INFRASTRUCTURE AND ASSET MANAGEMENT PLAN

Transcription

1 Campbelltown City Council BUILDING ASSETS INFRASTRUCTURE AND ASSET MANAGEMENT PLAN May 2012

2 Document Control Document ID: TRIM Ref: 11/66147 Rev No Date Revision Details Author Reviewer Approver 1 11/06/2008 First Draft BL AW 24/06/2008 Final Draft BL AW Council 2 12/12/2011 First Draft BL AW 30/05/2012 Second Draft BL AW 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.

3 TABLE OF CONTENTS ABBREVIATIONS... i GLOSSARY... ii 1. EXECUTIVE SUMMARY... 1 What Council Provides... 1 What does it Cost?... 1 Plans for the Future... 1 Measuring our Performance... 1 The Next Steps INTRODUCTION Background Goals and Objectives of Asset Management Plan Framework Core and Advanced Asset Management LEVELS OF SERVICE Customer Research and Expectations Legislative Requirements Current Levels of Service Desired Levels of Service FUTURE DEMAND Demand Forecast Changes in Technology Demand Management Plan New Assets from Growth LIFECYCLE MANAGEMENT PLAN Background Data Physical parameters Asset capacity and performance Asset condition Asset valuations Risk Management Plan Routine Maintenance Plan Maintenance plan Standards and specifications Summary of future maintenance expenditures Renewal/Replacement Plan Renewal plan Renewal standards Summary of future renewal expenditure Creation/Acquisition/Upgrade Plan Selection criteria Standards and specifications Summary of future upgrade/new assets expenditure Disposal Plan FINANCIAL SUMMARY Financial Statements and Projections Sustainability of service delivery Funding Strategy Valuation Forecasts Key Assumptions made in Financial Forecasts ASSET MANAGEMENT PRACTICES Accounting/Financial Systems Asset Management Systems Information Flow Requirements and Processes Standards and Guidelines... 46

4 8. PLAN IMPROVEMENT AND MONITORING Performance Measures Improvement Plan Monitoring and Review Procedures REFERENCES APPENDICES Appendix A Maintenance Response Levels of Service... 1 Appendix B Projected 20 year Capital Renewal Works Program... 1 Appendix C Planned Upgrade/Exp/New 20 year Capital Works Program... 1

5 - i - ABBREVIATIONS 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 systems 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

6 - ii - GLOSSARY Annual service cost (ASC) An estimate of the cost that would be tendered, per annum, if tenders were called for the supply of a service to a performance specification for a fixed term. The Annual Service Cost includes operating, maintenance, depreciation, finance, opportunity and disposal costs, less revenue. Asset class Grouping of assets of a similar nature and use in an entity's operations (AASB ). Asset condition assessment The process of continuous or periodic inspection, assessment, measurement and interpretation of the resultant data to indicate the condition of a specific asset so as to determine the need for some preventative or remedial action. Asset management The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner. Assets An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity (CF.49). Property, plant and equipment including infrastructure and other assets (such as furniture and fittings) with benefits expected to last more than 12 months. Average annual asset consumption (AAAC)* The amount of a local government s asset base consumed during a year. This may be calculated by dividing the Depreciable Amount (DA) by the Useful Life and totalled for each and every asset OR by dividing the Fair Value (Depreciated Replacement Cost) by the Remaining Life and totalled for each and every asset in an asset category or class. Brownfield asset values** Asset (re)valuation values based on the cost to replace the asset including demolition and restoration costs. Capital expansion expenditure Expenditure that extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. It is discretional expenditure, which increases future operating, and maintenance costs, because it increases council s asset base, but may be associated with additional revenue from the new user group, 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 and/or upgrade expenditures, the total project cost needs to be allocated accordingly. Capital funding Funding to pay for capital expenditure. Capital grants Monies received generally tied to the specific projects for which they are granted, which are often upgrade and/or expansion or new investment proposals. Capital investment expenditure See capital expenditure definition Capital new expenditure Expenditure which creates a new asset providing a new service to the community that did not exist beforehand. As it increases service potential it may impact revenue and will increase future operating and maintenance expenditure. Capital renewal expenditure Expenditure on an existing asset, which returns the service potential or the life of the asset up to that which it had originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time, 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, expansion and/or upgrade expenditures, the total project cost needs to be allocated accordingly. Capital upgrade expenditure Expenditure, which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the council s asset base, eg. widening the

