INFRASTRUCTURE ASSET MANAGEMENT PLAN and Wor… · Ensuring future growth is covered in long term...

INFRASTRUCTURE ASSET

MANAGEMENT PLAN TRANSPORT

Version 4.1 May 2017

This Transport Infrastructure Asset Management Plan has been declared by The Barossa Council as a

Strategic Management Plan pursuant to Section 122(8) of the Local Government Act 1999.

Document Control

TRIM Reference: 17/32485

Rev No Date Revision Details Author Reviewer Approver

1 18/11/2008 Version 1.0 DGH MJL MJL

2 20/11/2012 Version 2.0 DGH AMWP MJL

3 11/07/2016 Version 3.0 MAI OMG CMT

4 21/11/2016 Version 4.0 MAI Key Stakeholders Council

4.1 16/5/2017 Version 4.1 CAM Public& Key

Stakeholders Council

THE BAROSSA COUNCIL – TRANSPORT INFRASTRUCTURE ASSET MANAGEMENT PLAN

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY................................................................................................................ 1

Context ........................................................................................................................................ 1

What does it Cost? .................................................................................................................... 3

What we will do ......................................................................................................................... 4

What we cannot do ................................................................................................................. 4

Managing the Risks ................................................................................................................... 4

Confidence Levels .................................................................................................................... 5

The Next Steps ............................................................................................................................ 5

2. INTRODUCTION........................................................................................................................... 6

2.1 Background ........................................................................................................................ 6

2.2 Goals and Objectives of Asset Management ........................................................... 10

2.3 Plan Framework ............................................................................................................... 11

2.4 Core and Advanced Asset Management................................................................. 13

2.5 Community Consultation ............................................................................................... 13

3. LEVELS OF SERVICE .................................................................................................................. 14

3.1 Customer Research and Expectations ....................................................................... 14

3.2 Strategic and Corporate Goals ................................................................................... 14

3.3 Legislative Requirements ............................................................................................... 15

3.4 Community Levels of Service ........................................................................................ 16

3.5 Technical Levels of Service ............................................................................................ 17

4. FUTURE DEMAND ...................................................................................................................... 35

4.1 Demand Drivers ............................................................................................................... 35

4.2 Demand Forecast ........................................................................................................... 35

4.3 Demand Impact on Assets ............................................................................................ 35

4.4 Demand Management Plan ........................................................................................ 37

4.5 Asset Programs to meet Demand ................................................................................ 37

5. LIFECYCLE MANAGEMENT PLAN ........................................................................................... 40

5.1 Background Data............................................................................................................ 41

5.2 Infrastructure Risk Management Plan ......................................................................... 68

5.3 Routine Operations and Maintenance Plan.............................................................. 69

5.4 Renewal/Replacement Plan......................................................................................... 76

5.5 Creation/Acquisition/Upgrade Plan ............................................................................ 82

5.6 Disposal Plan .................................................................................................................... 83

5.7 Service Consequences and Risks ................................................................................. 83

6. FINANCIAL SUMMARY ............................................................................................................. 85

6.1 Financial Statements and Projections ......................................................................... 85

6.2 Funding Strategy ............................................................................................................. 92

6.3 Valuation Forecasts ........................................................................................................ 93

6.4 Key Assumptions made in Financial Forecasts .......................................................... 98

6.5 Forecast Reliability and Confidence ........................................................................... 99

7. PLAN IMPROVEMENT AND MONITORING .......................................................................... 101

7.1 Status of Asset Management Practices .................................................................... 101

7.2 Improvement Plan ......................................................................................................... 106

7.3 Monitoring and Review Procedures .......................................................................... 107

7.4 Performance Measures ................................................................................................ 107

8. REFERENCES ............................................................................................................................ 108

9. APPENDICES............................................................................................................................ 109

Appendix A Maintenance Response Levels of Service ................................................ 109

Appendix B Projected 10 year Capital Renewal and Replacement Works

Program ........................................................................................................................... 114

Appendix C Budgeted Expenditures Accommodated in LTFP ................................... 123

Appendix D State of The Assets ......................................................................................... 125

Appendix E Abbreviations .................................................................................................. 126

Appendix F Glossary ............................................................................................................ 128

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1. EXECUTIVE SUMMARY

Context

The Barossa Council covers 912 square kilometres and is located 80 kilometres north-east of the

Adelaide Central Business District. It is bordered by the municipalities of Town of Gawler, Light

Regional Council, Mid Murray Council, Adelaide Hills Council and the City of Playford. The Barossa

Council encompasses six major towns, Mount Pleasant, Angaston, Nuriootpa, Tanunda, Lyndoch

and Williamstown as well as 7 smaller towns and communities with a population of approximately

23,500.

Council’s Transport assets are maintained and managed in accordance with all regulatory

requirements, relevant Australian Standards and Local Government Act 1999.

Current service levels vary across the Council area and are managed and maintained in

partnership with other levels of government and stakeholders. Capacity is being met with existing

asset infrastructure and upgrade and renewal is considered against community expectations and

growth.

The Service

The Transport network comprises:

Asset Class Asset Type

Current

Replacement

Cost

Length

(m) Count

Footpath Bitumen - Spray Seal Footpath Surface Type $1,889,971 46,058 319

Footpath Bitumen - Hotmix Footpath Surface Type $1,147,499 12,087 25

Footpath Concrete Footpath Surface Type $1,108,052 8,693 124

Footpath Natural Footpath Surface Type $1,396.40 34,589 288

Footpath Paved Footpath Surface Type $3,011,488 30,793 339

Footpath Rubble Footpath Surface Type $832,798 37,785 347

Footpath $7,991,204 170,005 1442

Kerb and Gutter Median Kerb $308,265 2,792 26

Kerb and Gutter Rollover Kerb & gutter $12,629,502 71,236 623

Kerb and Gutter Stone Kerb & gutter $78,247 283 2

Kerb and Gutter Upright Kerb & gutter $29,521,805 166,298 1353

Kerb and Gutter $42,537,819 240,609 2004

Road Earth Road Earth Type $13,018,679 983,913 2175

Road Earth $13,018,679 983,913 2175

Rural Pavement Rural B Double Normal Use Hotmix Pavement

Type $786,581 2,218 4

Rural Pavement Rural B Double Normal Use Spray Pavement

Type $7,085,663 18,600 22

Rural Pavement Rural Heavy Use Hotmix Pavement Type $1,808,584 4780 25

Rural Pavement Rural Heavy Use Spray Pavement Type $13,207,669 35,904 47

Rural Pavement Rural Normal Use Hotmix Pavement Type $2,783,513 11,398 33

Rural Pavement Rural Normal Use Spray Pavement Type $32,721,732 125,372 285

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Current

Replacement

Cost

Length

(m) Count

Rural Pavement $58,393,742 198,272 416

Roundabout Barossa Roundabout $50,000

Roundabout $50,000 1

Rural Sheeted Surface Rural Road Reserve Surface $4,158 282 2

Rural Sheeted Surface Rural Sheeted Surface Function Priority 2,1 $8,125,585 334,364 350

Rural Sheeted Surface Rural Sheeted Surface Function Priority 3 $2,113,007 83,720 86

Rural Sheeted Surface Rural Sheeted Surface Function Priority 5,4 $5,166,838 128,979 138

Rural Sheeted Surface Rural Sheeted Surface Function Priority 6 $366,961 10,099 7

Rural Sheeted Surface Rural Sheeted Surface Function Priority 7 $508,938 10,726 13

Rural Sheeted Surface Rural Sheeted Surface Function Priority 10,9 $31,699.60 1,283 1

Rural Sheeted Surface $16,317,187 568,170 597

Sealed Surface Rural - B Double Route - Normal Use Hotmix $434,969 2,218 4

Sealed Surface Rural - B Double Route - Normal Use Spray Seal $907,714 16,444 20

Sealed Surface Rural Heavy Use Hotmix Bitumen Surface $958,311 6653 27

Sealed Surface Rural Heavy Use Spray Seal Bitumen Surface $1,804,555 38,105 50

Sealed Surface Rural Normal Use Hotmix Bitumen Surface $1,349,368 12,485 34

Sealed Surface Rural Normal Use Spray Seal Bitumen Surface $4,835,019 137,565 307

Sealed Surface Township Heavy Use Hotmix Bitumen Surface $919,986 4,202 25

Sealed Surface Township Heavy Use Spray Seal Bitumen

Surface $169,534 2,836 10

Sealed Surface Township Normal Use Hotmix Bitumen Surface $8,098,194 63,469 518

Sealed Surface Township Normal Use Skinny Hotmix Bitumen

Surface (20mm) $515,459 4,164 25

Sealed Surface Township Normal Use Slurry Seal / Cold Overlay

Surface $745,927 5,960 57

Sealed Surface Township Normal Use Spray Seal Bitumen

Surface $2,941,861 75,936 435

Sealed Surface Township Paver Surface $12,351 34 1

Sealed Surface $23,693,248 393,851 1513

Township Pavement Township Heavy Use Hotmix Pavement Type $1,411,684 3,791 22

Township Pavement Township Heavy Use Sprayseal Pavement Type $1,276,337 3,536 13

Township Pavement Township Normal Use Hotmix Pavement Type $12,813,898 59,880 492

Township Pavement Township Normal Use Skinny Pavement Type $590,738 2,709 15

Township Pavement Township Normal Use Slurry Pavement Type $1,535,808 7,059 57

Township Pavement Township Normal Use Sprayseal Pavement Type $17,887,183 79,977 460

Township Pavement $35,515,648 180,732 1061

Township Sheeted

Surface Township Sheeted Surface Function Priority 2,1 $12,158 815 4

Township Sheeted

Surface Township Sheeted Surface Function Priority 3 $23,537 1,513 10

Township Sheeted

Surface Township Sheeted Surface Function Priority 5,4 $108,023 4041 27

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Current

Replacement

Cost

Length

(m) Count

Township Sheeted

Surface $143,717 6369 41

Bike Path Surface Township Normal Use Skinny Hotmix Bitumen

Surface (20mm) - Bike Path $820,410 23,780 2

Bike Path Surface $820,410 23,780 2

Bike Path Pavement Township Normal Use Skinny Pavement Type -

Bike Path $1,321,574 23,780 2

Bike Path Pavement $1,321,574 23,780 2


Current

Replacement

Cost

Area (m2) Count

Car Park Car Park - Hotmix Surface $291,503 16,899 10

Car Park Car Park - Paver Surface $119,640 1,638 2

Car Park Car Park - Spray Seal Surface $9,697 2,050 1

Car Park Car Park – Rubble Surface $50,000 1,413 1

Car Park $470,840 22,000 14

Total $200,274

As at 30 June 2016

These Transport assets have a current replacement cost of $200.274 M1

What does it Cost?

The projected outlays necessary to provide the services covered by this Asset Management Plan

(Asset Management Plan) includes operations, maintenance, renewal and upgrade of existing

assets over the 10 year planning period is $46.494 M or $4.649 M on average per year.

Estimated available funding for this period is $70.389 M or $7.039 M on average per year which is

132% of the cost to provide the service. Projected expenditure required to provide services in the

Asset Management Plan compared with planned expenditure currently included in the Long Term

Financial Plan are shown in the graph below.

1 Unless indicated otherwise all numbers will be represented in $000’s.

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What we will do

We plan to provide Transport services as follows:

1. Ensure the Transport network is maintained at a safe and functional standard.

2. Minimise disruption to the network through regular maintenance.

3. Upgrade / replace Transport infrastructure where required.

What we cannot do

We cannot deviate from the projected operational and capital expenditure and need to account

for these costs in the LTFP and annual Transport budget.

Managing the Risks

There are risks associated with providing the service and being able to complete all identified

activities and projects. We have identified major risks as:

Legislative requirements

Disaster Management recommendations

Customer expectations

Population and Tourism growth

Environmental expectations

Climate change forecasts

Emergent flooding issues

We will endeavour to manage these risks within available funding by:

Transport

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Continued effective programmed and preventative maintenance.

Continued operation improvements in tasks and activities.

Continued monitoring and condition assessment of the network.

Ensuring future growth is covered in long term capital works plans.

Confidence Levels

This Asset Management Plan is based on a high level of confidence information.

The Next Steps

The actions resulting from this asset management plan are:

Develop specific service levels including performance targets.

Develop and establish ongoing assessment in relationship to safety and specified maintenance

intervention levels.

Audit and review of maintenance response times (to confirm whether maintenance works are

delivered on time).

Random audit of maintenance works (to confirm whether maintenance works are delivered to

the specified quality).

Review and assess transport plans, community expectations and customer feedback/contact.

Consultation to ascertain the community’s service needs and preferences and confirm

performance targets.

Completing the improvement plan by November 2020.

Review of the customer request reports available in Pathway.

Questions you may have

What is this plan about?

This asset management plan covers the transport infrastructure assets that serve The Barossa

Council community. These assets include sealed roads, sheeted roads, car parks, footpaths, pavement, kerb and gutter and road earth.

What is an Asset Management Plan?

Asset management planning is a comprehensive process to ensure that the delivery of services

from infrastructure is provided in a financially sustainable manner.

An asset management plan details information about infrastructure assets including actions

required to provide an agreed level of service in the most cost effective manner. The plan defines

the services to be provided, how the services are provided and what funds are required to provide

the services.

Do we have a funding shortfall?

Based on the information available as at 30 June 2015; present funding levels are sufficient to

continue to provide existing services at current levels in the medium term.

What can we do?

Continue to provide services and budget to enable sufficient capacity improvements and

maintenance of the network.

What can you do?

Council through this asset management plan is open to suggestions on how we may change or

reduce its Transport network services to ensure that the appropriate level of service can be

provided to the community within available funding.

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2. INTRODUCTION

2.1 Background

The goal of the asset management plan is to demonstrate responsive management of assets (and

services provided from assets), compliance with regulatory requirements, and to communicate funding needed to provide the required levels of service over a 20 year planning period.

The asset management plan follows the format for Asset Management Plans recommended in Section 4.2.4 of the International Infrastructure Management Manual2.

The asset management plan is to be read with the organisation’s Asset Management Policy, Asset

Management Strategy (draft document) and the following associated planning documents:

Council’s Long Term Financial Plan (as adopted July 2016)

The Barossa Council Corporate Plan 16/17 to 19/20

Barossa Community Plan 2016 – 2036

Annual Budget and Business Plan (as adopted July 2016)

Annual Financial Statements for the Year Ending 30 June 2015

This infrastructure assets covered by this asset management plan are shown in Table 2.1. These assets are used to provide effluent management and treatment services to the community.

Table 2.1: Assets covered by this Plan

Asset Class Dimension Units Count

Footpath 170,204 m 1442

Kerb and Gutter 240,609 m 2004

Road Earth 983,913 m 2175

Rural Pavement 198,272 m 416

Rural Sheeted Surface 568,170 m 597

Sealed Surface 393,851 m 1513

Township Pavement 180,732 m 1061

Township Sheeted Surface 6,369 m 41

Car Park 22,000 m2 14

Bike Path Surface 23,780 m 2

Bike Path Pavement 23,780 m 2

Roundabout 1 of 1

Key stakeholders in the preparation and implementation of this asset management plan are:

Shown in Table 2.1.1.

2 IPWEA, 2015, Sec 4.2.4, The Portfolio Asset Management Plan, pp 4|36 – 39.

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Table 2.1.1: Key Stakeholders in the Asset Management Plan

Key Stakeholder Role in Asset Management Plan

Council Represent needs of community/shareholders,

Allocate resources to meet the organisation’s objectives in

providing services while managing risks,

Ensure organisation is financial sustainable.

CEO Ensuring effective AM practices, principles and processes are

considered at all levels within the organisation

Works and Engineering Services Ensuring effective AM practices, principles and processes are

considered at all levels within the organisation

Neighbouring Councils Ensuring integration and consideration of neighbouring plans

and practices to effectively collaborate on cost effective

service provision

Department of Planning Transport &

Infrastructure (DPTI)

Interface Agreement with the State road network

South Australian Power Networks (SAPN) Interface Agreement with power distribution network

SA Water Interface Agreement with the Water Supply Network

Dial Before You Dig Works coordination

Consultants/Contractors Design approvals, protection of assets (permit to work)

Developers Investing of new assets, (includes private and

public/government owned)

Community Service level expectation

Public transport providers Selection and changes to routes, Works coordination

Auditors Audits (financial and non-financial)

Emergency Services Works coordination

Environment Protection Authority Statutory environmental requirements

Department of Health Statutory health requirements

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Our organisational structure for service delivery from infrastructure assets is detailed below

[As at June 2016]

- 9 -


[As at June 2016]

- 10 -


[As at June 2016]

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2.2 Goals and Objectives of Asset Management

The organisation exists to provide services to its community. Some of these services are provided by

infrastructure assets. We have acquired infrastructure assets by ‘purchase’, by contract,

construction by our staff and by donation of assets constructed by developers and others to meet increased levels of service.

Our goal in managing infrastructure assets is to meet the defined level of service (as amended from

time to time) in the most cost effective manner for present and future consumers. The key elements of infrastructure asset management are:

Providing a defined level of service and monitoring performance,

Managing the impact of growth through demand management and infrastructure

investment,

Taking a lifecycle approach to developing cost-effective management strategies for the

long-term that meet the defined level of service,

Identifying, assessing and appropriately controlling risks, and

Having a long-term financial plan which identifies required, affordable expenditure and

how it will be financed.3

2.3 Plan Framework

Key elements of the plan are

Levels of service – specifies the services and levels of service to be provided by the

organisation,

Future demand – how this will impact on future service delivery and how this is to be met,

Life cycle management – how Council will manage its existing and future assets to provide

defined levels of service,

Financial summary – what funds are required to provide the defined services,

Asset management practices,

Monitoring – how the plan will be monitored to ensure it is meeting organisation’s objectives,

Asset management improvement plan.

The Asset Management Process is shown below.

3 Based on IPWEA, 2015, IIMM, Sec 1.3 p 1|8.

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The Asset Management Process

Source: IPWEA, 2015, IIMM, Figure 1.3.4, p 1.10

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2.4 Core and Advanced Asset Management

This asset management plan is prepared as a ‘core’ asset management plan over a 20 year

planning period in accordance with the International Infrastructure Management Manual4. It is

prepared to meet minimum legislative and organisational requirements for sustainable service

delivery and Long Term Financial Planning and reporting. Core asset management is a ‘top down’

approach where analysis is applied at the ‘system’ or ‘network’ level.

It is recommended, subject to resourcing capacity, that future revisions of this asset management

plan will move towards ‘advanced’ asset management using a ‘bottom up’ approach for

gathering asset information for individual assets to support the optimisation of activities and

programs to meet agreed service levels in a financially sustainable manner.

2.5 Community Consultation

This ‘core’ asset management plan is prepared to facilitate community consultation initially through

feedback on public display of draft asset management plans prior to adoption by the Council.

Future revisions of the asset management plan will incorporate community consultation on service

levels and costs of providing the service. This will assist the Council and the community in matching

the level of service needed by the community, service risks and consequences with the community’s ability and willingness to pay for the service.

4 IPWEA, 2015, IIMM.

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3. LEVELS OF SERVICE

3.1 Customer Research and Expectations

The Barossa Council manages, drives and undertakes its own customer research with internal

resources utilising a combination of the following traditional and modern community engagement

strategies:

Social Media (Facebook)

Council website (www.barossa.sa.gov.au)

Council Customer Request Management System

Community Engagement Platform (www.ourbetterbarossa.com.au)

Newspaper advertising and editorial space

Newsletters (monthly and quarterly editions of d’Vine)

E-newsletter via Mailchimp

Direct communication and feedback to staff and elected members

The organisation uses this information to develop its plans and in allocation of resources in the budget.

At this time The Barossa Council does not undertake specific customer satisfaction surveys.

3.2 Strategic and Corporate Goals

This asset management plan is prepared under the direction of the organisation’s vision, mission, goals and objectives.

