Buildings Asset Management Plan

Transcription

1 Buildings Asset Management Plan Version 1.0 June 2011 District Council of Mount Barker Buildings Asset Management Plan Page 1 of 38

2 Document Control Rev No Date Revision Details Author Reviewer Approver /09/2008 Initial draft PGB ACEAM /2008 Additions by ACEAM Pty Ltd ACEAM SW /2010 Additions and updates by ACEAM Pty Ltd ACEAM SW 0.4 6/2010 Relocate Glossary, Update Risk Register SW PB /3/11 Prepare Document for Consultation SW PB BC 1.0 4/06/11 Endorsed by Council SW PB Council Copyright 2007 All rights reserved. This Infrastructure and Asset Management Plan template was prepared for the Local Government Association of South Australia by the Institute of Public Works Engineering Australia, (IPWEA), Jeff Roorda & Associates (JRA) and Skilmar Systems for the use of South Australian councils only under the LGA s Sustainable Asset Management in SA Program. District Council of Mount Barker Buildings Asset Management Plan Page 2 of 38

3 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY... 4 Council s Building Portfolio... 4 Measuring our Performance... 4 Plans for the Future... 4 Status of the Building Portfolio... 4 Financial Projections... 5 The Next Steps INTRODUCTION Background Goals and Objectives of Asset Management Plan Framework Core and Advanced Asset Management LEVELS OF SERVICE Customer Research and Expectations Legislative Requirements Strategic Goals Current Levels of Service Community Levels of Service: Technical Levels of Service: Desired Levels of Service FUTURE DEMAND Demand Forecast Demographics Changes in Technology Demand Management Plan LIFECYCLE MANAGEMENT PLAN Background Data Physical parameters Asset capacity and performance Asset condition Asset valuations Risk Management Plan Routine Maintenance Plan Maintenance plan Renewal/Replacement Plan Renewal plan Summary of future renewal expenditure Creation/Acquisition/Upgrade Plan Selection criteria Summary of future upgrade/new assets expenditure FINANCIAL SUMMARY Financial Projections Sustainability of service delivery Funding Strategy Valuation Forecasts Key Assumptions made in Financial Forecasts ASSET MANAGEMENT PRACTICES Accounting/Financial Systems Asset Management Systems Information Flow Requirements and Processes Standards and Guidelines PLAN IMPROVEMENT AND MONITORING Performance Measures Improvement Plan Monitoring and Review Procedures REFERENCES APPENDICES GLOSSARY District Council of Mount Barker Buildings Asset Management Plan Page 3 of 38

4 1. EXECUTIVE SUMMARY Council exists to provide services to its community. Some of these services are provided using building assets. Council s goal in managing its building assets is to meet the required level of service in the most cost effective manner for present and future consumers. In working towards this goal, Council is guided by the practices set out in the International Infrastructure Maintenance Manual. This Buildings Asset Management Plan (BAMP) documents Council s current practices and performance. Importantly, it also provides direction for continuous improvement of the asset management practices applied to Council s building portfolio. Council s Building Portfolio Council provides a wide range of building types to accommodate a broad array of community activities including recreational, cultural, social, educational, administrative and tourism. In summary, Council s building portfolio consists of the following asset types: Asset Category Number of Assets Replacement Value Administration 21 $2,953,571 Business Undertakings 35 $4,153,082 Community Services 94 $20,330,078 Recreation 180 $13,447,119 TOTAL 330 $40,883,850 Measuring our Performance Building assets will be maintained in a suitable state in terms of condition, capacity and functionality. The performance standards that define what is suitable are termed Levels of Service. Council has already adopted a set of technical Levels of Service that guide the day-to-day management of building assets. Through this BAMP, Council has embarked on the next stage of Levels of Service with the development of strategic targets for its longer-term management actions. Ultimately it is community opinion that is the best measure of Council s performance and the Local Government Association of South Australia Comparative Performance Measures in Local Government Customer Satisfaction survey is a very useful resource. While Council s performance is around the state average, the overall trend in recent years has been a declining level of satisfaction. Improved asset management practices will assist Council in reversing this trend. Plans for the Future The District has experienced a population growth of around 3% per annum in recent years and this is expected to continue into the foreseeable future. Catering for the future is more than simply accommodating the population growth. Changes in the type of services required due to changing demographics and new technologies are also important factors. Council is not currently well positioned to deal with all these factors and this BAMP proposes actions to alleviate this situation. Since the initial draft of this plan, the State s Ministerial Development Plan Amendment (MDPA) for the rezoning of land in and around Mount Barker has been released. The growth predicted from this MDPA is likely to surpass previous assumptions which have been used for the basis of this plan. Details of new gifted infrastructure and the impact of future growth on existing assets are not yet known. Council has a number of staff working on this and at this stage it is considered premature to model the future impacts with any confidence. Status of the Building Portfolio The building assets were last re-valued by APV at June In summary, the values are: Current Replacement Cost $40,883,850 Depreciable Amount $4,991,308 District Council of Mount Barker Buildings Asset Management Plan Page 4 of 38

