BUILDINGS INFRASTRUCTURE AND ASSET MANAGEMENT PLAN. City of Holdfast Bay. Version 4 August 2008

Transcription

1 City of Holdfast Bay BUILDINGS INFRASTRUCTURE AND ASSET MANAGEMENT PLAN Version 4 August 2008

2 Document Control Document ID: 59_04_070905_lgasa_iamp template v11 Rev No Date Revision Details Author Reviewer Approver 1 Feb 2008 GHD non template GHD 2 June 2008 Template and graphs MW MB 3 July 2008 Draft for Elected Members Workshop MW MB RD 4 August 2008 Draft for Public Comment MW MB RD 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...40

4 8. PLAN IMPROVEMENT AND MONITORING Performance Measures Improvement Plan Monitoring and Review Procedures...42 REFERENCES APPENDICES Appendix A Register of Building Assets...44 Appendix B Risk Register for Building Assets...45 Appendix C Projected 20 year Capital Renewal Works ProgramError! Bookmark not defined. Appendix D Planned Upgrade/Exp/New 20 year Capital Works Program...46

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 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 and fittings) with benefits expected to last more than 12 month. 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 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

7 - ii - 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 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. 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 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. 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) 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).

8 - iii - 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. 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 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. Recoverable amount The higher of an asset's fair value less costs to sell and its value in use.

9 - iv - 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 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. 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. 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 that is still available for use in providing services (DRC/DA).

10 EXECUTIVE SUMMARY What Council Provides 1. Ensure the Buildings network is maintained at a safe and functional standard as set out in this infrastructure Council provides a Buildings network in partnership with the community, stakeholders and other levels of government, as appropriate, to enable delivery of civic, commercial, community, sporting and functional needs. and asset management plan (IAMP). 2. To optimise the provision and management of physical assets and public facilities to meet the social, environmental and economic goals of the City. The City of Holdfast Bay s owns 149 building assets ranging from the Council s works depot through the community aged care facilities, library buildings, civic buildings, sporting and surf life saving clubs, toilets basic storage sheds. From these buildings, Council provides or facilitates a range of services to the local and greater community including: Administration support, Sports and recreation opportunities Aged care and support Tourism management Arts, Cultural & historic experiences, and Commercial opportunities. What does it Cost? There are two key indicators of cost to provide the Buildings 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. 1 The life cycle cost to provide the Buildings service is estimated at $1,897,211 per annum. Council s planned life cycle expenditure for year 1 of the infrastructure and asset management plan is $774,000. The total maintenance and capital renewal expenditure required to provide the Buildings service in the next 10 years is estimated at $21,970,535. This is an average of $2,197,054 per annum. Council s maintenance and capital renewal expenditure for year 1 of the infrastructure and asset management plan of $774,000 giving a 10 year sustainability index of 77%. Plans for the Future Council plans to operate and maintain the Buildings network to achieve the following strategic objectives. 1 All figures and ratio s exclude values for Alwyndor, as a business entity, and self-help expenditure by sporting and community clubs. Measuring our Performance Quality Building assets will be maintained at an appropriate level. This condition will vary throughout the building portfolio and can vary significantly within each building category. Whilst the Council does not address the ascetic appeal of its buildings equally, there is an obligation to ensure where possible they are compliant and fit for their purpose. Defects found or reported that are outside our service standard will be repaired. See our maintenance response service levels for details of defect prioritisation and response time. Function Our intent is that an appropriate Buildings network is maintained in partnership with other levels of government and stakeholders. Building asset attributes will be maintained at a safe level and associated signage and equipment be provided as needed to ensure public safety. We need to ensure key functional objectives are met: Provide a building network from which the Council can deliver or assist the community in delivering a range of services Enable income generation via commercial opportunities to assist Council to meet community demands. Safety We inspect all Buildings regularly and prioritise and repair defects in accordance with our inspection schedule to ensure they are safe. The Next Steps This actions resulting from this asset management plan are: Review building portfolio against community requirements and expectations to ensure optimal usage and functionality, Quantity current performance against levels of service and establish sustainable performance targets, and Review service levels for buildings with contractors and relevant organisations.