Our vision is:

Our Barossa

Enhancing our premium wine, food and tourism region and its unique lifestyle, heritage and community spirit

Our Themes are:

Natural Environment and Built Heritage

Business and Employment

Infrastructure

Community and Culture

Health and Wellbeing

Relevant organisational themes and how these are addressed in this asset management plan are:

http://www.barossa.sa.gov.au/

http://www.ourbetterbarossa.com.au/

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Table 3.2: Organisational Goals and how these are addressed in this Plan

Theme How Goal and Objectives are addressed in Asset

Management Plan

Natural Environment and Built

Heritage

Minimisation of environmental impact through modern

construction techniques and compliance requirements

Business and Employment Consistent and compliant with Councils Procurement

Policy.

Infrastructure Renewal of existing assets and upgrade / new assets

created to account for increased demand and growth.

Community and Culture Ensuring access is maintained to all facilities and

culturally important areas of the city via a safe and

navigable network

Health and Wellbeing Provision safe and convenient transport system which

contributes to ensuring the safety of residents and visitors

as they commute through the region.

3.3 Legislative Requirements

The organisation has to meet many legislative requirements including Australian and State

legislation and State regulations. These include (but are not limited to):

Table 3.3: Legislative Requirements

Legislation , Guidelines and Standards

Local Government Act (1999)

Local Government (Financial Management & Rating) Amendment Act 2005

Road Traffic Act (1961)

Occupational Health, Safety and Welfare Act (1986)

Occupational Health, Safety and Welfare Regulations (2010)

Highways Act (1926)

Native Vegetation Act (1991)

Roads (Opening and Closing) Act (1991)

Environmental Protection Act (1993)

Australian Standards (AS)

Australian Road Rules (under Road Traffic Act (1961))

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The organisation will exercise its duty of care to ensure public safety in accordance with the

Infrastructure Risk Management Plan linked to this Asset Management Plan. Management of risks is

discussed in Section 5.2.

3.4 Community Levels of Service

Service levels are defined service levels in two terms, community levels of service and technical

levels of service.

Community Levels of Service measure how the community receives the service and whether the

organisation is providing community value.

An integral part of the transport network is the inter-relationship with various physical and social

factors, assessment of risk and applying key performance indicators in a practical manner.

Community levels of service measures used in the asset management plan are:

Quality How good is the service?

Function Does it meet users’ needs?

Capacity/Utilisation Is the service over or under used?

The organisation’s current and expected community service levels for Transport Assets are detailed

in Tables 3.4 and 3.5.

Table 3.4: Community Level of Service

Service

Attribute

Service Objective Performance

Measure

Process

Current

Performance

Expected position in 10

years based on current

LTFP

COMMUNITY OUTCOMES

Provide a well maintained and safe transport network that enables users to travel from point A to

point B

COMMUNITY LEVELS OF SERVICE

Quality Provide all weather

access

Customer

complaints

Acceptable Continuing to meet the

service delivery needs

of the community.

Organisational measure

Confidence level

High High High

Function Ensure that the transport

network meets user

requirements for travel

time and availability

Customer

complaints



of the community.

Travel across the

road network is

unrestricted



of the community.


Confidence levels

High High High

Capacity/

Utilisation

Provide appropriate

capacity for traffic

volumes and types

Customer

complaints



of the community.


Confidence levels

High High High

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Service

Attribute

Service Objective Performance

Measure

Process

Current

Performance

Expected position in 10

years based on current

LTFP

Safety Provide safe suitable

roads, free from hazards Number of

incidents



of the community.


Confidence levels

High High High

As an improvement to the Level of Service used in this plan to measure performance of the assets,

it is proposed to expand the Level of Service to include road pavement condition assessment, the

assessment will define the overall condition of the network as “good/fair/poor”. This definition will

be based on the relevant combination of distress (extent and severity) and provided by condition

assessment.

In a strategic sense, this overall road pavement condition will assist in determining future funding

levels required so that the road network delivers the agreed levels of service and achieves its life

expectancy. This overall condition assessment will also assist in formulating appropriate ongoing

maintenance programs.

Council has developed a condition rating model with rating score based on field data collection

which is transferred into a Road Management System program which generates reports on the

road network condition and provides scenario based on various funding models to manage and

maintain the network. A weighting scored is determined for the road network in the following

categories;

Priority – This priority score is used in the modelling to sort roads for treatment in priority order. This is

particularly useful where budgets are limited and the model can assign funds to high priority

segments. The six fields provided for assessment are:

Function Priority – this differentiates roads by a generalised function from a track to a rural arterial.

This function ensures that high use roads are scored higher then low use roads.

Score Function

0 Road Reserve

1 Class 5: Track or laneway (no dwellings)

2 Class 5: Local Access (<5 dwellings)

3 Class 5: Local Access (up to 10 dwellings)

4 Class 4: Local Access (> 10 dwellings)

5 Class 4: Local Collector (Connecting activity nodes)

6 Class 4: Local Collector (Connecting arterial roads)

7 Class 4: Local Link (connecting centres)

8 Class 4: Local Link (connecting townships)

9 Class 3: Rural Arterial Road (mainly non local between towns > 300vpd)

10 Class 2: Designated Freight Route (B Double and HML Route)

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Social Priority – this enables the social importance of the road to be scored. This ensures roads

that have significant community importance are given higher priority than roads leading to a

single dwelling.

Score Social Importance

0 No social importance (no dwelling)

2 Low social importance (less than 5 homes/road)

4 Medium social importance (5-10 dwellings/road)

6 High social importance (greater than 10 dwellings)

8 Very High social importance (bus route and/or link road between centres)

10 Critical social importance (link road between key towns)

Freight Priority – this enables the industry use to be assessed and its associated freight use in the

transport of goods.

Score Freight Use

0 No commercial vehicle use

1 Mainly residential occasional commercial vehicle

2 Mixture of residential and commercial

3 Light Industry (Seasonal)

4 Light Industry( All year round)

5 Medium Industry (Seasonal)

6 Medium Industry (all year round)

7 High Industry use (Seasonal)

8 High Industry use (All year round)

9 Extensive Industry (Seasonal)

10 Extensive Industry (All year round)

Tourist Priority – this enables the tourist use to be assessed which can be particularly important in

Councils that rely on the tourism industry.

Score Tourist Importance

0 No tourist importance

2 Low tourist importance

4 Some tourist importance

6 High tourist importance

8 Very High tourist importance

10 Critical tourist importance

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Economic Development Priority – this enables the future potential of the road for development

and town growth to be flagged to assist in deciding on road surface treatment (e.g. upgrading

from unsealed to sealed).

Score Development Potential

0 No development potential

2 Low development potential

4 Medium development potential

6 Future town growth/residential/industrial development planned

Accident History Priority – where accident history is known then each segment can be assigned

a score based on accident history. This will enable special consideration for treatments.

Score Accident History

0 No accident history

2 Near miss reported

4 Minor

6 Minor repeated

8 Major non-fatal

10 Major fatal

3.5 Technical Levels of Service

Technical Levels of Service - Supporting the community service levels are operational or technical

measures of performance. These technical measures relate to the allocation of resources to service

activities that the organisation undertakes to best achieve the desired community outcomes and

demonstrate effective organisational performance.

Technical service measures are linked to annual budgets covering:

Operations – the regular activities to provide services such as inspections, etc.

Maintenance – the activities necessary to retain an asset as near as practicable to an

appropriate service condition (e.g. road patching, unsealed road grading),

Renewal – the activities that return the service capability of an asset up to that which it had

originally (e.g. frequency and cost of road resurfacing and pavement reconstruction),

Upgrade – the activities to provide a higher level of service (e.g. widening a road, sealing

an unsealed road) or a new service that did not exist previously (e.g. sealing an unsealed

road).

Service and asset managers plan, implement and control technical service levels to influence the

customer service levels.5

Growth in development and a more aware community has resulted in a demand for increased

services, and consequently, the expectations of the Barossa community are predicted to rise.

These expectations and the community's perception of Council's ability to provide services are

impacted significantly by issues related to resource allocation, funding and the possible creation of

5 IPWEA, 2015, IIMM, p 2.23

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new assets measured against existing asset funding gap. While expenditure on road infrastructure

has been increased in past years, asset condition data and future community surveys may indicate

that financial resources are inadequate to maintain infrastructure to a level of service that the

community expects.

The issue of deterioration of the assets resulting from inadequate allocation of resources to

infrastructure maintenance must be considered against the level of revenue Council is able to raise

from rates, charges and grants. Limited revenue growth and rising costs to meet increasing

maintenance and service charges could result in an inability to bridge the funding gap between

revenue and costs. This could be reflected by a further deterioration of assets and infrastructure as

well as a reduction in other services and service levels.

Performance measures and targets for transport assets service criteria is required, and must

consider not only community expectations, strategic goals, and legislative requirements, but

technical standards and Council's ability to allocate sufficient resources to meet measures and

targets.

An integral part, in the establishment of the road classification model, is the inter-relationship with

various physical and social factors, assessment of risk and application of key performance

indicators in a practical manner.

Topography, extent of vegetation, soil conditions, traffic volumes and the type, practical width of

roads, must also be considered

In recognition of deteriorating road infrastructure, a road program has been developed which

identifies renewal of the road surface. Expenditure on the sealed road network was significantly

raised compared to earlier capital works budget immediately following amalgamation. In terms of

cost, best value has been achieved in the cost of road making materials through the assessment of

available quarry materials and its suitability to perform in various road condition environments.

Spray seals for resurfacing in urban areas has generally been discontinued because this type of

treatment in the past has raised community dissatisfaction. A minimum treatment of asphalt overlay

is used where spray seals may not be appropriate and the pavement condition is suitable for this

type of treatment. The use of asphalt increases cost compared to spray seals, however the seal life

is extended.

Sealed and Unsealed Roads:

Council’s sealed road surfacing program is an annual program that involves assessment and

treatments of both the road surface and road pavement. The primary focus is for the

renewal/replenishment of the surface, however small repairs to the road pavement need to occur

prior to the application of the new treatment.

In an ideal environment where funding is not constrained and the condition and the shape of the

roads are good, there are two primary objectives of a resurfacing program. The first is to replenish

or replace the surface of the road when the original service has aged or deteriorated. The second

objective is for the most cost effective, efficient and cost effective treatment to be selected

considering ongoing maintenance cost and the traffic type and volume that the road must

support.

The annual road surfacing program (reseal program) is currently developed by ranking the overall

condition of road segments (as identified by the sealed road surface inspection). This information is

then used following site visits to refine the list and make decisions which include the worst roads,

traffic type and volume, the most appropriate treatment and estimated costs.

The levels of service for road assets have been driven by legislative requirements, Australian

Standards, Regulations, Acts and Council policies that impact the way assets are managed. Levels

- 21 -


of service reflect standards currently in practice in the public realm which have been established

and will regularly be reviewed:

To inform customers of the level of service they could expect

As a focus for the development of Asset Management strategies to meet levels of service

As a measure of the effectiveness of Council’s Asset Management practices and the performance of its plans

To identify the costs and benefits of the services offered

To enable Council and customers to discuss and assess the suitability, affordability and

equality of the existing service level and to determine the impact of increasing or

decreasing this level in future

It is important to note that the annual road resealing and resheeting program is compiled from a

variety of inputs. These inputs are as follows:

10 year replacement program based on the asset expiry date (refer Appendix B)

The output from Councils Road Surface Manager modelling software that calculates

based on available budget and weighted defects of the road surface.

Community feedback.

Political drivers.

Council officer experience, knowledge and expertise.

- 22 -


Deterioration Modelling:

Modelling Curves for Barossa Sealed Roads

Function

Score Road Type Surface Asset type Seal Type

Useful

life -

Years

% of useful life

to reseal /

reseal life

Proposed seal type

for reseal

Number of

Segments

Total

length of

Segments

- metres

Pavement Asset type

Intervention

multiple of

surface

reseals

Pavement

life

10

Class 2:

Designated

Freight Route (B

Double & HML

Route)

Rural

Rural Heavy Use Hotmix Bitumen Surface Heavy use Hotmix 25 64% - (16 yrs) 40mm Hotmix 21 2,368 Rural Heavy Use Hotmix Pavement

Type 4 100

Rural Heavy Use Spray Seal Bitumen

Surface Heavy use Spray 22 68% - (15 yrs) 16/10 Spray Seal 45 35,956

Rural Heavy Use Spray Pavement

Type 4 88

Rural - B Double Route - Normal Use

Hotmix Normal use Hotmix 15 67% - (12 yrs) 40mm Hotmix 4 2,218

Rural B Double Normal Use Hotmix

Pavement Type 4 60

Rural - B Double Route - Normal Use Spray

Seal Normal use Spray 10 67% - (10 yrs) 16/10 Spray Seal 20 16,444

Rural B Double Normal Use Spray

Pavement Type 4 40

Township

Township Heavy Use Hotmix Bitumen

Surface Heavy use Hotmix 25 64% - (16 yrs) 40mm Hotmix 5 1,075

Township Heavy Use Hotmix

Pavement Type 4 100

Township Heavy Use Spray Seal Bitumen

Surface Heavy use Spray 22 68% - (15 yrs) 40mm Hotmix 7 1,627

Township Heavy Use Sprayseal

Pavement Type 4 88

Township Normal Use Hotmix Bitumen

Surface Normal Use Hotmix 30 68% - (15 yrs) 40mm Hotmix 1 120

Township Normal Use Hotmix

Pavement Type 5 150

9

Class 3: Rural

Arterial Road

(mainly non

local traffic

between

centres over

300 vpd)

Rural

Rural Heavy Use Hotmix Bitumen Surface Heavy use Hotmix 25 64% - (16 yrs) 40mm Hotmix 1 49 Rural Heavy Use Hotmix Pavement

Type 4 100


Surface Heavy use Spray 22 68% - (15 yrs) 14/7 Spray Seal 4 2,192


Type 4 88

Rural Normal Use Spray Seal Bitumen

Surface Normal use Spray 25 64% - (16 yrs) 14/7 Spray Seal 44 24,540

Rural Normal Use Spray Pavement

Type 5 125

Rural Normal Use Hotmix Bitumen Surface Normal use Hotmix 28 64% - (18 yrs) 30mm Hotmix 16 6,082 Rural Normal Use Hotmix

Pavement Type 5 140

Township

Township Heavy Use Hotmix Bitumen

Surface Heavy use Hotmix 25 64% - (16 yrs) 40mm Hotmix 20 3,217

Township Heavy Use Hotmix

Pavement Type 4 100

Township Heavy Use Spray Seal Bitumen

Surface Heavy use Spray 22 68% - (15 yrs) 40mm Hotmix 4 1,329

Township Heavy Use Sprayseal

Pavement Type 4 88

- 23 -


Function


Useful

life -

Years

% of useful life

to reseal /

reseal life

Proposed seal type

for reseal

Number of

Segments

Total

length of

Segments

- metres

Pavement Asset type

Intervention

multiple of

surface

reseals

Pavement

life

Township Normal Use Spray Seal Bitumen

Surface Normal use Spray 25 64% - (18 yrs) 30mm Hotmix 20 4,988

Township Normal Use Sprayseal

Pavement Type 5 125


Surface Normal use Hotmix 30 64% - (16 yrs) 20/30mm Hotmix 9 1,525


Pavement Type 5 150

7

Class 4: Local

link road

connecting

centres

Rural


Surface Heavy use spray 22 68% - (15 yrs) 14/7 Spray Seal 1 1,177


Type 4 88




Type 5 125


Pavement Type 5 140

Township


Surface Normal use Hotmix 30 64% - (18 yrs) 30mm Hotmix 1 53


Pavement Type 5 150


Surface Normal use Spray 25 64% - (16 yrs) 20/30mm Hotmix 4 1,713


Pavement Type 5 125

6

Class 4: Local

connector

connecting

arterial roads

Rural

Rural Normal Use Hotmix Bitumen Surface Normal use Hotmix 28 64% - (18 yrs) 30mm Hotmix 1 162 Rural Normal Use Hotmix

Pavement Type 5 140




Type 5 125

Township


Surface Normal use Hotmix 30 64% - (18 yrs) 30mm Hotmix 13 3,034


Pavement Type 5 150


Surface Normal use Spray 25 64% - (16 yrs) 20/30mm Hotmix 4 929


Pavement Type 5 125

- 24 -


Function


Useful

life -

Years

% of useful life

to reseal /

reseal life

Proposed seal type

for reseal

Number of

Segments

Total

length of

Segments

- metres

Pavement Asset type

Intervention

multiple of

surface

reseals

Pavement

life

5

Class 4: Local

connector

connecting

activity nodes

Rural


Pavement Type 5 140




Type 5 125


Surface Heavy use Spray 22 68% - (15 yrs) 14/7 Spray Seal 1 250


Type 4 88

Township




Pavement Type 5 150




Pavement Type 5 125

4

Class 4: Local

access street or

road (greater

than 10

dwellings)

Rural


Pavement Type 5 140




Type 5 125

Township




Pavement Type 5 150




Pavement Type 5 125

Township Normal Use Slurry Seal / Cold

Overlay Surface Normal use Slurry 20 67% - (10 yrs) 20/30mm Hotmix 48 5,960

Township Normal Use Slurry

Pavement Type 5 100

Township Paver Surface Paved 50 Paved 1 34

Township Normal Use Skinny Hotmix

Bitumen Surface (20mm)

Normal Skinny

Hotmix 25 64% - (16 yrs) 20mm Hotmix 24 4,164

Township Normal Use Skinny

Pavement Type 3 75

- 25 -


Function


Useful

life -

Years

% of useful life

to reseal /

reseal life

Proposed seal type

for reseal

Number of

Segments

Total

length of

Segments

- metres

Pavement Asset type

Intervention

multiple of

surface

reseals

Pavement

life

3

Class 5: Local

access street or

road (multiple

dwellings up to

10)

Rural


Surface Heavy use Spray 22 68% - (15 yrs) 14/7 Spray Seal 1 800


Type 4 88


Pavement Type 5 140




Type 5 125

Township




Pavement Type 5 125

2

Class 5: Local

access street or

road (single

dwellings up to

5)

Rural


Surface Heavy use Spray 22 14/7 Spray Seal 1 204


Type 4 88




Type 5 125

Township


Surface Normal use Hotmix 30 64% - (18 yrs) 30mm Hotmix 2 120


Pavement Type 5 150




Pavement Type 5 125

- 26 -


Deterioration Modelling:

Deterioration Modelling Curves for Barossa Sheeted Roads

Function

Score Road Type

Modelling

Curve –

Material

Depth

Standard

life

% worn

when

resheeted

Unit Rate

per sq m

Number

of

Segment

s

Total

length of

Segments

- metres

7

Class 4: Rural Road A -

Local link road

connecting centres 150mm 12 Years 76% $ 6.53 14 11,468

6

Class 4: Rural Road B -

Local connector

connecting arterial

roads

100 mm 12 Years 72% $ 4.59 7 10,099

5

Class 4: Rural Road B –

Local connector

connecting activity

nodes

100mm 15 Years 65% $ 5.09 73 72,003

4


Local access street or

road (greater than 10

dwellings)

100mm 15 Years 65% $ 5.09 69 59,152

Class 4: Township Road


road (greater than 10

dwellings)

100mm 15 Years 71% $ 4.66 29 4,443

- 27 -


Function

Score Road Type

Modelling

Curve –

Material

Depth

Standard

life

% worn

when

resheeted

Unit Rate

per sq m

Number

of

Segment

s

Total

length of

Segments

- metres

3



road (multiple

dwellings up to 10)

75mm 20 Years 72% $ 3.44 83 80,956



road (multiple

dwellings up to 10)

75mm 17 Years 83% $ 2.99 9 1,268

2



road (single dwellings

up to 5)

75mm 28 Years 72% $ 3.44 277 264,211



road (single dwellings

up to 5)

75mm 17 Years 83% $ 2.99 4 815

1


Track or laneway (less

than 2 dwellings) 75mm 28 Years 72% $ 3.44 63 57,386

- 28 -


Grading Frequencies:

Grading Frequencies for Unsealed Roads

Function

Score Road Type

Modelling Curve

– Material Depth

Proposed

number of

grades per

year

Class 4: Rural Road A -

6 7

Local link road connecting centres 150mm


5 6

Local connector connecting arterial roads 100 mm

Class 4: Rural Road B –

4 5

Local connector connecting activity nodes 100mm


Local access street or road (greater than 10

dwellings) 100mm 3

4


Local access street or road (greater than 10

dwellings) 100mm 3


Local access street or road (multiple dwellings up

to 10)

patch 75mm

resheet 75mm 2

3


Local access street or road (multiple dwellings up

to 10)

2


2 Local access street or road (single dwellings up to

5)

patch 75mm

resheet 75mm 1

Class 5: Township Road Local access street or road

(single dwellings up to 5)

1

Class 5: Rural Road Track or laneway (less than 2

dwellings)

B - 0 – as

required

subject to

inspection

1

patch 75mm

- 29 -


Footpaths:

Generally the footpath network is more susceptible to damage resulting from work undertaken by

builders and contractors and from tree root problems rather than the failure of the materials.