5 Depreciated Replacement Cost $35,892,542 Annual Depreciation Expense $309,316 As part of the revaluation process, the buildings were assessed for the overall condition of the building envelope, floor and roof and also their capacity and functionality. These results are tabulated on the following page showing the percentage of buildings at each rating score. Rating Scores Building Condition Envelope Floor Roof Building Capacity Building Functionality 1 Excellent 15% 8% 9% 4% 4% 2 Good 27% 28% 33% 70% 76% 3 Average 30% 32% 30% 16% 12% 4 Below Average 18% 21% 19% 8% 4% 5 Poor 9% 10% 7% 2% 3% 6 Very Poor 1% 2% 1% 1% 1% Building Condition, Capacity and Functionality Assessment June Financial Projections Modelling of the building portfolio has been undertaken using the MyPredictor modelling tool. Below is a graph of predicted Capital Renewal and Upgrade Expenditure for 20 years. This shows that the capital expenditure on the existing building portfolio is required to be a minimum of $500,000 per annum. This figure does not include the routine maintenance activities necessary to keep the buildings functioning. It must be noted however that, as discussed in the body of this BAMP, the model was only able to generate acceptable outcomes for the first 5 years. This situation is due to limitations brought on by the limited data currently available. Increasing confidence in the modelling results through data quality improvements is one of the key actions recommended in the Improvement Plan of this BAMP. 20 Year Financial Projection for Capital Renewal and Upgrade Expenditure (Note: Sustainability and Maintenance factors were not included in this model) The Next Steps A key output of this plan is the Asset Management Improvement Plan set out in Section 8. This section sets improvement tasks that are aimed at improving the quality of Council s asset management practices. A key area for action is improving data quality and modelling techniques so as to increase the confidence in the financial projections. Another key area is expanding on the currently adopted Levels of Service and engaging with the community to ensure that there is alignment between community expectations and Council performance. District Council of Mount Barker Buildings Asset Management Plan Page 5 of 38

6 2. INTRODUCTION 2.1 Background This Buildings Asset Management Plan (BAMP) is to demonstrate responsible management of building assets and services provided from those assets, compliance with regulatory requirements, and to communicate the funding required to provide the required levels of service. The BAMP is to be read in conjunction with the following associated planning documents: Risk Management Framework Asset Management Policy Asset Management Strategy Engineering Design Standards Community Strategic Plan Development Plan Long-Term Financial Plan Environmental Action Plan This BAMP covers the following infrastructure assets: All buildings and major structures owned by Council This BAMP excludes the following infrastructure assets: All other structures and improvements to land. As can be seen from Table 2.1 below, Council is responsible for 330 buildings throughout the District. These buildings vary in size from small sheds to significant community buildings such as the $4.7 million Mount Barker Recreation Centre. Asset Category Number of Assets Replacement Value Administration 21 $2,953,571 Business Undertakings 35 $4,153,082 Community Services 94 $20,330,078 Recreation 180 $13,447,119 TOTAL 330 $40,883,850 Table 2.1 Assets covered by this Plan Key stakeholders in the preparation and implementation of this infrastructure asset management plan are set out in Table 2.2 on the next page. 2.2 Goals and Objectives of Asset Management Council exists to provide services to its community. Some of these services are provided using building assets. Council has acquired its building assets through purchase, construction by either council staff or contractors and by transfer of assets constructed by developers where they are required as a condition permitting land development. The overall thrust of this BAMP is guided by Council s Vision, Mission, Goals and Objectives. Council s Vision is: Our community is the heart of our district. We value our natural and rural environment and through leadership and community spirit we strive to achieve a positive, safe and sustainable future. District Council of Mount Barker Buildings Asset Management Plan Page 6 of 38

7 Group ACEAM Pty Ltd Field Services Unit Elected Members Senior Management Corporate Services Governance & Projects Role Provide support for the development of asset management plans and the implementation of effective asset management principles within Council. Also independently endorse asset revaluation methodology. Provide local knowledge level detail on all assets in the asset class. Verify the location and condition of assets. Describe maintenance standards deployed and Council s ability to meet technical service levels. Endorsement of the asset management policy, strategy and plans. Set high level direction through the development of asset management principles in the Community Strategic Plan. Endorse the development of asset management plans and provide the resources required to complete this task. Set high level priorities for asset management development in Council and raise the awareness of this function among Council staff and contractors. Support the implementation of actions resulting from this plan and prepared to make changes to a better way of managing assets and delivering services. Support for an asset management driven budget and Long Term Financial Plan. Consolidating the asset register and ensuring the asset valuations are accurate. Development of supporting policies such as capitalisation and depreciation. Preparation of asset sustainability and financial reports incorporating asset depreciation in compliance with current Australian accounting standards. AM and GIS support and administration. Overall management of the Asset base ensuring maintenance and capital works are completed on time and within budget. Liaison with stakeholders to further develop facilities to meet the community s needs. Table 2.2 Key Stakeholders involved in this Plan Council s Mission is: Council provides leadership in service, community engagement and financial management. We foster partnerships to achieve our shared aspirations for the District and promote it as an area of excellence for the wider region. Council s Strategic Plan sets out a series of Desired Outcomes in each of five Goal Areas thus providing a high-level map for the development of specific goals and objectives. Table 2.3 on the next page shows how a number of the Desired Outcomes link to this BAMP. The goals and targets in this BAMP have been developed to be consistent with and contribute to the achievement of Council s strategic goals. Council s goal in managing infrastructure assets is to meet the required level of service in the most cost effective manner for present and future consumers. In working towards this goal, Council is guided by the practices set out in the International Infrastructure Maintenance Manual (IIMM). The IIMM was developed with public and private sector industry input from Australia, New Zealand, United States, South Africa and the United Kingdom with the objective of promoting best management practice for all infrastructure assets regardless of ownership or location. 1 The key elements of infrastructure asset management are: Taking a life cycle approach, Developing cost-effective management strategies for the long term, Providing a defined level of service and monitoring performance, Understanding and meeting the demands of growth through demand management and infrastructure investment, Managing risks associated with asset failures, Sustainable use of physical resources, Continuous improvement in asset management practices. 2 1 IIMM 2006, Page ii 2 IIMM 2006 Sec 1.1.3, Page 1.3 District Council of Mount Barker Buildings Asset Management Plan Page 7 of 38

