ASSET MANAGEMENT POLICY

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1 : SHIRE OF MOUNT MAGNET ASSET MANAGEMENT POLICY Version 1.1 April 2013 Asset Management Policy

2 Document Control Rev No Date Revision Details Author Reviewer Approver 0 November 2012 Original final document P Johnson 1.1 April 2013 Revision T.McCarthy S Bunting Asset Management Policy

3 TABLE OF CONTENTS 1.0 Purpose Policy Statement Scope Objective Organisational Context Principles Roles and Responsibilities Review of Policy... 5 Asset Management Policy

4 1. Purpose The purpose of this Policy is to provide the basis for and to guide the strategic management of the assets owned by the Shire of Mount Magnet in order to deliver the Shire s long term strategic objectives. The purpose will be achieved by the Shire a) Developing and implementing an Asset Management Strategy, b) Preparing and maintaining an Infrastructure Asset Management Plan, c) Preparing operations and maintenance plans for each infrastructure asset class, d) Maintaining up to date and validated Asset Management Systems and Processes that are aligned and integrated with the Shire s business practices. 2. Policy Statement Council will apply the principles of sustainable asset management to ensure the community s physical assets serve the current community and the needs of future generations. This will be achieved through Developing and implementing a corporate approach to sustainable asset management within the Shire of Mount Magnet, and Managing and maintaining the community s assets in accordance with best appropriate sustainable asset management principles and practices This policy applies to all Council activities. 3. Scope This Policy applies to the assets owned by the Shire of Mount Magnet. The asset types covered are as follows:- Airport Buildings including Council Recreation Civic/public Housing Other Other Infrastructure Plant and Vehicles Parks and Gardens Footpaths Roads Asset Management Policy Page 1

5 4. Objective a) The objective of this policy is to provide a consistent management framework that is aligned and integrated with the Shire s business practices, and is consistent with the State Government s integrated planning and reporting requirements. The objective of the policy is to ensure adequate provision is made for the long-term management and replacement of major assets by:- b) Assets are managed in accordance with the requirements of relevant legislation; c) Assets are managed in accordance current asset management practice, taking affordability into account; d) A whole of life approach is taken to operational, maintenance, renewal and acquisition plans; e) Funding levels to ensure that infrastructure assets deliver the required Levels of Service are identified and reported; f) Levels of Service and risks are taken into account in the development of operational, maintenance, renewal, and acquisition plans; g) The performance of assets is measured and reported against the required levels of service and associated target performance levels; h) Assets are accounted for in accordance with the requirements of the appropriate accounting standards and reporting requirements. 5. Organisational Context Asset Management plays a major role in ensuring that the Shire s strategic objectives, as expressed in their Strategic Plan, are achieved, and plays an important role in the successful development and management of the Shire. The vision statement and values are as follows:- Vision Statement For Mount Magnet to be recognised as an innovative, vibrant and inclusive community. Values Service Council will strive to achieve excellence, quality and pride of service to the community in a cost effective, open and courteous way. Responsiveness Council will be responsive to the needs of the community. Involvement Council will provide avenues of participation and be accessible to the community. Responsibility Council will act with integrity and in a financially responsible, sustainable manner in the interests of the community. Equity Council will treat and provide services to the community in an equitable manner Asset Management Policy Page 2

6 The Shire s Corporate Business Plan was prepared by using a number of philosophies. Those relevant to the management of infrastructure assets are as follows: 6. Principles Ensure value for money and careful scrutiny of all operations to avoid waste and to improve productivity. Adopt as a priority the sustainable management of community assets held by Council. Provide leadership and facilitate economic and community development with a focus on the youth of our community. Support strong actions necessary to reduce anti-social behaviour and improve the amenity of the township of Mount Magnet. Ensure, where appropriate and achievable, that Council activities are sustainable and based on a user pays approach. Fund and pre-plan initiatives in order to maximize Council s success in obtaining grant funding. Keep rate rises as low as possible, consistent with Council s responsibility for the provision of services and management of assets. The Shire is the owner of a range of infrastructure assets, and is responsible for their sustainable management and for the provision of their replacement and renewal. Asset management is a structured process which seeks to ensure best value for money from assets to deliver the Shire s community goals. Good asset management practices will ensure that operations, maintenance, renewal, disposal and acquisition of assets is optimise. The Shire recognises asset management as a core activity. Accordingly, every employee of the Shire is either directly or indirectly involved in the management of the Shire s assets. This policy supports the Shire s intent to raise its asset management practices to a core / basic level of competency. This will ensure that council can make informed asset decision on asset maintenance and renewal in an affordable cost effective manner to meet service needs and to enable the community s goals to be achieved. The Shire recognises that its assets incur ongoing operating costs and require maintenance and the replacement of components to ensure that they remain serviceable throughout their life. Some assets may also be disposed of. This combined cost, together with the capital cost of asset acquisition is termed lifecycle cost. This policy supports the Shire s commitment to ensure that the levels of service delivered by the assets are achieved at the best lifecycle cost. The Shire also acknowledges through this policy that the acquisition of new assets will take into account the full cost of acquisition, operation, maintenance, renewal and disposal over its life cycle. Accordingly, the future cost impact of new assets will be fully considered as part of any new asset approval. In undertaking asset management the Shire will: Develop an asset management strategy and asset management plans for each of the asset classes in accordance with this policy and review them every four years, Asset Management Policy Page 3

7 Ensure that the asset management strategy and the asset management plans are aligned to the Shire s strategic plan, long term financial plan and to the state governments integrated planning and reporting requirements, Determine future levels of service that are aligned to the community goals and take consultation with the community and affordability into account, Make decisions regarding asset operations, maintenance, renewal, disposal and acquisitions taking levels of service and affordability and lifecycle costs into account, Ensure compliance with relevant accounting standards, Ensure that all relevant legislation is taken into account, Collect, store, manage and analyse data on asset utilisation, performance and condition, and utilise the data to inform operations and maintenance, renewal, disposal and acquisition plans, Manage asset based risks through risk and asset condition assessments, Carry out demand forecasting to inform operations, maintenance, renewal, disposal and acquisition plans, Develop long term financial plans on the basis of funding the asset operations, maintenance, renewal, disposal and acquisitions in accordance with this policy, Taking affordability into account, ensure that core / basic asset management practices and systems are employed to support the management of the Shire s assets. 7. Roles and Responsibilities Councillors Adopt the Infrastructure Asset Management Policy; Adopt the Infrastructure Asset Management Strategy; Adopt the Infrastructure Asset Management Plan; Support the use of asset management planning throughout the organisation; Make decisions regarding infrastructure assets in accordance with the Infrastructure Asset Management Policy, Strategy and Plan. Chief Executive Officer Develops and maintains the Infrastructure Asset Management Policy; Develops and maintains the Infrastructure Asset Management Strategy; Develops and maintains the Infrastructure Asset Management Plan; Ensures alignment between the Infrastructure Asset Management Policy, Strategy and the Asset Management Plans with other policies and processes in the organisation; Ensures compliance with legislative requirements; Ensures infrastructure assets are managed in accordance with Infrastructure Asset Management Policy, Strategy and Plan; Supports the use of asset management planning throughout the organisation; Facilitates good practice asset management. Asset Management Policy Page 4

8 8. Review of Policy This policy will be reviewed in conjunction with the review of the Infrastructure Asset Management Strategy and Infrastructure Asset Management Plan. Asset Management Policy Page 5

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