ASSET MANAGEMENT STRATEGY

Transcription

1 SHIRE OF BODDINGTON ASSET MANAGEMENT STRATEGY Version 1 January 2014 Asset Management Strategy

2 Document Control Rev No Date Revision Details Author Reviewer Approver 1 January 2014 Draft Strategy T McCarthy Asset Management Strategy

3 09.19 ASSET MANAGEMENT POLICY POLICY STATEMENT The Shire of Boddington will apply the principles of sustainable asset management to ensure future needs of the community. OBJECTIVES: The objective of this policy is to provide a consistent framework that is aligned and integrated planning and reporting requirements such that: 1. Establishing and routinely updating an Asset Management Strategy (minimum 10 year period) as the primary framework to provide and maintain asset services to current and future generations. 2. Assets are managed in accordance with: a. the requirements of relevant legislation; b. current best practice, taking affordability into account; and c. the needs of the Boddington community. 3. Council manages infrastructure assets. 4. Funding levels to ensure that assets deliver the required levels of service are identified and reported. 5. Levels of service and risks are taken into account in the management of assets 6. Asset performance is measured and appropriately reported against the required levels of service and associated target performance levels. 7. Assets are accounted for in accordance with the requirements of the applicable Australian accounting standards and reporting requirements. 8. Service levels are clearly defined and are realistic and achievable 9. Roles and responsibilities for the management of assets is clearly identified and understood. 10. Creating asset management awareness throughout the Council and our community. 11. assets are understood by Council and the community.

4 OBLIGATIONS: In undertaking Asset Management Council will: 1. Develop an Asset Management Strategy and Asset Management Plans for each of the asset classes in accordance with this policy and review them every four years. 2. Ensure that the Asset Management Strategy and the Asset Management Plans are aligned to Strategic Community Plan and Long Term Financial Plan. 3. Determine future levels of service that are aligned to the community goals and take consultation with the community and affordability into account 4. Make decisions regarding Council s infrastructure assets will take levels of service and affordability into account. 5. Ensure compliance with relevant accounting standards 6. Ensure compliance with relevant legislation. 7. Collect, store, manage and analyse data on assets to inform asset management plans and our decision making 8. Manage the risks of injury, liability and asset failure through asset risk and condition assessments. 9. Develop long term financial plans on the basis of funding the asset management plans in accordance with this policy 10. Taking affordability into account, ensure that best practice asset management practices ROLES & RESPONSIBILITIES Councillors Provide stewardship Adopt the Asset Management Policy, Strategy, and Asset Management Plans Support the use of asset management planning throughout the organisation Make decisions regarding assets in accordance with the Asset Management Policy, Asset Management Strategy and Asset Management Plans Chief Executive Officer Supports the use of asset management planning throughout the organisation

5 recommendations to Council in relation to planning and financial matters or the delivery of services Ensures compliance with legislative requirements Ensures assets are managed in accordance with the Asset Management Policy, Strategy and Plan Director Corporate Services Develops and maintains the Asset Management Policy, Strategy and Asset Management Plan Ensures alignment between the Asset Management Policy, Strategy and the Asset Management Plans with other policies and processes in the organisation Ensure that sound business principles are reflected in the Asset Management Strategy and Plans that are developed Take responsibility for the implementation of the Asset Management Development Program Facilitates best practice asset management Manager Works Manages Road assets in accordance with the Asset Management Policy, Strategy and Plan Manages Park assets in accordance with the Asset Management Policy, Strategy and Plan Manages Drainage assets in accordance with the Asset Management Policy, Strategy and Plan Manages Bridge assets in accordance with the Asset Management Policy, Strategy and Plan considered when making recommendations to Council in relation to planning and financial matters or the delivery of services Principal Environmental Health Officer/Building Surveyor Manages Building assets in accordance with the Asset Management Policy, Strategy and Plan recommendations to Council in relation to planning and financial matters or the delivery of services

6 TABLE OF CONTENTS 1 Introduction Objective Current Asset Management Position Asset Management Plans Gap Analysis Asset Data Processes Strategic Asset Planning Asset Management Systems Systems Integration Asset Management Roles and Responsibilities Asset Management Improvement Plan Urgent and Priority 1 Actions Priority 2 Actions Priority 3 and 4 Actions Asset Management Performance Monitoring Review of Strategy Asset Management Strategy

7 1 INTRODUCTION Asset management is a systematic process used to guide the planning, acquisition, operation, maintenance, renewal and disposal of assets. Its aim is to maximise asset service delivery potential and manage the related risks and costs over their entire lifecycle. In simple terms, asset management is about the way in which the Shire looks after its assets, both on a day-to-day basis (i.e. maintenance and operations) and in the medium to long term (i.e. strategic and forward planning). The following diagram illustrates the typical lifecycle of an asset and associated asset management functions, from planning for the need to create an asset, through to its ultimate disposal, including audit and review of performance of that asset. The Shire is the owner of, and responsible for, the asset management of the assets identified in the following Asset Management Plans: Roads Asset Management Plan Bridges Asset management Plan Buildings Asset management plan Drainage Asset Management Plan Parks Asset management Plan There are a number of issu future associated service delivery. and the current and These issues are as follows: Increasing community awareness and focus of the Shire on economic development and lifestyle Asset Management Strategy Page 1

