Community Waste Management Systems Asset Management Plan

Transcription

1 Community Waste Management Systems Asset Management Plan Version 1.0 June 2011 District Council of Mount Barker CWMS Asset Management Plan Page 1 of 74

2 Document Control Rev No Date Revision Details Author Reviewer Approver /09/08 Initial draft PGB ACEAM /10/08 Workshopped feedback from Atis, Madhawa and Mark PGB ACEAM /04/10 Work in progress ACEAM PGB /05/10 Final Draft for Comments, as a result of Council Workshops ACEAM PGB 0.5 7/03/11 Prepare Document for Consultation PGB ACEAM BC 1.0 4/06/11 Endorsed by Council, includes comments from consultation. PGB BC 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 CWMS Asset Management Plan Page 2 of 74

3 TABLE OF CONTENTS TABLE OF CONTENTS FIGURES AND TABLES EXECUTIVE SUMMARY INTRODUCTION BACKGROUND GOALS AND OBJECTIVES OF ASSET MANAGEMENT PLAN FRAMEWORK CORE AND ADVANCED ASSET MANAGEMENT LEVELS OF SERVICE WHAT IS CWMS? CWMS IN THE DISTRICT COUNCIL OF MOUNT BARKER 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 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 District Council of Mount Barker CWMS Asset Management Plan Page 3 of 74

4 8. PLAN IMPROVEMENT AND MONITORING PERFORMANCE MEASURES IMPROVEMENT PLAN MONITORING AND REVIEW PROCEDURES REFERENCES APPENDICES APPENDIX A MAP: DISTRIBUTION OF CWMS ASSETS ACROSS THE DISTRICT GLOSSARY FIGURES AND TABLES TABLE 1.1 ASSETS COVERED BY THIS PLAN AS AT JUNE 30, FIGURE 1.2 TYPICAL CWMS SYSTEM DISTRICT COUNCIL OF MOUNT BARKER... ERROR! BOOKMARK NOT DEFINED. FIGURE 2.1 MAP OF THE DISTRICT COUNCIL OF MOUNT BARKER TABLE 2.2 ASSETS COVERED BY THIS PLAN AS AT JUNE 30, FIGURE 2.3 DISTRIBUTION OF CWMS ASSETS BY REPLACEMENT VALUE AS AT TABLE 2.4 KEY STAKEHOLDERS TABLE 2.5 COUNCIL GOALS AND HOW THESE ARE ADDRESSED IN THIS PLAN FIGURE 2.6 ROAD MAP FOR PREPARING AN ASSET MANAGEMENT PLAN FIGURE 2.7 DEAN STREET PUMP STATION FIGURE 3.1 TYPICAL CWMS SYSTEM DISTRICT COUNCIL OF MOUNT BARKER FIGURE 3.2 DISTRIBUTION OF CUSTOMER REQUESTS PER ASSET CLASS FIGURE 3.3 CUSTOMER REQUESTS PER ANNUM FIGURE 3.4 CUSTOMER REQUESTS PER ANNUM FIGURE 3.5 CUSTOMER REQUEST RESPONSIVENESS TABLE 3.6 LEGISLATIVE REQUIREMENTS TABLE STANDARDS AND SPECIFICATIONS TABLE 3.8 CURRENT SERVICE LEVELS TABLE 4.1 DEMAND FACTORS, PROJECTIONS AND IMPACT ON SERVICES FIGURE 5.1 ASSET LIFECYCLE DIAGRAM TABLE 5.2 DESCRIPTION OF ASSET TYPES FIG 5.3 PIPE LENGTH BY PIPE MATERIAL FIG 5.4 ASSET AGE PROFILE TABLE 5.5 KNOWN SERVICE PERFORMANCE DEFICIENCIES TABLE 5.6 ASSET CONDITION RATING METHOD FIGURE 5.7 WASTEWATER PIPE ASSET CONDITION PROFILE FIGURE 5.8 WASTEWATER MANHOLES AND OPENINGS ASSET CONDITION PROFILE FIGURE 5.9 CWMS EQUIPMENT ASSET CONDITION PROFILE TABLE 5.10 CWMS FUNDING BACKLOG TABLE 5.11 ASSETS VALUATIONS AS AT JUNE 30, TABLE 5.12 CRITICAL RISKS AND TREATMENT PLANS FIGURE 5.13 REPLACING A SEIZED ISOLATING VALVE, DEAN ST PS, JANUARY TABLE 5.14 CWMS CAPITAL AND MAINTENANCE EXPENDITURE FIGURE 5.15 CWMS EXPENDITURE TRENDS TABLE 5.16 PLANNED MAINTENANCE EXPENDITURE TABLE 5.17 ASSET RENEWAL TREATMENTS TABLE 5.18 RENEWAL PRIORITY RANKING CRITERIA TABLE 5.19 CONFIDENCE RATING OF CWMS DATA FIGURE 5.20 PREDICTED OUTPUTS FOR DCMB CWMS PIPES TABLE 5.21 PREDICTED OUTPUTS FOR DCMB CWMS PIPES FIGURE 5.22 PREDICTED OUTPUTS FOR DCMB CWMS MANHOLES TABLE 5.23 PREDICTED OUTPUTS FOR DCMB CWMS MANHOLES FIGURE 5.24 PREDICTED OUTPUTS FOR DCMB CWMS WWTP AND PS District Council of Mount Barker CWMS Asset Management Plan Page 4 of 74

5 TABLE 5.25 PREDICTED OUTPUTS FOR DCMB CWMS WWTP AND PS TABLE 5.26 NEW ASSETS PRIORITY RANKING CRITERIA FIGURE 5.27 CRUSHED CWMS GRAVITY MAIN (JAN 2009) BURNBANK WAY, MOUNT BARKER FIGURE 5.28 PLANNED CAPITAL UPGRADE/NEW ASSET EXPENDITURE TABLE 5.29 ASSETS IDENTIFIED FOR DISPOSAL FIGURE 6.1 PLANNED OPERATING AND CAPITAL EXPENDITURE TABLE 6.2 PROPOSED CAPITAL WORKS FINANCIAL PLAN FIGURE 6.3 PROJECTED CWMS ASSET REPLACEMENT VALUES FIGURE 6.4 PROJECTED DEPRECIATION EXPENSE TABLE 8.1 IMPROVEMENT PLAN District Council of Mount Barker CWMS Asset Management Plan Page 5 of 74

6 1. EXECUTIVE SUMMARY The fundamental purpose of this Community Waste Management System Asset Management Plan (CWMS) is to improve Council s long-term strategic management of its infrastructure CWMS assets in order to cater for the community s desired levels of service in the future, in accordance with Council s key strategic documents and demonstrate reasonable management in the context of Council s available financial and human resources. The CWMS AMP achieves this by setting standards, service levels and programmes which Council will develop and deliver. The standards and service levels have been set in accordance with user needs, regulations, industry practice and legislative codes of practice. What Council Provides The basic function of a CWMS network is to convey household and commercial wastewater from sinks, bathrooms and toilets (basically everything that goes down the drain) to a point of disposal being a treatment plant, prior to disposing of the wastewater. This infrastructure asset management plan covers the following infrastructure assets owned by the District Council of Mount Barker: All CWMS pipes including gravity mains, rising mains and connections; All CWMS manholes; All CWMS inspection openings and flushing points; All CWMS pump stations, including associated assets (such as but not limited to pumps, valves etc); Treatment Plants including but not limited to facultative ponds and wetlands; All other structures such as tanks and valves as required to deliver CWMS; and All reclaimed water assets. This infrastructure asset management plan excludes the following infrastructure assets: Those assets not owned by the District Council of Mount Barker e.g. in Community Title developments; and Any internal drainage pipe work that exists on private property beyond the Inspection point. Asset Types Pipes Quantities 297 kms Manholes 315 Pump Stations and associated assets 20 Inspection/Flushing Points 4,205 Treatment Plants 1 Facultative Lagoons* 5 Wetlands* 1 District Council of Mount Barker CWMS Asset Management Plan Page 6 of 74

7 TOTAL Table 1.1 Assets covered by this Plan as at June 30, 2009 In future revisions of this plan, it is possible that the reclaimed water system will be separated from the CWMS network and two plans will replace the one. In 2009, the quantity of pipes in the CWMS asset class is far greater than the reclaimed water class but it is acknowledged that this latter asset category will grow rapidly as further demand is placed on wastewater reuse from legislative requirements and customer expectations. The value of CWMS assets as at opening of 2009/10 covered by this CWMS AMP is summarised below. Assets were last revalued in 2008/09. Accumulated Asset Type Replacement Value ($,000) Depreciation ($,000) CWMS 53,081 (10,505) Total 53,081 (10,505) As at 30 June 2009, the Annual Depreciation (annual asset consumption) for CWMS assets was calculated at $808,000. Levels of Service Levels of Service define the assets performance targets, in relation to reliability, quantity, quality, responsiveness, safety, capacity, environmental impacts, comfort, cost/affordability and legislative compliance. A key objective of this CWMS AMP has been to match the level of service provided by Council s CWMS network to the expectations of the users (i.e the community) within available resources. This requires a clear understanding of the user needs, expectations and preferences. To achieve and sustain acceptable standards of service for Council s CWMS asset network requires an annual commitment of funds. These funds provide for regular and responsive maintenance and for timely renewal or replacement of the asset. The provision of adequate financial resources ensures that the CWMS network are appropriately managed and preserved. Financial provisions below requirements impacts directly on community development and if prolonged, results in substantial needs for catch up expenditure imposed on ratepayers in the future. Additionally, deferred renewal results in increased and escalating reactive maintenance as aged assets deteriorate at increasing rates. No authority can deliver everything, all the time. In fact, in line with good practice and affordable service delivery, it may not be practical or cost-effective to deliver the same level of service across the entire asset portfolio. Therefore the DCMB has documented a hierarchy that classifies the CWMS asset portfolio / network into appropriate groups based. This CWMS AMP has different maintenance interventions, inspection frequencies and response times for each asset classification. In accordance with the International Infrastructure Management Manual, Council acknowledges that the primary purpose of an asset hierarchy is to ensure that appropriate management, engineering standards and planning practices are applied to the asset based on its function. It also enables more efficient use of limited resources by allocating funding to those assets that are in greater need and the costs are better justified. District Council of Mount Barker CWMS Asset Management Plan Page 7 of 74

8 Without an adequate CWMS portfolio hierarchy, there may be inefficient allocation of resources, user expectations may vary and the maintenance of these assets made more difficult. Current Levels of Service Council have defined two tiers of service levels: The first being Strategic Levels of Service what we expect to provide in terms of key customer outcomes: Appropriateness of service. Accessibility to users 24 hours a day, 7 days a week. Affordability acknowledging that we can only deliver what we can afford. Relevance of the service being provided in terms of demand characteristics, future demographics, current back-logs and where the pressure points are. The second being Operational Levels of Service (also referred within Council as Maintenance Levels of Service ): What we will do in real terms, i.e. reliability, functionality and adequacy of the services provided. Typically, this CWMS AMP has documented our standards i.e. at what point will we repair, renew or upgrade to meet the customer outcomes listed in the strategic levels. Future Demand Council s fundamental role is to provide services to the community and its CWMS assets are a means to support this. Consequently, future demand for CWMS assets are tied to the demand for Council s services and this is a more complex consideration than population growth. 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 CWMS assets. CWMS asset management plans are critically driven by the needs of the services to be delivered and therefore meaningful CWMS asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining Council s CWMS 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 who provide services to the community. The main factors affecting CWMS demand include population change, changes in demographics, seasonal factors e.g. rainfall, environmental awareness and the involvement of SA Water. Perhaps the biggest influence on future CWMS requirements within the District is the expected rate of development and resulting population increases. Recent Census population figures for the district illustrate an annual population growth rate of approximately 3%. This has resulted in an average of over 300 extra dwellings per annum over the past eight years. 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. Council understands that it is proposed that the new dwellings constructed as part of the future township expansion resulting from the MDPA will be served by SA Water. District Council of Mount Barker CWMS Asset Management Plan Page 8 of 74

9 Lifecycle Management Life Cycle Management is recognised by the DCMB as an essential component of this CWMS AMP. This section of the CWMS AMP will provide details of DCMB s data and processes required to effectively manage, maintain, renew and upgrade Council s CWMS network. It also documents the analysis that the DCMB undertakes regularly to predict and monitor expected future expenditure required to effectively manage Council s CWMS network. To undertake lifecycle asset management, means considering all management options and strategies as part of the asset lifecycle, from planning to disposal. The objective of managing the assets in this manner is to look at long-term cost impacts (or savings) when making asset management decisions. Council s Adopted Financial Strategy for CWMS Assets Section 6 of this CWMS AMP has a detailed table documenting the assumptions and required financial strategy allocation required over the following 10 years. In summary, it has been calculated that the DCMB will have to allocate $23.02 million with regards to maintaining and renewing it CWMS assets, over the following 10 Years. This equates to a commitment of approximately $2.3 million per annum. Monitoring and Improvement Program This asset management plan is a dynamic document that will respond to changes over time. A full review of this plan should take place every three to five years to document progress and set out proposals for the next five years. Any review of this CWMS AMP will, in addition to that set out above have, regard to: Asset performance following delivery of maintenance program; The level of achievement of asset management strategies against the expected benefits to CWMS users, stakeholders and the community; and The consideration of any external factors that is likely to influence the contents of this CWMS AMP. An Improvement Program in Section 8 has been developed in which it is recommended that Council undertakes a number of actions with an aim to improve the accuracy and confidence in the information and improve its practices with respect to Council s CWMS assets. District Council of Mount Barker CWMS Asset Management Plan Page 9 of 74

