Loddon Shire Council. Road Asset Management Plan. Version 1.1.1

Transcription

1 Version Adopted by Council 23 rd June 2008

2 NOTE The Controlled version of this document is located at K:\Common\Road Asset Management Plan\Current \RAMP V1.1.1 June08 Printed versions are uncontrolled documents

3 Table of Contents EXECUTIVE SUMMARY INTRODUCTION OBJECTIVES OF THIS PLAN... 2 SCOPE OF THIS PLAN THE ASSET MANAGEMENT PLAN PLAN FORMAT KEY STAKEHOLDERS LEGISLATIVE REQUIREMENTS RELATIONSHIPS WITH OTHER PLANS RATIONALE FOR ASSET OWNERSHIP LEVELS OF SERVICE INTRODUCTION RESEARCH AND COMMUNITY EXPECTATIONS Local Government Community Satisfaction Survey STRATEGIC AND CORPORATE GOALS AM Policy and Strategy Best Value LEGISLATIVE REQUIREMENTS, STANDARDS AND CODES OF PRACTICE CURRENT/TARGET LEVELS OF SERVICE LEVELS OF SERVICE TABLES Community Levels of Service Operational Levels of Service PRINCIPLES ADOPTED IN THIS PLAN DESIGN AND CONSTRUCTION STANDARDS FOR RURAL LOCAL ROADS DESIGN AND CONSTRUCTION STANDARDS FOR TOWN STREETS DEMAND FORECAST INTRODUCTION GROWTH TRENDS POPULATION DEMOGRAPHIC CHANGES RESIDENTIAL DEVELOPMENT INDUSTRY AND AGRICULTURAL IMPACTS GOVERNMENT INSTRUMENTALITY IMPACTS IMPACT OF TRENDS ON INFRASTRUCTURE USE Existing Infrastructure RISK MANAGEMENT INTRODUCTION RISK MANAGEMENT FRAMEWORK WITHIN COUNCIL Corporate Risk Risk Management Policy Risk Management Implementation Plan RISK ASSESSMENT PROCESS Step 1: Risk Identification Step 2 & 3: Risk Analysis and Evaluation Likelihood Roads Streets & Footpaths - Overall Risk Matrix Step 4: Treat Risks PROJECT RISKS OPERATIONAL RISKS When printed this is an uncontrolled document

4 4.6 CONTINGENCY PLANS RISK ACCOUNTING AND AUTHORITY Manager Organisational Development Executive Managers Managers Risk Committee All Employees LIFECYCLE MANAGEMENT PLANS INTRODUCTION Section Contents Work Category Definitions Maintenance Inspections Intervention Levels Performance Monitoring Consultation Process Boundary Issues Council Ownership Functions PAVEMENT ASSET GROUP Objective Background Data The Renewal Funding Gap ACQUISITION PLAN - NEW WORKS STRATEGIES UPGRADE WORKS STRATEGIES Upgrading rural gravel pavements to sealed pavements Sealing of town streets Sealing roads in a Rural Living Zone Widening existing rural sealed pavements Upgrading roads to all weather access in Farming Zones SUBDIVISION DEVELOPMENT NEW WORKS EXPENDITURE FORECASTS OPERATIONS AND MAINTENANCE PLAN OPERATIONS MAINTENANCE Work Definition Principles for road maintenance Principles for sealed pavement maintenance Principles for unsealed pavement maintenance Maintenance Expenditure Forecasts RENEWAL/REPLACEMENT PLAN PHYSICAL DATA RENEWAL/REPLACEMENT TACTICS Reduce Level of Service Revise Asset Lives Increase funding for renewal ASSET LIVES SEALED SURFACE Condition/Age General principles for sealed surface renewal Expenditure Forecasts for Sealed Surface SEALED PAVEMENT Condition Age General principles for sealed pavement renewal When printed this is an uncontrolled document

5 8.5.4 Comparative Renewal and Maintenance Costs Expenditure Forecasts for sealed pavements UNSEALED PAVEMENT Condition/Age General principles for unsealed pavement renewal Expenditure Forecasts DISPOSAL PLAN Summary of Financial Expenditure FINANCIAL FORECAST YEAR FINANCIAL FORECAST Financial Projection Discussion KEY ASSUMPTIONS ASSET VALUATION FUNDING STRATEGY CONFIDENCE LEVELS ASSET MANAGEMENT PRACTICES AND IMPROVEMENTS OVERVIEW ASSET MANAGEMENT PRACTICES Processes Systems Data ASSET MANAGEMENT IMPROVEMENTS Further Tactics to be Investigated MONITORING AND REVIEW PROCESSES AM Plan Review AM Plan Monitoring REFERENCES Loddon Shire Council Documents GLOSSARY APPENDICES RURAL TOWNSHIPS AND RURAL RESIDENTIAL UNMADE ROAD NETWORK STRATEGY LOW TRAFFICKED RURAL SEALED ROADS ON WHICH SEALED ROAD RENEWAL WILL BE DISCONTINUED When printed this is an uncontrolled document

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7 Executive Summary Loddon Shire council is custodian of an extensive range of community assets that it provides to facilitate delivery of its services in the community. Roads are a significant component of Council s asset portfolio. Council needs to ensure that there is an appropriate level of funding to enable assets to be maintained and renewed to an acceptable standard. Council will use this, along with other Asset Management Plans, to balance levels of service, community expectations and affordability of its assets and services. This, covering sealed and unsealed road and street pavements with a replacement value of $184 million, provides details for communication and justification of funding requirements while supporting long term financial planning. Levels of service existing prior to this asset management plan have been modified to meet the need to deliver affordable outcomes. The plan outlines how risk management principles will be applied, nominates road standards and provides details of operations, maintenance, renewal, new works and asset disposal activities. One of the major issues for Council is the need to fund the timely renewal of its road assets. Prior to this plan Council had a renewal funding short fall of $1.8million per annum. This plan includes the following new strategies and tactics to reduce the renewal gap:-- o limit extending the rural sealed road network o implement special charge schemes to fund upgrading town streets o use planning process to limit extension of gravel roads for residences in farming zones. o over a period of time discontinue renewal of low trafficked rural sealed roads which fail to meet various selection criteria o devote all capital works funding to renewal works The adoption of this will reduce the annual shortfall in renewal spending from $1.819 million to $934,000 per annum. Future tactics and asset management improvements are discussed in section 11. When printed this is an uncontrolled document Page 1

8 1.0 Introduction This asset management plan relates to the following road infrastructure:- Sealed pavements Unsealed pavements Formed and unformed roads This asset management plan is prepared to document Council s asset management processes to guide the planning, acquisition, operation and maintenance, renewal and disposal of assets with an objective to maximise asset service delivery potential and manage related risks and costs over entire asset lives. Bridges and footpaths will be dealt with in separate Asset Management Plans. 1.1 Objectives of this Plan Council s road infrastructure represents a significant investment by the community and is vital to its health and well being. The overall objective of asset management is: To enable Council to meet its responsibilities to Provide services to current and future generations Provide and maintain community infrastructure within the municipal area Enhance community safety and promote access The specific purpose of this plan is to: Demonstrate responsible stewardship; Define and articulate how the infrastructure is and will be managed to achieve Council s objectives; Provide a basis for customer consultation to determine the appropriate levels of service; Manage risk of asset failure; Achieve savings by optimising whole of life costs; and Support long term financial planning. The Road Management Act 2004 requires Council to produce and make available to the public a road management plan which Establishes a management system for Council s road management functions based on policy and operational objectives and available resources Sets relevant standards for the discharge of those road management functions 1.2 Scope of This Plan The Loddon Shire is located in Central Victoria adjacent to the City of Greater Bendigo and surrounded by the Shires of Central Goldfields, Northern Grampians, Buloke, Gannawarra, Campaspe and Mount Alexander. The Shire covers an area of 6,700 square kilometres with a population of 8,095 spread over eighteen towns or communities and rural areas. The topography of the Loddon Shire varies from rolling hill country in the South to broad, flat, slightly undulating grassland in the East and North. The municipality is dissected by the Loddon River, which flows from catchments in the South through to the Murray River. When printed this is an uncontrolled document Page 2

9 The Council over a number of years has built up a considerable asset base to enable it to provide services to the community, The Council s Annual Report to 30 th June 2007 details non-current assets to a total value (Written Down Value) of $188,524,914 including: Land and buildings - $ 34,733,814 Plant, furniture and equipment - $ 3,822,258 Infrastructure (Roads, footpaths, bridges, drains, landfill, quarries) $149,396,801 Capital works in progress - $ 572,044 $188,524,914 The scope and current replacement value, at 30/6/2007, of the assets covered by this plan are identified in the following table: Asset Type Unit Length Area Replacement Value ($) Sealed Roads (km) 919 4,503, ,950,576 Gravel Roads (km) ,471,630 39,417,154 Formed & (km) ,298,097 2,241,825 unformed roads Total) ,300, ,609,555 Formed& unformed roads 31% Sealed Road pavement 19% Gravel Road pavements 50% When printed this is an uncontrolled document Page 3

10 1.3 The Asset Management Plan The AM plan is a tool combining management, financial, engineering and technical practices to ensure the level of service required by customers is provided at the most economical cost to the community. The plan is also intended to protect the environmental and cultural values of the assets providing the service. The AM Plan is a tactical plan that translates broad strategic goals and plans into specific goals and objectives, relevant to a particular activity for the organisation. It may be regarded as a tactical plan for implementing infrastructure related strategies, which arise from the strategic planning process. Tactical planning involves the development of separate sub-plans that allocate resources (natural, physical, financial, etc) to achieve strategic goals through meeting defined levels of service. The plan is the medium by which Council articulates its management of infrastructure to achieve the desired outcomes. Processes & Methodologies Information Systems Management Practices Knowledge and Data Asset Management Plan Planning Practices Commercial Tactics Organisational Issues People Issues Implementation Practices Figure 1-1: Asset Management Plan The scope of the AM Plan relates to the four broad AM plan inputs and outputs. Processes: The processes, analysis and evaluation techniques needed to support effective lifecycle AM. Information Systems: The information systems to support AM processes and manipulate data. Data: Appropriate, accessible and reliable data for manipulation by information systems to produce the outputs required. Implementation Tactics: Including organisation, contractual and people issues. When printed this is an uncontrolled document Page 4

11 1.4 Plan Format The figure below follows the logic of the AM planning process and illustrates the relevant AMP section references in this plan. L.O.S INPUTS Strategic Environmental Legislative Customer Financial Political DEFINE LEVEL OF SERVICE Section 2 PREDICT DEMAND Section 3 XX CONSIDER RISKS Section 4 DECISION TOOLS AM systems Data Processes Analysis techniques Section 7 PREPARE ASSET LIFE CYCLE PLANS Evaluate asset condition/ performance Identify management tactics Identify, evaluate & select options Develop work programmes Section 5 PREPARE FINANCIAL FORECASTS Section 6 MONITOR PERFORMANCE & AM PLAN IMPROVEMENTS Section Key Stakeholders This plan is intended to demonstrate to stakeholders that Council is managing the assets responsibly. The key stakeholders include: Federal and State Government; Councillors; Community/Ratepayers; Visitors; Utilities/Developers; Employees/Volunteers; Contractors/Suppliers; and Insurers. 1.6 Legislative Requirements Council has stewardship over a large range of assets as required by legislation that includes: Local Government Act 1989 Road Management Act 2004 Road Safety Act 1986 Water Act 1989 Subdivisions Act 1993 Transport Act 1983 Planning and Environment Act 1987 When printed this is an uncontrolled document Page 5