7 - ii - 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 (AASB 116.6). Class of assets See asset class definition. Component An individual part of an asset which contributes to the composition of the whole and can be separated from or attached to an asset or a system. Cost of an asset The amount of cash or cash equivalents paid or the fair value of the consideration given to acquire an asset at the time of its acquisition or construction, plus any costs necessary to place the asset into service. This includes one-off design and project management costs. Current replacement cost (CRC) The cost the entity would incur to acquire the asset on the reporting date. The cost is measured by reference to the lowest cost at which the gross future economic benefits could be obtained in the normal course of business or the minimum it would cost, to replace the existing asset with a technologically modern equivalent new asset (not a second hand one) with the same economic benefits (gross service potential) allowing for any differences in the quantity and quality of output and in operating costs. Current replacement cost As New (CRC) The current cost of replacing the original service potential of an existing asset, with a similar modern equivalent asset, i.e. the total cost of replacing an existing asset with an as NEW or similar asset expressed in current dollar values. Cyclic Maintenance** Replacement of higher value components/subcomponents of assets that is undertaken on a regular cycle including repainting, building roof replacement, cycle, replacement of air conditioning equipment, etc. This work generally falls below the capital/ maintenance threshold and needs to be identified in a specific maintenance budget allocation. Depreciable amount The cost of an asset, or other amount substituted for its cost, less its residual value (AASB 116.6) Depreciated replacement cost (DRC) The current replacement cost (CRC) of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset Depreciation / amortisation The systematic allocation of the depreciable amount (service potential) of an asset over its useful life (AASB 116.6). 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 (AASB 116.6). Greenfield asset values ** Asset (re)valuation values based on the cost to initially acquire the asset. Heritage asset An asset with historic, artistic, scientific, technological, geographical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture and this purpose is central to the objectives of the entity holding it. Impairment Loss The amount by which the carrying amount of an asset exceeds its recoverable amount (AASB 116.6). 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, eg. roads, drainage, footpaths and cycleways. These are typically large, interconnected networks or portfolios of composite assets The components of these assets may be separately maintained, renewed or replaced individually so that the required level and standard of service from the network of assets is continuously sustained. Generally the components and hence the assets have long lives. They are fixed in place and are often have no market value. Investment property Property held to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business (AASB 140.5)

8 - iii - Level of service The defined service quality for a particular service against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental, acceptability and cost). Life Cycle Cost ** The life cycle cost (LCC) is average cost to provide the service over the longest asset life cycle. It comprises annual maintenance and asset consumption expense, represented by depreciation expense. The Life Cycle Cost does not indicate the funds required to provide the service in a particular year. Life Cycle Expenditure ** The Life Cycle Expenditure (LCE) is the actual or planned annual maintenance and capital renewal expenditure incurred in providing the service in a particular year. Life Cycle Expenditure may be compared to Life Cycle Expenditure to give an initial indicator of life cycle sustainability. Loans / borrowings Loans result in funds being received which are then repaid over a period of time with interest (an additional cost). Their primary benefit is in spreading the burden of capital expenditure over time. Although loans enable works to be completed sooner, they are only ultimately cost effective where the capital works funded (generally renewals) result in operating and maintenance cost savings, which are greater than the cost of the loan (interest and charges). Maintenance and renewal gap Difference between estimated budgets and projected expenditures for maintenance and renewal of assets, totalled over a defined time (eg 5, 10 and 15 years). Maintenance and renewal sustainability index Ratio of estimated budget to projected expenditure for maintenance and renewal of assets over a defined time (eg 5, 10 and 15 years). Maintenance expenditure Recurrent expenditure, which is periodically or regularly required as part of the anticipated schedule of works required to ensure that the asset achieves its useful life and provides the required level of service. It is expenditure, which was anticipated in determining the asset s useful life. Materiality An item is material is its omission or misstatement could influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. A structure similar to an existing structure and having the equivalent productive capacity, which could be built using modern materials, techniques and design. Replacement cost is the basis used to estimate the cost of constructing a modern equivalent asset. Non-revenue generating investments Investments for the provision of goods and services to sustain or improve services to the community that are not expected to generate any savings or revenue to the Council, eg. parks and playgrounds, footpaths, roads and bridges, libraries, etc. Operating expenditure Recurrent expenditure, which is continuously required excluding maintenance and 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 may be used for AAAC. Rate of annual asset renewal* A measure of the rate at which assets are being renewed per annum expressed as a percentage of depreciable amount (capital renewal expenditure/da). Rate of annual asset upgrade* A measure of the rate at which assets are being upgraded and expanded per annum expressed as a percentage of depreciable amount (capital upgrade/expansion expenditure/da). Reactive maintenance Unplanned repair work that carried out in response to service requests and management/supervisory directions. Modern equivalent asset.

