Building Assets Infrastructure and Asset Management Plan

Transcription

1 Building Assets Infrastructure and Asset Management Plan

2 Contents Naturally Better Abbreviations...i Glossary...ii Executive summary... 1 What Council provides... 1 What does it cost?... 1 Plans for the future... 1 Measuring our performance... 1 The next steps... 2 Introduction... 3 Background... 3 Goals and objectives of asset management.. 4 Plan framework... 7 Core and advanced asset management... 9 Levels of service Customer research and expectations Legislative requirements Current levels of service Desired levels of service Future demand Demand forecast Changes in technology Demand management plan New assets from growth Lifecycle management plan Background data Physical parameters Asset capacity and performance Asset condition Asset valuations Risk management plan Routine maintenance plan Maintenance plan Standards and specifications Summary of future maintenance expenditures Renewal/replacement plan Renewal plan Renewal standards Summary of future renewal expenditure Creation/acquisition upgrade plan Selection criteria Standards and specifications Summary of future upgrade/new assets expenditure Disposal plan Financial summary Financial statements and projections Sustainability of service delivery Funding strategy Valuation forecasts Key assumptions made in financial forecasts Asset management practices Accounting/financial systems Asset management systems Information flow requirements and processes Standards and guidelines Plan improvement and monitoring Performance measures Improvement plan Monitoring and review procedures References Appendices A Maintenance service levels B Inventory of Council buildings C Risk management plan D Projected capital renewal program E Leases (buildings) City of City Tea of Tree Tea Gully Tree Gully Building Building Assets Infrastructure Assets Infrastructure and Asset and Management Asset Management Plan 2013 Plan i

3 Abbreviations Naturally Better AAAC ARI BOD CRC CWMS DA DoH EF IAMP IRMP MMS PCI RV SS VPH Average annual asset consumption Average recurrence interval Biochemical (biological) oxygen demand Current replacement cost Community wastewater management system Depreciable amount Department of Health Earthworks/formation Infrastructure and Asset Management Plan Infrastructure Risk Management Plan Maintenance management system Pavement condition index Residual value Suspended solids Vehicles per hour ii i

4 Glossary Naturally Better Annual service cost (ASC) Average annual asset consumption (AAAC)* Capital funding accordingly. An estimate of the cost that would be tendered, The amount of a local government s asset base Funding to pay for capital expenditure. Capital upgrade expenditure per annum, if tenders were called for the supply of a service to a performance specification for a fixed term. The Annual Service Cost includes operating, maintenance, depreciation, finance/ opportunity and disposal costs, less revenue. Asset class Grouping of assets of a similar nature and use in an entity s operations (AASB ). Asset condition assessment The process of continuous or periodic inspection, assessment, measurement and interpretation of the resultant data to indicate the condition of a specific asset so as to determine the need for some preventative or remedial action. Asset management The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner. Assets Future economic benefits controlled by the entity as a result of past transactions or other past events (AAS27.12). Property, plant and equipment including infrastructure and other assets (such as furniture consumed during a year. This may be calculated by dividing the Depreciable Amount (DA) by the Useful Life and totalled for each and every asset OR by dividing the Fair Value (Depreciated Replacement Cost) by the Remaining Life and totalled for each and every asset in an asset category or class. Brownfield asset values** Asset (re)valuation values based on the cost to replace the asset including demolition and restoration costs. Capital expansion expenditure Expenditure that extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. It is discretional expenditure, which increases future operating, and maintenance costs, because it increases Council s asset base, but may be associated with additional revenue from the new user group, eg. extending a drainage or road network, the provision of an oval or park in a new suburb for new residents. Capital expenditure Relatively large (material) expenditure, which has benefits, expected to last for more than 12 months. Capital expenditure includes renewal, expansion and upgrade. Where capital projects involve a combination of renewal, expansion Capital grants Monies received generally tied to the specific projects for which they are granted, which are often upgrade and/or expansion or new investment proposals. Capital investment expenditure See capital expenditure definition. Capital new expenditure Expenditure which creates a new asset providing a new service to the community that did not exist beforehand. As it increases service potential it may impact revenue and will increase future operating and maintenance expenditure. Capital renewal expenditure Expenditure on an existing asset, which returns the service potential or the life of the asset up to that which it had originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time, eg. resurfacing or resheeting a material part of a road network, replacing a material section of a drainage network with pipes of the same capacity, resurfacing an oval. Where capital projects involve a combination of renewal, Expenditure, which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the Council s asset base, eg. widening the sealed area of an existing road, replacing drainage pipes with pipes of a greater capacity, enlarging a grandstand at a sporting facility. Where capital projects involve a combination of renewal, expansion and/or upgrade expenditures, the total project cost needs to be allocated accordingly. Carrying amount The amount at which an asset is recognised after deducting any accumulated depreciation / amortisation and accumulated impairment losses thereon. Class of assets See asset class definition Component An individual part of an asset which contributes to the composition of the whole and can be separated from or attached to an asset or a system. Cost of an asset and fittings) with benefits expected to last more than 12 month. and/or upgrade expenditures, the total project cost needs to be allocated accordingly. expansion and/or upgrade expenditures, the total project cost needs to be allocated The amount of cash or cash equivalents paid or the fair value of the consideration given to ii iii

