Latrobe Council ASSET MANAGEMENT PLAN STORMWATER. Version 1. June 2015 LATROBE COUNCIL ASSET CATEGORY ASSET MANAGEMENT PLAN

Transcription

1 Latrobe Council STORMWATER ASSET MANAGEMENT PLAN Version 1 June 2015

2 Document Control Document ID: stormwater amp - rev2 Rev No Date Revision Details Author Reviewer Approver 1 11 March 2015 For circulation to AMSG JM AMSG GM MCS - General Manager - Manager Corporate Services MEW - Manager Engineering & Works Acc - Accountant AMO - Asset Management Officer AMSG Asset Management Steering Group, consists of GM, DCS, MWE, Acc, WC/AMO This is a working document which represents a snapshot in time of Council s position in regards to existing and future assets and projections of foreseeable impacts to Council infrastructure assets. All charts and tables have been derived by NAMS.PLUS service. Copyright 2007 All rights reserved. The Institute of Public Works Engineering Australia.

3 TABLE OF CONTENTS ABBREVIATIONS... i GLOSSARY... ii 1. EXECUTIVE SUMMARY... 1 What Council Provides... 1 What does it Cost?... 1 Plans for the Future... 1 Measuring our Performance... 3 The Next Steps Background Goals and Objectives of Asset Management Plan Framework Core and Advanced Asset Management LEVELS OF SERVICE Customer Research and Expectations Legislative Requirements Current Levels of Service Desired Levels of Service FUTURE DEMAND Demand Forecast Changes in Technology Demand Management Plan New Assets from Growth LIFECYCLE MANAGEMENT PLAN Background Data Physical parameters Asset capacity and performance Asset condition Asset valuations Risk Management Plan Routine Maintenance Plan Maintenance plan Standards and specifications Summary of future maintenance expenditures Renewal/Replacement Plan Renewal plan Renewal standards Summary of future renewal expenditure Creation/Acquisition/Upgrade Plan Selection criteria Standards and specifications Summary of future upgrade/new assets expenditure Disposal Plan FINANCIAL SUMMARY Financial Statements and 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... 28

4 8.1 Performance Measures Improvement Plan Monitoring and Review Procedures REFERENCES APPENDICES Appendix A Projected 20 year Capital Renewal Works Program Appendix B Planned Upgrade Expenditure/New 20 year Capital Works Program 31

5 - i - ABBREVIATIONS AAAC AMP ARI BOD CRC CWMS DA DoH EF IRMP LCC LCE MMS PCI RV SS Average annual asset consumption Asset management plan Average recurrence interval Biochemical (biological) oxygen demand Current replacement cost Community wastewater management systems Depreciable amount Department of Health Earthworks/formation Infrastructure risk management plan Life Cycle cost Life cycle expenditure Maintenance management system Pavement condition index Residual value Suspended solids

6 - ii - GLOSSARY Annual service cost (ASC) 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 operating, maintenance, depreciation, finance/ opportunity and disposal costs, less revenue. Asset class Grouping of assets of a similar nature and use in an entity's operations (AASB ). 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 management 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. Assets Future economic benefits controlled by the entity as a result of past transactions or other past events (AAS27.12). Property, plant and equipment including infrastructure and other assets (such as furniture and fittings) with benefits expected to last more than 12 month. Average annual asset consumption (AAAC)* The amount of a local government s asset base consumed during a year. This may be calculated by dividing the Depreciable Amount (DA) by the Useful Life and totalled for each and every asset OR by dividing the Fair Value (Depreciated Replacement Cost) by the Remaining Life and totalled for each and every asset in an asset category or class. Brownfield asset values** Asset (re)valuation values based on the cost to replace the asset including demolition and restoration costs. Capital expansion expenditure Expenditure that extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. It is discretional expenditure, which increases future operating, and maintenance costs, because it increases council s asset base, but may be associated with additional revenue from the new user group, e.g. extending a drainage or road network, the provision of an oval or park in a new suburb for new residents. 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 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 Capital new expenditure Expenditure which creates a new asset providing a new service to the community that did not exist beforehand. As it increases service potential it may impact revenue and will increase future operating and maintenance expenditure. Capital renewal expenditure Expenditure on an existing asset, which returns the service potential or the life 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 has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time, e.g. 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. Where capital projects involve a combination of renewal, expansion and/or upgrade expenditures, the total project cost needs to be allocated accordingly. Capital upgrade expenditure 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 discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the council s asset base, e.g. widening the sealed area of an existing road, replacing drainage pipes with pipes of a greater capacity, enlarging a grandstand at a sporting facility. Where capital projects involve a combination of renewal, expansion and/or upgrade