12 Environmental Protection Act 1997 Local Laws relevant to Roads Occupational Health and Safety Act 1985 Other relevant references include: VicRoads standards Australian Standards and Codes of Practice State and Federal Acts and Regulations 1.7 Relationships with Other Plans AM Plans are a key component of the Council planning process linking with a number of Council documents that influence the Asset Management Plan and priorities allocated to infrastructure asset, capital, renewal, refurbishment and replacement expenditure. The following are important resource documents: Loddon Shire Council Plan The Loddon Plan Sets out Council s objectives and strategies under six key delivery areas. Strategic Resource Plan This plan sets out a projection of financial resources for the period of 1 st July 2007 to 30 th June Corporate Risk Management Policy CS9 (September 2005) The Loddon Shire Council is committed to adopting management principles that will successfully identify, analyse, assess, treat, monitor and review risks associated with its operations. Council Annual Budget Road Management Plan (2004) Best Value Reviews o Bitumen Surfacing (2003) Urban Drainage Program (August 2005) Road Safety Strategy Rationale for Asset Ownership Council exists principally to supply core services that meet the needs of its community. What services are provided, and how they are provided, depends on the level of service required by the community. Council s major core function is the provision of road infrastructure throughout the municipality in accordance with engineering standards and planning objectives and which meet the requirements of the Road Management Act 2004 and the Local Government Act Transportation and the provision of an effective road network are regarded as the most essential function associated with enhancing the municipality s economy and accessibility. When printed this is an uncontrolled document Page 6

13 2.0 Levels of Service 2.1 Introduction Levels of Service provide the basis for the life cycle management strategies and works programme identified within the AMP. They support the Council s strategic goals and are based on customer expectations and statutory requirements. Road Assets serve the community and enable Movement of people and goods Access to properties Provision for non vehicular users (pedestrians and cyclists) Provision of parking space Use of transport corridors for service provision (water supply, wastewater, communications and energy) With the use of this broad description of service as a guide, a key objective of this Asset Management Plan is to define the levels of service for safety, quality and efficiency. The levels of service in this Section will be used to: inform stakeholders of the type and level of service offered by Loddon Shire Council on its road network; formulate life cycle management strategies to deliver the defined levels of service; enable stakeholders to asses suitability, affordability and equity of the services offered; The levels of service outlined in this Section are based on: Research and community expectations Strategic and corporate goals Legislative requirements Standards and Codes of Practice. 2.2 Research and Community Expectations Council s customer research into road infrastructure needs and satisfaction has included: Community forums (September 2003, October 2006, October 2007)] Annual Local Government Community Satisfaction Survey Local Government Community Satisfaction Survey The last community satisfaction survey was undertaken in May The outcomes of the survey were: When printed this is an uncontrolled document Page 7

14 ASSET CATEGORY RESULT OF SURVEY % of respondents who rated performance excellent good adequate needs improvement needs a lot of improvement Roads [and footpaths] Traffic Management and Parking Council uses the community satisfaction survey as a performance measure of customer satisfaction. From the table above we can see that that 63% % were satisfied with roads 85% with parking and traffic management The primary reasons for needed improvements were: Roads - Improve/more frequent grading etc of unsealed roads needed - More frequent/better resurfacing of roads - Improve standard of unsealed roads [loose gravel, dust, corrugations] Traffic Management and Parking - More parking facilities adjacent to shopping and business centres - More parking facilities/capacity - Poor traffic/parking management 69% of improvement reasons related to unsealed roads. Council will continue to give high priority to gravel road resheeting and maintenance. 2.3 Strategic and Corporate Goals The Council Vision for the Shire is: Loddon will be a proud community leading rural Australia as a great place to live, work and visit. The work of Council is delivered under six key delivery areas. The objective of Key Delivery Area No 3, Works and Infrastructure is to enhance living standards and support economic development. Strategies 1. plan, build and maintain an effective road network 2. create attractive township streetscapes 3. long term plans will be developed to overcome deficiencies in key infrastructure (water, sewerage and gas) When printed this is an uncontrolled document Page 8

15 2.3.1 AM Policy and Strategy Stewardship of infrastructure is a core Council function. Sound asset management is necessary to enable Council to meet its responsibility to: provide services to current and future generations provide and maintain community infrastructure with the municipal area enhance community safety and promote access The principles identified in Council s Asset Management Policy and Strategy are that Loddon will: provide its community with a level of service that is responsive to the community s needs. ensure its community plays an active role in setting the standard of infrastructure provided. This will be through consultation and information exchange between Loddon Shire and its community. maximise the potential life of infrastructure through efficient and effective Asset Management practices. ensure asset management is an integral part of the Council s business cycle and will:- o be consistent with its goals and objectives o help to manage business risks o provide tangible benefits o be integrated and sympathetic with other components of the business o be sustainable. develop an Asset Management Plan incorporating sub-plans for each class of Council asset to ensure that the defined level of service can be maintained now and into the future at an affordable cost to Council and the community. incorporate the Asset Management Plans into Council s overall Financial Plan. develop and maintain systems and procedures to support asset management including a centralised database of Council assets linked to a Geographic Information System (GIS), where appropriate. develop and use a Project Evaluation method incorporating lifecycle costing, social, environmental and economic factors to guide investment decision. determine potential asset renewal funding gap and develop responses to address any such gap that are responsible, affordable and meet reasonable community expectations Best Value Council is required to operate in accordance with the following principles of Best Value as identified in the Best Value Victoria brochure published by the Victorian Government: There must be quality and cost standards set for all services that a council provides to the community. All services provided by a council must be responsive to the needs of the community. Each service provided by a council must be accessible to those members of the community for whom the service is intended. A council must achieve continuous improvement when providing services to the community. When printed this is an uncontrolled document Page 9

16 A council must develop a program of regular consultation with its community in relation to the services it provides. A council must report regularly to its community on its achievements in relation to the Best Value Principles. Councils should prepare a Best Value Principles Report to be included in the annual report. 2.4 Legislative Requirements, Standards and Codes of Practice Whilst Council is acting as a trustee for the community assets and is obliged to provide services at a level agreed with the community, it is also required to provide a minimum level of service as defined by legal requirements, Standards, and Codes of Practice. The following legislative requirements, Standards and Codes of Practice, with respect to levels of service, are to be taken into account: REFERENCE Transport Act 1983 Road Safety Act 1986 Local Government Act 1989 DETAILS Council s responsibility for main roads within its municipal district (Clause 5(4) of Schedule 5) is modified according to the Road Management Act 2004 Empowers Council to carry out permanents works (Clause 16 of the Schedule 5) Provides Council with the power to erect major traffic control items (MTCI s) on roads other than declared main roads and the power to erect minor traffic control items on minor roads. (Section91). Empowers Council with regard to parking Section 6.0 outlines the purpose of a Council. The purposes of a Council are: To provide equitable and appropriate service and facilities for the community and to ensure that those services and facilities are managed efficiently and effectively. To manage, improve and develop the resources of its district efficiently and effectively. Section 7.0 outlines the objectives of Council to seek its purposes. In seeking to achieve its purposes, a Council has the following objectives: To facilitate the involvement of members of the community, users of facilities and services and Council staff in the development, improvement and coordination of local government; To co-ordinate with other public bodies to When printed this is an uncontrolled document Page 10

17 REFERENCE Environment Protection Act 1970 Occupational Health and Safety Act 1985 DETAILS ensure that services and facilities are provided and resources are used efficiently and effectively; To ensure adequate planning for the future of its municipal district; To represent and promote the interests of the community and to be responsive to the needs of the community; To formulate comprehensive policies and set performance targets; To develop, implement and monitor its strategic plans and budgets. Section 205 outlines Council s care and management. The Road Management Act 2004 place a duty of care on Council with regard to its roles as a road authority The legislative framework for the protection of the environment in Victoria. Legal requirements in relation to stormwater quality from building and construction work sites. Legal requirements for employers/employees in relation to workplace safety. Requirements on those who design, manufacture, import or supply any plan for use in the workplace. Water Act 1989 Subdivisions Act 1988 Health Act 1958 Austroads Road Design Guidelines Australian Rainfall and Runoff Guidelines Design Manuals and Works Specifications Road Design Standards: Traffic Engineering Manual Vol. 1 Traffic Management Traffic Engineering Manual Vol. 2 Signs and Provides for the liability of any person who causes unreasonable flows, which result in damage or injury. (Section 16(1)). Provides for engineering plans to be provided for developments in accordance with relevant standards. Legal Requirements regarding nuisance Design guidelines published by the Australasian Association of Road and Traffic Authorities. Guidelines for design flood estimation. Design and development standards and guidelines relating to civil infrastructure. Details the standards to which traffic engineering works may be undertaken. Designed to reflect the requirements of Road Rules Victoria and the Road Safety (Road Rules) Regulations The primary reference for road signs, markings and delineation in Victoria. When printed this is an uncontrolled document Page 11

18 REFERENCE Markings VicRoads Worksite Traffic Management (Roadwork Signing). Code of Practice. VicRoads Road Design Guidelines Parts Road Management Act 2004) DETAILS Incorporates the Australian Standard Manual of Uniform Traffic Control Devices AS172. Adopts the Manual of Uniform Traffic Control Devices AS Traffic Control Devices for Works on Roads. Incorporates VicRoads Road Design Standards The principals of the new Act: Set out the powers, duties and function of the highway authorities in relation to the inspection, maintenance and repair of roads Establishes the legal framework for the management of roads and define the rights, powers and duties of road authorities and other persons and bodies (such as utilities) which install, maintain or operate infrastructure on roads or carry out such works on roads. Enables authorities to develop and publish management plans to incorporating the performance of their duties in relation to the inspection, maintenance and repair of roads, having regard to the type of road, the resources available to the authority and its budgetary and policy priorities. When printed this is an uncontrolled document Page 12

19 2.5 Current/Target Levels of Service Service levels are divided into two types: Community based; and Operations based Community based levels of service relate to the function of the service provided and how the customer receives the service in terms of: Appearance; Legislative Requirements; Availability; Comfort; Safety; Operations based levels of service relate to the technical measures and the outputs the customer receives in terms of: Quality; Quantity; Maintainability; Reliability and Performance; Responsiveness; Capacity; Environmental Impacts; and Cost/affordability Assets covered by Levels of Service The following tables identify the service levels adopted and the targets set by council for road pavements including sealed and unsealed Roads. When printed this is an uncontrolled document Page 13

20 2.6 Levels of Service Tables Community Levels of Service Key Performance Indicator Accessibility Customer Satisfaction Road Safety Level of Service Continuous access available at all reasonable times Road service meets user requirements Safety of road network maintained and improved. Performance Measurement Process No of customer complaints re inaccessibility Annual Customer Satisfaction Survey conducted by Office of Local Government VicRoads crash statistics Target Performance Continuous access available except during unforeseen incidents or during emergencies. Customer satisfaction with roads maintained or improved Reduction in number of injury and vehicle crashes recorded on local roads. All road assets inspected in accordance with RMP program and faults rectified. Current Performance To be determined 63% satisfaction with roads To be determined Actions to meet performance target Provide emergency response procedures in accordance with road Management Plan Undertake works in accordance with maintenance and renewal plan Implement provisions of Road Management Plan. Resources Required Works customer service staff Infrastructure staff When printed this is an uncontrolled document Page 14

21 2.6.2 Operational Levels of Service Key Performance Indicator Responsiveness Quality Level of Service Repairs and response to customer complaints are within targets specified in RMP Roads maintained and rehabilitated to maintenance and construction quality targets Performance Measurement Process % of repairs within target response times Random field audits to check maintenance works are in compliance with RMP Target Performance 100 % of repairs and responses within target response times 95% of random audits for maintenance within standards set in RMP. Current Performance To be determined Not currently determined Actions to meet performance target Undertake works in accordance with provisions of Road Management Plan Random field audits to check maintenance is undertaken to standards set in RM Plan. Resources Required Works department Works department Affordability Provide road maintenance and renewal in an efficient, cost effective manner. Random field audits to check rehabilitation works are in compliance with RAMP and construction plans. Cost of maintenance and renewal program 95 % of random audits within standards set in RAMP and construction plans. Road maintenance and renewal program delivered within 10% of budget. To be determined Random field audits to check rehabilitation works are completed to the standards detailed in RAMP and construction drawings. Review and monitor maintenance and renewal programs in line with adopted annual budget. Monitor costs of program delivery. When printed this is an uncontrolled document Page 15