5 acquire an asset at the time of its acquisition or Depreciable amount and this purpose is central to the objectives of environmental, acceptability and cost). construction, plus any costs necessary to place the asset into service. This includes one-off design and project management costs. Current replacement cost (CRC) The cost the entity would incur to acquire the asset on the reporting date. The cost is measured by reference to the lowest cost at which the gross future economic benefits could be obtained in the normal course of business or the minimum it would cost, to replace the existing asset with a technologically modern equivalent new asset (not a second hand one) with the same economic benefits (gross service potential) allowing for any differences in the quantity and quality of output and in operating costs. Current replacement cost As New (CRC) The current cost of replacing the original service potential of an existing asset, with a similar modern equivalent asset, i.e. the total cost of replacing an existing asset with an as NEW or similar asset expressed in current dollar values. Cyclic Maintenance** Replacement of higher value components/ sub-components of assets that is undertaken on a regular cycle including repainting, building roof replacement, cycle, replacement of The cost of an asset, or other amount substituted for its cost, less its residual value (AASB 116.6) Depreciated replacement cost (DRC) The current replacement cost (CRC) of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset Depreciation/amortisation The systematic allocation of the depreciable amount (service potential) of an asset over its useful life. Economic life See useful life definition. Expenditure The spending of money on goods and services. Expenditure includes recurrent and capital. Fair value The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties, in an arms length transaction. Greenfield asset values** Asset (re)valuation values based on the cost to initially acquire the asset. Heritage asset the entity holding it. Impairment Loss The amount by which the carrying amount of an asset exceeds its recoverable amount. Infrastructure assets Physical assets of the entity or of another entity that contribute to meeting the public s need for access to major economic and social facilities and services, e.g. roads, drainage, footpaths and cycle ways. These are typically large, interconnected networks or portfolios of composite assets The components of these assets may be separately maintained, renewed or replaced individually so that the required level and standard of service from the network of assets is continuously sustained. Generally the components and hence the assets have long lives. They are fixed in place and are often have no market value. Investment property Property held to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business (AASB 140.5) Level of service Life Cycle Cost** The life cycle cost (LCC) is average cost to provide the service over the longest asset life cycle. It comprises annual maintenance and asset consumption expense, represented by depreciation expense. The Life Cycle Cost does not indicate the funds required to provide the service in a particular year. Life Cycle Expenditure** The Life Cycle Expenditure (LCE) is the actual or planned annual maintenance and capital renewal expenditure incurred in providing the service in a particular year. Life Cycle Expenditure may be compared to Life Cycle Expenditure to give an initial indicator of life cycle sustainability. Loans/borrowings Loans result in funds being received which are then repaid over a period of time with interest (an additional cost). Their primary benefit is in spreading the burden of capital expenditure over time. Although loans enable works to be completed sooner, they are only ultimately cost effective where the capital works funded (generally renewals) result in operating and maintenance cost savings, which are greater than the cost of the loan (interest and charges). Maintenance and renewal gap air conditioning equipment, etc. This work generally falls below the capital/ maintenance threshold and needs to be identified in a specific maintenance budget allocation. An asset with historic, artistic, scientific, technological, geographical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture The defined service quality for a particular service against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, Difference between estimated budgets and projected expenditures for maintenance and renewal of assets, totalled over a defined time (eg 5, 10 and 15 years). iv v