7 - ii - expenditures, the total project cost needs to be allocated accordingly. 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 An individual part of an asset which contributes to the composition of the whole and can be separated from or attached to an asset or a system. 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, plus any costs necessary to place the asset into service. This includes one-off design and project management costs. 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. Current replacement cost As New (CRC) The current cost of replacing the original service potential of an existing asset, with a similar modern equivalent asset, i.e. the total cost of replacing an existing asset with an as NEW or similar asset expressed in current dollar values. Cyclic Maintenance** Replacement of higher value components/subcomponents of assets that is undertaken on a regular cycle including repainting, building roof replacement, cycle, 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. Depreciable amount The cost of an asset, or other amount substituted for its cost, less its residual value (AASB 116.6) 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. Fair value The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties, in an arms length transaction. Greenfield asset values ** Asset (re)valuation values based on the cost to initially acquire the asset. 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 of the entity or of another entity that contribute to meeting the public's need for access to major economic and social facilities and services, e.g. 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 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 (AASB 140.5) Level of service The defined service quality for a particular service against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental, acceptability and cost).

8 - iii - Life Cycle Cost ** The life cycle cost (LCC) is average cost to provide the service over the longest asset life cycle. It comprises annual maintenance and asset consumption expense, represented by depreciation expense. 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 actual or planned annual maintenance and capital renewal expenditure incurred in providing the service in a particular year. Life Cycle Expenditure may be compared to Life Cycle Expenditure to give an initial indicator of life cycle sustainability. Loans / borrowings Loans result in funds being received which are then repaid over a period of time with interest (an additional cost). Their primary benefit is in spreading the burden of capital expenditure over time. Although loans enable works to be completed sooner, they are only ultimately cost effective where the capital works funded (generally renewals) result in operating and maintenance cost savings, which are greater than the cost of the loan (interest and charges). Maintenance and renewal gap Difference between estimated budgets and projected expenditures for maintenance and renewal of assets, totalled over a defined time (e.g. 5, 10 and 15 years). Maintenance and renewal sustainability index Ratio of estimated budget to projected expenditure for maintenance and renewal of assets over a defined time (e.g. 5, 10 and 15 years). 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 An item is material is its omission or misstatement could influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. Modern equivalent asset. A structure similar to an existing structure and having the equivalent productive capacity, which could be built using modern materials, techniques and design. Replacement cost is the basis used to estimate the cost of constructing a modern equivalent asset. 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, e.g. parks and playgrounds, footpaths, roads and bridges, libraries, etc. Operating expenditure Recurrent expenditure, which is continuously required excluding maintenance and depreciation, e.g. power, fuel, staff, plant equipment, on-costs and overheads. Pavement management system A systematic process for measuring and predicting the condition of road pavements and wearing surfaces over time and recommending corrective actions. 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. PMS Score A measure of condition of a road segment determined from a Pavement Management System. Rate of annual asset consumption* A measure of average annual consumption of assets (AAAC) expressed as a percentage of the depreciable amount (AAAC/DA). Depreciation may be used for AAAC. Rate of annual asset renewal* A measure of the rate at which assets are being renewed per annum expressed as a percentage of depreciable amount (capital renewal expenditure/da). Rate of annual asset upgrade* A measure of the rate at which assets are being upgraded and expanded per annum expressed as a percentage of depreciable amount (capital upgrade/expansion expenditure/da). Reactive maintenance Unplanned repair work that carried out in response to service requests and management/supervisory directions. Recoverable amount The higher of an asset's fair value, less costs to sell and its value in use.