22 2.7 Principles Adopted in this Plan Section 2.5 defines the levels of service the community receives for roads while section 2.6 details how the level of service is delivered. The following principles are adopted in delivering these levels of service:- One all weather access will be maintained to existing, permanently occupied dwellings and intensive industries in the rural area, the minimum standard provided being Rural Gravel Access. Approved school bus routes will be maintained as all weather access roads, meeting the requirements of the Department of Infrastructure. Council approved tourist routes ( eg routes detailed in Council s self-drive CD s )will be maintained as all weather access roads. One existing dry weather only access, will be provided to the nearest property boundary of rural non-residential properties utilising an existing minor gravel, formed or unformed road. The standard for new works for each road hierarchy is as detailed in 2.8 Design and Construction Standards for Rural Local Roads and 2.9 Design and Construction Standards for Town Streets Further principles adopted are detailed in 6 Acquisition Plan, 7 Operations and Maintenance Plan and 8 Renewal/Replacement Plan. When printed this is an uncontrolled document Page 16

23 . 2.8 Design and Construction Standards for Rural Local Roads Design and Construction Standards for Rural Local Roads Local Road Hierarchy RSC, RSA RGC, RGA, RGM RFO Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Traffic volume >200, or >35 CVs per day , > 35 CVs per day, Safety issues <50 Traffic direction 2 way 2 way 2 way 2 way 2 way Lanes # 2 2 NA Lane width m NA Pavt width m * NA Seal width m (1) NA NA NA Shoulder width m NA Carriageway width m Verge width m Formation width m Fill batter slope 4:1 4:1 4:1 4:1 4:1 Cut batter slope 2:1 2:1 2:1 2:1 2:1 Table Drain batter slope 6:1 6:1 4:1 4:1 4:1 Pavement crossfall m,/m earth Shoulder crossfall m/m earth Verge slope m/m earth Clear Zone for new potential hazards (4) As per VicRoads Clear Zones (2) As per VicRoads Clear (2)( 3) Zones As per VicRoads Clear Zones (2) As per VicRoads Clear (2)( 3) Zones As per VicRoads Clear (2)( 3) Zones (1) Isolated pavement and seal widening provided on crests, curves (2) As per VicRoads Road Design Guidelines Pt 3, 3.9 Clear Zones Fig (3) Treat as 2 lane carriageway to calculate clear zone width. (4) Applies to new obstructions by other authorities e.g. new power poles, tree plantings Maximum grade for unsealed roads is 6 % [seal steeper grades] Further investigation on clear zones being undertaken General Council generally works to the standards in VicRoads Design Guidelines Table and AARB Unsealed Roads Manual. When printed this is an uncontrolled document Page 17

24 2.9 Design and Construction Standards for Town Streets Design and Construction Standards for Town Streets Local Road Hierarchy TSC TSA TGA Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Development Fully developed, Well developed Limited development 1 Limited development 2 Limited development business area Traffic direction 2 way 2 way 2 way 2 way 2 way Lanes # Lane width m Side drains 2 x K & C 2 x K & C 2 x K & C 2 x swale drain 2 x swale drain Parallel parking 2 x 2.8m 1 x 2.8m Nil Nil Nil Carriageway width m 12.6 (1) 9.8 (1 7.0 (1 6.0 (2) 6.0 (2) Pavement crossfall m,/m Parking lane crossfall N.A. N.A. N.A. m/m (1) From K&C invert to K&C invert (2) From edge to edge of pavement When printed this is an uncontrolled document Page 18

25 3.0 Demand Forecast 3.1 Introduction This section of the plan analyses factors affecting demand including population growth, social and technology changes and impacts on new and existing infrastructure. 3.2 Growth Trends The key drivers of demand for the infrastructure are: Population growth; Industrial growth; Residential Development; Demographic Changes; Changes in Government Directions 3.3 Population For population predictions the following sources of information have been used: (i) The Department of Planning and Community Development - Victorian Population Bulletin October 2007 Population Details Year Information Source Estimated Resident Population 1996 Victorian Population Bulletin October Victorian Population Bulletin October Victorian Population Bulletin October 2007 Average Annual Growth Period % Population Loddon Shire Population Year Population Change When printed this is an uncontrolled document Page 19

26 Generally an overall decline in population has been experienced, which is predicted to continue into the next 20 years at a rate of minus 1.2 % per annum. 3.4 Demographic Changes Council s Aged and Disability Strategy 20006/7 highlights key population changes that are predicted to occur over the next twenty five years They include:- People aged 65 years and over will almost double from 19% to 37.5 % People aged years will decrease from 54.5% to 43% People aged 85 years and older will increase from 258 (in 2001) to 548 in (2031) These trends are more likely to impact on building and footpath assets: the impact on road infrastructure will be minimal. 3.5 Residential Development There is no evidence to suggest that there will be significant increased demand for new housing in Loddon towns, therefore impact on road infrastructure will be minimal. 3.6 Industry and Agricultural Impacts Farm sizes in the north and eastern areas of the shire are increasing to create more viable enterprises with a resultant decline in the population as former owners move to the regional centres or major towns outside the municipality. Further mechanisation of farming operations continues to reduce the size of the work force required. The more recent development of horticulture, particularly the implementation and accelerated development of the olive industry will provide increased seasonal employment opportunities which will reduce the decline in overall population, more particularly in the Boort area. 3.7 Government Instrumentality Impacts The Australian Wheat Board continues to implement the closure of many grain storage silos scattered throughout the municipality, along with the establishment and expansion of central receival points at Boort, Bridgewater, Dunolly, Mitiamo, and Tandarra. The result is increased truck traffic on various local roads servicing the central receival facilities. When printed this is an uncontrolled document Page 20

27 3.8 Impact of Trends on Infrastructure Use Existing Infrastructure From traffic count data an analysis of 47 random sites indicates that there has been an overall decline of 3.3% in Average Annual Daily Traffic over the 5 year period from 2000 to Loddon Shire Council Traffic counts - vehicle per day (24hr) Road Year [approx] Road Hierarchy ~2000 ~2005 Abattoirs Rd RSA Arnold West Inglewood Rd RSA Baringhup Eddington Rd RSC Barraport West Rd RSA Boort Kurting Rd RSC Boort Quambatook Rd RSC Boort Yando Rd RSC Calivil Mail Rd RSC Canary Island Leaghur Rd TSC Dalziels Rd RSA Dingee Rd RSC Dingee Rochester Rd RSC Dunolly Inglewood Rd RSC Echuca Serpentine Rd RSC Eddington Laanecoorie Rd RSC Eddington Rd RSC Inglewood Korong Vale Rd RSC Inglewood Serpentine Rd RSC Kamarooka Store Rd RSA Lanyon Rd RGA Loddon West Rd RSC Mincha Canary Island Rd RSC Mitiamo Forest Rd RSC Mologa Durham Ox Rd RGA Mysia West Rd RSC Newbridge Bridgewater Rd RSA Nine Mile Wedderburn Rd RSC Old St Arnaud Rd RSC Prairie West Rd RSC Pyramid Yarraberb Rd RSC Quambatook Wychitella Rd RSC Richards Rd RSA Sebastian Rd RSC Shelbourne Rd RSC Silo Woolshed Rd RSA Sylvaterre Rd RSC Sylvaterre Timms Lake Rd RGC Tandarra Elmore Rd RSC When printed this is an uncontrolled document Page 21

28 Loddon Shire Council Traffic counts - vehicle per day (24hr) Year [approx] Tandarra Serpentine Rd RSC Wedderburn Serpentine Rd RSC Wedderburn W'Burn Junction RSC Wedderburn Wychitella Rd RSC Wilkinsons Swamp Rd RSC Woodstock Rd RSA Wychitella Bus Route Rd RSC Yarrawalla East Rd RSA Grand Total Difference (decline) % When printed this is an uncontrolled document Page 22

29 4.0 Risk Management 4.1 Introduction The overall objectives of a formal risk management approach are to: Outline the process by which Council will manage risk associated with its road assets, so that all risks can be identified and evaluated in a consistent manner, Identify operational and organisational risks at a broad level, Allocate responsibility for managing risks to specific staff to improve accountability; and, Prioritise the risks to identify the highest risks that should be addressed in the short to medium term. A risk management approach that is consistent with the process outlined in the Australian/New Zealand standard AS/NZS 4360: 1999 has been adopted to achieve these objectives. The process is, illustrated in the figure below. Risk Context Establish risk evaluation criteria Communicate and Consult Risk Identification FMECA- Failure Modes, Effects & Criticality Analysis Risk Analysis Determine consequence of failure Assess probability of failure Risk Evaluation Determine risk cost of exposure Identify risk reduction opportunities Assess Risks Risk Treatment Select treatment options- ODRM Implement preferred treatment option Monitor and review 4.2 Risk Management Framework within Council Council s Risk Management framework consists of a Risk Management Policy, a Risk Management Implementation Plan and is supported by a risk register. When printed this is an uncontrolled document Page 23

30 Council is subject to corporate, strategic and operational risks as illustrated below: High level corporate risk (corporate risk register) Output Short-term actions Strategic infrastructure risks Works Programme Operational risks Procedures (QA, Safety, Operating) Design Standards Corporate Risk Council has in place corporate processes to manage risks within the organisation, comprising Corporate risk register Risk Policy Risk Register A Risk Management Committee comprising of management representatives meets on a regular basis and oversees the performance of Loddon s risk management practices Risk Management Policy Council through its Risk Management policy, Policy CS 09, adopted by Council on 27th November 2006, is committed to adopting management principles that will successfully identify, analyse, assess, treat, monitor and review risks associated with its operations. Council will utilise a combination of proactive and reactive methods to ensure its risks are kept to a minimum Risk Management Implementation Plan Council maintains risk management implementations plans for principal infrastructure and services to minimise the likelihood of non-achievement of critical business objectives. The risk management implementation plan is designed to ensure that: All significant operational and organisational risks are understood and identified. The highest risks within a one year planning horizon are identified and addressed. Risk reduction treatments are implemented which best meet business needs. Responsibilities for implementing and managing risks are allocated to specific staff. When printed this is an uncontrolled document Page 24

31 4.3 Risk Assessment Process Step 1: Risk Identification Council has undertaken a review for potential risks. The risks identified have been described and their potential impacts and current controls assessed in the corporate Risk Register. On the road network, risks are identified by undertaking inspection regimes as detailed in Council s Road Management Plan. Road defects established during programmed inspections are recorded into a database in the field utilising tablet computers Step 2 & 3: Risk Analysis and Evaluation The risk analysis considers both the likelihood and consequence of events and asset risks. The probability that a risk could occur can be considered using the Risk Qualitative Measures of Likelihood below, as detailed in table 2 of Council s Risk Management Policy Level Descriptor Example Detail Description A Almost Certain Is expected to occur in most circumstances. B Likely Will probably occur in most circumstances. C Possible Might occur at some time. D Unlikely Could occur at some time. E Rare May occur only in exceptional circumstances. The consequences that a risk could occur can be considered using the Qualitative Risk Analysis Matrix Level of Risk, as detailed in table 3 of Council s Risk Management Policy. Consequences Likelihood Insignificant 1 Minor 2 Moderate 3 Major 4 Catastrophic 5 A (almost certain) H H E E E B (likely) M H H E E C (moderate) L M H E E D (unlikely) L L M H E E (rare) L L M H H The following Risk Analysis Matrix included in Council s Road Management Plan is an adaption of the above qualitative Risk Analysis Matrix to suit Council s Road Hierarchy Roads Streets & Footpaths - Overall Risk Matrix Local Roads and Street - Overall Level of Risk Road Likelihood Consequences Hierarchy Insignificant Minor Moderate Major Catastrophic RSC Unlikely VL L ML M H TSC Unlikely VL L ML M H RSA Rare VL L ML M H TSA Rare VL L ML M H When printed this is an uncontrolled document Page 25