6 Maintenance and renewal sustainability any savings or revenue to the Council, eg. parks Rate of annual asset renewal* Renewal index Ratio of estimated budget to projected expenditure for maintenance and renewal of assets over a defined time (eg 5, 10 and 15 years). and playgrounds, footpaths, roads and bridges, libraries, etc. Operating expenditure Recurrent expenditure, which is continuously required excluding maintenance and A measure of the rate at which assets are being renewed per annum expressed as a percentage of depreciable amount (capital renewal expenditure/da). Rate of annual asset upgrade* See capital renewal expenditure definition above. Residual value The net amount which an entity expects to obtain for an asset at the end of its useful life after deducting the expected costs of disposal. Maintenance expenditure Recurrent expenditure, which is periodically or regularly required as part of the anticipated schedule of works required to ensure that the asset achieves its useful life and provides the required level of service. It is expenditure, which was anticipated in determining the asset s useful life. Materiality An item is material is its omission or misstatement could influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. Modern equivalent asset A structure similar to an existing structure and having the equivalent productive capacity, which could be built using modern materials, techniques and design. Replacement cost is the basis used to estimate the cost of constructing a modern equivalent asset. Non-revenue generating investments Investments for the provision of goods and services to sustain or improve services to the depreciation, eg power, fuel, staff, plant equipment, on-costs and overheads. Pavement management system A systematic process for measuring and predicting the condition of road pavements and wearing surfaces over time and recommending corrective actions. Planned Maintenance** Repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure/ breakdown criteria/experience, prioritising scheduling, actioning the work and reporting what was done to develop a maintenance history and improve maintenance and service delivery performance. PMS Score A measure of condition of a road segment determined from a Pavement Management System. Rate of annual asset consumption* A measure of average annual consumption of assets (AAAC) expressed as a percentage of the depreciable amount (AAAC/DA). Depreciation A measure of the rate at which assets are being upgraded and expanded per annum expressed as a percentage of depreciable amount (capital upgrade/expansion expenditure/da). Reactive maintenance Unplanned repair work that carried out in response to service requests and management/ supervisory directions. Recoverable amount The higher of an asset s fair value less costs to sell and its value in use. Recurrent expenditure Relatively small (immaterial) expenditure or that which has benefits expected to last less than 12 months. Recurrent expenditure includes operating and maintenance expenditure. Recurrent funding Funding to pay for recurrent expenditure. Rehabilitation See capital renewal expenditure definition above. Remaining life The time remaining until an asset ceases to provide the required service level or economic usefulness. Age plus remaining life is economic Revenue generating investments Investments for the provision of goods and services to sustain or improve services to the community that are expected to generate some savings or revenue to offset operating costs, eg public halls and theatres, childcare centres, sporting and recreation facilities, tourist information centres, etc. Risk management The application of a formal process to the range of possible values relating to key factors associated with a risk in order to determine the resultant ranges of outcomes and their probability of occurrence. Section or segment A self-contained part or piece of an infrastructure asset. Service potential The capacity to provide goods and services in accordance with the entity s objectives, whether those objectives are the generation of net cash inflows or the provision of goods and services of a particular volume and quantity to the beneficiaries thereof. Service potential remaining* community that are not expected to generate may be used for AAAC. life. A measure of the remaining life of assets vi vii

7 Executive summary Naturally Better expressed as a percentage of economic life. It is (b) the number of production or similar units also a measure of the percentage of the asset s expected to be obtained from the asset by the potential to provide services that is still available entity. for use in providing services (DRC/DA). It is estimated or expected time between placing Strategic Management Plan (SA)** the asset into service and removing it from Documents Council objectives for a specified service, or the estimated period of time over period (3-5 yrs), the principle activities to which the future economic benefits embodied in a depreciable asset, are expected to be achieve the objectives, the means by which consumed by the Council. It is the same as the that will be carried out, estimated income and economic life. expenditure, measures to assess performance and how rating policy relates to the Council s Value in Use objectives and activities. The present value of estimated future cash Sub-component flows expected to arise from the continuing use of an asset and from its disposal at the end of Smaller individual parts that make up a its useful life. It is deemed to be depreciated component part. replacement cost (DRC) for those assets whose Useful life future economic benefits are not primarily Either: dependent on the asset s ability to generate new (a) the period over which an asset is expected to cash flows, where if deprived of the asset its be available for use by an entity, or future economic benefits would be replaced. Source: DVC 2006, Glossary Note: Items shown * modified to use DA instead of CRC Additional glossary items shown ** What Council Provides A broad range of buildings are retained in Council s Building portfolio. The vast majority are available for public recreational and social gathering opportunities. Council currently owns 184 buildings primarily categorized into Operational, Recreational, Sporting, Community and Amenities Buildings. The portfolio also includes a very small number of Residential properties, which have been a result of compulsory acquisition because of flooding potential or as a result of an Australian Government Housing Initiative. There are a small number of Council owned buildings that aren t included in this plan, as data isn t available. This will be improved with the ongoing development of this plan, and the next AMP. What does it Cost? There are two key indicators of cost to provide this particular service. The life cycle cost being the average cost over the life cycle of the asset and the total maintenance and capital renewal expenditure required to deliver existing service levels in the next 10 years covered by Council s long term financial plan. The life cycle cost to provide the building assets service is estimated at $3,469,000 per annum. Council s planned life cycle expenditure for year 1 of the Infrastructure and Asset Management Plan is $3,058,000, which gives a life cycle sustainability index of.80 The total maintenance and capital renewal expenditure required to provide the building assets service for the next 10 years is estimated at $30,580,000. This is an average of $3,058,000 per annum. The projected maintenance and capital renewal expenditure for year 1 of the Infrastructure and Asset Management Plan is $2,766,510 which gives a 10 year sustainability index of 0.9 Plans for the Future The Building Portfolio will be available to deliver the following strategic objectives:- 1. Strengthening Urban Development and the Environment 2. Improving Family, Community Health. and Safety Services 3. Growing Recreation, Leisure, Culture, Arts and Entertainment 4. Expanding Learning and Education 5. Delivering Robust and Responsible Management. Measuring our Performance Quality Building assets will continue to be maintained in a fit for purpose condition. Defects found or reported that are outside of the service standard will be repaired. Refer to the maintenance response service levels for details of defect prioritisation and response time. Function Building asset attributes will be maintained at a safe level and associated signage and equipment will be provided as needed to ensure public safety. The following key functional objectives will be met: viii 1