Whereas the asset that requires refurbishment may be in good condition, it may be displaced or

lifted causing a safety hazard to occur.

Kerb and Channel:

Capital renewal and upgrade of kerb and channel is generally combined with road pavement

rehabilitation works.

Generally this results from two circumstances:

1. If the kerb and channel has deteriorated to the extent it requires renewal the adjacent road

pavement is often in a similar condition, requiring renewal;

2. Where the abutting road pavement is essentially structurally sound but the kerb and

channel is distressed, it is not practical or cost effective to renew large links of kerb and

channel without works on the road pavement. This is because of the difficulty in matching

grades and levels of the existing pavement.

Where smaller sections of kerb and channel are damaged from deterioration or tree roots cause

restricted stormwater flows, these sections will be removed and reinstated with new kerb and

channel.

This is generally carried out prior to reseal bituminous treatment being applied to the road surface

as part of seal rehabilitation.

Service levels can be defined in terms of:

Providing a safe and satisfactory access;

Maintaining the structural integrity of the footpath;

The type of surface;

Width of pathway;

Degree of accessibility, gradients and crossfall, effective stormwater runoff;

Condition of the path surface, smoothness, cracking, displacement etc.; and

Compliance to requirements of the elderly, frail or disabled community.

Table 3.5 shows the technical level of service expected to be provided under this Asset

Management Plan. The agreed sustainable position in the table documents the position agreed by

Council following the consultation process.

- 30 -


Table 3.5: Technical Levels of Service

Service

Attribute

Service Objective Activity Measure Process Current Performance *

Operations Transport network is safe

for users

Visual inspection Network inspected every

5 years

Transport network is clean

and safe for users

Regular street sweeping Based on sweeping

criteria

Maintenance Periodic visual assessment

to determine condition

Visual inspection Network inspected every

5 years

Maintain surface –

optimum maintenance

Grading frequency in

accordance with road

function table

Achieved

Maintain surface –

optimum maintenance

Resheeting frequency in

accordance with road

function table

Achieved

Condition of network is

sound to maintain function

without obstruction

Complaints Satisfaction within levels

of service

Condition of network is

sound to maintain function

without obstruction

Regular street sweeping Based on sweeping

criteria

Provide Transport network

that is low risk to workers

and the community

Number of injuries /

accidents

Nil per annum attributed

to asset condition

Renewal Apply appropriate useful

life

Useful life review Annual review of useful

life in accordance with

accounting standards

Road Assets 2015 / 2016 Budget $1.293 M

Footpath Assets and Kerb

and Gutter Assets

$300,000

Upgrade/New Increased level of service

as requested by EMs

EM satisfaction Satisfaction within levels

of service

Developer donated assets Cost / metre Review budget and

rates on an annual basis

Developer donated assets Number of assets

donated

Review budget and

rates on an annual basis

Ensure additional

maintenance /

operations costs are

included in future

budgets

Transport network

capacity matches usage

85% of transport assets

meet capacity

requirements

No capacity increases

planned

Sheeted Road Assets 2015 / 2016 Budget $1.383 M

Sealed Road Assets $1.852 M

Footpath Assets and Kerb

and Gutter Assets

$350,000

Note: * Current activities and costs (currently funded).

- 31 -


Transport Assets with Residual Values:

The Barossa Council like many other Councils have been using a residual value on a portion of the

sub components on a select number of transport asset types.

In view of clarification by AASB, discussions with Council's auditor and a high level assessment of

Council's asset register; we believe a second sub-component using a long life to identify the

previous residual value is one of the options going forward. Keeping in mind that the previous

practice of assigning residual values to portions of asset components meant no depreciation would

have been charged or recorded.

Various meetings have occurred with other City Councils (Adelaide City Council and

Campbelltown City Council) to consider other factors, experiences, road usage and local

conditions. As part of Councils application of a longer life, other road types / groups and classes

would need to be created in the asset register to isolate these asset components and apply their

expected useful lives. Factors to consider include (but are not limited to): soil types, construction

methodology, road use & type (e.g. township, transport, arterial, etc.), road materials and road

condition (sample) and traffic volumes.

A road is made of up of component layers, if these layers are broken up into sub-components a

lower layer component could not have a shorter life than an upper layer, it must align with the layer

immediately below it, normally at the a future renewal interval.

As the use of Residual Values in Australia is widespread across Local Government it is hoped that a

range of useful lives per asset type and intervention points is provided by engineers for application

to infrastructure assets (refer to SALGFMG & SALGAG draft paper May 2016: Infrastructure Assets,

Life without Residual Values).

The Barossa Council and Long Life 2 (or sub-component considerations):

The Barossa Council road network is mostly built on suitable soils, which provide a relatively stable

base for the road infrastructure assets.

Council's roads are made up from layers or components, as listed within Asset Accounting Policy

(Policy) and the asset register as components: earthworks, pavement and the surface. The Policy

has been reviewed for each asset type to incorporate the applicable long life period (in some

cases this could be a range) to each sub/second component.

Within the asset register the use of residual values had been assigned to various Infrastructure assets

to reflect parts of asset components that were either expected to last a very long time or part of

the long life 2 (LL2) layer/component is used as in-situ materials when the asset was renewed.

This includes selected transport asset types that require a review of the newly formed LL2 asset

components to ensure the lives (to the best of our understanding) represent the expected life for

these assets. This is to ensure adequate depreciation is being charged through the financials to

match the expected replacements as they occur.

There is correlation within each sub-component to its interval cycle(s) and in particular the asset

underneath must not have a shorter useful life than any above it within the road layers or structures.

The LL2 interval number should be a multiplier or divisible number of the other road layers, e.g. if the

surface sub-component LL1 has an interval of 15 then surface LL2 should be 3-5 times that amount

so 45, 60 or 75 and the layers below i.e. the pavement LL1 would then be 45, 60 or 75 and

pavement LL2 would then be an interval of that amount so 45x4 = 180 etc. (see Modelling Curves

for Barossa Sealed Roads above).

- 32 -


The difficulty being that as Council does not have the history on these replacement intervals. This

will be a judgment call that probably won’t be known in our lifetime so common sense is to be

applied and time will show if the number is too high or low.

Noting a suggestion from the AASB that a percentage of each component might be applicable

where there's is no defined physical change in the material or construction to apportion the split

from LL1 to LL2.

The residual value (RV) % portion applied to each LL2 will be taken in the first instance from existing

RVs' from the asset register and will only change as/if further information comes to hand to re-visit

this allocation. The LL2s' including surface (sealed roads) this will be allocated using advice from the

Councils engineering and asset road building knowledge and experience.

Considering these and other factors Council's road network in the main, should, if surface

replacement is undertaken as/when required these asset components should provide adequate

service levels for lower levels or components for a substantial time.

Earthwork

The earthwork (also referred to as the subgrade) is the original soil layer normally clay soils.

Council "Road earthworks” fall within the scope of Interpretation 1055 “Accounting for Road

Earthworks" and therefore is not depreciated.

Pavement

Pavement depth ranges from 100mm to 300mm in depth and is constructed by compacting rubble

to provide a solid base for the seal or surface layer.

If the surface layers are maintained and replacement intervals are kept in check (along with

drainage) the pavement should remain intact for a long time.

When the surface layer requires complete removal the normal practice is to remove a section of

the pavement, compacting and rebuilding this before a new surface layer is applied.

As only a section of the upper layer pavement is replaced a second or sub-component or lower

level will be created to help identify and isolate this longer life pavement.

This is referred to as component 2 or long life 2 (LL2).

Referring to AASB Alert no. 172 29 May 2015 “a percentage of the asset rather than the physical

materials compromising the asset”, might be considered that has an assigned renewal interval that

is relative to the other asset components reflecting the period in which replacement is expected to

occur.

Where road location(s) require a more frequent surface renewal interval, the upper level pavement

(or LL1) interval typically will also be a lower number or more frequent.

The short-life and long-life parts are not necessarily required to be physically identifiable i.e. they

could be based on difference between replacement cost and the cost of the renewal treatment.

Surface

The surface component has varying replacement intervals depending on its use, locality and local

conditions.

When the surface layer is to be renewed (the upper layer or component of the surface or LL1) there

is a section of the surface or a second component, this layer remaining this will also be referred to

as a sub-component or LL2.

- 33 -


The Surface LL2 has a similar use as the Pavement LL1 in that its purpose is to protect and extend

the life of the pavement, whereas the surface LL1 use is mostly as a wearing surface and needs to

be renewed more frequently (not illustrated).

Summary - outcome for 15-16

Councils preliminary on LL2s' and comparisons to depreciation predictions from Conquest have

shown that it is unlikely that application of LL2 into the asset register will have a material effect to

the depreciation amount.

The diagram below represents the breakdown of the Pavement component of the road into the

two components: Long Life 1 and Long Life 2.

Council’s asset register has not yet been updated to reflect these LL2 components at this stage.

Preliminary estimates from modelling have shown the depreciation movement from the application

of LL2 is likely to be insignificant / immaterial.

It is anticipated that further work will be undertaken throughout Australia to ascertain an

appropriate range of useful lives for each asset type taking into consideration local conditions,

material sources and construction methodologies.

Earth

Pavement LL2

Pavement LL1

Surface Footpath

Pro

pert

y B

ou

nd

ary

Pro

pert

y B

ou

nd

ary

Footpath

- 34 -


Example of application of LL2 to sealed & unsealed road:

Sealed Road - typical asset components

Useful Life

Component Complete

LL1 LL2

Surface

Year for the LL1 replacement of this asset component - surface (15

used in this example, others also include 10, 22, 25 and 28) 15

Every 4 reseal the remaining surface as well as part of the

pavement (LL1) is removed and re-constructed 60

Interval for LL2 replacement of this asset component (A 4 interval is

used in this example, IAMPS record 3, 4 and 5) 4

Pavement

Every 4 interval period of a completely new reseal construction the

remaining surface and a part of the pavement (LL1) is removed

and re-constructed

60

Interval for LL2 replacement of this asset component (A 4 interval

period used in this example, asset assessments may also include

3,4 or 5)

240

Interval for LL2 replacement of this asset component (A 4 interval is

used in this example, IAMPS record 3, 4 and 5) 4

Earthwork N/A

Unsealed Road - typical asset components

Useful Life

Component Component

LL1 LL2

Sheeted surface (rural sheeted surface function 3 used in this

example) 15

Every 14 interval period of a completely new re-sheet construction

for LL1 the part of the Sheeting component LL2 is removed and re-

constructed

210

Interval for LL2 replacement of this asset component (14 used in

this example) 14

Earthwork N/A

- 35 -


4. FUTURE DEMAND

4.1 Demand Drivers

Drivers affecting demand include population change, changes in demographics, seasonal factors,

vehicle ownership rates, consumer preferences and expectations, technological changes,

economic factors, agricultural practices, environmental awareness for example.

The impact of these trends are regularly examined and demand management strategies are

recommended as a technique to modify demand without compromising customer expectations.

The Population Projections by Local Government Area predicts the Estimated Resident Population

will increase. Nuriootpa is expected to accommodate the majority of growth in the next 5-10 years

as it contains the largest amount of available, ‘development ready’ or residential zoned land.

In forecasting on the future integration of land use and transport asset planning, the following are

reviewed:

Land use and travel demands

Regional transport demands

Changes to National Heavy Vehicle Regulations (weights and limits)

Proposed land divisions

Proposed property / housing developments

Urban Boundary Growth

Analysis of areas designated for future development

Local planning controls

4.2 Demand Forecast

The present position and projections for demand drivers that may impact future service delivery

and utilisation of assets are identified and documented in Table 4.3.

4.3 Demand Impact on Assets

The impact of demand drivers that may affect future service delivery and utilisation of assets are

shown in Table 4.3.

Table 4.3: Demand Drivers, Projections and Impact on Services

Demand drivers Present position Projection Impact on services

Population 23,490 (Community

Plan Information

2016)

29,584 by 2036 Demand for more sealed roads

and higher quality services from

Transport Assets.

Demographics Average growth rate

of 1.64% per year

between 1991-2011.

Future growth rate

will depend on

timing of rezoning

and servicing of

additional land

located in existing

It is anticipated a future growth

rate of around 1.64% per year

(within existing towns) will have

negligible impact on existing

services (within the 20 year

planning timeframe for this

- 36 -


Demand drivers Present position Projection Impact on services

townships or within

areas at Concordia

and Kalbeeba

identified in the 30-

year Plan as

“existing urban

land” or as a “long

term urban growth

area”.

IAMP) primarily because this

growth is based on infill aligned

with existing infrastructure. In

the long term should a new

town be provided, infrastructure

will be constructed by the

developer. The additional

revenue from this growth could

offset renewal and rehabilitation

costs for existing infrastructure

across the Council area.

If Concordia is developed, as a

complete “greenfield” site it will

require all appropriate services

and infrastructure.

Residential

Development

Limited by land

supply and township

boundaries.

Aged

accommodation.

Housing needed for

workers.

Expanded towns

and new town.

Augmentation of existing or new

infrastructure, services and

stormwater disposal.

Increased demands and

inability to provide affordable

housing.

Rural Living Range of lot sizes 0.5

hectare – 6 hectare.

Viability and

manageability of

large lots will result

in pressure to

reduce sizes.

Additional service and

infrastructure requirements in

rural localities.

Industrial

Development

Scattered rural

locations often

displacing

agricultural land e.g.

Wineries.

Regional location

needed to prevent

impacts and use of

significant

agricultural areas.

Road infrastructure, heavy

transport access, electricity and

water supply/drainage.

Agriculturally

productive

areas

Character

preservation

legislation in place

which restricts future

residential

development in rural

areas.

Continued

production

affected by

fragmented land

holding sizes and

water availability,

access issues,

strategies and

policies need to

acknowledge

larger holdings and

use of smaller

holdings.

Encroachment of conflicting

land uses resulting in interface

and buffer issues. Road and

infrastructure provision.

Each serviced town currently has land available for residential development, comprising vacant

lots, and land which is zoned for development but not yet the subject of a development proposal.

Within each town, sufficient capacity exists to accommodate the anticipated future demand (i.e.

proposed lots and zoned land yet to be developed).

- 37 -


Mount Pleasant is slightly different in that it has several large areas zoned “Deferred Urban” which

will need to be rezoned prior to any residential development. Future upgrades will be required to

accommodate development within those areas.

Council has undertaken modelling in respect to future population projections and future housing

demand. A lot yield analysis has been undertaken whereby it projected the ultimate number of lots

within zoned areas and applied 15 years of dwelling approvals (how long the supply might last in

each town). Naturally there are many unknowns – e.g. when supply in Tanunda is exhausted where

will that unmet demand ‘go’; would it ‘transfer’ to Nuriootpa or Angaston or another council?

In respect to Rural Living zoned land, there will be no further intensification of those. Council are

currently undertaking a study to determine if it can/should accommodate infill development in the

form of smaller lots.

Concordia is unique in that any development there will require completely new infrastructure which

would not impact on existing transport asset infrastructure. However, development at Concordia

could impact on Councils capacity to administer and maintain any new assets.

4.4 Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets,

upgrading of existing assets and providing new assets to meet demand and demand

management. Demand management practices include non-asset solutions, insuring against risks and managing failures.

Non-asset solutions focus on providing the required service without the need for the organisation to

own the assets and management actions including reducing demand for the service, reducing the

level of service (allowing some assets to deteriorate beyond current service levels) or educating

customers to accept appropriate asset failures6. Examples of non-asset solutions include providing

services from existing infrastructure that may be in another community area or commercial premises.

Opportunities identified to date for demand management are shown in Table 4.4. Further opportunities will be developed in future revisions of this asset management plan.

Table 4.4: Demand Management Plan Summary

Demand Driver Impact on Services Demand Management Plan

Increased traffic

flows

Increased load on the

transport network

testing capacity

Continually assess network capacity and traffic

flows. Address network capacity issues with

improved capacity.

4.5 Asset Programs to meet Demand

The new assets required to meet growth will be acquired free of cost from land developments and

constructed/acquired by the organisation. New assets constructed/acquired by the organisation

are discussed in Section 5.5. The cumulative value of new contributed and constructed asset values are summarised in Figure 1.

It is important to note that some unsealed roads may be upgraded to become sealed surfaces. An assessment will be undertaken at an appropriate time to determine if this asset upgrade is required.

6 IPWEA, 2015, IIMM, Table 3.4.1, p 3|89.

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Figure 1: Upgrade and New Assets to meet Demand

- 39 -


Acquiring these new assets will commit the organisation to fund ongoing operations, maintenance

and renewal costs for the period that the service provided from the assets is required. These future

costs are identified and considered in developing forecasts of future operations, maintenance and renewal costs in Section 5.

Barossa: Upgrade & New Assets to meet Demand Transport

Data

Category Year Contributed* Constructed*

Transport_S1_V3 2015 $200 $1,033

Transport_S1_V3 2016 $401 $2,422

Transport_S1_V3 2017 $601 $2,618

Transport_S1_V3 2018 $802 $2,822

Transport_S1_V3 2019 $1,003 $3,037

Transport_S1_V3 2020 $1,205 $3,258

Transport_S1_V3 2021 $1,406 $3,486

Transport_S1_V3 2022 $1,608 $3,722

Transport_S1_V3 2023 $1,810 $3,965

Transport_S1_V3 2024 $2,012 $4,217

Transport_S1_V3 2025 $2,214 $4,639

Transport_S1_V3 2026 $2,417 $5,061

Transport_S1_V3 2027 $2,619 $5,483

Transport_S1_V3 2028 $2,822 $5,904

Transport_S1_V3 2029 $3,025 $6,326

Transport_S1_V3 2030 $3,229 $6,748

Transport_S1_V3 2031 $3,432 $7,170

Transport_S1_V3 2032 $3,636 $7,591

Transport_S1_V3 2033 $3,840 $8,013

Transport_S1_V3 2034 $4,044 $8,435

*all dollar values in ($'000)'s

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5. LIFECYCLE MANAGEMENT PLAN

Initial capital cost constitutes a significant up-front cost and often dominate the decision-making

process when acquiring new assets. However the ongoing recurrent expenditures (including

depreciation) usually represent a high portion of the total life-cycle costs of many assets. It is

important that they be included in the financial analysis undertaken to evaluate asset investment

options.

There may also be substantial costs associated with disposal at the end of an assets service life (e.g.

clean-up or demolition costs).

The way an asset is acquired or created may have a great impact on its future operation,

maintenance, or even disposal.

The Barossa Council, as custodians of the transport network, are charged with the responsibility to

ensure that the asset continues to function and meet the community needs and expectations as

well as maintaining asset in safe and usable condition within a reasonable duty of care.

