CGAM022.1/12/10. Asset Management Improvement Strategy 2010

Transcription

1 Asset Management Improvement Strategy 2010

2 Version Control Version No. Date Details Author/s 1.0 July 2009 Adopted Strategy 2.0 October 2010 Update

3 TABLE OF CONTENTS OF CONTENTS 4 OF THE ASSET MANAGEMENT IMPROVEMENT STRATEGY OF THE ASSET MANAGEMENT IMPROVEMENT STRATEGY TO OTHER CORPORATE DOCUMENTATION 6 7 ASSET MANAGEMENT FRAMEWORK AUSTRALIAN ASSET MANAGEMENT IMPROVEMENT PROGRAM MANAGEMENT PLANS SYSTEMS MANAGEMENT MAINTENANCE ANALYSIS PLAN

4 INTRODUCTION The Serpentine Jarrahdale Shire is the custodian of an extensive range of community assets which represents a vast investment over many generations. In order to fulfil its obligations in delivering a variety of services to the community, the Shire must ensure that the assets supporting these services are managed in a way that guarantees maximum performance for the lowest 'whole of life' cost. In addition millions of dollars are spent annually managing and maintaining the Shire's infrastructure and it is imperative that the best management skills and practices are utilised to ensure related services are delivered economically and sustainably. Asset management is critical as it aims to create linkages between levels of service, asset condition, asset replacement and budgetary provisions. This strategy deals specifically with the 5 largest infrastructure classes of the Serpentine Jarrahdale Shire. These are: Roads Parks Drainage Bridges Buildings In the past, local governments have met community needs through investment in creation of new infrastructure without recognising the long-term life cycle costs associated with the ongoing operation, maintenance and renewal. Improving the management of infrastructure can bring major benefits by ensuring that scarce resources are used in the most cost effective manner. This will enhance economic growth and improve environmental sustainability. Along with customer service delivery and governance, asset management is one of the core business activities of local government. The organisation recognises that asset planning is an organisational responsibility and requires the commitment of the Executive and Senior Management within the Shire, for it to succeed. The clarity of roles and responsibilities for all those involved in asset management right across the organisation is also a critical success factor. Council has embarked on a program to improve its asset management practices and processes through a planned approach that addresses community needs and expectations. Council is determined to ensure that its assets are managed in ways that ensure that the quality and standard of all its assets meets the community s requirements and expectations now and in the future.

5 OBJECTIVE OF THE ASSET MANAGEMENT IMPROVEMENT STRATEGY The objective of this strategy is to set out in a structured way, the key tasks that the Serpentine Jarrahdale Shire intends to resource over the next 3 years in order to ensure that the Shire s assets are managed on a sustainable basis. This will assist in ensuring that services continue to be delivered in line with community expectations. AIM OF THE ASSET MANAGEMENT IMPROVEMENT STRATEGY This strategy aims to: Ensure an organisational commitment to asset management is ongoing. Ensure that the Serpentine Jarrahdale Shires commitment to asset management is adequately resourced. Develop a prioritisation of tasks to ensure the progress of asset management. Continually improve the quality of infrastructure asset data held. LINKS TO OTHER CORPORATE DOCUMENTATION This strategy links to the following corporate documents; The Shire s Plan for the Future The Shire s long term Financial Plan (pending) The Shire s Risk Management Plan (pending) The Shire s Community Facilities & Services Plan ROADS Roads data is held in the Roman software package that is used by the majority of Local Governments in Western Australia. The inventory includes condition ratings and relevant data that enables valuations of the current network. There is also a GIS capability both as part of, and external to Roman. Roman II, a significantly improved version in terms of both capability and efficiency, is expected to be released in February Regular updates of inventory data have not occurred over the past few years due to resource constraints, however some inventory data has been updated in conjunction with the condition assessments which are undertaken by independent contractors every 3 years. The last condition rating was carried out in August The road network has a replacement value in excess of $190M and is made up of approximately 717 kilometres broken down into the following classes: Sealed Roads 555km