8 Introduction Naturally Better Building assets will be managed in an efficient and cost effective manner Facilities will be suitable for their intended use and meet user requirements Annual budgets will be provided for asset renewal at least the equivalent of the annual rate of consumption. Safety All buildings are inspected regularly and for remedial maintenance and structural integrity. The key objective is to be proactive in managing risks and public liability. The Next Steps Actions resulting from this IAM Plan are: Develop long term financial targets cognisant of the funding requirements of this plan Undertake improvements highlighted in table 8.2 of this plan Further work is required to quantify the desired levels of service Council will need to review Tenure Arrangements in particular the current Lease Policy. The City of Tea Tree Gully is an environmentally responsible City, dedicated to advancing a vibrant suburban lifestyle for its residents. Teeming with arts and recreation opportunities, modern urban services and facilities, and an active local economy, it offers a unique lifestyle in metropolitan Adelaide. Nestled at the foot of the Mount Lofty Ranges but just a short 20-minute trip from the centre of Adelaide, the City of Tea Tree Gully is home to a thriving community of over 100,000 residents. 2.1 Background This Infrastructure and Asset Management Plan is to demonstrate responsive management of assets (and services provided from assets), compliance with regulatory requirements, and to communicate funding required to provide the required levels of service. The Infrastructure and Asset Management Plan is to be read with the following associated planning documents: City Master Plan Annual Business Plan Buildings & Projects Annual Operations Budget DDA Access Action Plan 2012 and DDA Council Building Upgrades Priority List Risk Management Plan Permit for Use of Council Facilities by External Parties Lease and Licence Policy. This Infrastructure and Asset Management Plan covers all buildings which Council has responsibility for the management and maintenance, and are listed in Table 2.1 Buildings that are excluded from the register of facilities against which the renewal program is generated are sheds and reserve structures since ongoing renewal of these structures is undertaken through the maintenance program. The following building assets are covered in this Strategic Plan plan as summarised by building category: Table 2.1 Assets covered by this plan Building category No off Replacement value ($m) Operational 11 $15,613,755 Recreational 3 $17,163,535 Community 35 $14,100,827 Sporting 24 $11,462,216 Residential 4 $64,756 Amenities 25 $3,377,198 Storage sheds 82 $487,855 Total 184 $62,851,