9 - iv - Recurrent expenditure Relatively small (immaterial) expenditure or that which has benefits expected to last less than 12 months. Recurrent expenditure includes operating and maintenance expenditure. Recurrent funding Funding to pay for recurrent expenditure. Rehabilitation See capital renewal expenditure definition above. Remaining life The time remaining until an asset ceases to provide the required service level or economic usefulness. Age plus remaining life is economic life. Renewal See capital renewal expenditure definition above. Residual value The net amount which an entity expects to obtain for an asset at the end of its useful life after deducting the expected costs of disposal. 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, e.g. 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. Strategic Management Plan (SA)** Documents Council objectives for a specified period (3-5 yrs), the principle activities to achieve the objectives, the means by which that will be carried out, estimated income and expenditure, measures to assess performance and how rating policy relates to the Council s objectives and activities. 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 expected to be consumed by the council. It is the same as the economic life. Value in Use The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. 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 new cash flows, where if deprived of the asset its future economic benefits would be replaced. Source: DVC 2006, Glossary Note: Items shown * modified to use DA instead of CRC Additional glossary items shown ** Section or segment A self-contained part or piece of an infrastructure asset. Service potential The capacity to provide goods and services in accordance with the entity's objectives, whether those objectives are the generation of net cash inflows or the provision of goods and services of a particular volume and quantity to the beneficiaries thereof. Service potential remaining* A measure of the remaining life of assets expressed as a percentage of economic life. 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 (DRC/DA).

10 EXECUTIVE SUMMARY What Council Provides Council provides a stormwater drainage network within town areas to drain the majority of properties and road reservations. This network consists primarily of pipes, access chambers (manholes), stormwater entry pits, pollutant traps, formed open drains and detention storage facilities. Bridges, open drains, natural creeks, rural road culverts and open roadside drains are not included in this Asset Management Plan and in some instances are not the direct responsibility of Council. Kerb and Channel, open roadside drains and rural road culverts are referenced in Council s Roads Asset Management Plan Council does not levy a separate stormwater rate on properties but does charge for making new connection points to existing infrastructure. It is worth highlighting that Council no longer directly employs any Plumbers or Plumbing Inspectors and that new works are predominantly undertaken by civil construction and general maintenance staff or by a developer s plumber under prior approval and subsequent inspection by Council s engineering staff. Council is sometimes requested to become involved in dams, creeks, natural drainage paths (eg. poorly defined gulleys) groundwater and seepage issues but such is not an area of responsibility, although staff will assist and provide some limited direction to owners managing these issues. Formed open drains in rural residential and rural areas are not currently valued by Council but do take resources to maintain. It should be recognised that piped stormwater systems are not generally sized to cater for flows from storm events greater than a 1 in 10 to 1 in 20 year Average Recurrence Interval and that localised flooding is expected to occur and then dissipate during and following such rainfall events. In 2013 the Tasmanian Government went through a process of updating the Drains Act 1954 to the Urban Drainage Act 2013 the new legislation will result in changes to the way all Councils define and manage their networks. It also imposes additional expectations than had been made in the past for Councils to manage their networks, improve urban stormwater capacity and water quality. The Latrobe Council currently values stormwater assets as either stormwater pit or stormwater pipe. Stormwater pits include grated pits, gross pollutant traps, headwalls, manholes and side entry pits. Stormwater pipes include drainage pipelines and box culverts. Drainage related retaining structures and earth drains are not currently valued. Stormwater pits $4,388,000 Stormwater pipes $11,182,000 With a current total asset value of $15,570,000. What does it Cost? The projected outlays necessary to provide the services covered by this Asset Management Plan (AM Plan) including operations, maintenance, renewal and upgrade of existing assets over the 10 year planning period is $2,346,000 or $235,000 on average per year. Estimated available funding for this period is $2,346,000 or $235,000 on average per year which is 100% of the cost to provide the service. As it is not possible to accurately gauge the quality of past installations there are likely to be instances arise where stormwater assets need replacement before reaching their full lifecycle or are determined under capacity or unsuitable for the intended task. Plans for the Future Areas that Council is being expected to be more active in relating to stormwater include ocean outfalls, reduction in localised nuisance flooding, provision of roadside drainage, provision of connection points as opposed to onsite dispersion, erosion, sedimentation in lower reaches of pipes and receiving waters and their quality. The capacity, maintainability and condition of open drains and creeks within urban areas is periodically raised as a concern and partly relates to ever increasing impervious areas within urban stormwater catchments. Increased flows are normally incremental and not directly attributed to any one development. For example simply concreting an area that was previously grassed will have the same effect as that site being developed as roofing to which building and planning permits are often required and where it may be possible to obtain headworks contributions from developers or require the installation of on-site stormwater detention systems. Where possible Council should continue requiring on-site stormwater detention, retention and reuse systems when located within the upper portion of a catchment area. Water quality is becoming an area of increasing demand and in the future Council will have to give greater priority to Water Sensitive Urban Design principles, erosion, inflow and infiltration into sewerage systems, sedimentation, gross pollutant traps and the value of aeration and vegetation in partially treating polluted water. Another area of future implication is the predicted changes to rainfall quantities and intensities as a result of a