In all cases, the asset functionality and asset maintenance targets need to be clearly defined with

the community (Users) and the asset service provider (Council) to determine the “ fit for purpose”

having regard to practicality and economics. That is, a level of service provided within a

reasonable duty of care in an affordable financial sustainable manner that considers community

expectations in regard to safety, and overall condition of the Transport network.

Asset functionality as a “level of service” to the community must take into consideration such

factors as, life cycle, capability and capacity, risk management and strategic compliance to the

needs and expectations of the overall community.

Asset maintenance “levels of service” provide for the day - to - day maintenance programs to

ensure that the asset operations are safe within practical constraints, maintain to perform targets

for day - to - day use and is managed and maintained to minimise environmental risk and

protection of residents.

The structure of maintenance and capital works is represented by the following diagram:

Transport

Categories

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5.1 Background Data

5.1.1 Physical parameters

The assets covered by this asset management plan are shown in Table 2.1.

The age profile of the assets include in this Asset Management Plan is shown in Figure 2.

All Transport:

- All Transport Assets

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Footpaths:

Figure 2: Asset Age Profile

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Kerb and Gutter:

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Rural Pavement:

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- 48 -


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Township Pavement:

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- 51 -


- 52 -


Rural Sheeted Surface:

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- 54 -


Rural Sealed Surface:

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- 56 -


- 57 -


Township Sheeted Surface:

- 58 -


- 59 -


Township Sealed Surfaces:

- 60 -


- 61 -


- 62 -


Car Parks:

- 63 -


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Bike Path Surface and Pavement:

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5.1.2 Asset capacity and performance

Council’s services are generally provided to meet design standards where these are available.

Council's performance in the delivery of treated waste water services is monitored through key

performance indicators.

Level of Service (LoS) statements provide measurable performance indicators, describing the

means of delivering the desired outcomes. The key service areas are:

Capability of service

Service sustainability

Quality of service (responsiveness)

Cost effectiveness

Customer service/customer satisfaction

Locations where deficiencies in service performance are known are detailed in Table 5.1.2.

Table 5.1.2: Known Service Performance Deficiencies

Location Service Deficiency

Rural formed road network Sealing of unsealed road network will be determined based on

future demand for alternate traffic destinations

Stormwater function and capacity needs to be assessed to

ensure effective drainage to protect transport asset

Rural sealed road network Based on Councils capacity to identify backlog on rural road

resealing a review will be undertaken to ascertain any further

deficiencies and any rural roads requiring sealing.

Sealed road width needs to be increased to improve road safety

and reduce edge break defects and ongoing maintenance

costs

Road shoulder maintenance is insufficient and needs to be

programmed to improve road safety and reduce edge break

defects and ongoing maintenance costs

Due to freight demand (construction of NEXY and closure of

Penrice rail track), signs of accelerated deterioration of the

Heavy Freight Route is evident. This has been confirmed by

analysis on a 10 km section of Stockwell Road.

Footpath Network Access to network

Connectivity between old and new footpath networks

Kerb and Gutter Invert capacity and deformation of kerb channel

Rural formed road network Sealing of unsealed road network will be determined based on

future demand for alternate traffic destinations

Stormwater function and capacity needs to be assessed to

ensure effective drainage to protect transport asset

The above service deficiencies were identified by Council Engineering Officers.

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5.1.3 Asset condition

Condition is monitored as below:

Service Objective Activity

Measure

Process

Current

Performance

Methodology

Periodic visual assessment to

determine condition of

Transport network

visual

inspection

Rolling condition

assessment

program based

on asset type

periodically (but

at least every 5

years to apply

with accounting

standard

requirements).

Resourcing levels determine if

inspection is undertaken by

specialist internal team

members utilising Conquest

Mobile or by specialist

maintenance and inspection

contractor or consulting firm.

The condition profile of our assets is shown in Figure 3.

Figure 3: Asset Condition Profile

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Condition is measured using a 1 – 5 grading system7 as detailed in Table 5.1.3.

Table 5.1.3: Simple Condition Grading Model

Condition

Grading

Description of Condition

1 Very Good: only planned maintenance required

2 Good: minor maintenance required plus planned maintenance

3 Fair: significant maintenance required

4 Poor: significant renewal/rehabilitation required

5 Very Poor: physically unsound and/or beyond rehabilitation

Council will be undertaking a sealed road condition audit in the 16/17 Financial Year.

Other than a 10 km section of the heavy freight route along Stockwell Road, Council has not

undertaken a detailed condition assessment of its pavement assets.

5.1.4 Asset valuations

The value of assets recorded in the asset register as at 30 June 2015 covered by this asset management plan is shown below. Assets are valued at fair value.

Current Replacement Cost $200.3 M

Depreciable Amount $200.3 M

Depreciated Replacement Cost8 $143.4 M

Annual Depreciation Expense $3 M

The Transport Network was valued as at 1 July 2014 using unit rates provided by Tonkin Consulting.

Major changes from previous valuations are due to increases in unit rates, improvements in the accuracy of assumptions and improved accuracy of the data.

Various ratios of asset consumption and expenditure have been prepared to help guide and gauge asset management performance and trends over time.

Rate of Annual Asset Consumption 1.50%

Rate of Annual Asset Renewal 1.90%

Rate of Annual Asset Upgrade 0.50%

Rate of Asset Upgrade (Including Contributed Assets) 0.60%

Asset renewals as percentage of consumption 121.30%

Percentage Increase in asset stock 0.60%

5.1.5 Historical Data

Historical data on the physical location, dimensions and civil works are located in the Works and

Engineering Department and Council’s Electronic Document Records Management System

(EDRMS).

7 IPWEA, 2015, IIMM, Sec 2.5.4, p 2|80. 8 Also reported as Written Down Current Replacement Cost (WDCRC).

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Historical Financial data can be found here:

https://www.barossa.sa.gov.au/sections/council/financial-documents/annual-financial-statements

Council’s Corporate Mapping System holds the spatial representation of the dataset.

5.2 Infrastructure Risk Management Plan

An assessment of risks associated with service delivery from infrastructure assets has identified

critical risks that will result in loss or reduction in service from infrastructure assets or a ‘financial

shock’ to the organisation. The risk assessment process identifies credible risks, the likelihood of the

risk event occurring, the consequences should the event occur, develops a risk rating, evaluates

the risk and develops a risk treatment plan for non-acceptable risks.

Critical risks, being those assessed as ‘Very High’ - requiring immediate corrective action and ‘High’

– requiring prioritised corrective action identified in the Infrastructure Risk Management Plan,

together with the estimated residual risk after the selected treatment plan is operational are summarised in Table 5.2. These risks are reported to management and Council.

Table 5.2: Critical Risks and Treatment Plans

Service or Asset at

Risk

What can Happen Risk Rating

(VH, H)

Risk Treatment Plan Residual

Risk *

Roads Closure / Damage

due to storm event

High Increased planned inspection and

cleaning frequency of stormwater

network and ongoing capacity

review

Moderate

Note * The residual risk is the risk remaining after the selected risk treatment plan is operational.

Some challenges facing the organisation are:

https://www.barossa.sa.gov.au/sections/council/financial-documents/annual-financial-statements

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5.3 Routine Operations and Maintenance Plan

Operations include regular activities to provide services such as public health, safety and amenity,

e.g. street sweeping and street lighting.

Routine maintenance is the regular on-going work that is necessary to keep assets operating,

including instances where portions of the asset fail and need immediate repair to make the asset

operational again.

5.3.1 Operations and Maintenance Plan

Operations activities affect service levels including quality and function through street sweeping

frequency, intensity and spacing of street lights.

Maintenance includes all actions necessary for retaining an asset as near as practicable to an

appropriate service condition including regular ongoing day-to-day work necessary to keep assets

operating, e.g. road patching but excluding rehabilitation or renewal. Maintenance may be

classified into reactive, planned and specific maintenance work activities.

Reactive maintenance is unplanned repair work carried out in response to service requests and

management/supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance

management system (MMS). MMS activities include inspection, assessing the condition against

failure/breakdown experience, prioritising, scheduling, actioning the work and reporting what was

done to develop a maintenance history and improve maintenance and service delivery

performance.

Specific maintenance is replacement of higher value components/sub-components of assets that

is undertaken on a regular cycle including repainting, replacing air conditioning units, etc. This work

falls below the capital/maintenance threshold but may require a specific budget allocation.

Actual past maintenance expenditure is shown in Table 5.3.1.

Table 5.3.1: Maintenance Expenditure Trends

Maintenance Expenditure

Year Operations

(M)

Planned

Maintenance

Reactive

Maintenance

Total

(M)

2012/2013 $1.430 $646 $291 $2.077 Actual

2013/2014 $1.655 $344 $285 $2.284 Actual

2014/2015 $1.718 $377 $294 $2.389 Actual

2015/2016 $1.620 $658 $604 $2.882 Budgeted

2016/2017 $1.613 $690 $636 $2.939 Budgeted

Operations work is currently 56% of total maintenance expenditure (15/16 Financial Year budgeted

expenditure).

Reactive Maintenance work is currently 21% of total maintenance expenditure (15/16 Financial

Year budgeted expenditure).

Planned Maintenance work is currently 23% of total maintenance expenditure (15/16 Financial Year

budgeted expenditure).

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Maintenance expenditure levels are considered to be adequate to meet projected service levels,

which may be less than or equal to current service levels. Where maintenance expenditure levels

are such that will result in a lesser level of service, the service consequences and service risks have

been identified and service consequences highlighted in this Asset Management Plan and service

risks considered in the Infrastructure Risk Management Plan.

Assessment and prioritisation of reactive maintenance is undertaken by Council staff using

experience and judgement and is based on the inputs into the Customer Request Management

(CRM) System.

5.3.2 Operations and Maintenance Strategies

The organisation will operate and maintain assets to provide the defined level of service to

approved budgets in the most cost-efficient manner. The operation and maintenance activities

include:

Scheduling operations activities to deliver the defined level of service in the most efficient

manner,

Maintaining a current infrastructure risk register for assets and present service risks associated

with providing services from infrastructure assets and reporting Very High and High risks and

residual risks after treatment to management and Council,

Reviewing current and required skills base and implementing workforce training and

development to meet required operations and maintenance needs,

Reviewing asset utilisation to identify underutilised assets and appropriate remedies, and

over utilised assets and customer demand management options,

Maintaining a current hierarchy of critical assets and required operations and maintenance

activities,

Developing and regularly review appropriate emergency response capability,

Reviewing management of operations and maintenance activities to ensure Council is

obtaining best value for resources used.

Asset hierarchy

An asset hierarchy provides a framework for structuring data in an information system to assist in

collection of data, reporting information and making decisions. The hierarchy includes the asset

class and component used for asset planning and financial reporting and service level hierarchy

used for service planning and delivery.

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The asset hierarchy in the Corporate Asset Management System is represented below:

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Example of Rural Roads hierarchy:

Example of Township Road hierarchy:

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The organisation’s service hierarchy is shown is Table 5.3.2.

Table 5.3.2: Asset Service Hierarchy

Service Hierarchy Service Level Objective

Township Transport network Provide a safe, smooth, well maintained and all weather township transport

network that enables users to travel from point A to point B at a reasonable

speed.

Ensure good drainage that protects and maximises the life of all

components of the asset.

Rural Transport network Provide a safe, smooth, well maintained and all weather rural transport

network that enables users to travel from point A to point B at a reasonable

speed.



Footpath network Provide a safe, well interconnected, well maintained and suitably surfaced

footpath network that enables users to travel from point A to point B.

Kerb and Gutter Provide a structurally sound and aesthetically pleasing kerb and water

table network that enables the free and unrestricted flow of surface run off

into appropriate stormwater systems

Car Parks Provide off-street parking on a well maintained and homogenous surface

at an appropriate capacity for its function and usage.



Critical Assets

Critical assets are those assets which have a high consequence of failure but not necessarily a high

likelihood of failure. By identifying critical assets and critical failure modes, organisations can target

and refine investigative activities, maintenance plans and capital expenditure plans at the

appropriate time.

Operations and maintenances activities may be targeted to mitigate critical asset failure and

maintain service levels. These activities may include increased inspection frequency, higher

maintenance intervention levels, etc. Critical asset failure modes and required operations and

maintenance activities are detailed in Table 5.3.2.1.

Table 5.3.2.1: Critical Assets and Service Level Objectives

Critical Assets Critical Failure Mode Operations & Maintenance Activities

Township Transport

network

Loss of sealed surface and

increase in surface

roughness

Resurfacing of sealed surface, continuous network

monitoring for operational performance including

corrective maintenance as required and within

budget allocations

Rural Transport

network

Loss of sheeted surface and

all weather access

Resheeting of rural road surface, continuous

monitoring including corrective maintenance as

required and within budget allocations

Footpath network Loss of ability to traverse /

access

Resurfacing of footpath surfaces, continuous network

monitoring for operational performance including

corrective maintenance as required and within

budget allocations

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Critical Assets Critical Failure Mode Operations & Maintenance Activities

Kerb and Gutter Channel blockage and

flooding

Street sweeping program and condition monitoring

for operational performance including corrective

maintenance as required and within budget

allocations

Car Parks Loss of sealed surface and

increase in surface

roughness

Continuous monitoring including corrective

maintenance as required and within budget

allocations

Standards and specifications

Maintenance work is carried out in accordance with the following Standards and Specifications.

Refer 3.3 – Legislative Requirements

5.3.3 Summary of future operations and maintenance expenditures

Future operations and maintenance expenditure is forecast to trend in line with the value of the

asset stock as shown in Figure 4. Note that all costs are shown in current 2015 dollar values (i.e. real

values).

Figure 4: Projected Operations and Maintenance Expenditure

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Barossa: Projected Operations & Maintenance Expenditure Transport Data

Category Year Maintenance* Operations* Budget*

Transport_S1_V3 2015 $1,262 $1,880 $3,142

Transport_S1_V3 2016 $1,332 $1,892 $3,204

Transport_S1_V3 2017 $1,343 $1,907 $3,204

Transport_S1_V3 2018 $1,345 $1,910 $3,204

Transport_S1_V3 2019 $1,348 $1,914 $3,204

Transport_S1_V3 2020 $1,351 $1,918 $3,204

Transport_S1_V3 2021 $1,353 $1,922 $3,204

Transport_S1_V3 2022 $1,356 $1,926 $3,204

Transport_S1_V3 2023 $1,359 $1,930 $3,204

Transport_S1_V3 2024 $1,362 $1,934 $3,204

Transport_S1_V3 2025 $1,359 $1,938 $3,198

Transport_S1_V3 2026 $1,363 $1,944 $3,198

Transport_S1_V3 2027 $1,367 $1,950 $3,198

Transport_S1_V3 2028 $1,371 $1,956 $3,198

Transport_S1_V3 2029 $1,375 $1,962 $3,198

Transport_S1_V3 2030 $1,379 $1,968 $3,198

Transport_S1_V3 2031 $1,383 $1,974 $3,198

Transport_S1_V3 2032 $1,388 $1,980 $3,198

Transport_S1_V3 2033 $1,392 $1,985 $3,198

Transport_S1_V3 2034 $1,396 $1,991 $3,198


Deferred maintenance, i.e. works that are identified for maintenance and unable to be funded are to be included in the risk assessment and analysis in the Infrastructure Risk Management Plan.

Maintenance is funded from the operating budget where available. This is further discussed in

Section 6.2.

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5.4 Renewal/Replacement Plan

Renewal and replacement expenditure is major work which does not increase the asset’s design

capacity but restores, rehabilitates, replaces or renews an existing asset to its original or lesser

required service potential. Work over and above restoring an asset to original service potential is

upgrade/expansion or new works expenditure.

5.4.1 Renewal plan

Assets requiring renewal/replacement are identified from one of three methods provided in the ‘Expenditure Template’.

Method 1 uses Asset Register data to project the renewal costs using acquisition year and

useful life to determine the renewal year, or

Method 2 uses capital renewal expenditure projections from external condition modelling

systems, or

Method 3 uses a combination of average network renewals plus defect repairs in the Renewal Plan and Defect Repair Plan worksheets on the ‘Expenditure template’.

Method 1 was used for this asset management plan.

The useful lives of assets used to develop projected asset renewal expenditures are shown in Table 5.4.1. Asset useful lives were last reviewed by Tonkin Consulting as at 1 July 2014.

Table 5.4.1: Useful Lives of Assets

Type Sub-Classification/ Component

Useful Life

Range

(years)

Sealed Roads

Sealed Roads - Earth N/A

Sealed Roads – Pavement (includes shoulders) - 2 components 40– 150

180 - 600

Sealed Roads – Surface - 2 components 10 – 30

40 - 150

Sheeted Roads Sheeted Roads – Earth 12 - 28

Sheeted Roads – Pavement or Surface - 2 components 168 - 392

Unformed Roads Unformed Roads - Earth N/A

Footpaths / Kerbs /

Car park Structures

Carpark Surfaces - 2 components 30 – 50

60 - 100

Footpaths 30 - 100

Kerb 70 - 100

5.4.2 Renewal and Replacement Strategies

The organisation will plan capital renewal and replacement projects to meet level of service objectives and minimise infrastructure service risks by:

Planning and scheduling renewal projects to deliver the defined level of service in the most

efficient manner,

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Undertaking project scoping for all capital renewal and replacement projects to identify:

o the service delivery ‘deficiency’, present risk and optimum time for

renewal/replacement,

o the project objectives to rectify the deficiency,

o the range of options, estimated capital and life cycle costs for each option that

could address the service deficiency,

o and evaluate the options against evaluation criteria adopted by the organisation,

and

o select the best option to be included in capital renewal programs,

Using ‘low cost’ renewal methods (cost of renewal is less than replacement) wherever

possible,

Maintaining a current infrastructure risk register for assets and service risks associated with

providing services from infrastructure assets and reporting Very High and High risks and

residual risks after treatment to management and Council,

Reviewing current and required skills base and implementing workforce training and

development to meet required construction and renewal needs,

Maintaining a current hierarchy of critical assets and capital renewal treatments and

timings required ,

Reviewing management of capital renewal and replacement activities to ensure Council is


Renewal ranking criteria

Asset renewal and replacement is typically undertaken to either:

Ensure the reliability of the existing infrastructure to deliver the service it was constructed to

facilitate, or

To ensure the infrastructure is of sufficient quality to meet the service requirements (e.g. to meet capacity requirements).9

It is possible to get some indication of capital renewal and replacement priorities by identifying assets or asset groups that:

Have a high consequence of failure,

Have a high utilisation and subsequent impact on users would be greatest,

The total value represents the greatest net value to the organisation,

Have the highest average age relative to their expected lives,

Are identified in the Asset Management Plan as key cost factors,

Have high operational or maintenance costs, and Where replacement with modern equivalent assets would yield material savings.10

The ranking criteria used to determine priority of identified renewal and replacement proposals is detailed in Table 5.4.2.

9 IPWEA, 2015, IIMM, Sec 3.4.4, p 3|91. 10 Based on IPWEA, 2015, IIMM, Sec 3.4.5, p 3|97.

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Table 5.4.2: Renewal and Replacement Priority Ranking Criteria

Criteria Weighting

Programmed renewal / replacement program generated from Road Surface

Modeller (RSM) software

30%

Road segments identified from routine inspection 30%

Social demand for renewal / replacement 20%

Political demand for renewal / replacement 20%

Total 100%

Renewal and replacement standards

Renewal work is carried out in accordance with the following Standards and Specifications.

Refer 3.3 – Legislative Requirements

5.4.3 Summary of future renewal and replacement expenditure

Projected future renewal and replacement expenditures are forecast to increase over time as the

asset stock increases from growth. The expenditure is summarised in Figure 5. Note that all amounts

are shown in real values.

The projected capital renewal and replacement program is shown in Appendix B.