9 The following lists of buildings are specifically not included in the asset renewal financial forecasts of this plan since Council does not have adequate data on them currently. The inclusion of these structures will be a key improvement in the next revision of this IAMP. Gallery 1855 Haines Road Modbury Sporting Club Away Teams Change Rooms Hockey Field Spectator Shelter Highbury Hort Depot (Toilet) Golden Grove Boxing Club New Amenities Waterworld Aquatic Centre A separate Asset Management Plan is being developed for this site. Key stakeholders in the preparation and implementation of this Infrastructure and Asset Management Plan are: Community Government Elected members of Council Employees/volunteers Visitors Contractors/suppliers Insurers Lessees End user of Council s services Provides occasional grants to Council and sporting groups Make policy decisions relating to provision of the service Assist in the maintenance & renewal of the assets End user of Council s services Support the provision of human and physical resources Partner with Council to mutually cover risk exposure 2.2 Goals and objectives of Asset Management Council has thirty-five (35) Leases in force at this time with various government agencies and community groups to occupy its buildings. Refer to Appendix E for a schedule of these leases. The Council exists to provide services to its community, some of these services are provided by infrastructure assets. Council has acquired infrastructure assets by purchase, by contract, construction by Council staff and by donation of assets constructed by developers and others to meet increased levels of service. Council s goal in managing infrastructure assets is to meet the required level of service in the most cost effective manner for present and future consumers. The key elements of infrastructure asset management are: Providing a defined level of service and monitoring performance Understanding and meeting the demands of growth through demand management and infrastructure investment Managing risks associated with asset failures Sustainable use of physical resources. This Infrastructure and Asset Management Plan is prepared under the direction of Council s vision, mission, goals and objectives. Council s vision is A vibrant lifestyle opportunity that celebrates innovation and excellence, you place, your home, your future. Relevant Council targets and measures and how these are addressed in this Infrastructure and Asset Management Plan are: Table 2.2 Council Goals and how these are addressed in this Plan Target Measure How target and measure are addressed in IAMP Physical infrastructure To reduce greenhouse gas emissions by 40% by 2020, based on the 2006/07 emissions. Quantity of energy used in all Council buildings annually. Result This figure includes ALL energy, i.e. electricity and gas Includes energy use for all accounts including buildings, public lighting, irrigation Street lighting 12 and 24hr is not included By Increasing energy efficiency in Council buildings by 10% by the next IAMP. Taking a life cycle approach Developing cost-effective management strategies for the long term 4 5

10 Target Measure How target and measure are addressed in IAMP Generate 5% of green energy for use in Council buildings by Rephrase to: Generate 5% of renewable energy for use in Council buildings by 2011 Quantity of green energy generated compared to overall energy used annually as a percentage. Result CTTG generates 1% from renewable energy projects. Currently CTTG generates 43MW (mega watts) through solar and wind power Annual energy use is 4,020MW NB more accurate figures will be provided in future updates of this plan. Note: Green Buildings Guide has been developed to assist in the selection of sustainable options for and refurbishing of buildings and design of new buildings. Targets measures will be determined in future updating of this plan. Recreation participation The total attendance for 2011/12 was 208,429 which is a decrease if 10,071 on the predicted figure of 218,500 Statutory responsibilities Council to comply with the statutory requirements as directed by legislation. Assets and service delivery Participation rate percentage compared to State and National averages contained in Australian Sports Commission Survey. Compliance with legislation Council will be in a better position to satisfy this requirement through enhanced renewal procedures recognised in this plan. Proactive management of building assets will ensure that Council complies with legislation. Target Measure How target and measure are addressed in IAMP Develop a minimum 10 year Asset Management Strategy by the beginning of Update the Asset Management Strategy annually to have expenditure on refurbishment and/or replacement assets meet annual depreciation values by Plan Framework Key elements of the plan are Infrastructure Asset Management Plans and Strategies are reviewed and updated for (transport, buildings and stormwater) approved by Council. Expenditure for refurbishment and/or replacement assets meets annual depreciation estimates. The review and updating of this IAMP satisfies this requirement. This IAMP provides linkages to Councils long term financial plan relating to required funding for building assets. 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. 6 7

11 A road map for preparing an Infrastructure and Asset Management Plan is shown below. Road Map for preparing an Asset Management Plan Source: IIMM Fig 1.5.1, p 1.11 AM PLAN REVIEW AND AUDIT IMPLEMENT IMPROVEMENT STRATEGY INFORMATION MANAGEMENT, and DATA IMPROVEMENT 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 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 FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding DEFINE SCOPE & STRUCTURE OF PLAN 2.4 Core and advanced asset management This Infrastructure and 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 and 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. 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 8 9