6 Unsealed Roads 162km Maintenance and renewal planning consists of various programs that relate to improvement or rehabilitation of the network and involve both a construction and reseal program which is formulated by officer knowledge and reference to an improvement program developed by a consultant several years ago. Maintenance inspections are carried out on a continuous basis by officers as they travel throughout the Shire. Maintenance issues that require attention are documented in the Leading Hand minutes and on the Records system. Replacement valuations and depreciation calculations are determined external to Roman on a straight-line basis and unit rates are maintained external to Roman. Councils first Road Asset Management Plan was adopted in April This plan included a formal hierarchy which is based on the latest edition of the Subdivisional Guidelines for Development. Target levels of service have been defined setting minimum technical and community standards for the provision of road infrastructure. Asset life definitions have been based on industry standard and local knowledge of the performance of the Shire s road network. DRAINAGE The drainage network within the Serpentine Jarrahdale Shire requires improved documentation to obtain a full representation of the extent of drainage infrastructure. The process to record the physical attributes of the network is currently underway with the commencement of GIS mapping and data gathering activities. The most complete information exists in relation to new developments, however the Shire does not have an Asset Management software program which would allow this data, including materials, dimensions, quantity, construction dates and condition, to be used to manage the asset. Roman II is expected to be able to fulfil this requirement. No formal hierarchy, level of service definitions or asset life definitions have been developed, but this process will form part of the drainage asset management plan preparation, scheduled to be undertaken in the second half of Currently each townsite is assessed with regard to the level of service required and whether additional drainage is warranted to meet basic urban standards. Overall, designs for each

7 townsite are being formulated to enable a future improvement plan, yet existing assets are not documented and therefore minimal maintenance management currently takes place. As drainage assets can have a life approaching 80 or 100 years, this is common in Local Government entities. BUILDINGS The Shire holds a current complete inventory of its buildings. A basic audit and condition report of all building was conducted during the period July - October The results of this inspection confirmed that building stock is generally in a satisfactory condition, however several buildings have deteriorated past intervention level and require attention. No long term renewal or maintenance plan exists for the majority of the Shire s buildings. Funds are allocated to building maintenance and capital works annually as a result of officer requests and/or reactive works. The amount of municipal funds allocated has not changed for many years although building costs have risen substantially. In the absence of a renewal plan, strategic management of buildings is minimal, however preventative maintenance is carried out as part of the annual maintenance program. Replacement valuations have previously been determined by external valuations, however it is considered that for the purposes of cyclic renewal, the values should be based on the Rawlinsons construction guide. Future updates of the Building Asset Management Plan will therefore used this valuation method. The Asset Management department currently maintain a building asset management database which contains physical and condition data of each building. This database contains all known buildings and is continually being updated as more information is obtained. As part of the development of the Building Asset Management Plan, a formal hierarchy has been developed allowing prioritisation of works. Target levels of service have been defined setting minimum technical and community standards for the provision of building infrastructure. Asset life definitions have also been adopted which are based on the range utilised within the industry and knowledge of how buildings perform in the local environment.

8 PARKS Significant progress has been made in the last 10 months in the collection of data of parks infrastructure items. Data gathering activities have encompassed infrastructure classes such as hard surface sporting areas, sealed and unsealed carparks, passive and active reserves, lighting and bores. Hard landscaping, eg retaining walls, fencing and raised garden beds are not quantified or assessed. These areas are maintained on an as needs basis, with reliance placed on service staff reporting required works. Budget details are recorded on spreadsheets however actual maintenance costs in relation to service level requirements are not available as while service levels are now defined, the Shire does not utilise a system which is efficient in reporting on these targets. Information exists for 100% of the Shires playgrounds with regular condition inspections undertaken by certified playground inspectors as required by Australian Standards. Councils first Parks Asset Management Plan was adopted in November This plan includes a formal hierarchy which allows for the prioritisation of reactive works. Target levels of service are included that define minimum technical and community standards for the provision of parks infrastructure. Asset life definitions have been developed and have been based on local knowledge of the performance of the Shire s parks assets. BRIDGES Traffic bridge data is controlled by Main Roads Western Australia (MRWA). MRWA undertake a full structural assessment of each bridge at least every 4 years. A condition report is forwarded to the Shire and includes materials, dimensions and quantity and prioritised routine and specific maintenance items. This data is held for 100% of traffic bridges. In addition to the MRWA inspection reports, an annual inspection program is being developed which will be carried out by Shire officers in order to identify routine maintenance. The Serpentine Jarrahdale Shire also owns one pedestrian bridge. This bridge does not come under the management of MRWA. Data exists in relation to materials, dimensions, quantity, value and construction date of this asset.