8 Increasing community expectations about the levels of service delivered by the Shire The introduction by the State Government of Integrated Planning and Reporting requirements Availability of funding for operations and maintenance, future developments and asset renewals Ageing infrastructure Changes in demand as a result of demographic changes and changes to economic activity in the Shire Asset Management plays a key role in addressing these issues by ensuring sustainable and cost effective operations, maintenance, renewal and acquisition of infrastructure assets. It is therefore essential that the Shire utilises sound, affordable and appropriate asset management practices in a consistent way, across all the asset classes. This Asset Management Strategy provides the basis for ensuring that the Shire develops its. 2 OBJECTIVE The objective of this Infrastructure Asset Management Strategy is to provide a set of strategic actions to enable the Shire to improve its asset management practices and systems. This will ensure that the Strategy supports Community Strategic Plan, Corporate Business Plan and Infrastructure Asset Management Policy. The Shire of Boddington Community Strategic Plan is based on a series of five Goals with a number of outcomes linked to each Goal. The aim of the asset strategy is to ensure that Council has the right assets and maintains disposes and acquires assets to achieve the outcomes identified in the Community Strategic plan. ill help achieve the following goals and outcomes. GOAL 1: A STRONG, HEALTHY AND SAFE COMMUNITY Outcome 1.1: An inclusive and supportive community Outcome 1.2: Health, education and family support services that meet the needs of the community Outcome 1.3: Access to sport, recreation and leisure opportunities that support a healthy lifestyle Outcome 1.4: A safe community GOAL 2: A CLEAN, GREEN AND SUSTAINABLE ENVIRONMENT Outcome 2.1: A protected natural environment Outcome 2.2: Water resources sustainability Outcome 2.3: Sustainable waste management Asset Management Strategy Page 2

9 GOAL 3: A BUILT ENVIRONMENT AND INFRASTRUCTURE THAT SUPPORTS A GROWING COMMUNITY Outcome 3.1: Appropriate land use and development Outcome 3.2: Attractive parks, gardens and streetscapes Outcome 3.3: Sustainable asset and infrastructure base GOAL 4: A THRIVING AND DIVERSE ECONOMY Outcome 4.1: A diversified economic base Outcome 4.2: A growing business sector Outcome 4.3: A strong Central Business District GOAL 5: GOOD GOVERNANCE AND AN EFFECTIVE AND EFFICIENT ORGANISATION Asset Management Strategy Page 3

10 3 CURRENT ASSET MANAGEMENT POSITION 3.1 Asset Management Plans First cut Asset Management Plans for each of the above asset classes have been prepared and updated in conjunction with the preparation of this strategy. They are based on current practices and use information and data currently available for each of the asset classes. They have been prepared in accordance with the Australian standard NAMS PLUS template assets. 3.2 Gap Analysis An initial asset management gap analysis has been undertaken. This compares the current asset management practices and systems used in the Shire with the practices and systems that should be used in order to conform to the core level of asset management. The analysis has been based on information provided by Shire officers during the preparation of the infrastructure Asset Management Plan. The gap analysis, scores a range of asset management criteria on a 1-10 basis. In general, the desired score is 6, which represents the core level of asset management and is a situation where data is verified and of acceptable quality and coverage, and where satisfactory written procedures are generally used across the organisation and across all asset classes. The basis of the scoring is shown below. Score Data Procedures/processes 10 Data verified, 100% quality and coverage 9 Data verified, excellent quality and coverage 8 Data verified, very good quality and coverage Comprehensive written procedures used 100% of time by all organisation Comprehensive written procedures widely and consistently used Good written procedures widely and consistently used 7 Data verified, good quality and coverage Good written procedures generally used 6 5 Data verified, acceptable quality and coverage Data verified, poor quality/coverage, or good level of unverified information 4 Reasonable level of unverified data 3 Some unverified data Satisfactory written procedures generally used Satisfactory written procedures but not widely or consistently used Unwritten procedures in most parts of organisation or written procedures but of limited value Unwritten procedures in some parts of organisation or written procedures of no real value 2 Very limited unverified data Unwritten procedures used on ad hoc basis 1 Does not exist Does not exist Asset Management Strategy Page 4