9 - iv - Recoverable amount The higher of an asset's fair value less costs to sell and its value in use (AASB 116.6). Recurrent expenditure Relatively small (immaterial) expenditure or that which has benefits expected to last less than 12 months. Recurrent expenditure includes operating and maintenance expenditure. Recurrent funding Funding to pay for recurrent expenditure. Rehabilitation See capital renewal expenditure definition above. Remaining life The time remaining until an asset ceases to provide the required service level or economic usefulness. Age plus remaining life is economic life. Renewal See capital renewal expenditure definition above. Residual value The estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condidition expected at the end of it s useful life (ASASB 116.6). 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. that is still available for use in providing services (DRC/DA). Strategic Management Plan (SA)** Documents Council objectives for a specified period (3-5 yrs), the principle activities to achieve the objectives, the means by which that will be carried out, estimated income and expenditure, measures to assess performance and how rating policy relates to the Council s objectives and activities. Sub-component Smaller individual parts that make up a component part. Useful life Either: (a) the period over which an asset is expected to be available for use by an entity, or (b) the number of production or similar units expected to be obtained from the asset by the entity. It is estimated or expected time between placing the asset into service and removing it from service, or the estimated period of time over which the future economic benefits embodied in a depreciable asset, are expected to be consumed by the council. It is the same as the economic life. Value in Use The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. It is deemed to be depreciated replacement cost (DRC) for those assets whose future economic benefits are not primarily dependent on the asset's ability to generate new cash flows, where if deprived of the asset its future economic benefits would be replaced. Source: DVC 2006, Glossary Note: Items shown * modified to use DA instead of CRC Additional glossary items shown ** Section or segment A self-contained part or piece of an infrastructure asset. Service potential The capacity to provide goods and services in accordance with the entity's objectives, whether those objectives are the generation of net cash inflows or the provision of goods and services of a particular volume and quantity to the beneficiaries thereof. Service potential remaining* A measure of the remaining life of assets expressed as a percentage of economic life. It is also a measure of the percentage of the asset s potential to provide services

10 EXECUTIVE SUMMARY What Council Provides Council provides a building assets network in partnership with the community to enable equitable and affordable services to the community and the facility users. Council currently has 115 building assets broken down into the following building asset categories: Asset Category Quantity Commercial 14 Community Facilities 9 Children s Facilities 1 Depot 5 Library 2 Offices 3 Public Conveniences 23 Sheds 30 Sports & Recreation Facilities 27 Total 114 As at June What does it Cost? There are two key indicators of cost to provide the building assets 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 asset service is estimated at $1,403,000 per annum. Council s planned life cycle expenditure for year 1 of the infrastructure and asset management plan is $7,395,000 which gives a life cycle sustainability index of The total maintenance and capital renewal expenditure required to provide the building asset service in the next 10 years is estimated at $17,912,000. This is an average of $1,791,000 per annum. Council s maintenance and capital renewal expenditure for year 1 of the infrastructure and asset management plan of $7,395,000 giving a 10 year sustainability index of Plans for the Future Council plans to operate and maintain the building asset network to achieve the following strategic objectives: 1. Ensure the building network is kept and maintained to a safe and functional standard as set out in this infrastructure and asset management plan. 2. Continuous Improvement of Councils Infrastructure Asset Management Plan for Building Assets. 3. Continuous Review of Councils Building Assets. Measuring our Performance Quality Building assets are maintained to ensure they are kept and maintained to a functional standard. Defects found or reported are repaired when budgets allow but safety is always ensured. Function Our intent is that an appropriate building network is maintained to ensure that we effectively manage our City's assets in an affordable and equitable way; ensuring the needs of the community are met. Building assets are maintained to ensure public safety. Council needs to ensure that infrastructure facilities and urban design meet the needs of the community now and into the future. Councils objectives for buildings are: Effective management of Council assets. Safe and reliable access. Buildings that are fit for purpose. Safety Council inspects all building assets regularly and prioritise and repair defects in accordance with our inspection schedule to ensure they are safe. The Next Steps Maintain yearly Facilities Inspection Maintain 5 Yearly Property Revaluation Maintain Yearly Desk Top Revaluation Community Consultation on Levels of Service Recognition of maintenance backlog Disposal of non economically viable assets