8 Goal Area Desired Outcome Actions Guided by the Strategic Plan 1: People, Communities and Culture. 2: Our Environment. 3: Enterprise, Business and Industry. 4: Infrastructure and Human Settlements. 5: Council Leadership. 1.1: A strong sense of community in our towns and neighbourhoods and an inclusive community. 1.2: A creative and artistic community. 1.3: A learning community. 1.4: A healthy and resilient community. 2.1: The Council demonstrates leadership in environmental management and sustainability. 2.2: Water resources and ecosystems are protected and restored. 2.3: The district reduces its Greenhouse gas emissions and adapts to the impacts of climate change. 3.3: A diverse, vibrant and sustainable tourism industry. 3.4: Encourage and support local employment opportunities. 4.2: Preservation of the built heritage and character of the District. 4.3: Accessible and safe communities. 4.6: Towns and communities where cycling and walking is safe and accessible. 4.7: Well maintained and utilised community assets. 4.17: Plan for and manage community assets in partnership with the community including the use of community buildings and sporting facilities. 5.1: Sustainable community finances and assets. 5.2: Effective delivery of services to the community. 5.5: A Council that is a preferred Employer. Community facilities are maintained so they provide a focal point for each community. Performance facilities are kept in a condition fit for their intended purpose. Libraries are maintained in fit condition and upgraded for new expectations brought on by changing technology. Council buildings are maintained in a fit state to facilitate Council fulfilling its commitments in the Community Plan. Council s flagship buildings are used where practical to demonstrate sustainability practices to the community. Water sensitive design practices are incorporated in new buildings and included in major upgrade projects. Energy efficient services are retro-fitted where practical in Council buildings with significant energy consumption. Council s Public Conveniences are regularly cleaned and maintained. Local contractors and suppliers are used for building maintenance work where they can provide the required services to the appropriate standards at a suitable. Council s heritage buildings are maintained in manner sympathetic to their importance to the community. Council s community buildings to be designed with the safety of building users in mind with special emphasis given to those buildings used for evening and weekend activities. Council s community and administration buildings are provided with bicycle parking facilities. Sound asset management practices as set out in this Building Asset Management Plan are used to ensure Council s building assets are appropriately maintained. Community partnership facilities are maintained in accordance with the community partnership agreements. The cost of Council s building assets will be optimised through long-term planning for the future operation, maintenance, renewal and disposal of assets. Community focussed and technical Levels of Service are established to ensure services are delivered effectively. Council workplaces are maintained to provide a safe workplace. Table 2.3 Building Asset Management Actions Guided by Council s Strategic Plan 2.3 Plan Framework Key elements of the plan are Levels of service specifies the services and levels of service to be provided by council. 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 the required services Financial summary what funds are required to provide the required services. Asset management practices Monitoring how the plan will be monitored to ensure it is meeting Council s objectives. District Council of Mount Barker Buildings Asset Management Plan Page 8 of 38

9 Asset management improvement plan A map for preparing an infrastructure asset management plan is shown in Figure 2.1 below. CORPORATE PLANNING Confirm strategic objectives and establish AM policies, strategies & goals. Define responsibilities & ownership. Decide core or advanced AM Pan. Gain organisation commitment. REVIEW/COLLATE ASSET INFORMATION Existing information sources Identify & describe assets. Data collection Condition assessments Performance monitoring Valuation Data AM PLAN REVIEW AND AUDIT INFORMATION MANAGEMENT, and DATA IMPROVEMENT ESTABLISH LEVELS OF SERVICE Establish strategic linkages Define & adopt statements Establish measures & targets Consultation LIFECYCLE MANAGEMENT STRATEGIES Develop lifecycle strategies Describe service delivery strategy Risk management strategies Demand forecasting and management Optimised decision making (renewals, new works, disposals) Optimise maintenance strategies DEFINE SCOPE & STRUCTURE OF PLAN IMPLEMENT IMPROVEMENT STRATEGY FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding IMPROVEMENT PLAN Assess current/desired practices Develop improvement plan IS THE PLAN AFFORDABLE? ITERATION Reconsider service statements Options for funding Consult with Council Consult with Community ANNUAL PLAN / BUSINESS PLAN Figure 2.1 Road Map for preparing an Asset Management Plan Source: IIMM 2006 Fig 1.5.1, p Core and Advanced Asset Management The International Infrastructure Maintenance Manual describes asset management practices as being either Core or Advanced in order to characterise the level of maturity of the practices of an organisation. The current status of an organisation can be best described with a Maturity Level chart. Figure 2.2 on the following page shows the current assessment of the maturity levels of Council asset management practices as they applied to its building assets. Undertaking the tasks set out in the Asset Management Improvement Plan in Section 8 will progressively improve the maturity levels of Council. District Council of Mount Barker Buildings Asset Management Plan Page 9 of 38