11 The results of the gap analysis are summarised below in a block graph format A core level of competence is considered to be a 6 The assessment of asset capability is based on a self-assessment process completed by the Shire Gap Analysis Assessment Chart - Shire of Boddington Shire of Boddington Current Score Desired score 3yrs Priority (1-3) Asset Knowledge / Data ## ## ## ## ## Asset Classification/ Hierarchy ## ## ## ## Attributes and Location ## ## ## ## ## Condition Data ## ## ## ## ## ## ## ## Lifecycle Cost Data ## ## ## ## ## Valuation, Depreciation and Age/Life Data ## ## ## ## ## ## ## ## ## ## ## ## Asset Knowledge ProcessesAsset Knowledge Processes ## ## ## Asset Accounting/ Valuation ## ## ## ## ## ## ## ## ## ## ## ## ## Strategic Asset Planning Processes ## ## ## ## ## ## ## ## Strategic Long Term Plan ## ## ## ## ## ## ## ## Asset Management Policy and strategy ## ## ## ## ## ## ## ## ## Levels of Service ## ## ## ## ## ## ## ## ## Risk Management ## ## ## ## ## ## ## ## ## Financial Planning and Capital Investment ## ## ## ## ## Asset Management Plans ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## Operations and Maintenance Work Practices ## ## ## ## ## ## ## ## Operations / Maintenance Management ## ## ## ## ## ## ## Critical Assets ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## Information Systems ## ## ## ## ## Asset Register ## ## ## Systems Integration ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## Organisation Context ## ## ## ## ## ## ## ## Organisational Strategy ## ## ## ## ## ## Asset Management Review/Improvement ## ## ## ## ## ## ## ## ## AM Roles and Responsibilities ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## ## The analysis shows that work is required in all asset management categories except for asset accounting processes which are currently considered to be at a core level. Asset management is practiced in an ad hoc and inconsistent way across the asset classes in a number of areas. There are currently no formal written asset management procedures which set down the practices that are currently followed. This leads to uncertainty regarding the quality and comprehensiveness of the asset data and how it is managed. Asset Management Strategy Page 5

12 3.2.1 Asset Data Processes There are no written procedures for the collection, review/audit and management of location, physical attribute, asset condition and asset performance data. As a result, data is not up to date and confidence in it is low as it is of unreliable quality and unknown coverage Strategic Asset Planning Medium and long term strategic asset planning is undertaken in an ad hoc way with no formal processes and is based on limited information. Community and technical levels of service have been included in the draft asset management plan. In general, there is no information regarding current performance in relation to levels of service. In addition there are no demand forecasting and risk management processes in place these are fundamental for robust strategic asset planning Asset Management Systems The Shire currently utilises the ROMAN 2 asset management system to manage its road assets. There is currently no asset management system used for buildings, plant and equipment and other assets. Asset management data is held on a series of access databases and excel spread sheets that are updated manually by each responsible officer as required Systems Integration There is no integration or direct links between any of the systems, databases and spread sheets currently in use. In addition, there is no direct link between the ROMAN 2 asset management system, the asset management databases and excel spread sheets and the finance management system and other management systems used by the Shire. Asset management data for each asset class is currently managed by each responsible department in the Shire. Financial information on assets is passed to the finance department who upload the information manually Asset Management Roles and Responsibilities Asset management is the specific responsibility of the CEO. The CEO is supported in this role by consultants and sub-contractors as and when required. Day to day maintenance of the assets is undertaken by the Works Manager with support in the buildings area from the Director Special Projects. Asset Management Strategy Page 6

13 4 ASSET MANAGEMENT IMPROVEMENT PLAN The following asset management improvement plan is based on the results of the gap analysis. Separate actions are identified for each asset class. The actions have been prioritised, but no timeframe has been included at this stage. The timing of implementation of the plan will depend on the availability of resources and funding. 4.1 Urgent and Priority 1 Actions Asset Management Activity Action required Comments Priority Financial, depreciation and effective life data Asset rationalisation procedure Maintenance management Works / maintenance cost management AM roles and responsibilities Review and update all financial information for assets, including depreciation Prepare written procedure covering renewals, acquisitions and disposals and including priority ranking criteria Prepare maintenance management plan, taking corporate strategy and Levels of Service into account Prepare and implement procedure to collect financial information so that operations and maintenance costs, capital renewals costs and new/upgrade costs can be separately identified for each asset class Review to cover all assets Single procedure for all asset classes Covers all asset classes Single procedure for all asset classes Urgent To be clarified in job descriptions Data management procedure Prepare written procedure based on current practices Single procedure for all asset classes 1 Asset Management Strategy Page 7

14 4.2 Priority 2 Actions Asset Management Activity Action required Comments Priority Asset identification / classification Prepare written procedure based on current Single procedure for 2 procedure practices all asset classes Critical assets Critical assets to be identified 2 Prepare an asset condition inspection and Single procedure for 2 Condition assessment procedure assessment plan that describes condition all asset classes inspection and assessment processes and frequencies Condition data Complete condition assessments for all asset To be in accordance 2 classes with procedure Asset Classification / hierarchy Update and extend existing asset data as 2 necessary. Physical attributes and location data Operational / Maintenance data Verify and update existing data as necessary. Future data collection in accordance with procedure. Verify and update existing data as necessary and prepare procudure for future data collection To be in accordance with procedure 2 2 Demand forecasting Asset register Systems integration Prepare a Demand Management Plan that Covers all asset describes how forecast demand changes will be classes managed Review and update register Covers all asset classes Prepare formal processes for the transfer of information from the asset management systems to the financial systems and for the recognition of new assets in either system Covers all asset classes Asset Management Strategy Page 8