11 INTRODUCTION 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: Council s Public Convenience Strategy This Building infrastructure and asset management plan covers the following infrastructure assets: Civic Buildings, Sporting Clubrooms and associated buildings, Surf Life Saving Clubs, Public Toilets & amenities, Community Buildings and Commercial Buildings. From these assets a range of services are provided to the local community and the important tourist population such as tourist information, aged care, hospitality, garbage collection, street sweeping and Council s works, library buildings and basic storage sheds. From these buildings, Council provides or facilitates a range of services to the local and greater community including: Administration support Sports and recreation opportunities Aged care and support Tourism management Arts, Cultural and historic experiences Commercial opportunities\ A complete list of building assets held by the City of Holdfast Bay is provided at Appendix A. Table 2.1 provides an overview of assets within categories.

12 - 3-3 Table 2.1. Assets covered by this Plan Assets covered by this plan have been grouped into categories associated with their general function Area (m2) 2008 Replacement Value RV ($m) Civic Operational Buildings 8,915 $11.52 Civic Community Buildings 4,047 $8.23 Sporting Buildings 12,002 $21.03 Surf Life Saving Clubs 1,746 $10.05 Toilets and Amenities 535 $2.69 Community Buildings 1,647 $17.78 Commercial Buildings 10,022 $24.78 TOTAL 38,914 $96.08 This replacement value of over $96 million for building assets represents all building stock owned by Council. However, maintenance expenditure for this entire building portfolio is not the sole responsibility of Council. Refer section for further discussion on maintenance arrangements. Key stakeholders in the preparation and implementation of this infrastructure and asset management plan are: External stakeholders such as residents, business community, visitor organisations, and facility users such as sporting clubs Internal stakeholders such as Elected Members and other Council business units Government departments, including the Department for Environment and Heritage, and the Local Government Association Opportunity for input and review via formal stakeholder processes, building on previously stated community expectations. Council to provide decision making and strategic direction on how assets are to be managed. Administration to develop, cost and implement detailed operational plans and prepare advice on most appropriate way forward. Overview on ensuring and monitoring financial sustainability, guide operational parameters, and provide higher level management.

13 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: 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. 2 This infrastructure and asset management plan is prepared under the direction of Council s vision, mission, goals and objectives. Council s vision is: "A progressive and lively coastal city with strong community, environmental, heritage and cultural values, recognised for its quality lifestyle, business opportunities and as a destination of choice." Council s mission is: "Visionary leadership, sound representation and prudent financial and resource management." Relevant Council goals and objectives and how these are addressed in this infrastructure and asset management plan are: 2 IIMM 2006 Sec 1.1.3, p 1.3

14 - 5-5 Table 2.2. Council Goals and how these are addressed in this Plan Goal Objective How Goal and Objectives are addressed in IAMP Asset Management Financial Accountability Health and Recreation Aged Care Services Public Environment Sustainable Environment To optimise the provision and management of physical assets and public facilities to meet the social, environmental and economic goals of the City. To manage the Council s financial resources by implementing prudent financial policies, use of contemporary financial management practices and efficient distribution of Council s Services. To provide and facilitate services and facilities which support public health and encourage a healthy lifestyle. To provide and facilitate a range of quality services including care and accommodation options for particular age groups within the community. To create a public environment that positively differentiates Holdfast Bay and retains the unique local character. To lead and involve the community in action towards a sustainable global environment. The fundamental purpose of the plan is to address these objectives The plan considers levels of service and develops its financial strategy around optimising these levels of service. It also adopts a whole of life approach costs of assets. The IAMP sets out principals for managing and operating the building infrastructure to meet these objectives. The IAMP sets out principals for managing and operating the building infrastructure to meet these objectives. Through establishing and agreeing levels of service that meets community expectations. Through agreeing with the community on the levels of sustainability it wants and is willing to pay for. 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.

15 - 6-6 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

16 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.