12 Levels of service Naturally Better 3.1 Customer research and expectations The most recent customer satisfaction survey (undertaken in March 2012) reported satisfaction levels for the services offered through the facility on a % scale as shown in table 3.1: Table 3.1 Community satisfaction survey levels Performance measure Satisfaction level Very Satisfied satisfied Neither Satisfied nor Dissatisfied Dissatisfied Very Dissatisfied Provision of community 14% 50% 30% 5% 1% centres and community services and programs Recreation centres 13% 60% 23% 2% 1% Responding promptly 39% 34% 15% 6% 7% Library services 48% 39% 11% 2% 0% Council uses this information in developing the Strategic Management Plan and in allocation of resources in the budget. 3.2 Legislative requirements Council has to meet many statutory requirements of both National and State legislation. Table 3.2 Legislative requirements Legislation Requirements Local Government Act 1999 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. Development Act 1993 An Act that regulates development in South Australia in the design and use of land and buildings. Occupational Health and Safety & Welfare Act 1986 Disability Discrimination Act 1992 Residential Tenancies Act 1995 An Act that provides for the Health, Safety and Welfare of employees. An Act that provides for the non discrimination of people based on a disability. An Act that covers residential rental accommodation. Legislation Retail & Commercial Leases Act 1995 Heritage Act 1993 Asbestos Removal Code of Practice Electrical Wiring Code AS3000 Relevant Australian & International Standards Requirements An Act that covers leasing and licensing on commercial property. An Act that conserves places with heritage value. The management and maintenance of asbestos in accordance with the Code. States the management and maintenance of electrical installations. Other relevant standards applicable to buildings. Building Code of Australia 2012 States the minimum requirements for the design, construction and maintenance of buildings. 3.3 Current Levels of Service Service Levels have been classified in two (2) ways consistent with the recommendations of the IPWEA International Infrastructure Management Manual as follows: 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. Technical Levels of Service Supporting the community service levels are operational or technical measures of performance developed to ensure that the minimum community levels of service are met. These technical measures relate to service criteria such as: Service criteria Technical measures may relate to Quality Smoothness of roads Quantity Areas of parks per resident Availability Distance from a dwelling to a sealed road Safety Number of injury accidents 10 11

13 Council s current service levels are detailed in Table 3.3. Table 3.3 Current service levels Key performance measure Level of service Performance measure process Community levels of service Quality Facilities are maintained properly Function Facilities are suitable for intended use Ensure that the building facilities meet user requirements Community Survey Report (2012) Responsiveness (CRMs) Analysis of Customer Service Requests relating to functionality and Customer Survey Report 2012 Usage of facilities Performance target Current performance 70% satisfied 70% very satisfied 90% attended within specified time frame 96% attended within specified time frame 70% 70% based on the average between 4 of Council s Community Centre Average usage of facilities to be 75% occupancy for each building. Recreational: 73.72% Community: 70% (2011/12) Key performance measure Safety Level of service Provide healthy and safe buildings for the public and staff. Buildings containing asbestos are well maintained and free from hazards Building fire safety and security systems well maintained Technical levels of service Responsiveness Adequately respond to requests and complaints within the allowed timeframe. Performance measure process Number of reported incidents Number of reported asbestos related incidents Regular servicing of fire fighting equipment, emergency lighting and security systems Number of requests and complaints completed. CRM system and After Hours Call Out information Performance target < 5 Incidents per annum. Current performance 8 Insurance Claims in the 11/12 financial year 25 OH&S Incidents 11/12 financial year < 5 per annum. 1 (Ladywood Amenities) 100% servicing carried out in accordance with building standards 90% of requests and complaints completed with the allowed timeframe. 100% (2012) 96% completed within target 1/7/11-30/6/12 (CRM Report Sept 2012.) 12 13

14 Key performance measure Compliance Condition Level of service Compliance with the Building Code of Australia and related legislative/ technical standards (structural adequacy, access/ egress, fire fighting, lighting & ventilation. Provide facilities that are in a safe and well maintained condition. Performance measure process All new work and significant refurbishment to comply with current standards. 5 yearly condition and compliance audit. Annual building condition audit rating 1 = Excellent 2= Very Good 3= Good 4= Average 5 = Poor Performance target Development Act approval and compliance with Building Code of Australia. Audit completed for all buildings annually. All Council owned buildings - 2 Current performance Plans & specifications are submitted to achieve Development approval Last audit completed in All condition ratings average is 3 Key performance measure Cost/ Affordability Maintenance and renewals Level of service Operational expenditure costs (annual average lifecycle cost) Income (Cost of entry, hiring costs, leasing of community facilities) Efficiency of planned maintenance and renewal works. Compliance with maintenance contracts and service agreements Performance measure process Introduced works order system. BIS financial system accounts reconfigured Leases and licences signed off Annual fees and charges Review effectiveness against budget, standards and timelines. Performance target All plant labour, overheads & material costs attributed to the building. Min 75% of buildings available for lease are leased. No less than CPI increase. Current performance All plant, labour & material cost booked to work orders for individual buildings 100% of Councils 44 Leases & Licences, and 6 permits. 2012/2013 Council Fees & Charges Register approved. 90% 100% maintenance contracts and service agreements completed. 95% planned maintenance and renewal works completed 2011/