15 4.3 Priority 3 and 4 Actions Asset Management Activity Action required Comments Priority Prepare written procedure based on current Single procedure for Asset handover procedure practices all asset classes Prepare written procedure for and implement Covers all asset Asset management system / modules formal asset management system classes Continue training of relevant staff. Workshop Covers all asset Training and awareness with management team and councillors required classes Risk management Capital investment planning Customer request system Levels of service Lifecycle planning Prepare risk management policy and plan, with critical assets identified and a risk assessment undertaken Prepare procedure to ensure consistency with organizational financial plans Implement system to record complaints, requests for service and responses To be confirmed via community consultation as part of the next review of the asset management plan Covers all asset classes Single procedure for all asset classes Covers all asset classes Covers all asset classes Prepare written guidelines for lifecycle planning Covers all asset classes Asset Management Strategy Page 9

16 An indicative schedule, based on a three year program, for urgent and priority 1, 2 and 3 actions is shown below. A more detailed schedule will be required prior to commencement of the improvement plan. It is expected that the improvement plan and schedule may be implemented with an average of 0.25 to 0.33 full time equivalent staff, supplemented by specialist resources where necessary, e.g. valuations of non-road assets. Review and update all financial information for assets, including depreciation Prepare written procedure covering renewals, acquisitions and disposals Prepare maintenance management plan YEAR 1 YEAR 2 YEAR 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Prepare and implement procedure to separately identify operations and maintenance costs, capital renewals costs and new/upgrade Clarify AM roles and responsibilities in job descriptions Prepare written data management procedure based on current practices Prepare written asset ID procedure based on current practices Identify critical assets Prepare an asset condition inspection and assessment plan Complete condition assessments for all asset classes Update and extend existing asset data as necessary. Verify and update existing attribute and location data as necessary. Future data collection in accordance with procedure. Verify and update existing O&M data as necessary and prepare procudure for future data collection Prepare a Demand Management Plan that describes how forecast demand changes will be managed Review and update asset register Prepare formal processes for the transfer of information from the asset management systems to the financial systems Prepare written asset handover procedure based on current practices Prepare written procedure for and implement formal asset management system Training of relevant staff Asset Management Strategy Page 10

17 5 ASSET MANAGEMENT PERFORMANCE MONITORING Performance in relation to asset management will be measured using the Key Performance Indicators in the table below. The overall objective is to reach the target performance levels by the end of year 3 following the approval of this strategy. Key Performance Indicator Implementation of Improvement Plan Lifecycle sustainability Index 10 year sustainability index Asset consumption Index Customer satisfaction level Level of Service performance 10 year renewal funding index Asset sustainability index Description To be based on achieving Priority 1 actions in year 1 etc. Ratio of planned lifecycle costs/year to required lifecycle costs per year Ratio of planned renewal and maintenance costs/year to requiredrenewal and maintenance costs per year Ratio of depreciated replacement cost to replacement value Current performance based on June 2010 customer survey Compliance with target Levels of Service performance levels, measured on a simple compliance basis Ratio of 10 year planned renewals funding to required renewals funding Ratio of annual renewals funding to annual depreciation Current Performance 2011/12 Target Performance Year 3 n/a 100% n/a 90% to be confirmed 90% REVIEW OF STRATEGY This policy will be reviewed in conjunction with the review of the Infrastructure Asset Management Strategy and Infrastructure Asset Management Plan. Asset Management Strategy Page 11

18 SHIRE OF BODDINGTON ROADS ASSET MANAGEMENT PLAN

19 Version No Version Control Date Details Author 1.0 Adoption of Plan Road Asset Management Plan Page 2 of 46

20 Table of Contents 1.0 Executive Summary Introduction Scope and Purpose of the Plan Plan Format Key Stakeholders Linkages to Corporate Strategies Levels of Service Function & Hierarchy Customer Research Strategic & Corporate Goals Legislative Requirements Future Demand Demand Forecasts Demand Planning Management Strategies Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Life Cycle Management Plan Operations & Maintenance Renewals & Replacements Financial Projections year forecast Funding Capacity Funding Options & Strategy Confidence Level AM Practices, Performance Monitoring & Improvement Asset Management Practices Data Systems AM Improvements Monitoring & Review Procedures Road Asset Management Plan Page 3 of 46

21 1.0 Executive Summary Asset management is a journey involving continuous monitoring and improvements. There are significant benefits including informed decision making, improved focus on core business, better financial planning, enhanced risk management and process improvements. The Shire of Boddington has recognised the importance of asset management in improving organisational performance. Council has a significant portfolio of community infrastructure assets under its care and control. These assets form an integral part of providing services to the community. The significant for many years. These assets have originated from a combination of Council construction as well as from development activity within the area. As these assets progress through their useful life, the cost of their renewal will become a financial challenge for Council. The Road assets covered by this plan have a total replacement value in excess of $40,070,594. The preservation of the condition of these very highly valued assets is vital to ensure that Council can afford to continue to deliver appropriate service levels to its community in the future. The road assets that have been considered in this version of the plan are road surface and road pavement. These assets have been categorised by a hierarchical structure and, with respect to this Plan, the hierarchies denote the criticality in terms of responsiveness. Levels of service provide the basis for life cycle asset management and are based on both customer expectations and statutory requirements. This plan is focused on clarifying and defining key elements of service for road assets which will then enable the future identifying and costing of operations, maintenance renewal and upgrade works required to meet these levels of service. For the purposes of this plan, draft levels of service have been developed to create a baseline against which future performance can be measured. These levels of service will be analysed based on future community consultation and technical reviews to ensure they meet community expectations. t road surface and pavement, and present condition levels indicate that inadequate funding has been allocated to the renewal and maintenance of road assets. The Shire of Boddington will need to increase its annual funding levels to preserve the renewal and maintenance components of these assets. Road Asset Management Plan Page 4 of 46