17 LEVELS OF SERVICE 3.1 Customer Research and Expectations Council participates in the Local Government Association of South Australia Comparative Performance Measures in Local Government Customer Satisfaction survey. This telephone survey polls a sample of residents on their level of satisfaction with Council s services. Table 3.1 provides information on community perception, a result above 100% provides a very favourable perception of the activity. Table 3.1. Comparisons between Holdfast Bay Report Card (score card out of 100 or by %) Measure Title Measure Objective Data Source Council Results 2001/ 2002 Council Results 2002/ 2003 Council Results 2003/ 2004 Council Results 2004/ 2005 Council Results 2005/ 2006 Council Results 2006/ 2007 Asset Management Capital expenditure on (1) assets as a percentage of the depreciation expense. (1) Expenditure to include full cost attribution but to exclude land (nondepreciable). Whether the capital expenditure on assets is sufficient to keep up with the decrease in value through the reduction in useful lives of assets. Grants Commission % % % % % No data available (2006/ 2007 Community Satisfaction with Asset Management Community satisfaction with asset/ infrastructure management. Community satisfaction with the provision and management of community assets/ Community Survey (2002) (2003) (2004) (2005) (2006) (2007) infrastructure. 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 legislative requirements including Australian and State legislation and State regulations. These include:

18 - 9-9 Table 3.2. Legislative Requirements Legislation Local Government Act 1999 Development Act 1993 Building Code of Australia, Building Act 1993, and Building Regulations 1994 Disability Discrimination Act 1992 and other relevant disability legislation Occupational Health & Safety Act 1985 Children s Services Act 1996 and Children s Services Regulations 1998 Australian Standard AS1891 Fire Services AS/NZS :1995 Emergency Evaluation Lighting AS1428 Design for Access and Mobility 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. Have consideration of, adhere to and fulfil the requirements of the Development Act. Have consideration of, adhere to and fulfil the requirements of the BCA and Building Act. Have consideration of, adhere to and fulfil the requirements of the DDA and other relevant legislation. Have consideration of, adhere to and fulfil the requirements of the OH&S Act. Have consideration of, adhere to and fulfil the requirements Have consideration of, adhere to and fulfil the requirements Have consideration of, adhere to and fulfil the requirements Have consideration of, adhere to and fulfil the requirements 3.3 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 Quantity Availability Safety Technical measures may relate to Smoothness of roads Area of parks per resident Distance from a dwelling to a sealed road Number of injury accidents Council s current service levels are detailed in Table 3.3.

19 Table 3.3. Current Service Levels Key Level of Service Performance Measure COMMUNITY LEVELS OF SERVICE Quality Amenity fit for purpose, clean and tidy Performance Measure Process Customer requests service Performance Target Minimal overdue requests Current Performance To be determined Function Access for all Customer service requests regarding accessibility issues Safety Provide safe, suitable Number of incident buildings reports Optimal facility functionality Minimal issues identified TECHNICAL LEVELS OF SERVICE Condition Carry out routine maintenance Accessibility Cost effectiveness Comply with BCA & DDA codes Minimising costs, encouraging self-help Keep general buildings at level 3 or higher, and civic buildings at level 2 Duration and frequency of unavailability of facilities Keep service level at agreed level for building value Keep general buildings at level 3 or higher, and civic buildings at level 2 Maximise facility availability Maintenance between % of building replacement cost per annum Safety Compliance with Codes Building audit Proactive approach 3.4 Desired Levels of Service At present, indications of desired levels of service are obtained from various sources including the LGASA 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. The Climate Change - Adaptation Actions for Local Government Report summarises the potential impacts of climate change on local government functions. For buildings infrastructure it notes: Changes in building heating/cooling costs (can be either positive or negative), Increased risk of damage from bushfires, Changes in frequency of wind, rain, hail, flood, storm events and damage, potentially resulting in destruction, Cyclone damage and destruction due to changes in wind intensity, and Higher rates of building deterioration and associated maintenance costs. The Report also recommends adaptation options. Table 3.4 discusses those adaptations relevant to provision of recreational facilities and natural resource management:

20 Table 3.4: Climate Change Suggested Adaptation Actions for Local Government Impact and Action Benefits Costs All Climate change impacts Showcase best practice in climate sensitive building design in public buildings Triple bottom line benefit of encouraging sustainable development within the community more generally Economic cost of demonstration technologies and building design For temperature increases and changes For infrastructure developments with a lifetime greater than 50 years, design for staged construction to allow future climate change impacts to be taken into account Design Council buildings to allow for ease of future adaptation, eg have the ability for significant amounts of shade to be added or removed from a facade Consider potential for subsidence/heave in the design of infrastructure foundations Risk assessment to ensure new infrastructure is not placed in fire-prone areas, for those where location is not flexible, investigate standards of construction that reduce their sensitivity to bushfire Opportunities to take into account other (non-climate related) improvements to the infrastructure Decreased incidence of heat stress; and reduced cooling requirements, meaning reduced use of air conditioning Economic and social benefits of infrastructure more resistant to existing risk of heave and subsidence Improved protection of human health and safety and property during bushfires; reduced potential for buildings/infrastructure loss and/or damage due to bushfire Likely to be a more expensive option, or not technically feasible in some construction projects Building design costs Potential for greater expense in developing resistance in infrastructure foundations Potential for unnecessary lock up of available land; and increased costs associated with use of fire-retardant materials For increased rainfall/severe weather events with potential for increased risk of flood disruption Flood proof or re-site infrastructure to avoid disruption by flooding Social & economic benefits from better coping with existing flood events, and economic benefits of infrastructure maintenance and avoiding rapid degradation Economic costs of floodproofing and potential economic, environmental ad social costs of relocating infrastructure; economic costs of more rigorous monitoring and maintenance program

21 Increased demand for comfort cooling in buildings, affecting energy consumption Increase use of insulation in new buildings; retrofit existing buildings with addition of insulation materials and effective and efficient cooling systems; reduce lighting and equipment loads to reduce overheating; optimise design of cooling systems to provide the best energy efficiency under higher temperature operating loads, ie use of passive cooling systems, improved use of thermal properties of building materials, reduce solar heating using recessed windows, roof overhangs and shades; promote micro-power initiatives Social benefits comfort affects the health, productivity and general wellbeing of occupants. Economic and environmental benefits decreased energy consumption and greenhouse gas emissions Cost of insulation and appropriate building materials; capital costs may not be recouped by improved efficiency. Potential increased risk of bushfire Risk assessment to ensure new infrastructure is not placed in fire-prone areas, for those where location is not flexible, investigate standards of construction that reduce their sensitivity to bushfire Source: Summarised from Climate Change Adaptation Actions for Local Government 2007 Improved protection of human health and safety and property during bushfires; reduced potential for buildings/infrastructure loss and/or damage due to bushfire Potential for unnecessary lock up of available land; and increased costs associated with use of fire-retardant materials

22 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 Population 33,303 35,924 Minimal impact on demand for services Demographics 15.8% < 17 yo (cf SA 22.6%) 13.0% < 15 yo Greater use in passive recreation, 22.6% > 65 yo (cf SA 15.4%) 24.6 > 65 yo but ongoing visitor demand for active recreation. Gender Males 15,687 17,578 Nil Females 17,616 18,822 Source: Informed Decisions for 2006 Census data Holdfast Bay; Planning SA for population projections based on medium scenario Figure Projected Population