15 Future demand Naturally Better Key performance measure Accessibility Level of service Disability accessible facilities provided Signage and information meets corporate standards 3.4 Desired levels of service Performance measure process Survey/Audit Regular survey of signage Performance target Complete the DDA Action Plan for building upgrades by Completed by 2011/2012 financial year. Current performance Approximately 64% complete 2011/2012. At present, indications of desired levels of service are obtained from various sources including the City of Tea Tree Gully Customer Satisfaction survey, residents feedback to Councillors and staff, service requests and correspondence. Council has yet to quantify desired levels of service. This will be done in future revisions of this Infrastructure and Asset Management Plan. TBA 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 City of Tea Tree Gully population forecasts are based on the estimated residential population data from the 2011 Census. Assumptions based on trends in fertility, death and migration rates have been incorporated in the forecasts. In addition, land development information relevant at the time the forecasts were prepared (early 2012) has also been taken into account. Demand factor trends and impacts on service delivery are summarised in table 4.1. Table 4.1 Demand factors, projections and impact on services Demand factor Present position Projection Impact on services Population 100,979 as at November 2012 Estimated residential population at June ,372 Forecast population is expected June ,372. The City of Tea Tree Gully has limited scope for increase in population with only a couple of small areas in the north of the City available for development. All other growth is expected to be infill development and increasing density around key transport nodes. No decrease in the demand placed on services is expected even though there are small fluctuations in the population

16 Demand factor Present position Projection Impact on services As based on A.B.S 2011 Census TTG Population breakdown as follows:- Age Groups Population 0-4 years 5, years 8, years 8, years 9, years 12, years 21, years 13, years 11, years 7, years 1,619 44% of population were families with children and 52 were without. One parent families 11%. All indoor stadiums are operating at capacity. Increased energy costs through power consumption In 2006, the dominant household type in City of Tea Tree Gully was Couple families with dependents, which accounted for 35.7% of all households. The largest increase is forecast to be in lone person households, which will increase by 1,834 households, comprising 22.0% of all households, compared to 18.9% in In contrast Couple families with dependents are forecast to decrease by 734 households, to comprise 31.2% of all households in 2021, compared to 35.7% in Currently a demand for additional indoor stadiums to cater for a variety of programs Expect to impact on operational costs and our life expectancy of the asset. The age structure % is to vary, the actual numbers in each age groups do not significantly decrease, however there is a significant increase in the number of people in the 65+ age groups. There is unlikely to be a decrease in the demand on services however there is likely to be a change in the programmes involved. Also, our population is aging and our number of young adults is declining, which will bring new challenges. Upgrading indoor venues so they can be used for a variety of sporting purposes. Increased upgrade, renewal and maintenance costs. Demand factor Present position Projection Impact on services Status quo Potential change in DDA requirements and building code Change inevitable results in increased compliance costs Some sporting clubs are presently occupying community & amenity buildings which are not fit to be used for purpose as a clubroom. Expectation by clubs is that Council facilities should be enhanced at Council s cost to convert buildings to clubroom standard. Increased pressure to divert discretionary funds to upgrade current building stock. It also increases renewal and maintenance projected expenditure. The City of Tea Tree Gully s Strategic Plan acknowledges that during the past 40 years, City s population has grown significantly. Demographic and lifestyle changes have resulted in decline of traditional households, consisting of two adults with children and an increase in single, or, two person households, particularly in young adult and older adult groups. Strategic Plan notes that provision for choices in housing, shopping, transport, entertainment, education recreation and supported services will need to be provided. The State Government has set a population target of two million by 2050 in the South Australia s Strategic Plan the forecasts prepared by Forecast id and used in this Report have not included the share of the population growth anticipated by the State Government target. 4.2 Changes in technology Technology changes are forecast to affect the delivery of services covered by this plan in the following areas. Table 4.2 Changes in technology and forecast effect on service delivery Technology change Effect on service delivery City of Tea Tree Gully will monitor and Help reduce operational costs investigate advances in technology, and introduce them as appropriate