11 - 2 - changing climate. For example whilst it is predicted for a similar total annual amount of rainfall to occur over the next 80 years this rain is expected in more heavy bursts over a shorter period of time each year. The net result is that over time what may currently be suitably sized pipelines may be under capacity. Opportunistic upgrades when replacing pipes needs to be a consideration when programming works. This has been identified to Council and will be included in Councils next Strategic Plan. The increasing populations of the Port Sorell and Latrobe areas are also placing pressure on the stormwater systems of both towns. There is also an increasing expectation for local government to deliver more with the same (or less) resources. Should Council seek to commit resources and deliver on any significant drainage improvement projects (eg. public stormwater detention systems), initiatives as expected or demanded by the community, system extensions or upgrade programs (as opposed to maintaining the status quo) there will be a need to either increase charges or reprioritise existing expenditure patterns. This will be able to be better determined following greater assessment of Councils existing networks and required by the new 2013 Urban Drainage Bill. The Council has commenced this process by appointing CSE Tasmania to review the Port Sorell Stormwater System in consultation with the community and make recommendations on future upgrades. The Council has also agreed to review the Latrobe system with particular emphasis on the future of the large open drains that cut through the township in several places. Council plans to operate and maintain the stormwater network to achieve the following strategic objectives. 1. Ensure the stormwater network is maintained and progressively upgraded to a safe and functional standard as set out in this asset management plan. 2. Ensure all stakeholders have the ability to input into the quality, extent and performance of the drainage systems held or responsible for by Council. Refer also to Section 8.2 Improvement Plan towards the end of this AMP to gain an understanding of future actions and potential inclusions.