11 - 2 - Sale of non economically viable assets to finance positive cash flow investments. Maintain annual inspections of all council buildings by a council employee. Use existing CRM system to record building maintenance requests. Maintain use of the asset proforma to ensure all works are recorded and follow the GIS / Asset Management Process Business Flowchart (TRIM ref: 09/35276)

12 INTRODUCTION The Campbelltown City Council is responsible for an area covering approximately square kilometres. The Council is bounded on the northern side by the River Torrens, and the foothills on the eastern side, with Magill Road and Glynburn Road on its southern and western boundaries. This area incorporates the suburbs of Athelstone, Campbelltown, Tranmere, Hectorville, Paradise, Newton, most of Rostrevor, and parts of Magill. The Council area has three main creeks, Third, Fourth and Fifth Creek. The River Torrens is the boundary between this Council and some surrounding Councils. The Council area is predominantly residential with pockets of light industry in Magill and Newton. The District Council of Campbelltown held its first meeting on 02 March The name "Campbelltown" was decided upon at a meeting of local residents held at the Glynde Inn on 9 December "Campbelltown" was derived from Charles James Fox Campbell who was born in 1811 at Kingsborough on the Isle of Skye. The former District became a Town with a Municipal Office on 1 January 1946 and was proclaimed a City on 6 May 1960 having reached a population of more than 15,000. Today, the population is 49,716 (Current Population as at 30 June 2010). Campbelltown City is a place which is identified by its unique heritage and cultural diversity. Quality of life in Campbelltown has a strong emphasis and the Council and community are proud of their large and varied natural environment and open space areas. The Council is well positioned to create an attractive climate for business, industry and the wider community. The Council comprises the Mayor and two Councillors from each of the five Wards. 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: Campbelltown City Council Strategic Plan Campbelltown City Council Strategic Asset Management Plan and Knowledge Management Strategy Campbelltown City Council Asset Management Policy Campbelltown City Council Asset Capitalisation Policy Campbelltown City Council Asset Depreciation Policy Unit Rate review document Useful life review document

13 - 4 - This infrastructure and asset management plan covers the following infrastructure assets: Table 2.1. Assets covered by this Plan Asset category Dimension Replacement Value ($) Commercial 14 $4,888,778 Community Facilities 9 $10,329,831 Children's Facilities 1 $517,032 Depot 5 $4,947,740 Library 2 $6,381,800 Offices 3 $46,130 Public Conveniences 23 $1,557,494 Sheds 30 $700,232 Sports & Recreation Facilities 27 $23,250,509 TOTAL 114 $52,619,546 As at 30 June 2011 Key stakeholders in the preparation and implementation of this infrastructure and asset management plan are: Council City Operations Department Undertaking programmed capital and reactive maintenance works. Council City Assets Department Council Finance Department Council Community Services Department Council Urban Leisure Council Elected Members Programming of maintenance and capital works, preparation and revision of asset management plans. Allocation of required funds for the implementation of this asset management plan. Provision of services to the community. Recreation and Open Space Planning. Approval of the asset management plan. 2.2 Goals and Objectives of Asset Management The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets by purchase, by contract, construction by council staff and by donation of assets constructed by developers and others to meet increased levels of service. Council s goal in managing infrastructure assets is to meet the required level of service in the most cost effective manner for present and future consumers. The key elements of infrastructure asset management are:

14 - 5 - Taking a life cycle approach, Developing cost-effective management strategies for the long term, Providing a defined level of service and monitoring performance, Understanding and meeting the demands of growth through demand management and infrastructure investment, Managing risks associated with asset failures, Sustainable use of physical resources, Continuous improvement in asset management practices. 1 This infrastructure and asset management plan is prepared under the direction of Council s vision, mission, goals and objectives. Council s vision is: Council s mission is: Campbelltown provides a quality lifestyle for its people. At Campbelltown we will place a high value on living together, respecting each others views and building strong partnerships to support the needs of the community. Our vision statement for Councils assets is: To effectively manage our City's assets in an affordable and equitable way; ensuring the long term needs of the community are met. Table 2.2 identifies the relevant Council goals and objectives and how these are addressed in this infrastructure and asset management plan: Table 2.2. Council Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in IAMP Goal 1 Quality Living A quality lifestyle that meets the changing needs of the community. Goal 2 Leadership A Council with strong leadership and excellent service delivery. Goal 1.3 City infrastructure that provides a range of welcoming, attractive and safe facilities that encourage social interaction and an active community. Goal 2.1 Open, transparent and accountable decision making. Goal 2.3 A collaborative and flexible approach that enhances, supports and continuously Council will provide a building network that complies to Australian Standards and provides a safe occupancy. Conducting Community Consultation on the Infrastructure Asset Management Plans (IAMPs) and making the documentation available to the community through Councils website. Conducting Community Consultation on the Infrastructure Asset Management Plans (IAMPs). 1 IIMM 2006 Sec 1.1.3, p 1.3

15 - 6 - improves service delivery. Goal 3 City Planning Planning that achieves a balance between infrastructure, development and community needs Goal 2.4 Effective interaction between Council and the community. Goal 2.5 Quality corporate and financial governance for the City. Goal 3.2 Effective Infrastructure and Asset Management that allows for growth. Conducting Community Consultation on the Infrastructure Asset Management Plans (IAMPs). The continual revision and upgrading of the IAMPs to meet industry best practice and legislated timeframes. The continual revision and upgrading of the IAMPs to meet industry best practice and legislated timeframes. Consultation with field staff to accurately reflect maintenance and capital renewal on site. Acknowledgement of Local and State Government documentation on growth forecasts and demographic changes. 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 and asset management plan is shown below.

16 - 7 - Road Map for preparing an Asset Management Plan Source: IIMM Fig 1.5.1, p 1.11 CORPORATE PLANNING Confirm strategic objectives and establish AM policies, strategies & goals. Define responsibilities & ownership. Decide core or advanced AM Pan. Gain organisation commitment. REVIEW/COLLATE ASSET INFORMATION Existing information sources Identify & describe assets. Data collection Condition assessments Performance monitoring Valuation Data AM PLAN REVIEW AND AUDIT INFORMATION MANAGEMENT, and DATA IMPROVEMENT ESTABLISH LEVELS OF SERVICE Establish strategic linkages Define & adopt statements Establish measures & targets Consultation LIFECYCLE MANAGEMENT STRATEGIES Develop lifecycle strategies Describe service delivery strategy Risk management strategies Demand forecasting and management Optimised decision making (renewals, new works, disposals) Optimise maintenance strategies DEFINE SCOPE & STRUCTURE OF PLAN IMPLEMENT IMPROVEMENT STRATEGY FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding IMPROVEMENT PLAN Assess current/desired practices Develop improvement plan IS THE PLAN AFFORDABLE? ITERATION Reconsider service statements Options for funding Consult with Council Consult with Community ANNUAL PLAN / BUSINESS PLAN

17 Core and Advanced Asset Management This infrastructure and asset management plan is moving towards an advanced asset management plan in accordance with the International Infrastructure Management Manual. It is prepared to meet legislative and organisational requirements for sustainable service delivery, long term financial planning and reporting. This revision of the building asset management plan uses a bottom up approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels.