10 This BAMP is prepared as a Core asset management plan. 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. Future revisions of this BAMP 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. Maturity Level: Buildings Unaware Aware Syst. Approach Competence Excellence Score Processes & Plans Corporate Registry Management Knowledge of Assets Service Levels & Measurement Demand Analysis & Management Strategic Plan, Lifecycle Analysis Asset Costing & Budgeting Works Management Performance Measurement Legend Current Assessment Ideal Target Figure 2.2 Maturity Level of Council s Asset Management Practices for Buildings District Council of Mount Barker Buildings Asset Management Plan Page 10 of 38

11 3. LEVELS OF SERVICE The factors affecting levels of service can be broken into three broad categories according to their key performance criteria. Customer Requirements: These are customer expectations of the services provided by the utilisation of the asset, which are, in turn, dependent upon the customers ability and willingness to pay. Legislative Requirements: These are those mandatory provisions or standards set by local, state, federal or international bodies that govern asset utilisation, particularly in terms of various issues affecting the general public. Strategic and Corporate Goals: These are the broad framework-based management directives issued within Council. These will are expected to be consistent with Council s goals and values stated in policies, strategies, and the Corporate Plan. The impact of these categories is considered in more detail in Sections 3.1, 3.2 and 3.3. There are two more factors that affect setting the Levels of Service, which by themselves are not considered to be drivers: Availability of resources, primarily financial constraints; and Organisational delivery mechanisms. 3.1 Customer Research and Expectations Council participates in the Local Government Association of South Australia Comparative Performance Measures in Local Government Customer Satisfaction survey. This telephone survey polls a sample of residents on their level of satisfaction with Council s services. Recent customer satisfaction survey reported satisfaction levels are set out in Table 3.1 below. Performance Measure Importance that Council provides & maintains community halls, libraries & cultural buildings Importance that Council provides & maintains facilities for the aged, disabled & special needs groups Performance in providing & maintaining community halls, libraries & cultural buildings Performance in providing & maintaining facilities for the aged, disabled & special needs groups Mt Barker 2006 Satisfaction Level (Mean score out of 10) Mt Barker 2007 Mt Barker 2008 State Average Difference Table 3.1 Community Satisfaction Survey Levels In three of the four measures, the community satisfaction level is below the State Average although not by a significant amount. Of more concern is the trend in satisfaction scores over a three year period. All four scores show a decline. Whether this represents an increasing dissatisfaction with Council s performance or an increasing expectation of Council cannot be determined from the available data. The answer can be found through community consultation using the Levels of Service as the reference point for discussion. District Council of Mount Barker Buildings Asset Management Plan Page 11 of 38

12 3.2 Legislative Requirements Council has to meet many legislative requirements including Australian and State legislation and State regulations. These influence and in some cases determine the Levels of Service. Key legislative requirements are set out in Table 3.2 below. Legislation Local Government Act 1999 Development Act 1993 Disability Discrimination Act 1992 Accounting Standards Occupational Health & Safety Act 1986 Residential Parks Act 2007 Building Code of Australia Plumbers, Gas Fitters and Electricians Act 1995 Retail and Commercial Tenancies Act 1995 Requirement Sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by infrastructure asset management plans for sustainable service delivery. An Act to provide for planning and regulate development in the State; to regulate the use and management of land and buildings, and the design and construction of buildings; to make provision for the maintenance and conservation of land and buildings where appropriate; and for other purposes. This Act makes it unlawful to discriminate against people because of their disability. It sets out requirements for non-discriminatory access to buildings and facilities. Sets out financial management practices for the management of the asset portfolio including valuation and depreciation practices. An Act to provide for the health, safety and welfare of persons at work. An Act to regulate the relationship between residents in residential parks and park owners; and for other purposes. BCA is a uniform set of technical provisions for the design and construction of buildings and other structures throughout Australia. It allows for variations in climate and geological or geographic conditions. It sets out the technical standards for the construction of buildings and the ongoing maintenance of essential services. An Act to regulate plumbers, gas fitters and electricians; and for other purposes. An Act to regulate the relationship of landlord and tenant under residential tenancy agreements; and for other purposes. Table 3.2 Legislative Requirements 3.3 Strategic Goals As discuss in Section 2.2, there is a strong linkage between Council s objectives as set out in its Strategic Plan and sound asset management practices. Levels of Service are standards which are used in the measurement of Council s asset management performance. Logically, the standards set by the Levels of Service must align with the targets set in the Strategic Plan to ensure that Council s practices are aligned with its objectives. 3.4 Current Levels of Service Council has defined Levels of Service in two forms: Community Levels of Service and Technical Levels of Service Community Levels of Service: These are strategic Levels of Service and relate to how the community receives the service in terms of safety, quality, quantity, reliability, responsiveness, cost/efficiency and legislative compliance. Set out in Table 3.3 on the next page are the Community Levels of Service that are under development by Council. These have the aim of setting performance standards at the strategic level to guide the management of Council s building assets. District Council of Mount Barker Buildings Asset Management Plan Page 12 of 38