32 RGC Rare VL L ML M H RGA Rare VL L ML M H TGA Rare VL L ML M H RGM Rare VL L ML ML M TGM Rare VL L ML ML M RF Rare VL L L ML ML TF Rare VL L L ML ML RUF Rare VL VL L L L TUF Rare VL VL L L L Council s Road Management Plan contains risk tables with predetermined levels of risk for each defect type, for each road hierarchy. These are detailed in Council s Road Maintenance Tables, with a sample in the Road Management Plan Step 4: Treat Risks The risk tables for each defect type are used in Council s Maintenance Management program, Road Asyst, to allocate orders for works to be completed within documented response times, detailed in the following table Level of Risk Result Description Action H High risk - urgent response rectify if possible or provide appropriate warning by end next working day rectify within 5 working days or provide appropriate warning M Medium risk rectify within 4 working weeks or provide appropriate warning ML Medium to low risk rectify within 3 months or provide appropriate warning L Low risk - routine rectify in annual maintenance program procedures but as resources permit VL Very Low risk rectify as resources permit 4.4 Project Risks Council has developed and utilises a Project Scoping and Prioritising process to prioritise capital projects for local sealed road and street reconstruction, shoulder sheeting and gravel road resheeeting programs. The process utilises the following criteria as appropriate for the particular asset type Road hierarchy Traffic volume Commercial vehicle count School bus routes Crash statistics Number of houses serviced Significant business or industry route Pavement condition Number of traffic lanes Maintenance costs When printed this is an uncontrolled document Page 26

33 4.5 Operational Risks Operational risks are addressed through Occupational Health and Safety processes Safe working Practices These include safety committee inspections of work places, pre-start checks for major plant items and tool box meetings at the commencement of projects. 4.6 Contingency Plans Disaster Recovery and Business Continuity Plan The objectives of Council s Disaster Recovery and Business Continuity Plan issued 1 st February 2006 are:- To define procedures to effectively minimise losses from disasters To provide a mechanism for re-establishment of services and operations as quickly and efficiently as possible after an incident To minimise the affects on the public, staff and Council 4.7 Risk Accounting and Authority Risk management accountability and authority within Council for identifying and managing risk is described in CS09 Risk Management Policy as detailed below Manager Organisational Development Council s Manager Organisational Development will undertake the co-ordination role of Loddon s risk function and will be responsible for all reporting requirements, including the collation and review of a complaint risk register (refer AS4360/2004). The Manager Organisational Development in consultation with relevant parties will contribute to all facets associated with establishing Loddon s risk management context. The Manger Organisational Development will be the primary contact for risk issues and queries with Civic Mutual Plus and the general public. The Manager Organisational Development will also provide advice and support to Line and Executive Managers on current risk issues. When printed this is an uncontrolled document Page 27

34 4.7.2 Executive Managers Executive Management will set the strategic context of Loddon s risk management and will review this process annually. Executive Management will direct Line Managers and Staff on the administration of risk issues in accordance with this process. Executive Management in consultation with the Manager Organisational Development will provide final authorisation of Loddon s annual risk register Managers Managers will be responsible for overseeing the day-to-day management of risk within their relevant department. Managers will be required to develop and maintain a register of risks relevant to their department in line with annual goals set by the Risk Committee. Managers will be responsible for identifying risk within an organisational context as well as contributing towards the strategic context of Loddon s risk management plan. Managers may delegate various responsibilities of risk, such as inspections to suitably qualified staff within their teams when required (i.e. Team Leaders). Managers or suitably qualified delegates within their department will assess, prioritise and reduce risks in accordance with Australian assessment standards (refer AS4360/2004) Risk Committee A Risk Management Committee comprising of management representatives will meet on a regular basis and will oversee the performance of Loddon s risk management practices. The Committee will recommend the content of its Risk Register and Annual Strategy and will provide final recommendation(s) to Executive Management. The Committee will also provide strategic advice on continual improvement, whilst also overseeing the implementation of recommendations from Council s insurer CMP (Civic Mutual Plus) All Employees Employees are responsible to work in co-operation and consultation with Management to ensure ongoing active prevention of damage or loss of any property due to fire, water, theft or burglary or other means. Employees are also accountable for the property and assets in their direct control, and should operate and maintain this property in accordance with approved Council procedures. When printed this is an uncontrolled document Page 28

35 5.0 Lifecycle Management Plans 5.1 Introduction This Section of the plan outlines what is planned in order to manage and operate the assets at the agreed level of service (defined in the plan) while optimising the lifecycle costs Section Contents Lifecycle management plans are defined for the following key asset groups: Road Pavements including sealed and unsealed roads The lifecycle management plans outline for each asset: The objectives for the asset group. Supporting data for each asset group including: - Key life-cycle management issues - Physical parameters and value - Asset capacity/performance - Asset condition - Historical expenditure The management tactics to achieve the levels of service defined in Section 2, identified in the following work categories: - Operations and maintenance - Renewals - New works Work Category Definitions Work categories used in the lifecycle plans are defined below. Operations Asset operations activities are necessary to keep the asset appropriately utilised. Operational expenditure is not clearly distinguished from maintenance expenditure in Council s financial systems. Typical operational activities include: Drainage cleaning Emergency callout Storm cleanup Sign works Tree trimming Roadside vegetation maintenance Street cleaning Routine Maintenance Is the day to day work required to keep assets operating at required service levels, and falls into two broad categories: Planned (proactive) Maintenance: Proactive inspection and maintenance works planned to prevent asset failure. When printed this is an uncontrolled document Page 29

36 Unplanned (reactive) Maintenance: Reactive action to correct asset malfunctions and failures on an as required basis (i.e. emergency repairs). Maintenance is defined in each section of the lifecycle plan, and includes: All repairs/maintenance which are not classified as renewals A key element of advanced AM planning is determining the most cost-effective mix of planned and unplanned maintenance. Renewals These works are defined as being: The renewal and rehabilitation of existing assets to their original size and capacity, or, The replacement of the entire component of the asset with the equivalent size or capacity, or, That portion of the replacement component of the capital works which restores the assets to their original size and capacity). Renewals expenditure includes the following: Resurfacing of roads - Chip seals. - Resheeting gravel pavements - Resheeting gravel shoulders of narrow sealed pavements Rehabilitation of roads - Replacement of existing pavement and surfacing with an equivalent structure that is generally applicable for a long length of road. Reconstruction of roads - Associated with improvement to alignment, geometry, drainage and other features of the road and only the portion that replaces the original road is regarded as renewal. New Works Include acquisition, purchase or inheritance of an asset. Projects (including land purchase) for the extension or upgrading of assets required to cater for growth or additional levels of service, including: o Works which create an asset that did not exist in any shape or form, or o Works which improves an asset beyond its original size or capacity, Asset Disposal Costs associated with the removal or disposal of decommissioned assets Maintenance Council undertakes maintenance of its local road network as detailed in its Road Management Plan, utilising its in-house works teams. When printed this is an uncontrolled document Page 30

37 5.1.4 Inspections Inspections are designed to identify defects that create a risk of damage or inconvenience to the public. The inspections are aligned with the hierarchy Personnel undertaking the inspections have been trained to undertake the activity and are conversant with the Council s inspection procedures and safety requirements. Council undertakes various levels of inspections at frequencies as shown in Local Road and Street Inspections below, and as detailed in its Road Management Plan, created under the Road Management Act When printed this is an uncontrolled document Page 31

38 Local Road and Street Inspections Inspection Frequency Road Hierarchy Inspection Type Cyclic Inspections Maintenance & Hazard Night Inspection Level 1 Local Bridges Level 2 Local Bridges Pavement Condition Seal Condition Extent Rural Roads & Town Streets Rural Roads & Town Streets All Rural Rd & Town St bridges All Rural Rd & Town St bridges Rural Roads & Town Streets Rural Roads & Town Streets RSC RSA RGC RGA RGM RF & RFA 3 mths 3 mths 2 yrs 2 yrs Reactiv e only Reactiv e only RUF TSC TSA TGA TGM TF TUF Inspection By Reactiv e only 3 mths 3 mths 2 yrs Reactiv e only Reactiv e only Reactiv e only Inspector 5 yrs 5 yrs 5 yrs 5 yrs Nil Nil Nil 5 yrs 5 yrs 5 yrs Nil Nil Nil Inspector 6 mths 6 mths 6 mths 6 mths 6 mths 6 mths N.A. 6 mths 6 mths 6 mths 6 mths 6 mths Nil Inspector 2 yrs 2 yrs 2 yrs 2 yrs 2 yrs 2 yrs N.A. 2 yrs 2 yrs 2 yrs 2 yrs 2 yrs Nil Consultant 3 yrs 3 yrs As req'd As req'd As req'd N.A. N.A. 3 yrs 3 yrs Not Done As req'd 3 yrs 3 yrs N.A. N.A. N.A. N.A. N.A. 3 yrs 3 yrs N.A. N.A. N.A. N.A N.A. N.A. Sealed pavements by Consultant Consultant. When printed this is an uncontrolled document Page 32

39 5.1.5 Intervention Levels Intervention levels support the service levels provided to the community as they define the trigger points for certain works to be carried out. They are also very useful in the development of ongoing maintenance programs. Having defined intervention levels also assists councils in being able to organise maintenance works on a risk priority basis, rather than be susceptible to carrying out works on a chronological basis, or as a result of pressure from individuals within the community. Intervention levels assist in providing a sound legal argument as to why certain works were, or were not carried out. Details of intervention levels (Tolerable Level of Defects) are provided in Section 1.2 Tolerable Defect Levels and Rectification Tables in Council s Road Maintenance Plan and in Appendix 9.5 Sample Tolerable Defect Levels and Rectification Table in Council s Road Management Plan Performance Monitoring The following activities are undertaken in the monitoring of the assets: Asset Group Sealed Pavement Sealed Surface Performance Monitoring Activities Condition assessments undertaken each 2 years Condition assessments undertaken each 2 years Any overall changes in asset condition identified are used to indicate asset performance and confirm the effectiveness of Council s maintenance and renewal tactics Consultation Process For managing and operating road assets, public consultation is undertaken through Council public forums. The outcomes of Council Public Forums are used to gauge community acceptance of current asset performance and reaction to proposed changes in service levels to enable viable asset management. At the last community forum in October 2007, community reaction varied from negative response to no response to proposals to:- reduce the extent of the rural sealed road network by eliminating renewal works on sealed roads with traffic counts of less than 50 vpd, resulting in these roads reverting to gravel road surface over an extended period of time increase the level of rates income by up to 20% to provide additional funding for capital renewal works These issues have been used in drafting this road asset management plan. Council extensively advertised its draft for public comment in April A total of 38 written submissions were received. When printed this is an uncontrolled document Page 33

40 Council considered submissions in regard to the draft at a Council Forum on 4 th June Thirty people, who had sent in submissions, attended the meeting, at which thirteen people made verbal presentations in support of written submissions. This includes amendments in response to community concerns. Details of submission are contained in a document entitled Community Consultation on Draft, June Boundary Issues Council s road network connects to those of seven other adjoining municipalities identified below: Gannawarra Shire Campaspe Shire Greater Bendigo City Mount Alexander Shire Central Goldfields Shire Northern Grampians Shire Buloke Shire Boundary Agreements with adjoining municipalities were formulated and adopted in the late 1990 s. Because all boundary roads are rural in nature there are no assets, such as footpaths, on the same section of boundary road reserve where operational responsibility needs to be shared. A more practical approach was adopted, with agreements being reached to equitably allot operational responsibility for full road width for specific sections of boundary road to each municipality. The sections of boundary roads for which Loddon is the Operational Road Authority are included in Loddon Shire Council s Register of Public Roads. Those sections for which Loddon Shire Council is not the Operational Road Authority are listed in the adjoining municipality s Register of Public Roads. The boundary with Northern Grampians Shire is the centre of the Avoca River, over which there are several bridges. Northern Grampians Shire undertakes the operational responsibilities for these bridges, with costs being equally shared with Loddon Shire Council. Part of the boundary with Campaspe Shire is the western bank of the Bendigo Creek. The bridges over the Bendigo Creek are therefore solely in Campaspe Shire. Thus Campaspe Shire Council is the Coordinating and Operational Road Authority for those structures Council Ownership Functions Current issues in relation to road asset management functions include: The satisfactory control of excavations and works on the road reserve by utility operators and contractors The construction of driveway vehicle entrances to private properties When printed this is an uncontrolled document Page 34