10 2. INTRODUCTION The District Council of Mount Barker (DCMB) contains significant rural and residential areas and is located approximately 25kms south east of central Adelaide. The area is characterised by historic townships and farming areas located in the Mount Lofty Ranges. The DCMB is bounded by the District Councils of Adelaide Hills and Mid Murray to the north, the Rural City of Murray Bridge to the east, the District Council of Alexandrina to the south and the City of Onkaparinga to the west. Figure 1.1 Map of the District Council of Mount Barker The population of the DCMB has increased significantly in the past ten years and predictions are that this will continue for another ten to fifteen years. This is a result of new dwellings being added to established areas and relative stability in average number of persons living in each dwelling. The population figures for 2009 were approximately 29,864 residents with 13,500 rateable properties. Currently the DCMB is considered to be the 5th fastest growing municipality within South Australia. Current projections estimated on current annual population rate of growth being 2.4% 1 estimates that the future population of Mount Barker will reach 44,000 residents by the year The State Government s Strategic Plan 30-Year Plan for Greater Adelaide has identified that the township of Mount Barker and its surrounds as locations for significant urban growth over the next 15 years. Based on the population projections in the State Government Plan, Council is estimating a total population growth to approximately 40,000 for the townships of Mount Barker, Littlehampton and Nairne by It should be noted that DCMB have not included Brukunga in this population projection. To enable the community to access and enjoy all the services and facilities that Mount Barker has to offer, the DCMB owns and maintains of a large portfolio of assets. 1 Data obtained from the Australian Bureau of Static Database, as at March 2009 District Council of Mount Barker CWMS Asset Management Plan Page 10 of 74

11 With an infrastructure asset replacement value of over approximately $364 million, the efficient management of these assets is vital in maintaining safe, reliable and efficient services that help achieve the strategic priorities and goals of Council. Failure to adequately plan for the replacement of existing assets and the development of new assets will result in assets not meeting the needs of the community, now and into the future. 2.1 Background The DCMB developed a first generation Community Waste Management System (CWMS) Asset Management Plan (AMP) in October 2008 in response to the Local Government (Financial Management and Rating) Amendment Act This is the first major revision of this CWMS AMP. The fundamental purpose of this CWMS AMP is to improve Council s long-term strategic management of its infrastructure waste management assets in order to cater for the community s desired levels of service in the future, in accordance with Council s key strategic documents and demonstrate reasonable management in the context of Council s available financial and human resources. The CWMS AMP achieves this by setting standards, service levels and programmes which Council will develop and deliver. The standards and service levels have been set in accordance with user needs, regulations, industry practice and legislative codes of practice. The infrastructure asset management plan is to be read with the following associated planning documents: Risk Management Framework Asset Management Policy Asset Management Strategy Community Strategic Plan Development Plan Long-Term Financial Plan Strategy STEDS 2020 (see Library) 1.2M to 3M in ten years KBR 2003 State Strategic Infrastructure Plan Legislative framework such as the Environmental Protection Act 1993 and subsequent Water quality policies, Dept of Health and Public and Environmental Health Act 1987 and subsequent Codes of Practises and Guidelines. A revised CWMS Strategy and Business plan is proposed to be completed by the end of This infrastructure asset management plan covers the following infrastructure assets owned by the District Council of Mount Barker: All CWMS pipes including gravity mains, rising mains and connections; All CWMS manholes; All CWMS inspection openings and flushing points; All CWMS pump stations, including associated assets (such as but not limited to pumps, valves etc); Treatment Plants including but not limited to facultative ponds and wetlands; All other structures such as tanks and valves as required to deliver CWMS; and All reclaimed water assets. District Council of Mount Barker CWMS Asset Management Plan Page 11 of 74

12 This infrastructure asset management plan excludes the following infrastructure assets: Those assets not owned by the District Council of Mount Barker e.g. in Community Title developments; and Any internal drainage pipe work that exists on private property beyond the Inspection point. Asset Types Quantities Replacement Value ($M) Pipes kms Manholes Pump Stations and associated assets Inspection/Flushing Points 4, Treatment Plants Facultative Lagoons* 5 - Wetlands* 1 - TOTAL Table 2.2 Assets covered by this Plan as at June 30, 2009 * The facultative lagoons and wetland outside of the Mount Barker Wastewater Treatment Plant have not been considered in this revaluation process. These assets will be assessed in the near future and subsequently added to this asset management plan. Distribution of CWMS Assets by Replacement Value as at % 81.5% 3.0% 3.5% 10.4% Pipes Manholes Pump Stations Inspection/Flushing Points Treatment Plants Figure 2.3 Distribution of CWMS Assets by Replacement Value as at 2010 District Council of Mount Barker CWMS Asset Management Plan Page 12 of 74

13 Key stakeholders in the preparation and implementation of this infrastructure and asset management plan are documented in the following table below: ACEAM Pty Ltd Field Services Staff Elected Members Senior Management Corporate Services Governance and Projects Community 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 CWMS assets. They verify the size, location and condition of assets. They can describe the maintenance standards deployed and Council s ability to meet technical and customer levels of service. 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 LTFP. 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 admin. Provide strategic and local knowledge on CWMS assets. They set the capital and maintenance standards deployed and Council s ability to meet technical and customer levels of service. As the customer, the Community provides feedback to Council with regards to the service being delivered and are consulted with in regards to setting the maintenance levels of service in the CWMS AMP. Table 2.4 Key Stakeholders 2.2 Goals and Objectives of Asset Management The DCMB s primary role is to provide services to its community. Some of these services provided to the community are provided by CWMS assets. Council has acquired its portfolio of CWMS assets over many years by the following methods: District Council of Mount Barker CWMS Asset Management Plan Page 13 of 74

14 Donation of assets constructed by developers and others to meet increased levels of service, which after a defect liability period, have been handed over to DCMB for maintenance for their entire life cycle; or By construction undertaken either directly by DCMB field staff or by contractors on behalf of Council. Asset Management delivers benefits that are realised in the areas of improved accountability, sustainable service delivery, risk reduction and financial management and forecasting. Specific benefits can include: Better alignment of community needs with services provided; Improved analysis and understanding of service level options, costs and risks; Improved decision making based on better understanding of the benefits and costs of alternative asset provision; Enhanced customer satisfaction; Improved long term financial forecasting and management; Optimisation of costs; and Innovative application of sustainable best practices to Council s assets. The DCMB s Strategic Plan demonstrates Council s commitment to asset management by stating in its vision. 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 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 The DCMB Strategic Plan consists of the following Five Goal Areas: People and Communities The Natural Environment Enterprise, Business and Industry Infrastructure and Human Settlements; and Council Leadership Relevant DCMB goals and objectives and how these are addressed in this CWMS AMP have been identified as follows: Goal Objective How Goal and Objectives are addressed in this CWMS AMP District Council of Mount Barker CWMS Asset Management Plan Page 14 of 74

15 Goal Area 2- The Natural Environment A leading and action-focused Council for the environment. Minimising wastewater overflow into creeks and streams. Water resources and ecosystems protected and conserved. Sustainable use of energy. A District renowned for its trees. Re-use of reclaimed water wherever possible. Appropriate construction of infrastructure to minimise loss of natural habitat and enhance the environment. Pumping and plant operation regimes to minimise power consumption. Goal Area 4 Infrastructure and Human Settlements Goal Area 5 Council Leadership Preservation of rural atmosphere, open spaces and natural resources of the District. Accessible and safe communities. Environmentally sustainable development. Stormwater and wastewater assets that meet needs and environmental outcomes. Well maintained and utilised community land, buildings and other assets. Sustainable community finances and assets. Procure green energy options where appropriate. Encourage the development and maintenance of wetland systems for both the natural purification of wastewater and the enjoyment of the public as a recreational precinct. Risk based approach to maintenance management. Identification of assets in their lifecycle with programs for asset renewal and replacement at appropriate intervals to maintain service delivery expectations. Long term planning for the future operation, maintenance, renewal and disposal of assets. Effective delivery of services to the community. Setting levels of service, both technical and customer focussed, to ensure services are delivered effectively. Table 2.5 Council Goals and how these are addressed in this Plan The South Australian State Strategic Infrastructure Plan has also identified and set clear objectives with regards to CWMS assets being: Support joint State/local government action to advise on reform of STEDS, including the methodology for establishing STEDS works priorities, funding options and innovative management arrangements to improve the performance of STEDS. This CWMS AMP has been prepared under the direction of Council s vision, mission, goals and objectives of the DCMB Strategic Plan As a result, it is considered that this CWMS AMP is better aligned to deliver Council s Vision and Goals in the in terms of providing costeffective, transparent, quality and affordable service levels in accordance with community expectations. District Council of Mount Barker CWMS Asset Management Plan Page 15 of 74

16 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. Asset management improvement plan A road map for preparing an infrastructure asset management plan is shown hereafter: District Council of Mount Barker CWMS Asset Management Plan Page 16 of 74

17 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 2.6 Road Map for preparing an Asset Management Plan Source: IIMM Fig 1.5.1, p 1.11 District Council of Mount Barker CWMS Asset Management Plan Page 17 of 74

18 2.4 Core and Advanced Asset Management This infrastructure 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 infrastructure 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. Figure 2.7 Dean Street Pump Station District Council of Mount Barker CWMS Asset Management Plan Page 18 of 74

19 3. LEVELS OF SERVICE Levels of Service relate to outcomes the customer receives in terms of quality, quantity, responsiveness and performance as provided by the asset. To achieve and sustain acceptable standards of service for Council s CWMS asset network requires an annual commitment of funds. These funds provide for regular and responsive maintenance and for timely renewal or replacement of the asset. The provision of adequate financial resources ensures that the CWMS network is appropriately managed and preserved. Financial provisions below requirements impacts directly on community development and if prolonged, results in substantial needs for catch up expenditure imposed on ratepayers in the future. Additionally, deferred renewal results in increased and escalating reactive maintenance as aged assets deteriorate at increasing rates. In developing the levels of service as documented in this CMWS AMP, Council has given due regard to the strategic goals and objectives in the Strategic Plan which sets out the strategic direction of Council to implement its Management Plan over the following four years. Council has also given due regard to Legislative requirements and Australian Standards and stakeholder expectations in the form of customer research and expectation surveys. The levels of service documented in this CMWS AMP therefore reflect the current levels of service provided by Council, for the benefit of the community, in the context of Council s financial and human resources. 3.1 What is CWMS? The basic function of a sewer/effluent network is to convey household and commercial wastewater from sinks, bathrooms and toilets (basically everything that goes down the drain) to a point of disposal being a treatment plant, prior to disposing of the waste and water. Figure 3.1 Typical CWMS System District Council of Mount Barker District Council of Mount Barker CWMS Asset Management Plan Page 19 of 74

20 In Mount Barker, the effluent typically contains over 99% water and contains: Micro-organisms in the form of disease causing organisms (pathogens), including bacteria, viruses, protozoa and parasitic worms. 100 ml of sewage generally contains around 10 million E. coli bacteria. Suspended Solids which includes inert material such as sand and organic solids such as food scraps. Typical levels in sewage are 250 mg per litre. Organic Matter which include faeces, fats and oils. Nitrogen and Phosphorus Compounds usually present as ammonia or urea. The effluent system provides protection to the environment, as if this wastewater were to be discharged directly into the local creeks, surrounds or oceans untreated, it would have catastrophic consequences to our health and the local flora and fauna. In order to fulfil these functions, sewer & effluent systems must be in structurally sound condition. This means: They must not collapse, since this would cause the roadway above it to also collapse; They must not leak, since this would contaminate water, spread disease, and lead to environmental degradation; and They must not develop excessive infiltration or blockages, which would impair their hydraulic function (i.e. block and therefore sewage/effluent returns back into your home or business). In most densely populated areas of South Australia, sewage collection is operated by SA Water (linked to treatment of the waste stream), licensed by the Environment Protection Authority (EPA). Smaller population centres, typically non-metropolitan, rely on either a stand-alone septic tank system or a local government operated Community Wastewater Management System (CWMS) or Effluent Lagoons. The DCMB s CWMS network comprises of a number of various types of assets that enable the effective delivery of effluent services to the community, such as but not limited to gravity pipes, rising main pipes, access manholes, treatments plants, pump stations, electrical switchboards, tanks and sedimentation ponds. The CWMS asset class comprises of infrastructure that serve very different purposes. These are: Wastewater collection, and Reclaimed water distribution Wastewater schemes traditionally collect effluent or the liquid component of household wastewater. Solids are retained in the septic tanks of households. The wastewater is gravity fed or pumped to the treatment plant where it is treated by mechanical and chemical means before passing through oxidisation ponds and possibly wetlands for further polishing of the treated effluent. At the end of this journey which may take a number of weeks, the water quality has improved dramatically and can be used for a variety of purposes including irrigation. From this point, when the water leaves the wetland or lagoon, these assets downstream are said to belong to the reclaimed water system. In future revisions of this plan, it is possible that the reclaimed water system will be separated from the CWMS network and two plans will replace the one. District Council of Mount Barker CWMS Asset Management Plan Page 20 of 74