13 Service Response Performance Level Satisfied Community - Council Buildings Sustainable Management of Building Assets Timely Replacement of Building Assets Efficient Programmed Maintenance Program Efficient Capital Renewal Program Legislative Compliance - Asbestos Legislative Compliance - Essential Services Annual Local Government Customer Satisfaction survey results used to determine satisfaction with Council's buildings Building assets are renewed or replaced at the rate of consumption as measured by the Asset Sustainability Ratio (Renewal Capital Expenditure / Replacement Cost) Building assets are renewed before they severely impact on their service delivery potential as measured by the Asset Consumption Ratio (Written Down Value / Replacement Cost) Programmed Maintenance projects completed on time and within budget each financial year Capital Renewal projects completed on time and within budget each financial year An up-to-date Asbestos Register is available for each building in accordance with the applicable Occupational Health and Safety Regulations Required Essential Services maintenance and Annual Report is completed for each building on time in accordance with the applicable Building Regulations Exceed State Average in each category 3-year average => 100% 3-year average => 70% 90% 95% 100% 100% Legislative Compliance - Cooling Tower Systems Each Cooling Tower System is registered and maintained in accordance with the applicable Building Act and Health Regulations 100% Occupational Health and Safety Identified OH&S hazards are eliminated or controlled within agreed timeframes 100% Availability of Council Buildings Each building will be available to its users during its normal operating hours of the service it supports 95% Heritage Preservation Each Council building listed on the Heritage Register is preserved and maintained in accordance with its Conservation Management Plan Table 3.3 Community Levels of Service 100% Technical Levels of Service: These are operational Levels of Service and relate to technical measures of performance that are lead indicators as to whether or not the Community Levels of Service are being met. In October 2009, Council adopted a set of Technical Levels of Service. These are separately set out in a document titled Building Maintenance Levels of Service version 1.0. The service levels in that document set out the planned performance parameters for 20 separate maintenance tasks across the categories of: Aesthetic Maintenance Services General Maintenance Repair and Replacement Security As an example, Table 3.4 on the following page contains the Service Levels for the maintenance task of Reactive Painting for graffiti removal. District Council of Mount Barker Buildings Asset Management Plan Page 13 of 38

14 Task Paint wall / ceiling Intervention Level Area has been graffitied. Response Time Hierarchy Inspection Time Offensive Graffiti All Other Performance Indicator Targets Premium 1 day 1 day 2 days 80% High 1 day 1 day 5 days 80% General 1 day 1 day 5 days 80% Table 3.4 Technical Levels of Service for Reactive Painting As a Service Level for a typical reactive maintenance task, it defines Response Times for the initial inspection following the receipt of a request for attention and the time allowed for carrying out the required work. In this particular example, separate times are defined for attending to offensive graffiti and for all other requests. This allows Council flexibility in the use of its resources while at the same giving a high service level to matters requiring urgent attention. Resource flexibility is further enhanced by ranking its building assets in a Hierarchy so that important buildings receive a higher grade of service. The Hierarchy used by Council is set out in Table 3.5. The final column of Performance Indicator Targets recognises that the community cannot afford for Council to have infinite resources so that it can guarantee to achieve its Response Times on every occasion. In the case of this example, Council will have met its Service Level if it delivers the required response within the required timeframe for at least 80% of the requests for Reactive Painting. Building Hierarchy Classification Building Description B1 Premium Facility that is of significant importance to the community and/or has high patronage or located within a tourist location i.e. Library, Public toilet in Alec Johnson Park, Mount Barker Town Hall B2 High Facility that is of significant importance to the community and has a medium to low usage i.e. Little Hampton Peace Memorial Hall, Nairn Institute B3 General Facility that has low usage i.e. Kanmantoo Hall, Kanmantoo Toilets, Prospect Hill Hall Table 3.5 Building Hierarchy 3.4 Desired Levels of Service At present, indications of desired levels of service are obtained from various sources including the LGASA Customer Satisfaction survey, residents feedback to Councillors and staff, service requests and correspondence. Council has yet to quantify desired levels of service. This will be done in future revisions of this Building Asset Management Plan. District Council of Mount Barker Buildings Asset Management Plan Page 14 of 38