17 Technology change Legislative Change can significantly affect the Council s ability to meet minimum levels of service, and may require improvements to infrastructure assets. Changes in environmental standards and the Building Code in particular may affect options for building assets. There is an increased concern regarding water usage and electricity consumption and there is a need to focus on ways to cost effectively improves building assets to minimise power and water usage. Facility booking management system that enables customers to view details of the building such as floor layout and room size. Electricity consumption and the need to focus on ways to cost effectively improve building assets to minimise power and water usage. Investigate changes in building materials and equipment to maximise on opportunities to build more efficiently and in harmony with the environment. Resulting in lower energy consumption for lighting and air-conditioning. 4.3 Demand management plan Effect on service delivery Increased capital costs but reduced operational costs Reduced amount of time for call centre staff to respond and provide clarity for customers without having to visit the site. Reduced costs for electricity and water. Lower operating costs and reduced impact on the environment. 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. General opportunities identified to date for demand management are shown in table 4.3. More detailed examples specific to Council s building classes are discussed following this table. Further opportunities will be developed in future revisions of this Infrastructure and Asset Management Plan. Table 4.3 Demand Management Plan summary Service activity Demand management example Operations Utilise office space more efficiently Regulations Building Code requirements need to be met Incentives Rationalise assets by providing incentives for amalgamation of sporting clubs and other groups to better utilize facilities. Education Education on energy management and disposal of building waste materials. Demand substitution Minimising the need for buildings, which have only one activity ie multi-purpose. Operational buildings: The current Civic Centre has room for future growth either by extending the building to the east or west. A stand alone commercial building could be developed on the western side of the Civic Centre if required. The Library, which is located on the lower ground floor of the Civic Centre complex, was developed 10 years ago and is capable of accommodating foreseeable increase in demand. Currently a Toy Library has been accommodated within the existing Library. The Council s St Agnes Works Depot requires significant investment due to the age of the facility. Its functionality and current form needs review in line with predicted future operational requirements for Storage and Workshops together with improvements for Environmental and Occupational Health and Safety Targets. Currently formal consideration is being investigated. Recreational buildings Burragah Recreation centre has only one stadium and caters for a wide range of indoor sports. Current demand warrants the future construction of a replacement multipurpose 2-3-court stadium. It is not expected that Turramurra or Golden Grove Recreation Centres will change significantly in the foreseeable future. Turramurra will however, require refurbishment due to its age. Community buildings: Our Neighbourhood Development Program comprises the operation of four Community Centres and the co-ordination of neighbourhood development activities in the areas of greatest disadvantage across the City of Tea Tree Gully

18 Lifecycle management plan Naturally Better Sporting buildings The majority of buildings accommodating sporting clubs are leased and the clubs are required to maintain them in accordance with their lease. However, a number of sporting clubs are currently experiencing financial difficulties and Council will need to decide future tenure agreements. Modbury Soccer Club and Modbury Sporting Club are subject to upgrade to age. The level of subsidy provided by Council and the projected refurbishment costs requires review. Residential buildings Council currently owns 4 residential buildings. Council currently own 3 units on Wright Road which are used for Youth Housing. The long term ownership of these properties should be investigated. 91 Valley road and Willison s Farm House (lot 50 Golden Grove Rd, Golden Grove) has been demolished due to safety issues, highlighted in the 2008 plan and engineer s report. Amenities Hargraves Amenities building has been demolished due to structural issues. Ladywood Reserve Amenities Building is currently used by local sporting groups that are demanding improvements. This has ramifications for other Council facilities at the site and requires formal consideration. 4.4 New assets from growth The new assets required to meet growth will be acquired from land developments. The Crouch Road Land Division The Settlement currently under construction does not include any community buildings. The lifecycle management plan details how Council plans to manage and operate the assets at the agreed levels of service (defined in section 3) while optimising life cycle costs. 5.1 Background data Physical parameters The assets covered by this Infrastructure and Asset Management Plan are shown below and are detailed in Appendix B Inventory of Council buildings. Asset category Inventory details Operational Council has 11 Operational buildings located on 9 sites throughout the Council area. Typical Operational buildings are the Civic Centre and Works Depot and Horticultural Sub-Depots. The Civic Centre is 18 years old and is in good condition. The Works Depot is over 40 years old and requires upgrading to improve its functionality. The SES has relocate from the former historic Council Chambers on Haines Road to, portion of Council s St. Agnes Works Depot. Recreation Council has three (3) Recreation Centres. The Golden Grove Recreation Centre was built in 1993 and is in very good condition and is well maintained. The Turramurra Recreation Centre was built in 1978 and contains a double court stadium and 4 squash court stadiums and is in good condition. Since the last plan in 2008 upgrading to the changerooms and recoating of the sports flooring( in the sports stadium) has been completed. Burragah Recreation Centre was built in 1978 and is in reasonable condition but has only a single court stadium. Council will need to decide in the future if this facility is to be replaced with a double court stadium to meet current and future demand. This plan does not cover Waterworld Aquatic Centre