21 In 2009, the quantity of pipes in the CWMS asset class is far greater than the reclaimed water class but it is acknowledged that this latter asset category will grow rapidly as further demand is placed on wastewater reuse from legislative requirements and customer expectations. 3.2 CWMS in the District Council of Mount Barker The four townships (Mount Barker, Littlehampton, Nairne and Brukunga) are currently operating as two separate schemes. All four townships have been linked through the installation of a pump station in Nairne that pumps the effluent from the townships of Nairne and Brukunga direct to the Mount Barker treatment plant site. Mount Barker/Littlehampton The Mount Barker/Littlehampton scheme consists of approximately 4,600 properties and businesses connected to the treatment plant via an asset portfolio of gravity drains and pump stations. The effluent from Littlehampton feeds via gravity into the Mount Barker CWMS pipe network. There are 23 pump stations district wide and 15 Siphons included within the gravity pipe network. The treatment plant consists of an inflow pump station or Raw Effluent Pump Station (REPS) with a 24 hour emergency storage basin, two facultative oxidation lagoons, a dissolved air flotation (DAF) plant, with a recently installed Actiflo and a continuous microfiltration (CMF) plant, with effluent passing through the facility in that order. The facultative lagoons have mechanical aeration devices installed providing aeration. This facility currently treats the effluent to a Class A standard as defined by the South Australian Reclaimed Water Guidelines. The treated effluent is then discharged from the treatment plan to two locations; the Laratinga Wetland system which is used for polishing and seasonal water balance and the new Bald Hills Rd storage and treatment facility. In the past the majority of treated wastewater or reclaimed water has been re-used for irrigation of Council reserves and privately owned market gardens with some discharge to the Barker Creek during the winter months coinciding with natural wet weather flows. In the future, the Bald Hills Rd facility will supply high quality water to the Kanmantoo mine and other opportunities further afield as far as Callington, potentially eliminating the need for any further discharge to the creek system subsequently achieving significant environmental benefits. Nairne/Brukunga The Brukunga scheme consists of approximately 70 properties and businesses connected to the treatment plant via an asset portfolio of gravity drains and pump station. It should be noted that this scheme is a sewerage scheme as opposed to a CWMS scheme. The sewage from Brukunga is pumped to Nairne. Nairne currently has approximately 1,200 properties and businesses connected to the Mt Barker Treatment Plant via an asset portfolio of gravity drains and pump stations. During times of high inflows to the Mt Barker Treatment Plant the effluent is fed via gravity to effluent lagoons located adjacent to the railway line on the outskirts of the Nairne township. The lagoon asset portfolio consists of one primary pond and one secondary pond. The treated effluent is then released to the Nairne Creek. These lagoons are currently undersized to receive a full time discharge and can only be used for emergency diversion during periods of high inflows to the Mt Barker Treatment Plant that threaten the EPA s requirement of a 600mm freeboard on the Mt Barker lagoons which is to prevent overflows of these lagoons to the nearby watercourse. Echunga/Meadows and Macclesfield These townships are serviced via individual septic tanks located on each property connected to the CWMS and the resulting effluent from each property is carried to lagoons located on the outskirts of each town. The Macclesfield lagoons are 100% evaporation lagoons with no District Council of Mount Barker CWMS Asset Management Plan Page 21 of 74

22 discharge to the local environment. Echunga lagoons are fitted with an overflow to the local environment; however these lagoons are located adjacent to the golf course which uses the effluent for irrigation during the dry months. To date this reuse has provided adequate storage in the Echunga lagoons during winter when less irrigation is required. Meadows lagoons currently discharge to the local watercourse, however this will not be permitted in the near future and Council will have find an alternative shortly. 3.3 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. At present, the most recent customer satisfaction survey does not report on satisfaction levels for wastewater management. The DCMB will make the LGASA aware of this current situation and request that future surveys include relevant questions on this service area. In addition to the Local Government Customer Satisfaction survey, Council also undertakes an analysis of annual customer service requests. The number of requests / complaints received by Council since 2003, with respect to all infrastructure asset services provided is illustrated in the diagram below. Stormw ater Drainage 11% Transport 53% Recreation and Open Space 23% CWMS 1% Buildings 12% Figure 3.2 Distribution of Customer Requests per Asset Class The above diagram indicates that of the 12,358 requests received between 2003 and 2009 that only 1% of these requests were in relation to CWMS assets. Whilst the total replacement value of CWMS assets accounts for approximately 15% of the total value of Council s infrastructure assets, these assets are mostly buried and rarely provide less than acceptable service. District Council of Mount Barker CWMS Asset Management Plan Page 22 of 74

23 No of Requests CWMS Customer Requests Per Annum Year Figure 3.3 Customer Requests per Annum The chart above illustrates that the number of requests relating to CWMS assets over the past five years comprises of peaks and troughs. The DCMB considers that the reasons behind such a low number of complaints are directly related to the condition and age of the CWMS asset portfolio. On average, the bulk of these assets have been constructed within the last 30 years and are deemed to have been constructed appropriately with respect to being fit for purpose and fit for use. In addition, the fact that the majority of Council s CWMS system carries only effluent as opposed to sewage is also another contributor in the low number of complaints, as raw sewage has higher toxicity levels which corrode and damage the internal lining of the pipes and also can contribute to the pipe blockages. Distribution of CWMS Customer Requests Per Annum 100% 90% 80% No of Requests 70% 60% 50% 40% 30% 20% 10% 0% Blockages Maintenance Year Figure 3.4 Customer Requests per Annum The above figure illustrates that the maintenance requests have generated the highest percentage of requests as opposed to blockages. This is typically due to the fact that the majority of Council s system carries effluent as opposed to raw sewage as previously discussed. District Council of Mount Barker CWMS Asset Management Plan Page 23 of 74

24 However, the above illustration does not account for emergency call outs which are considered a high priority and directly dealt with within 24 hours, but not logged within Council s Customer Request System. It has been estimated from overtime hours, that Council s Depot Staff have attended to approximately 40 call outs per annum. Customer Requests Within Target Response Times No. of Requests Buildings CWMS Recreation and Open Space Stormwater Drainage Transport Asset Class Within Target Exceeded Target 3.4 Legislative Requirements Figure 3.5 Customer Request Responsiveness In addition to using asset management as a tool to manage the community s assets and provide better services to the community, there are also legislative requirements that the DCMB must comply with in relation to the management of its CWMS assets. This CWMS AMP is governed by the following legislative and statutory requirements which are documented in the table below: Legislation Local Government Act 1934 and 1999 Requirement Sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by infrastructure and asset management plans for sustainable service delivery. The powers, functions and duties of the Council are detailed in Chapter 2, Sections 6 to 7 and Chapter 10, Section 155 of the LGA The LGA 1934 provides legislation to empower councils to install and maintain STEDS and to recover the costs of such schemes from landholders. Local Government (Financial Management and Rating) Amendment Act 2005 Impetus for the development of a Strategic Management Plan, comprising an (Infrastructure) Asset Management District Council of Mount Barker CWMS Asset Management Plan Page 24 of 74

25 Plan and Long-term Financial Plan. Occupational Health, Safety and Welfare Act 1986 Roads (Opening and Closing) Act 1991 Environmental Protection Act 1993 Public and Environmental Health Act 1987 Environmental Protection (Water Quality) Policy 2003 An Act to provide for the health, safety and welfare of persons at work. An Act to provide for the opening and closing of roads. This Act places a duty of care on people not to undertake activities that will cause environmental harm. This Act consolidates previous Acts relating to Public Health and provides for the prevention and spread of disease. It covers the responsibility for administering waste control systems. It covers all schemes that are not the responsibility of SA Water. The principal object of this policy is to achieve the sustainable management of waters, by protecting or enhancing water quality while allowing economic and social development. The Policy has several obligations which are required to be adhered to such as; General obligation to avoid discharge etc into waters Obligation not to cause certain environmental harm Obligation not to contravene water quality criteria listed in (Schedule 2) EPA Licence Agreement Public and Environmental Health (Wastewater Systems) Regulations 2007 Development Act 1993 Note: The Policy came into force on 1st October 2003, and required all STED schemes to comply within 12 months. Exception was given to those schemes where the relevant license expired after1st October 2004, in which case, schemes must comply by the expiry date of that licence. As few, if any schemes fall into this category, STED schemes must now meet the regulatory requirements outlined in the EPP. See conditions of agreement. These regulations have been created under the Public and Environmental Health Act These regulations cover Wastewater system requirements and approvals, Operation, maintenance and servicing of wastewater systems, Reuse or disposal of wastewater from wastewater systems and Connection to reticulated community wastewater system. 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. Division 3 Crown development and public infrastructure recognises that STED schemes can be crucial pieces of infrastructure in new developments in regional areas and STEDS infrastructure that involves a change in the use of District Council of Mount Barker CWMS Asset Management Plan Page 25 of 74

26 the land (settling/treatment ponds) is subject to assessment. National Reclaimed Water Guidelines 2003 Department of Health Reclaimed Water Guidleines See Dept of Health website Developer lodges application with Dept Health for extension of CWMS Scheme and Dept Health check with Council prior to issuing approval. Council sets the standards for minimum design requirements to meet the Dept Health Guidelines. Table 3.6 Legislative Requirements This CWMS AMP also recognises the following standards and specifications which are documented in the table below: Standards and Specifications Australian Accounting Standards. Minimum Standard Required for Works Performed on Council STEDS and DCMB Engineering Design Standards Water Services Association of Australia - National Codes and Standards Requirement Sets out the financial reporting standards relating to infrastructure assets. Standards of particular relevance to Infrastructure Assets include: AASB 116 Property, Plant & Equipment prescribes requirements for recognition and depreciation of property, plant and equipment assets AASB 136 Impairment of Assets aims to ensure that assets are carried at amounts that are not in excess of their recoverable amounts AASB 1021 Depreciation of Non-Current Assets specifies how depreciation is to be calculated AAS 1001 Accounting Policies specifies the policies that Council is to have for recognition of assets and depreciation AASB 1041 Accounting for the reduction of Non- Current Assets specifies the frequency and basis of calculating depreciation and revaluation basis used for assets AAS 1015 Accounting for acquisition of assets method of allocating the value to new assets on acquisition Provides the standards of design and construction as a result of renewal or upgrade works undertaken by Council or for those assets that will vest in Council following new property developments. The Water Services Association of Australia (WSAA) has published Codes of practise and standards for the creation of new public water supply and sewerage infrastructure. These Codes and standards have been widely adopted by WSAA members and associates, but in some cases, with significant additions and variations to suit local practices. DCMB references these standards. The Codes are supported by the activities of other industry networks that focus on issues such as asset management, quality assurance and products and materials such as District Council of Mount Barker CWMS Asset Management Plan Page 26 of 74

27 pipes, valves, fittings etc. Sewage Pumping Station Code of Australia The Sewage Pumping Station Code of Australia, together with a Water Agency supplement and other referenced documents, sets an Agency s requirements for: Minimum acceptable technical criteria for design and construction of pumping stations, associated structures and gravity mains. Table Standards and Specifications It should be noted that the above legislative and statutory requirements, regulations, design specifications and standards form the minimum levels of service for Council s CWMS assets. 3.5 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 current service levels are detailed below: Key Performance Measure Level of Service Performance Measure Process Performance Target Current Performance COMMUNITY LEVELS OF SERVICE Quality Well maintained and suitable wastewater collection and disposal system No. of customer requests relating to CWMS maintenance < 50 per annum 6 (2009) Function Meet SA Health Dept standards Compliance to approval conditions < 1 non-compliance event 0 (2009) Function Meet EPA standards Compliance to approval conditions < 1 non-compliance event 1 (2009) Safety Low level of risk to personal and environmental health No. of overflows within the pipe network and/or at pump stations < 10 per annum 5 (2009) Safety Low level of risk to No. of < 1 per annum 0 (2009) District Council of Mount Barker CWMS Asset Management Plan Page 27 of 74