12 - 3 - Measuring our Performance Quality Stormwater assets will be maintained in a reasonably usable condition. Defects found or reported that are outside our service standard will be repaired. Function Council s intent is that an appropriate stormwater network is maintained in partnership with other levels of government and stakeholders to effectively drain the town areas of the municipality. To this end we need to ensure key functional objectives are met: Administer a complete and accurate asset information register; Construct and maintain stormwater infrastructure assets that are fit for purpose; Flooding from intense rainfall events is contained within overland flow paths Develop and sustain an asset management system that ensures the provision of appropriate levels of service over successive generations in a financially responsible manner. Safety Stormwater asset attributes will be maintained at a safe level. Defects are prioritised for repair and remedial action. Ongoing and incremental improvements to public safety and staff health and safety including confined space entry and manual handling which may result in changes to materials and techniques used including replacing heavy concrete lids with lightweight materials. The Next Steps A number of possible actions resulting from this asset management plan have been identified and are as follows: Audit stormwater asset data for accuracy and completeness Assess system capacity in relation to flooding or impending upstream development Develop and adopt formal level of service Develop and adopt infrastructure risk management plan Formalise and adopt maintenance intervention standards Develop and adopt weighted priority ranking criteria for capital works projects Develop proactive asset condition inspection procedures Incorporate any relevant components as a result of the Urban Drainage Act 2013 noting a key requirement being the development of Stormwater System Management Plan for the urban area within 6 years which is to specify: a) Plans for the management of any assets used for the delivery of a stormwater service b) The level of risk from flooding for each urban stormwater catchment c) Any other matters prescribed in the regulations or that the council considers appropriate.

13 INTRODUCTION 2.1 Background This asset management plan is to demonstrate responsive management of assets (and services provided from assets), compliance with regulatory requirements, and to communicate funding required to provide the required levels of service over a 20 year planning period. The asset management plan is to be read with the following associated planning documents: Latrobe Council s Our Place, Our Plan A Strategic Direction Port Sorell and Environs Strategic Plan 2008 Latrobe Township and Environs Strategic Plan 2009 Annual / Financial report Asset Management Policy and Strategy 10 Year Financial Plan 10 Year Capital Works Program Mersey Leven Emergency Management Plan Stormwater Management Strategy for the Port Sorell Area Mersey River Flood Survey 2011 Coastal Adaptation and Protection Options for Port Sorell and Shearwater August 2012 Tasmanian Coastal Adaptation Pathways Project July 2012 Latrobe Council Corporate Climate Change Adaptation Plan 2013 Table 2.1. Assets covered by this Plan (as at 30 June 2013) Asset category Dimension Replacement Value ($M) Drainage Mains 2,461 assets and a total length of 74,383 metres $11,182,000 Pits (including Gross Pollutant Traps, headwalls, grated pits, manholes and side entry pits) 2189 records $4,388,000 TOTAL $15,570,000 Key stakeholders involved in the preparation and/or implementation of this asset management plan are:

14 - 3 - Councillors Council Staff Key Stakeholders The Community (including residents & businesses) Emergency Services Federal & State Government authorities & agencies Utility Companies Developers Neighbouring Councils Role of stakeholder As custodians of the municipality s infrastructure assets, to represent and protect the long-term needs of ratepayers and the community in general. To maintain a proactive approach to customer requests and to holistic asset management systems and procedures which can better inform decisions by Councillors. Reporting perceived shortcomings, damage, safety concerns etc. with the current infrastructure in relation to their needs. Reporting perceived shortcomings, damage, safety concerns etc. with the current infrastructure in relation to their needs. Providing input with regard to overall infrastructure performance in conjunction with infrastructure under their jurisdiction. Providing input with regard to access to their assets. Providing input with regard to their interests in future investment in the infrastructure. Maintaining a dialogue with other municipal authorities with regard to asset management practices, construction standards, resource sharing etc. 2.2 Goals and Objectives of Asset Management The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets by purchase, by contract, construction by council staff and by donation of assets constructed by developers and others to meet increased levels of service. 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. 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. 1 This asset management plan is prepared under the direction of Council s Strategic Plan objectives, mission, goals and objectives. 1 IIMM 2006 Sec 1.1.3, p 1.3

15 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. Asset management improvement plan A road map for preparing an asset management plan is shown below. Road Map for preparing an Asset Management Plan Source: IIMM Fig 1.5.1, p 1.11 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

