine those that may be held as network assets. Develop formal condition assessment processes for other assets that are listed individually and that will be subject to revaluation under AAS113. This may include consideration of documenting routine inspection data under the roads maintenance contract or update of condition following routine asset maintenance activities.

Asset Management

Operations

Dec 2015

R.15 RAMP Maintenance Expenditure Other Assets

Record and document maintenance expenditure for other assets as listed at Part F to enable higher level reporting and understanding of funding ratios

Operations Jul 2016

D.1 DAMP Asset Register Data Collection of all gifted and constructed stormwater assets and development of database to provide

Asset Management

2014-2015

289

greater detail in reporting outcomes for all subclasses

D.2 DAMP Customer Satisfaction

Undertake to survey community as to levels of satisfaction relating to current maintenance service levels relating to stormwater assets

Asset Management

Operations

2015-2016

D.3 DAMP Levels of Service Review and update current levels of service taking into consideration customer feedback to be obtained in Community Satisfaction Survey 2014

Asset Management

Operations

2015-2016

D.4 DAMP Service Planning Establish recurrent growth of all assets in the asset class and determine criteria for implementing long term capital renewal, upgrade or expansion

Asset Management

2016-2017

D.5 DAMP Maintenance Review expenditure and consider value of listing assets within this subclass independently in the maintenance program

Operations 2015-2017

D.6 DAMP Condition Assessment

Establish and implement rolling condition assessment program for all assets within the Stormwater class

Asset Management

2014-2016

D.7 DAMP Asset Data Review asset data and establish subclasses for all assets in this category to better document quantity, \value and maintenance activities

Asset Management

2014-2016

D.8 DAMP Condition Assessment

Document condition of asset subclasses at parts A&B of the DAMP following condition assessment

Asset Management

2014- 017

D.9 DAMP Capital Investment

Review capital program with regards to required renewal, upgrade or expansion of pipe and pit assets

Asset Management

Operations

Capital Programs

2015-2016

D.10 DAMP Capital Investment

Review data outlining capitalisation of stormwater assets for previous 12 months to establish approximate growth in stormwater pits per annum from capital improvement projects. Data can be used to inform future iterations of this plan.

Asset Management

2015 -016

B.1 BAMP Strategic Asset Modelling

Develop Predictive Models to inform capital improvement (renewal, upgrade or expansion) of Building Assets.

Develop Maintenance Models to inform maintenance planning activities.

Asset Management

2014-2015

B.2 BAMP Data Improvement

Audit and Quantify data to update unit rates and useful lives. Data to be

Asset Management

2014-2015

290

updated with revaluation of building assets in 2014/2015 FY close

B.3 BAMP Building Valuation

Obtain specialised building valuations for Melton Library and Learning Hub and Melton Civic Centre. Apply valuation of other assets as conducted by Sergon Building Consultants

Asset Management

2014/2015

B.4 BAMP Data Improvement

Review and incorporate lease and maintenance agreements into Asset Register

Leisure & Facilities 2014-2016

B.5 BAMP Data Improvement

Undertake Functionality and Capacity Assessments of Buildings in conjunction with Service Plan Review. Identify risks associated with loss or non availability of assets and update data in the asset management system and predictor modelling criteria

Leisure & Facilities

Asset Management

2014-2017

B.6 BAMP Service Provision Develop and document maintenance service levels with regard to all buildings assets owned or maintained by Council

Leisure & Facilities 2014-2016

B.7 BAMP Service Plans Review and Update Services Plans to inform asset function and capacity in consideration with the communities growth and development

Asset Custodians

2014-2016

B.8 BAMP Service Delivery Investigate advances to enhance LOS outputs/maintenance expenditure. Document these in future iterations of this BAMP

Leisure & Facilities Ongoing

B.9 BAMP Asset Handover Develop and implement procedure to formally receive and handover assets ensuring data is provided to all required teams

Leisure & Facilities

Capital Works

Asset Management

2014-2016

B.10 BAMP Asset Modelling Develop criteria within asset prediction software to model asset upgrade, renewal and expansion. Consider outcomes of service planning and community feedback

Asset Custodians

Leisure & Facilities

Capital Works

Asset Management

2015-2017

O.1 OSAMP Asset Register Migrate and audit asset data for subclasses not included in this OSAMP including park furniture, bollards, bins, signage and artwork.