22 Asset management practices have been examined in order to identify improvements to current systems. Maintenance management, both reactive and programmed needs to be developed further to ensure maintenance regimes are documented and tasks and inspections are recorded. By utilising asset performance models, the available funds will be best spent to ensure minimal road asset loss. The principles of asset management as outlined in this plan will assist in achievement of this goal. This Plan is a dynamic document that will be updated regularly to reflect the changing needs of the organisation and the community. Road Asset Management Plan Page 5 of 46

23 2.0 Introduction Asset Management Plans are concerned with outlining optimal life cycle management strategies. The identification of future needs, management options and cash flows provides the ability to even out peak funding demands. This Asset Management Plan is the means for documenting management, financial, engineering and technical practices to ensure that the level of service required by customers is provided at the lowest long term cost to the community. The Shire of Boddington has an area in excess of 1900 square kilometers representing a vast investment over many generations that supports modern living in our community. It is responsible for over 297km of built road asset within its boundary. asset group and largest area of annual expenditure. Millions of dollars are spent managing and maintaining the network throughout its lifecycle and it is imperative that the best management skills and practices are engaged to ensure that related services are delivered economically and sustainably. The Road Asset Management Plan provides the framework to deliver optimum operational performance of the Shire's road infrastructure assets at the lowest lifecycle cost and to agreed levels of service. It describes: - Council's current road pavement asset management practices and management strategies, - the Levels of Service provided, - the management of Council's road pavement assets, Road Asset Management Plan Page 6 of 46

24 - the financial requirements for the long term sustainability of the assets, - the key improvement projects for enhancing asset management effectiveness. This is the first Road Asset Management Plan developed by the Shire of Boddington. It seeks to provide a more formal approach to road management through the adoption of asset management principles and methodology. 2.1 Scope and Purpose of the Plan This Plan considers the physical road pavement. It does not include footpaths, or certain elements within the road reserve such as street furniture, underground drainage or other infrastructure assets located on parks and reserves. These will be covered in future revisions of this plan or by separate asset management plans. The purpose of this plan is to assist the Council and Executive to make informed decisions on the allocation of resources to manage the local road network and to communicate this information to the public. The plan takes into account three main drivers in managing the road network, they are; 1. Function The plan considers the function of each component of each asset class based on its intended purpose; 2. Risk The various consequences resulting from a range of scenarios that flow from implementing different management practices, and; 3. Lifecycle cost The cost to the community, in consideration of the likely consequences, of implementing various management practices. The three drivers of Function, Risk and Lifecycle Cost combined; determine the level of service of the asset. Importantly, a cornerstone to the plan is consultation with the community to ensure the final level o The Shire of Boddington welcomes anyone seeking further information relating to this plan to contact: Mr Graeme Simpson Acting Chief Executive Officer Shire of Boddington Ph: (08) [email protected] Road Asset Management Plan Page 7 of 46

25 2.2 Plan Format This asset management plan follows the framework set out in the Institute of Public Works Enginee This framework is outlined in the following diagram. Section 1 Executive Summary Outline of Content Key Issues Section 2 Introduction Purpose & Scope of the Plan Plan Format Key Stakeholders Linkages to Corporate Strategies Section 3 Levels of Service Function & Hierarchy Customer Research Strategic & Corporate Goals Section 4 Future Demand Demand Forecasts Demand Planning Management Strategy Section 5 Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Operation & Maintenance O & M strategy Maintenance Agreement Maintenance Activities Inspections Section 6 Life Cycle Management Plan Physical Parameters Ownership Function Asset Capacity/Performance Condition Valuation Work Category Definitions Renewals & Replacements Renewal strategy & plan Risk Management Framework New, Upgrade, Disposal Planning criteria & assumptions Section 7 Financial Projections Current financial position Funding capacity Funding options & strategy Section 8 AM Practices, Performance Monitoring & Improvement AM Practices Data Systems AM Improvements Monitoring & Review Procedures Road Asset Management Plan Page 8 of 46