28 personal and environmental health overflows at Lagoons and the WWTP (untreated effluent) Responsiveness Response time to customer requests Time taken to complete requests > 80% of all requests adequately responded to within target time frames. Not Measured at Present TECHNICAL LEVELS OF SERVICE Condition Network assets in good condition Condition score < 5% of all pipes in poor condition (condition 5) 1% (2009) Function Pump Stations No. of unplanned downtime incidents, excluding power failures < 5 incidents per annum 2 (2009) Cost Effectiveness Provide a cost effective CWMS system Operational Cost per connection Rates per connection to be within 10% when compared with neighbouring municipalities running similar services 9,508 rateable properties (2009) $1.653M Operational and Maintenance $173 per connection Safety Operate a CWMS that has a low level of OHS&W risk No. reported incidents of 0 LTIF days 0 (2009) Function Reuse 100% reuse by % (2009) Function Odour control from WWTP Level odour WWTP of near See EPA 1912 < 1 non-compliance 0 (2009) Function Septic Tank Cleaning No of times Septic Tank Cleaned 90% of Septic Tanks cleaned on a 5 yearly cycle 90% (2009) Safety Treated Water Quality Compliance against Reclaimed Water Guidelines 90% of samples taken meet guidelines See Madhawa for % of compliance Safety Water Quality Monitoring Program No samples taken of 90% compliance with regards to samples monitored 95% (2009) Table 3.8 Current Service Levels District Council of Mount Barker CWMS Asset Management Plan Page 28 of 74

29 In addition to these, Council s Licence Agreement conditions in terms of operating the CWMS System require that DCMB provide a monthly monitoring program to ensure that the water quality meets the Health Department and EPA Requirements. For a detailed analysis of the water quality monitoring program and samples, these are stored in Council s Electronic Document Management System. The maintenance levels of service delivered on a day to day basis (i.e. responding to customer requests for service faults and responding to breakdowns) are being progressively documented with the assistance of Field Services Staff and will be endorsed by Council separately. The service level manuals document: 1. The task or work expected to be undertaken, e.g. clear blockage from manhole or pipe to remove hazard. 2. The schedule of inspections to be undertaken of specified matters at specified intervals; 3. The circumstances under which intervention action is to be taken with respect to repair or maintenance needs for defects reported or found on inspection; 4. The priority to be given to intervention level; 5. The type of priority intervention action that will be carried out; 6. Provision, as far as practicable, for the unpredictable, i.e. emergencies, natural disasters; and 7. Assessment of resources required to deliver the specified maintenance services. Responsibility for immediate dangerous situations with respect to CWMS assets, is initially assessed or undertaken by Councils operational staff or the after-hours response team. This plan acknowledges the importance of understanding and monitoring the linkage between workload indicators and intervention actions, as a substantial increase in number of pipes or pumping stations can materially impact upon intervention action (and customer satisfaction and duty of care requirements) if not accompanied by a comparable increase in budget allocation or productivity improvement. Given the outcomes of an internal review with respect to Council s CWMS maintenance services, the standards of maintenance detailed in this CWMS AMP are considered reasonable and meeting community expectations in the context of responsible and reasonable asset management. 3.4 Desired Levels of Service Indications of desired levels of service are obtained by the DCMB from a variety of various sources including feedback from Councillors, residents feedback to Councillors and staff, service requests and correspondence. In the preparation of DCMB s Strategic Plan , extensive community consultation was undertaken. The consultations with the community identified the importance of considering sustainability in our decision-making. In terms of asset management, this translates to the following key principles: Making informed decisions with a long-term view aiming to balance current community needs and expectations with the future needs of our community. Integrating social, economic and environmental criteria in the management and assessment of our assets aiming for a more holistic, systems based approach. District Council of Mount Barker CWMS Asset Management Plan Page 29 of 74

30 Given the outcomes of the internal review with respect to Council s CWMS services, the standards detailed in the CWMS AMP are considered reasonable and meet community expectations. District Council of Mount Barker CWMS Asset Management Plan Page 30 of 74

31 4. FUTURE DEMAND Council s fundamental role is to provide services to the community and its CWMS assets are a means to support this. Consequently, future demand for CWMS assets are tied to the demand for Council s services and this is a more complex consideration than population growth. Issues such as changes to legislation, 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 CWMS assets. CWMS asset management plans are critically driven by the needs of the services to be delivered and therefore meaningful CMWS asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining Council s CMWS 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 comply with legislation or the needs of staff who provide services to the community. The following sub-sections discussing forecasted demographic trends and documented service strategies will assist the DCMB in understanding the CWMS 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. The DCMB Community Strategic Plan includes Four Pillars and Five Goal Areas that have informed and guided the establishment of this CWMS AMP. The Four Pillars consist of: Protecting and enhancing our natural environment Creating a vibrant and resilient community Respecting and promoting culture and heritage; and Facilitating growth of local business, economic and employment opportunities The Five Goal Areas that the Community Strategic Plan consist of: People and Communities The Natural Environment Enterprise, Business and Industry Infrastructure and Human Settlements; and Council Leadership As well as these guiding principles from the Community Strategic Plan, there was extensive community and stakeholder consultation which identified the main areas of concern that are central to the CWMS AMP. This process also confirmed an overall objective which is to develop a safe, integrated and efficient CWMS network that meets current and future needs. Perhaps the biggest influence on future CWMS requirements within the District is the expected rate of development and resulting population increases. Recent Census Population figures for the District illustrate an annual population growth rate of approximately 3%. This has resulted in an average of over 300 extra dwellings per annum over the past eight years. The State Government has outlined in its 30 Year Plan for Greater Adelaide that Mount Barker will expect to house an District Council of Mount Barker CWMS Asset Management Plan Page 31 of 74

32 additional 20,000 people over the next 15 years, which will result in an approximate additional 7,000 property connections. Demand factor trends and impacts on service delivery are summarised below: Demand factor Present position Projection Impact on services Population 29,294 (based on 3% growth from 2006 Census recorded population) 39,368 by 2018 (based on 3% growth from 2006 Census recorded population) Population growth will be mostly supported by green-field development meaning a greater number of gifted assets to Council. Demographics Average person per household Average person per household However, Council will also need to consider adequacy of current Treatment Plants and Pumping Stations to cater for these additional dwellings. Despite the overall increase in population, the trend is for smaller households, which will impact on the number of property connections to Council s piped network. Higher density developments Average allotment size = see development plan Higher development density Despite the higher density, this is offset by the smaller household so existing wastewater systems should generally be able to cope. Customer Expectation Minor development around wastewater treatment plants Greater development around wastewater treatment plants Improved treatment processes leading to less smell from plants. Environmental Awareness Small percentage of wastewater reuse. Greater wastewater reuse for irrigation of reserves, etc. More network infrastructure to take advantage of treated wastewater in storage. Table 4.1 Demand Factors, Projections and Impact on Services For capital and maintenance works, the demand drivers include: Rapid asset growth; Increased age of these assets; Increased community expectation of accountability of asset maintenance; Increased community expectation of, for example, quality of piped network: Remaining useful life of existing infrastructure; Early failure of some donated assets; and Increased costs associated with working in more congested traffic and as a result of supply / purchase of materials and labour. The requirement to manage treated wastewater in a more environmentally sensitive way and the general demand for quality water supply by commercial customers has resulted in Council pursuing the development of a new treatment facility and storage dam on Bald Hills Rd. This will accommodate the delivery of reclaimed water to customers along the Kanmantoo and Callington pipeline as well supply to Council reserves in the immediate vicinity. District Council of Mount Barker CWMS Asset Management Plan Page 32 of 74

33 4.2 Changes in Technology Council is continuously monitoring new asset treatments or changes within the industry that may be available to adopt or implement to increase the life of its assets. Technology changes that could affect the delivery of services covered by this CWMS AMP are documented in the following table. Technology Change Household Treatment Treatment and Filtration IT Communications New pipe materials Construction Methods Renewal Methods New Household Water Devices Effect on Service Delivery Replacing septic tanks with Aerobic Systems to treat and re-use wastewater before it leaves the property. Due to the nature of cost to purchase and maintain, these systems by residents, Council does not currently endorse the installation of these systems where a CWMS network is available. New technology for treating effluent results in a higher rate of treatment and improved end product. Council keeps abreast of all new technologies and applies these as required or appropriate. Improvements in IT equipment provide better monitoring and operating of the CWMS WWTP remotely. VC pipes are progressively being replaced with PVC (and variants of) pipes. This has resulted in greater efficiencies, less pipe failures, fewer blockages, lower maintenance expenditure and a more reliable service to the customer. These effects will compound as more VC pipes are replaced. The use of underground boring methods when replacing or renewing these underground pipes, as opposed to trenching, can result in substantial reduction of costs when renewing existing pipes. Re-lining of cracked sewer pipes as opposed to total removal and replacement, can result in substantial reduction of costs when renewing existing pipes. Household water saving devices like dual flush toilets, low-flow shower heads and front-loading washing machines which reduce water demand and hence the flow of effluent via Council s piped network and Treatment Plants. Table 4.2 Changes in Technology and Forecast effect on Service Delivery In time, Council will explore these options with regards to the overall impact on this CWMS AMP. 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. District Council of Mount Barker CWMS Asset Management Plan Page 33 of 74

34 Clearly the DCMB s demand of its CWMS asset use is going to increase proportionally with the predicted population growth and predicted demographic changes. Council has already identified storage and treatment capacity issues, given that the proportion of population is bound to increase significantly. This fact has been taken into account in the financial planning. At this stage Council does not have a formal demand management Plan, as more data on demographics needs to be collected to review the impacts and pressures of population growth on these assets. Council is formally addressing the CWMS requirements of the State s 30 year growth plan and this will determine these assets will be provided in the future. However, the key opportunities that have been recognised in the preparation of this CWMS AMP are shown in the table below. Further opportunities will be developed in future revisions of this CWMS AMP. Service Activity Wastewater Collection Wastewater Treatment Treated Wastewater Distribution Demand Management Plan Use master planning to ensure new infrastructure is capable of meeting the demands of future generations over its lifecycle i.e. avoid replacing pipes and pump station before their end of life due to capacity constraints. Discuss with SA Water the likelihood of expansion of their wastewater network into Mount Barker, Nairne and Littlehampton. SA Water will service the growth areas defined in the Ministerial DPA however Council will need to be cognisant of their delay in establishing new infrastructure and the need to provide a continued service to new customers in the interim. Centralise treatment plants to avoid the outlay of capital for new facilities and minimise the cost of ongoing operations and maintenance. Investigate opportunities for developers to build and operate localised treatment facilities. Investigate opportunities for private companies to build and operate treatment facilities to deliver benefits to the community and Council (BOOT Scheme). Greater emphasis is being placed on the benefits of reusing wastewater particularly while water restrictions are in place. Expand the opportunities for using reclaimed water to irrigate Council reserves and metered supply to domestic properties and industry where greater economic benefits can be realised e.g. mining, agriculture, etc. Strategically plan the development of new wastewater systems infrastructure to support all avenues of wastewater re-use i.e. one pipe that has the capacity to support multiple purposes. Table 4.3 Demand Management Plan Summary District Council of Mount Barker CWMS Asset Management Plan Page 34 of 74

35 4.4 New Assets from Growth The creation and construction of new CWMS assets involves two distinct processes - first design and then the construction. All new CWMS infrastructure required for new developments is built by the developers and/or their contractors, in accordance with State Government Legislation and Guidelines such as the Register of Technical Guidelines SA Water, Sewage Pumping Station Code of Australia and Water Services Association of Australia - National Codes and Standards and approved by Council. Council staff supervises the works to ensure compliance to these specifications and guidelines. When the works are completed the developer hands these assets over to Council for ownership and maintenance for the remainder of their useful life. However, a defect liability period of 12 months is applicable to all assets created by the developer. This is how the majority of new assets required to meet growth are acquired by Council. However, it should also be noted that Council also acquires new assets as a result of these developments in the form of Pumping Stations or Lagoons or Treatment Plants, where they are designed and constructed by Council staff and/or their contractors. Since 2007, Ascent Estate has been identified as the only major development to have added assets to Council s CWMS asset portfolio and these have been summarised below as follows. Note: These values have been calculated using the 2007/08 Ascent Estate residential development as a case study and have been compared to other Councils in South Australia. As future developments in the District are completed, these values will be reviewed and updated. Estate Name: Ascent No. of New Allotments: 116 Average Allotment Size: 680 sq.m Min and Max Range: 512 sq.m to 1370 sq.m Asset Type Quantity Dimension Unit Rate ($) Replacement Value ($) Value per Allotment ($) Pipes (Gravity Mains 100mm) 1,670 m $122 Could be closer to $200 review unit rate $203,740 $1, Pipes (Gravity Mains 150mm) 8 m $139 $1,112 $9.59 Pipes (Connections) 752 m $122 $91,744 $ Manholes 1 $2,375 $2,375 $20.47 Flushing Points 29 $ $12,760 $ Pump Stations TOTALS: $311,731 $2,687 Table 4.4 Value of New Assets Per Allotment District Council of Mount Barker CWMS Asset Management Plan Page 35 of 74