15 4. FUTURE DEMAND Council s fundamental role is to provide services to the community and its buildings assets are a means to support this. Consequently, future demand for buildings assets is tied to the demand for Council s services. While population growth is a key driver for demand, it is more complex than simply that. Issues such as changing demands for particular services, changing mixes in the balance between public and private service provisions and changing community expectations of service levels, all affect the need for buildings assets. Buildings Asset Management Plans are critically driven by the needs of the services to be delivered and therefore meaningful Buildings asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining Council s buildings assets without adequate regard for service needs may result in a well-maintained portfolio of assets, but it may also result in an asset portfolio which does not meet the needs of staff that provide services to the community. The following sub-sections discussing forecasted demographic trends and documented service strategies will assist Council in understanding the buildings asset portfolio needs across the district. 4.1 Demand Forecast Factors affecting demand include population change, changes in demographics, seasonal factors, vehicle ownership, consumer preferences and expectations, economic factors, agricultural practices, environmental awareness, etc. A significant influence on the future demand for Council services in the District is the expected rate of development and population increase. The 2006 Census Population figures for the District show a population of 27,612 with an annual population growth rate of approximately 3.5% since the previous Census in Current projections suggest that continued growth of 3% per annum will increase population to 33,673 by Looking further into the future, the 30 Year Growth Plan for Greater Adelaide released by the SA Government in February 2010 proposes approximately an additional 15,000 people in the Mount Barker, Littlehampton and Nairne areas (current population approximately 19,000). 4.2 Demographics The characteristics of the population also impacts on the types of services expected from Council. Some distinct characteristics for the District are: Fewer people aged 60 and over compared with the average in the State (14.9% of the population compared to 20.2% state average); 27.7% of the District s population aged between 0 17 years (compared to 23% for the state); Level of disadvantage lower than state average measured by access to income support and annual income; Level of education higher than state average; Level of unemployment lower than state average; Approximately 11,000 people in the labour force with 60% of these working outside the District; Approximately 7% of the workforce is based at a home office (compared to 3.5% for the state). The above characteristics suggest that Council will find higher than average demands for services to support young and growing families such Child Care, Libraries and recreation venues. Council will also have to be careful that it does not marginalise sections of the community such as the elderly simply because they are not as strongly represented as they are in other local government areas. In doing so, Council will always consider mobility issues in building design in accordance with the latest Building Code and Premises Standard. District Council of Mount Barker Buildings Asset Management Plan Page 15 of 38

16 As important as it is to understand the current demographic profile, having an understanding of the likely changes in that profile with time is critical to successful future demand planning. This requires a detailed analysis to be undertaken by an expert organisation. This need is included in the Improvement Plan set out in Section 8. Demand factor trends and impacts on service delivery are summarised in Table 4.1 below. Demand factor Present position Projection Impact on services Population ~31,000 (based on 3% growth from 2006 Census recorded population) ~39,500 by 2018 (based on 3% growth from 2006 Census recorded population) ~27% increase in demand on services by 2018 (assuming constant demand per head of population). Demographics Older population Younger population Changing nature of services required. Satellite developments Mainly infill Development on the outskirts of towns Change from increasing demand in existing locations to new demand in Greenfield sites. Change in demographics and increased quality of life Long standing families living in the area More people moving into the district from Adelaide Higher expectations of Council s services desire for services matching those provided by urban Councils. Table 4.1 Demand Factors, Projections and Impact on Services 4.3 Changes in Technology Technology changes forecast to affect the delivery of services covered by this plan are shown in Table 4.2 below. Technology Change Increasing penetration of high-speed Internet. Practical e-book readers. Increased fuel costs and reduced availability. Improved life expectancy. Effect on Service Delivery Increased demand for e-commerce solutions resulting larger and more complex technology systems for Council. Demand for e-book content at the expense of paper-based content. Increased demand for in-home or localised service delivery. Increased demand for services for the elderly at concessional rates. Table 4.2 Changes in Technology and Forecast effect on Service Delivery 4.4 Demand Management Plan Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets, providing new assets to meet demand and demand management. New asset provision includes both assets constructed by Council using rate income, loans and grants and new assets constructed by developers as a condition of land development and transferred to Council. Acquiring new assets by either method will commit Council to fund the ongoing operations and maintenance costs for the period that the service provided from the assets is required. Demand management practices include non-asset solutions, insuring against risks and managing failures. The Demand Management Plan will be developed in future revisions of this Buildings Asset Management Plan. District Council of Mount Barker Buildings Asset Management Plan Page 16 of 38

17 5. LIFECYCLE MANAGEMENT PLAN 5.1 Background Data Physical parameters The assets covered by this Buildings Asset Management Plan (BAMP) are shown below in Table 5.1. Asset Category Number of Assets Replacement Value Administration 21 $2,953,571 Business Undertakings 35 $4,153,082 Community Services 94 $20,330,078 Recreation 180 $13,447,119 TOTAL 330 $40,883,850 Table 5.1 Assets covered by this Plan The buildings in Council s portfolio are of widely varying ages. From an asset management perspective, the years since construction or alteration of a building are not the important data. Far more important is the remaining life which is determined by a combination of condition, capacity and functionality. The average remaining life Council s buildings assessed on a component basis is set out in Table 5.2 below. Overall, these figures show that Council is managing its building assets to a good standard and not allowing them to deteriorate to the point where there is little life left. This is confirmed by the Asset Consumption Ratio which is currently 88% (target is => 70%). Building Component Floors Envelope Floor Fit Out Wall Fit Out Roof Mechanical Services Fire Services Other Services Average Remaining Life 49 years 34 years 14 years 13 years 23 years 17 years 30 years 17 years Table 5.2 Average Remaining Life of Building Components Asset capacity and performance Council s services are generally provided to meet design standards where these are available. As part of the Condition Assessment and Valuation undertaken in 2009, the buildings were assessed for their capacity to meet demand and ability to meet the functional requirements of the services being delivered from them. The buildings were scored on a scale of 1 to 6 where 1 is Excellent and 6 is Very Poor. The distribution of the buildings across the range of rating scores is set out in Table 5.3 below. The figures show that Council s buildings are largely meeting their capacity and functionality expectations. Rating Scores Building Capacity Building Functionality 1 Excellent 4% 4% 2 Good 70% 76% 3 Average 16% 12% 4 Below Average 8% 4% 5 Poor 2% 3% 6 Very Poor 1% 1% Table 5.3 Distribution of Buildings across Rating Range for Capacity and Functionality District Council of Mount Barker Buildings Asset Management Plan Page 17 of 38