18 LEVELS OF SERVICE Levels of service dictate the targeted asset performance in relation to customer expectations, and associated legislative and technical provisions. They also provide achievable milestones for the continuous upgrading of the levels of service currently practised. Understanding the level of service required of an asset is vital for its lifecycle management as this largely determines an asset s development, operation, maintenance, replacement and disposal. Levels of service are pivotal in asset management as they have a direct financial impact due to their importance in both operational and risk-based prioritisation. When establishing Levels of Service they should be based on: Stakeholder Expectations information gained from stakeholders on expected quality and price of services. Strategic and Corporate Goals provides guidance for the scope of current and future services offered; the manner of the services delivery and defines the specific levels of service, which Council wishes to achieve. Legislative Requirements legislation, regulations, environmental standards and industry and Australian Standards that impact on the way these building assets are managed. 3.1 Customer Research and Expectations Council regularly seeks the input of its community in respect to the renewal, replacement or upgrade of infrastructure and assets. A sample of community engagement activities conducted each year by Council includes: Comprehensive Annual Business Plan and Budget community engagement (survey and public meeting) including questions specifically designed around projects that require new initiative, capital-new or capital-renewal and replacement funds. Asset based projects are routinely singled out for more comprehensive community response. Community Satisfaction survey (commenced 2011) that includes perception based questions that focus on Council asset groups (Council's online community panel participates in the survey and provided a 53% response in 2011). Comprehensive community engagement for individual infrastructure and asset projects as required (eg library redevelopment in 2009, depot redevelopment in 2010, Campbelltown Memorial Oval hard court installation 2011, dog park concept plan 2011). Hard copy based information sheets and surveys (as needed) are conducted for the installation of new footpaths. Comprehensive approach is made to informing the local Community where major building works will be undertaken. 3.2 Legislative Requirements Council has to meet many legislative requirements including Australian and State legislation and State regulations. These include: Table 3.2. Legislative Requirements Legislation Local Government Act 1999 Development Act 1993 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. 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

19 construction of buildings; to make provision for the maintenance and conservation of land and buildings where appropriate. Retail and Commercial Leases Act 1995 Public and Environmental Health Act 1987 Heritage Act 1993 Building Code of Australia Disability Discrimination Act 1992 Australian Accounting Standards Occupational Health, Safety and Welfare Act 1986 & Regulations 2010 Land & Business (Sale & Conveyancing) Act 1994 Community Titles Act 1996 Liquor Licensing Act 1997 Food Act 2001 Real Property Act 1886 Law of Property Act 1936 Landlord and Tenant Act 1936 Strata Titles Act 1988 Residential tenancies Act 1997 Crown Lands Act 1928 An Act regulating the leasing of certain retail shops; and for other purposes. An Act dealing with public and environmental health. An Act to conserve places of heritage value. Sets the standard requirements for works on buildings. The objectives of this act are to eliminate, as far as possible, discrimination against persons on the grounds of disability. It sets the standard for accessibility. Set out the financial reporting standards relating to, inter alia, the (re)valuation and depreciation of infrastructure assets. Sets out roles & responsibilities to secure health, safety and welfare of persons at work. An Act to regulate the sale of land and businesses and the preparation of conveyancing instruments; and for other purposes. An Act to provide for the division of land into lots and common property; to provide for the administration of the land by the owners of the lots; and for other purposes. An Act to regulate the sale, supply and consumption of liquor; and for other purposes. An Act to provide for the safety and suitability of food; and for other purposes. An Act to consolidate and amend the Real Property Act 1861, the Real Property Act Amendment Act 1878 and the Rights of Way Act 1881, and for other purposes. An Act to consolidate and amend certain Acts relating to property and conveyancing. An Act to regulate the relationship of landlord and tenant under certain commercial tenancy agreements An Act to provide for the division of land by strata plan; and for other purposes. An Act to regulate the relationship of landlord and tenant under residential tenancy agreements; and for other purposes. An Act relating to Crown lands.

20 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. These technical measures relate to service criteria such as: Service Criteria Quality Availability Safety Technical measures may relate to Property Asset Inspection Audit Distance from a dwelling to a Property Asset Number of injury accidents Council s current service levels are detailed in Table 3.3.