36 The proposed new developments in Mount Barker, Meadows, Nairne and Littlehampton over coming years will continue to contribute to Council s CWMS asset portfolio. The majority of all new developments will be on a STEDS Scheme. The exceptions will be Hahndorf which is a sewer system and which is managed by SA Water. New development in Brukunga and Meadows will also be a sewer system which will be processed by Council. Taking into account past development information it is estimated that the additional values of these assets will increase Council s CWMS asset portfolio stock from $53.1 million to $56 million 2 within the next three to five years. Development Number of New Allotments CWMS Replacement Value ($) Hurling Dr, Mount Barker 200 $537,400 Sims Rd, Mount Barker 270 $725,490 Matthew Rd, Nairne 100 $268,700 Gum Tree Dr, Littlehampton 180 $483,660 Shakes Rd, Nairne 100 $268,700 Meadows 180 $483,660 Hallet Rd, Littlehampton 50 $134,350 Treatment Plant (Meadows) - $1,200,000 TOTALS: 1,080 $4,101,960 Table 4.5 Value of Gifted Assets In terms of increases to the asset stock, it is calculated that the following CWMS asset quantities will be gifted to Council from developers: Asset Type Pipes (Gravity Mains 100mm) Pipes (Gravity Mains 150mm) Pipes (Gravity Mains 300mm) Pipes (Gravity Mains 450mm) Pipes (Connections) Quantity 15,500 m 75 m 2,300 m 400 m 7,000 m Manholes 24 Flushing Points 480 Pump Stations 1 Treatment Plants (Meadows) 1 Siphons 4 Table 4.6 Quantity of Gifted Assets 2 Using the average cost per allotment as calculated from the Ascent Development being $2,687 per allotment. District Council of Mount Barker CWMS Asset Management Plan Page 36 of 74

37 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 new assets will require additional maintenance and operational funds (i.e. resources, utilities and materials etc) in the order of $82,000 3 per annum. It has been estimated that these gifted assets will contribute an additional $350k per annum to Council s CWMS income. 3 Using the current industry benchmark standard of 2% of the total replacement cost. District Council of Mount Barker CWMS Asset Management Plan Page 37 of 74

38 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. Life Cycle Management is recognised by the DCMB as an essential component of this CWMS AMP. This section of the CWMS AMP will provide details of the DCMB s data and processes required to effectively manage, maintain, renew and upgrade Council s CWMS network. It also documents the analysis that the DCMB undertakes regularly to predict and monitor expected future expenditure required to effectively manage Council s CWMS network. To undertake lifecycle asset management, means considering all management options and strategies as part of the asset lifecycle, from planning to disposal. The objective of managing the assets in this manner is to look at long-term cost impacts (or savings) when making asset management decisions. The diagram below provides a graphical representation of the asset lifecycle including each of the stages an asset passes through during its life. Figure 5.1 Asset Lifecycle Diagram 5.1 Background Data Physical parameters The assets covered by this infrastructure asset management plan are shown below: Pipes Manholes Flushing Points Equipment All pipes whether they be for collection or distribution of wastewater. This includes connections (or services), gravity mains and rising mains (also known as pumping mains). All manholes and access points that form a junction of two or more pipes and provide physical access to the underground pipe system to perform inspections, cleaning and repair. Points where the underground pipe system is raised to the natural surface to allow inspection and flushing of the gravity main below to occur. These points are also known as inspection openings and are often shortened to FP or IO. All mechanical, civil and electrical assets that typically can be found at pump stations and treatment plants. Examples include pumps, sheds, telemetry, lagoons, wells, ponds etc. Table 5.2 Description of Asset Types District Council of Mount Barker CWMS Asset Management Plan Page 38 of 74

39 The district of Mount Barker is characterised by a number of distinct urbanised townships with a central service centre in Mount Barker itself. It is these areas where the large majority of CWMS infrastructure is located. Rural properties use septic tanks but are not connected to a common effluent disposal scheme. These assets are therefore the responsibility of the land owner and they are not subject to a separate rate for CWMS. Township areas have an extensive network of pipes, manholes and flushing points that are largely buried underground and out of sight. The only evidence of an underground wastewater network in most cases is where manholes and flushing points are raised to the surface to enable inspection and maintenance to occur more readily. As such, the condition of underground assets is difficult to ascertain without the use of Closed Circuit Television (CCTV) technology which is both expensive and time consuming. Typically a wastewater drainage network comprises a number of connections to households and business, a series of gravity mains that collect the effluent and one or more pump stations that carry effluent from the lower parts of the catchment to higher ground or to the treatment plant. Gravity mains can vary in diameter and material depending on when they were constructed and for what design inflow. The majority of the wastewater network is constructed from PVC pipe; however there is still a small network of vitreous clay (VC) pipes at Brukunga which are much more susceptible to cracking, disjointing and tree root intrusion than PVC pipes. Pipe ages are estimated to be up to 45 years old. Later pipes are generally constructed from materials such as PVC or upvc. The benefits of these materials over concrete and VC are numerous and include; easier and cheaper to construct because of the lighter weight and size, easier to join, they are less prone to cracking and root intrusion and have a lower coefficient of friction which provides for better effluent flow in the pipe and hence offers a better performance. The anticipated useful life of these assets is estimated to be between years but this is yet to be confirmed. Council will continue to monitor the condition of these assets over time and will review its assumptions on a regular basis. District Council of Mount Barker CWMS Asset Management Plan Page 39 of 74

40 Fig 5.3 Pipe Length by Pipe Material The approximate age profile of Council s assets is shown below. Sum of Pipe Length by Estimated Year Built Sum of Length (m) Year Built Fig 5.4 Asset Age Profile The age profile of CWMS assets has been derived from the average development age of the land immediately surrounding the asset. This technique was developed using Council s own GIS and knowledge of land divisions derived from the digital cadastral database (DCDB). The outcomes from the analysis should be interpreted with some caution as they are inferred and are an estimate at best. They do however enable an age profile of assets to be established where prior to this no age data existed. The estimated construction year is now populated for each and every asset. The age profile reflects a CWMS network that parallels the history of urbanised development in the district of Mount Barker. Major infrastructure has been established as townships expanded and health regulations came into force. This is particularly evident through the 1970 s. New large scale developments in recent years around Mount Barker, Nairne and Littlehampton are bringing with it new wastewater infrastructure. Council s objective to reuse more of its wastewater has brought about rapid expansion of its reclaimed water pipe network too which now extends to many of the reserves and parks that Council maintains. In the case of CWMS network, the majority of assets are long lived ( years) so it is the older more established areas of urban centres that are likely to first reach failure due to age related condition defects and/or capacity related issues. District Council of Mount Barker CWMS Asset Management Plan Page 40 of 74

41 5.1.2 Asset capacity and performance Council s services are generally provided to meet engineering design standards and statutory requirements. Council has published a set of design standards on its web page to guide developers and others in the planning and construction of new infrastructure. The Local Government Association of South Australia (LGASA) has also published a number of CWMS publications which provide useful information for Councils and developers to assist them with, background information, management and operational matters; design requirements; and regulatory matters. Where possible Council will undertake network based condition modelling to estimate the remaining capacity of pipes and pump stations. This information will then be used to guide the location of new development, the conditions applied to new development and the allocation of funding to asset renewal and upgrade. Whilst Council has undertaken basic condition network modelling to date; the following locations where deficiencies in service performance are known have been derived from local knowledge and observation by staff. Location Brukunga Township All Siphons WWTP and Pump Stations Storage Morphett Street Cameron Road, Mount Barker Adelaide Road, Echunga Service Deficiency Functionality numerous blockages and overflows due to the age and material of pipes. Subject to tree root intrusion. Lack of easements create difficulties for Council to undertake maintenance activities on the pipes and manholes. Functionality prone to blockage if not maintained correctly; can cause environmental problems if an overflow occurs as they are generally located within close proximity of waterways. Condition recent inspections of siphons have highlighted some significant condition defects in the concrete pipe walls. Capacity rapid population growth requires that the WWTP be upgraded to support the increased capacity. Capacity During heavy rains, the WWTP is prone to exceeding its inflow capacity due to illegal stormwater connections to the wastewater network and perhaps some infiltration of groundwater. Functionality The telemetry system installed at the WWTP and various pump stations is obsolescent and needs to be upgraded to modern standards. Council has limited storage capacity of treated waste water and has therefore acquired land on the corner of Bald Hills Road and Little Dublin Road, Mount Barker for additional storage capacity. Functionality numerous blockages and overflows due to the size of the pipe and increase in effluent from upstream properties.. The gravity main that runs parallel with the Mount Barker Creek behind Cameron Road is a critical collector pipe that may be prone to capacity problems as the town centre expands. Gravity main dog leg on Adelaide Rd approximately 100 metres North West of West St. Can cause a reduction in flow rate and back up. Potential blockage concern. Dean Street PS, Mount Needs to be upgraded with Sims Rd development. Currently only District Council of Mount Barker CWMS Asset Management Plan Page 41 of 74

42 Barker one pump working and one non-return valve and two isolating valves not working due to corrosion. Pumping main is constantly charged suspected due to back flow from gravity main connection near Gypsy Lane. This makes servicing the pump and fittings very difficult and expensive. Table 5.5 Known Service Performance Deficiencies The above service deficiencies were identified from: Discussions with staff Analysis of CWMS network performance data Review of United Water s Detailed Asset Management Plan (2002) Asset condition By understanding the condition of Council s CWMS assets and the various types of distresses that affect Council s assets, the DCMB can utilise this data to endeavour to maintain the level of service the community wants, in the context of affordability and also minimise the risk of asset failure. The consequences of CWMS asset failure can include legal liability and upstream impacts to households and businesses and downstream impacts on receiving waterways. Leaking CWMS pipes pose a serious health risk to rivers and environment. In addition, cracked/broken CWMS pipes allow groundwater to get into the pipes, causing overflows from manholes during times of heavy rain and increase in flow rates entering Council s WWTP which leads to pressure and subsequent discharge to nearby creeks. There are many reasons why existing CWMS assets fail/deteriorate and therefore do not meet current performance standards and community expectations. Among the most common reasons for failure are the following: 1. Damage caused to new underground pipes from developers during the construction process. 2. Damage by service authorities when installing / constructing their infrastructure within Council s road reservation. 3. The drought and predominant soils within the municipality are clay type soils, which are highly reactive and expand and contract with changes in moisture content. The movement of the sub soil can generally cause the underground CWMS pipes to move from their original constructed alignment, becoming disjointed. This is mainly evident in Brukunga where the pipes are of VC material and more prone to this type of failure. 4. Tree roots searching for water entering cracked pipes or at the pipe joint, causing permanent structural damage or blockage in many instances. Again, this is mainly evident in Brukunga where the pipes are of VC material and more prone to this type of failure. 5. Inadequate pipe design, which impedes sewer flow and can lead to localised chokes and blockages. This is evident in suburbs which were constructed in the 1970 s and onwards. As additional new dwellings are constructed upstream, they place a heavier burden on these downstream pipes to carry more effluent and in some cases, the pipe diameters are too small to handle these additional flow rates. District Council of Mount Barker CWMS Asset Management Plan Page 42 of 74

43 6. Old and outdated CWMS asset construction materials such as the vitreous concrete pipes with mortar joints. These do not handle the soil conditions well and as the ground moves, the pipe which is rigid becomes disjointed and/or cracks. The DCMB has a documented CWMS Rating Manuals which identify how the assets are to be inspected and condition rated. As the bulk of the CWMS asset portfolio is buried underground, the DCMB has adopted two methods of applying condition rating scores to its CWMS network and this is by visual and non visual assessment. The non visual assessment relies on two main factors which contribute to the allocation of a condition score and they are: Age of the asset; and Known capacity issues / blockage issues. The visual assessment relies on the use of Closed Circuit TV (CCTV) cameras to view the condition of the pipes, inspection openings and flushing points internally and physically lifting each manhole cover and visually inspecting them. The factors which contribute to the allocation of a visual condition score are: Structural soundness of the asset; and Known capacity issues. Due to the extensive network of DCMB owned CWMS underground assets, the exercise of undertaking CCTV inspections is a costly one and the DCMB does not have the available financial resources required to undertake extensive CCTV visual condition assessments for the entire CWMS network. It is therefore envisaged that Council will undertake data sampling of its network over a period of 5 years whereby DCMB engineering staff will be able to utilise the statistical analysis method to ascertain the network condition of its CWMS assets based on a percentage of audited data in conjunction with utilising capacity and functionality issues as a result of the current and future population growth. With regards to the CWMS manholes, it is envisaged that these will be individually inspected on a rolling 5 year program to determine their condition. In the interim, Council has adopted the non visual assessment method which defines the condition of the CWMS assets as follows: Condition Index Age or Visual Condition Estimated Pipe Age Estimated Manhole Age Condition Description 1 Very Good < 20 years < 10 years Brand New or Very Good. Providing a Very High Level of Service. 2 Good > 20 years and < 40 years > 10 years and < 20 years Good condition with no indicators of any future obsolescence and providing a good level of service 3 Fair >40 years and < 60 years 4 Poor > 60 years and < 75 years >20 years and < 40 years > 40 years and < 45 years Aged and in fair condition providing an adequate level of service. No signs of immediate or short term obsolescence. Will need to renew, upgrade or dispose in near future. Is reflected District Council of Mount Barker CWMS Asset Management Plan Page 43 of 74

