Council Asset Management Strategy

Asset Management Strategy

Version 4.02 – 29 June 2009

CT Management Group Henshelwood & Associates

City of Banyule Council Asset Management Strategy

Human Rights Statement In accordance with section 28 of the Charter of Human Rights, the Asset Management Strategy has been assessed as being compatible with the human rights protected by the charter.

The Asset Management Strategy outlines the directions and objectives and how Council will develop Asset Management Plans that will manage and maintain infrastructure assets. This assessment is based on a Statement of Compatibility of the Human Rights protected by the Charter that are relevant to the Policy.

Schedule of Changes & Amendments

Version Date Changes/Amendments

V1.00 Nov. 1999 Original version - developed by Votar Partners Pty Ltd

V2.00 N/A Not known

V3.00 Jun. 2003 Updated version of original Strategy – to include the DVC, AG and MAV issues in during 2003 and adopted by Council

V4.01 Aug 2008 Changing environment instigated by AG, DVC & MAV for managing municipal infrastructure assets has necessitated a complete review of Council’s Asset Management Strategy. Undertaken by CT Management Group during 2006.

V4.02 June 2009 Insertion of statement of Human Rights above the Schedule of Changes & Amendments.

NB: 1. Primary number changes to Versions (eg V1.00 to V2.00) will be made when the

document undergoes its regular review and when significant changes are made to standards and guidelines for inspections, intervention levels or work

2. Secondary number changes (V1.00 to V1.01) will apply to minor amendments that do not materially impact the document and are intended only to clarify or update issues.

AM Strategy V4.02 - 160609.doc 2 of 62 Printed: 5/11/2009


Part 1 - Executive Summary

1. Introduction Council’s Asset Management Strategy is a key link in the chain of actions required for a sound process of improving the long term management of its infrastructure assets.

The Asset Management Strategy establishes the framework that determines the nature and direction of Asset Management. Its objective is to provide a structured set of actions aimed at enabling improved asset management by the organisation.

The following diagram illustrates the important aspects of the improvement process, and in particular where the Asset Management Strategy document sits. This is the DVC framework.

The Asset Management Strategy document is a companion to the Asset Management Policy that outlines why management of Council’s infrastructure assets will be undertaken across the organisation. The policy defines the key principles that underpin asset management for a council. Developed in accordance with Policy and Strategy, individual asset management plans will detail strategies and actions that are specific to that asset group.

The original Council Asset Management Strategy was released in November 1999. Banyule City Council commissioned Votar Partners Pty Ltd to assist it with the development of overall objectives and principles for asset management in line with acknowledged good asset management practices.

Since the release of the 1999 Asset Management Strategy, the Department of Victorian Communities, the Auditor General’s Office and the Municipal Association of Victoria have continued a path of ‘continuous improvement by clarifying the direction they wish the industry to pursue to improve Asset Management. This includes, financial management, asset performance and maintenance activities (Life Cycle Planning).



The Strategy was subsequently reviewed during 2003 to include the DVC, AG and MAV issues in during 2003 and adopted by Council.

The context of the Asset Management Strategy had not changed significantly from the original document however since then there has been a greater knowledge and emphasis on the issues driving asset management.

This changing environment for managing municipal infrastructure assets has necessitated a complete review of Council’s Asset Management Strategy. However, the sound platform presented in the Votar Partners prepared edition (the latest being Version 3.0, June 2003) will be retained as a reference document.

2. Asset Management Drivers The following diagram shows the influences and drivers that are affecting Asset Management implementation.

3. Outputs of the Asset Management Strategy The strategy outlines:

the current position of asset management within the City of Banyule; where the City intends to be, taking into account Council’s vision, goals and

objectives from City Plan; how the City will achieve this; Key objectives for the time frame.

The strategy also: links and integrates council’s plan and resources, indicating which services are

to be delivered through which assets; Outlines the budgetary framework to be used for asset management; Defines the order of priority preparation of the initial asset management plans; States the key assumptions for Banyule’s management of assets; Outlines Asset Management practices, systems and improvements



4. Asset Management Strategies Column 1 in the following table outlines the strategies for future vision while column 2 outlines the current status. Actions to progress the vision are outlined in City Plan and each Annual Business Plan.

Future Vision Current Status

1. Sustainability of management of assets All infrastructure assets are to be managed in a manner that ensures they can be sustained and provide the specified “levels of service” necessary for the overall benefit of the community.

Development of Asset Management Plans is progressing but they are as yet incomplete. Council has prioritised this task in City Plan 2006-2010

2. Assets to meet Community ‘Needs’ Any proposals for upgrading or provision of new assets will be assessed as to community “need” and will involve a process of community consultation. As well as identifying the specific needs of the community, the community in turn is to be made aware of issues of ongoing cost and risk.

Council’s Asset Management Policy requires community awareness. Community Consultation process currently consists of “Best Value’ consultation for individual services.

3. Disposal of Assets Consideration of disposal of assets will be initiated when the economic life of the asset has expired, when its service specification is no longer relevant (i.e. technical obsolescence), or when the need for the service provided by the asset has disappeared.

Current practice is that when an asset is to be considered for disposal it is subject to a stand-alone investigation

4. Asset Management to be basis of Long-term Strategy AM Planning needs will be clearly identified as one of the key base drivers for long-term strategy for the City of Banyule.

This is Council Policy.

5. Asset Information Systems to be fully integrated Council’s Asset Information Systems will be fully integrated with information accessible by all staff utilising corporate tools, information flow will be uninhibited between asset users, and data will require input into the system once only.

This task is being progressively undertaken.

6. Asset Management Responsibility Assignment Matrix The responsibilities and accountabilities of nominated Asset Managers will be fully defined. A Responsibility Assignment Matrix will identify and allocate these responsibilities for the various asset groups.

Responsibility Assignment Matrix has been developed (Refer to Appendix 3)..

7. Asset Management Plans Each key asset group is to have an Asset Management Plan, the development of which has been overseen by the relevant asset manager. Each Asset Management Plan will: Outline how that asset group will be managed in terms of usage, maintenance, renewal and/or disposal. Provide information on current asset stock, its function, condition, operating and maintenance costs and utilisation. Define Rolling Works Programs for both Infrastructure Renewals and Maintenance Management. Address risk management issues specific to the asset group.

Initial asset groups have been nominated in a priority order (Refer to Section 6.7 of the Strategy document).

8. Rolling Works Programs Rolling Works Programs are to be used as the basis for formulating the Corporate Long Term Financial Model.

Currently done where such rolling works programs have been developed.

9. Operational Plans Operational plans, including the rolling works programs, will meet requirements of the following planning horizons: Provide indicative costs for works for 20 years ahead for long-term financial planning; Provide cost estimates for the forthcoming 3 to 5 years, to be outlined in City Plan; and Provide detailed costs for the Annual Budget, to be outlined in the Council’s Annual Business Plan.

To be developed upon completion of the various asset management plans.



5. Implementation Actions The following are specific actions that are necessary to exercise satisfactory implementation of the Council Strategy for all asset groups. (See Section 7.1)

Action Deadline Resource

1. Asset Information Systems to be fully integrated The following systems need to be integrated

AIM Authority (main corporate database) SMEC Pavement Management System

2. Asset Management Plans The following AM Plans to be completed:

Road Network AM Plan Stormwater Drainage Playground Equipment & Playgrounds Street Trees Buildings & Facilities

3. Recurrent Expenditures Review recurrent expenditure on asset maintenance based upon the established service delivery criteria to establish if over- or under-servicing exists.

4. Asset Condition Assessments Develop a process for regular condition assessments, at intervals appropriate to the asset group, and ensure that funding for this is recognised in the budget

5. Provision of new assets Ensure a thorough investigation is undertaken to establish the real need/function, alternative options and associated risks

6. Road Management Plan Implement Council's Road Management Plan to meet the legislative requirements of the Road Management Act.

7. Data Capture Develop and implement a new integrated approach to data capture and asset inspections

8. Strategic Linkages Further develop the links between strategic asset management and routine asset maintenance activities.

9. Continue to implement asset based technology solutions linking with corporate information systems.

10. Continue to focus on asset preservation, sustainability and renewal rather than asset creation.

11. Continue to develop 4-year budget funding cycles to ensure sustainable and consistent asset management.

12. Ensure Council’s asset portfolio is strategically assessed to continue to meet the needs of the Community

Part 2 – Working Document Part 2 provides the detail associated with the Executive Summary and the associated diagrams.



Part 2 – Working Document

Contents

1. INTRODUCTION ........................................................................................................................ 9

2. ASSET MANAGEMENT STRATEGY........................................................................................ 9 2.1. PURPOSE ............................................................................................................................ 9 2.2. STRATEGIC APPROACH TO ASSET MANAGEMENT .................................................................. 9 2.3. STRATEGIC FINANCIAL PLANNING ......................................................................................... 9 2.4. ASSET MANAGEMENT STRATEGIES..................................................................................... 10

3. BACKGROUND ....................................................................................................................... 11 3.1. CITY OF BANYULE.............................................................................................................. 11 3.2. COUNCIL MANAGED ASSETS .............................................................................................. 11

4. CURRENT STATUS OF BANYULE’S INFRASTRUCTURE ASSETS................................... 13 4.1. ASSET STOCK ................................................................................................................... 13 4.2. CONDITION ASSESSMENT................................................................................................... 14 4.3. LEVELS OF SERVICE .......................................................................................................... 15 4.4. COMMUNITY INPUT............................................................................................................. 16

4.4.1. Consultation .............................................................................................................................. 16 4.4.2. Assessment of Need & Function ............................................................................................... 17 4.4.3. Community Feedback & User Satisfaction ................................................................................ 17 4.4.4. Community/Stakeholder Expectations....................................................................................... 18

4.5. FUNDING ‘GAP’ ANALYSIS .................................................................................................. 18

5. ASSET MANAGEMENT PRACTICES, SYSTEMS & PROCESSES ...................................... 19 5.1. ASSET MANAGEMENT PRACTICES....................................................................................... 19 5.2. DATA INFORMATION SYSTEMS ............................................................................................ 20

5.2.1. AIM Authority Information System ............................................................................................. 21 5.2.2. Financial Management System ................................................................................................. 22 5.2.3. Customer Service Systems & Procedures................................................................................. 22 5.2.4. Geographic Information System (GIS)....................................................................................... 23 5.2.5. Road Pavement Management System (PMS)........................................................................... 23

5.3. SYSTEMS FUNCTIONALITY .................................................................................................. 24 5.4. ASSET MANAGEMENT PLANS.............................................................................................. 25 5.5. KEY ASSUMPTIONS FOR ASSET MANAGEMENT .................................................................... 26 5.6. BUDGETARY FRAMEWORK FOR ASSET MANAGEMENT.......................................................... 28 5.7. ASSET MANAGEMENT ROLES & RESPONSIBILITIES .............................................................. 32 5.8. ASSET MANAGEMENT ROLE RESPONSIBILITY ASSIGNMENT.................................................. 32 5.9. AM GOALS FOR EACH ASSET GROUP................................................................................. 32

6. ASSET MANAGEMENT STRATEGIES .................................................................................. 33 6.1. LONG-TERM STRATEGIES................................................................................................... 33 6.2. CITY PLAN STRATEGIES ..................................................................................................... 34




7. STRATEGY IMPLEMENTATION MEASURES ....................................................................... 35 7.1. IMPLEMENTATION ACTIONS................................................................................................. 35 7.2. ACQUISITION OF NEW ASSETS & ACCEPTANCE STANDARDS ................................................ 36 7.3. DISPOSAL OF ASSETS ........................................................................................................ 36 7.4. ASSET RECORDING, VALUATION AND REPORTING ............................................................... 37 7.5. DATA COLLECTION & INPUT INTO THE ASSET INFORMATION SYSTEM .................................... 38 7.6. PRIORITY OF AM PLAN PREPARATION ................................................................................ 38

8. RISK MANAGEMENT.............................................................................................................. 39 8.1. RISK MANAGEMENT POLICY & GUIDELINES ......................................................................... 39 8.2. RISK ASSESSMENT ............................................................................................................ 39

8.2.1. Risk/Hazard Identification.......................................................................................................... 40 8.2.2. Risk Criteria & Consequences................................................................................................... 40 8.2.3. Measure of Risk Likelihood ....................................................................................................... 42 8.2.4. Risk Analysis Matrix .................................................................................................................. 42

8.3. TREATING RISKS................................................................................................................ 42 8.3.1. Action Controls .......................................................................................................................... 42 8.3.2. Managing High Risk Works ....................................................................................................... 43 8.3.3. Responding to Emergencies ..................................................................................................... 43 8.3.4. Contingency Planning................................................................................................................ 43

9. PERFORMANCE INDICATORS, MONITORING & REVIEW.................................................. 44 9.1. PERFORMANCE INDICATORS............................................................................................... 44 9.2. MONITORING & REVIEW ..................................................................................................... 45

9.2.1. AM Plan Review ........................................................................................................................ 45 9.2.2. Road Management Plan Review ............................................................................................... 46 9.2.3. Audit Review Process................................................................................................................ 46 9.2.4. AM Plan Performance Measures............................................................................................... 47 9.2.5. Asset Delivery Performance ...................................................................................................... 47 9.2.6. Reporting Asset Achievements ................................................................................................. 48 9.2.7. External Factors ........................................................................................................................ 48

10. REFERENCE DOCUMENTS ................................................................................................. 48

11. APPENDICES ........................................................................................................................ 48 APPENDIX 1: - ASSET MANAGEMENT ROLES & RESPONSIBILITIES MATRIX.......................................... 49 APPENDIX 2: - ASSET CATEGORIES & RESPONSIBILITIES MATRIX....................................................... 51 APPENDIX 3: - BUSINESS PLAN 2006/07 AM STRATEGIES, PRIORITIES & ACTIONS............................. 54 APPENDIX 4: - SERVICE STANDARDS& PERFORMANCE MEASURES FOR EACH ASSET CATEGORY ........ 56 APPENDIX 5: - AM GOALS FOR EACH ASSET GROUP......................................................................... 59 APPENDIX 6: - DVC CUSTOMER SERVICE SURVEY, 2005 .................................................................. 62


1. Introduction The asset management strategy is a key element of City Plan. The strategy provides a better understanding of how to align the asset portfolio so that it best meets the service delivery needs of the local community, both now and in the future, to enable the council’s asset management policy to be achieved.