9 As part of the development of the Bridges Asset Management Plan, a formal hierarchy has been developed allowing prioritisation of works. Target levels of service have been defined setting minimum technical and community standards for the provision of bridge infrastructure. Asset life definitions have also been adopted which are based on the MRWA standard. STRATEGIC CONTEXT Across Australia over recent years there have been a number of reports analysing the performance of Local Government in terms of asset management. While these reports have noted that progress is being made, there is clear evidence that sustainable asset management is a significant challenge for many councils. The Serpentine Jarrahdale Shire has recognised this and adopted a strategic management approach to improvement planning, the development of Asset Management plans, and implementing improvement processes & practices. This Improvement Plan is integral to that approach, quantifying current business practice and measuring progress toward an identified future position. WESTERN AUSTRALIAN ASSET MANAGEMENT IMPROVEMENT PROGRAM The Serpentine Jarrahdale Shire has chosen to participate in the Western Australian Asset Management Improvement (WAAMI) program to assist in the development of its strategic asset management framework. WAAMI was developed by a Western Australian Industry working group based on similar work undertaken in other states and seeks to facilitate local government asset management in Western Australia. It achieves this by: Building awareness through presentations and workshops Providing tools such as templates for plans and policies and Developing a self assessment and improvement framework Significant progress has been made under the WAAMI program. The following scorecard shows the progress made from the first visit in June 2008 to the fourth visit in June 2010.

10 This program has recently been updated to incorporate the draft National Framework which has been developed by a number of leading asset management bodies and local government representatives across Australia. The national framework has introduced new areas to ensure that asset management is successfully implemented across the whole of the organisation. These new measurable components include: Strategic planning Evaluation Annual budget Annual report Skills & Processes Governance and management As a part of the fourth WAAMI visit in June 2010, scoring was undertaken according to the draft national framework guidelines. The comparison with similar local governments in Victoria is an extremely useful tool for benchmarking purposes and to specify where the priorities for actions lie. The diamonds on the graph below indicate the status of Serpentine Jarrahdale s practises, and the rectangular areas indicate the range of results from all local governments surveyed. Given that all other Councils were Eastern States outer metro / growth area Councils, who are years ahead in asset management implementation, the results are considered to be excellent and will provide a solid base for quality Asset Management in the Serpentine Jarrahdale Shire.

11 POLICY The Shire s Asset Management Policy was adopted in March 2010, and underpins the organisation s Plan for the Future. This policy ensures that the organisation undertakes a structured, well resourced and co-ordinated approach to asset management and that sustainable facilities are provided for both current and future generations. STRATEGY The Shire of Serpentine Jarrahdale s draft Plan for the Future commits to the development of Asset Management Plans and Systems in the following areas: Focus Area: Infrastructure Continually improve the accuracy of the long term financial Plan for the Future by accommodating asset management plans that are developed. Ensure asset management plans extend to whole of life costings of assets and reflect the level of service determined by Council. Develop and adequately fund a functional road network and bridges based on the level of service set by Council. Focus Area: Strategy and Planning Create innovative solutions and manage responsibly to aid our long term financial sustainability Develop comprehensive governance policies and strategies

12 Focus Area: Success and Sustainability The Shire will exercise responsible financial and asset management cognisant of being a hyper-growth council. This Asset Management Improvement Strategy outlines the specific actions to be undertaken by the Shire to enhance its asset management capabilities and achieve its strategic objectives as visioned in the Asset Management Policy. It develops a structured set of actions and also identifies resources that together will enable improved organisational asset management. IMPLEMENTATION To drive implementation of the AM Improvement Strategy the Shire has established the Asset Management Working Group () to drive and co-ordinate the development and implementation of the Asset Management Improvement Strategy. The is a crossfunctional working group with representatives from each area of the organisation that has involvement with assets associated with service delivery. The membership and terms of reference of the are reviewed annually to ensure that key areas of the organisation are represented on this group and the focus is relevant to the organisations current needs. ASSET MANAGEMENT PLANS Serpentine Jarrahdale Shire has developed Asset Management Plans for roads, buildings, parks and bridges. The preparation of the plan for drainage infrastructure has commenced and is expected to be complete by November These plans have identified the current status of the asset group, defined target levels of service for future consultation and identified improvements to be made. All Asset Management Plans are in the format developed by the Institute of Public Works Engineering Australia (IPWEA) in line with the International Infrastructure Management Manual as follows: Executive Summary Introduction Levels of Service Demand Forecast Risk Management Lifecycle Management Plans Financial Forecast Asset Management Practices and Procedures