44 via inclusion in the 5 year Capital Works Plan. 5 Very Poor > 75 years > 45 years Below an acceptable level of service. Requires renewal/upgrade immediately within the following year or so. Table 5.6 Asset Condition Rating Method It should be noted that for the pipes condition scores, all pipes which have been constructed of vitreous clay (VC) material, were automatically allocated a condition score of 5, as these pipes are subject to blockages, movement and failure. In addition, all gravity mains constructed at a depth greater than 3 metres were assigned an additional point score due to the load and environmental stresses placed upon those pipes e.g. a gravity main pipe considered to be 30 years old would be allocated a condition score of 2 and if that pipe has a depth greater than 3 metres then the final allocated score would be a condition score of = 3. In terms of the CWMS above ground assets which include assets located within the WWTP (such as ponds, lagoons etc) and Pumping Stations, these were condition inspected and rated by Unit Water International in 2001 / Each asset component was condition rated following a set procedure according to the "Data Collection and Assessment Manual for Above Ground Assets". An overall grade for condition and performance was allocated for each asset component. In general, a condition score of "1" indicates an asset in good to excellent condition or performance and is unlikely to need replacement or refurbishment in the near short term. A condition score of "5" indicates an asset in poor and unacceptable condition or performance and requires immediate attention. The following graphs illustrate the DCMB s CWMS Network Condition based on Council s condition data and taking into account the above condition rating scales. The graphs show the percentage of Council s asset portfolio in each category of community condition scales % 2009 Snapshot of CWMS Pipes 50.00% % of Asset Network 40.00% 30.00% 20.00% 10.00% 0.00% Excellent Good Fair Poor Very Poor Community Rating Scale District Council of Mount Barker CWMS Asset Management Plan Page 44 of 74

45 Figure 5.7 Wastewater Pipe Asset Condition Profile 2009 Snapshot of CWMS Manholes 70.00% 60.00% % of Asset Network 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Excellent Good Fair Poor Very Poor Community Rating Scale Figure 5.8 Wastewater Manholes and Openings Asset Condition Profile 2009 Snapshot of CWMS Above Ground Assets 45.00% 40.00% % of Asset Network 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Excellent Good Fair Poor Very Poor Community Rating Scale WWTP & PS Figure 5.9 CWMS Equipment Asset Condition Profile At present, the current hypothetical cost of recouping the back-log (being any asset that represents poor or very poor condition) by immediate capital renewal is $0.95 million (Refer to the table below). District Council of Mount Barker CWMS Asset Management Plan Page 45 of 74

46 Area of Asset In Poor or Very Poor Condition (Condition Index = 4 or 5) Total Current Cost of repairing CWMS network considered to be in poor and very poor condition Pipes and Connections equates to 2,571m $314,929 Manholes and IO s and FP s equates to 40 $25,728 Above ground assets equates to 103 $607,066 Table 5.10 CWMS Funding Backlog If undertaken over a period of 10 years, the annualised backlog figure is $95,000 per annum Asset valuations The value of CWMS assets as at opening of 2009/10 covered by this CWMS AMP is summarised below. Assets were last revalued at end of 2008/09. Annual Depreciation ($,000) Accumulated Depreciation ($,000) Replacement Asset Type Value ($,000) CWMS 53,081 (808) (10,505) 42,713 Total 53,081 (808) (10,505) 42,713 Written Down Value ($,000) Table 5.11 Assets Valuations as at June 30, 2009 Council s sustainability reporting reports the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion. Asset Consumption (WDV/RV) 81% Asset Renewal (2009 only) 73% Asset Renewal (over last 5 years) N/A 5.2 Risk Management Plan An assessment of risks 4 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 below. Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan CWMS Siphons Blockage High Flushing program 6 monthly. CWMS Siphons Leak to the creek leading to environmental hazard High Monitored bi-annually 4 District Council of Mount Barker s CWMS Infrastructure Risk Management Plan District Council of Mount Barker CWMS Asset Management Plan Page 46 of 74

47 CWMS Stations CWMS WWTP Pump Stop Working High Manual pump out, alarm control to advise of power failure,(4hr storage allowance at all stations) Exceed capacity during high rainfall leading to environmental overflows to creeks (particularly Nairne) High Overflow lagoon, monitoring Increase capacity of plant Fix illegal connections Upgrade capacity of WWTP CWMS Gravity Main Blockage High Some proactive pipe flushing Installation of Grease traps has been defined in Council s specifications for businesses Entire Network Extended disruption to services from a blockage or burst High Overflow lagoon, monitoring Increase capacity of plant Identify and require owners to fix illegal connections Upgrade capacity of WWTP CWMS Resources Availability of staff High Shared knowledge between two staff, documented procedures and manuals, corporate asset register Job share (more backup) Staff retention initiatives Dean St Pump Station Wastewater overflow and flooding leading to environmental hazard High Manual pump out, alarm control to advise of power failure (4hr storage allowance at all stations) Replace pumps and fix valves in the near future Wait for Sims Rd development contribution 5.3 Routine Maintenance Plan Table 5.12 Critical Risks and Treatment Plans Over time, minor faults can occur with the CWMS assets. Council addresses the repairs and maintenance of these faults on the basis of defined intervention levels and response times. The intervention level defines the condition, state or risk level associated with an asset component, i.e. the point in time at which the asset is considered to be below an acceptable level of service. Maintenance is scheduled as soon as the asset reaches this point. Response time defines a reasonable time frame within which the residents can expect Council to remedy the defect Maintenance plan Maintenance includes reactive, planned and cyclic maintenance work activities. Reactive maintenance refers to unplanned repair work carried out either in response to customer requests or as a result of management / supervisory directions. i.e. a resident has noted that there is a blockage or failed manhole and reported it to Council to be rectified. Planned maintenance is repair work that is identified and managed through a proactive inspection schedule. The proactive inspection involves assessing the condition of the asset against District Council of Mount Barker CWMS Asset Management Plan Page 47 of 74

48 documented level of service criteria and prioritising, scheduling and actioning the work to be undertaken within documented time frames. Typically Council s utilise Maintenance Management Systems to input these works into, so that Council s can produce reports indicating how many defects have been identified and rectified within the nominated response times to allow Council s to improve on their maintenance and service delivery performance. The DCMB is currently piloting and developing the maintenance management module in the mydata Asset Management System. It is envisaged that within the next four years, all planned and reactive work will be entered and generated from within this maintenance management module. Cyclic maintenance refers to works that are undertaken on a cycle, in the case of CWMS assets, being desludging of siphons, servicing pumps etc. This work generally falls below the capital/maintenance threshold. Figure 5.13 Replacing a Seized Isolating Valve, Dean St PS, January 2009 Capital and Maintenance expenditure trends are shown in the table below. Account Description OPERATIONAL CWMS Employee Costs 208, , , , ,530 CWMS Training 680 3, ,755 1,612 CWMS Consultants 28,750 27,831 25,551 62,705 77,725 Plant Hire Internal 2,901 1,578 2,200 1,399 1,853 Plant Hire Internal - Private 2,722 1,507 5,096 2,326 9, , , , , ,473 MAINTENANCE Mount Barker 308, , , , ,905 Littlehampton 18,306 77,266 36,665 85,427 68,170 District Council of Mount Barker CWMS Asset Management Plan Page 48 of 74

49 Meadows 26,782 32,335 16,395 13,849 94,946 Brukunga 8,247 12,305 17,063 12,408 10,819 Echunga 10,732 9,618 12,501 72,773 21,716 Nairne 127,317 87,985 48,048 59, ,765 Macclesfield 25,740 31, ,951 28,801 36,246 Repairs & Maintenance 28,321 32,578 17,180 21,774 12,223 WWTP Maintenance 454, , , , ,441 Wetlands Development 0 3,111 17,871 1,647 7,050 Water Re-use Infrastructure Maintenance ,410 12,626 CAPITAL 1,008,857 1,076,106 1,391,604 1,532,264 1,359,908 CWMS Capital Works 262,139 2,357,022 2,068, , , ,139 2,357,022 2,068, , ,090 Total Expenditure 1,514,872 3,623,570 3,639,543 2,233,761 2,053,470 Table 5.14 CWMS Capital and Maintenance Expenditure 2,500,000 Past Expenditure on CWMS Network Expenditure $ 2,000,000 1,500,000 1,000, ,000 Maintenance Capital Operational 0 04/05 05/06 06/07 07/08 08/09 Financial Years Figure 5.15 CWMS Expenditure Trends Planned maintenance work is calculated at approximately 90% 5 of Council s total maintenance expenditure. 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. Response levels of service are currently being reviewed and will be endorsed by Council through the adoption of this CWMS AMP. Maintenance expenditure levels are considered to be adequate to meet current service levels being delivered. Future revision of this CWMS AMP will include linking required maintenance 5 This value has been calculated taking into account the fact that the majority of the maintenance expenditure is for planned maintenance activities such as servicing, cleaning etc. All costs associated with non planned maintenance activities have been excluded. District Council of Mount Barker CWMS Asset Management Plan Page 49 of 74

50 expenditures with required service levels, whilst also ensuring that allocation of maintenance funds are allowed for in the financial statements for assets which are annually gifted to Council Standards and specifications Currently Council has documented the Service Standards for CWMS assets in terms of defects which are required to be rectified, their intervention levels and response times for these rectification works. The DCMB has formally endorsed engineering specifications for all new and renewal works. In addition to these there are also legislative standards and codes of practices Summary of future maintenance expenditures As previously discussed, routine maintenance refers to works undertaken to address minor defects such as pipe blockages, collapsed manholes, seized valves etc. These treatment works are undertaken to keep Council s CWMS assets in a safe and operational condition, but not necessarily to improve the overall condition of these assets. It should be noted that when undertaking the lifecycle modelling, these types of costs are taken into consideration by assuming that, each year, a percentage of these distresses (such as small sections of failed pipes) will be repaired as part of Council s routine maintenance. If these assets are left to deteriorate (i.e. sufficient capital expenditure is not allocated), then the amount of distresses being fixed under routine maintenance will increase and hence the routine maintenance expenditure required will also increase. Equally, if the condition of these assets improves then the routine maintenance expenditure required will decrease. DCMB s proposed maintenance expenditure is shown in the following table below. It should be noted that these financial allocations are based on the current level of capital funding being allocated into the future and hence the average expenditure of the previous 2 years has been identified as being sufficient to keep the current level of service, with an adjustment of CPI for each financial year. This maintenance expenditure does not take into account new assets gifted to Council; as such an event would require additional funds, according to the amount and type of assets either gifted or constructed. Maintenance Activity 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Mount Barker $367,637 $378,667 $390,027 $401,727 $413,779 $426,193 $438,978 $452,148 $465,712 $479,684 Littlehampton $79,102 $81,475 $83,919 $86,437 $89,030 $91,701 $94,452 $97,286 $100,204 $103,210 Meadows $56,030 $57,710 $59,442 $61,225 $63,062 $64,954 $66,902 $68,909 $70,976 $73,106 Brukunga $11,962 $12,321 $12,691 $13,071 $13,463 $13,867 $14,283 $14,712 $15,153 $15,608 Echunga $48,662 $50,122 $51,625 $53,174 $54,769 $56,412 $58,105 $59,848 $61,643 $63,493 Nairne $132,754 $136,736 $140,838 $145,064 $149,416 $153,898 $158,515 $163,270 $168,169 $173,214 Macclesfield $33,499 $34,504 $35,539 $36,606 $37,704 $38,835 $40,000 $41,200 $42,436 $43,709 Repairs & Maintenance $17,509 $18,034 $18,575 $19,132 $19,706 $20,298 $20,906 $21,534 $22,180 $22,845 WWTP Maintenance $710,006 $731,306 $753,245 $775,843 $799,118 $823,091 $847,784 $873,218 $899,414 $926,397 Wetlands Development $4,479 $4,613 $4,752 $4,894 $5,041 $5,192 $5,348 $5,508 $5,674 $5,844 Water Re-use Infrastructure Maintenance $27,829 $28,664 $29,523 $30,409 $31,321 $32,261 $33,229 $34,226 $35,253 $36,310 Total $1,489,468 $1,534,152 $1,580,177 $1,627,582 $1,676,410 $1,726,702 $1,778,503 $1,831,858 $1,886,814 $1,943,41 8 Table 1.16 Planned Maintenance Expenditure District Council of Mount Barker CWMS Asset Management Plan Page 50 of 74