16 Core and Advanced Asset Management This asset management plan is prepared as a core asset management plan in accordance with the International Infrastructure Management Manual. 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 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. 3. LEVELS OF SERVICE 3.1 Customer Research and Expectations Council often receives verbal/written feedback with regard to completed capital/maintenance projects including community feedback through the Councillors. The Council s customer request system is used to determine trends in community expectations (achieved by annually assessing the total number of actioned customer requests per asset category). More significant requests and any specific expressions of dissatisfaction do occur through formal correspondence and submissions to Council and these are considered in relation to Council obligations and the allocation of resources and priorities. In the future consideration could be given to formally research customer expectations with respect to stormwater drainage assets. This will be investigated for future updates of the asset management plan. Future customer surveys may include; Annual community satisfaction survey Customer feedback surveys Occupation and usage records 3.2 Legislative Requirements Council has to meet many legislative requirements including Australian and State legislation and State regulations. These include: Table 3.2. Legislative Requirements Legislation Local Government Act (1993) Local Government (Highways) Act (1982) and Regulations (2003) Road and Jetties Act (1935) Drains Act 1954 Requirement An Act to provide for local government and establish councils to plan for, develop and manage municipal areas in the interests of their communities An Act to consolidate with amendments certain enactments concerning the functions of the corporations of municipalities with respect to highways and certain other ways and places open to the public An Act to consolidate and amend certain enactments relating to roads and jetties and to make provision for the establishment and maintenance of aerodromes. An Act to make better provision for schemes and systems of drainage. Note that this act is currently being

17 - 6 - revised. Work, Health and Safety Act 2012 Sets out requirements in regards to the safety and wellbeing of workers and the public in and around work sites. 3.3 Current Levels of Service Council has defined service levels in two terms. Community Levels of Service relate to how the community receives the service in terms of safety, quality, quantity, reliability, responsiveness, cost/efficiency and legislative compliance. Supporting the community service levels are operational or technical measures of performance developed to ensure that the minimum community levels of service are met. Council s working draft service levels are detailed in Table 3.3. Table 3.3. Current Service Levels Key Level of Service Performance Measure COMMUNITY LEVELS OF SERVICE Quality Provide a reliable stormwater drainage systems in urban areas that meets community expectations by adequate collection and disposal Function Provide or devise a discharge option or point for all properties in urban areas to discharge stormwater in up to the 1 in 5 year rainfall event Safety Provide stormwater system that is low risk to the community and does not pond for long periods or result in algal blooms TECHNICAL LEVELS OF SERVICE Condition Undertake inspections, routine maintenance tasks and repairs in a timely manner Accessibility Cost Effectiveness Ensure adequate stormwater drainage services are available within declared drainage districts Provide services in a cost effective manner Performance Measure Process Number of customer service requests / complaints Number of properties where no gravity stormwater discharge point Number of injury / personal damage claims or valid reports of health and safety concerns. Frequency of inspections, maintenance or repairs Number of reported property / road inundation evens within serviced area following rain greater then 1in10 year event and discharge options exist Benchmarking against other councils or cost to Performance Target Average <3 per month but limited to the 1 in 5 year recurrence interval. Maximum of 1 in 100 properties have to pump stormwater from property Less than 5 per annum but limited to the 1 in 20 year recurrence storm intervals. Inspect every 24 months and repair within 3 months. Monthly cleaning of grates during autumn and flowing rain events. Flooding no more than one time in average 10 year period unless an upgrade or improvement program exists and a connection point or discharge option can be devised Validate cost of council compared to contractor undertaking works or cost to Current Performance To be determined To be determined To be determined Not programmed Based on current 10 year forward capital works program and competing projects On a case by case basis. No current benchmarking against other Councils.