The original Council Asset Management Strategy was released in November 1999. Banyule City Council commissioned Votar Partners Pty Ltd to assist it with the development of overall objectives and principles for asset management in line with acknowledged good asset management practices.

Since the release of the 1999 Asset Management Strategy, the Department of Victorian Communities, the Auditor General’s Office and the Municipal Association of Victoria have continued a path of ‘continuous improvement by clarifying the direction they wish the industry to pursue to improve Asset Management. This includes, financial management, asset performance and maintenance activities (Life Cycle Planning).

City of Banyule is embracing the MAV STEP Program process in order to be better prepared in asset management for the future. As part of the process this Council Asset Management Strategy has been prepared to ensure that any actions taken in developing Asset Management Plans are consistent with overall council strategy.

The Strategy was last reviewed during 2003 to include the DVC, AG and MAV issues and adopted by Council.

The context of the Asset Management Strategy had not changed significantly from the original document however since then there has been a greater knowledge and emphasis on the issues driving asset management. The sound platform presented in the Votar Partners prepared edition (the latest being Version 3.0, June 2003) will be retained as a reference document.

2. Asset Management Strategy 2.1. Purpose

The Asset Management Strategy establishes the framework that determines the nature and direction of Asset Management. Its objective is to provide a structured set of actions aimed at enabling improved asset management by the organisation.

The Executive Summary provides more explanation of the purpose of the Asset Management Strategy.

2.2. Strategic Approach to Asset Management The Council’s Asset Management Policy document details the organisational context and the linkages associated with asset management planning & strategy.

2.3. Strategic Financial Planning It is essential for sound strategic financial planning that the requirements of all asset groups are established to ensure that the overall organisational needs are assessed. Only in this way can an equitable apportionment of available funding be made across all asset groups. This can only occur if competent Asset Management Plans have been developed across all infrastructure asset groups.

Apportionment is based on the strategic needs of the organisation and not the needs of a single asset group.



2.4. Asset Management Strategies Column 1 in the following table outlines the strategies for future vision while the adjoining column outlines the current status. Actions to progress the vision are outlined in City Plan and each Annual Business Plan.

Future Vision Current Status

1. Sustainability of management of assets All infrastructure assets are to be managed in a manner that ensures they can be sustained and provide the specified “levels of service” necessary for the overall benefit of the community.



Council’s AM Policy requires community awareness. Community Consultation process currently consists of “Best Value’ consultation for individual services.







6. AM Responsibility Assignment Matrix The responsibilities and accountabilities of nominated Asset Managers will be fully defined. A Responsibility Assignment Matrix will identify and allocate these responsibilities for the various asset groups.


7. Asset Management Plans Each key asset group is to have an Asset Management Plan, the development of which has been overseen by the relevant asset manager. Each Asset Management Plan will: Outline how that asset group will be managed in terms of usage, maintenance, renewal and/or disposal. Provide information on current asset stock, its function, condition, operating and maintenance costs and utilisation. Define Rolling Works Programs for both Infrastructure Renewals and Maintenance Management. Address risk management issues specific to the asset group.




9. Operational Plans Operational plans, including the rolling works programs, will meet requirements of the following planning horizons: Provide indicative costs for works for 20 years ahead for long-term financial planning; Provide cost estimates for the forthcoming 3 to 5 years, to be outlined in City Plan; and Provide detailed costs for the Annual Budget, to be outlined in the Council’s Annual Business Plan.




3. Background 3.1. City of Banyule

Banyule City Council is located between 7 and 21 kilometres north-east of central Melbourne and is made up of 21 suburbs. The City covers an area of approximately 63 square kilometres and is bounded in the south by the Yarra River and in the west by the Darebin Creek.

The City is primarily a residential area. While separate houses dominate, increasing numbers of semi-detached houses, townhouses and units are being built. Retaining the neighbourhood character of these residential areas is very important to the local community.

Banyule also has a number of commercial centres, the largest being the Greensborough Principal Activity Centre and the Heidelberg and Ivanhoe Major Activity Centres. There are significant industrial areas in Heidelberg West, Greensborough/ Briar Hill and Bundoora, and a number of large institutions such as the Austin and Repatriation Medical Centre and Simpson Army Barracks.

3.2. Council Managed Assets Banyule City Council is custodian of and manages an extensive range of community assets, including land, valued in excess of $800m to facilitate delivery of its services to the community. The efficient and effective management and operations of these assets is vital in the current competitive environment faced by the local government sector.

Council’s performance is measured on its ability to effectively manage its assets and provide a high level of customer service to its community. The State Government also benchmarks Council’s performance and funding requirements against similar municipalities based on data supplied by Council. Hence it is critical to have an asset management strategy and appropriate information systems that provide accurate data to adequately monitor and report on the condition and performance of assets and provide for informed decision-making.

Typical Council infrastructure assets are found in: the road & street network, including footpaths, kerb and channel, culverts,

traffic facilities, guard rails, street furniture, bus shelters, street lighting, street name & regulatory signs, and car parks both on and off-street;

stormwater drainage systems; buildings and facilities of various types that provide a focus for services, such

as administrative facilities and community halls; parks and recreation facilities, including active and passive recreation areas; plant and equipment, including Workshop and Depot facilities to undertake

specific services; Information technology networks, including computer and telecommunication

systems.

There is increasing demand for resources to provide the various services for which Council has a statutory responsibility as well as those services that the community expects it to provide. At the same time, the ability to adequately fund these assets and services is becoming increasingly difficult due to competing demands.

As custodian of these assets, Council is responsible for funding their maintenance and upkeep at a level of service that satisfies both the safety and amenity requirements of the community. Council needs to balance this funding of upkeep with increasing the asset base as a result of community demand and natural growth of the area. The means by which Council achieves proper management of its assets is ‘asset management’.



By better understanding the extent and condition of its infrastructure assets, Council is able to more effectively plan and fund its works programs. As a consequence assets will be maintained to an acceptable standard, which will enable Council to competently deliver services to the community.

As a consequence Council Insurers are more sensitive to risk exposure and this will inevitably impact premium payments. Documented management of higher risk assets (eg roads, footpaths, playground equipment) is now becoming a requirement to minimise risk exposure. This documentation involves defining the maintenance standards, levels of service including tolerance levels for the various defects, inspection and condition assessment regimes and assists council with its defence in litigation provided it is meeting the standards it has established.



4. Current Status of Banyule’s Infrastructure Assets 4.1. Asset Stock

Council’s infrastructure assets include: the road & street network; bridges (road & pedestrian); stormwater drainage systems; buildings and facilities of various types that provide a focus for services; parks and recreation facilities;

During 2005, an assessment was undertaken of the condition of key groups of assets, through the MAV Renewal Gap project as part of the Step Program.

Financial modelling enables predictions for future funding requirements to be made based on available data and recent trends in asset life expectancies, condition, replacement costs, etc. Modelling outcome is very much dependent upon the accuracy of the input data and how assets are grouped for modelling. It is not a precise process but does provide a degree of certainty in the outcomes.

The following table is a summary of Banyule Council’s asset stock taken from the Renewal Gap Project worksheets. Table: Banyule Asset Group Inventory

Asset Group Sub-Group Quantity Unit Current

Replacement Value

Roads & Streets Pavement (Sealed Link Rds) 403,555 sq.m $13,630,705

Pavement (Sealed Collector Rds) 320,596 sq.m $10,747,081

Pavement (Sealed Access Rds) 3,227,140 sq.m $88,237,844

All Gravel Resheets 13,200 sq.m $118,800

All Asphalt Surfaces 3,793,282 sq.m $63,347,048

All Spray Seals 130,492 sq.m $760,714

Concrete Footpaths 1,451,953 sq.m $54,744,977

Other Footpaths 27,920 sq.m $1,317,675

All Kerbs 1,156 km $54,463,872

Bridges Bridges/Major Culverts Long Life 9 No. $5,387,000

Bridges /Major Culverts Short Life 1 No. $20

Stormwater Storm Water Pits 28,240 No. $24,814,980

Storm Water Pipes 6,666 km $65,418,972

Buildings Build Structure - Long life 258 No. $100,678,901

Build Structure - Short life 19 No. $2,233,000

Building Roof 277 No. $7,350,850

Build Mechanical Services 118 No. $9,636,700

Building Fit Out 277 No. $22,052,550

Recreation Assets Playground Equipment 143 No. $3,723,700

Sporting Ovals 44 No. $5,042,500

$533,707,889 NB: This figure does not include land value



4.2. Condition Assessment The condition rating ascertained by the MAV Asset Renewal Funding Gap project is considered to be ‘indicative’ of the condition and funding requirements of Council’s assets. However as asset management plans are developed for each asset group, the inventory of asset stock will be reviewed and reconciled into the relevant database for that asset group. In addition condition assessments will also be recorded that are derived from actual physical inspection and assessment of each key asset component.

The model used a series of default degradation curves which have been supplied for the 20 asset sets. The Road asset default condition distributions and degradation curves have been developed via an analysis of condition data for around 30 councils and are considered to be of a high quality.

It should be noted that modelling charts are prepared on the best available information at the time and are subject to change as more or updated information becomes available.

The following two charts are examples from the modelling. Chart – Concrete Footpath Condition Assessment

0.0

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PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE

% of Assets Within Cond 0.00.00.01.03.012.019.029.024.07.05.0

109876543210

This chart shows the distribution by percentage of the asset base within each of the asset condition ratings. These ratings are zero when an asset is new and in perfect condition through to condition 10 when an asset has no remaining value.

This condition spread will generally come from another program source such as a full condition inspection of the asset base or an analysis of the age profile of the asset base. The SMEC PMS will provide this information when it is fully populated with data.

Once the present condition distribution of the asset base is known, a degradation curve is applied to the asset set on the basis of how long you expect an asset to remain within each of the 10 condition ratings before it will jump to the next highest rating. The program uses as its variable the time in years that an asset is expected to remain within a given condition before it rises to the next highest condition rating. But the user input to deliver this detail is expressed as the % of the total asset life expected within each condition rating along with the total expected asset life.

The following table is an example of the degradation curve for a concrete footpath.




Chart – Concrete Footpath Degradation Curve

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Asset Life in Years

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Life in Years at the start of Cond Range

The following table is not definitive but does provide a guide as to condition assessment prior to detailed assessments being conducted. Table: Banyule Indicative Asset Condition Assessment

Asset Group Intuitive Condition

Assessment & Comments

Confidence in Condition Data

Roads & Streets Very Good Bridges Good Stormwater Sound - continuing Buildings Good Recreation Assets Very Good

4.3. Levels of Service One of the key basics of service delivery to the community is to provide the levels of service that the current and future community want, and are prepared to pay for, in the most cost effective manner. This is also applicable to the infrastructure and other assets utilised for the delivery of these services. Sound asset management practice also involves affordable costs.

The ‘level of service’ is the defined service quality for a particular activity or service area against which service performance can be measured. It provides the basis for the life cycle management strategies and works programmes identified within the Asset Management Plan.

Levels of service can be broken down into three basic aspects: Function – its purpose for the community Design parameters – what is required of and from the structure itself Standards and performance levels- the delivery of the service

Levels of Service are determined from the public consultation process and customer satisfaction surveys. They reflect the strategic objectives of Council and are based on:

Customer expectations for quality of service and willingness to pay Legislative requirements; environmental standards, regulations and

legislation that impacts the way assets are managed


Council’s mission and objectives as stated in the strategic plan Available resources, particularly financial constraints Organisational delivery mechanisms Design Standards and Codes of Practice

All Banyule’s service level standards, the Levels of Service, have or will be developed in consultation with relevant internal stakeholders to ensure that they can be met with existing resources, both human and financial. The consultation has involved analysis of historical patterns of Customer Requests and includes complaints, defects and responsiveness. The ‘standards’ will be provided to Council for review and adoption within the asset management framework and where required publicly displayed to invite community feedback.

A measure that Council is achieving a range of service levels is confirmed in the DVC Annual Customer Service Survey which sees Council achieving consistently high scores of community satisfaction. The challenge is to determine levels of service that stakeholders can understand and therefore have a capability to input into the process. Appendix 6 outlines responses from the DVC Customer Service Survey.

Levels of service are dependent upon funding, so if Council experiences tight fiscal constraints in some of its service areas, these levels of service may not be met. As at 2006, only the levels of service (Intervention Levels) outlined in the Road Management Plan have a statutory obligation to be achieved.

4.4. Community Input

Input from the community by way of consultation and feedback plays an important role in Council understanding the needs of the community. Banyule City Council uses a number of platforms for community consultation including:

4.4.1. Consultation

• Best Value Process where benchmarking performance occurs against like Councils and service provision.

• Legislation – The Road Management Act provides for an opportunity for community input into the Banyule Road Management Plan. The process calls for submissions through advertising in the local press and The Government Gazette and adoption by Council.

• Specific project consultation - All major infrastructure works have a consultation phase with residents and other stakeholders who are affected by a project. There are a number of consultation processes ranging from extensive for new infrastructure, to notification by letter if works disrupt or affect property access.