51 Maintenance is funded from Council s operating budget and grants where available. 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 CWMS assets requiring renewal have been identified from the 10 year prediction modelling undertaken in The modelling forms the basis for the renewal programs. Above ground asset renewals have been identified from United Water s works program developed as part of the work undertaken in What Treatments do we typically do* Why do we currently use this treatment/ in what situation is this treatment ideal?* Pipe Renewal Excavate and remove existing pipe and replace the pipe with modern engineering equivalent pipes. Typically this work is undertaken between manholes or Inspection Openings or Flushing Points. Pipe Section Repairs Excavate and remove existing pipe and replace the pipe with modern engineering equivalent pipes. Typically work is undertaken at isolated sections. Pipe Upgrade Excavate and remove existing pipe and replace the pipe with modern engineering equivalent pipes. Typically this work is undertaken between manholes or Inspection Openings or Flushing Points and the pipe diameter will be larger than the existing diameter. Pipe is failing or does not meet service demand (due to blockages, misalignment, soil movement, tree root damage or cracked or broken). Pipe is failing or does not meet service demand (due to blockages, misalignment, soil movement, tree root damage or cracked or broken) at isolated locations Pipe not meeting service demand due to poor design or new developments, upstream. Manhole Replacement Replace or rehabilitate a manhole which typically involves excavation, shoring dependent upon the depth and reinstatement. Manhole Reline Reline the floor of the manhole with either a concrete or plastic material. Treatment is undertaken where erosion of the manhole has occurred either due to the high levels of toxicity or due to the age of manhole. Treatment is undertaken where erosion of the manhole floor has occurred only. The side walls of the manhole are in good condition. Table 2.17 Asset Renewal Treatments Renewal will be undertaken using low-cost renewal methods where practical. The aim of lowcost 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. District Council of Mount Barker CWMS Asset Management Plan Page 51 of 74

52 It should be noted that Council s mypredictor modelling software has an optimisation component that assesses each treatment and determines which treatments should be applied taking into account whole of life-cycle costs. Candidate proposals are then inspected to verify accuracy of remaining condition and/or life estimates and to develop a preliminary renewal estimate. Verified proposals are then ranked by priority and available funds and scheduled in future works programmes. The priority ranking criteria is detailed below. Criteria Weighting Perceived Risk Factor 40% Pipe Size (Catchment Area) 20% Previous Performance History 20% Customer Requests 20% Total 100% Table 5.18 Renewal Priority Ranking Criteria Renewal standards Renewal work is carried out in accordance with the following Standards and Specifications. Council s Engineering Design Standards; Local Government Association of South Australia Guidelines and Design Requirements; Water Services Association of Australia - National Codes and Standards; Sewage Pumping Station Code of Australia; and Register of Technical Guidelines SA Water Summary of future renewal expenditure The objective of this Section is to model the deterioration of the DCMB s CWMS network by developing simulation models using the mypredictor modelling software to identify the future 10 year renewal expenditure requirements. This process involved for the CWMS underground asset network; setting up life cycle paths for condition criteria as previously discussed in Section and 5.4.1, identifying the current treatments and unit rates to deliver the renewal treatments and setting up treatment decision matrices (matrices based on selected condition criteria that when matching will drive a treatment based on the condition). By utilising the above process and setting up the criteria and logic within the mypredictor modelling software, it has been possible to model the future costs of Council s CWMS underground asset renewal requirements and also to predict the future condition of Council s CWMS underground assets based on the current expenditure. With regards to CWMS above ground assets, the process in determining the renewal expenditure requirements has been obtained from condition and capacity data as identified by United Water International in It should be noted that this data has been kept up to date via desktop condition updates and as assets have had capital works undertaken on them, the condition scores have been relived. District Council of Mount Barker CWMS Asset Management Plan Page 52 of 74

53 This CWMS AMP is based upon the best available information that was available at the time the plan was written. The following table below summarises the confidence levels of information contained in this CWMS AMP. Asset Category Confidence Rating Quantity Condition Age Performance Overall Pipes and Connections C E D D D Manholes, ISO s and FP s C E D D D WWTP A B A B B+ Pumping Stations A C B B B Confidence Grade A B C D General Meaning Highly Reliable < 2% uncertainty Data based on sound records, procedure, investigations and analysis which is properly documented and recognised as the best method of assessment Reliable ± 2-10% uncertainty Data based on sound records, procedures, investigations, and analysis which is properly documented but has minor shortcomings for example the data is old, some documentation is missing and reliance is placed on unconfirmed reports or some extrapolation. Reasonably Reliable ± % uncertainty Data based on sound records, procedures, investigations, and analysis which is properly documented but has minor shortcomings for example the data is old or incomplete, some documentation is missing and reliance is placed on unconfirmed reports or significant extrapolation. Uncertain ± 25 50% uncertainty Data based on uncertain records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolation from a limited sample for which grade A or B data is available. E Very Uncertain > 50% uncertainty Data based on unconfirmed verbal reports and/or cursory inspection and analysis Table 5.19 Confidence Rating of CWMS Data Note that uncertainty is cumulative. Therefore the uncertainty limits in financial forecasts will be the sum of the inaccuracies of the data and quality of assumptions that is used to produce it. The following graphs illustrate the DCMB s CWMS Network Condition based on Council s condition data. The graphs show the percentage of Council s asset portfolio in each category of community condition scales depending on the available budget allocated to each of the CWMS asset portfolio. It is envisaged that as improved information regarding the assets condition and capacity requirements becomes available, that this information will be updated to reflect this. District Council of Mount Barker CWMS Asset Management Plan Page 53 of 74

54 2.5 Average Service Score DCMB CWMS Pipes Average Condition Index $0 $50K Scenario 0 Scenario Year Figure 5.20 Predicted Outputs for DCMB CWMS Pipes Scenario Scenario Table 5.21 Predicted Outputs for DCMB CWMS Pipes 3.5 Average Service Score DCMB CWMS Manaholes Average Condition Index $0 $20K Scenario 0 Scenario Year Figure 5.22 Predicted Outputs for DCMB CWMS Manholes Scenario Scenario District Council of Mount Barker CWMS Asset Management Plan Page 54 of 74

55 Table 5.23 Predicted Outputs for DCMB CWMS Manholes Average Service Score DCMB CWMS WWTP & PS Average Condition Index Year $0 $200K Scenario 0 Scenario 1 Figure 5.24 Predicted Outputs for DCMB CWMS WWTP and PS Scenario Scenario Table 5.25 Predicted Outputs for DCMB CWMS WWTP and PS 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. These assets from growth are considered in Section Selection criteria Currently, new assets and assets which require upgrade or expansion works are identified from various sources including local Council staff knowledge with regards to capacity and functionality issues of existing assets, councillor or community requests and actions identified by strategic plans. Council has identified the following priority ranking criteria with regards to the selection to upgrade or expand its CWMS assets. Criteria Weighting Capacity 40% Reliability 20% Obsolescence 15% District Council of Mount Barker CWMS Asset Management Plan Page 55 of 74

56 Low Operation Cost 10% Return on Investment 15% Table 5.26 New Assets Priority Ranking Criteria As a municipality that is currently experiencing a strong amount of population growth, all new assets are acquired from property developers and hence new assets are typically not constructed by Council. However, assets which have been identified as a result of capacity or functionality issues i.e. upgrading a 150mm trunk main pipe with a 250mm pipe or upgrading a pump station to cater for increased effluent flow rates; these proposed candidates are identified and submitted to Council for final approval in conjunction with the annual capital works program Standards and specifications Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those for renewal shown in Section These standards will help ensure assets are handed over to Council in excellent condition to ensure trouble free operation. Post-construction asset inspection is highly recommended to avoid future problems and costly rectification measures. One such example is the apparent crushing of a CWMS gravity main whilst installing a nearby stormwater side entry pit. This pipe constriction led to an eventual blockage, effluent overflow and service disruption for a number of customers whilst the repair was undertaken by Council field staff. Figure 5.27 Crushed CWMS Gravity Main (Jan 2009) Burnbank Way, Mount Barker Summary of future upgrade/new assets expenditure As previously indicated, there is approximately $4.5 million worth of new CWMS assets that Council expects to be gifted during the life of this CWMS AMP, which includes a new WWTP in Meadows and a Pump Station. At present, Council has plans to significantly upgrade the Mount Barker WWTP. The upgrade involves the design, supply and installation of a pre-treatment unit and upgrade of the existing micro filtration unit. It has been estimated that the cost of this works expected to be delivered by June Council has also identified the upgrade of the Chlorination Plant and Ultra Violet District Council of Mount Barker CWMS Asset Management Plan Page 56 of 74

57 Treatment Facility and is in the process of preparing technical specifications to call for Tenders. This works is expected to be delivered by 2011/2012. These projects are considered necessary to ensure that the DCMB will be in a position to cater for increased residential development as a result of its current growth which will place a strain on Council s current CWMS above ground and below ground assets. The total budget required to undertake this works is in the vicinity of $2.9 million. A maximum of $445,000 has been secured from the LGA for the overall project and the remainder of the funding will be contributed by Council via the CWMS Reserve Account. Planned upgrade/new asset expenditures are summarised below. All costs are shown in current 2010 dollar values. Expenditure $ Future New and Upgrade Expenditure on DCMB CWMS Network $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 PS New Below Ground Upgrade Below Ground New WWTP Upgrade WWTP NEW $0 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Financial Years Figure 5.28 Planned Capital Upgrade/New Asset Expenditure New assets and services are to be funded from Council s capital works program and grants where available. This is further discussed in Section Disposal Plan Disposal is any activity associated with removing an asset from service through decommission, including sale, demolition or relocation. The DCMB has identified the following CWMS assets within its network that are excess to requirements or not required as a result of obsolescence. However, this is a continuous process which will be reviewed on an as required basis. Asset Reason for Disposal Timing Cashflow from disposal Wiland Street Pump Station Bernhart Court Pump Station This Pump Station is now only servicing two properties as opposed to the many before. Possible to dispose, because Council may be 2-5 years $0 2-5 years $0 District Council of Mount Barker CWMS Asset Management Plan Page 57 of 74

58 able to bypass with a gravity main as opposed to renewing the pump station Table 5.29 Assets identified for Disposal Where cashflow projections from asset disposals are not available, these will be developed in future revisions of this infrastructure asset management plan. District Council of Mount Barker CWMS Asset Management Plan Page 58 of 74

59 6. FINANCIAL SUMMARY This section contains the financial requirements resulting from all the information presented in the previous sections of this infrastructure asset management plan. The financial projections will be improved as further information becomes available on desired levels of service and current and projected future asset performance. 6.1 Financial Statements and Projections The financial projections are shown in Fig 7 for planned operating (operations and maintenance) and capital expenditure (renewal and upgrade/expansion/new assets). Expenditure $ Planned Operating and Capital Expenditure on DCMB CWMS Network $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 10/1111/1212/1313/1414/1515/1616/1717/1818/1919/20 Past Average Expenditure Upgrade / New Maintenance Capital Renewal Figure 6.1 Planned Operating and Capital Expenditure Note that all costs are shown in current 2009/10 dollar values. The 10 year funding forecast combines routine maintenance (planned and reactive), Below Ground Capital Works (i.e. pipe and manhole renewals and pipe and manhole upgrades) and Above Ground Capital Works (i.e. Treatment Plant upgrades and Pump Station renewals, such as motors and electrical assets). The 2006 WWTP and Pump Station condition data prepared by United Water and the 2007 age profile data prepared by Council, has been used as the basis of the plan. In this plan, the extent of pipe upgrade work over the ten year period is limited. The Financial Plan presents an average expenditure of underground pipe and manhole renewals in the order of $70,000 per annum whilst $200,000 per annum is allocated towards maintaining the pump stations and the WWTP. A further $2.9 million has been identified for proposed capital expenditure to upgrade the WWTP in Mount Barker, whilst it is also anticipated that DCMB will be gifted a new WWTP and Pump Station in Meadows which will cost the developer in the order of $1.2 million. These assets will require on-going annual human and financial resources to ensure that they operate effectively and efficiently to meet all EPA legislation. District Council of Mount Barker CWMS Asset Management Plan Page 59 of 74

60 2010/ /12 12/ / / / / / / /20 Activity ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) ($,000) Maintenance $1,489 $1,534 $1,580 $1,628 $1,676 $1,727 $1,779 $1,832 $1,887 $1,943 Pipe Renewals $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 Manhole Renewals $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 WWTP and PS Renewals $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 WWTP Upgrade $1,705 $1,342 $0 $0 $0 $0 $0 $0 $0 $0 CCTV Inspections $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 Manhole Inspections $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 Total $3,484 $3,166 $1,870 $1,918 $1,966 $2,017 $2,069 $2,122 $2,177 $2, Funding Strategy Table 6.2 Proposed Capital Works Financial Plan Projected expenditure as identified in Section 6.1 is currently funded from three primary sources being: 1. Ratepayers paying and annual service charge as allowed for under Section 155 Community Wastewater Management System Charge of the Local Government Act 1999; 2. Developers paying a fixed amount per new allotment created as a capital connection contribution under Section 188 CWMS Infrastructure Fee of the Local Government Act External Federal and State Government Grants Other sources of CWMS funding include: 1. Council customers paying DCMB for the supply by Council of treated waste water for reuse (non-potable); and 2. Infrastructure provision by developers required pursuant to several legal agreements with developers that DCMB entered into late 2006 where such infrastructure is required in the Development Plan as a pre-condition for land division and residential development to occur. The funding strategy is detailed in the Council s 10 year long term financial plan. The 10 Year Financial Plan is a dynamic document in that it is reviewed and refined on a continual basis, to reflect as accurate as possible changes in financial circumstances. The base point used for the modelling is the annual budget as at 30 June 2009 and has resumed a growth factor to account for additional income, or costs from, expected population growth. The use of historical information has been incorporated to provide more information where possible. Council s objective of its long term financial plan is to achieve as a minimum, a break even operating position. 6.3 Valuation Forecasts Asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Council and from assets constructed by land developers and District Council of Mount Barker CWMS Asset Management Plan Page 60 of 74