18 - 7 - Safety Ensure stormwater infrastructure poses low risk to community and provides physical barriers or signage to identify and protect from hazards. Grates and covers are installed on stormwater entry pits. maintain system per property connected Number of injury / damage claims, defect and condition survey results and site specific risk assessments maintain system is < or = to that of other municipalities Less than 1 claim for compensation per 10 km of network and any high risks identified are addresses within 3 months No currently measured 3.4 Desired Levels of Service At present, indications of desired levels of service are obtained from various sources including ratepayer and resident feedback to Councillors and staff also through the customer request system and direct correspondence. It has been noted in recent years that the level of service expectation has increased and there is less tolerance in particularly to open waterways in urban areas and short term nuisance flooding. Council has yet to quantify desired levels of service and this has not been a priority in the past. Any future draft documentation should be trialled for practicality and reasonableness prior to adopting to ensure appropriateness and ability to achieve the identified outcomes.

19 FUTURE DEMAND 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. Demand factor trends and impacts on service delivery are summarised in Table 4.1. Table 4.1. Demand Factors, Projections and Impact on Services Demand factor Present position Projection (2032) Impact on services Population 10,451 14,930 Increased population generates more runoff through impervious areas and longer piped networks. Demographics Climate Change New community complexes Sea Change Land use Water Quality Median age of 41.5 years at June years of below average rainfall followed by one that was particularly wet and windy. Advice from peak bodies (such as CSIRO) that climate change is occurring. Few community complexes Coastal community of Port Sorell has grown quickly Council s planning scheme maintains control of future development Limited structures or policy, strategy to make improvements and trend for Continued increase in median age May be trending towards increased seasonal extremes in rainfall, temperature, tides, winds and pressure systems Potential rise in mean sea level. Increasing median age will result in more residents at home during rain events and potentially more particular about expectations Complacency and spikes in expectation due to infrequency and familiarity with expectations following rain. What was once a 1 in 20 year system may only be a 1 in 10 year system. May require review of service level or capital upgrades. Reduction in capacity of stormwater outfalls and low level pipework due to submerged outlet conditions. Also more subject to sedimentation. May require assessment of developable areas, service levels or capital upgrades. Likely to increase (e.g. gated Increasing impervious areas communities for retirees) overloading pipelines. Consider on site stormwater detention areas. Expected to continue Implication on existing infrastructure and need for new or upgrades to due increasing number of residences. Change to zoning to facilitate new domestic subdivisions Likely to be more demand on treating stormwater runoff to Consider downstream capacity for stormwater and need to redirect, detain, retain, reuse or limit development. Increase in cost to install, maintain and replace a

20 - 9 - Defective plumbing connections sewer to public to have greater environmental awareness. Known that there are significant number of occurrences where stormwater enters the sewer systems some level. system that reduces pollution. Cradle mountain water to smoke May require extensions to and dye test properties and stormwater infrastructure to require rectification. collect from previously unserviced areas. 4.2 Changes in Technology Technology changes are forecast to have little effect on the delivery of services covered by this plan other than increase ability and cost effectiveness in relining existing pipelines in-situ. 4.3 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. Opportunities identified to date for demand management are shown in Table 4.3. Further opportunities will be developed in future revisions of this asset management plan.

21 Service Activity Development controls Table 4.3. Demand Management Plan Summary Demand Management Plan Require land developers to assess the impact of their developments on the capacity of existing infrastructure and to upgrade it if required. Consider implementation of developer contribution for upgrade of existing council infrastructure to cope with increased inflow of proposed development (e.g. $ per new lot created). Also known as a headworks charge. Consider measures to encourage greater level of on-site retention of stormwater (e.g. use of permeable paving, on-site retention systems etc.). Consider greater restriction on developable land with respect to stormwater drainage issues. Infrastructure design Consider increasing the design standard of new / upgraded stormwater infrastructure (e.g. 20 year ARI instead of 5 year ARI) including a minimum pipe diameter e.g. 225mm. Have to consider new/old infrastructure interface. e.g. Investigate new construction techniques/materials such as open, permanent channels/swales in place of underground piping. Renewal / Upgrade programming Increase use of sediment/pollutant traps. Audit current system capacity to identify weaknesses in network. Design ocean outfalls to extend outfalls away from debris line on beach (include use of one way valves etc.). Continue to investigate alternative renewal treatments to lower lifecycle costs (e.g. pipe relining). 4.4 New Assets from Growth The new assets required to meet growth will be acquired from land developments and constructed by Council. The new asset values are summarised in Fig 1. It expected that strong growth will continue within the municipality due mainly to stormwater assets coming under Council control as a result of assets build to enable subdivision of land. Fig 1. New Assets from Growth