Figure 5: Projected Capital Renewal and Replacement Expenditure

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Barossa - Projected Capital Renewal Expenditure Transport Data

Category Year Renewal Cost

Transport_S1_V2 2010 $0

Transport_S1_V2 2011 $1,538

























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- 81 -


Barossa - Projected Capital Renewal Expenditure (Transport_S1_V5) Data

Category Year Renewal Cost





















*all dollar values in ($'000)'s*

Unfunded Renewals Year Renewal Cost






Total $3,419

*all Dollar Values in ($'000)'s*

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Deferred renewal and replacement, i.e. those assets identified for renewal and/or replacement

and not scheduled in capital works programs are to be included in the risk analysis process in the

Risk Management Plan.

Renewals and replacement expenditure in the organisation’s capital works program will be

accommodated in the Long Term Financial Plan. This is further discussed in Section 6.2.

Unfunded renewals are the “backlog” of works. This can be somewhat addressed by ongoing

condition assessment to determine asset renewal and replacement.

5.5 Creation/Acquisition/Upgrade Plan

New works are those works that create a new asset that did not previously exist, or works which

upgrade or improve an existing asset beyond its existing capacity. They may result from growth,

social or environmental needs. Assets may also be acquired at no cost to the organisation from

land development. These assets from growth are considered in Section 4.4.

5.5.1 Selection criteria

New assets and upgrade/expansion of existing assets are identified from various sources such as

elected member or community requests, proposals identified by strategic plans or partnerships

with other organisations. Candidate proposals are inspected to verify need and to develop a

preliminary renewal estimate. Verified proposals are ranked by priority in accordance with the

Bid Analysis Tool (BAT) and available funds (as determined in the annual budget process and in

accordance with the adopted Long Term Financial Plan) and scheduled in future works

programs. The priority ranking criteria is detailed below.

Table 5.5.1: New Assets Priority Ranking Criteria

Criteria Weighting

Social demand for sealing roads in close proximity to rural and township links 25%

Requirement to upgrade heavy freight route to facilitate the bypass of major

townships

75%

Total 100%

5.5.2 Capital Investment Strategies

The organisation will plan capital upgrade and new projects to meet level of service objectives by:

Planning and scheduling capital upgrade and new projects to deliver the defined level of

service in the most efficient manner,

Undertake project scoping for all capital upgrade/new projects to identify:

o the service delivery ‘deficiency’, present risk and required timeline for delivery of the

upgrade/new asset,

o the project objectives to rectify the deficiency including value management for

major projects,

o the range of options, estimated capital and life cycle costs for each options that

could address the service deficiency,

o management of risks associated with alternative options,

o and evaluate the options against evaluation criteria adopted by Council, and

o select the best option to be included in capital upgrade/new programs,

Review current and required skills base and implement training and development to meet

required construction and project management needs,

Review management of capital project management activities to ensure Council is


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Standards and specifications for new assets and for upgrade/expansion of existing assets are the

same as those for renewal shown in Section 5.4.2.

5.5.3 Summary of future upgrade/new assets expenditure

Projected upgrade/new asset expenditures are summarised in Figure 6. The projected

upgrade/new capital works program is shown in Appendix C. All amounts are shown in real values.

Figure 6: Projected Capital Upgrade/New Asset Expenditure

Expenditure on new assets and services in the organisation’s capital works program will be accommodated in the Long Term Financial Plan. This is further discussed in Section 6.2.

5.6 Disposal Plan

Disposal includes any activity associated with disposal of a decommissioned asset including sale,

demolition or relocation.

Council is not planning to dispose of any Transport network assets.

5.7 Service Consequences and Risks

The organisation has prioritised decisions made in adopting this Asset Management Plan to obtain

the optimum benefits from its available resources. Decisions were made based on the development of three scenarios of Asset Management Plans.

Scenario 1 - What we would like to do based on asset register data

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Scenario 2 – What we should do with existing budgets and identifying level of service and risk

consequences (i.e. what are the operations and maintenance and capital projects we are unable

to do, what is the service and risk consequences associated with this position). This may require several versions of the Asset Management Plan.

Scenario 3 – What we can do and be financially sustainable with Asset Management Plans matching long-term financial plans.

The development of scenario 1 and scenario 2 Asset Management Plans provides the tools for

discussion with the Council and community on trade-offs between what we would like to do

(scenario 1) and what we should be doing with existing budgets (scenario 2) by balancing

changes in services and service levels with affordability and acceptance of the service and risk consequences of the trade-off position (scenario 3).

5.7.1 What we cannot do

There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:

No specific projects identified.

5.7.2 Service consequences

Operations and maintenance activities and capital projects that cannot be undertaken will maintain or create service consequences for users. These include:

Nil

5.7.3 Risk consequences

The operations and maintenance activities and capital projects that cannot be undertaken may maintain or create risk consequences for the organisation. These include:

Nil

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6. FINANCIAL SUMMARY

This section contains the financial requirements resulting from all the information presented in the

previous sections of this asset management plan. The financial projections will be improved as

further information becomes available on desired levels of service and current and projected

future asset performance.

6.1 Financial Statements and Projections

The financial projections are shown in Figure 7 for projected operating (operations and

maintenance) and capital expenditure (renewal and upgrade/expansion/new assets). Note that

all costs are shown in real values.

Figure 7: Projected Operating and Capital Expenditure

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Barossa - Projected Operating and Capital Expenditure Data

Category Year Maintenance* Operations* Disposals* Capital

Upgrade* Capital

Renewal* Budget

Expenditure*

Transport 2015 $1,262 $1,880 $0 $1,033 $5,529 $7,886

Transport 2016 $1,332 $1,892 $0 $1,389 $1,090 $7,980

Transport 2017 $1,343 $1,907 $0 $196 $8 $6,787

Transport 2018 $1,345 $1,910 $0 $204 $982 $6,795

Transport 2019 $1,348 $1,914 $0 $215 $352 $6,806

Transport 2020 $1,351 $1,918 $0 $221 $382 $6,812

Transport 2021 $1,353 $1,922 $0 $228 $163 $6,819

Transport 2022 $1,356 $1,926 $0 $236 $561 $6,827

Transport 2023 $1,359 $1,930 $0 $243 $483 $6,834

Transport 2024 $1,362 $1,934 $0 $252 $183 $6,843

Transport 2025 $1,359 $1,938 $0 $422 $1,106 $6,877

Transport 2026 $1,363 $1,944 $0 $422 $1,623 $7,039

Transport 2027 $1,367 $1,950 $0 $422 $3,401 $7,039

Transport 2028 $1,371 $1,956 $0 $422 $2,664 $7,039

Transport 2029 $1,375 $1,962 $0 $422 $2,757 $7,039

Transport 2030 $1,379 $1,968 $0 $422 $2,828 $7,039

Transport 2031 $1,383 $1,974 $0 $422 $2,146 $7,039

Transport 2032 $1,388 $1,980 $0 $422 $2,340 $7,039

Transport 2033 $1,392 $1,985 $0 $422 $2,728 $7,039

Transport 2034 $1,396 $1,991 $0 $422 $2,161 $7,039


6.1.1 Sustainability of service delivery

There are four key indicators for service delivery sustainability that have been considered in the

analysis of the services provided by this asset category, these being the asset renewal funding ratio,

long term life cycle costs/expenditures and medium term projected/budgeted expenditures over 5

and 10 years of the planning period.

Asset Renewal Funding Ratio

Asset Renewal Funding Ratio11 318%

The Asset Renewal Funding Ratio is the most important indicator and reveals that over the next 10

years, Council is forecasting that it will have 318% of the funds required for the optimal renewal and

replacement of its assets.

11 AIFMG, 2015, Version 1.3, Financial Sustainability Indicator 4, Sec 2.6, p 7

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Long term - Life Cycle Cost

Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service

levels over the asset life cycle. Life cycle costs include operations and maintenance expenditure

and asset consumption (depreciation expense). The life cycle cost for the services covered in this

asset management plan is $6.314 M per year (average operations and maintenance expenditure

plus depreciation expense projected over 10 years).

Life cycle costs can be compared to life cycle expenditure to give an initial indicator of

affordability of projected service levels when considered with age profiles. Life cycle expenditure

includes operations, maintenance and capital renewal expenditure. Life cycle expenditure will

vary depending on the timing of asset renewals. The life cycle expenditure over the 10 year

planning period is $6.617 M per year (average operations and maintenance plus capital renewal

budgeted expenditure in LTFP over 10 years).

A shortfall between life cycle cost and life cycle expenditure is the life cycle gap. The life cycle

gap for services covered by this asset management plan is $303,000 per year (-ve = gap, +ve =

surplus).

Life cycle expenditure is 105% of life cycle costs.

The life cycle costs and life cycle expenditure comparison highlights any difference between

present outlays and the average cost of providing the service over the long term. If the life cycle

expenditure is less than that life cycle cost, it is most likely that outlays will need to be increased or

cuts in services made in the future.

Knowing the extent and timing of any required increase in outlays and the service consequences if

funding is not available will assist organisations in providing services to their communities in a

financially sustainable manner. This is the purpose of the asset management plans and Long Term

Financial Plan.

Medium term – 10 year financial planning period

This asset management plan identifies the projected operations, maintenance and capital renewal

expenditures required to provide an agreed level of service to the community over a 10 year

period. This provides input into 10 year financial and funding plans aimed at providing the required

services in a sustainable manner.

These projected expenditures may be compared to budgeted expenditures in the 10 year period

to identify any funding shortfall. In a core asset management plan, a gap is generally due to

increasing asset renewals for ageing assets.

The projected operations, maintenance and capital renewal expenditure required over the 10 year

planning period is $4.228 M on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $6.617 M on average

per year giving a 10 year funding surplus of $2.390 M per year. This indicates that Council expects

to have 157% of the projected expenditures needed to provide the services documented in the

asset management plan.

Medium Term – 5 year financial planning period

The projected operations, maintenance and capital renewal expenditure required over the first 5

years of the planning period is $4.819 M on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $6.643 M on average

per year giving a 5 year funding surplus of $1.825 M. This indicates that Council expects to have

- 88 -


138% of projected expenditures required to provide the services shown in this asset management

plan.

Asset management financial indicators

Figure 7A shows the asset management financial indicators over the 10 year planning period and

for the long term life cycle.

Figure 7A: Asset Management Financial Indicators

Providing services from infrastructure in a sustainable manner requires the matching and managing

of service levels, risks, projected expenditures and financing to achieve a financial indicator of

approximately 1.0 for the first years of the asset management plan and ideally over the 10 year life

of the Long Term Financial Plan.

Figure 8 shows the projected asset renewal and replacement expenditure over the 20 years of the

Asset Management Plan. The projected asset renewal and replacement expenditure is compared

to renewal and replacement expenditure in the capital works program, which is accommodated

in the Long Term Financial Plan

- 89 -


Figure 8: Projected and LTFP Budgeted Renewal Expenditure

- 90 -


Barossa: Projected & LTFP Budgeted Renewal Expenditure Transport

Data

Category Year

Projected

Renewals

Planned

Renewals

Expenditure

Yr1

($'000) ($'000) ($'000)

Transport_S1_V3 2015 $5,529 $3,711 $3,711

Transport_S1_V3 2016 $1,090 $3,387 $3,711

Transport_S1_V3 2017 $8 $3,387 $3,711

Transport_S1_V3 2018 $982 $3,387 $3,711

Transport_S1_V3 2019 $352 $3,387 $3,711

Transport_S1_V3 2020 $382 $3,387 $3,711

Transport_S1_V3 2021 $163 $3,387 $3,711

Transport_S1_V3 2022 $561 $3,387 $3,711

Transport_S1_V3 2023 $483 $3,387 $3,711

Transport_S1_V3 2024 $183 $3,387 $3,711

Transport_S1_V3 2025 $1,106 $3,419 $3,711

Transport_S1_V3 2026 $1,623 $3,419 $3,711

Transport_S1_V3 2027 $3,401 $3,419 $3,711

Transport_S1_V3 2028 $2,664 $3,419 $3,711

Transport_S1_V3 2029 $2,757 $3,419 $3,711

Transport_S1_V3 2030 $2,828 $3,419 $3,711

Transport_S1_V3 2031 $2,146 $3,419 $3,711

Transport_S1_V3 2032 $2,340 $3,419 $3,711

Transport_S1_V3 2033 $2,728 $3,419 $3,711

Transport_S1_V3 2034 $2,161 $3,419 $3,711


Table 6.1.1 shows the surplus between projected renewal and replacement expenditures and

expenditure accommodated in Long Term Financial Plan. Budget expenditures accommodated in

the Long Term Financial Plan or extrapolated from current budgets are shown in Appendix C.

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Table 6.1.1: Projected and LTFP Budgeted Renewals and Financing Shortfall

Barossa - Report 4 - Table 6.1.1 Renewals Financing Transport

Year End Projected LTFP Renewal

Financing

Cumulative

Shortfall($'000)

Jun-30 Renewals Renewal Budget Shortfall ($'000) (- gap, + surplus)

($'000) ($'000) (- gap, + surplus)

2015 $5,529 $3,711 -$1,818 -$1,818

2016 $1,090 $3,387 $2,297 $480

2017 $8 $3,387 $3,379 $3,859

2018 $982 $3,387 $2,405 $6,264

2019 $352 $3,387 $3,035 $9,298

2020 $382 $3,387 $3,005 $12,303

2021 $163 $3,387 $3,224 $15,527

2022 $561 $3,387 $2,826 $18,353

2023 $483 $3,387 $2,904 $21,257

2024 $183 $3,387 $3,204 $24,461

2025 $1,106 $3,419 $2,313 $26,774

2026 $1,623 $3,419 $1,797 $28,571

2027 $3,401 $3,419 $18 $28,589

2028 $2,664 $3,419 $755 $29,344

2029 $2,757 $3,419 $662 $30,006

2030 $2,828 $3,419 $591 $30,597

2031 $2,146 $3,419 $1,273 $31,870

2032 $2,340 $3,419 $1,079 $32,950

2033 $2,728 $3,419 $692 $33,642

2034 $2,161 $3,419 $1,259 $34,900

Note: A negative shortfall indicates a financing gap, a positive shortfall indicates a surplus for that year.

6.1.2 Projected expenditures for Long Term Financial Plan

Table 6.1.2 shows the projected expenditures for the 10 year Long Term Financial Plan.

Expenditure projections are in 2015 real values.

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Table 6.1.2: Projected Expenditures for Long Term Financial Plan

Barossa - Report 5 - Table 6.1.2 Long Term Financial Plan

Transport

Year Operations Maintenance Projected Capital

Capital

Renewal Upgrade/New

2015 $1,880 $1,262 $5,529 $1,033

2016 $1,892 $1,332 $1,090 $1,389

2017 $1,907 $1,343 $8 $196

2018 $1,910 $1,345 $982 $204

2019 $1,914 $1,348 $352 $215

2020 $1,918 $1,351 $382 $221

2021 $1,922 $1,353 $163 $228

2022 $1,926 $1,356 $561 $236

2023 $1,930 $1,359 $483 $243

2024 $1,934 $1,362 $183 $252

2025 $1,938 $1,359 $1,106 $422

2026 $1,944 $1,363 $1,623 $422

2027 $1,950 $1,367 $3,401 $422

2028 $1,956 $1,371 $2,664 $422

2029 $1,962 $1,375 $2,757 $422

2030 $1,968 $1,379 $2,828 $422

2031 $1,974 $1,383 $2,146 $422

2032 $1,980 $1,388 $2,340 $422

2033 $1,985 $1,392 $2,728 $422

2034 $1,991 $1,396 $2,161 $422

6.2 Funding Strategy

After reviewing service levels as appropriate, to ensure ongoing financial sustainability projected

expenditures identified in Section 6.1.2 will be accommodated in the Council’s 10 year Long Term

Financial Plan.

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6.3 Valuation Forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from assets

constructed by land developers and others and donated to Council. Figure 9 shows the projected replacement cost asset values over the planning period in real values.

Figure 9: Projected Asset Values

- 94 -


Barossa - Projected Asset Values Transport Data

Category Year ($'000)

Transport_S1_V3 2015 $201,508

Transport_S1_V3 2016 $203,097

Transport_S1_V3 2017 $203,494

Transport_S1_V3 2018 $203,899

Transport_S1_V3 2019 $204,315

Transport_S1_V3 2020 $204,737

Transport_S1_V3 2021 $205,167

Transport_S1_V3 2022 $205,604

Transport_S1_V3 2023 $206,049

Transport_S1_V3 2024 $206,503

Transport_S1_V3 2025 $207,127

Transport_S1_V3 2026 $207,751

Transport_S1_V3 2027 $208,376

Transport_S1_V3 2028 $209,000

Transport_S1_V3 2029 $209,625

Transport_S1_V3 2030 $210,250

Transport_S1_V3 2031 $210,876

Transport_S1_V3 2032 $211,501

Transport_S1_V3 2033 $212,127

Transport_S1_V3 2034 $212,753


- 95 -


Depreciation expense values are forecast in line with asset values as shown in Figure 10.

Figure 10: Projected Depreciation Expense

- 96 -


Barossa - Projected Depreciation Expense Transport

Data

Category Year Annual Depreciation Charge






















The depreciated replacement cost will vary over the forecast period depending on the rates of

addition of new assets, disposal of old assets and consumption and renewal of existing assets.

Forecast of the assets’ depreciated replacement cost is shown in Figure 11. The depreciated

replacement cost of contributed and new assets is shown in the darker colour and in the lighter colour for existing assets.

- 97 -


Figure 11: Projected Depreciated Replacement Cost

- 98 -


Barossa - Projected Depreciated Replacement Cost Transport

Data

Category Year Existing Assets New Assets

Transport_S1_V3 2015 $144,113 $1,234

Transport_S1_V3 2016 $144,440 $2,804

Transport_S1_V3 2017 $144,767 $3,158

Transport_S1_V3 2018 $145,094 $3,514

Transport_S1_V3 2019 $145,421 $3,874

Transport_S1_V3 2020 $145,748 $4,235

Transport_S1_V3 2021 $146,075 $4,596

Transport_S1_V3 2022 $146,402 $4,959

Transport_S1_V3 2023 $146,729 $5,322

Transport_S1_V3 2024 $147,056 $5,688

Transport_S1_V3 2025 $147,415 $6,217

Transport_S1_V3 2026 $147,775 $6,737

Transport_S1_V3 2027 $148,134 $7,247

Transport_S1_V3 2028 $148,494 $7,748

Transport_S1_V3 2029 $148,853 $8,239

Transport_S1_V3 2030 $149,212 $8,721

Transport_S1_V3 2031 $149,572 $9,194

Transport_S1_V3 2032 $149,931 $9,658

Transport_S1_V3 2033 $150,291 $10,112

Transport_S1_V3 2034 $150,650 $10,556


6.4 Key Assumptions made in Financial Forecasts

This section details the key assumptions made in presenting the information contained in this asset

management plan and in preparing forecasts of required operating and capital expenditure and

asset values, depreciation expense and carrying amount estimates. It is presented to enable

readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

- 99 -


Key assumptions made in this asset management plan and risks that these may change are shown in Table 6.4.

Table 6.4: Key Assumptions made in Asset Management Plan and Risks of Change

Key Assumptions Risks of Change to Assumptions

Growth will remain as predicted Low risk of change due to Character

Preservation (Barossa Valley) Act 2012

Asset condition will continue to be reviewed Failure to continue to condition assess assets

and refine data accuracy will result in the in a

reduced accuracy and relevance of renewal /

replacement programs. In addition, the

condition data is used to model future

expenditure and feed into the Long Term

Financial Plan. Failure to continue to invest in

data accuracy will result in inaccurate forward

estimates.

Asset data is accurate at time of IAMP

preparation

Changes to data accuracy will require the

IAMP to be updated.

Service levels will remain constant for life of the

IAMP

Changes to service levels will require the IAMP

to be updated.

Appropriate Capital Renewal/Replacement

funding is provided for within the Long Term

Financial Plan.