13 The Asset Management Plans will be reviewed and improved annually, as data accuracy, detail and knowledge of community expectations increases. DATA Similar to many organisations, the Serpentine Jarrahdale Shire maintains infrastructure asset data in numerous different databases to various quality standards. The most complete data is contained within the road and building databases. It is a priority of this strategy to improve the quality of data over the coming years. INFORMATION SYSTEMS As mentioned above, the Shire maintains numerous asset databases. These range from Roman, Excel spreadsheets, Access databases and various software systems. In order to improve the integrity of the data, assist in managing data in a meaningful manner and to assist in informed decision making, the use of existing and proposed systems will be investigated as progress on the asset management plans is made. The ideal situation is to have all assets on a single software system designed specifically for Asset Management purposes, enabling best practise asset management to be implemented and meaningful outcomes delivered. ASSET MAINTENANCE The asset management activities to date have identified a need to introduce better maintenance programs and to work towards managed maintenance systems. This is particularly important for risk management with respect to buildings, bridges, roads and footpaths. The development of roads and buildings asset maintenance strategies has not yet commenced. These documents will, when developed, ensure a consistent risk based approach to the inspection, maintenance and renewal of assets. They will also ensure technical standards employed for maintenance and renewal activities are consistent and documented which allows for the set level of service to be sustained through employee changes. RISK MANAGEMENT Risk Management is the process of thinking about the possible risks an organisation faces either before they happen or as a result of an incident or outcome and setting up treatments that will avoid the risk or minimise the impact of the risk. An enterprise wide Risk Management Framework considers all facets of an organisation s activities and aims to identify and deal with risks the organisation may face strategically and in its day to day operations. Risk Management is an integral part of good business practice and works in tandem with strategic and financial

14 planning. Developing and maintaining a Risk Management Framework is an effective way to identify, manage and respond to risks within an organisation. The Shire s framework will be holistic in approach and will be developed in accordance with the relevant International Standard AS/NZ/ISO: Risk Management allows for systemic change and continuous improvement in planning, resource allocation, decision making and processes and delivers outcomes such as: Improved asset management Improved planning, performance and effectiveness Providing a basis for higher standards of accountability and sound governance Protecting the organisation from legal liability Reducing insurance premiums Protecting the Council s corporate image as a professional, responsible and ethical organisation and an employer of choice Capacity to respond to new opportunities Improved prioritisation of activities and projects Improved project outcomes and reporting by documenting objectives and key actions in Councils Risk Register All updated Asset Management Plans will consider risks relating to the class of infrastructure and will rate them according to the following matrix: Consequence Insignificant Low Medium High Extreme Almost Certain A M H H E E Likely B M M H H E Likelihood Possible C L M M H H Unlikely D L L M M H Rare E L L M M H E Extreme Risk H High Risk M Moderate Risk L Low Risk

15 IMPLEMENTATION & REVIEW The Asset Management Working Group () will be responsible for reporting progress made in relation to the Action Plan, to the Leadership Team. This includes any barriers to achieving objectives and proposed solutions or alternative actions. Council will also receive a detailed update of the Asset Management Improvement Plan including financial and service delivery implications. The Asset Management Improvement Strategy will be updated annually and undergo a full review every 3 years in conjunction with the Long Term Financial Plan and Plan for the Future. GAP ANALYSIS The gaps identified in the Shire s asset management processes have been significantly reduced. The basic asset knowledge that existed 12 months ago has been built on to a level where a good level of documentation is now evidenced. Previously, the most significant gaps existed in long term planning. No asset management plans had been developed and their was little knowledge regarding the long term renewal requirements of the Shire s infrastructure. A year into the formal implementation of Asset Management has seen an Asset Management Policy, Improvement Strategy, and four Asset Management Plans being adopted all with provisions for regular reviews. The WAAMI program has also been completed with success in all areas. The assessment of the Serpentine Jarrahdale Shire s performance in accordance with the draft national framework has also provided a clear indication of where the gaps in asset management exist within the organisation. These are depicted in the following graph:

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17 ACTION PLAN Task Timeline Responsible Officer / Cost Group Form an Asset Management Working Group Complete Leadership Team Develop Terms of Reference for the Asset Management Working Group Develop and recommend an Asset Management Policy Complete Complete Consultant Establish parks data Complete Parks & Gdns Supervisor, AM Officer, Administration Officer Operations Develop and adopt an Asset Management Improvement Strategy Complete Update of bridge condition data Complete Design Team Leader, AM Officer, Operations Works Coordinator Prepare cut AM Plan for parks Complete Parks Gdns Supervisor, AM Officer, AM Coordinator Update road condition data Complete Design Team Leader, AM Officer Prepare cut AM Plan for bridges Complete Design Team Leader, AM Officer, AM Coordinator Prepare cut AM Plan for roads Complete Design Team Leader, AM Officer, AM Coordinator Develop a financial renewal gap model for all infrastructure Complete AM Officer, AM Coordinator Undertake a condition audit for buildings Complete Manager Building Services, AM Officer, Building Maintenance Officer Prepare cut AM Plan for buildings Complete Manager Building Services, AM Officer, AM Coordinator, Building Maintenance Officer Evaluate 2010/11 budget requirements for asset management Review existing risk management procedures across organisation Complete March 2010 Leadership Team Develop roles & responsibilities matrix May 2010 (commenced) Develop capital evaluation model for projects: - develop model June 2010 (commenced) Asset Officer - Develop a process flow whereby decision makers receive and consider lifecycle cost information in decisions relating to new or upgrade of services and assets March 2011 Asset Officer Develop asset register for drainage October 2010 Asset Officer

18 - quantity - age - value Prepare cut AM Plan for drainage 2010/2011 (commenced) Asset Officer Update Asset Management Improvement Strategy Roman II: - Adoption of new regional model by MRWA to ensure alignment with road hierarchy - Update existing roads data / conditions in a phased approach Evaluate impact of National Assessment Framework Develop workflows for: - the capture of new assets from subdivisional development - the capture of new assets from municipal construction - the disposal of assets Continue to increase detail of all assets at a component level - roads - buildings - bridges - parks - drainage Develop Building Maintenance Strategy incorporating: - Inspection frequencies - Hierarchies - Maintenance levels of service Complete November 2010 January 2011 Within 3 months of release December 2010 Manager Infrastructure Development Asset Officer Asset Officer, Technical Officers Ongoing Asset Officer February 2011 Asset Officer / Building Maintenance Officer Document a process for reviewing the useful life of assets. February 2011 Asset Officer Develop a building disposal strategy to take into consideration: - condition of buildings February strategic requirements - current use Evaluate asset management resource requirements for 20010/2011 budget - software March other resources Separate capital expenditure within financial reporting and budgeting processes into: - renewal, upgrade, new March 2011 Exec Manager Finance - maintenance and operation Develop condition assessment manual for the Shires footpath infrastructure. April 2011 Asset Officer Develop Roads Maintenance Strategy incorporating: - Inspection frequencies Asset Officer / Manager June Hierarchies Operations - Maintenance levels of service Collect Footpath data - quantity - condition June 2011 Asset Officer - value Develop Parks Maintenance Strategy incorporating: Asset Officer / Manager September Inspection frequencies Operations

19 - Hierarchies - Maintenance levels of service Investigate sustainability indicators for inclusion in future reporting September 2011 Risk Management - Develop risk framework to ensure a common base for the assessment of risks - Record infrastructure risks - Communicate infrastructure risks to Leadership Team Develop Bridge Maintenance Strategy incorporating: - Inspection frequencies - Hierarchies - Maintenance levels of service Document a work procedure for asset register maintenance to include update frequency. - responsibility for asset register maintenance - schedule asset register updates - develop monitoring procedure Develop Drainage Maintenance Strategy incorporating: - Inspection frequencies - Hierarchies - Maintenance levels of service Develop a parks strategy to consider: - current provision levels of parks - strategic requirements - current use October 2011 December 2011 Asset Officer/ Exec Manager Finance Asset Officer / Manager Operations / LGIS December 2011 Asset Officer March 2012 Asset Officer / Manager Operations March 2012 Annual Tasks Task Review and update the AM Improvement Strategy Review the to ensure it reflects the whole of organisation approach Responsibility Review the Terms of Reference Review the Roles & Responsibilities Matrix Review and update building AM plan Review and update road AM plan Review and update parks AM plan Review and update bridges AM plan Review and update drainage AM plan