• Capital Works. - Council’s Annual Capital Works Program, New Works and Services (NW&S), is developed with extensive community consultation. Expressions of Interest (EOI) can be submitted for maintenance, upgrade or new assets. These are called for annually and evaluated by standard criteria and are deemed as .Part A (non discretionary) and Part B (discretionary). Approval of these works occurs during the formulation of the budget and all submitters are informed if their submission is successful or not.

• Council Publications – Monthly newsletters The Banyule Banner, agendas and minutes and specific information sheets detail Council issues, works and operational activities.

It is intended to undertake specific asset category consultation as levels of service are developed through Asset Plans.



4.4.2. Assessment of Need & Function The assessment of community “need” for a new or upgraded asset should involve a process of community consultation. As well as identifying the specific needs of the community, they in turn need to be aware of issues of cost and risk.

This community consultation process also satisfies part of the legislated “best value” principle and its own best value policy.

All of the Council assets considered in this report have been established and built to provide a “level of service” of functionality to the end user. This “level of service” has been developed based on a balance of the needs and expectations of the community as users and occupiers and the Council as asset owners / managers and most importantly the ability of the community to pay for the service through rates & charges.

The community needs and expectations are balanced with industry best practice of asset management and subsequently the “level of service” for each individual asset category will be written into the asset management plan.

It is important to note that within the level of service guidelines are the criteria for “condition intervention”, based on asset preservation and risk management (see the following section). These criteria then allow the prediction of asset renewal costing based on condition or age which ever is first.

The importance of the “level of service” is that it allows the asset to be maintained and/or renewed/refurbished/replaced as required while at the same time strategically managing the allocation of scarce funding resources.

Council’s Capital Works (New Works and Services) Program which includes significant investment in maintenance and renewal of assets is developed through an exhaustive community consultation process. All projects are rigorously evaluated using agreed criteria prior to Council approval to ensure a balanced approach.

Council has the ability to analyse its Customer Requests and understand the issues that drive community expectations. The results of the analysis will be completed in detail in asset category plans.

4.4.3. Community Feedback & User Satisfaction

• Internal Customer Surveys • Customer Request – Analysis of performance eg reaction times are

also used as a measure of performance and are incorporated in Annual Reports.

• OLG Customer Service Survey results (refer to Appendix 6) • Online mechanisms - available on Council web site



4.4.4. Community/Stakeholder Expectations Stakeholder expectations for each asset category will be developed within the asset category plans. The following table is proposed to identify the issues for the following groups.

Residents Businesses Local Community Groups Visitors/Shoppers

Transport User groups Through Travellers Emergency & Service Authorities Government Organisations

4.5. Funding ‘Gap’ Analysis The funding ‘gap’ is the measure of the funding shortfall where service levels are not being provided at the specified/required level. It applies to both maintenance and renewal of assets.

Gap analysis techniques are to be utilised to measure the gap between the current and relevant quality levels of service. An example of such a technique was the 2005 Moloney Gap Modelling project established by the MAV to assist councils establish the indicative magnitude of any gaps applicable to them.

As Council’s data sets become more complete, gap analysis techniques will be introduced to more precisely measure any gap.



5. Asset Management Practices, Systems & Processes 5.1. Asset Management Practices

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 infrastructure assets.

Several areas that are vital to managing the asset include:

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: This 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.

The following chart illustrates the relationship

Corporate Data Information Systems

AssetManagement

Plans

Implementation Strategies to facilitate

service delivery

Data analysis and evaluation processes



5.2. Data Information Systems The data information systems used for the management of assets involves a combination of processes, data and software. These are applied to provide the essential information outputs for effective asset management of risk and optimum infrastructure maintenance and refurbishments.

Council currently uses the following main data information systems for recording relevant asset data information:

There are three Customer Request Management Systems in use which include Merit CRM, NOMAD & eServices CRM.

Merit CRM System captures request types for Infrastructure Maintenance, Graffiti, Older Adult Bookings, Community Safety, Pre-booked collections for Waste Management, Engineering Developments / Drainage & Traffic Engineering.

NOMAD Parks & Buildings Request System manages requests for Buildings, Parks Maintenance, Bushland Management, Horticultural Services, Tree Care & Administration.

eServices browser based CRM module manages request for Waste Management (excluding pre-booked collections), Local Laws, Cleansing, Health, Revenue and Risk.

The Corporate Accounting System utilised at Council is Civica’s Authority Financials. Some of the financial modules include General Ledger, Accounts Receivable, Accounts Payable, Bank Reconciliation, Requisitioning & Purchasing.

Council’s Geographic Information System is Exponare (MapInfo).

Council uses the SMEC Pavement Management System which captures the road network, including road surface & pavement, pathway and kerb & channel details. The system also assists with modelling which the new eServices AIM (Asset & Infrastructure Management) system does not do. For more information on AIM refer to 5.2.1.

The table below summarises the current data systems as described above:

Module System

CRM Merit CRM, NOMAD & eServices CRM Financials Corporate Authority System, Purple Octopus & Powerbudget

GIS Exponare

Pavement Management SMEC

These systems contribute to the overall management of the long term planning of its infrastructure assets in order to:

Know what and where its assets are; Know their condition; 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.

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 systems, which are briefly outlined below.

5.2.1. AIM Authority Information System Council is implementing the Civica Asset & Infrastructure Management System, AIM, as its Corporate Asset Information System.

AIM provides full lifecycle analysis of assets within an enterprise wide asset management solution and delivers cohesive processing and reporting requirements to fully meet Council workflows. The system is designed to improve the management of Council’s Infrastructure by applying best practice principles to support the delivery of services to its community and customers. The AIM system is a separate application which utilises modules within Authority & uses eServices as a medium to deliver a single consistent environment.

The main benefit of the AIM integrated model over a ‘best of breed’ product is the ability to effectively integrate with the Authority Financial Management system to meet AAS27 legislative requirements & to address Council’s infrastructure and asset portfolio as a corporate requirement set down by the organisation’s Asset Management Plan. This single database environment eliminates disparate data storage, data duplication and batch processing allowing Council to consolidate all asset information in a single location with each application module leveraging the benefits of common components designed to operate as one.

In future AIM will provide links to remote computing devices to allow updating of asset information whilst in the field environment. Civica has recently purchased a mobile computing solution from Precision Data. Precision Data has allocated two staff members to work along side Steve Carter (Civica consultant) to develop the solution. Development will only include integration to AIM. Other modules to follow include Animals & Infringements.

The table below summaries our data system plans for the future:

Module System

AIM eServices AIM Stage 1 – Fleet, Playgrounds & Roads; eServices AIM Stage 2 & 3 – Buildings, Drainage, Footpaths, Kerb & Channel, Street Furniture, Signs, Street Trees

CRM eServices CRM Stage 2 – Planning, Construction, Parks, Childrens Services, Leisure & Culture.

Financials Corporate Authority System, Purple Octopus & Powerbudget

GIS Exponare Pavement Management

SMEC



5.2.2. Financial Management System Council’s Financial Management system is the Civica Authority Financials System and its financial modules.

The Financial modules include General Ledger, Accounts Payable, Accounts Receivable, Purchasing, Bank Reconciliation, Trusts, Payroll, HR Management, Contract Management, Stores, Fixed Assets & Project/Job Costing.

The General Ledger module sits at the hub of the Authority Financial System. It controls all of the subsidiary financial modules. The GL module recognises accounts that control subsidiary ledgers. It validates that postings to these accounts can only be processed via the affected subsidiary module. This ensures that the subsidiary ledgers remain in balance with the controlling general ledger accounts.

Several electronic interfaces exist throughout the financial modules. Some include timesheet data from the Xpedite Community Programs system into Authority, Local Laws interfaces to Vic Roads & Perin Court, Australia Post downloads from the Post website & EFT data file transmission to Commonwealth Bank through their Diammond Services application.

Two other Financial systems available are Purple Octopus & Powerbudget. Purple Octopus is a reporting application developed in-house,

assisting Council with Live Cost Reports, Prior Year Cost Reports, End of Month Reports, Variance Reports, NW&S Reports and other Miscellaneous Reports.

Powerbudget is an application acquired through Chameleon Technologies to assist with budgeting. Purple Octopus and Powerbudget both link & interface with the Corporate Informix Authority database.

5.2.3. Customer Service Systems & Procedures Council uses Smart Track (Merit CRM 9) as its customer request tracking system to record customer enquiries for road based infrastructure assets (roads sealed and unsealed, pathways and kerb & channel). Enquiries from the community are received in person at Customer Service Centres, by telephone, e-mail, fax or letter.

The Merit database registers details of the enquiry including: Request reference number Date of request received Originator of request – name and address Request/repair details – location, type, size, quantity Description of the actual maintenance works Inspection/assessment date Completion/repaired date.

The Customer Request System enables the response times to be monitored for inspections and that appropriate action is undertaken.

It should be noted that ‘actioning’ a request doesn’t necessarily mean that the request has been fulfilled but simply that appropriate action has taken place.

Appropriate action may well mean that an asset defect, such as a damaged pathway has been inspected and:



repairs are straight-forward and have been implemented as soon as a work crew is available - the appropriate action in this case is when the repair work has been completed; or

repairs are significant and need to be undertaken on a special works program along with a number of similar works and the site has been made safe until such time as repairs are undertaken - the appropriate action is when the repair work has been listed on the future works program not when it has been completed; or

the defect was found not to warrant any remedial action at that stage as it was below specified intervention levels - the appropriate action in this case is when the decision is made that no repair work is warranted.

Whatever the response, it is noted against the original request.

5.2.4. Geographic Information System (GIS) Council currently uses Exponare for enquiry which is software specifically designed by Ersis Australia for Banyule City Council. Exponare does not let you create layers or modify existing layers. The property layers link to the Corporate Authority Informix database. All property related queries search the Authority database & display the result through Exponare. Exponare links directly with Civica’s Authority system.

In the future Banyule will be moving away from Exponare to Mapinfo’s latest instalment Exponare. Exponare builds on its predecessor and increases the functionality & user-friendliness to create a more powerful GIS solution.

Exponare’s enquiry module also allows integration into Council’s Corporate System. There are two separate levels of integration. Firstly, client based via Authority (or the 4GL programs) and secondly browser based via eServices. For mapping layers to function in AIM amongst other Authority modules, information has to pass between Authority/eServices & Exponare.

For eServices (the new browser based product), Mapinfo have not yet provided information to Civica with any planned work for two way integration of their Browser product. The integration is one way from eServices to MapInfo’s Exponare Public. For Authority (client based product), the integration relies upon an existing Informix table aualmapl. In order for information (ie. layers) to be passed both ways between Authority and Exponare, two additional fields were required and this work has been completed by Civica.

In future, integration enhancements will be required by Mapping Vendors (ie. MapInfo) to read these new fields and provide necessary ‘layered’ spatial information. Therefore the functionality available in 2006 is only one way integration from Authority to Mapinfo’s Exponare.

5.2.5. Road Pavement Management System (PMS) In 2005, Council changed to the SMEC Pavement Management System which is utilised by a number of municipal Councils in and around Melbourne. SMEC replaced the RoadPak Pavement Management System (PMS) that was the data management tool for the road network, including road surface and pavement, pathway and kerb and channel.

With a PMS, visual structural defect surveys are undertaken on a cyclical basis and the results are recorded against the relevant road section. The



PMS analyses the road condition to determine priority based periodic maintenance activities (such as re sheets and reconstructions) for roads.

Experience showed that the RoadPak system was inadequate in delivering the type of modelling required by Council for effective management of the asset and its use was abandoned. The SMEC PMS does the above and also has the required modelling capabilities.

The above systems utilise key base asset data for any road asset information. This base data is considered sacrosanct and its integrity must be preserved otherwise any information obtained can quickly become unreliable and therefore worthless. This base data set includes:

1. SMEC Pavement Management System Data is the corporate database for all road assets.

2. Road Register is to be derived from the SMEC PMS Database as a select set of roads (namely those under Council's responsibility) as opposed to all roads including VicRoads, roads in private subdivision, etc. which may also be listed.

3. Road Hierarchy is determined by the Road Register as documented in both the Road Management Plan & Road Asset Management Plan.

4. Road Management Plan, RMP, a statutory plan under the Road Management Act 2004, is derived from the Road Asset Management Plan, RAMP. NB: Version 1 of the RMP was developed in advance of the first RAMP as a convenience to meet tight timelines surrounding the loss of non-feasance. Future versions will follow the RAMP.

5. Asset Valuations as per the agreed corporate process.

5.3. Systems Functionality The main functional requirements of these asset management systems are summarised as follows:

Records and stores attributes to identify individual asset clearly; Defines relationship (components) within and between assets; Enables customisation including description fields; Provides specialist databases (interfaces) to cover unique attributes or

specific applications; Capital, maintenance and condition based reports (either customised or

delivered by manipulating the database); Export selected data; and Allows for a range of accounting treatments.

This will assist in determining asset information for long-term capital and maintenance funding requirements to ensure that assets do not fall below their nominated minimum asset condition rating.



5.4. Asset Management Plans The relevant Asset Manager(s) for each asset group is to develop a specific Asset Management Plan that will outline how that asset group will be managed.

The Asset Management Plan is a written representation of the intended Asset Management programs based on the organisation’s understanding of customer requirements, budget and resources, existing and projected networks, asset conditions and performance. It acts as a vehicle for communication with customers and other parties with an interest in the organisation’s AM activities.

The level of detail contained within the Asset Management Plan will vary depending upon the complexity of the asset group under consideration. The Asset Manager must therefore determine the appropriate level of detail based upon the broad corporate objectives.

In general, the Asset Management Plan will: • Describe the asset (physical, financial), the objective/purpose/function of

the asset (or each key component of it) • Define the service levels • Define the intended time frame (lifecycle) of the asset or key components,

together with measures, both upward and downward, as to how well the objective is being met.