Asset Management

2014-2015

O.2 OSAMP Asset Register Continue to capture all Open Space Related Assets and upload into Asset Register

Asset Management

Ongoing

O.3 OSAMP Maintenance Agreements

Review existing open space maintenance agreements and assess for risk, asset capacity, functionality and relative benefit to the

Operations Asset Management

2014-2016

291

community. Formally document existing and ongoing agreements and link to Asset Management System

O.4 OSAMP Asset Function Undertake review to identify non tangible value of environmental reserves across the municipality. Document offset benefits in future iterations of this plan

Environmental Asset Management Operations Community Engagement

2014-2016

O.5 OSAMP Community Engagement

Develop Community Engagement process for development of Open Space Assets in order to best understand community expectation regarding condition, availability and function of the assets.

Facilities & Leisure Asset Management Community Engagement

2014-2016

O.6 OSAMP Capital Planning/ Maintenance Modelling

Undertake review of data sets, community consultation reports and service planning to determine suitable hierarchies for all open space assets.

Asset Management Operations Leisure & Facilities

2015-2017

O.7 OSAMP Service Planning Review service plans to best understand how assets meet the requirements of community assets. Consider service levels that may be excluded from or included in new parks contracts

Asset Managers Operations Service Managers

2015

O.8 OSAMP Open Space Plan Review data in open space plan to inform asset database, modelling and future iterations of this plan

Asset Management Leisure & Facilities Operations

2015

0.9 OSAMP Levels of Service Review available technologies and implement into planned maintenance contracts where beneficial to the community.

Operations

O.10 OSAMP Asset Renewal, Upgrade, Expansion

Develop models to inform renewal funding of passive open space assets in accordance with condition data, capacity and function as well as value of assets to the community.

Asset Management

2015-2016

O.11 OSAMP Condition Assessment

Develop and adopt formalised condition inspection regimes and program(including rater) and cost for all assets subclasses associated with this OSAMP in accordance with Councils Condition Assessment Manual and IPWEA Practice Note 10.1

Asset Management Operations

2015-2016

O.12 OSAMP Condition Assessment

Review and implement MCC Open Space condition Manual for all routine and programmed inspection activities.

Operations Asset Management

Ongoing

O.13 OSAMP Financial Reporting

Develop criteria to report on maintenance expenditure considering

Operations 2016-2017

292

each asset category as well as differentiation between planned, cyclic and reactive maintenance expenditure. Consider inclusion in this data as KPI for future maintenance contracts

O.14 OSAMP Public Lighting Review and audit data sets in MyData and IAMS to resolve possible conflict with regards to duplication of assets.

Asset Management

2014-2016

O.15 OSAMP Public Lighting Undertake condition inspection of public lighting assets in recreation reserves, sports grounds, car parks and play grounds and provide revaluation of the asset category.

Asset Management Operations

2016-2017

O.16 OSAMP Public Lighting Review Sustainability Funding Ratios for Open Space Public Lighting following review of datasets and condition audit

Asset Management

2016-2017

Table 5 – Improvement Actions AMP 2014-2017

8.2 Monitoring and review procedures

This asset management plan will be reviews during annual budget preparation and amended to recognise any changes in service levels and / or resources available to provide those services as a result of the budget decision process. The plan shall also be reviewed when there has been a Council election.

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9.0 Glossary of terms

The following terms and acronyms are used in this AM plan.

Asset A physical component of a facility, which has value, enables services to be provided and has an economic life of greater than 12 months.

Asset Management (AM)

The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner.