18 5.1.3 Asset condition As buildings are complex assets, they must be componentised to enable meaningful condition assessment to be undertaken. For the 2009 condition assessment, three components of Floor, Envelope and Roof were used. This is a basic set of components that covers many elements of a building that each has a different life and rate of decay. While this level of componentisation is an improvement over simply rating a building for its overall condition, it still introduces limitations in the application of modelling tools to predict future changes. Improved accuracy in assessment and modelling can be obtained by breaking each building into more components. For example, instead a single component of Building Envelope being used, four separate components of Structural Envelope, Internal Fit Out, External Finishes and Internal Finishes can be used. These allow for more precise condition assessment (e.g. Structural Envelope = Good and External Finishes = Poor) and for prediction modelling to better deal with different lives (e.g. Structural Envelope = years and External Finishes = years). The degree of componentisation adopted is a balance between the need for greater accuracy of data and the additional resources required to obtain that data. Increased componentisation will be developed with future revisions of this Buildings Asset Management Plan. The condition building components were scored on a scale of 1 to 6 where 1 is Excellent and 6 is Very Poor. The distribution of the buildings across the range of rating scores is set out in Table 5.4 below. The figures show that while Council s buildings are largely in acceptable condition, there is a reasonably significant proportion that does require attention. However, it should be noted that future condition assessments using greater componentisation is likely to show deterioration in overall condition as ratings conducted with limited componentisation tend to overstate asset condition. Rating Scores Building Envelope Building Floor Building Roof 1 Excellent 15% 8% 9% 2 Good 27% 28% 33% 3 Average 30% 32% 30% 4 Below Average 18% 21% 19% 5 Poor 9% 10% 7% 6 Very Poor 1% 2% 1% Table 5.4 Distribution of Buildings across Rating Range for Condition of Building Components Asset valuations The value of assets as at June 2009 covered by this infrastructure asset management plan is summarised below. Assets were last re-valued by APV at June Current Replacement Cost $40,883,850 Depreciable Amount $4,991,308 Depreciated Replacement Cost $35,892,542 Annual Depreciation Expense $309,316 As part of Council s sustainability reporting, the rate of annual asset consumption is compared to the rate of asset renewal. The figures below have been calculated from the June 2009 valuation. While the rate of renewal is low, as seen above Council s assets are largely in Average to Excellent condition. Renewal works are generally triggered when asset condition falls below average and thus the currently required rate of renewal works will be lower than the consumption rate. Asset Consumption 88% Asset Renewal 54% District Council of Mount Barker Buildings Asset Management Plan Page 18 of 38

19 5.2 Risk Management Plan An assessment of risks 3 associated with service delivery from infrastructure assets has identified critical risks to Council. The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should the event occur, develops a risk rating, evaluates the risk and 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 are summarised in Table 5.5 below. Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan Pioneer Gardens Shelter Personal injury, death High Demolish and Rebuild shelter, programmed for completion in Budget. Public Conveniences Inappropriate behaviour High Notify police if aware of incident All Buildings Vandalism High All Buildings Personal injury or death High All Buildings Trips and Falls High All Buildings Vehicle Accident High All Buildings Structural Damage / Degradation High Ensure regular inspections are carried out as Preventive Planned maintenance and faults identified rectified within time lines. Ensure regular inspections are carried out as Preventive Planned maintenance and faults identified rectified within time lines. Ensure regular inspections are carried out as Preventive Planned maintenance and faults identified rectified within time lines. Maintain Maintenance / Inspection Program - Given nature of occurrence Council is restricted in it's options other than to maintain current practices in line with legislative requirements Ensure regular inspections are carried out as Preventive Planned maintenance and faults identified rectified within time lines. All Buildings Personal Risk & Damage to building Medium Staff / Public Awareness / Staff Training / Legislative Requirements / Maintenance / Building Code All Buildings Arson / Bushfire High Staff / Public Awareness / Staff Training / Legislative Requirements / Maintenance / Building Code All Buildings Personal Risk & Damage to building, contamination High Staff / Public Awareness / Staff Training / Legislative Requirements 3 District Council of Mount Barker s Infrastructure Risk Register District Council of Mount Barker Buildings Asset Management Plan Page 19 of 38