• Provide information asset condition, operating and maintenance costs • Outline how that asset group will be managed in terms of usage,

maintenance, renewal and/or disposal. • Define Rolling Works Programs for both Infrastructure Renewals and

Maintenance Management for periods of three to five years • Recognise the decline in service potential • State assumptions and confidence levels • Outline an improvement program • Identify key performance measures • Be prepared by someone who ‘knows the business’ • Have the firm commitment of the organisation • Be reviewed regularly

AM plans are dynamic documents and therefore must be updated periodically to be effective as a management tool and reference document. The plan should reflect changes in objectives/policies, customer expectations, improvements in AM systems or data in general. The prime guidance used for development of Council’s Asset Management Plans is the International Infrastructure Management Manual (IIMM) developed jointly by the NZ National Asset Management Steering Group and the Institute of Public Works Engineering of Australia. This manual is highly recognised around the world as one of, if not the leading Infrastructure Management Manual for public works authorities such as municipal councils. In Victoria, the MAV, DVC and Auditor General are ‘driving’ the process.

The following diagram sets out the preferred structure of asset management plans to conform to International Infrastructure Management Manual. This is the basic format most commonly used within local government in Australia.



Diagram: Structure of an Asset Management Plan

Rolling Works Programs for both Infrastructure Renewals and Maintenance Management for periods of at least four years are to be produced, to be utilised for financial strategy developed in City Plan. Asset management plans must show how much the Council needs to be spending each year in each asset group.

Measures of performance are to be both upward (strategic) and downward (operational). Upward measures indicate how effectively Council is performing at the corporate level in meeting its agreed levels of service within the particular asset group. Downward measures indicate whether the individual Asset Manager is meeting the specific requirements of the Management Plan.

5.5. Key Assumptions for Asset Management AM requirements are specified in a number of documents including Australian Accounting Standards, Design Manuals, various relevant Guidelines, Council’s AM Policy, etc. The following key assumptions provide a summary as guidance for those developing AM Plans and the funding strategies that arise from them:

1. “Lifecycle” approach to determine budget requirements for all infrastructure assets.

2. Regular asset condition assessments undertaken at intervals as outlined in each asset management plan.



3. The assessment of any new asset to be provided must account for risks associated with the type of asset proposed. For instance with footpaths, some aesthetically pleasing designs can be prone to litigation from trips and have high maintenance costs as a consequence even if structurally sound.

4. Life-spans for various assets and groups of assets to be determined from local experience and also by benchmarking with other councils in a similar position (usage patterns, weather and other issues that may impact on the life of the asset).

5. Where detailed information is not available, estimates to be based on best aggregated information from other sources.

6. Service levels to be ascertained at a sustainable practical level and by reference to community requirements, drawing on experiences elsewhere if information is not known locally.

7. Until determined otherwise by Council, it shall be assumed that the function of an infrastructure asset will be maintained in perpetuity.

8. Depreciation is the systematic allocation of the depreciable amount (service potential) of an asset over its useful life. Depreciation is not a measure of required expenditure on assets in any given year.

9. Depreciation can only be used as an average guide of renewal spending required across a network, where there is no better information available to take into account peaks and troughs in renewal needs.

10. For large and complex assets, such as the road network, drainage system, recreation facilities, five-year ongoing programs (asset plans) of rehabilitation/renewal works will be developed from which annual core programs of works will be prepared;

11. Long-term capital works programs are to be reviewed no less frequently than every three years to ensure that they are in line with Council’s overall strategy.

12. Prior to any major refurbishment or rehabilitation of an asset, the following assessment needs to be undertaken:

that there still a need for the asset (short and long term) legislative requirements are being met opportunities for rationalisation opportunities for multiple use capacity to generate income ability to improve energy efficiency safety issues to be addressed future liability including ultimate retention/disposal operability and maintainability issues

13. Council’s Long-term Financial Strategy will have as a basis for its formulation the financial requirements of arising from Asset Management Planning.

14. Asset Valuation should reflect a condition based assessment wherever practicable;

15. Where it is proposed to create a new asset, the business case submitted shall include a reasonable assessment of life-cycle impacts (including its eventual decommissioning or disposal) as well as ongoing operational and maintenance costs which will need to be factored into future budgets.



16. The level of renewal funding required will be determined according to asset management plans, taking into account asset age, condition and service level requirements.

17. Depreciation can only be used as an average guide of renewal spending required across a network, where there is no better information available to take into account peaks and troughs in renewal needs.

18. The annual asset renewal budget is to be managed in order to ensure that, as much as is practicable, there is an equitable distribution of projects to meet needs across the organisation.

19. Asset management also includes the physical monitoring of the asset. A physical verification of assets will be undertaken on an agreed timetable.

20. Asset performance is also to be monitored at periodic intervals, to ensure that it is meeting the intended function and/or the service being provided is continuing to be utilised by the community (ie the impact of demographic or other changes have removed the need for the asset or the eservice being provided).

5.6. Budgetary Framework for Asset Management The traditional local government method for determining the annual budget allocations has been to view the budget expenditure items as either recurrent operational costs generally treated as ‘non-discretionary’ or capital expenditures, generally ‘discretionary’. The following table illustrates this: Table 5.6.1 – Traditional Local Government Budget Process

Recurrent Funding Capital Funding

Maintenance & Operations Refurbishment, Renewal, Upgrade and New

Potholes, grading of roads Footpath repairs Cost of street lighting Parks maintenance Building maintenance, servicing &

utility costs (electricity, cleaning)

Road pavement widening K&C/footpath replacement Major park reconstruction Building extension New facility

“Non-Discretionary” “Discretionary” The City of Banyule has recognised the shortcomings of this and has adopted the process in Table 5.6.2 to provide for better ability to fund the management of Council’s infrastructure asset base into the future, which is the basis of strategic financial planning. This process utilises four rather than the traditional two key funding areas. The first two “Non-Discretionary” areas are in recurrent and capital. The capital commitment is to fund the ongoing asset refurbishment and renewal requirements to ensure longevity of council’s assets.




Table 5.6.2 – Asset Management Budget Process

Recurrent Funding Asset Management Capital Consequential Recurrent Costs

Maintenance & Operations

Refurbishment and Renewal New/Upgrade Upgrade and New

Potholes, grading of roads

Footpath repairs Cost of street lighting Parks maintenance Building maintenance,

servicing & utility costs (electricity, cleaning)

Road reconstruction K&C/footpath

replacement Oval resurfacing Building renovation (but

not upgrade) Also includes renewal ‘Gap’ funding

Road pavement widening

New footpaths Major park

reconstruction Building extension New facility

New assets Additional maintenance

load Upgrades More or less

maintenance Building maintenance,

servicing & utility costs (electricity, cleaning)

“Non-Discretionary” Recurrent

“Non-Discretionary” Capital

“Discretionary” Capital “Non-Discretionary” Recurrent

It is essential to show, when council considers its discretionary capital expenditures for new and upgraded assets, is the consequential imposition of recurring operational and maintenance costs that will occur once the new or upgraded asset becomes operational. This consequential additional cost is “non-discretionary” as it will be incurred if the new asset is provided.

As new and upgraded projects are brought forward for consideration with the annual budget, they will also have an assessment of the recurrent costs presented to Council as part of the overall project cost projections. Table 5.6.3 outlines total project capital costs and also establishes the consequential maintenance and operations costs. Tables 5.6.4 & 5.6.5 indicate income sources.


Table 5.6.3 - Capital Works Project Cost Break-up

Asset Capital Works Category Line No.

Bus. Case No.

Project Description Project Advocate

Total Project Capital Cost Renewal Upgrade New

Annual Consequential Maintenance

Cost

Annual Consequential

Operation Costs

TOTALS

Table 5.6.4 – Capital Works Funding Sources

Capital Funding Sources

Project Total Income Specific Purpose /

Tied Grants Special Rate/

Charges Other

Specific Contribution

R2R (Normal Entitlement)

R2R (Supplement

1 off)

Reserves (Specific Purpose)

Rates/Grants

Total for 2006/07

Table 5.6.5 – Consequential Recurrent Budget Funding Sources

Recurrent Budget Recurrent Budget Funding Sources Total

Maintenance Operations Rates Hiring Fees Rentals Grants Other

100%



The Council needs to use the ten-year planning time now to bring about changes that will minimise the effect of asset renewal on the community.

The gap in the current level of expenditure and the anticipated expenditure in the future may need to be funded by:

• Accepting a lower level of service • Rationalising assets and reviewing growth strategies • Reducing costs by more effective asset utilisation, operations and/or

maintenance • Demand management • Non-asset solutions • Increasing revenues by user charges • Creating renewal reserves

Council has adopted a four year budget cycle as from 2004/05 and established a 'short term' asset management funding model for infrastructure assets. This initiative has been noted in the Internal Audit Report for Infrastructure Assets, Jan 2003.

The capital budget process breaks capital works proposals into two parts as follows:

PART A activities: Works required to retain an asset at the required level of service. This includes asset renewal works.

PART B activities: Works that increase the service capability of the asset by upgrading or expanding it.

The Department of Infrastructure defines these categories as follows:

• Renewal – Extending the functionality of an asset by piecemeal replacement of individual components as they age or become obsolete. Ensuring that ratepayers continue to receive the benefits of existing assets. Capital investment in renewal extends the period of service potential but does not change the total capital replacement value; thus it does not increase the size of the asset portfolio.

• Upgrade – Investment in new assets designed to improve the type of service provided to existing ratepayers. For example, widening the pavement and sealed area of an existing road, building a grandstand at a sporting facility, or the provision of any new service to existing ratepayers.

• Expansion – Investment in new assets designed to extend the same standard and type of service currently provided to ratepayers to a greater number of ratepayers, eg. extending a drain or road network, or the provision of standard facilities in a new suburb. Extension is a function of population growth.

This budget categorisation will assist the Council to: Identify renewal funding necessary to meet future requirements Identify and plan for consequences of the capital investment decisions

made Understand the implications on future renewal liability, maintenance and

operations costs as a result of the renewal, upgrade or expansion decision made.

Long term asset funding models will be established in the development of individual Asset Category Plans. These models will look at funding models over a period of 25 to 50 years and will identify 'potential' peak periods in infrastructure funding requirements.



Life cycle asset management planning focuses on management options and strategies that consider all relevant economic, environmental, social and physical consequences, from initial planning, procurement, through the entire ‘useful’ life of the asset until disposal or it is retired/demolished.

5.7. Asset Management Roles & Responsibilities Council’s AM Policy states that there are four (4) accountability roles to be identified with respect to each asset category. The roles, which are explained in more detail in the AM Policy, are:-

• Owner • Strategic Manager • Physical Manager • Maintenance Service Provider

Appendix 1 is a matrix outlining the roles and responsibilities.

5.8. Asset Management Role Responsibility Assignment Each Asset Management Plan is required to outline the responsibilities for the specific asset group and sub-group.

Accountability areas include strategy, service levels and operational & maintenance.

Appendix 2 identifies those Directors/Managers of Banyule who should be accountable for the asset management roles of Strategic Manager, Physical Manager and Maintenance Service Provider for each asset category.

It should be noted that, for Banyule, in most cases where an external user of an asset is involved under a formal arrangement the role of the physical manager is sometimes shared with the strategic manager. Under the terms of the formal arrangement the user can be made responsible for some of the asset maintenance activities. In these instances it is the role of the Strategic Manager to manage these activities. However the Physical Manager will still have responsibility for ensuring that the asset is maintained at a basic standard.

5.9. AM Goals for Each Asset Group Appendix 5 sets out the goals, customer requirements and legal/regulatory requirements for each of the asset groups.



6. Asset Management Strategies 6.1. Long-Term Strategies

Column 1 in the following table outlines the strategies for future vision while the adjoining column outlines the current status. Actions to progress the vision are outlined in City Plan and each Annual Business Plan.

Future Vision Current Status 1. Sustainability of management of assets

All infrastructure assets are to be managed in a manner that ensures they can sustainably provide the specified “levels of service” necessary for the overall benefit of the community.



Council’s AM Policy requires community awareness. Community Consultation process currently consists of “Best Value’ consultation for individual services.







6. AM Responsibility Assignment Matrix The responsibilities and accountabilities of nominated Asset Managers will be fully defined. A Responsibility Assignment Matrix will identify and allocate these responsibilities for the various asset groups.


7. Asset Management Plans Each key asset group is to have an Asset Management Plan, the development of which has been overseen by the relevant asset manager. Each Asset Management Plan will: Outline how that asset group will be managed in terms of usage,

maintenance, renewal and/or disposal. Provide information on current asset stock, its function, condition,

operating and maintenance costs and utilisation. Define Rolling Works Programs for both Infrastructure Renewals

and Maintenance Management. Address risk management issues specific to the asset group.




9. Operational Plans Operational plans, including the rolling works programs, will meet requirements of the following planning horizons: Provide indicative costs for works for 20 years ahead for long-term

financial planning; Provide cost estimates for the forthcoming 3 to 5 years, to be

outlined in City Plan; and Provide detailed costs for the Annual Budget, to be outlined in the

Council’s Annual Business Plan.




6.2. City Plan Strategies City Plan 2006-2010 has several key elements that impact asset management:

Council is committed to ensuring that Banyule’s physical assets are sustainability managed for the overall benefit of the community. In conjunction with this Asset Management Strategy, an Asset Management Policy has also been developed and Asset Working groups established (which include Council representatives) to assist in the implementation of corporate asset goals.

Appendix 3 outlines the AM strategies, priorities and actions in Council’s City Plan 2006-2010 and its 2006/07 Business Plan.

Strategic Resource Plan – details the financial & non-financial resources required for the next 4 years, to achieve the Council’s strategic objectives. It is an attachment to City Plan.



7. Strategy Implementation Measures 7.1. Implementation Actions

The following are specific actions that are necessary to exercise satisfactory implementation of the Council Strategy for all asset groups.