41 Road and Street Openings Utilities Management Council manages the road reserve area, however utility owners have legal rights of access to open the road to install and maintain their assets. Utilities works on the road reserve are controlled using the consent process under the Road Management (Works and Infrastructure ) Regulations 2005 Vehicle Crossings There are no current formalised procedures for controlling / monitoring the construction of vehicle crossings and entranceways by private parties, posing a potential future risk in terms of asset quality. The need to develop a formal system is identified in section 11.3 Asset Management Improvements. 5.2 Pavement Asset Group This section identifies objectives and additional information for the management of this asset group Objective Council s objective for road pavements is to provide a sustainable road net work that Provides links to communities Supports economic and social wellbeing Balances road safety with financial and environmental objectives Background Data Overview Some of the life-cycle issues that affect road pavements are: There is a significant investment required to maintain and renew Council s extensive rural sealed road network There is a diverse range in quality and strength of rural sealed pavements. There is a significant quantity of sealed pavements which have low traffic volumes, and will require considerable funds to renew There is limited demand to upgrade existing gravel town streets to sealed surfaces to improve amenity Hierarchy The objective of developing an asset hierarchy is to provide a suitable framework for assets, which segments the asset base into appropriate classifications. The hierarchy is based on a combination of asset function and asset type. The hierarchy must however meet short and long term asset management requirements. When printed this is an uncontrolled document Page 35

42 The intent of the asset hierarchy is to provide the framework in which data is collected, information is reported and decisions are made. The road hierarchy adopted and detailed in Council s Road Management Plan is defined in the following table. Road Hierarchy Hierarchy Code Hierarchy Function Comments RURAL ROADS RSC Sealed Collector Sealed Collector roads distribute traffic between arterials and primary access roads. RSA Sealed Access Sealed Access roads provide primary access to residential properties or other developments or provide for service or tourist traffic. RGC Gravel Collector Gravel Collector roads distribute traffic between arterials and primary access roads RGA Gravel Access Gravel Access roads provide primary access to residential properties or other developments or provide for service traffic, tourist traffic, school buses, or milk tanker traffic. RGM Minor Gravel Minor Gravel roads provide access to rural properties, or alternative access to rural residential properties. RF Formed Rural formed roads provide access to rural properties RUF Unformed Rural unformed roads provide access to rural properties RFA Fire Access Rural Fire Access roads provide access for fire fighting purposes These roads will not be rehabilitated in the future. Generally located on 'unused' road reserves. TOWN STREETS TSC Sealed Collector Sealed Collector Streets distribute traffic between arterials and primary access roads. TSA Sealed Access Sealed Access streets provide primary access to residential areas or other developments or provide for service or tourist traffic. TGA Gravel Access Gravel Access streets provide primary access to residential property or other developments or provide for service or tourist traffic. TGM Minor Gravel Minor Gravel streets provide alternative access to properties. TF Formed Formed streets provide access to properties. TUF Unformed Unformed streets provide access to properties. When printed this is an uncontrolled document Page 36

43 Asset Performance Pavement Condition Moloney Asset Management Systems reported in 2003, following their third inspection of Council s sealed road network, that the sealed roads of the Loddon Shire are in good condition and have been very well managed over their recent history. However sealed pavements had declined in condition by 9 % to an average condition of 3.5, and sealed surface had declined by 32 % to Moloney, in his report produced following the November/December 2007 assessment of the condition of the sealed road network, states that the sealed road pavements within Loddon Shire are in poor overall condition, but are clearly well managed with the resources available. It is noted that the number of urgent failures and the percentage of assets in worse than condition 7 and 8 is better in Loddon than in the average of 39 other municipalities. Asset Value The last asset revaluations were undertaken in The following table identifies the current valuation of the pavement assets, as at 30 /6/2007 Type Area (m2) Replacement Written Down Value Cost Sealed Formation 8,034,171 6,979,797 6,979,797 Bases 4,530, ,768,383 75,188,710 Surface 4,530,883 12,202,396 7,260,851 Unsealed Formation 27,866,644 15,536,394 15,536,394 Bases 6,288,122 26,122,585 15,945,176 Total 184,609, ,910,928 Historical Expenditure The table below summarises the historical expenditure for the pavement asset group over the last 3 years (000 s) 04/05 05/06 06/07 Operations Maintenance ,400 Resealing Renewal 1,224 1,340 1,341 TOTAL 3,482 4,069 4,057 Table: Road pavements Historical Expenditure ($000) When printed this is an uncontrolled document Page 37

44 5.2.3 The Renewal Funding Gap Loddon, like so many rural councils, faces a significant funding short fall in the financial resources it should be providing to meet its long term responsibility to renew the existing road pavement network. Prior to this the renewal gap was $1.8 million per annum based on:- average pavement renewal expenditure over the 3 year period 2004/05 to 2006/07 average annual renewal expenditure required based on o asset quantity o effective lives of sub-assets o current unit renewal costs When printed this is an uncontrolled document Page 38

45 6.0 Acquisition Plan - New Works Strategies Council is aware of the difficulty in funding the maintenance and renewal of the existing road network, and therefore is very cautious about undertaking the creation of new assets with the associated increased commitment for maintenance and renewal. The following strategies are adopted in this. 6.1 Upgrade Works Strategies Upgrading rural gravel pavements to sealed pavements Extension of the rural sealed road network will not generally be undertaken. However when Annual Average Daily Traffic exceeds 100 vpd, a road may be considered for construction and sealing to widths detailed in Design and Construction Standards for Rural Roads in section 2.8, subject to a detailed evaluation of the project including an analysis of current and future maintenance/renewal costs, other available routes and available funding Sealing of town streets Gravel town streets may be upgraded to a sealed surface from time to time within Council s road construction asset preservation, safety or amenity programs. Funding of these programs is not guaranteed in any given year. All potential road construction projects are scoped and prioritised in accordance with Council s approved processes. Upgrade works may also be undertaken in accordance with the special charges scheme defined in Appendix 14.1 Rural Township and Rural Residential Unmade Road Network Strategy Sealing roads in a Rural Living Zone The provisions of shall also apply to those roads covered by the rural living zone Widening existing rural sealed pavements When Annual Average Daily Traffic on a single lane rural seal exceeds 200 vpd or 35 commercial vehicles per day consideration will be given to widening of pavement and seal to the widths shown in Design and Construction Standards for Rural Roads in section 2.8. Widening will generally be undertaken when the next pavement rehabilitation is due, subject to the availability of funds. When printed this is an uncontrolled document Page 39

46 6.1.5 Upgrading roads to all weather access in Farming Zones Rural Areas Land use planning has the potential to affect the supply of the all weather road network by permitting new development, including dwellings, in rural areas (i.e. Farming and Rural Living zoned land). To contain increased commitments to maintenance and renewal costs, Council needs to restrict extension of the all weather road network. This is done primarily by encouraging new development, including dwellings, to locate along the existing all weather road access network. Farming Zone If a dwelling is proposed on an allotment greater than 40ha in area and an existing all weather access road is available with a road hierarchy of RGC or RGA then the use of the allotment for a dwelling is permitted and no planning approval is required.* * [Note: No planning approval is required, provided there are no overlays or other planning scheme clauses that require planning approval such as new entrances to VicRoads controlled roads (RDZ1)] If a dwelling is proposed on a property in the Farming Zone where there is no existing all weather access available (i.e. road hierarchy is RGM, RF or RUF), irrespective of the size of the property and other elements of the planning scheme, planning approval for the use and development of land is required. For Council to give planning approval for a dwelling in the Farming Zone, Council must be satisfied that the proposal meets the requirements for legitimacy in the Farming Zone. With respect to the road network, Council will: firstly ensure that the dwelling be located to use any existing all weather access road wherever possible, or allow a road upgrade to a higher standard of road provided: o the extent of the upgrade is minimised o all upgrade works are at full cost to the developer. If Council is of the opinion that the proposed use is not consistent with the purpose of the Farming Zone, then Council will refuse to grant a permit. This approach will support Council s Rural Living Strategy. 6.2 Subdivision development There is no demand for significant subdivisional development in the near future. When printed this is an uncontrolled document Page 40

47 6.3 New Works Expenditure Forecasts New and upgrade works may include: New roads or upgrade of road surface type Pavement widening Safety improvements Isolated intersection treatments No allowance is made for new and upgrade works in the 20 year financial forecast. These projects will only be funded when there is significant external contribution or where there are not sufficient projects available to satisfy the annual capital renewal commitment. When printed this is an uncontrolled document Page 41

48 7.0 Operations and Maintenance Plan 7.1 Operations Operational activities relate to the following: Street Cleaning Tree trimming Roadside vegetation maintenance Storm cleanup Emergency callout Removal of dead animals, accident cleanups Drain cleaning Operations activities are carried out by Council s in-house works teams in conjunction with road maintenance activities under Council s Road Management Plan 7.2 Maintenance Work Definition In the case of carriageway assets, maintenance affects both surfaces and basecourses, and includes: Potholes Surface defects Edge breaks Pre-reseal repair work Maintenance grading (unsealed) Surface and shape restoration (unsealed) Emergency repairs to storm damage, Road opening repairs Principles for road maintenance Road maintenance and operational activities on sealed and unsealed roads are carried out by Council s in-house works teams to the interventions standards and response times detailed in Council s Road Management Plan Principles for sealed pavement maintenance Under the renewal plan detailed in section 8.0, certain sealed pavements, as detailed in Appendix 14.2 Low Trafficked Rural Sealed Roads on which Renewal as a Sealed Road will be Discontinued, will progressively degrade into gravel road pavements. However sealed road maintenance will be continued on remaining existing sealed sections of these roads until the surface reverts to gravel. All defects are rectified before sealed road surfaces are resealed. When printed this is an uncontrolled document Page 42

49 7.2.4 Principles for unsealed pavement maintenance Subject to changes in demand pavements of Minor Gravel Roads (RGM & TGM) will be left to degrade, over an extended period of time, into formed only roads. Only limited grading and tree trimming, if deemed necessary by Loddon Works, may be undertaken if finances permit. On Rural Formed Roads, only limited grading and tree trimming, where deemed necessary by Loddon Works, may be undertaken if finances permit. Rural Unformed Roads will not generally be graded, but impassable sections, where no alternative route is available, may be graded to provide access for utility type vehicles only. Tree trimming will generally not be carried out, but tree trimming to accommodate a utility type vehicle may be undertaken where deemed necessary, by Loddon Works. As pavements of former sealed pavements with less than 50 vpd degrade to unsealed pavements, these will be maintained as unsealed pavements Maintenance Expenditure Forecasts An analysis of expenditure in indicates that maintenance costs for sealed roads are about 1.5 times the costs for unsealed roads i.e. Sealed maintenance cost = 0.14 $/sq m Unsealed maintenance cost = 0.10 $/sq m Assumptions Maintenance costs on sealed roads, identified for discontinuing renewal as sealed roads and eventual downgrading to gravel roads, will substantially continue for the next 10 to 20 years. There will be no significant net increase in the overall extent of the road network. Routine maintenance expenditure required on road pavements is estimated at $1,400,000 per annum Operations expenditure is estimated at $756,000 per annum The 20-year financial forecasts incorporate these amounts When printed this is an uncontrolled document Page 43

50 8.0 Renewal/Replacement plan 8.1 Physical data The total length of the road network by hierarchy/surface type is shown in the figure below, which illustrates that 20% of the road length in the shire is sealed, 53% has gravel surface and 27% is unsurfaced. Wearing Course Hierarchy SC Hierarchy SA Hierarchy GC Hierarchy GA Hierarchy GM Hierarchy F Hierarch y UF Sealed Unsealed Total Length (km) Length of Road by Surface and Hierarchy Total Length (km) Total Length (m) F 21% UF 6% SC 17% SA 3% GC 5% GM 24% GA 24% 8.2 Renewal/Replacement Tactics The following tactics have been adopted in preparing this renewal plan to reduce the gap between renewal funding available and the funding required Reduce Level of Service Low trafficked rural sealed pavements The unit costs to renew and maintain sealed roads are triple that for the cost of unsealed roads. Therefore, converting existing sealed roads (that no longer warrant being sealed) back to unsealed would reduce the current funding shortfall. When printed this is an uncontrolled document Page 44