21 Table 3.3. Current Service Levels Building Technical Levels of Service Responsible Officers Property Officer City Maintenance Coordinator Key Performance Measure Level of Service Performance Measure process Performance Target Current Performance Condition Buildings are to be kept and maintained to a functional standard within budgets. Council operated buildings are regularly maintained and cleaned on a scheduled basis. Buildings inspected annually from October (2010) Leased buildings general maintenance is the responsibility of the leaseholder. As per lease agreement Compliance to lease agreement Apply appropriate useful life Buildings are inspected annually. Useful life review Function Buildings are fit for purpose. Independent assessment by consultant. Cost Effectiveness Safety Additional Comments Budget reflects maintenance costs and level of Service Annual review of useful life in accordance with accounting standards Comprehensive useful life review in conjunction with condition audit Consultant building suitability and asset condition standard, including compliance 20% of Council Operated buildings completed in 2010 No physical inspections completed on Council Leased buildings (reliant on lessee feedback) Budget allocated but is not confirmed that it meets Level of Service. Reviewed annually Reviewed in conjunction with condition audit Data received in 2009, some work done on major council buildings - costs factored into LTFP 5 building currently being audited for DDA compliance Buildings meet community expectations. Minimal complaints. CRMs completed as per proclaim timeframes As per proclaim KPI reports Council operated buildings usage optimised. 90% usage Minimise life cycle expenditure to maximise asset life Council attempts to provide a facility that Is clean and safe. Councils responds to feedback received on maintenance issues Minimise life cycle expenditure to maximise asset life Contract adherence Buildings inspected annually from October (2010) Review scheduled building maintenance contract Council Operated buildings are clean and safe. 20% of Council operated buildings completed in 2010 Budget does not reflect required expenditure Budgets maximise asset life Maintenance contract to be renewed in 2012 Buildings inspected annually from October (2010) 20% of Council operated buildings completed in 2010 User feedback

22 Building Financial Levels of Service Responsible Officers Key Performance Measure Maintenance Renewal Property Officer City Maintenance Coordinator Performance Measure process Current Performance Level of Service Performance Target Buildings are to be kept and maintained to a functional standard Building maintenance within budgets. allocation $631, $631, Buildings are fit for purpose. Cleaning $241, $241, PMS program $7, $7, Spending in accordance with Asset Management Plan Budget $879, $879, Spending in Spending in accordance accordance with with Asset Management Asset Management Plan Plan Nil Required Asset Condition Standard The required condition rating is the considered level of rating required to meet the service level this facility requires. Below are some examples of the levels of condition standard required for the facility: Performance Standard Condition Standard Rating Example High Standard Highly sensitive A high standard applicable to key assets with major council significance, key heritage assets, and assets that must meet very rigorous standards. S1 Council Chambers functions with critical results or high profile public. Asset to be in the best possible condition. Only minimal deterioration will be tolerated. Arts Centres Better Standard Business operations A standard above the typical, applicable to assets very important to council operations, including significant infrastructure and heritage assets, and assets needing to meet special requirements. S2 Heritage Assets Health Centres requiring good public presentation and high quality working. Asset to be in good condition operationally and aesthetically. Kitchen Facilities Typical Standard Asset to be in reasonable condition, fully meeting operational requirements. S3 Leisure Centres Functionally focussed A typical standard that is the usual level expected by Club Room

23 asset at utility level (eg lecture theatres, laboratories, libraries, workshops). Low Standard the community for non-critical assets. It is the lowest possible category for important infrastructure and heritage assets. It is applicable to most buildings supporting council service delivery. Condition needs to meet minimum operational requirements only. General Offices Functions are ancillary only, with no critical operational role or asset has limited life. Basic Standard Functions have ceased and asset is dormant pending disposal, demolition, etc. The lowest standard for non-critical assets where purely functional performance is accepted to the public. Condition can be allowed to deteriorate and marginally maintained to meet statutory requirements only. This is the lowest condition standard, and applies to assets that can reasonably be expected to operate in very basic conditions/ S4 S5 Works Depot Workshops Sheds The condition standard is kept in mind when undertaking the assessment and is used as a guide when identifying work requirements. For example, the internal repainting of a building with an S1 standard may be more frequent than a building with an S4 standard, or the next event for that works may occur in 5 years for an S5 standard building compared to within the next 2 years for an S2 standard building.

24 Building Suitability The building suitability is an assessment of that building s suitability for purpose, which is a subjective high-level desktop assessment provided by the City of Campbelltown and inserted into this report for information purposes. The rating should be used to assist in assessing overall facility use and in any future facility management processes.. Suitability Score Rating Rating Description In excess of current user requirements Generous disposition on the site 5 Excellent Excellent support facilities, eg parking Probability of risk to risk of health, safety or building negligible Compliance with codes and regulations. Meets current user requirements Good disposition on the site 4 Good Excellent support facilities, eg parking Slight probability of risk to risk of health, safety or building Compliance with codes and regulations. Just meets current user requirements Reasonable disposition on the site 3 Adequate Adequate support facilities, eg parking Some risk to risk of health, safety or building May be minor non-compliance with codes and regulations, but minimal costs for upgrade. Does not meet current user requirements 2 Poor Poor disposition on the site Poor support facilities, eg parking