Action Deadline Resource

3. Asset Information Systems to be fully integrated The following systems need to be integrated

AIM Authority (main corporate database) SMEC Pavement Management System

4. Asset Management Plans The following AM Plans to be completed:

Road Network AM Plan Stormwater Drainage Playground Equipment & Playgrounds Street Trees Buildings & Facilities

13. Recurrent Expenditures Review recurrent expenditure on asset maintenance based upon the established service delivery criteria to establish if over- or under-servicing exists.

14. Asset Condition Assessments Develop a process for regular condition assessments, at intervals appropriate to the asset group, and ensure that funding for this is recognised in the budget

15. Provision of new assets Ensure a thorough investigation is undertaken to establish the real need/function, alternative options and associated risks

16. Road Management Plan Implement Council's Road Management Plan to meet the legislative requirements of the Road Management Act.

17. Data Capture Develop and implement a new integrated approach to data capture and asset inspections

18. Strategic Linkages Further develop the links between strategic asset management and routine asset maintenance activities.

19. Continue to implement asset based technology solutions linking with corporate information systems.

20. Continue to focus on asset preservation, sustainability and renewal rather than asset creation.

21. Continue to develop 4-year budget funding cycles to ensure sustainable and consistent asset management.

22. Ensure Council’s asset portfolio is strategically assessed to continue to meet the needs of the Community



7.2. Acquisition of New Assets & Acceptance Standards Council can acquire new assets by the following means:

• Existing assets handed over, or taken over from other statutory agencies or the private sector with or without ongoing funding support;

• Purchase of existing assets from the private sector by Council to fulfil a Council provided service;

• Creation or purchase of new assets by way of Council’s own works programs or purchasing initiatives.

• Handing over of new assets created by a developer in new subdivisions that once accepted by Council will have an ongoing impact in terms of maintenance and renewal responsibilities.

When new assets are created, either by Council or a developer, that are to place an ongoing asset management responsibility on Council, Council ensures that standards of those new assets are acceptable. These standards will either be consistent with Council’s basic standards that minimise ongoing financial commitment or be higher than normal and impose additional financial demands. Where higher standards are imposed, the additional funding requirements must be established before final approval is given to funding the project so that suitable plans can be formulated.

Where acquisition of assets by way of hand-over of subdivisions, for instance, are proposed, it is necessary to ensure that due recognition is given to the long term impact of such acquisitions.

7.3. Disposal of Assets

Consideration of disposal of assets is initiated when the economic life of the asset has expired, when its service specification is no longer relevant (i.e. technical obsolescence), when the need for the service provided by the asset has disappeared.

The Asset Management Plan is to indicate the stage at which the asset should be considered for disposal. This may not necessarily be in years and could be for instance by way of service limits outside which the asset is no longer effective.

Decisions to dispose of an asset require thorough examination and economic appraisal. Like acquisition decisions, they need to be taken within an integrated planning framework that takes into account service delivery needs, corporate objectives, financial and budgetary constraints and Council’s overall resource allocation objectives.

Disposal options include alternative use, rental, sale/trade-in, sale & lease-back, demolition and sale as scrap, and for roads the recycling of materials into other uses. For particularly old assets, such as plant & equipment or some buildings there may be a heritage value that impacts on disposal to maximise community benefit. Where possible these issues should be considered as part of the initial asset acquisition strategy.

Asset disposal terminates control of a particular asset but may generate the need for a replacement to support the continuing delivery of services. Disposal is therefore a crucial component of the asset management life cycle.

As disposal of infrastructure assets is not a common occurrence, the most appropriate responsibility assignment and process to be utilised should be assessed at that time. Disposal of an asset of any significance should receive Council approval to ensure proper custodial protection of the community’s investment.



7.4. Asset Recording, Valuation and Reporting So that Council can make informed decisions about the assets it owns or controls, there is a need to have ready access to information. It is imperative that asset data is accurate for valuation, maintenance and reporting purposes. This information will enable decisions to rehabilitate, modify, find alternative uses for, or dispose of assets are soundly based. It will also enable Council to meet its statutory reporting requirements.

• Asset Recording The Asset Accounting Policy provides guidance to staff in distinguishing between Capital (Asset) Expenditure and Recurrent Expenditure. It also elaborates on the management of assets controlled rather than owned by Council. Where Council controls an asset in lieu of directly owing it, these assets and values are to be recorded in Moloney Asset Register. Control being defined as where Council has the capacity to regulate access and use of the Asset and where Council controls the majority of the risks and benefits relating to the asset.

• Valuation Method Council applies the principle of “Fair Value” or “Cost” as its valuation method for its assets.

Fair Value may relate to an asset’s replacement value, market value or cost, whichever is appropriate for the particular class of assets under consideration. Valuation methods for respective classes of assets are detailed in Council’s Asset Accounting Policy.

Replacement Value is the cost to Council if it was deprived of those assets. That is the cost to replace the service potential of those assets in their current form.

Market Value is the value at which two willing parties would exchange at arms length, wherein the parties are acting knowledgeably, prudently and without compulsion.

Cost is the purchase price or construction and installation costs of an asset.

• Asset Revaluation Council must comply with regulatory requirements and in this regard Accounting Standard AASB1041 (“Revaluation of Non-Current Assets”). It must regularly revalue its non-current assets and provide relevant asset values for making asset management decisions. Assets can be revalued at any time, but must be revalued where there is a material difference in the carrying value and the value at balance date i.e. 30 June. When assets are revalued the complete class of asset is to be revalued.

The principle risk associated with this valuation strategy is if values change faster than expected. If this occurred then the particular class affected would require an earlier than scheduled revaluation. This risk will be minimised by the annual review of the asset class values for currency.



7.5. Data Collection & Input into the Asset Information System The relevant asset manager is responsible for determining the minimum information requirements, and will ensure only data that is needed to facilitate management of the particular asset group will be captured. This will be identified in the Asset Management Plan for that asset group.

Data collection and input will be the responsibility of the relevant Asset Manager and must satisfy both corporate and operational requirements and the Asset Accounting Policy.

Data collection also incorporates an obligation to maintain that data during its time in the system. As the data is used to enhance management capabilities of that asset group then the cost of its collection once the system is established is attributable to the recurrent budget for that asset group. It is the responsibility of the Asset Manager to ensure that the recurrent budget is adequate. This also serves the purpose of encouraging the collection of only the level of data really necessary for competent management.

Data capture and maintenance will be conducted in a structured way to ensure data is collected cost effectively to achieve the necessary outputs required by the organisation.

Data will be periodically audited to ensure compliance with the principles contained within this document.

The data required will be categorised as follows: corporate management needs, business units management needs, operational and maintenance needs of individual assets,

Sources of data include: plans, maps, and textual information in electronic or hard copy format the assets themselves ( ie. stock take/field data capture) Financial asset registers and expenditure reports

Data will also be generated as transactions on assets occur, and associated procedures, controls and audit trails are to be developed to maintain the integrity of this information.

7.6. Priority of AM Plan Preparation The following is the order of priority in preparation of AM Plans:

Road Network (Scheduled for August 2006)

Stormwater Drainage

Buildings & Facilities

Playground Equipment & Playgrounds

Street Trees




8. Risk Management 8.1. Risk Management Policy & Guidelines

Council adopted a Risk Management Policy & Guidelines document in December 2000, updated in September 2004 with a further update due for adoption in the latter half of 2006/07.

As part of its organisational role, Council’s Asset Management Committee is to ensure that Risk Management principles are applied at all times in line with Banyule’s commitment to strong and sustainable asset management.

The industry standard relevant to Council’s risk assessment process is the Australian & New Zealand Risk Management Standard AS/NZS 4360:2004.

Each of the Category Asset Management Plans (ie Roads, Urban Drainage, Buildings & Facilities, etc) will outline typical risks specific to that asset group. These will also be reflected in Council’s Corporate Risk Register, which is being revised and updated in 2006/2007. The following chart shows the overview of the risk management process as outlined in the above Standard which is the basis of Council’s process. Council’s Risk Model

8.2. Risk Assessment

Risk Management has become a significant driver of Asset Management including the Road Asset Management Plan, due to Council's exposure to liability since the non-feasance rule was abolished. Council has defined the framework for managing risk and has adopted a model in the Asset Management Strategy.

It should be noted that risk should not be a main driver - reduction of risk is an outcome of sound asset management practices. Council's Risk Management processes and procedures have been under continuous improvement and development through meeting the standards and requirements outlined by its insurer, Civic Mutual Plus (CMP). CMP liability assessment process examines the ability of Council to better verify actions in compliance with the elements of the assessment – that is, improved records and documents, and proof that a system is in place and that standards are being adhered to and/or implemented within current legislation, particularly with respect to asset management.

Council is audited annually by CMP ensuring continuous improvement of inspection systems and repair processes.

Monitor Control & Treat Risks

Assess Risks

Analyse Risks

OUTPUT Risks managed in accordance with legislative andcorporate policies and standards

OUTCOME- Minimised risk Exposure -Reductionin insuranc

e

premium paid -Resident/ staff satisfaction

INPUT - City Plan - Business Plan - Corporate Policies and Strategies - Past Performance Measures - Legislation - Industry Standards - Customer Feedback - Claim History - Audit Committee

Identify Risks

What are the risks?

What is the likelihood? What are the consequences?

What are the priorities?

How do we treat the risks?

How are we going?


8.2.1. Risk/Hazard Identification The only practicable means of readily identifying existing hazards is by undertaking regular asset inspections. This process should enable significant hazards to be identified and remedied in advance of possible injury. Each Asset Management Plan should establish the appropriate inspection regime and criteria for that asset group, in response to identified risk exposures.

Safety audits will be undertaken where specific risks (potential safety deficiencies) are identified.

Defects that are established during the programmed inspection process must be recorded by the inspectors. Remedial work is to be programmed based on the level of risk and/or intervention levels.

Risks and hazards are also identified through the Customer Request System. The CRS is an activation mechanism to address hazards that arise or are identified between programmed inspections, and generally originate from residents’ contact with Council. Each specific asset management plan, such as the Road Management Plan, should define responsive hazard management processes (eg intervention levels, response times, etc).

8.2.2. Risk Criteria & Consequences The consequences of a risk event occurring may impact in a number of key elements that will have a negative affect upon Council and its operations. These elements and the magnitude of the consequences are outlined below:

Financial Impact - 3rd party damages or financial loss incurred as an outcome of a risk occurrence;

People – public health and safety issues; Natural Environment – negative environmental impact; Social/Cultural/Heritage – negative impacts to these important

community aspects; Corporate image – probity, political and economic impacts arising

from the event.

Legal – actions that may be taken against Council and its officers for breaches of regulations.

The consequences are a measure of the degree of failure. The table below illustrates the specific consequence magnitudes. The risks are rated from Insignificant through to Catastrophic. The table takes the broad qualitative measures of AS/NZS4360 (as outlined above) giving them a dimension that is relevant to Council’s areas of responsibility.

The financial consequences are based on the Council’s ability to pay or bear the loss and therefore relate to the impact on the overall Rate income - not overall income including grants. The values of the cost of maintaining the asset network integrity relate directly to the values in Revenue, Cost or Liability – the ability of Council to pay, although in this case grant funds such as ‘Roads to Recovery’ may be used.

Other than for the consequence relating to revenue, which specifically relates to the size of a Council’s rate base, the other risk elements should be similar between various Councils.

When assessing Consequences, each of these issues is examined to ensure that all key risk elements have been covered.



Risk Criteria & Consequences (A measure of the consequences of Failure)

Consequence Types

Severity Level Financial

Impact Health and

Safety Natural

Environment Social/

Cultural Heritage

Community/ Govt/

Reputation/ Media

Legal

V Ca

tast

roph

ic

$10M –$100M

Multiple fatalities, or significant irreversible effects to >50 persons

Significant prosecution and fines. Very serious litigation including class actions.

IV

Majo

r

$1M – $10M

Single fatality and/or severe irreversible disability (>30%) to one or more persons

Very serious, long-term environmental impairment of ecosystem functions

Serious public or media outcry (international coverage)

Major breach of regulation. Minor litigation.

III Mo

dera

te

$100,000 – $1M

Moderate irreversible disability or impairment (<30%) to one or more persons

Serious medium term environmental effects

On-going serious social issues. Significant damage to structures/ items of cultural significance

Significant adverse national media/ public/ NGO attention

Serious breach of regulation with investigation or report to authority with prosecution and/or moderate fine possible.

II Mi

nor $10,000 –

$100,000

Objective but reversible injury/illness requiring medical treatment

Moderate, short-term effects but not affecting the ecosystem functions

On-going social issues. Permanent damage to items of cultural significance

Attention from media and/or heightened concern by local community. Criticism by NGO’s

I In

signi

fican

t

<$10,000 First Aid only, no medical treatment required

Minor effects on biological or physical environment

Minor medium-term social impacts on local population. Mostly repairable

Minor, adverse local public or media attention or complaints

Minor legal issues, non-compliances and breaches of regulation.



8.2.3. Measure of Risk Likelihood Guidance for this qualitative measure of risk likelihood is AS/NZS 4360.

Level Descriptor Description Indicative Frequency (expected to occur)

A Almost certain The event will occur on an annual basis Once a year or more frequently

B Likely The event has occurred several times or more in your career Once every three years

C Possible The event might occur once in your career Once every ten years

D Unlikely The event does occur somewhere from time to time Once every thirty years

E Rare Heard of something like this occurring elsewhere Once every 100 years

8.2.4. Risk Analysis Matrix Determined By Likelihood Level and Consequence Severity Level

Consequence Label Likelihood Label I II III IV V

A Medium High High Very High Very High

B Medium Medium High High Very High

C Low Medium High High High

D Low Low Medium Medium High

E Low Low Medium Medium High

8.3. Treating Risks 8.3.1. Action Controls

Once the risks have been assessed and rated, the most significant risks (for example, those of extreme or high risk) are isolated for treatment or control.