51 Identification of such roads shall occur in a two staged process. Stage 1 shall involve a review of all sealed roads using existing traffic volume data to identify those which appear to have an Average Annual Daily Traffic (AADT) of less than 50 vehicles per day and less than 10 commercial vehicles per day. Stage 2 shall involve a detailed investigation of the roads identified in Stage 1 as follows:- 1 Seasonal heavy traffic Additional traffic counts shall be undertaken throughout the year to identify any seasonal variations in commercial vehicle use. An assessment of the likely impact of these variations on maintenance and renewal costs if the road became unsealed shall be made. 2 Flooding A review of flooding records shall be undertaken to identify whether any sections of the road are subject to flooding. Irrespective of any other considerations made in Stage 2, those sections subject to flooding shall be retained in a sealed condition. 3 Reactive and dispersive sub-grade material. A review of maintenance, rehabilitation and construction records shall be undertaken to identify whether in-situ material exists that is dispersive and/or reactive. If deemed necessary, laboratory testing may also be undertaken. An assessment of the likely impact of such sub-grades on maintenance and renewal costs, if the road became unsealed, shall be made. 4 Emergency service Each emergency service organization operating within the Shire shall be asked to assess what impact the change of the road from sealed to unsealed would have on its ability to meet its service obligations. 5 Future Demand An assessment of the potential future demands on the road shall be undertaken by Loddon Shire s Economic Development department. 6 Topography, road alignment and other infrastructure An assessment of the local topography and road geometry shall be undertaken to identify sections of road that would tangibly increase the risk of vehicle accidents, or increase maintenance costs, if changed from sealed to unsealed. Irrespective of any other considerations made in Stage 2, those sections approaching railway crossings and vertical and horizontal curves (where oncoming traffic cannot be seen) shall be retained in a sealed condition. 7 Continuity of standard of service An assessment of the safety impact of changing within a given road length from sealed to unsealed shall be made. Stage 2 shall be conducted on any road identified in Stage1 prior to any renewal works being undertaken on that road. The results of the Stage 2 investigation shall be reported to Council with a recommended action to either retain the road as sealed or to include it on the list of roads in Appendix 14.2 Low trafficked rural sealed roads on which sealed road renewal will be discontinued. When printed this is an uncontrolled document Page 45

52 This list details those low trafficked roads, or sections of roads, for which sealed surface and pavement rehabilitation will be discontinued. Over an extended period of time as the sealed surface fails, failed sections of pavement will be progressively scarified, reshaped and compacted, returning the road to a gravel surface. Minor Gravel Roads Council s Road Management Plan, made under the Road Management Act 2004, revised in June 2006, includes the cessation of renewal works on Minor Gravel Roads (RGM & TGM). Continuation of this strategy is essential. ` Revise Asset Lives Sealed Surface Analysis of changes in seal surface condition between 1996 and 2003, undertaken by Moloney Asset Management Systems, indicates that a seal life of 18 years could be expected. Moloney s analyse of the November-December 2007 condition survey indicates that a seal life of 24 years to absolute failure could be expected. The practical suggested range is years. Under this increasing the effective asset lives of sealed surfaces from 16 to 18 years spreads the renewal expenditure over a longer period of time, reducing the average annual renewal expenditure required. Unsealed Gravel Pavements and Shoulders of Narrow Sealed Roads Council does not have good data on the condition or expected life of its gravel road network. In the past, a notional life of 20 years has been used. This plan is based on an effective life of 30 years which is approximately the mean life used by 74 Victorian councils for gravel access roads in the 2005 MAV Renewal Gap Project, the recommended upper limit for life used by 74 councils for gravel collector roads, in the 2005 MAV Renewal Gap Project As no previous condition assessments are available for the unsealed road network, no analysis of condition degradation and hence no prediction for unsealed pavement life was made. Moloney suggests that the predicted range of asset life for gravel pavements would be between 20 and 30 years Increase funding for renewal Increase Council rates by 10 % Although acknowledged as a valid option to address the funding gap for infrastructure renewal, at a forum in November 2007 Council advised that it did not consider this to be appropriate in the budget. When printed this is an uncontrolled document Page 46

53 Commit renewal funding. The renewal funding identified in this plan is an annual commitment. Where insufficient projects are available to fully expend this commitment unexpended funds will be:- placed in a road renewal reserve or used to renew other infrastructure or used to fund road improvements such as intersection realignments used to fund upgrades such as pavement widening 8.3 Asset Lives The effective asset lives adopted in this renewal plan are as in table below Table of Effective Asset Lives Asset Sealed surface 18 Sealed Pavement 80 Gravel Shoulder 30 Gravel pavement 30 Effective Asset Life in Years 8.4 Sealed Surface Condition/Age In Loddon, sealed roads have until recently been resealed on a year cycle, depending on aggregate size and condition. This asset management plan is based on a reseal period of 18 years. A condition assessment of the sealed road network was undertaken by Moloney Asset Management Systems in December Condition distribution for sealed surface based on 2007 survey SEALED SURFACE PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Value Within Cond Good - Condition - 10 Poor When printed this is an uncontrolled document Page 47

54 8.4.2 General principles for sealed surface renewal Sealed surfaces on low trafficked rural sealed roads, as dealt with in sections and detailed in Appendix 14.2 Register of Low Trafficked Sealed Roads on which Renewal will be Discontinued, will not be resealed. Projects to be considered on the annual local road reseal program are prioritised using seal surface condition outputs from Moloney Asset Management System, combined with field inspections Expenditure Forecasts for Sealed Surface The required average annual renewal (reseal) expenditure is calculated using the lives shown in the Table of Effective Asset Lives above, average reseal unit costs and total area of sealed surface. The area used incorporates reductions resulting from the strategy to cease renewal on low trafficked rural sealed roads as detailed in Appendix 14.2 Register of Low Trafficked Sealed Roads on which Renewal will be Discontinued. 8.5 Sealed Pavement Condition A condition assessment of the sealed road network was undertaken by Moloney Asset Management Systems in December Condition distribution for sealed pavements based on 2007 survey. SEALED PAVEMENT PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Value Within Cond Good - Condition - 10 Poor When printed this is an uncontrolled document Page 48

55 8.5.2 Age In rural municipalities from the late 1950 s to the late 1980 s there was a massive expansion of the rural sealed road network to accommodate public passion for modern cars, to provide easy access to towns and to provide safe and comfortable routes for school buses, funded primarily from federal sources. Records of pavement construction dates for Loddon Shire Council are incomplete as the records from seven pre-amalgamation municipalities varied in quality and detail. However it is suggest that sealed pavements with an estimated average life of 80 years, have between 25 and 50 years of remaining life. However the reality is that while the average estimated life used is 80 years, the actual life may range between 25 years and 150 years, depending on factors such as traffic loading, pavement material quality, variability of naturally occurring pavement materials, pavement strength, foundation capacity, differing standards and construction techniques used by individual pre-amalgamation councils, inundation by floodwaters and drainage conditions. Degradation curves resulting from the last 2 pavement condition surveys indicate an expected life of 70 years for sealed pavements (Moloney s December 2007 report). Moloney observes that although there has been an accelerated decline in predicted pavement life in recent years, due to the prolonged dry period, the long term effective life could be between 60 and 90 years General principles for sealed pavement renewal Projects considered for the local road construction program are prioritised under council s project scoping and evaluation process. Prioritisation is based on road hierarchy, traffic volumes, whether road is a school bus route, accident statistics, pavement condition and maintenance costs. Renewal of existing sealed pavements will generally consist of rehabilitation including a combination of:- Reworking existing pavement Stabilisation of existing material Resheeting existing pavement Primersealing and sealing rehabilitated pavement. Projects to be considered on the annual shoulder sheeting program are identified by team leaders in the field and prioritised using Council s Project Scoping process Comparative Renewal and Maintenance Costs Sealed road maintenance and renewal unit costs, based on 2006/07 maintenance costs and the asset lives adopted in this plan, are over three times greater than the costs for gravel roads i.e. sealed roads cost 66 cents per square metre while gravel roads cost 21 cents per square metre to renew and maintain. When operational costs are included the total unit rates are 78 cents per square metre for sealed roads and 23 cents per square metre for gravel roads. When printed this is an uncontrolled document Page 49

56 8.5.5 Expenditure Forecasts for sealed pavements The required average annual renewal expenditure for sealed road and street pavements is calculated using the asset lives shown in the Table of Effective Asset Lives, average renewal unit costs and pavement area. The area used incorporates reductions resulting from the strategy to cease renewal on low trafficked rural sealed roads as detailed in Appendix 14.2 Register of Low Trafficked Sealed Roads on which Renewal will be Discontinued. For resheeting of existing gravel shoulders on single lane seals average annual renewal expenditure is calculated using the asset life in the Table of Effective Asset Lives and average unit costs. 8.6 Unsealed Pavement Condition/Age Council has not previously undertaken condition assessments on it gravel road network. In November-December 2007 the condition of Council s Gravel Collector Roads was assessed by Moloney Asset management Services. This condition assessment, based on pavement depth and foundation material, provides a 10 % sample of the condition of the gravel road network. Gravel Collector condition distribution GRAVEL COLLECTOR PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Value Within Cond Good - Condition - 10 Poor When printed this is an uncontrolled document Page 50

57 This distribution may not be a representative sample as it is based on the higher hierarchy of gravel roads, which are renewed and maintained at a higher level than the gravel access roads. Moloney recommends that a full survey of unsealed pavements be undertaken as resources permit General principles for unsealed pavement renewal Gravel Collector and Gravel Access road pavements will generally be resheeted, at the interval (30 years) shown in the Table of Effective Asset Lives in section 8.3, or when maintenance costs become excessive, or when pavements become unsafe through pavement degradation. Projects to be considered on the annual gravel resheeting program are identified by team leaders in the field and prioritised using Council s Project Scoping process. Gravel Collector and Gravel Access road pavements will generally be reworked and resheeted to a compacted depth of 80mm using fine crushed rock, or 100mm using natural gravels. Gravel Collector and Gravel Access road pavements will generally be resheeted to the widths shown for the particular traffic volumes/composition shown in section 2.8 Design and Construction Standards for Rural Local Roads and section 2.9 Design and Construction Standards for Local Town Streets Pavements of Minor Gravel Roads (RGM & TGM) will not be renewed by resheeting as detailed in Council s Road Management Plan. They will be allowed to degrade, over an extended period of time, into formed only roads. Only limited maintenance and tree trimming may be undertaken as resources permit Expenditure Forecasts For gravel road pavements average annual renewal expenditure required is calculated using the lives shown in the Table of Effective Asset Lives, the total area of gravel collector and gravel access roads and average renewal unit rates. When printed this is an uncontrolled document Page 51

58 9.0 Disposal Plan Generally disposal of roads assets is very limited in practice. However Council needs to reduce its maintenance and renewal effort wherever possible. Council will investigate options to close or dispose of roads to relieve it of responsibility for sections of:- dead-end roads which service only one dwelling or property roads which are not required for public use Summary of Financial Expenditure The actual costs associated with disposal of any roads will be insignificant. No cost for disposal is identified in the 20 year financial forecast. When printed this is an uncontrolled document Page 52

59 10.0 Financial Forecast Year Financial Forecast Figure 1 summarises the 20-year financial forecast for road pavement assets from 2008/09 to 2028/29, based on forecasts for each sub-asset group. These costs exclude inflation and GST. This 20 year forecast is based on all the strategies and tactics detailed in this plan being implemented. Expenditure is identified by asset group under the headings of: operations maintenance renewals capital improvements. These are tabulated below 20 Year Financial Forecast $6,000 $000 $5,000 $4,000 $3,000 $2,000 $1,000 $- 2008/ / / / / / / / / / / / /21 Year 2021/ / / / / / /29 Figure 1: 20 Year Financial Forecast Cap improvement Renewal Gap Cap renewal Exp Mtce Exp Operational Exp 20 year Financial forecast 2008/ / / / / / / / / /18 Cap improvement $ - Renewal Gap $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 Cap renewal Exp $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 Mtce Exp $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 Operational Exp $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 Total Req d renewal, mtce, ops Exp $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 Cap improvement 2018/ / / / / / / / / /29 Renewal Gap $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 $ 934 Cap renewal Exp $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 $ 2,096 Mtce Exp $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 1,400 Operational Exp $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 $ 756 Total Req d renewal, mtce, ops Exp $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 $ 5186 Table 1: 20 Year Financial Forecast When printed this is an uncontrolled document Page 53