Changes to Capital Renewal / Replacement

funding levels used in this IAMP will affect asset

sustainability ratios and will require the IAMP to

be updated.

Maintenance and renewal practices will remain

the same for the duration of this IAMP

Changes to maintenance and renewal

practices documented in this IAMP will affect

asset sustainability ratios and will require the

IAMP to be updated.

Legislative compliance will remain constant Changes in legislation and regulation may

increase operating and maintenance

expenditure projections.

6.5 Forecast Reliability and Confidence

The expenditure and valuations projections in this Asset Management Plan are based on best

available data. Currency and accuracy of data is critical to effective asset and financial management. Data confidence is classified on a 5 level scale12 in accordance with Table 6.5.

Table 6.5: Data Confidence Grading System

Confidence Grade Description

A Highly reliable Data based on sound records, procedures, investigations and analysis,

documented properly and recognised as the best method of assessment.

Dataset is complete and estimated to be accurate ± 2%

B Reliable Data based on sound records, procedures, investigations and analysis,

documented properly but has minor shortcomings, for example some of the

data is old, some documentation is missing and/or reliance is placed on

unconfirmed reports or some extrapolation. Dataset is complete and

estimated to be accurate ± 10%

C Uncertain Data based on sound records, procedures, investigations and analysis which

is incomplete or unsupported, or extrapolated from a limited sample for

12 IPWEA, 2015, IIMM, Table 2.4.5, p 2|71.

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Confidence Grade Description

which grade A or B data are available. Dataset is substantially complete

but up to 50% is extrapolated data and accuracy estimated ± 25%

D Very Uncertain Data is based on unconfirmed verbal reports and/or cursory inspections and

analysis. Dataset may not be fully complete and most data is estimated or

extrapolated. Accuracy ± 40%

E Unknown None or very little data held.

The estimated confidence level for and reliability of data used in this Asset Management Plan is shown in Table 6.5.1.

Table 6.5.1: Data Confidence Assessment for Data used in Asset Management Plan

Data Confidence Assessment Comment

Demand drivers A Highly reliable Dependent on Barossa

Development Plan

Growth projections A Highly reliable Dependent on Barossa

Development Plan

Operations expenditures A Highly reliable Dependent on inspection plan

Maintenance expenditures A Highly reliable Dependent on inspection plan

Projected Renewal expenditure A Highly reliable Dependent on renewals identified

in inspection plan

Asset useful lives A Highly reliable Annual review

Condition modelling B Reliable Increase in inspection program

required. A condition assessment of

outstanding assets to be

completed in 17/18 Financial Year

Network renewals B Reliable Dependent on inspection plan. A

condition assessment of

outstanding assets to be

completed in 17/18 financial year.

Defect repairs A Highly reliable Predominantly reactive unless

identified as part of inspection

program

Upgrade/New expenditures A Highly reliable Dependent on capital renewal

program generated from RSM.

Need to ensure frequent asset

condition assessment and useful life

review.

Disposal expenditures A Highly reliable N/A

Over all data sources the data confidence is assessed as having a reliable level for data used in the preparation of this Asset Management Plan.

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7. PLAN IMPROVEMENT AND MONITORING

7.1 Status of Asset Management Practices

7.1.1 Accounting and financial systems

Council utilises the Technology One software product – Finance One.

Accountabilities for financial systems

Manager Financial Services

Senior Accountant - Budgets

Asset Accountant – Acquisition and disposal

Payroll Officer - Payroll

Accounts Payable Clerk – Accounts Payable

Finance Officer

Accounting standards and regulations

International Financial Reporting Standards (IFRS)

Accounting Standard AASB116 – Property Plant and Equipment

Accounting Standard AASB136 – Impairment of Assets

Accounting Standard AASB13 – Fair Value Measurement

Accounting Standard AASB108 – Accounting Policies, Changes in Estimates and Errors

Accounting Standard AASB1051 – Land Under Roads

Accounting Standard AASB141 – Agriculture

CPA Australia and the Australian Asset Management Collective Group – Guide to the valuation

and depreciation of not-for-profit and public sector physical assets under accrual based

accounting standards

Australian Infrastructure Financial management Guidelines – December 2015

Framework for the Preparation and Presentation of Financial Statements – Australian Accounting

Standards Board – December 2007

International Accounting Standards (IAS) Property, Plant and Equipment (paragraph 6)

South Australian Model Financial Statements – Local Government of South Australia

Councils Asset Class Revaluation and Condition Assessment Program

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Capital/maintenance threshold

Asset

Class

Asset

Groups/Types within Class

Type

Sub-

Classificatio

n/ Component

Determining

Factor Capital Operating (including maintenance)

Transport

Road – Earth,

Pavement,

Surface & Seal,

Footpath,

Kerbing, Car

parks

Sealed

Roads

Sealed

Roads – Earth

Road

hierarchy &

construction

type

If satisfying at least one of the following

conditions:

All Resealing (other than patching that

constitutes a segment of road)

All other reconstruction and renewal work >=

$20,000

Expenditure >= 10% of the DRV of the

component

Any new assets acquired (e.g. from land

developments)

Any line marking undertaken in conjunction with

these works will be capital

Reactive maintenance and repair to road assets

not meeting capitalisation criteria

Programmed maintenance (partial sealed road

surfacing <$10,000, pothole repair) not meeting

capitalisation criteria

Line Marking, road cleaning and sweeping as part

of programmed maintenance

Shoulder grading

Sealed

Roads –

Pavement (includes

shoulders)

Sealed

Roads -

Surface

Sheeted

Roads

Sheeted

Roads -

Earth

If satisfying at least one of the following

conditions:

Resheeting (other than patching that

constitutes more than a segment of road)

Estimated work >= $15,000

Projects requiring >= 200 tonnes of material

Reactive maintenance and repair to road

assets(pothole repair) not meeting capitalisation

criteria

Programmed maintenance (unsealed road

grading) not meeting capitalisation criteria Sheeted

Roads –

Pavement

or Surface

Formed

and

Unformed

Roads

Unformed -

Earth

Any new assets acquired free of charge Any work carried out will be expensed

- 103 -


Asset

Class

Asset

Groups/Types

within Class

Type

Sub-

Classificatio

n/

Component

Determining

Factor Capital Operating (including maintenance)

Footpaths

/ Kerbs /

Car park

Structures

Car park

surfaces

Level of

usage

All new, upgrade or replacement work >=

$10,000

Any new assets acquired (e.g. from land

developments)

All repairs and maintenance, replacement or

upgrades that constitute <$10,000

Reactive maintenance to kerb and gutter assets

(repair, replacement of small lengths)

Required changes to accounting financial systems arising from this Asset Management Plan

Ability to split costs between Maintenance and Operating expenditure

7.1.2 Asset management system

Council utilises the Conquest Solutions Asset Management software product – Conquest III.

Asset registers

The Transport Asset Network register in Conquest III covers:

Car Parks:

- 104 -


Footpaths:

Kerb and Gutter:

Bike Path:

Road Earth:

Road Pavement:

- 105 -


Road Surface:

Linkage from asset management to financial system

No software integration at this point in time. Assets in Conquest do have Finance Asset ID listed against the assets.

Accountabilities for asset management system and data maintenance

Manager Assets and Infrastructure (MAI)

Required changes to asset management system arising from this Asset Management Plan

Improve the accuracy of data and the linkage of the Asset Management System data to the corporate mapping system.

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7.2 Improvement Plan

The asset management improvement plan generated from this asset management

plan is shown in Table 7.2.

Table 7.2: Improvement Plan

Task

No

Task Responsibility Resources

Required

Timeline

1 Enable Finance System to record / allocate costs

between Operations and Maintenance

MFS MFS 17/18

2 Easily differentiate between operating and

maintenance expenditure in Finance System

MFS MFS 17/18

3 Easily differentiate between planned and

reactive maintenance expenditure in Finance

System

MFS MFS 17/18

4 Develop and establish ongoing assessment in

relationship to safety and specified maintenance

intervention levels.

MES MES Ongoing

5 Audit and review of maintenance response times

(to confirm whether maintenance works are

delivered on time).

MO MO Annual

6 Random audit of maintenance works (to confirm

whether maintenance works are delivered to the

specified quality).

MO MO Ongoing

7 Consultation to ascertain the community’s service

needs and preferences and confirm performance

targets.

Communications

and Marketing

Officer

Communi

cations

and

Marketing

Officer

Every 4

Years

8 Review of the customer request reports available

in Pathway.

Admin Officer Admin

Officer

Annual

9 Utilise Conquest to undertake and record planned

maintenance activities on the network.

DWES WES Team 16/17

10 Undertake maintenance activities through a

planned maintenance system to reduce

maintenance costs and improve maintenance

outcomes.

DWES MO 16/17

11 Split Capital budget for footpath assets from kerb

and gutter assets

MFS MFS 16/17

12 Determine Function data and include against

each asset on a 1 – 5 rating.

Function is the ability of the physical infrastructure

MES / CAM CAM 16/17

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to meet program delivery needs

13 Determine Capacity/Utilisation data and include

against each asset on a 1 – 5 rating.

Capacity/Utilisation represents the ability of the

physical infrastructure to meet service delivery

needs.

MES / CAM CAM 16/17

14 Create a specific Infrastructure Asset

management Plan focussed on Council’s Freight

Route.

MES / CAM CAM 16/17

15 Detailed data collection and Pavement Strength

Analysis study via Falling Weight Deflectometer,

core samples and modelling on Freight Route to

identify specific locations requiring pavement

strengthening.

DWES / CAM MES /

CAM

17/18

16 A condition assessment of outstanding assets

including review of useful lives and condition

criteria to be completed.

DWES / CAM MAS /

CAM

17/18

7.3 Monitoring and Review Procedures

This asset management plan will be reviewed during annual budget planning

processes and amended to recognise any material changes in service levels and/or

resources available to provide those services as a result of budget decisions.

The Asset Management Plan will be updated annually to ensure it represents the

current service level, asset values, projected operations, maintenance, capital

renewal and replacement, capital upgrade/new and asset disposal expenditures

and projected expenditure values incorporated into the organisation’s Long Term

Financial Plan.

Resources will be allocated by Council to ensure annual updates occur.

The Asset Management Plan has a life of 4 years (Council election cycle) and is due

for complete revision and updating within two years of each Council/Board election.

7.4 Performance Measures

The effectiveness of the asset management plan can be measured in the following

ways:

The degree to which the required projected expenditures identified in this

asset management plan are incorporated into Council’s Long Term Financial

Plan,

The degree to which 1-5 year detailed works programs, budgets, business

plans and organisational structures take into account the ‘global’ works

program trends provided by the asset management plan,

The degree to which the existing and projected service levels and service

consequences (what we cannot do), risks and residual risks are incorporated

into the Council’s Strategic Plan and associated plans,

The Asset Renewal Funding Ratio achieving the target of 1.0.

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8. REFERENCES

IPWEA, 2008, ‘NAMS.PLUS Asset Management’, Institute of Public Works Engineering

Australasia, Sydney, www.ipwea.org/namsplus.

IPWEA, 2015, ‘Australian Infrastructure Financial Management Guidelines’, Institute of

Public Works Engineering Australasia, Sydney, www.ipwea.org/AIFMG.

IPWEA, 2015, ‘International Infrastructure Management Manual’, Institute of Public

Works Engineering Australasia, Sydney, www.ipwea.org/IIMM

Barossa Community Plan 2016 - 2036

The Barossa Council – Annual Budget and Business Plan 2015 – 2016

http://www.barossa.sa.gov.au/sections/council/financial-documents/annual-

budget-business-plan

http://www.ipwea.org/namsplus

http://www.ipwea.org/namsplus

http://www.ipwea.org/AIFMG

http://www.ipwea.org/IIMM

http://www.barossa.sa.gov.au/sections/council/financial-documents/annual-budget-business-plan

http://www.barossa.sa.gov.au/sections/council/financial-documents/annual-budget-business-plan

- 109 -


9. APPENDICES

Appendix A Maintenance Response Levels of Service

The response level of Service for Transport Assets is dependent on the answers given

by the customer. This determines which department the request will go to as per

below:

Footpath Assets:

- 110 -


Sealed Roads:

- 111 -


- 112 -


Unsealed Roads:

- 113 -


General Road Construction:

- 114 -


Appendix B Projected 10 year Capital Renewal and Replacement Works Program

PROJECTS IDENTIFIED. NOTE: PRIORITY TO BE GIVEN TO ROAD SHOULDER (SEAL WIDENING) AND TRAFFIC SAFETY HOT SPOTS.

Primary Road Township Start Location End Location Action Estimated Amount

Craneford Road Springton 6 way intersection - 1

Realignment to create T junction offsets $ 150,000

Penrice Products Penrice Intersection

Pave and 50 mm Hotmix Seal $ 100,000

Craneford Road Springton 6 way intersection - 2

Realignment to create T junction offsets $ 160,000

Para Road Tanunda Murray Street Richmond Grove Seal widening and kerb & drainage $ 220,000

MacDonnell Street Tanunda Kindergarten Fiedler Street Reconstruct pave, seal, kerb & concrete footpath both sides $ 155,445

**Historical data but still relevant – from 10 year Capital plan developed by WES

The following 10 year plan is generated based on asset expiry only. Please refer to the other drivers stated on p 21 of this asset management plan that are considered in creation of the final program.

Barossa - Report 6 - Appendix B 10 year Renewal & Replacement Program (Transport_S1_V5)

Asset ID

Sub

Asset Name From To

Rem Planned Renewal Useful

Category Life Renewal Cost Life

(Years) Year ($) (Years)

7391 Township Normal Use Slurry Seal / Cold Overlay Surface

Disposed - Surface - Barossa Street (0005) from Gawler Street to Warneckle Street

Gawler Street Warneckle Street -5 2010 $0 15

Subtotal $0

11426 Rural B Double Normal Use Spray Pavement Type

Pavement - Forreston Road (0005) from Warren Road to Segment limit-1km S

Warren Road Segment limit-1km S -4 2011 $383,657 40


Pavement - Springton Road (0055) from Wirra Wirra Road to Police Paddock Road

Wirra Wirra Road Police Paddock Road -4 2011 $428,784 40


Pavement - Springton Road (0060) from Police Paddock Road to Cowell Road

Police Paddock Road Cowell Road -4 2011 $458,800 40


Pavement - Springton Road (0065) from Cowell Road to Glen Devon Road

Cowell Road Glen Devon Road -4 2011 $262,354 40

9438 Rural Road Reserve Surface Surface - Ann Milroy Lane (0010) from Gates to Barossa Valley Way

Gates Barossa Valley Way -4 2011 $4,158 15


Disposal - Surface - Sibley Street (0005) from Chinner Lane to Hodder Street

Chinner Lane Hodder Street -4 2011 $0 15

Subtotal $1,537,752


Pavement - Springton Road (0080) from Dawson Road to Segment limit-1km E

Dawson Road Segment limit-1km E -3 2012 $386,338 40


Pavement - Springton Road (0085) from Segment limit to High Eden Road

Segment limit High Eden Road -3 2012 $311,495 40


Pavement - Springton Road (0095) from High Eden Road to Barossa Boundary Road

High Eden Road Barossa Boundary Road -3 2012 $467,510 40


Disposed - Surface - Ninnes Grove (0005) from Jubilee Avenue to end

Jubilee Avenue end -3 2012 $0 15

27654 Upright Kerb and gutter Left Kerb - Saleyard Road, (Mount Pleasant) From Showground Road to

Hocknull Place

Mount Pleasant From Showground Road to Hocknull Place -3 2012 $18,438 27

- 115 -


Subtotal $1,183,781

8636 Rural Normal Use Spray Seal Bitumen Surface

Disposed - Surface - Bethany Road (0015) from Menge Road to Nicolai Road

Menge Road Nicolai Road -2 2013 $0 25


Disposed - Surface - Bethany Road (0020) from Nicolai Road to Thiele Road

Nicolai Road Thiele Road -2 2013 $0 25

Subtotal $0


Pavement - Springton Road (0025) from Segment limit to Old Glen Road

Segment limit Old Glen Road -1 2014 $287,415 40


Pavement - Springton Road (0030) from Old Glen Road to Segment limit-1km SE

Old Glen Road Segment limit-1km SE -1 2014 $409,840 40

Subtotal $697,255

16227 Bitumen - Spray Seal Footpath Surface Type

Left footpath - Barossa Valley Way (Lyndoch) from foot bridge to Altona Road

Lyndoch foot bridge to Altona Road 0 2015 $0 30


Left footpath - Boehm Street (Nuriootpa) from Below Street to Keuper Street

NURIOOTPA Below Street to Keuper Street 0 2015 $1,609 33


Left footpath - Boehm Street (Nuriootpa) from Below Street to Keuper Street

NURIOOTPA Below Street to Keuper Street 0 2015 $3,312 33


Left footpath - Boehm Street (Nuriootpa) from Keuper Street to end

NURIOOTPA Keuper Street to end 0 2015 $1,066 33


Left footpath - Garrett Court (Tanunda) from MacDonnell Street to end

TANUNDA MacDonnell Street to end 0 2015 $3,733 22


Left footpath - Keuper Street (Nuriootpa) from Below Street to Old Kapunda Road

NURIOOTPA Below Street to Old Kapunda Road 0 2015 $1,639 29


Right footpath - Below Street (Nuriootpa) from Boehm Street to Keuper Street

NURIOOTPA Boehm Street to Keuper Street 0 2015 $4,782 29


Right footpath - Below Street (Nuriootpa) from Keuper Street to end

NURIOOTPA Keuper Street to end 0 2015 $1,313 29


Right footpath - Dean Street (Angaston) from end of pavers to Sturt Street

ANGASTON end of pavers to Sturt Street 0 2015 $1,721 25


Right footpath - George Street (Williamstown) from Church Street to Eliza

Street

WILLIAMSTOWN Church Street to Eliza Street 0 2015 $2,021 22


Right footpath - Keuper Street (Nuriootpa) from Below Street to Old Kapunda Road

NURIOOTPA Below Street to Old Kapunda Road 0 2015 $1,639 29

15408 Paved Footpath Surface Type Left footpath - Johnson Court (Nuriootpa) from Haese Court to end

NURIOOTPA Haese Court to end 0 2015 $7,064 18

15989 Rubble Footpath Surface Type Left footpath - Saleyard Road (Mount Pleasant) from Showground Road to

Hocknull Place

MOUNT PLEASANT Showground Road to Hocknull Place 0 2015 $2,693 17

16122 Rubble Footpath Surface Type Right footpath - Queen Street (Williamstown) from Lyndoch Valley Road

to end rubble

WILLIAMSTOWN Lyndoch Valley Road to end rubble 0 2015 $3,452 19


Pavement - Belvidere Road (0005) from Kalimna Road to Sturt Highway

Kalimna Road Sturt Highway 0 2015 $226,569 40


Pavement - Springton Road (0005) from Barossa Boundary Road to E. Lorkes Road

Barossa Boundary Road E. Lorkes Road 0 2015 $320,178 40

- 116 -



Pavement - Springton Road (0005) from Mt. Crawford Road to Segment limit-1km

Mt. Crawford Road Segment limit-1km 0 2015 $331,795 40


Pavement - Springton Road (0010) from Segment limit to Glen Gillian Road

Segment limit Glen Gillian Road 0 2015 $214,727 40


Pavement - Springton Road (0035) from Segment limit to Abbaston Road

Segment limit Abbaston Road 0 2015 $68,451 40


Pavement - Springton Road (0040) from Abbaston Road to Segment limit-870m SE

Abbaston Road Segment limit-870m SE 0 2015 $344,483 40


Pavement - Springton Road (0045) from Segment limit to Segment limit-1km E

Segment limit Segment limit-1km E 0 2015 $398,528 40


Pavement - Springton Road (0050) from Segment limit to Wirra Wirra Road

Segment limit Wirra Wirra Road 0 2015 $169,276 40

Subtotal $2,110,050


Right footpath - Barossa Valley Way (Nuriootpa) from Kaiser Stuhl Avenue to

Nuraip Road

Nuriootpa Kaiser Stuhl Avenue to Nuraip Road 1 2016 $36,994 2


Right footpath - Barossa Valley Way (Nuriootpa) from Nuraip Road to

Seppeltsfield Road

Nuriootpa Nuraip Road to Seppeltsfield Road 1 2016 $63,656 2

32457 Car Park - Hotmix Surface Car Park - Murray Street (behind Hall) - Nuriootpa

NURIOOTPA Memorial Avenue 1 2016 $65,912 21


Pavement - Springton Road (0010) from E Lorkes Road to E Staricks Road

E Lorkes Road E Staricks Road 1 2016 $457,737 40


Pavement - Springton Road (0015) from E Staricks Road to L. Staricks Road

E Staricks Road L. Staricks Road 1 2016 $423,684 40


Pavement - Williamstown Road (0025) from Drogmueller Road to Township

Fringe

Drogmueller Road Township Fringe 1 2016 $41,665 40


Dispose - Surface - Allendale Road (0005) from Balmoral Road to Segment limit-1km