25 High probability of risk to risk of health, safety or building Minor non-compliance with codes and regulations requiring upgrade. Does not meet current user requirements Poor disposition on the site 1 Unsuitable No support facilities, eg parking Very high probability of risk to health, safety or building. Major non-compliance with codes and regulations requiring major costs. A high score indicates that the building appears suitable for current use, (and may even exceed its current requirements), and a low score indicates that the space does not appear to be suitable for current use and requires attention. By default, buildings that are considered to be adequate will be given a score of Desired Levels of Service At present, indications of community levels of service are obtained from resident feedback to Councillors and staff, Councils Customer request System (CRM), written correspondence and technical expertise. Council has yet to quantify desired levels of service. Service levels are scheduled to be determined through Elected Member workshops in 2012/2013.

26 FUTURE DEMAND 4.1 Demand Forecast Factors affecting demand include population change, changes in demographics, seasonal factors, vehicle ownership, consumer preferences and expectations, economic factors, agricultural practices, environmental awareness, etc. Demand factor trends and impacts on service delivery are summarised in Table 4.1. Table 4.1. Demand Factors, Projections and Impact on Services Demand factor Present position Projection Impact on services Population 49,716 (Current Population as at 30 June 2010) Minimal increase in overall population. Increase in the expectation of Council buildings being available for hire. Demographics Minimal increase in overall population but an increase in the number of aged persons as a percentage (Refer to additional detail at end of section 4.1 below for ageing predictions from Eastern Region Alliance Regional Ageing Strategy). Increase in the expectation of Council buildings being available for hire. Source: Australian Bureau of Statistics, Census of Population and Housing, Note: ERP figures displayed here include finalised figures for 2001 to 2006, revised estimates for 2007, 2008 and 2009, in addition to newly issued data for Population estimates for the latest year are preliminary and still subject to change. ERP estimates for 2010 were made available in March 2011, with further revision expected in April Population estimates between 2007 and 2011 are still subject to revision and will not be considered final until after the 2011 Census.

27 Source: Australian Bureau of Statistics, Cat. No Regional Population Growth, Australia, 2009 'Preliminary' refers to preliminary figures that may be subject to revision. All other figures are final.

28 Current trends indicate that there will be a minimal impact on services in the short term. However, over the next years various trend changes could potentially impact on the demand for building infrastructure. It is suggested that Council review the National Census Data at each distribution in order to formulate strategies to modify particular demands with the aim of maintaining service levels but reducing / minimising associated costs where possible.

29 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 Consultant Building Condition Audit. Effect on Service Delivery Improved knowledge on the condition of our assets will assist in better facilities management and financial management of funds for Capital Works and Maintenance. 4.3 Demand Management Plan Demand for new services will be managed through a combination of managing existing assets, upgrading existing assets and the provision of new assets to meet new growth. Demand management practices include non-asset solutions, insuring against risks and managing failures. As Council is well-established and significantly developed, there is limited land available for new land divisions. The majority of new development is infill development. Single blocks are subdivided into two or three new allotments. However, there are a number of new aged-care developments comprised of a range of housing from retirement villages, hostels and nursing homes. It is assumed that current migration patterns will continue into the future. The demand for significant new local government building infrastructure is unlikely for the foreseeable future. However there will be an ongoing demand for renewing the existing infrastructure as these assets approach the end of their useful life.. Consideration of the 30-Year Plan for Greater Adelaide and its potential impact on the City of Campbelltown must also be taken into account. 4.4 New Assets from Growth Development growth within the City is slowing as opportunities for new developments reduce. Campbelltown contains limited areas suitable for sub-division, the creation of new public roads and associated infrastructure. Future development is likely to be limited to infill housing on generally smaller allotments. However, it is expected that Council will receive donated assets through infill land division. Acquiring developer donated assets will commit council to fund ongoing operations and maintenance costs. These future costs are identified and considered in developing forecasts of future operating and maintenance budgets. The 30-Year Plan for Greater Adelaide identifies planning zones for concentrated development along transport corridors. Any potential impact will be monitored in future revision of this Infrastructure Asset Management Plan. There is the possibility that Council will receive requests from the community for additional facilities. It is expected that this demand can be managed with our existing infrastructure.