The following table indicates the control measure associated with the risk. However high-risk assets, such as the road network, will have intervention levels and responses as part of their Asset Management Plan.

Risk Control Very High Risk VH Immediate Action Required High Risk H Priorities action required Medium Risk M Planned action required Low Risk L Actioned by routine procedures Negligible Risk I No action required



8.3.2. Managing High Risk Works Where a job potentially has a high risk associated with it from a safety perspective, a risk assessment is undertaken to establish what the specific risks are and action plans developed to eliminate or at least minimise the potential risks.

Work Plans, Operation Manuals, Best Value documents, Service Unit Risk Analyses and OH&S processes have been developed by or on behalf of all Service Units. These form the basis of relevant work practices and procedures to be undertaken to minimise risk of personal injury, and protection of property.

8.3.3. Responding to Emergencies In an emergency situation, Council operates in accordance with its commitments documented in the Municipal Emergency Management Plan (MEMPlan). An After-Hours Emergency Service (AHES) is operated by Council. Through this, Council operational personnel can respond to emergencies at any time.

8.3.4. Contingency Planning The Directors of City Services and City Development have delegated authority to undertake works that may arise as a consequence of unanticipated conditions.



9. Performance Indicators, Monitoring & Review 9.1. Performance Indicators

Each Department with asset management responsibilities will be required to have input into Asset Management Plan and provide appropriate performance measures to indicate their level of achievement of the objectives identified within the plan.

The following AM Plan development performance schedule is to be completed and forwarded to the Director of Assets & Development by 31 December each year to enable the Director to summarise the results in Council’s Annual report. AM Plan Development Performance Schedule:

AM Plan:

AM Plan Task Status/Date Completed Comment

Detailed Asset Register

Functional Description

Community Consultation

Levels of Service adopted

Design Standards

Maintenance Specification

Risk Management Plan

Inspections regime implemented

Asset Valuation

Condition Survey

Asset Management Plan

5 Year Funding Plan

20+ year Funding Plan

Not only will each Department have its performance indicators assessed, but also the council itself will be measured in terms of its performance in providing the required resources to enable a Department to meet its agreed objectives. For instance with roads, if the council has agreed with the strategy for sealed road services, then one measurement will be the relativity of funding provided in the annual budget against funding required by the strategy. Where an asset has a long-term life, such as roads, lifecycle costing is a vital measure.

Trends can be monitored over years to allow for short-term variations to ensure that the long-term objective for that asset is met.

Infrastructure Indicators Useful indicators are: • Renewal Gap – ie the ratio of current spending on renewal to the long term

Average Annual Asset Consumption (AAAC) • Renewal & Maintenance Gap – ie the ratio of current spending on renewal

plus maintenance to AAAC plus maintenance requirements to retain asset at current service level.



The AAAC is the amount of the municipal asset base consumed during a year based on current replacement cost; divided by useful life; and totalled for each and every infrastructure asset.

The information to enable these indicators to be reported is to be obtained by the Asset Managers.

9.2. Monitoring & Review The Audit Committee will review this policy and relevant procedures every two years; the process will involve:-

Review of the Asset Management Policy; Review of the Council’s Asset Management Strategy; Review of the Road Management Plan (a statutory document) Audit and review of the Asset Management Plans as set out in the AM

Strategy; Review the outcome of independent audits undertaken of the MAV Step

performance, Insurance/Risk audits by Council’s Insurers, and for Best Value.

On-going review of the compliance with the policy, such reviews to be included in the annual report to Council.

9.2.1. AM Plan Review To ensure that each Asset Management Plan remains a useful document and relevant to the ongoing management of the asset, the following review activities will be undertaken:

Each is to be formally adopted by Council; When the current financial and service status of the asset is properly

established after a period of operating experience under the Asset Management Plan, Council is to undertake a review of service levels through a process of community consultation to determine both current and future needs of the community outlining in the process the likely financial impact of any changes;

Once any new levels of service have been determined and can be funded, they are to be formally adopted by Council;

Subsequent to this formal adoption, any significant changes to levels of service are to be reported to and endorsed by Council to ensure that councillors are fully aware of the consequences of their decision making which may have an impact on financial strategy & budget;

The Plan is to be reviewed at least every two years and revised to incorporate changes as a result of any levels of service review as well as any changes arising from AM improvement program.

Changes to the Plan need to be readily identified. The process that will be adopted for updating it is as outlined below:

(a) The initial version of the Asset Management Plan is to be formally endorsed by Council as it is a strategic planning document.

(b) Where changes are made that do not alter the technical aspects of road management (standards and specifications) and seek only to enhance the information provided within the Plan, the changes will be approved by the General Manager.

(c) If material changes are made to standards and specifications, a report will be presented to Council, along with a brief explanation as to why such changes were necessary, seeking its endorsement to them.



(d) In relation to numbering the document version, material changes necessitating Council approval will cause a change to the prime number of the specific AM Plan Version (eg from Version 1.00 to 2.00). Enhancements approved by the relevant Director will cause a change to the point number of the specific AM Plan Version that had previously been endorsed by Council (eg from Version 1.00 to 1.01).

9.2.2. Road Management Plan Review The Road Management Plan (RMP) is a statutory document and is related closely to the Road Asset Management Plan (RAMP). Both are to be reviewed at the same time to ensure that any changes necessary are incorporated into both documents where relevant.

Where there are changes to the RMP that require Council endorsement, the amended RMP need to be put through the process of Council endorsement, gazettal notice of public exhibition, public exhibition, consideration by Council of any public comment, then approval of the amended document as adjusted and gazettal notice of the adoption.

9.2.3. Audit Review Process Banyule’s Management System requires ongoing internal auditing for compliance issues and external auditing for legislative purposes. This is to ensure that Council's services are performing consistently and that Service Units' internal processes remain current.

In addition there are periodic audits undertaken of various asset management processes by CMP and for MAV STEP Program and Best Values audits.

Auditors seek objective evidence to determine that an activity has been carried out in accordance with specified requirements. Objective evidence must be available and witnessed to verify conformance.

Specifically where relevant to the asset group concerned the audits will assess whether: Process of collection and storage of condition information is sound; Enquiries/requests are recorded in the appropriate database in the

manner required; Each enquiry/request is inspected and/or assessed in relation to safety

& specified maintenance intervention levels; Programmed inspections are carried out as scheduled; Relevant inspection reporting & recording mechanisms are in place; Reported defects are being properly recorded in the system; Appropriate rectification responses are determined & Works Orders

issued where required; Where Works Orders require scheduling of works onto annual

maintenance programs or long-term renewal works programs, that the required listing takes place;

Record of maintenance activities is made in the database against the asset, including actual time and date of completion;

Satisfactory completion of maintenance works has been recorded (ie someone has signed off that the works have been completed as intended);

Procedure is in place for collecting and storing information regarding road asset condition for developing future maintenance programs;



Management system in place to record and respond to customer enquiries;

Asset handover/update process for new assets acquired through developments and subdivisions is being managed as required.

9.2.4. AM Plan Performance Measures Performance measures will be developed to ensure that work practices and the Asset Management Plan are reflective of each other.

A key measure will be the budget itself. If the AM Plan properly indicates the costs for various activities & Council funds them accordingly, then the work must be completed on line with budget. Variances will occur periodically due to unforseen circumstances or significant changes in conditions such as weather.

9.2.5. Asset Delivery Performance Part of the annual budget process is to review asset performance following delivery of the maintenance program. Actual expenditures are compared to those budgeted & any significant variances are analysed with any necessary remedial action accounted for in the new budget.

Also, effectiveness of the various maintenance activities is reviewed to ensure that they are delivering what is required to keep the asset performing at the required level of service.

Performance measures include: Delivery of the annual Capital Works Program (93% for 2007/2008). Results from CRTS reports for reactive response. Performance for routine response (CMP audit of RM Plan). Renewal GAP

Part of this process determines whether it is effective to continue funding maintenance or in fact that the particular asset or asset component requires rehabilitation, renewal or upgrading or even being downgraded such as reversion of a poor condition sealed surface to gravel.

The following annual performance reviews of maintenance programs and strategies will be undertaken by management: Assessment from asset databases of response times for completion of

defect rectification works from the time of their being reported; That specified Defect Intervention Levels are effective; That Intervention responses are timely; Assess the relative improvements achieved since the previous review

and compare this to what was intended to be achieved; Where relevant industry benchmarking information is available, test the

relative status of the organisation and its AM performance comparing with AM best practice & endeavour to introduce improvements if appropriate to the Council;

Confirm that the technical content in AM Plans is sound and applied correctly in developing AM plan outputs (eg appropriate economic lives, lifecycle strategies).



9.2.6. Reporting Asset Achievements Council’s Annual Report is the vehicle that will be used to report to the community the status of its road infrastructure assets.

Annual financial audits (AAS27), New Works and Services reports, and statistical information given through the Department of Victorian Communities' Local Government Asset Performance Measures program all act as reporting mechanisms.

Other information sources that can be used are Council’s Banyule Banner and Council’s website.

9.2.7. External Factors Where new development or redevelopment is proposed for the City, any impacts that they may have on Council’s infrastructure assets are considered with the development process, including application of appropriate infrastructure design standards. Input is sought from the Engineering Department so that conditions can be applied to address the impacts wherever practicable.

Other external factors & influences that may arise from Government actions, such as highway realignment proposals, are usually undertaken with consultation with the City so that impacts on Council’s infrastructure assets can addressed with the development and processing of the proposal. Those impacts are not necessarily restricted to road assets as they may impact parklands, etc.

Exogenous factors can also impact maintenance of Council operations such as changing environmental standards, community safety standards, OH&S, etc. These can all add to the cost of maintaining and operating Council infrastructure assets and must be accounted for in the annual budget process.

10. Reference Documents Key references include:

Banyule City Council Asset Management Strategy Version 3 (June 2003) International Infrastructure Management Manual (IIMM) 2006, IPWEA Australian Accounting Standard AAS27 & AASB116 Risk Management Standard, AS/NZS 4360:2004 MAV Asset Management Improvement STEP Program – Road Asset

Management Plan Framework 2003 VicRoads Risk Management Guidelines DVC Guidelines for Developing an Asset Management Policy, Strategy and

Plan 2004 Local Government Asset Investment Guidelines, DVC August 2006

11. Appendices

Appendix 1 – Asset Management Roles & Responsibilities Matrix Appendix 2 – Asset Categories & Responsibilities Matrix Appendix 3 – Business Plan 2006/07 AM Strategies, Priorities & Actions Appendix 4 – Service Standards & Performance Measures Appendix 5 – Asset Management Guidelines for each Asset Group Appendix 6 – DVC Customer Service Survey



Appendix 1: - Asset Management Roles & Responsibilities Matrix

Tasks Owner Strategic Manager Physical Manager

Management Service Provision

Planning

Policy/Strategy Adopts policies/strategies as appropriate

Recommends policy/ strategy for the management of the asset including type of service provided, service levels & operating costs

Identifies maintenance service levels and true costs of providing maintenance service

Provides data and expertise to assist Strategic and Physical Manager

Change of Use

Facilitates process for identifying appropriate use in line with policy/ strategy

Provides service in response to the physical needs of the asset

Provides advice on suitability of change with respect to maintenance

Asset Register

Coordinates and facilitates maintenance of corporate asset register

Ensures information is recorded by regularly reporting to Owner

Records and reports changes in asset data resulting from maintenance activities

Pricing Policy Establishes corporate pricing framework

Recommends fee level according to service provided & negotiates fees paid with user according to usage.

Creates/ Purchase

Creates/Purchase Approves creation/arranges purchase

Identifies need & makes recommendation according to service level required

Construction standards

Identifies intended use and sets standards according to recommendations

Recommends standards according to performance and service levels required

Provides advice and expertise

Operation

Operating Costs Uses operating costs to recommend fees. Reports to owner

Identifies operating costs for each asset and ensures allocated against asset

Allocates scheduled and reactive maintenance costs as operating expense against asset

Leases Sets standard format and monitors operation of lease

Settles lease according to standard format. Ensures timely payment and regularly reports to Asset Owner.

Maintains asset according to lease conditions

Risk Management

Sets service levels with Council’s Risk Manager. Reports on performance to owner. Regularly undertakes risk analysis and develops contingencies for service provision

Ensures requirements are met and provides relevant data

Asset monitoring Co-ordinates corporate reporting requirements

Sets performance standards and undertakes condition and performance monitoring to ensure required levels of service are being met

Provides data and expertise



Appendix 1 continued:

Tasks Owner Strategic Manager Physical Manager

Management Service Provision

Operation

Asset Management Plans

Monitors progress of asset management plan

Develops asset management plans based on customer needs and service level capacity of asset

Provide data and expertise

Budget setting Approves budget

Sets service levels and budgets for operation & planned maintenance. Schedules planned maintenance. Manages unplanned maintenance programs to ensure service levels are met

Ensures scheduled and reactive maintenance is undertaken in the most cost effective manner

Maintenance

Standards

Recommends service levels and performance parameters based on service to be provided

Sets maintenance standards to minimise life cycle costs, within performance parameters set.

Implements program according to set standards and negotiated service level agreements. Provides advice on best practice.