22 Acquiring these new assets will commit council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operating and maintenance costs. 5. LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how Council plans to manage and operate the assets at the agreed levels of service (defined in section 3) while optimising life cycle costs. 5.1 Background Data Physical parameters The assets covered by this asset management plan are shown below and all have a standard life of 80 years. Drainage mains (100 to 1500mm dia) Box Culverts Grated pits Gross pollutant traps Headwalls Manholes Side entry pits 70,931m (i.e km) Not yet verified and valued 387 items 3 items 32 items 880 items 838 items The townships of Latrobe and Port Sorell contain the majority of stormwater infrastructure assets, although much demand during the winter months comes from rural residential properties where more informal installations exist and are subject to greater interpretation in regards to responsibility and maintenance levels required. The age profile of Council s assets is shown below.

23 Fig 2. Asset Age Profile The data for age profile is sourced from Council s asset management system and register. While ages of assets acquired prior to around 1990 are largely based on estimates this is considered to be accurate enough due to the long lifecycle of stormwater assets Asset capacity and performance Council s services are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table Table Known Service Performance Deficiencies Location Port Sorell Township Service Deficiency Areas without kerb and channelling and underground stormwater pipes (in particular Hawley Beach) have a high incidence of runoff problems following heavy rain. Also the problem with low lying development and effectively draining these by underground pipe networks against high tides or sedimentation. Latrobe Township Rural Residential area Adjacent large open drains such as Earltown and to the south east where capacity shortfalls during extreme events are unacceptable to nearby residents and property owners. There are a number of instances where downstream properties do not expect runoff from upstream land and that if they do Council should be forming drains to cater for such.

24 The above service deficiencies were identified from staff observations over a number of years Asset condition Council has not undertaken a dedicated asset condition survey of its underground stormwater infrastructure, although given the relative youthfulness of the systems it is expected condition rating will general be rates as 3 or better. For this reason the assets remaining life (useful life minus age) has been used as the most appropriate basis on which to model future renewals expenditure. It should be noted that, whilst this approach provides robust results for the network as a whole, it is less than ideal when considering any particular individual asset. For example camera survey of one recently identified section of 375mm diameter pipe laid in the late 1980 s by a developer has been found to have been poorly compacted and resulted in significant deformation causing cracking, root intrusion and subsequent flooding. Condition is measured using a 1 5 rating system. 2 Rating Description of Condition 1 Excellent condition: Only planned maintenance required. 2 Very good: Minor maintenance required plus planned maintenance. 3 Good: Significant maintenance required. 4 Average: Significant renewal/upgrade required. 5 Poor: Unserviceable Asset valuations The value of assets as at 30 June 2013 and covered by this asset management plan is summarised below. Current Replacement Cost $21,082,189 Depreciable Amount $21,082,189 Depreciated Replacement Cost $15,570,354 Annual Depreciation Expense $261,234 Council s sustainability reporting reports the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. The following figures represent this comparison for the 2012/13 financial year. Asset Consumption 1.24% Asset renewal 0.23% Annual Upgrade/expansion 0.80% 2 IIMM 2006, Appendix B, p B:1-3 ( cyclic modified to planned )