60 Financial Projection Discussion The key features of the financial projections shown in Figure 1 and Table 1 are listed below. Projected pavement maintenance expenditure is derived from expenditure under the Local Roads Maintenance function for the year , excluding expenditure on bridges and footpaths, and including o pavement maintenance o crack sealing o depression regulation o edge repair o minor reseals o grading o grading with the addition of material Rural sealed roads with less than 50 vpd and less than 10 trucks per day, which under this asset Management plan are to revert back to gravel roads over an extended period of time, will continue to be maintained as sealed roads until they are downgraded. It is assumed that this will not have significant impact on maintenance during the 20 year financial forecast period. It is assumed that pavement maintenance expenditure required will not substantially change during the period of this financial forecast. Projected operations expenditure is derived from expenditure under the Local Roads Maintenance function for the year , excluding bridges and footpaths, entailing both operational and amenity expenditure including:- o drainage maintenance o emergency callout o signs and furniture o storm cleanup o tree maintenance o roadside maintenance o street cleaning Projected renewal expenditure Renewal tactics in this plan reduce the required capital renewal expenditure by $665,000 per annum as detailed below. Strategy Sub asset Reduction in renewal required Increase seal life Seal surface -$100,000 Increase gravel shoulder life Increase gravel pavement life Reduce area of sealed pavement Total reduction in renewal expenditure required Shoulder -$170,000 Gravel pavement -$340,000 Seal surface -65,000 Gravel surface +10, ,000 When printed this is an uncontrolled document Page 54

61 Renewal tactics in this plan increase level of funding available for renewal works by $220,000 per annum as detailed below Strategy Sub asset Increase in renewal funding Use all current capital expenditure on renewal All $220,000 Forecast renewal expenditure is based on average expenditure over the 3 year period 2004/5-2006/7 Capital Improvement/ New /Upgrades No forecast expenditure has been made for new road pavements, i.e. extensions to the network. These will be funded from alternative sources. Upgrade works, such as pavement widening, and improvement works, such as intersection realignment, will be funded from uncommitted renewal funding. Renewal Shortfalls - the Gap The tactics in this plan reduce the original renewal gap for road pavements from $1.819 million to $934, Key Assumptions The following general assumptions have been made in preparing the 20-year expenditure forecasts. (i) (ii) All expenditure is stated in dollar values as at June 2007, excludes GST with no allowance made for inflation over the 20-year planning period. Costs such as corporate administration charges, interest costs, and other indirect overheads have been excluded from operational expenditure. (iii) Renewal expenditure is average annual renewal cost which :-- is based on historical costs over the three year period 2004/5-2006/7 is based on 2.5 % of the sealed road network being progressively downgraded from sealed to gravel road does not account for actual rate of asset deterioration is linked to funding available. When printed this is an uncontrolled document Page 55

62 Renewal expenditure remains constant over the life of the plan as the asset base remains relatively unchanged. (iv) Maintenance and operational expenditure, based on maintenance expenditure in 2006/07, remains constant over the life of the plan as the downgrading of 2.5 % of sealed roads to gravel roads is assumed to have no significant impact on the overall maintenance cost during the life of this forecast. This assumption will need to be monitored, once significant quantities of seals are downgraded to gravel roads, to ensure that the appropriate level of maintenance funds is available. (v) Rate and pattern of network development remains insignificant. (vi) Roads to Recovery funding will continue at the present level for the life of the forecast. Significant potential changes to the financial projections shown may result from the factors below. Assumptions have been made as to the average useful lives of the asset groups based of current local knowledge and experience. These need to be monitored and the accuracy improved based on further assessments of asset deterioration. Review of the effective economic life of pavement surfacing and layers has the potential for significant variance in future cost predictions. Increases in road network development. Changes in level of service and service standards from those identified in this AM plan. Any significant changes in external funding such as Roads to Recovery will change the predicted future cash flows Asset Valuation Infrastructure Assets were valued by Terrence Watson, Dip CE, Manager of Infrastructure of the Loddon Shire Council, as at 30 June Valuations are based on fair value, which takes into account the replacement cost of acquiring a modern equivalent asset, less a depreciation amount to reflect the expired service potential of the asset. A condition survey of the sealed road network was carried out by Peter Moloney, Dip CE, CE, MIE Aust, of Moloney Asset Management Services in November A review of carrying capacity was undertaken at 30/6/2007 The adjusted results of the valuation (as at 30/6/07) are shown in the following table: Asset Replacement Cost $ Depreciated Replacement Cost $ Annual Depreciation $ Unsealed road 15,536,398 15,536,394 0 formations Unsealed road 26,122,585 15,945,176 1,164,224 pavements Sealed road 6,979,797 6,979,797 0 formations Sealed road 123,768,383 75,188,713 1,480,035 pavements Sealed road sealed 12,202,396 7,260, ,765 surface Total 184,609, ,931 3,536,024 When printed this is an uncontrolled document Page 56

63 10.4 Funding Strategy The prime focus of this is to reduce the funding gap for road pavement maintenance and renewal as required in the Works and Infrastructure Key Needs identified in the Loddon Shire Council Plan Cash flows identified are to be funded from current sources including Council Rates including commitment of renewal funding as per tactics identified in section Federal Government Funding e.g. Roads to Recovery State Government Grants where available 10.5 Confidence Levels The confidence in the asset data used as a basis for the financial forecasts has been assessed using the following grading system:-- Confidence Grade A B C D General Meaning Highly Reliable Data based on sound records, procedure, investigations and analysis that is properly documented and recognised as the best method of assessment. Reliable Data based on sound records, procedures, investigations, and analysis which is properly documented but has minor shortcomings for example the data is old, some documentation is missing and reliance is placed on unconfirmed reports or some extrapolation. Uncertain Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolation from a limited sample for which grade A or B data is available Very Uncertain Data based on unconfirmed verbal reports and/or cursory inspection and analysis While the assumptions on unsealed road asset lives may be between B and C, the overall confidence level for this plan is B - reliable. When printed this is an uncontrolled document Page 57

64 11.0 Asset Management Practices and Improvements 11.1 Overview This section discusses the status of Loddon Shire Council s current asset management practices for assets and identifies improvements. It also outlines the monitoring and review processes for the asset management plan Asset Management Practices The key Asset Management practices needed to support good Asset Management Plans can be grouped into three broad areas: Processes: The necessary processes, analysis and evaluation techniques needed for life cycle asset management. Information systems: The information support systems which support the above processes and which store and manipulate asset data. Data: Data available for manipulation by information systems to support AM decision-making. Practices in all of these areas, as well as the Asset Management Plan itself, are assessed. Tactics Finally, implementation tactics, covering service delivery, procurement, and organisational arrangements are also part of the asset management process. Information Systems Processes Data Asset Management Plan Tactics (organisational/service delivery) Figure 1: Key AM Practices Processes Table 2.1 below shows the state of current road asset management business processes within Council and possible future (desired) business processes that could be developed or improved. When printed this is an uncontrolled document Page 58

65 Process Asset Management Planning Road Asset Register Condition Assessment Maintenance and Inspection Management Capital Works Programming Business Practice Current Asset Management Planning strategies are implemented as per Council s Asset Management Policy Statement and Implementation Strategy, February 2006, as detailed in 8.5 Asset Implementation Strategy Tasks Current Roads are divided into a series of segments which are recorded on excel spreadsheets. Details are recorded for sub-assets e.g. formation, pavement and surface, and include road name location by distance segment length and width, sub-asset type and description sub-asset condition road hierarchy traffic volumes date of construction Current Sealed pavements are inspected and assigned a condition rating between 0 and 10 which reflects the consumed life of the subasset. i.e. 0 is new, 10 = no service remaining, condition 3 indicates 30 % consumed. For assessing condition of sealed pavements the following are scored roughness rutting profile failed pavement areas overall condition Moloney Asset Management Services undertake condition assessments on sealed roads. Desired It is proposed that unsealed pavements be assessed for condition condition rating to be used, based on remaining pavement depth compared to design depth and pavement quality. Moloney Asset Management Services is currently assessing gravel collector road condition. Proposed that in-house road inspectors undertake condition assessment on gravel access roads. Current Road inspectors undertake field inspection of defects and hazards at the frequencies prescribed in Councils Road Management Plan. Work orders are produced detailing defects, location and completion date required to comply with response times detailed in Road Management Plan. Details of repairs are documented to confirm compliance with Road Management Plan. Desired Develop action plan to identify issues of non-compliance with the Road Management Plan and provide documentary evidence of how issues addressed. See CMP Audit Report section 3.3 Current Projects identified by team-leaders, infrastructure staff or works staff for consideration in the annual reconstruction and resheeting programs are subjected to prioritisation under Council s Project Scoping process, based on road hierarchy, traffic volumes, When printed this is an uncontrolled document Page 59

66 whether road is a school bus route, accident statistics, pavement condition and maintenance costs. Projects to be considered on the annual local road resealing program are prioritised using seal surface condition outputs from Moloney Asset Management System, combined with field inspections. Road Infrastructure Current Valuation. Road Assets are valued by the Manager Infrastructure, based on fair value, which takes into account the replacement cost of acquiring a modern equivalent asset, less a depreciated amount to reflect the expired service potential of the asset. The depreciated amount is calculated using the condition and the effective life of the individual sub assets. Sub-asset Condition is as per condition survey carried out by Moloney Asset Management Systems. Table 2.1 Road Asset Management Process Status Systems Table 2.2 below defines the status of information systems used and considered required to support asset management at the council. Process Road Asset Register and Asset Condition Assessment Maintenance and Inspection Management Business System Current Moloney Asset Management System - Roads Module This is an excel spreadsheet program where data is input in a data retention file from where a number of Visual Basic programs generate management and accounting reports for formation, sealed pavement, sealed surface and unsealed pavement. Roads are divided into a series of segments which are recorded on excel spreadsheets. Details are recorded for sub-assets e.g. formation, pavement and surface, and include road name location by distance segment length and width, sub-asset type and description sub-asset condition road hierarchy traffic volumes date of construction Current Road Asyst Maintenance and Inspection Management Module Council utilises Road Asyst (Pitt & Sherry/Moloney Asset Management Systems) program, based on Microsoft SQL data base, to control maintenance management in accordance with Council s Road Management Plan. The program utilises road segment data, located on Council s GIS, based on road data from Moloney Asset Management Systems spreadsheets. Inspection schedules based on frequencies detailed in Council s Road management Plan are produced from Road Asyst. Road inspections using portable tablet computers equipped with Arcpad Mobile Map, are used to record defect and hazard inspections in the field. When printed this is an uncontrolled document Page 60

67 Spatial Mapping Road Infrastructure Valuation. Customer Requests Inspection data is downloaded into Road Asyst, which is used to produce works orders detailing defects to be repaired, location and required completion dates to comply with response times in Council s Road management Plan. On completion of works, date of completion and quantity of defect repaired is recorded on Road Asyst, to confirm compliance with Road Management Plan. Current MapInfo (GIS) As a participant in the Local Government Access Program council utilises MapInfo as its spatial mapping system to graphically represent its assets, supported by tabulated asset data. Mobile Map Is software enabling MapInfo to be used in conjunction with Pocket Personal Computers, used to facilitate collection of field data for asset management purposes. Current Moloney Asset Management System - Roads Module Basic data, entered in St-Data2 file, is operated on by a number of Visual Basic programs to generate valuation reports for each individual road segment for formation, sealed pavement, sealed surface and unsealed pavement. The valuation reports provide details of Replacement Value, Written Down Value, Accumulated Depreciation and Annual Depreciation. Current Works Request System Council operates an in-house request system called Works Request System based on a Microsoft Access data base program. Table 2.2 Information Systems Status Data Table 2.3 identifies information needs for council to support effective asset management. Data Asset Hierarchy Asset Identification Attribute Data Business Requirements Current Each segment has an allocated road hierarchy which is recorded in the road register spreadsheets ( St_data2 file in Moloney Assets Management Systems - Road Module) Current Each individual road segment has a unique identification number recorded in the road asset register spreadsheet. For each segment each sub-asset, e.g. formation, pavement, sealed surface, is identified by a sub-asset code On sealed roads, km posts are located every 2 km to facilitate easy identification of segments. All road segments are individually identifiable on Council MapInfo GIS. Current Each sub-asset has its attributes such as width, detailed in columns of the road asset register spreadsheet (St_data2 file in Moloney Asset Management Systems program). The attributes are available on Council s Map Info GIS. When printed this is an uncontrolled document Page 61