Rehabilitation

Refurbishment & Alterations Provides consent

Identifies need & budget & provides advice on priorities

Implements alterations according to required standards for intended use

Provides advice on condition

Disposal

Consent

Provides consent according to corporate needs and implements

Identifies need (or lack of) to retain asset and makes recommendation

Provides advice on condition and ability to effectively deliver service



Appendix 2: - Asset Categories & Responsibilities Matrix This Matrix relates to Section 5.7 & 5.8

Physical Manager Asset Category Strategic

Manager Management Service Provision

Transportation Assets Bridges – Roads Pedestrian Bike Paths

DCD-MES DCD-MES DCP-MLR

DCS-MMP&I DCS-MMP&I DCS-MMP&I

MMP&I MMP&I MMP&I

Roads DCD-MES DCS-MMP&I MMP&I Footpaths DCD-MES DCS-MMP&I MMP&I Bike paths DCP-MLR DCS-MMP&I MMP&I Street Furniture DCD-MES DCS-MMP&I MMP&I Signs DCD-MES DCS-MMP&I MMP&I Street Trees DCS-MP&G DCS-MP&G MP&G Street Lights DCS-MMP&I DCS-MMP&I MMP&I Traffic Lights DCD-MDS DCS-MMP&I MMP&I Line markings DCS-MMP&I DCS-MMP&I MMP&I Car-parks – Shopping centres, public areas, Reserves

DCD-MES DCP-MLR

DCS-MMP&I DCS-MMP&I

MMP&I MMP&I

Retaining Walls DCD-MES DCS-MMP&I MMP&I Traffic Management Treatments DCD-MDS DCS-MMP&I MMP&I Landscaping DCD-MP&G DCS-MP&G MP&G Bridges – Roads Pedestrian Bike Paths

DCD-MES DCD-MES DCP-MLR

DCS-MMP&I DCS-MMP&I DCS-MMP&I

MMP&I MMP&I MMP&I

Roads DCD-MES DCS-MMP&I MMP&I Footpaths DCD-MES DCS-MMP&I MMP&I Drainage Assets Stormwater reticulation – Pipes DCD-MES DCS-MO MO Pits DCD-MES DCS-MO MO Open drains – Constructed DCD-MES DCS-MO MO Earth DCD-MES DCS-MO MO Retarding Basins & Lakes DCD-MES DCD-MP&G MP&G Litter Traps DCD-MES DCS-MO MO Structures DCD-MES DCS-MO MO Drainage Reserves – General DCD-MES DCS-MO MO Mowing only DCS-MP&G DCS-MP&G MP&G Billabongs DCS-MP&G DCS-MP&G MP&G Buildings Libraries DCP-MLR DCS-MMP&I MMP&I Municipal Offices DCD-MAL DCS-MMP&I MMP&I Municipal Depots – Works DCS-MO DCS-MO MO Parks DCS-MMP&I DCS-MMP&I MMP&I Pavilions DCP-MLR DCS-MMP&I MMP&I Grand-stands DCP-MLR DCS-MMP&I MMP&I Public Toilets – Parks & Reserves – General DCP-MLR DCS-MMP&I MMP&I Parks & Reserves – Cleaning DCS-MMP&I DCS-MO MO Shopping Centres – General DCP-MES DCS-MMP&I MMP&I Shopping Centres – Cleaning DCP-MMP&I DCS-MO MO Major Leisure Centres DCP-MLR DCS-MMP&I MMP&I Halls DCP-MLR DCS-MMP&I MMP&I Pre-schools DCP-MYF DCS-MMP&I MMP&I



Appendix 2 continued: Physical Manager

Asset Category Strategic Manager Management Service

Provision

Childcare Centres DCP-MYF DCS-MMP&I MMP&I

Senior Citizens’ Centres DCP-MHA DCS-MMP&I MMP&I

Maternal & Child Health Centres DCP-MYF DCS-MMP&I MMP&I

Function Centres DCP-MLR DCS-MMP&I MMP&I

Neighbourhood Houses DCP-MLR DCS-MMP&I MMP&I

Cemeteries - Waringal DCD-MAL DCD-MAL MP&G

Cemeteries - Other DCD-MAL DCS-MMP&I

Commercial/Residential Buildings DCD-MES DCD-MES MMP&I Land Parks and Bush-land DCP-MLR DCS-MP&G MP&G Reserves – Roads DCD-MES DCD-MES MMP&I Drainage DCD-MES DCD-MES MO Tree DCD-MES DCD-MES MP&G Land Under Roads DCD-MES DCD-MES Cemeteries DCD-MAL DCD-MAL MAL Crown Land (vacant) DCD-MES DCD-MES MP&G Commercial DCD-MES DCD-MES MP&G

Community (occupied by the various community centres) DCP

Asset owners of the various

buildings occupying the

land

MP&G

Municipal – Office DCD-MES DCD-MES MP&G Depots DCS MP&G/MO MP&G/MO Parks & Recreation Athletic Tracks DCP-MLR DCS-MP&G MP&G

Playground Equipment DCP-MLR DCS-MP&G MP&G Golf Course Infrastructure DCP-MLR DCS-MMP&I MMP&I Fountains DCP-MLR DCS-MP&G MP&G

Bowling Greens DCP-MLR DCS-MP&G Cricket Pitches and Nets DCP-MLR DCS-MP&G MP&G Croquet Greens DCP-MLR DCS-MP&G Tennis Courts DCP-MLR DCS-MLR Sports Fields DCP-MLR DCS-MP&G MP&G

Sports Field Lighting DCP-MLR DCS-MP&G MP&G

Picnic Facilities DCP-MLR DCS-MP&G MP&G

Trees DCP-MLR DCS-MP&G MP&G Signage DCP-MLR DCS-MMP&I MMP&I Park Furniture DCP-MLR DCS-MP&G MP&G

Sprinkler Systems DCP-MLR DCS-MP&G MP&G




Appendix 2 continued: Physical Manager

Asset Category Strategic Manager Management Service

Provision Waste Management Assets Transfer Station DCS-MO DCS-MO MO Garbage/Recycling Bins DCS-MO DCS-MO MO Litter Bins DCS-MO DCS-MO MO Plant Mobile – Cars DCS-MO DCS-MO MO Trucks DCS-MO DCS-MO MO Plant DCS-MO DCS-MO MO Other DCS-MO DCS-MO MO Fixed - Transfer station fixed plant DCS-MO DCS-MO MO Workshop Equipment DCS-MO DCS-MO MO Office Plant, Equipment & Furniture IT software DBD-MIB DBD-MIB MIB IT Hardware DBD-MIB DBD-MIB MIB Communication equipment – Telephones DBD-MIB DBD-MIB MIB Two-way radios DCS-MO DCS-MO MO Wide Area Network DBD-MIB DBD-MIB MIB Miscellaneous office equipment DCD-MAL DCD-MAL MAL

Movable Equipment in various Council facilities DCD-MAL DCD-MAL MAL

Office Furniture DCD-MAL DCD-MAL MAL Cultural Assets Art Collection DCP-MLR DCP-MLR MLR Memorabilia DCD-MAL DCD-MAL MAL Monuments/Statues DCP-MLR DCS-MP&G MP&G Community Art DCP-MLR DCP-MLR MLR

Table of Abbreviations

DBD Director Business Support & Development DCD Director City Development DCS Director City Services DCP Director Community Programs MAL Manager Administration & Laws MDS Manager Development Services MES Manager Strategy & Economic Development Services MMP&I Manager Major Projects & Infrastructure MHA Manager Health & Aged Services MIB Manager Information & Business Support MLR Manager Leisure Recreation & Cultural Services MO Manager Operations MP&G Manager Parks & Gardens MYF Manager Youth & Family Services

Note: The above listings will be expanded to included specific references to individual asset category responsible officers, and will include contact details. It is envisaged that asset responsibilities easily available through Council's Corporate information systems.


Appendix 3: - Business Plan 2006/07 AM Strategies, Priorities & Actions

City Plan Strategies (for Achieving the Objective)

City Plan - Key priorities for 2006-2010 include: Actions for Annual Business Plan 2006-07 Responsible

Officer/s

Asset Management and Planning Ensure that Banyule’s existing physical assets are sustainably managed for the overall benefit of the community, and appropriate planning occurs for future community assets.

• Due to the ageing infrastructure and the increasing demand upon it we will need to: − Develop and implement asset

management plans for all asset categories.

− Continue to implement Banyule’s Road Management Plan.

− Deliver a consistent, systematic approach to asset identification, maintenance and management.

• Undertake a range of key road construction and reconstruction projects to ensure the long-term sustainability of Banyule’s roads infrastructure.

• Further develop and implement

Council’s pro-active Footpath Replacement and Development Program based on Banyule’s Road Management Plan incorporating key priority areas including Community Hubs and Commercial centres.

• Asset Management Strategy – Review the Asset Management Strategy including the further development of Asset Management Plans, including: Roads & Footpaths, Playground Equipment, and Drainage.

• Asset Management System - Implement the first stage of the AIM – Civica Asset Management System, for asset categories including roads, fleet and playgrounds.

• Road Management Plan – Continue to implement the Road Management Plan inspection and proactive maintenance schedule for road assets incorporating new systems and technology for data capture and management.

• Road Reserve Management – Develop an integrated maintenance regime for the whole of road reserve and all its assets.

• Road Construction and Reconstruction – Undertake a range of key road construction and reconstruction projects to ensure the long-term sustainability of Banyule’s roads infrastructure, including works at: Locksley Rd, Ivanhoe; Aqueduct Rd, St. Helena; and MMP&ICrae Rd, Rosanna.

• Footpath Replacement – Continue to implement Council’s pro-active Footpath Replacement Program based on Banyule’s Road Management Plan incorporating key priority areas including Community Hubs and Commercial centres, including: Macleod Shopping Centre Footpath Works, & Bolton Street Footpath Construction

• Street Trees: Continue to apply innovative asset technologies to manage and augment the city’s tree population by planning and implementing planting programs to ensure that the amenity value and integrity of Council’s relevant local character precincts are maintained.

• Stormwater Quality Management Plan – Continue to implement the Stormwater Quality Management Plan to enhance the management of Council’s key drainage assets and improve the quality of our waterways, including installation of gross pollutant and litter traps to improve water quality entering the Plenty River and Yarra.

• Services and Buildings - Identify opportunities to consolidate services and buildings to better service existing and anticipated demands, and address legislative and licence requirements

• Development Contribution Scheme – Investigate a possible 10-year Plan for asset and development contributions to ensure effective utilisation of assets, allocation of resources, and long-term planning to meet the needs of the Community.

Vincent Ryan / Peter Benazic Masum Rashid/ Vincent Ryan Arun Chopra/ Vincent Ryan Vincent Ryan/ Arun Chopra Vincent Ryan/ Arun Chopra Arun Chopra/ Vincent Ryan Peter Benazic Vincent Ryan/ Rob Millard Arun Chopra/ Vincent Ryan Vincent Ryan




Appendix 3: - Business Plan 2006/07 AM Strategies, Priorities & Actions (Continued)

City Plan Strategies (for Achieving the Objective)

City Plan - Key priorities for 2006-2010 include: Actions for Annual Business Plan 2006-07 Responsible

Officer/s

Information Management and Technology Enhance the provision of Council services through the development of innovative technology solutions.

• Develop integrated technology solutions including: − Mobile technologies that enable

customer service to be delivered efficiently in the field.

− An asset & infrastructure management system that supports the better management of our ageing infrastructure.

− A customer request management system that enables the provision of best possible customer service to our community.

− A range of innovative targeted solutions that assist Banyule to deliver Above and Beyond Customer Service by working smarter and making the most of technological opportunities.

•

Budget and Governance Provide sound governance and stewardship of financial resources

• Ensure good governance through the implementation of Banyule’s key audit programs as part of the 5 Year Strategic Risk Management Framework.

• Develop and implement an effective and achievable 4 Year New Works & Services budget process.

•

•


Appendix 4: - Service Standards& Performance Measures for each Asset Category

Asset Category Service Standards Performance Measures

Transportation Assets The Road Management Bill will establish the principles and practices on which road asset plans will be based. The process is being driven by the State Government through VicRoads and the DVC because of the abolition of the non-feasance ruling. Service Standards/Levels will be identified in Asset Plans that must be completed by June 2004, the Road Management Bill will be enacted in January 2005. Status: The Pavement Management System (PMS) holds all relevant road data. The data sets will be reviewed, however, the inventory is accurate and data integrity high. Condition data is obtained by visual survey - around 25% of the network p.a.). Modelling criteria and interventions will also be revisited.

• Re-sheet 2.5% of road assets each year.(current rate is 1.6%)

• Re-construct 2% of road assets each year (current rate is 1.2%).

• Re-construct/repair 0.5% of footpaths/bike-paths each year (current rate is 0.1%).

• Inspect every transport asset at least once every 5 years (not done currently)

• Line markings to be re-painted every 3 years as per industry standard (current rate is 5-7 years)

• Undertake routine maintenance on 0.3% of road assets each year

Roads: • Scheduled maintenance cost per lane km of sealed roads • Reactive maintenance cost per lane km of sealed roads (un-scheduled

maintenance costs caused by other service authorities to be captured separately)

• Percentage of annual road maintenance expenditure to total road asset value. • Percentage reduction in reactive road maintenance costs • Percentage of roads having greater than 12% failure. Footpaths: • Average cost per km of footpath maintenance activities • Percentage of footpath system with sealed pavement Traffic Management: • Accidents per km per annum • Percentage reduction in accident severity Customer Service: • Number of complaints regarding road surface per100 km of roads (complaints

due to other service authorities’ works to be captured separately) • Number of complaints regarding footpath/bike path surface per 100 km.

Drainage Assets Status - Data sets require investigation - approximately 75% of the network has been captured on various computer databases including, GIS, and requires consolidation. Condition data requires work - pits are documented (hardcopy) - pipes require significant visual survey.

• New drainage systems to be designed for a 1 in 2 year Average Recurrence Interval (ARI) flood, provided that a floodway that has the capacity to cater for a 1 in 100 year ARI flood is provided.

• Where no floodway is provided, then new drainage systems to be designed for a 1 in 10 year ARI flood.

• Implement a set program of regular inspection of known trouble spots.

• Annual routine inspection of all drainage pits as a minimum.