S

Balmoral Road Segment limit-1km S 1 2016 $0 25


Disposed - Surface - Allendale Road (0010) from Surface change-Sheeted to

Surface change-Sheeted 1 2016 $0 25

Subtotal $1,089,648

9476 Rural Normal Use Hotmix Pavement Type Pavement - Needles Road (0005) from Yettie Road to Pappin Road

Yettie Road Pappin Road 2 2017 $7,678 15

Subtotal $7,678



Nuraip Road




Seppeltsfield Road


15955 Natural Footpath Surface Type Left footpath - College Street (Tanunda) from Sobels Street to Bilyara Street

TANUNDA Sobels Street to Bilyara Street 3 2018 $0 20

16317 Rubble Footpath Surface Type Left footpath - Barossa Valley Way (Rowland Flat) from Winery carpark to

Community Centre carpark

Rowland Flat Winery carpark to Community Centre carpark

3 2018 $0 20

- 117 -



Pavement - Forreston Road (0010) from Segment limit to Dickers Road

Segment limit Dickers Road 3 2018 $397,255 40


Pavement - Forreston Road (0015) from Dickers Road to Ironstone Road

Dickers Road Ironstone Road 3 2018 $295,124 40

9182 Rural Normal Use Hotmix Pavement Type Pavement - Nuraip Road (0015) from Surface change-Sheeted to Surface

change-Spray Sealed 600m NW

Surface change-Sheeted Surface change-Spray Sealed 600m NW 3 2018 $154,233 15


Disposed - Surface - Alexander Murray Road (0005) from Gottwald Road to

Winters Road

Gottwald Road Winters Road 3 2018 $0 25


Surface - Long Gully Road (0015) from Hurns Road to Vine Vale Road

Hurns Road Vine Vale Road 3 2018 $34,987 25


Disposed - Surface - Boehm Street (0006) from 94m from Below Street to Keuper

Street

Below Street Keuper Street 3 2018 $0 15


Dispsed - Surface - Theodor Street (0005) from Murray Street to Maria Street

Murray Street Maria Street 3 2018 $0 15

Subtotal $982,250

8564 Rural - B Double Route - Normal Use Spray Seal

Surface - Belvidere Road (0005) from Kalimna Road to Sturt Highway

Kalimna Road Sturt Highway 4 2019 $33,223 14


Surface - Forreston Road (0005) from Warren Road to Segment limit-1km S

Warren Road Segment limit-1km S 4 2019 $49,722 18


Surface - Springton Road (0055) from Wirra Wirra Road to Police Paddock Road

Wirra Wirra Road Police Paddock Road 4 2019 $61,856 18


Surface - Springton Road (0060) from Police Paddock Road to Cowell Road

Police Paddock Road Cowell Road 4 2019 $62,292 18


Surface - Springton Road (0065) from Cowell Road to Glen Devon Road

Cowell Road Glen Devon Road 4 2019 $35,620 18


Surface - Springton Road (0085) from Segment limit to High Eden Road

Segment limit High Eden Road 4 2019 $42,292 17


Surface - Springton Road (0095) from High Eden Road to Barossa Boundary Road

High Eden Road Barossa Boundary Road 4 2019 $67,442 17


Disposal - Surface - Chinner Street (0005) from Park Road to Chinner Lane

Park Road Chinner Lane 4 2019 $0 15


Disposed - Surface - Kaiser Stuhl Avenue (0005) from Tanunda Road to John Harris

Drive

Tanunda Road John Harris Drive 4 2019 $0 15


Disposed - Surface - Kaiser Stuhl Avenue (0010) from John Harris Drive to John

Harris Drive

John Harris Drive John Harris Drive 4 2019 $0 15


Disposed - Surface - Kaiser Stuhl Avenue (0015) from John Harris Drive to end

John Harris Drive end 4 2019 $0 15

Subtotal $352,448



Nuraip Road




Seppeltsfield Road


- 118 -



Surface - Forreston Road (0010) from Segment limit to Dickers Road

Segment limit Dickers Road 5 2020 $47,807 12


Surface - Springton Road (0005) from Barossa Boundary Road to E. Lorkes Road

Barossa Boundary Road E. Lorkes Road 5 2020 $43,471 15


Surface - Springton Road (0005) from Mt. Crawford Road to Segment limit-1km

Mt. Crawford Road Segment limit-1km 5 2020 $49,144 15


Surface - Springton Road (0010) from E Lorkes Road to E Staricks Road

E Lorkes Road E Staricks Road 5 2020 $62,148 14


Surface - Springton Road (0010) from Segment limit to Glen Gillian Road

Segment limit Glen Gillian Road 5 2020 $31,804 15


Surface - Springton Road (0025) from Segment limit to Old Glen Road

Segment limit Old Glen Road 5 2020 $39,023 16


Surface - Williamstown Road (0025) from Drogmueller Road to Township Fringe

Drogmueller Road Township Fringe 5 2020 $5,400 14


Disposed - Surface - Menglers Hill Road - Angaston (0001) from Radford Road to

Segment Limit 1km S

Radford Road Segment Limit 1km S 5 2020 $0 25


Disposed - Surface - Yettie Road (0030) from Start-Rural Seal to Para Wirra Road

Start-Rural Seal Para Wirra Road 5 2020 $0 25


Disposed - Surface - Yettie Road (0035) from Para Wirra Road to Gottwald Road

Para Wirra Road Gottwald Road 5 2020 $0 25


Disposed - Surface - Yettie Road (0040) from Gottwald Road to Millington Road

Gottwald Road Millington Road 5 2020 $0 25


Disposed - Surface - Yettie Road (0045) from Millington Road to Needles Road

Millington Road Needles Road 5 2020 $0 25


Disposed - Surface - Yettie Road (0050) from Needles Road to Segment limit-670m

N

Needles Road Segment limit-670m N 5 2020 $0 25

7327 Township Normal Use Spray Seal Bitumen Surface

Disposed - Surface - Barossa Street (0010) from Warneckle Street to Orchard Court

Warneckle Street Orchard Court 5 2020 $0 25


Disposed - Surface - Park Avenue (0005) from Penrice Road to Memorial Avenue

Penrice Road Memorial Avenue 5 2020 $0 25


Surface - Rowland Street (0005) from Penrice Road to Sarah Street

Penrice Road Sarah Street 5 2020 $2,972 4

Subtotal $382,420


Surface - Forreston Road (0015) from Dickers Road to Ironstone Road

Dickers Road Ironstone Road 6 2021 $35,516 13

9575 Rural Sheeted Surface Function Priority 2,1

Surface - Jaeger Road (0005) from Sturt Highway to End

Sturt Highway End 6 2021 $2,138 36


Surface - Menzel Road (0010) from Surface change-Formed to End

Surface change-Formed End 6 2021 $2,336 13


Surface - Cockatoo Lane (0001) from Barossa Valley Way to surface change -

Sealed

Barossa Valley Way surface change - sealed 6 2021 $7,101 23


Surface - Gottwald Road (0005) from Yetti Road to Winters Road

Yetti Road Winters Road 6 2021 $5 19


Surface - Falkenberg Road (0010) from Oxley Street to Cook Street

Oxley Street Cook Street 6 2021 $69,719 25


Surface - Falkenberg Road (0015) from Cook Street to Tolley Road

Cook Street Tolley Roadt 6 2021 $46,160 25

- 119 -


Subtotal $162,975



Nuraip Road




Seppeltsfield Road



Right footpath - Washington Street (Angaston) from Evans Street to end

bitumen

ANGASTON Evans Street to end bitumen 7 2022 $1,347 16


Surface - Springton Road (0030) from Old Glen Road to Segment limit-1km SE

Old Glen Road Segment limit-1km SE 7 2022 $55,645 18


Surface - Springton Road (0035) from Segment limit to Abbaston Road

Segment limit Abbaston Road 7 2022 $9,294 17


Surface - Springton Road (0040) from Abbaston Road to Segment limit-870m SE

Abbaston Road Segment limit-870m SE 7 2022 $82,512 17


Surface - Springton Road (0045) from Segment limit to Segment limit-1km E

Segment limit Segment limit-1km E 7 2022 $86,927 17


Surface - Springton Road (0050) from Segment limit to Wirra Wirra Road

Segment limit Wirra Wirra Road 7 2022 $55,801 17


Surface - Hillview Road (0010) from Tungkillo Road to Ross Smith Road

Tungkillo Road Ross Smith Road 7 2022 $11,547 39


Surface - Malcolm Starick Road (0005) from McBeans Range Road to End

McBeans Range Road End 7 2022 $7,817 19


Surface - Heggies Range Road (0020) from Goodchild Road to Road No-0640

Goodchild Road Road No-0640 7 2022 $52,667 24


Surface - High Eden Road (0005) from Barossa Boundary Road to Springton Road

Barossa Boundary Road Springton Road 7 2022 $20,679 24


Surface - Steingarten Road (0015) from Surface change-Sheeted to End-Sheeted

1.53km SE

Surface change-Sheeted End-Sheeted 1.53km SE 7 2022 $46,833 18

9401 Rural Sheeted Surface Function Priority 7 Surface - McCallum Road (0010) from Kalperri Road to William Hawke Road

Kalperri Road William Hawke Road 7 2022 $28,865 15

Subtotal $560,584


Left footpath - Barossa Street (Nuriootpa) from Gawler Street end

NURIOOTPA Gawler Street end 8 2023 $1,145 40


Left footpath - Cross Street (Angaston) from Middle Street to Moculta Road

ANGASTON Middle Street to Moculta Road 8 2023 $4,631 20


Left footpath - Dean Street (Angaston) from Schilling Street to Sturt Street

(middle section)

ANGASTON Schilling Street to Sturt Street (middle section)

8 2023 $6,034 33


Left footpath - El Alamein Road (Nuriootpa) from Buna Terrace to end

NURIOOTPA Buna Terrace to end 8 2023 $1,497 20


Left footpath - Elizabeth Avenue (Nuriootpa) from Phillip Street start of

bitumen

NURIOOTPA Phillip Street start of bitumen 8 2023 $3,256 32


Left footpath - George Street (Williamstown) from Eliza Street to

Victoria Terrace

WILLIAMSTOWN Eliza Street to Victoria Terrace 8 2023 $2,863 30

- 120 -



Left footpath - George Street (Williamstown) from Queen Street to Eliza

Street

WILLIAMSTOWN Queen Street to Eliza Street 8 2023 $3,957 22


Left footpath - Greenock Road (Nuriootpa) from Hatch Street to Fifth Street

NURIOOTPA Hatch Street to Fifth Street 8 2023 $10,384 29


Left footpath - Kleinig Street (Lyndoch) from Gilbert Street end

LYNDOCH Gilbert Street end 8 2023 $926 18


Left footpath - Margaret Street (Lyndoch) from Gordon Street to John Street

LYNDOCH Gordon Street to John Street 8 2023 $1,055 23


Left footpath - Margaret Street (Lyndoch) from John Street to end

LYNDOCH John Street to end 8 2023 $47,303 23


Left footpath - Murray Street (Eden Valley) from William Street to Matthews Road

EDEN VALLEY William Street to Matthews Road 8 2023 $2,722 24


Left footpath - Noske Street (Lyndoch) from Lyndoch Valley Road

LYNDOCH Lyndoch Valley Road 8 2023 $3,171 35


Left footpath - Queen Street (Williamstown) from to Margaret Street &

Yettie Road intersection

WILLIAMSTOWN to Margaret Street & Yettie Road intersection

8 2023 $11,226 23


Left footpath - Saleyard Road (Mount Pleasant) from Melrose Street to

Showground Road

MOUNT PLEASANT Melrose Street to Showground Road 8 2023 $4,911 38


Left footpath - South Terrace (Nuriootpa) from The Crescent start of bitumen to end

of bitumen

NURIOOTPA The Crescent start of bitumen to end of bitumen

8 2023 $4,378 30


Left footpath - Third Street (Nuriootpa) from First Street to Old Kapunda Road

NURIOOTPA First Street to Old Kapunda Road 8 2023 $8,588 29


Left footpath - Third Street (Nuriootpa) from Gawler Street to First Street

NURIOOTPA Gawler Street to First Street 8 2023 $6,876 29


Left footpath - William Street (Lyndoch) from Gilbert Street to Lindsay Court

LYNDOCH Gilbert Street to Lindsay Court 8 2023 $1,796 34


Left footpath - Yettie Road (Williamstown) from Johnson Street to Adams Road

WILLIAMSTOWN Johnson Street to Adams Road 8 2023 $41,910 33


Right footpath - Barossa Valley Way (Tanunda) from Seppeltsfield Road to

Burrings Road

Tanunda Seppeltsfield Road to Burrings Road 8 2023 $64,591 9


Right footpath - First Street (Nuriootpa) from Third Street to Fourth Street

NURIOOTPA Third Street to Fourth Street 8 2023 $4,041 29


Right footpath - Gilbert Street (Lyndoch) from Colonel Light Drive to Lord Lynedoch

Street

LYNDOCH Colonel Light Drive to Lord Lynedoch Street

8 2023 $7,484 30


Right footpath - Gilbert Street (Lyndoch) from John Street to railway crossing

LYNDOCH John Street to railway crossing 8 2023 $3,929 18


Right footpath - Gilbert Street (Lyndoch) from Robert Street to William Street

LYNDOCH Robert Street to William Street 8 2023 $4,865 18


Right footpath - Julius Street (Tanunda) from Murray Street to Wiliam Street

TANUNDA Murray Street to Wiliam Street 8 2023 $842 30


Right footpath - Lyndoch Valley Road (Lyndoch) from Railway line foot bridge

LYNDOCH Railway line foot bridge 8 2023 $842 42


Right footpath - Magnolia Street (Tanunda) from Murray Street to end

bitumen footpath

TANUNDA Murray Street to end bitumen footpath 8 2023 $7,578 30

- 121 -



Right footpath - Miller Street (Springton) from Johannes Street to Williamstown

Road

SPRINGTON Johannes Street to Williamstown Road 8 2023 $1,544 23


Right Footpath - Muecke Court, (Tanunda) From MacDonnell Street to Edward Street

TANUNDA From MacDonnell Street To Edward Street 8 2023 $1,372 12


Right footpath - Murray Street (Nuriootpa) from Old Sturt Highway to Chardonnay

Drive

NURIOOTPA Old Sturt Highway to Chardonnay Drive 8 2023 $12,629 21


Right footpath - Murray Street (Tanunda) from Barossa Valley Highway end of rubble

TANUNDA Barossa Valley Highway end of rubble 8 2023 $9,591 22


Right footpath - Murray Street (Tanunda) from end rubble to Fiedler Street

TANUNDA end rubble to Fiedler Street 8 2023 $2,666 15


Right footpath - Murray Street (Tanunda) from Hobbs Street to Petras Street

TANUNDA Hobbs Street to Petras Street 8 2023 $2,470 22


Right footpath - Noske Street (Lyndoch) from off Lyndoch Valley Road

LYNDOCH off Lyndoch Valley Road 8 2023 $3,171 35


Right footpath - Research Road (Tanunda) from corner Magnolia Road

TANUNDA corner Magnolia Road 8 2023 $3,181 19


Right footpath - Schilling Street (Angaston) from Murray Street to end bitumen

ANGASTON Murray Street to end bitumen 8 2023 $1,646 24

15956 Natural Footpath Surface Type Right footpath - College Street (Tanunda) from Murray Street to Bilyara Street

TANUNDA Murray Street to Bilyara Street 8 2023 $0 20

8624 Rural Heavy Use Spray Seal Bitumen Surface

Dispose - Surface - Light Pass Road (0105) from Surface change-Spray Sealed to

Magnolia Road

Surface change-Spray Sealed

Magnolia Road 8 2023 $0 22


Surface - Hurns Road (0010) from Radford Road to Long Gully Road

Radford Road Long Gully Road 8 2023 $94,318 22


Surface - Nitschke Road (0010) from Koch Road to Koch Road + 600m

Koch Road Koch Road + 600m 8 2023 $18,324 20


Surface - Nitschke Road (0011) from Koch Road + 600m to end

Koch Road + 600m End 8 2023 $11,453 13

9407 Rural Sheeted Surface Function Priority 7 Surface - McCallum Road (0005) from Kalbeeba Road to Kalperri Road

Kalbeeba Road Kalperri Road 8 2023 $58,261 13

Subtotal $483,428



Nuraip Road




Seppeltsfield Road



Disposed - Surface - Burings Road (0006) from 356m from End to Barossa Valley

Highway

356m from end Barossa Valley Highway 9 2024 $0 22


Disposed - Surface - Hurns Road (0005) from Eden Valley Road to Radford Road

Eden Valley Road Radford Road 9 2024 $0 22


Dipsosed - Surface - Balmoral Road - Kalbeeba (0005) from Calton Road to John

Schultz Court

Calton Road John Schultz Court 9 2024 $0 25

- 122 -



Disposed - Surface - Balmoral Road - Kalbeeba (0010) from John Schultz Court

to Road No-0788

John Schultz Court Road No-0788 9 2024 $0 25


Disposed - Surface - Balmoral Road - Kalbeeba (0015) from Road No-0788 to

Lucks Road

Road No-0788 Lucks Road 9 2024 $0 25


Disposed - Surface - Balmoral Road - Kalbeeba (0020) from Lucks Road to

Allendale Road

Lucks Road Allendale Road 9 2024 $0 25


Disposed - Surface - Balmoral Road - Kalbeeba (0025) from Allendale Road to

Devon Road

Allendale Road Devon Road 9 2024 $0 25


Disposed - Surface - Balmoral Road - Kalbeeba (0030) from Devon Road to

Kalbeeba Road

Devon Road Kalbeeba Road 9 2024 $0 25


Surface - Elder Road (0010) from Cromer Road to End - 0.306km

Cromer Road End - 0.306km 9 2024 $4,748 21


Surface - Allendale Road (0030) from Segment limit to Para Wirra Road

Segment limit Para Wirra Road 9 2024 $42,226 22


Surface - Lucks Road (0005) from Calton Road to Meadow Road

Calton Road Meadow Road 9 2024 $14,197 16

9397 Rural Sheeted Surface Function Priority 7 Surface - McCallum Road (0015) from William Hawke Road to Winton Road

William Hawke Road Winton Road 9 2024 $18,315 20


Surface - Rowland Street (0005) from Penrice Road to Sarah Street

Penrice Road Sarah Street 9 2024 $2,972 4

Subtotal $183,109

Program Total $9,733,378

- 123 -


Appendix C Budgeted Expenditures Accommodated in LTFP

Barossa - Report 7 - LTFP Expenditure Projections

Projected Expenditure 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Capital Expenditure on

Renewal/Replacement of existing

assets

$5,529 $1,090 $8 $982 $352 $382 $163 $561 $483 $183

Capital Expenditure on

Upgrade/New assets

$1,033 $1,389 $196 $204 $215 $221 $228 $236 $243 $252

Operational cost of existing assets $1,880 $1,880 $1,880 $1,880 $1,880 $1,880 $1,880 $1,880 $1,880 $1,880

Maintenance cost of existing assets $1,262 $1,324 $1,324 $1,324 $1,324 $1,324 $1,324 $1,324 $1,324 $1,324

Operational cost of New assets $0 $12 $27 $30 $34 $38 $42 $46 $50 $54

Maintenance cost of New assets $0 $8 $19 $21 $24 $27 $30 $33 $35 $38

All dollar values in ($'000)'s

- 124 -


- 125 -


Appendix D State of The Assets

- 126 -


Appendix E Abbreviations

AAAC Average annual asset consumption

AM Asset management

Asset

Management

Plan

Asset management plan

ARI Average recurrence interval

ASC Annual service cost

BOD Biochemical (biological) oxygen demand

CRC Current replacement cost

CWMS Community wastewater management systems

DA Depreciable amount

DRC Depreciated replacement cost

EF Earthworks/formation

IRMP Infrastructure Risk Management Plan

LCC Life Cycle cost

LCE Life cycle expenditure

LTFP Long Term Financial Plan

MMS Maintenance management system

PCI Pavement condition index

RV Residual value

SoA State of the Assets

SS Suspended solids

vph Vehicles per hour

WDCRC Written down current replacement cost

OTR Office of the Technical Regulator

ESCOSA Essential Services Commission of South Australia

- 127 -


OMG Organisation Managers Group

DPTI Department of Planning, Transport and Infrastructure

SAPN SA Power Networks

AASB Australian Accounting Standards Board

SALGAG South Australian Local Government Auditors Group

SALGFMG

South Australian Local Government Financial Managers

Group

LL1 Long life Component 1

LL2 Long Life Component 2

- 128 -


Appendix F Glossary

Annual service cost (ASC)

Reporting actual cost

The annual (accrual) cost of providing

a service including operations,

maintenance, depreciation, finance /

opportunity and disposal costs less

revenue.