23 Figure Projected Population by age and gender 2006 and 2021

24 The small forecast population change is reflective of the fully built up nature of the Council area. The small changes in population are not expected to impact significantly on building demand. A change that could be anticipated is where an older population, with a greater proportion of time on its hands, has higher expectations from Council in relation to its service provision level. Detailed analysis of services supported by building assets will be needed to provide a satisfactory forward projection. There may be impacts on sports facilities, children s services, aged and disability services, and community centres and halls. With small expected changes in population, the changes are likely to be marginal and only really have an effect on those assets which are either under-utilised or in high demand. 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 New more durable, improved building materials becoming available, eg carbon fibre and aluminium framing Low energy consumption lights Solar power accessibility Recycled water options Air conditioning improvements for increased energy efficiency Improved coating materials for protection of buildings in coastal environments Improved insulation materials Building design improvements, Greenstar Effect on Service Delivery Increased longevity of materials Increased initial outlay but reduced energy consumption Use of renewable resource Use of renewable resource Reduced energy consumption and carbon footprint Increased durability and longevity of materials Reduced energy consumption Flexibility and energy efficiency Although these may improve the durability and cost of maintaining buildings, things such as increased demand for air conditioning often act to counter any potential overall savings. Overall therefore, technology changes are forecast to have little effect on the delivery of services covered by this IAMP. It is understood that the undertaking of energy audits is currently being investigated and it would be desirable to combine these with environmental audits for at least the larger users within Council. These can be undertaken at a high level initially to see whether there is scope for cost savings. Any cost savings can be realised or used to improve the level of service.

25 Demand Management Plan Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand and demand management. Demand management practices include non-asset solutions, insuring against risks and managing failures. Opportunities identified to date for demand management are shown in Table 4.3. Further opportunities will be developed in future revisions of this infrastructure and asset management plan. Table 4.3. Demand Management Plan Summary Service Activity Use of facilities Building portfolio Building flexibility Building design Fees and charges Demand Management Plan Encourage sharing of facilities by user groups to produce community hubs Rationalising the building portfolio where possible and disposal of under-utilised facilities Development of building shells that can absorb modified use over time as demand changes Using energy saving and value engineering principles in building design Reviewing fees and charges for use of buildings to better reflect service delivery 4.4 New Assets from Growth The new assets required to meet growth will be acquired from land developments and constructed by Council. The new asset values are summarised in Figure 4.4.

26 Figure 4.4. New Assets from Growth Acquiring these new assets will commit council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operating and maintenance costs.

27 LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how Council plans to manage and operate the assets at the agreed levels of service (defined in section 3) while optimising life cycle costs. 5.1 Background Data Physical parameters The assets covered by this infrastructure and asset management plan are shown below. Civic Operational Buildings Civic Community Buildings Sporting Buildings Surf Life Saving Clubs Toilets and Amenities Covers town halls, works depots and storage areas. Libraries, Bay Discovery Centre All grandstands, sports clubs and any storage unit associated with them. All surf clubs and associated storage units. (The new Brighton Surf Club Building valuation has not been included as part of this valuation, but does include the new Somerton Park Surf Club building). Public toilets, changerooms and exeloo s Community Buildings Community Centres, Kindergartens, Halls and associated storage units. Commercial Buildings Alwyndor, Brighton Caravan Park etc The Council owns and maintains 149 buildings of varying size, purpose and quality. These are used for a variety of civic, operational, community, sporting and commercial purposes. The most prominent civic building is the Brighton Town Hall, which houses the main administrative offices and Council Chambers. Other buildings include the Council depot and community buildings, among them being two libraries and a number of Community Centres and Sporting Clubrooms. In total this Building IAMP provides details of the 149 buildings in the City of Holdfast Bay portfolio. The age profile of Council s assets is shown below in Figure

28 Figure Asset Age Profile Asset capacity and performance Council s services are generally provided to meet design standards where these are available. Locations where deficiencies in service performance are known are detailed in Table Table Known Service Performance Deficiencies Location Across building portfolio removal of asbestos Across building portfolio disability access Across building portfolio lack of Information Technology facilities Unsuitable for use Service Deficiency Unable to be used by certain members of the community Unable to access IT to satisfy modern demands The above service deficiencies were identified from "[ Click here & type source of information ]" Asset condition Building Condition is a measure of a building s physical condition relative to its condition when first constructed or refurbished. This condition rating is a measure of the deterioration of a building over time and of the maintenance actions taken to arrest the deterioration. As such, Building Condition takes into account the current condition of the building structure, architectural finishes and services supporting the building use by the occupants. The condition profile of Council s assets is shown below.