• Clean litter traps every six weeks. • Existing surface and un-constructed

drainage to be provided for within the underground network.

• Scheduled maintenance costs per 100 km of drains • Reactive maintenance costs per 100 km of drains • Reduction in number of blockages in drains per 100 km • Percentage of drainage system that can accommodate the 1 in 10 year ARI

flood. • Number of properties that may be subject to flooding (this is to measure the risk

of property flooding/damage) • Reduction in number of properties flooded per annum • Reduction in number of properties damaged per annum • Cost of Council repairs to public and private property caused by flooding • Percentage of drainage network with litter traps installed.




Appendix 4: - Service Standards& Performance Measures for each Asset Category (Continued)


Buildings • Annual inspection of all buildings • Cyclical maintenance programs • Building services to be provided as per

legislative requirements

• Scheduled maintenance cost per building • Reactive maintenance cost per building • Reduction in reactive maintenance costs per building • Percentage occupancy per building category • Percentage recovery of building maintenance costs per building • Percentage of buildings owned by Council • Customer complaints per building category

Lands • Maintenance programs appropriate to the use of the land

• Accurate land information records

• Scheduled maintenance costs per annum • Return on investment per land category Customer Service • Customer complaints per land category • Detailed management plan completed for lands of environmental significance

Waste Management Assets Review Service Standards - some activities are operational not an asset management functions and do not relate to managing 'physical' or infrastructure assets.

• Provide a garbage, recycling and paper collection service on scheduled days.

• Average cost of garbage collection per rateable property • Average cost of recyclable waste collection per rateable property • Percentage of total recycling cost recovered • Percentage of garbage and recyclable bins collected on time first time • Percentage of residential properties within 10 kilometres access to waste

transfer station • Percentage of household waste sent to landfill (reduce by 50% by year 2000) • Number of complaints per 1000 properties serviced

Parks & Recreation Assets Significant asset realisation has taken place with assets being identified in various data bases and linked to GIS. Further work is required on classification of asset categories. Street Trees have not been identified. Issues regarding the take up of these assets from a financial view is still being debated, however, there is a clear direction that management and maintenance processes and systems should be established. The impact of street trees on 'road reserve' assets eg footpaths, and utility assets (powerlines) is significant.

• Maintenance in accordance to standards of the sport and/or the nature of use

• Use is managed so that the reasonable life of the asset is preserved

• Annual inspection per playing surface

• Average cost per rateable property of parks and gardens maintenance • Scheduled maintenance cost per asset type • Reactive maintenance cost per asset type • Percentage of cost recovery per asset type • Customer complaints per asset type • Community satisfaction index (%) with condition and maintenance of parks and

gardens • Utilisation rate of council owned sport and recreational complexes • Frequency of inspection per asset type • Adherence to all leases and agreements



Appendix 4: - Service Standards& Performance Measures for each Asset Category (Continued)


Plant Review with input from asset owners and stakeholders.

• Ensure that all Plant are serviced regularly in accordance with manufacturers’ recommendations

• All sedans and utes will be replaced at the end of 2 years or at 40,000 kilometres, whichever is sooner.

• All mobile plant to be replaced every 5-10 years depending on usage and manufacturers’ recommendations.

• All fixed plant to be replaced as per assigned life cycles

• Actual life cycle costs v projections (based on manufacturers’ recommendations)

• Percentage of un-scheduled down time • Percentage of scheduled down time • Reduction in reactive maintenance costs Customer Service • Response to customer requests within agreed time limits • Customer satisfaction rating

Office Plant, Equipment & Furniture Review Service Standards - some activities are operational - not an asset management function. This area does not relate to managing 'physical' or infrastructure assets.

• Ensure that all Office Plant and Equipment are serviced regularly in accordance with manufacturers’ recommendations

• All staff members will be provided as a minimum, a DX4 100 with 16MB of RAM, a 15” monitor and a standard operating environment consisting of Windows 95, Office 97standard, E-mail Authority and Ausinfo.

• 20% of all PCs will be replaced per annum. • Integrity of council data will be maintained by doing

regular daily, weekly and monthly back-ups.

• Actual life cycle costs v projections (based on manufacturers’ recommendations)

• Percentage un-scheduled down time • Percentage scheduled down time • Reduction in reactive maintenance costs • Response to customer requests within agreed time limits • Customer satisfaction rating

Cultural Assets Review with input from asset owners and stakeholders.

• Conservation of Art Collection as per Victorian Centre for the Conservation of Cultural Material (VCCCM) conservation strategy

• Maintenance and public access of Art Collection as per Council policy

• Maintenance of Art Collection as per Art Collection curator contract

• Annual inspection of condition of monuments and public art works

• Maintenance, conservation and display of memorabilia collection

General: • Expenditure per capital on cultural facilities and activities Art Collection: • VCCCM Art Collection conservation strategy achieved annually • Acquisition of works into the Art Collection annually Memorabilia: • Public access to collection through permanent displays Monuments/statues: • Scheduled maintenance cost per asset • Unscheduled maintenance cost per asset Community Arts: • Number of new projects undertaken per year • Scheduled maintenance cost per asset


Appendix 5: - AM Goals for Each Asset Group

Goal Customer Requirements Legal/Regulatory Requirements

Transport Assets

• Determine appropriate standards for design and maintenance of all transport assets

• Use innovative, best practice and cost effective processes that will ensure an optimum asset life for all transport assets

• Undertake predictive modelling to develop optimised capital and maintenance programs.

• Continually review standards to ensure that user needs are met.

• Access (including disability) • Safety • Drainage • Maintenance • Amenity (including street-scaping) • Serviceability • Environmental impact • Lighting.

• Local Government Act • VicRoads requirements • Common Law • Disability Discrimination Act • State Environment Protection Policies • Planning & environment Act • Road Traffic Act/Regulations • OH&S Act • Local Laws. • Road Management Act

Drainage Assets

• Determine appropriate standards for design and maintenance of all drainage assets

• Provide an efficient drainage network that ensures properties are protected and the general amenity of the area is maintained or improved

• Improve the quality of water discharged to creeks and rivers.

• No flooding • Amenities • Improved waterways • Clean waterways • Ability to connect to drainage system • Safety • Environmental habitat

• Local Government Act • Melbourne Water’s requirements • Common Law • Disability Discrimination Act • Environment Protection Act • Planning scheme requirements • OH&S Act • Local Laws.

Buildings

• Determine appropriate design and maintenance standards for all buildings.

• Ensure the effective operation of all buildings • All building facilities are managed in a cost effective manner to meet

the needs of relevant users • Manage buildings in a manner that will not detrimentally affect

amenities of the area • Obtain the optimal value and utilisation of all buildings • Provide for sufficient flexibility to allow for multiple uses.

• Cleanliness • Structurally sound • Building use to be managed well • Equitable access • Aesthetics • Safety • Appropriate mix of amenities • Car parking facilities • Facility is functional and in good working order • Security • Weather-proof • Vandal-proof • Heating & Cooling facilities.

• Discrimination Disability Act • OH&S Act • Building Act • Local Government Act • Planning & Environment Act • Australian Standards • Relevant industry guidelines and practice codes • Food Act • Environment Protection Act • Residential Tenancy Act • Retail Tenancy Reform Act • Landlord and Tenant Act • Property Law Act.



Appendix 5: - AM Goals for Each Asset Group (Continued)


Lands

• Manage land for the use and benefit of the community. • Manage land in a manner that will not detrimentally affect amenities or

its future value

• Adequate protection of habitat • Aesthetic quality • Appropriate fencing • Appropriate use of council land

• Local Government Act • Planning & Environment Act • Crown Lands Act • Local Laws • Water Industry Act • Victorian Conservation Trust Act

• Manage (acquire/develop/dispose) land to implement all relevant Council strategies and provide for appropriate municipal purposes.

• Management of land is appropriate to the intended use.

• Heritage Act • Environment Protection Act • Parks Victoria Act • Tourism Victoria Act • Telecommunications Act • Heritage Rivers Act • Catchment & Land Protection Act • Subdivision of Land Act • Disability & Discrimination Act • Archaeology & Aboriginal Relics Protection Act.

Waste Management Assets

• Provide convenient, cost effective, efficient and user friendly waste disposal and recycling services

• Ensure all residents have equal access to waste disposal and recycling services.

• Adopt best practice technologies which are environmentally sound and economically viable

• Minimise the amount of waste being transported from the transfer station to landfill

• Maximise re-use of materials by investigating the feasibility of establishing waste product exchange at the transfer station.

• Access to waste disposal and recycling services • Regular waste collection services • Information on recycling and waste disposal • Aesthetics • Convenient operating hours. Note: Review Waste Management activities and

their appropriateness to Asset Management, there are no physical or infrastructure assets mentioned in this category.

• Environment Protection Act • Local Government Act • Local Laws • Dangerous Goods Act • OH&S Act • Lifts & Cranes Act.




Appendix 5: - AM Goals for Each Asset Group (Continued)


Parks & Recreation Assets

• Manage the assets for the use and benefit of the community • Manage the assets in a manner that will not detrimentally affect

amenities or its future value • Manage assets in accordance with all relevant Council policies and

agreements • Manage assets in a manner that maintains identified standards.

• Parks and Recreation assets are provided with an appropriate mix of amenity and infrastructure

• Safety • Equitable access to assets • Assets are managed to promote wide

community use • Assets are functional in accordance to use.

• Australian Standards • Local Laws • Local Government Act • Planning & Environment Act • Disability Discrimination Act • OH&S Act • Environment Protection outlays.

Plant

• Ensure that Plant is replaced at an optimum price and meets the needs of the users.

• Ensure that maintenance and repairs are carried out in a responsive and timely manner to minimise downtime.

• Access • Continuous availability • Servicing and maintenance facilities • Technical advice and assistance

• Road Safety Act • OH&S Act • Lifts & Cranes Act • Dangerous Goods Act • Environment Protection Act • Local Government Act

• Identify real cost of providing assets so that appropriate charge out rates could be determined for users. • Safe operating procedures and instructions. • Local laws

• Accident Compensation Act. Office Plant, Equipment & Furniture • Ensure that assets are replaced at an optimum price and meet the

needs of the users. • Ensure that maintenance and repairs are carried out in a responsive

and timely manner to minimise downtime. • Identify real cost of providing assets so that appropriate charge out

rates could be determined for users.

• Access • Continuous availability • Servicing and maintenance facilities • Technical advice and assistance • Safe operating procedures and instructions.

• OH&S Act • Local Government Act • Local Laws.

Cultural Assets

• Ensure the community has opportunities to celebrate their collective social and artistic heritage

• Maintain the Art collection to a museum quality standard as per Council policy and Art collection curator’s contract

• Maintain the assets to a standard appropriate to the community.

• Access to local social and artistic heritage. • Conservation of local heritage. • Involvement and access to locally developed

community arts. • Development of a sense of community. • Formal commemoration of local history

(monuments and statues). • Sense of collective community heritage and

celebration.

• Local Government Act • OH&S Act • Local Laws.


Appendix 6: - DVC Customer Service Survey, 2005

Community Satisfaction Survey Windows Description of Issues Raised

Local Roads and Footpaths

Maintenance of footpaths, kerbs and channels, bridges, road signs, street furniture and line marking. Construction of footpaths, kerbs, channels, roads and resurfacing of roads.

Waste Management Domestic Garbage collection, recycling of plastics, glass, green waste and paper. Weekly collection of large bin.

Appearance of Public Areas

Drain cleaning and maintenance, cleaning of streets, public conveniences, car parks, shopping centres and street litter bins.

Town Planning policy and Approvals

Building and planning permits, site inspections, enforcement of building regulations and liaison with neighbours or developers before a new use or development is approved.

Traffic Management and parking Facilities

Traffic management, road amenity and layout, drainage and flooding issues and car parking.

Enforcement of By Laws Responsibility for local laws, parking, school crossings, animal control, fire prevention and disabled parking permits.

Recreational Facilities

Aquatic/Leisure centres and swimming pools. Playgrounds, sporting reserves, picnic & BBQ areas, walking paths and bike trails. Library services, community halls, neighbourhood houses, learning centres, community buses, Banyule Arts Collection, liaison with community groups and liaison with sporting groups. Banyule Festival, Summer in the Parks, Winter in Banyule, The Boulevard Lights and Carols on the Boulevard. Mowing of parks, tree maintenance, landscaping, looking after sprinkler systems, weed control, playgrounds, sporting fields and shopping centres. Maintenance and up-keep of sporting pavilions, halls.

Health and Human Services

Family day care, holiday programs, child care centres, pre-school enrolment, pre-school dental clinic, maternal and child health and baby capsule hire. Family support programs, youth service programs and liaison and youth support counselling and resource program. Home help, delivered meals, home maintenance, service access and integration for people with disabilities, adult day care centres, respite care and support for carers, community transport, recreation programs for disabled and recreation programs for the aged. Immunization, health promotion, food surveillance (inspections), environmental nuisances (noise and air pollution), monitor for infectious diseases and health planning services. Maintenance and up-keep of maternal and child health centres, pre-schools and municipal buildings.

Community Engagement Provision of information about Council issues through local newspapers, Council newsletter, information booklets, The Calendar, mail outs and newspaper ads.

Advocacy Public forums or other avenues for input into Council activities or policies. Land use planning, planning scheme amendments, providing demographic and economic data and forward planning on conservation and social issues.

Customer Contact Staff courtesy, responsive to needs, resolution of query on first contact, phone manner, staff knowledge, convenience of location, accessibility of Council services, opening times, adequate information provided, availability of information and overall quality of service (outcome).

Economic Development Promoting the economic advantages of the municipality, attracting new business and employment opportunities and assisting existing industries to grow. Support for economic development of the area, chambers of commerce, traders groups etc.

Environment To be Finalised


Council Asset Management Strategy

Documents

Transcript of Council Asset Management Strategy