26 INFORMATION MANAGEMENT, and DATA IMPROVEMENT Figure 1 The key steps in preparing an asset management plan are shown below. CORPORATE PLANNING Confirm strategic objectives and establish AM policies, strategies & goals. Define responsibilities & ownership. Decide core or advanced AM Pan. Gain organisation commitment. REVIEW/COLLATE ASSET INFORMATION Existing information sources Identify & describe assets. Data collection Condition assessments Performance monitoring Valuation Data DEFINE SCOPE & STRUCTURE OF PLAN AM PLAN REVIEW AND AUDIT ESTABLISH LEVELS OF SERVICE Establish strategic linkages Define & adopt statements Establish measures & targets Consultation LIFECYCLE MANAGEMENT STRATEGIES Develop lifecycle strategies Describe service delivery strategy Risk management strategies Demand forecasting and management Optimised decision making (renewals, new works, disposals) Optimise maintenance strategies IMPLEMENT IMPROVEMENT STRATEGY FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding IMPROVEMENT PLAN Assess current/desired practices Develop improvement plan IS THE PLAN AFFORDABLE? ITERATION Reconsider service statements Options for funding Consult with Council Consult with Community ANNUAL PLAN / BUSINESS PLAN Road Asset Management Plan Page 9 of 46

27 Figure 2 Road Asset Management Plan Page 10 of 46

28 2.3 Key Stakeholders The following groups have been identified as key stakeholders in the management and use of the road network and road related assets. Stakeholder Councillors Employees / Contractors Community residents and businesses Road Users Insurers Emergency Services / Utilities Tourists Expectations Meeting community needs, sound management and allocation of resources, good governance Safe working environment Value for money, equitable and responsible service, well maintained assets Well maintained assets specific to users needs Appropriate risk management policies and practices, safe working environments, well maintained assets Accessible road network and readily available data Well maintained assets, accessible services, safe facilities Government (Federal and State) Systems in place to sustain road infrastructure, accountability, transparency 2.4 Linkages to Corporate Strategies objectives. choose to live to be part of a welcoming community, enjoy the enviable environment and the opportunities our Asset Management Plans are a crucial component of the Council planning process linking with the following corporate documents: Council Plan for the Future Strategic Plan 2009 Budget Plans and associated documents Asset Management Plans Boddington Ranford Townsite Strategy 2010 Asset Management Policy (pending) Road Asset Management Plan Page 11 of 46

29 2.5 Goals and Objectives of Asset Management The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets through construction by council staff, contractors and by donation of assets constructed by developers. cost effective manner for present and future consumers. The key elements of infrastructure asset management are: Taking a life cycle approach, Developing cost-effective management strategies for the long term, Providing a defined level of service and monitoring performance, Understanding and meeting the demands of growth through demand management and infrastructure investment, Managing risks associated with asset failures, Sustainable use of physical resources, Continuous improvement in asset management practices. This road asset management plan has been prepared as a core asset management plan in accordance with the International Infrastructure Management Manual. Core asset management is designed to meet minimum legislative and organisational requirements for sustainable service delivery and long term financial planning and reporting. Future revisions of the asset management plan will move towards advanced asset management using a bottom up approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels. Figure 3 Road Asset Management Plan Page 12 of 46

30 3.0 Levels of Service strategies and works programs. This section defines the level of service or performance standards that are required and the rationale behind their selection. A key objective of this Road Asset Management Plan is to match the level of service provided by assets to the available resources, the user needs, expectations and preferences. Service levels are divided into two types: Community based; and Technical 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, availability, comfort and safety. Supporting the community service levels are technical measures of performance developed to ensure that the minimum community levels of service are met. Technical based levels of service relate to the operational measures and the outputs the customer receives in terms of quality, quantity, maintainability reliability and performance, responsiveness, capacity, environmental impacts and affordability. The levels of service defined in this Section will be used to: Identify the current costs and benefits of the services offered Inform stakeholders of any need to adjust the level of service Enable stakeholders expectation and satisfaction to be measured Develop strategies to deliver the required level of service As this is the first roads asset management plan to be undertaken by the Shire of Boddington, this is the first time that levels of service have been considered in an asset management context. Consequently, the organisation is not in a position to clearly articulate what its current levels of service are for the roads under its responsibility. To overcome this, target service levels have been developed which will be refined in future versions of this Plan. The following tables identify the target service levels for this asset management plan. Road Asset Management Plan Page 13 of 46

31 Community Levels of Service for Road Assets Key Performance Level of Service Performance Measurement Target Performance Current Performance Indicator Process Safety To manage transport infrastructure to Number of hazards identified and Action taken as defined in Road Processes not measured due to maximise safety for users. remedied in accordance with Maintenance and Operational Road Maintenance and Road Maintenance and Plan on 100% of hazards. Operational Plan not yet Operational Plan procedures. developed. No accidents or injuries To manage transport infrastructure to Number of injuries or accidents sustained due to non 0 lost time injuries in the last 12 maximise safety for staff and attributable to non-conformance compliance. months. contractors with Road Maintenance and Operational Plan. Accessibility & Transport infrastructure to be provided Annual community satisfaction 75 % of community consider Not measured Availability in accordance with demonstrated survey. local roads as in better than community needs and Council policy good condition. Conformance to Road Asset New or upgraded facilities only Road Asset Management Plan and Management Plan, asset provided when key criteria is hierarchies in place to help hierarchies and Shire policy met in relevant Council policies, determine the construction or reports or studies upgrade of an asset Responsiveness Quick response times for maintenance Analysis of works requests and 100% compliance within Road Timeframes not measured due to and hazard requirements response times against targets. maintenance and Operational Road Maintenance and Plan targets. Operational Plan not yet developed. Road Asset Management Plan Page 14 of 46