68 Maintenance History Acquisition History Condition History Current Maintenance history is recorded using Road Asyst Maintenance and Inspection Management Module to record location, type, quantity and when work completed. Current Details of location, sub-asset attributes and quantity of latest acquisitions e.g. pavement rehabilitations, reseals and gravel resheets, are recorded in the road asset register spreadsheet (Stdata2 file on Maloney Assets Management Systems Road Module) Desired The above provides only the latest asset update. It is desirable to have an asset history available, such as reseal history, for a road. To achieve this a database needs to be utilised. Council needs to acquire the Capital Editor Module being developed by Road Asyst. The editor will enable capital information and capital condition data, traditionally contained in the Moloney spreadsheet file, to be fully imported, exported and edited at will and stored live in the Road Asyst SQL database, which will provide a history of data changes. Current Only current asset condition is recorded on the road register spreadsheet. Desired Ideally a history of condition changes is desired to monitor condition deterioration. Road Asyst Capital Editor will enable a history of condition change to be recorded. Table 2.3 Information and Data Status 11.3 Asset Management Improvements Improving the management of Council s road assets is a continual and ongoing process. It is acknowledged that there is always room for improvement and refinement of Asset Management practices as new knowledge emerges, technology advances and customer expectations change. Council s Asset Management Policy Statement and Implementation Strategy, February 2006, identifies the following road infrastructure asset management improvements required beyond the finalisation of an asset management plan for sealed and unsealed roads incorporate asset renewal funding into Strategic Resource Plan investigate and implement systems to facilitate integration of Assert Registers and GIS develop asset rationalisation policy Other key improvements identified are as follows:-- Assessment of condition of gravel road network Deterioration modelling Develop formal system for controlling & monitoring construction of vehicle crossings Develop processes to review road hierarchy e.g. where rural residences are no longer occupied Process for documenting changes required in frequency of maintenance to comply with the Road Management Plan e.g. where gravel road has levels of use higher than the average When printed this is an uncontrolled document Page 62

69 Further Tactics to be Investigated This first edition of the reduces the level of service on rural sealed roads with low traffic volumes, to reduce the renewal cost burden. In future the following tactics need to be investigated Reducing the number of parallel roads with similar destinations For example o Bridgewater Raywood & Sebastian Road o Newbridge Bridgewater (Bridgewater Dunolly and Bridgewater Dunolly) o Richards Road (Prairie West and Boort Mitiamo) o Calivil Mail Road ( Jarklin Yarrawalla and Pyramid Yarraberb) o Yallook Mail Road (Dingee Rd) Requiring community plan projects to be substantially (50%) asset renewal projects Monitoring and Review Processes The is a living document that reflects as closely as practical actual practices necessary to manage the road network AM Plan Review To ensure the plan remains useful and relevant the following on-going process of Road Asset Management Plan review will be undertaken. Formal adoption by Council of the including Levels of Service. Review and formal revision by Council of the Road Asset Management Plan on a four yearly interval; being once in each council term. Data updates will be provided by officers as required AM Plan Monitoring The following will be monitored to measure the effectiveness of this Road Asser Management Plan. Biennial pavement and seal surface condition surveys by an independent assessor will continue. The results of these condition surveys will be monitored to measure the success of this Road Asset Management Plan. If this properly indicates the costs of road maintenance and renewal and Council funds these activities accordingly, then the completion of works in line with the budget will be monitored. When printed this is an uncontrolled document Page 63

70 12.0 References Loddon Shire Council Documents Asset Management Policy Statement and Implementation Strategy February 2006 Road Management Plan Road Maintenance Plan - Risk Matrices, Intervention Levels, Inspections Forms Community Consultation on Draft, June 2008 When printed this is an uncontrolled document Page 64

71 13.0 Glossary All weather access road (Term specific to his Road Management Plan) Is a road which Has a Road Hierarchy of RGC or RGA and Is constructed to the standard detailed in section 2.7 Design and Construction Standards for Rural Local Roads and Has surface conditions enabling the safe and convenient passage of vehicles during all weather conditions Road Management Plan Is a plan prepared under Division 5 of the Road Management Act 2004 When printed this is an uncontrolled document Page 65

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73 14.0 Appendices 14.1 Rural Townships and Rural Residential Unmade Road Network Strategy Loddon Shire Council Rural Townships and Rural Residential Unmade Road Network Strategy June When printed this is an uncontrolled document Page 67

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75 1. Background Property owners abutting unmade roads frequently raise concerns about dust, potholes, corrugations, blocked open drains and culverts. The most common requests are to have unmade streets constructed or for council to provide a higher level of maintenance The Council has in the past constructed or improved some township streets. This has happened generally on an ad-hoc basis and in the absence of policy guidelines and in most cases without a contribution from abutting owners. Council will be aware through its involvement in the MAV Step program and through the preliminary work carried out on the preparation of Asset Management Plans that Loddon Shire, along with most other Victorian Councils, faces a significant asset funding shortfall (gap). This gap relates only to identified asset renewal and refurbishment and does not take into account the cost and future liabilities in extension to existing assets or the impact of new assets on the gap. The purpose of a Council strategy in relation to unconstructed township streets would be to provide a policy setting for the Council, its ratepayers and residents and to introduce some discipline and equity into decision making for the following reasons: The costs for Council to construct unmade township streets, or increase the standards of maintenance are not sustainable considering future maintenance and rehabilitation requirements of the existing road network. Loddon has approximately 43 kms of gravel collector, gravel access and minor gravel township streets. The estimated cost for basic construction is approximately $8.4 million (no kerb and channel) Abutting landowners should make a contribution to the construction of unmade roads in the same way that property owners in the urban area pay for the cost of road construction and other services when they purchase their subdivided property. The Local Government Act (Sections ) provides the basis for a strategy. The Local Government (Democratic Reform) Act 2004 resulted in changes to the special charge provisions process. The legislation provides: The Council can construct roads through Special Charge Schemes, with Council taking over the care and maintenance of those roads following construction. The proportion of cost between Council and the property owners must take into account the proportion of community benefit. Where the Council contribution for community benefit is less than 33% then the process provides for a vote of property owners. 2. General Approach The construction of unmade township streets and rural residential roads can be addressed as part of an ongoing program of consultation with property owners. It is assumed that a scheme would not be initiated by council, except in exceptional circumstances and would normally result from an expression of interest from a majority of affected property owners. When printed this is an uncontrolled document Page 69

76 A forward program could be developed and updated on an annual basis giving priority to streets that have the highest level of abutting owner support and the highest level of community benefit. A strong commitment to consult with affected property owners is essential as part of the process. The provision of information about procedure, agreement on the scope of works, proposed designs, likely charges and apportionment of costs between properties is critical. 3. The Concept of Special Benefit. Each road construction scheme must have a rational and reasonable basis of apportioning the cost between potential contributors. Special Charge Schemes enable all costs associated with the works to be apportioned amongst property owners who derive Special Benefit from the works. Special Benefit means a benefit over and above that available to persons who are not the subject of a special rate or charge. In coming to a method of equitably apportioning costs, Council is to demonstrate that a property will derive Special Benefit from the works of the Scheme for that property owner to be liable to contribute to the cost of the works. Criteria may include, but not be limited to: Improved access Improved amenity (e.g. suppression of dust, elimination of mud and potholes) Increased property values. Protection from stormwater run-off flooding Improved road safety. Traffic volumes generated by abutting properties (e.g. commercial and business) Special Benefit considerations can take into account a property s physical dimensions (abuttal or area). In this way a reasonable method of apportioning cost to oddly shaped allotments can be adopted. Apportionment of cost will therefore take into account special benefits based on but not limited to: Access Relative area of each allotment Relative abuttal of each allotment including # Frontages # Sideages (normally discounted to 1/3 depending on allotment shape) # Rearages (normally discounted to 1/2) # Splays on corner lots (normally discounted to 1/2). Under the Local Government Act 1989 as amended in 2004, the maximum proportion of Scheme cost chargeable to property owners is calculated by formula after calculating two components the special benefit attributable to property owners and the community benefit. The general ratepayer (through Council) therefore contributes the proportion attributable to community benefit. Property owners within the defined boundary of the Scheme contribute the proportion attributable to the collective special benefit received. This amount is then apportioned individually according to the relative special benefits that exist between properties as outlined previously. When printed this is an uncontrolled document Page 70

77 4. Road Construction Costs Road construction costs can include some or all of the following: Survey and design Document preparation Land acquisition Construction Supervision Scheme administration Finance costs (applicable if repayment options are offered) 5. Payment Options The following payment options may be available to property owners for repayment of apportioned amounts: Single lump sum Council would issue notices for payment one month after the commencement of works on site. Periodic instalments The period is set by Council for staggered repayments of the principle and interest. For example, quarterly instalments may be offered over a 10 year period, with interest reducing as the outstanding balance is reduced. Council would set an interest rate applicable to each scheme at that time. Hardship arrangements. Where the above options can be demonstrated to cause hardship as defined in the Act, there are a range of measures which can be negotiated on an individual basis with property owners. 6. Design and Construction Guidelines. The standard of construction of sealed roads will be in accordance with Council s adopted road hierarchy and designed as appropriate for the area and the traffic concerned. Generally road construction works for larger declared schemes would be subject to a competitive tender process to demonstrate the most economic cost. As a basis for consultation and discussion the following guidelines are proposed. (a) Gravel Collector Road. (providing access to high traffic generation facilities i.e. school, community centre, non abutting major employer etc) Traffic volumes >200vpd. Two through lanes (6.6m) sealed pavement Community benefit at up to 75% of through lanes only Traffic volumes <200 vpd but >50 vpd One through lane (3.7m) sealed pavement. Community benefit at up to 25% of through lane only. When printed this is an uncontrolled document Page 71

78 (b) Gravel Access Traffic volumes < 200 but > 50 vpd. One through lane (3.7 m) sealed pavement. Community benefit at up to 25% of through lane only. Traffic volumes <50 vpd. (includes courts and no through roads) One through lane (3.7) sealed pavement. Community benefit at up to 10%. (That is Council would pay for equivalent of design, supervision and administrative costs.) (c) Construction and sealing of parking lanes. Community benefit at up to 10% only (That is Council would pay for the equivalent of design, supervision and administrative costs.) If bike paths are to be included as part of Council s bikepath network then the community benefit % would be increased to reflect the width of path. (d) Kerb and Channel Construction Kerb and channel construction will normally only be installed where the local conditions require for adequate drainage. I.e. very flat topography... To recognise the impact of grey water in street drainage a greater community benefit factor could be applied in unsewered towns as follows: In unsewered towns community benefit up to 75% Sewered towns community benefit up to 50%. (e) Footpaths When Council adopts a Footpath Asset Management Plan the construction of footpaths will be included in this strategy and the special charges process. With all of the above the Council may wish to provide the opportunity for abutting residents to request a higher standard or level of service with the benefiting owners contributing 100% of the cost. This would still however have an impact on the Council s long term infrastructure liability. 7. Conclusion. The use of special charge schemes is widespread throughout Victorian local government. The adoption by Council of a strategy for rural township infrastructure will assist in determining priorities for new work as well as giving the community the opportunity to achieve infrastructure upgrades that might not ever be funded by Council under current practices. The guidelines as set out above recognise that this would be a significant departure from current practice in Loddon. As such the levels of community (Council) contribution are significantly higher that in most other municipalities. When printed this is an uncontrolled document Page 72

79 14.2 Low trafficked rural sealed roads on which sealed road renewal will be discontinued. Road From To Length km When printed this is an uncontrolled document Page 73