Asset Management Plan (AM Plan)

A plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost effective manner to provide a specified level of service. A significant component of the plan is a long-term cash flow projection for the activities.

Asset Management Policy

Provides an overall policy framework to guide the strategic management of Council’s infrastructure assets.

Asset Management System (AMS)

A system (usually computerised) for collecting analysing and reporting data on the utilisation, performance, lifecycle management and funding of existing assets.

Asset Register

A record of asset information considered worthy of separate identification including inventory, historical, financial, condition, and construction, technical and financial information about each.

Current Replacement Cost

The cost of replacing the service potential of an existing asset, by reference to some measure of capacity, with an appropriate modern equivalent asset.

Demand Management

The active intervention in the market to influence demand for services and assets with forecast consequences, usually to avoid or defer CAPEX expenditure. Demand management is based on the notion that as needs are satisfied expectations rise automatically and almost every action taken to satisfy demand will stimulate further demand.

Depreciation The wearing out, consumption or other loss of value of an asset whether arising from use, passing of time or obsolescence through technological and market changes. It is accounted for by the allocation of the historical cost (or re valued amount) of the asset less its residual value over its useful life.

Disposal Activities necessary to dispose of decommissioned assets.

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Economic Life

Force Majeure

The period from the acquisition of the asset to the time when the asset, while physically able to provide a service, ceases to be the lowest cost alternative to satisfy a particular level of service. The economic life is at the maximum when equal to the physical life however obsolescence will often ensure that the economic life is less than the physical life.

A clause included in the Road Management Plan and Transport Asset Management Plan that describes the conditions under which a Council can suspend its maintenance and inspection responsibilities under the Road Management Plan / Transport Asset Management Plan due to the occurrence of events outside their control.

Geographic Information System (GIS)

Software that provides a means of spatially viewing, searching, manipulating, and analysing an electronic database.

Level of Service (LoS)

The defined service quality for a particular activity or service area (i.e. interior) against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, regulatory and environmental acceptability and cost.

Life A measure of the anticipated life of an asset or component; such as time, number of cycles, distance intervals.

Life Cycle

Life cycle has two meanings:

(a) The cycle of activities that an asset (or facility) goes through while it retains an identity as a particular asset, i.e., from planning and design to decommissioning or disposal.

(b) The period of time between a selected date and the last year over which the criteria (e.g. costs) relating to a decision or alternative under study will be assessed.

Maintenance All actions necessary for retaining an asset as near as practicable to its original condition, but excluding rehabilitation or renewal.

Performance Measure

A qualitative or quantitative measure of a service or activity used to compare actual performance against a standard or other target. Performance indicators commonly relate to statutory limits, safety, responsiveness, cost, comfort, asset performance, reliability, efficiency, environmental protection and customer satisfaction.

Physical Life The actual life of an asset.

Rehabilitation

Works to rebuild or replace parts or components of an asset, to restore it to a required functional condition and extend its life, which may incorporate some modification. Generally involves repairing the asset using available techniques and standards to deliver its original level of service (i.e. re roofing, replacing doors) without resorting to significant upgrading or replacement.

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Renewal Works to refurbish, rehabilitate or replace existing facilities with facilities of equivalent capacity or performance capability.

Replacement The complete replacement of an asset that has reached the end of its life, so as to provide a similar or agreed alternative, level of service.

Replacement Value

The prevailing market cost of supply and installation of an asset delivering an equivalent service, making no allowance for depreciation of the asset.

Strategic Plan Strategic planning involves making decisions about the long-term goals and strategies of an organisation. Strategic plans have a strong external focus, cover major portions of the organisation and identify major targets, actions and resource allocations relating to the long term survival, value and growth of the organisation.

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10.0 References

1. International Infrastructure Management Manual 2011. NAMS Limited. Wellington. 2. Road and Drainage Maintenance Contract 2012. Melton City Council.

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11.0 Appendices and Attachments

1. Road Maintenance Contract – Service Intervention Levels

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