32 Technical Levels of Service for Road Assets Key Performance Level of Service Performance Measurement Target Performance Current Performance Indicator Process Maintainability & Council will maintain its transport Compliance with inspection 95% compliance with inspection Inspection and maintenance Condition infrastructure in a sustainable manner regimes and maintenance and maintenance targets. regimes and intervention levels so that it is safe and fit for purpose. intervention levels specified within 70% of road seals to be in a not measured. Road Maintenance and good condition or better: rating 77% of road seals are in a good Operational Plan.Overall condition of 4 and above (WAAMI), rating condition or better of road infrastructure of 2 and above (RAMM) Usage & Capacity Infrastructure designed, constructed Percentage of infrastructure which All assets designed and New construction meets current and managed to meet current / meet dimensions required for type constructed to meet capacity as and anticipated usage based on anticipated usage and capacity. of usage, e.g. heavy access specified in the road hierarchy. industry guidelines and policy. Non conforming assets to upgraded based on priority. Not measured. Environment Infrastructure designed, constructed Assessment of additional cost All infrastructure designed to Current design processes account and maintained taking into account caused by environmental impacts. minimise damage to local for assessment of soil types, water local environment. Number of complaints regarding environment. Work practises movement, storm frequencies and environmental damage as a result carried out in a manner that natural environment. Work of Council works. minimised adverse impact on practices not formally adopted environment. within procedures. Cost/Affordability Transport infrastructure services Costs comparison with other Industry data identifies that Not measured provided at best value for money similar industry standards costs are competitive Road Asset Management Plan Page 15 of 46

33 3.1 Function & Hierarchy road hierarchy has been developed according to functionality in order to clarify the presentation of the road network. The hierarchy defines the difference in road use parameters, i.e. traffic volumes, speed and mass of vehicles. The road hierarchy adopted for the Shire of Boddington places all roads into the following classifications: MRWA Functional Road Hierarchy Liveable Neighbourhoods or Subdivision Guide RAMM FH # Owner Function VPD* Speed (kph) FRH** Colour Minimum Level of Service Primary Distributor Primary Distributor 1 MRWA Freeway / Highway > Blue Assessed by MRWA Regional Distributor n/a (rural) 2 LGA 2025 "Local Govt Significant Road". Link to significant destinations and designed for efficient movement of people and goods. Connects to primary and other rural distributors. Intersections controlled with measures such as signing and line marking of intersection. > Red 2 lanes sealed District Distributor A Integrator A (urban) 6 LGA District Distributor B Integrator B (urban) 6 LGA Frequent connections to local streets. Intersections controlled with appropriate measures including traffic signals. Low percentage of trucks. Usually bus routes. > n/a Connections to local streets. Intersections controlled with appropriate Local Area Traffic Management. > n/a 4 lanes sealed 2 lanes sealed Local Distributor Neighbourhood Connector (urban) 7 LGA Residential access. Intersections controlled with Local Area Traffic Management. < Yellow 2 lanes sealed Road Asset Management Plan Page 16 of 46

34 Local Distributor Neighbourhood Connector (rural) 3 LGA Distributor road carrying trucks, machinery, tourists and sometimes has slower moving traffic. Connects to other distributor and access roads. Intersections controlled with measures such as signing. <100 <90 Yellow 2 lanes sealed Access Streets (urban) 8 LGA Limited access traffic. Forms part of local distribution network. Intersections self controlling with minor measures. < Grey 2 lanes sealed 4 LGA A. Main function is access. Local distribution network to individual properties. Generally connects to rural distributors and properties. Intersections self controlling with minor measures. < Grey 2 lanes sealed Access Roads Access Roads (rural) 4 LGA B. Main function is access. Local distribution network to individual properties. Intersections self controlling with minor measures. < Grey 1 lane sealed 5 LGA C. Main function is access. Local distribution network to individual properties. Intersections self controlling with minor measures. < Grey Gravel 5 LGA D. Main function is access. Local distribution network to individual properties. Intersections self controlling with minor measures. < Grey Dirt track n/a Laneways (urban) 10 LGA Provide access to the side or rear of lots, principally for access to garages. < Grey 1 lane sealed * Vehicles per day ** Functional Road Hierarchy Road Asset Management Plan Page 17 of 46