For investment analysis and budgeting

An estimate of the cost that would be

tendered, per annum, if tenders were

called for the supply of a service to a

performance specification for a fixed

term. The Annual Service Cost

includes operations, maintenance,

depreciation, finance / opportunity

and disposal costs, less revenue.

Asset

A resource controlled by an entity as a

result of past events and from which

future economic benefits are

expected to flow to the entity.

Infrastructure assets are a sub-class of

property, plant and equipment which

are non-current assets with a life

greater than 12 months and enable

services to be provided.

Asset category

Sub-group of assets within a class

hierarchy for financial reporting and

management purposes.

Asset class

A group of assets having a similar

nature or function in the operations of

an entity, and which, for purposes of

disclosure, is shown as a single item

without supplementary disclosure.

Asset condition assessment

The process of continuous or periodic

inspection, assessment, measurement

and interpretation of the resultant

data to indicate the condition of a

specific asset so as to determine the

need for some preventative or

remedial action.

Asset hierarchy

A framework for segmenting an asset

base into appropriate classifications.

The asset hierarchy can be based on

asset function or asset type or a

combination of the two.

Asset management (AM)

The combination of management,

financial, economic, engineering and

other practices applied to physical

assets with the objective of providing

the required level of service in the most

cost effective manner.

Asset renewal funding ratio

The ratio of the net present value of

asset renewal funding

accommodated over a 10 year period

in a Long Term Financial Plan relative

to the net present value of projected

capital renewal expenditures identified

in an asset management plan for the

same period [AIFMG Financial

Sustainability Indicator No 8].

Average annual asset consumption

(AAAC)*

The amount of an organisation’s asset

base consumed during a reporting

period (generally a year). This may be

calculated by dividing the

depreciable amount by the useful life

(or total future economic

benefits/service potential) and totalled

for each and every asset OR by

dividing the carrying amount

(depreciated replacement cost) by

the remaining useful life (or remaining

future economic benefits/service

potential) and totalled for each and

every asset in an asset category or

class.

Borrowings

A borrowing or loan is a contractual

obligation of the borrowing entity to

deliver cash or another financial asset

to the lending entity over a specified

period of time or at a specified point in

time, to cover both the initial capital

provided and the cost of the interest

incurred for providing this capital. A

borrowing or loan provides the means

for the borrowing entity to finance

outlays (typically physical assets) when

it has insufficient funds of its own to do

so, and for the lending entity to make

a financial return, normally in the form

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of interest revenue, on the funding

provided.

Capital expenditure

Relatively large (material) expenditure,

which has benefits, expected to last

for more than 12 months. Capital

expenditure includes renewal,

expansion and upgrade. Where

capital projects involve a combination

of renewal, expansion and/or upgrade

expenditures, the total project cost

needs to be allocated accordingly.

Capital expenditure - expansion

Expenditure that extends the capacity

of an existing asset to provide benefits,

at the same standard as is currently

enjoyed by existing beneficiaries, to a

new group of users. It is discretionary

expenditure, which increases future

operations and maintenance costs,

because it increases the organisation’s

asset base, but may be associated

with additional revenue from the new

user group, eg. extending a drainage

or road network, the provision of an

oval or park in a new suburb for new

residents.

Capital expenditure - new

Expenditure which creates a new asset

providing a new service/output that

did not exist beforehand. As it

increases service potential it may

impact revenue and will increase

future operations and maintenance

expenditure.

Capital expenditure - renewal

Expenditure on an existing asset or on

replacing an existing asset, which

returns the service capability of the

asset up to that which it had originally.

It is periodically required expenditure,

relatively large (material) in value

compared with the value of the

components or sub-components of

the asset being renewed. As it

reinstates existing service potential, it

generally has no impact on revenue,

but may reduce future operations and

maintenance expenditure if

completed at the optimum time, eg.

resurfacing or resheeting a material

part of a road network, replacing a

material section of a drainage network

with pipes of the same capacity,

resurfacing an oval.

Capital expenditure - upgrade

Expenditure, which enhances an

existing asset to provide a higher level

of service or expenditure that will

increase the life of the asset beyond

that which it had originally. Upgrade

expenditure is discretionary and often

does not result in additional revenue

unless direct user charges apply. It will

increase operations and maintenance

expenditure in the future because of

the increase in the organisation’s asset

base, eg. widening the sealed area of

an existing road, replacing drainage

pipes with pipes of a greater capacity,

enlarging a grandstand at a sporting

facility.

Capital funding

Funding to pay for capital

expenditure.

Capital grants

Monies received generally tied to the

specific projects for which they are

granted, which are often upgrade

and/or expansion or new investment

proposals.

Capital investment expenditure

See capital expenditure definition

Capitalisation threshold

The value of expenditure on non-

current assets above which the

expenditure is recognised as capital

expenditure and below which the

expenditure is charged as an expense

in the year of acquisition.

Carrying amount

The amount at which an asset is

recognised after deducting any

accumulated depreciation /

amortisation and accumulated

impairment losses thereon.

Class of assets

See asset class definition

Component

Specific parts of an asset having

independent physical or functional

identity and having specific attributes

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such as different life expectancy,

maintenance regimes, risk or criticality.

Core asset management

Asset management which relies

primarily on the use of an asset register,

maintenance management systems,

job resource management, inventory

control, condition assessment, simple

risk assessment and defined levels of

service, in order to establish alternative

treatment options and long-term

cashflow predictions. Priorities are

usually established on the basis of

financial return gained by carrying out

the work (rather than detailed risk

analysis and optimised decision-

making).

Cost of an asset

The amount of cash or cash

equivalents paid or the fair value of

the consideration given to acquire an

asset at the time of its acquisition or

construction, including any costs

necessary to place the asset into

service. This includes one-off design

and project management costs.

Critical assets

Assets for which the financial, business

or service level consequences of

failure are sufficiently severe to justify

proactive inspection and

rehabilitation. Critical assets have a

lower threshold for action than non-

critical assets.

Current replacement cost (CRC)

The cost the entity would incur to

acquire the asset on the reporting

date. The cost is measured by

reference to the lowest cost at which

the gross future economic benefits

could be obtained in the normal

course of business or the minimum it

would cost, to replace the existing

asset with a technologically modern

equivalent new asset (not a second

hand one) with the same economic

benefits (gross service potential)

allowing for any differences in the

quantity and quality of output and in

operating costs.

Deferred maintenance

The shortfall in rehabilitation work

undertaken relative to that required to

maintain the service potential of an

asset.

Depreciable amount

The cost of an asset, or other amount

substituted for its cost, less its residual

value.

Depreciated replacement cost (DRC)

The current replacement cost (CRC) of

an asset less, where applicable,

accumulated depreciation calculated

on the basis of such cost to reflect the

already consumed or expired future

economic benefits of the asset.

Depreciation / amortisation

The systematic allocation of the

depreciable amount (service

potential) of an asset over its useful life.

Economic life

See useful life definition.

Expenditure

The spending of money on goods and

services. Expenditure includes

recurrent and capital outlays.

Expenses

Decreases in economic benefits during

the accounting period in the form of

outflows or depletions of assets or

increases in liabilities that result in

decreases in equity, other than those

relating to distributions to equity participants.

Fair value

The amount for which an asset could

be exchanged, or a liability settled,

between knowledgeable, willing

parties, in an arms length transaction.

Financing gap

A financing gap exists whenever an

entity has insufficient capacity to

finance asset renewal and other

expenditure necessary to be able to

appropriately maintain the range and

level of services its existing asset stock

was originally designed and intended

to deliver. The service capability of the

existing asset stock should be

determined assuming no additional

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operating revenue, productivity

improvements, or net financial liabilities

above levels currently planned or

projected. A current financing gap

means service levels have already or

are currently falling. A projected

financing gap if not addressed will

result in a future diminution of existing

service levels.

Heritage asset

An asset with historic, artistic, scientific,

technological, geographical or

environmental qualities that is held

and maintained principally for its

contribution to knowledge and culture

and this purpose is central to the

objectives of the entity holding it.

Impairment Loss

The amount by which the carrying

amount of an asset exceeds its

recoverable amount.

Infrastructure assets

Physical assets that contribute to

meeting the needs of organisations or

the need for access to major

economic and social facilities and

services, eg. roads, drainage,

footpaths and cycleways. These are

typically large, interconnected

networks or portfolios of composite

assets. The components of these

assets may be separately maintained,

renewed or replaced individually so

that the required level and standard of

service from the network of assets is

continuously sustained. Generally the

components and hence the assets

have long lives. They are fixed in place

and are often have no separate

market value.

Investment property

Property held to earn rentals or for

capital appreciation or both, rather

than for:

(a) use in the production or supply of

goods or services or for

administrative purposes; or

(b) sale in the ordinary course of

business.

Key performance indicator

A qualitative or quantitative measure

of a service or activity used to

compare actual performance against

a standard or other target.

Performance indicators commonly

relate to statutory limits, safety,

responsiveness, cost, comfort, asset

performance, reliability, efficiency,

environmental protection and

customer satisfaction.

Level of service

The defined service quality for a

particular service/activity against

which service performance may be

measured. Service levels usually relate

to quality, quantity, reliability,

responsiveness, environmental impact,

acceptability and cost.

Life Cycle Cost *

1. Total LCC The total cost of an asset

throughout its life including

planning, design, construction,

acquisition, operation,

maintenance, rehabilitation and

disposal costs.

2. Average LCC The life cycle cost

(LCC) is average cost to provide

the service over the longest asset

life cycle. It comprises average

operations, maintenance

expenditure plus asset

consumption expense, represented

by depreciation expense

projected over 10 years. The Life

Cycle Cost does not indicate the

funds required to provide the

service in a particular year.

Life Cycle Expenditure

The Life Cycle Expenditure (LCE) is the

average operations, maintenance

and capital renewal expenditure

accommodated in the Long Term

Financial Plan over 10 years. Life Cycle

Expenditure may be compared to

average Life Cycle Cost to give an

initial indicator of affordability of

projected service levels when considered with asset age profiles.

Loans / borrowings

See borrowings.

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Maintenance

All actions necessary for retaining an

asset as near as practicable to an

appropriate service condition,

including regular ongoing day-to-day

work necessary to keep assets

operating, eg road patching but

excluding rehabilitation or renewal. It is

operating expenditure required to

ensure that the asset reaches its

expected useful life.

• Planned maintenance

Repair work that is identified and

managed through a maintenance

management system (MMS). MMS

activities include inspection,

assessing the condition against

failure/breakdown

criteria/experience, prioritising

scheduling, actioning the work and

reporting what was done to

develop a maintenance history

and improve maintenance and

service delivery performance.

• Reactive maintenance

Unplanned repair work that is

carried out in response to service

requests and management/

supervisory directions.

• Specific maintenance

Maintenance work to repair

components or replace sub-

components that needs to be

identified as a specific

maintenance item in the

maintenance budget.

• Unplanned maintenance

Corrective work required in the

short-term to restore an asset to

working condition so it can

continue to deliver the required

service or to maintain its level of

security and integrity.

Maintenance expenditure *

Recurrent expenditure, which is

periodically or regularly required as

part of the anticipated schedule of

works required to ensure that the asset

achieves its useful life and provides the

required level of service. It is

expenditure, which was anticipated in

determining the asset’s useful life.

Materiality

The notion of materiality guides the

margin of error acceptable, the

degree of precision required and the

extent of the disclosure required when

preparing general purpose financial

reports. Information is material if its

omission, misstatement or non-

disclosure has the potential,

individually or collectively, to influence

the economic decisions of users taken

on the basis of the financial report or

affect the discharge of accountability

by the management or governing

body of the entity.

Modern equivalent asset

Assets that replicate what is in

existence with the most cost-effective

asset performing the same level of

service. It is the most cost efficient,

currently available asset which will

provide the same stream of services as

the existing asset is capable of

producing. It allows for technology

changes and, improvements and

efficiencies in production and

installation techniques

Net present value (NPV)

The value to the organisation of the

cash flows associated with an asset,

liability, activity or event calculated

using a discount rate to reflect the

time value of money. It is the net

amount of discounted total cash

inflows after deducting the value of

the discounted total cash outflows

arising from eg the continued use and

subsequent disposal of the asset after

deducting the value of the discounted

total cash outflows.

Non-revenue generating investments

Investments for the provision of goods

and services to sustain or improve

services to the community that are not

expected to generate any savings or

revenue to the Council, eg. parks and

playgrounds, footpaths, roads and

bridges, libraries, etc.

Operations

Regular activities to provide services

such as public health, safety and

amenity, eg street sweeping, grass

mowing and street lighting.

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Operating expenditure

Recurrent expenditure, which is

continuously required to provide a

service. In common use the term

typically includes, eg power, fuel, staff,

plant equipment, on-costs and

overheads but excludes maintenance

and depreciation. Maintenance and

depreciation is on the other hand

included in operating expenses.

Operating expense

The gross outflow of economic

benefits, being cash and non cash

items, during the period arising in the

course of ordinary activities of an

entity when those outflows result in

decreases in equity, other than

decreases relating to distributions to

equity participants.

Operating expenses

Recurrent expenses continuously

required to provide a service, including

power, fuel, staff, plant equipment,

maintenance, depreciation, on-costs

and overheads.

Operations, maintenance and renewal

financing ratio

Ratio of estimated budget to

projected expenditure for operations,

maintenance and renewal of assets

over a defined time (eg 5, 10 and 15

years).

Operations, maintenance and renewal

gap

Difference between budgeted

expenditures in a Long Term Financial

Plan (or estimated future budgets in

absence of a Long Term Financial

Plan) and projected expenditures for

operations, maintenance and renewal

of assets to achieve/maintain

specified service levels, totalled over a

defined time (e.g. 5, 10 and 15 years).

Pavement management system (PMS)

A systematic process for measuring

and predicting the condition of road

pavements and wearing surfaces over

time and recommending corrective

actions.

PMS Score

A measure of condition of a road

segment determined from a Pavement

Management System.

Rate of annual asset consumption *

The ratio of annual asset consumption

relative to the depreciable amount of

the assets. It measures the amount of

the consumable parts of assets that

are consumed in a period

(depreciation) expressed as a

percentage of the depreciable

amount.

Rate of annual asset renewal *

The ratio of asset renewal and

replacement expenditure relative to

depreciable amount for a period. It

measures whether assets are being

replaced at the rate they are wearing

out with capital renewal expenditure

expressed as a percentage of

depreciable amount (capital renewal

expenditure/DA).

Rate of annual asset upgrade/new *

A measure of the rate at which assets

are being upgraded and expanded

per annum with capital upgrade/new

expenditure expressed as a

percentage of depreciable amount

(capital upgrade/expansion

expenditure/DA).

Recoverable amount

The higher of an asset's fair value, less

costs to sell and its value in use.

Recurrent expenditure

Relatively small (immaterial)

expenditure or that which has benefits

expected to last less than 12 months.

Recurrent expenditure includes

operations and maintenance

expenditure.

Recurrent funding

Funding to pay for recurrent

expenditure.

Rehabilitation

See capital renewal expenditure

definition above.

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Remaining useful life

The time remaining until an asset

ceases to provide the required service

level or economic usefulness. Age plus

remaining useful life is useful life.

Renewal

See capital renewal expenditure

definition above.

Residual value

The estimated amount that an entity

would currently obtain from disposal of

the asset, after deducting the

estimated costs of disposal, if the asset

were already of the age and in the

condition expected at the end of its

useful life.

Revenue generating investments

Investments for the provision of goods

and services to sustain or improve

services to the community that are

expected to generate some savings or

revenue to offset operating costs, eg

public halls and theatres, childcare

centres, sporting and recreation

facilities, tourist information centres,

etc.

Risk management

The application of a formal process to

the range of possible values relating to

key factors associated with a risk in

order to determine the resultant

ranges of outcomes and their

probability of occurrence.

Section or segment

A self-contained part or piece of an

infrastructure asset.

Service potential

The total future service capacity of an

asset. It is normally determined by

reference to the operating capacity

and economic life of an asset. A

measure of service potential is used in

the not-for-profit sector/public sector

to value assets, particularly those not

producing a cash flow.

Service potential remaining

A measure of the future economic

benefits remaining in assets. It may be

expressed in dollar values (Fair Value)

or as a percentage of total

anticipated future economic benefits.

It is also a measure of the percentage

of the asset’s potential to provide

services that is still available for use in

providing services (Depreciated

Replacement Cost/Depreciable

Amount).

Specific Maintenance

Replacement of higher value

components/sub-components of

assets that is undertaken on a regular

cycle including repainting,

replacement of air conditioning

equipment, etc. This work generally

falls below the capital/ maintenance

threshold and needs to be identified in

a specific maintenance budget

allocation.

Strategic Longer-Term Plan

A plan covering the term of office of

councillors (4 years minimum)

reflecting the needs of the community

for the foreseeable future. It brings

together the detailed requirements in

the Council’s longer-term plans such

as the asset management plan and

the long-term financial plan. The plan

is prepared in consultation with the

community and details where the

Council is at that point in time, where it

wants to go, how it is going to get

there, mechanisms for monitoring the

achievement of the outcomes and

how the plan will be resourced.

Sub-component

Smaller individual parts that make up a

component part.

Useful life

Either:

(a) the period over which an asset is

expected to be available for use by

an entity, or

(b) the number of production or similar

units expected to be obtained from

the asset by the entity.

It is estimated or expected time

between placing the asset into service

and removing it from service, or the

estimated period of time over which

the future economic benefits

embodied in a depreciable asset, are

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expected to be consumed by the

Council.

Value in Use

The present value of future cash flows

expected to be derived from an asset

or cash generating unit. It is deemed

to be depreciated replacement cost

(DRC) for those assets whose future

economic benefits are not primarily

dependent on the asset's ability to

generate net cash inflows, where the

entity would, if deprived of the asset,

replace its remaining future economic

benefits.

Source: IPWEA, 2009, Glossary

Additional and modified glossary items

shown *

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