20 All Buildings Financial loss to Council. Medium Develop a process to ensure the insured values reflect the actual valuations All Buildings Sewer overflow creating public health hazard High Undertake an audit of septic tank sizes and determine if they are suitable for the building size and purpose; determine pump out frequency All Buildings Environmental Damage - Flood / Windstorm High All Buildings Litigation High Ensure regular inspections are carried out as Preventive Planned maintenance and faults identified rectified within time lines. Maintain maintenance program / Ensure accuracy - currency of contractual documents and contractors insurances / Maintain Council insurance policies ensuring adequate cover Buildings Containing Asbestos Products Asbestosis / Melosioma High Staff Awareness & Training / Maintenance / Inspection Program - Removal where identified Table 5.5 Critical Risks and Treatment Plans 5.3 Routine Maintenance Plan 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 Maintenance plan Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management/supervisory directions. Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure/breakdown experience, prioritising, scheduling, actioning the work and reporting what was done to develop a maintenance history and improve maintenance and service delivery performance. Cyclic maintenance is replacement of higher value components/sub-components of assets that is undertaken on a regular cycle including repainting, building roof replacement, etc. This work generally falls below the capital/maintenance threshold. Maintenance is funded from Council s operating budget and grants where available. Expenditure trends are shown in Table 5.6 below. Year Maintenance Expenditure Sporting Facilities Public Toilets Halls & Civic Centres Total 2004/05 $100,000 $45,000 $50,000 $195, /06 $5,000 $55,000 $91,000 $151, /07 $85,000 $75,000 $80,000 $260, /08 $35,000 $42,000 $60,000 $137, /09 $0 $75,000 $130,000 $205, /10 $0 $104,000 $210,000 $304,000 Table 5.6 Maintenance Expenditure Trends District Council of Mount Barker Buildings Asset Management Plan Page 20 of 38

21 Maintenance expenditure levels are generally considered to be adequate to meet required service levels. Future revision of this Buildings Asset Management Plan will include linking required maintenance expenditures with required service levels. Increased planned maintenance expenditure over recent years is expected to increase the customer satisfaction of buildings (refer 3.1). Assessment and prioritisation of reactive maintenance is undertaken by Council staff using experience and judgement. Council uses a Customer Request Management System to manage the collection and response to reactive maintenance issues. Reactive maintenance is carried out in accordance with response levels of service detailed in Appendix A. 5.4 Renewal/Replacement Plan Renewal expenditure is major work which does not increase the asset s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original service potential. Work over and above restoring an asset to original service potential is upgrade/expansion or new works expenditure Renewal plan Assets requiring renewal are identified by modelling using MyPredictor software and the condition data of Council s buildings. Candidate proposals are inspected to verify accuracy of remaining life estimate and to develop a preliminary renewal estimate. Verified proposals are ranked by priority and available funds and scheduled in future works programmes. A projected 5-Year Capital Renewal & Upgrade Works Program generated from MyPredictor is attached as Appendix B. Renewals are undertaken using low-cost renewal methods where practical. The aim of low-cost renewals is to restore the service potential or future economic benefits of the asset by renewing the assets at a cost less than replacement cost. Examples of low cost renewal include the retrofitting of equitable access facilities into an existing building structure. Where space permits, it is possible to provide improved facilities through an internal fit out. This was done at Miels Park public convenience and is proposed for other locations as well Summary of future renewal expenditure MyPredictor models by applying set budgets to asset networks in accordance with user-defined project costs and intervention levels. A key output is the predicted changes in condition parameters and this is used to gauge whether appropriate expenditure strategies and budgets are being applied. Through the iterative application of modelling parameters, optimal solutions within budget constraints can be generated. The first-cut models generated from MyPredictor were based on a combined annual budget of $500,000 for Capital Renewal and Capital Upgrade works. For the current condition, capacity and functionality of Council s building, approximately 1/3 of the budget was directed to renewal works and 2/3 of the budget upgrade works. Figure 5.1 on the following page shows the projected changes in the average condition of Council s buildings over a 20 year period. It will be noted that while the Envelope condition remains reasonably constant, the condition values for Floor and Roof decline. The model used for these results had limitations brought on by the limited componentisation of buildings for condition assessment purposes. Further componentisation in the future, as discussed in Section 5.1.3, will aid the development of renewal models that maintain constant building condition outcomes in the long-term. Although building condition is predicted to decline in the longer term, the short-term prediction (first 5 years) indicates that the current building condition will be generally maintained. Thus the 1/3 share of combined annual budget of $500,000 would be adequate for the Capital Renewal works required for the life of this version of the Buildings Asset Management Plan. District Council of Mount Barker Buildings Asset Management Plan Page 21 of 38

22 Envelope Floor Roof Figure Year Projections of Changes in Building Condition District Council of Mount Barker Buildings Asset Management Plan Page 22 of 38

23 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 Council from land development Selection criteria New asset projects are identified from various sources such as councillor or community requests, proposals identified by strategic plans or partnerships with other organisations. Upgrade projects are identified using the capacity and functionality data of Council s buildings MyPredictor modelling software. Candidate proposals are inspected to verify need and to develop a preliminary renewal estimate. Verified proposals are ranked by priority and available funds and scheduled in future works programmes Summary of future upgrade/new assets expenditure As discussed in Section 5.4.2, MyPredictor modelled both renewal and upgrade needs. Figure 5.2 below shows the projected changes in the average capacity and functionality of Council s buildings over the next 20 years. As with the renewal component of the modelling, limitations in the range of input data restrict the ability to achieve optimum model outcomes in the long-term. Further expansion of Council s asset management capabilities will result in the broader spectrum of data required for more detailed models to be developed. As with the building condition predictions, although the capacity and functionality is predicted to decline in the longer term, the short-term predictions (first 5 years) are satisfactory. Thus the 2/3 share of combined annual budget of $500,000 would be adequate for the Capital Upgrade works required for the life of this version of the Buildings Asset Management Plan. Capacity Functionality Figure Year Projections of Changes in Capacity and Functionality District Council of Mount Barker Buildings Asset Management Plan Page 23 of 38