61 others and donated to Council. Fig 28 illustrates the projected replacement cost asset values over the planning period in current 2009 dollar values. $62,000 $60,000 $58,000 $(,000) $56,000 $54,000 $52,000 $50,000 $48, Figure 6.3 Projected CWMS Asset Replacement Values Depreciation expense values are forecast in line with asset values as shown in Fig 29. $ (,000) $980 $960 $940 $920 $900 $880 $860 $840 $820 $ Figure 6.4 Projected Depreciation Expense 6.4 Key Assumptions made in Financial Forecasts This section details the key assumptions made in presenting the information contained in this infrastructure and asset management plan and in preparing forecasts of required operating and capital expenditure and asset values, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts. Key assumptions made in this infrastructure and asset management plan are: The current levels of service will remain constant over the life of this CWMS AMP. District Council of Mount Barker CWMS Asset Management Plan Page 61 of 74

62 The treatment and maintenance costs are based on Council s current schedule of rates and may not directly compare to Councils internal service provision actual costs. All predicted financial figures are based on 2009/10 rates and are not adjusted by the inflation rate for the particular year of works. Projected population growth as per the State Government s 30 Year Plan for Greater Adelaide. All pipe depth assumed to be 1.5 metres All unknown pipe material assumed to be reinforced concrete. All unknown pipe diameter assumed to be 375mm All pits assumed to be of the same standard size All assets to be in a condition commensurate with their age profile All unknown pit types have been classified as light duty. Accuracy of future financial forecasts has been improved by the DCMB as a result of a change in methodology of the development of the annual depreciation charge by moving away from straight line methods to consumption based. However, Council considers that these financial forecasts can further be improved in future revisions of this CWMS AMP by the following actions: Further visual inspection and audit of assets CCTV of pipe internals to validate condition rating Further refinement and improvement of the prediction modelling life-cycle paths and decisions; Refinement of the levels of service currently being delivered via consultation with the community. Measurement of asset dimensions such as pipe diameters, pit depths, etc. Tracking maintenance type expenditure District Council of Mount Barker CWMS Asset Management Plan Page 62 of 74

63 7. ASSET MANAGEMENT PRACTICES 7.1 Accounting/Financial Systems Council s finance system is Authority from CIVICA. This system has been utilised as Council s primary finance system for a number of years. It currently manages all financial transactions and holds the General Ledger. It includes a Capital Value Register (CVR) for storing asset valuation details and computing depreciation expenses. The Senior Finance Officer and Senior Accountant are responsible for operating the finance system. A Systems Analyst provides technical support for the systems operation and maintenance. The South Australian Local Government (Financial Management) Regulations 1999 requires that Council prepare and maintain all accounting records, accounts and financial statements in accordance with all relevant Australian Accounting Standards. The DCMB complied with the following accounting standards and guidelines as required: AASB 116 Property, Plant & Equipment prescribes requirements for recognition and depreciation of property, plant and equipment assets AASB 136 Impairment of Assets aims to ensure that assets are carried at amounts that are not in excess of their recoverable amounts AASB 1021 Depreciation of Non-Current Assets specifies how depreciation is to be calculated AAS 1001 Accounting Policies specifies the policies that Council is to have for recognition of assets and depreciation AASB 1041 Accounting for the reduction of Non-Current Assets specifies the frequency and basis of calculating depreciation and revaluation basis used for assets AAS 1015 Accounting for acquisition of assets method of allocating the value to new assets on acquisition AAS 27 Financial reporting by Local Government AAS 1010 Recoverable Amounts of Non-Current Assets specifies requirement to test the reasonableness of valuations Council has prepared and endorsed a capitalisation and depreciation policy with schedules for capitalisation and valuation thresholds. These financial thresholds and activities have been developed to assist in determining when expenditure is capital or maintenance. 7.2 Asset Management Systems Council has a number of systems that when combined provide effective asset management. These are: Assetic s MyData asset register holding inventory data, condition data, valuation data and related documents such as photos. Assetic s MyPredictor modelling to determine long-term forecast expenditure programs, both capital works and maintenance. MapInfo s GIS the location of all assets and in some cases the point of entry for new assets. CIVICAS Authority CRM and possibly works management Asset Management systems are linked to the finance system in the following ways: District Council of Mount Barker CWMS Asset Management Plan Page 63 of 74

64 Asset valuation and depreciation is calculated in MyData and then exported to Authority to be entered at the asset class level. Capital treatments and maintenance expenditure are determined from Authority and used as inputs into the modelling in MyPredictor. In 2007, Council began to implement financial work orders to compliment the current ledger structure and provide the necessary detail to measure asset performance over it s life. This was also regarded as a way to record the different kinds of maintenance expenditure on each asset i.e. planned, unplanned and cyclic. Work orders have only been partially implemented and further investigation is needed to identify the most suitable costing model and then proceed to change the current work practises of staff. Responsibilities for administering asset management systems are as follows: Manager Assets and Contracts Assetic software (MyData, MyPredictor) GIS Officer MapInfo Systems Analyst Authority As a result of this asset management plan, the following changes are proposed for the asset management system: Tighter integration with the GIS so that all assets can be located easily with accuracy Transition to a work order system for work planning and control Add additional asset data to the asset register to make the system more beneficial for staff Link customer requests with specific assets or asset types. 7.3 Information Flow Requirements and Processes The key information flows into this CWMS AMP are: The asset register data on dimensions, condition, financial values, remaining useful life of the network; The unit rates for categories of work/material; The adopted service levels; Projections of various factors affecting future demand for services; Correlations between maintenance and renewal, including decay models; and Data on new assets acquired by council. The key information flows from this CWMS AMP are: The assumed Works Program and trends; The resulting budget, valuation and depreciation projections; The useful life analysis. These will impact the Long Term Financial Plan, Strategic Business Plan, annual budget and departmental business plans and budgets. The asset management system holds the entire asset register for all infrastructure assets. MyData records the unit rate, economic life, remaining useful life, replacement value, annual depreciation and written down value for each and every asset in the register. Authority too has an asset register called the Capital Value Register or CVR. The CVR has a high level summary of the asset values stored in MyData. For example, MyData has valuation information on every component (surface, pavement, kerbing, footpath, etc.) of every segment of every road whereas the CVR only records the value at the highest level the pipe or pump station. District Council of Mount Barker CWMS Asset Management Plan Page 64 of 74

65 The purpose of this integration is to ensure that current asset values are accurately presented in Council s financial statements from Authority without the need to duplicate entire asset registers. The asset management system will be able to inform the finance system as to what capital work orders are required to be created in any one year. By using MyPredictor to generate capital works programs, this information can be easily migrated to Authority to create the work orders so that expenditure can be tracked against that job. Currently Council is developing it processes for recognising the creation of infrastructure assets. Council has embarked on a journey to capture the back log of asset inventory data primarily for the purposes of asset revaluation. This is on the threshold of being completed and Council recognises the importance of now maintaining the asset register as has been reflected in the asset management policy. New assets can be realised in any one of the following ways: Gifted to Council from developers Constructed as part of a project, and Installed by Field Services staff The number of gifted assets to Council is on the increase. With the majority of these assets being buried, it is important that good as-constructed information is supplied by the developer. Council has developed its own digital as-constructed information standards to ensure that this occurs. This standard, when partnered with the Engineering Design Standards, provides the developer with all the information needed to deliver high quality assets and information relating to those assets to the satisfaction of Council. Council s own Developer Interface Engineer ensures that developers follow the correct process for recognising new assets. Similarly for major projects, the Project Manager is responsible for ensuring that the information pertaining to any new assets is provided to Council in adherence with the standards and in a timely manner. Lastly, Council is working on procedures for internal staff to follow when installing new assets. This will involve recording some detail about the new asset and its location and then passing this information to the officer responsible for updating the asset register. Currently this process is very informal. Council recognises the sensitivity of new asset creation as opposed to maintenance or repair. Council s capitalisation policy describes in financial and non-financial terms what is considered to be a new asset (capital expenditure) and what is considered to be just maintenance. 7.4 Standards and Guidelines Council has an asset management policy and strategy which prescribe how asset management is to be utilised by Council to achieve it strategic outcomes which have been defined in its Community Strategic Plan. The principal purpose of the Asset Management Policy is to guide Council in the delivery of needs based services to the residents, businesses and visitors of the District. It is based on a set of policy principles that relate to: Asset Planning & Budgeting Asset Operations & Maintenance District Council of Mount Barker CWMS Asset Management Plan Page 65 of 74

66 Risk Assessment & Management Asset Accounting & Costing Information Systems Data Management In addition, Council has an Asset Management Strategy. The objective of the Asset Management Strategy is to develop a structured set of strategies aimed at enabling Council to improve its asset management practices in line with Council s Community Strategic Plan and Asset Management Policy. Combined with the subsequent asset management plans for each asset class, these documents will provide Council with a set of comprehensive information and a framework to assist both short and long-term service delivery planning. A key benefit of implementing this CWMS AMP is the resultant ability for Council to align its resources and needs against a key set of actions to implement asset management planning techniques that can be monitored for their performance and cost effectiveness. The IIMM provides an international best practice context to the development of asset management capability within Council. The maturity level of Council to undertake best practice is reported in the asset management strategy and will be reviewed regularly by an independent source. District Council of Mount Barker CWMS Asset Management Plan Page 66 of 74

67 8. PLAN IMPROVEMENT AND MONITORING 8.1 Performance Measures The effectiveness of the infrastructure asset management plan can be measured in the following ways: The degree to which the required cashflows identified in this infrastructure asset management plan are incorporated into council s long term financial plan and Strategic Management Plan; The degree to which 1-5 year detailed works programs, budgets, business plans and organisational structures take into account the global works program trends provided by the infrastructure asset management plan; 8.2 Improvement Plan The asset management improvement plan generated from this infrastructure and asset management plan is shown in the following table below. Task No Task Responsibility Resources Required Timeline 1. Review response levels of service for reactive maintenance In-house Resources 2. Modify finance system to capture expenditure against all types of maintenance wether proactive or reactive. In-house Resources 3. Test the current levels of service to determine if they are achievable for current budgets. Asset Manager In-house Resources 4. Undertake CCTV condition sampling audits of pipe network to develop an improved understanding CWMS Engineer Technical Officer and In-house Resources Ongoing 5. Undertake capacity analysis of CWMS network to develop an improved understanding what parts of the network will need to be upgraded as a result of increased population growth CWMS Engineer In-house Resources & Budget Allocation July Utilise Council s Asset Management System with regards to recording and reporting on customer requests In-house Resources 7. Modify the LGA Comparative Performance Measurement annual survey to include CWMS assets so that customer satisfaction levels can be monitored from year to year. Greg Sarre In-house Resources June Refine the current system so that it can generate a work order with an automatically generated response time. This response time is based on Council s service level matrix and is preconfigured in the system based on asset hierarchy. In-house Resources & Budget Allocation 9. Assess the structure and resources within Council, to ensure that the CWMS AMP can be effectively In-house Resources July 2010 District Council of Mount Barker CWMS Asset Management Plan Page 67 of 74

68 implemented. 10. Undertake a proactive cleaning and flushing program of all manholes and identify and assign a condition based score using Council s Data Collection Manual CWMS Technical Officer In-house Resources & Budget Allocation Ongoing 11. Update the water quality monitoring results get data back in Excel or database form so that it can easily be reported on CWMS Engineer Table 8.1 Improvement Plan 8.3 Monitoring and Review Procedures This infrastructure and asset management plan will be reviewed during annual budget preparation and amended to recognise any changes in service levels and/or resources available to provide those services as a result of the budget decision process. This CWMS AMP has a life of 4 years and is due for revision and updating within 2 years of each Council election. District Council of Mount Barker CWMS Asset Management Plan Page 68 of 74

69 REFERENCES District Council of Mount Barker, Draft Strategic Plan , District Council of Mount Barker, Annual Budget Reports District Council of Mount Barker, Long Term Financial Plan DVC, 2006, Asset Investment Guidelines, Glossary, Department for Victorian Communities, Local Government Victoria, Melbourne, F6?OpenDocument IPWEA, 2006, International Infrastructure Management Manual, Institute of Public Works Engineering Australia, Sydney, Dept of Infrastructure Detailed Asset Management Plan, United Water (2002) Kellogg Brown & Root Pty Ltd (KBR) STEDS Strategy Review 2020 (2003) Local Government Association of South Australia Website District Council of Mount Barker CWMS Asset Management Plan Page 69 of 74

70 APPENDICES Appendix A Map: Distribution of CWMS Assets Across the District District Council of Mount Barker CWMS Asset Management Plan Page 70 of 74