35 3.2 Customer Research Community surveys to assess satisfaction with the current levels of service provided through local infrastructure have not yet been undertaken. Such surveys assist in the prioritisation of maintenance and renewal works and may for example, show that the community considers the maintenance of roads as being a critical issue for attention. As continued work is undertaken to resolve disparities between renewal funding requirements and available funds, the link between service level and cost is an important area for investigation. Consultation with the community may show that on identifying that significant rate rises are required to fund infrastructure, the community would prefer to consider a reduction in service level. The issue of community consultation is important for further development in future updates of this asset management plan Desired Levels of Service At present, indications of desired levels of service are obtained from various sources including edback to councilors and staff, service requests and correspondence. When this data set is more complete, it will be used in future asset management plans. The number of service requests is an important indicator of service satisfaction, however it is important to recognise that other factors, for example, weather patterns, and the increasing size of the road network, can have significant impacts. When this data set is more complete, it will be used in future asset management plans. 3.3 Strategic & Corporate Goals The Plan for the Future details how Council will work together with the community to realise its vision of a culturally diverse and an economically and environmentally sustainable Shire through achievements against Strategic Goals. This Road Asset Management Plan assists progress towards the achievement of the following strategic goals as the Future Sustainability The Shire recognises the importance of maintaining balance in future decisions so that the environmental qualities which are so important today are looked after for the future. Prosperous Boddington A diverse and thriving economy is critical to the sustainability of the Shire. Amenities, Services and Infrastructure Road Asset Management Plan Page 18 of 46

36 Good amenities and services, together with properly maintained infrastructure and cornerstones of the type of town we aspire to achieve. Good Governance The highest standards are expected in recognition of the requirements to achieve good governance and full compliance is expected. 3.4 Legislative Requirements infrastructure assets. The primary Legislation that relates to road assets under the care control and responsibility of Local Government include the following: - Local Government Act Local Government (Miscellaneous Provisions) Act Land Administration Act Town Planning and Development Act Road Traffic Act Main Roads Act Occupational Safety & Health Act Environmental Protection Act Native Title Act Heritage of Western Australia Act Conservation and Land Management Act Aboriginal Heritage Act Roads to Recovery Act Environment Protection and Biodiversity Act Telecommunications Act Local Government (Financial Assistance) Act 1995 Road Asset Management Plan Page 19 of 46

37 4.0 Future Demand This section identifies the effect of expected growth and consequent d infrastructure. Some of these trends will inevitably impact the need for certain services and should Boddington has allowed anticipated impacts to be quantifiable and this data will be used extensively in predicting future demand levels. 4.1 Demand Forecasts Key factors influencing the demand for new road infrastructure and changes to the existing road network include: 1. Residential Development 2. Changes in demographics 3. Population changes / density 4. Travel patterns (car usage, traffic volumes) As well as the growth in the asset base, future demand also impacts on the resources required for on-going maintenance activities. The future demand for new road infrastructure is addressed in 2 ways. Firstly, by the provision of infrastructure vested in Council through the subdivision process. focused on renewal of existing assets, however changes in travel patterns, land use etc, necessitate some capital expenditure on the creation of new assets Residential Development There are currently as many as ten scheme amendment/subdivision applications before Council for residential/rural residential developments. Five of these are sufficiently progressed in subdivision design to indicate that just over 1,000 residential lots will be available upon approval of these applications. Boddington and Ranford town sites currently have approximately 2.1 people per dwelling according to the 2006 Census data. Using this figure, approximately 2,730 additional people can be accommodated by the 1,300 residential lots currently progressed to subdivision design level (see Figure 2). Based on population forecasts, this capacity would serve the two town sites through to Dwellings Population (2.1/dwelling) Current (2006 Census) Designed Subdivision Capacity (approx) Total Road Asset Management Plan Page 20 of 46

38 4.1.2 Changes in Demographics According to the ABS 2006 Census data, just over 60% of the total number of households in Boddington and Ranford have children. This distribution places pressure on facilities for young people and the supporting infrastructure, including roads are likely to grow with the forecast increased population as Boddington develops economically and as a lifestyle destination Population Changes With the reopening of the BGM and the Worsley expansion, the district population is forecast to increase to 2,100 within five years and 3,600 by These projections point towards steady medium to long term growth. These projections are depicted in Figure 4. Figure 4 Population Forecast Travel Patterns Travel patterns of residents and those who travel through the municipality to other destinations will vary over time. These travel patterns will be influenced by factors such as land use and development, public transport initiatives and the provision of arterial road infrastructure. While traffic patterns are not currently measure, they are an important factor in asset demand and will be considered in future versions of the Road Asset Management Plan. 4.2 Demand Planning The objective of demand management is to actively seek to modify customer demands for services in order to: Optimise the utilisation / performance of existing assets Reduce or defer the need for new assets Meet the organisations strategic objectives Deliver a more sustainable service Respond to customer needs Road Asset Management Plan Page 21 of 46

39 It is vital to the success of the Asset Management Plan that demand factors be analysed comprehensively, and their impact quantified in terms of the following: The effect of the growth of the asset network; Any possible future need to increase or decrease infrastructure; and The implementation of non-asset solutions, such as managing demand. In addition to the factors mentioned above, risk affects demand for services and consequently the following must be taken into account: The methodology and accuracy of forecasts The currency of forecasts The uncertainty of forecasts Any unforeseen natural factors Demands on local roads are dependant on a range of factors that influence both traffic volumes and traffic types. The demands on the existing road network should increase or reduce in proportion to the predicted trends as previously outlined. 4.3 Management Strategies Demand management strategies provide alternatives to the creation of new assets. A key long term strategy is to manage demand so that there are funds in place for the renewal, operation and maintenance of future services. Managing traffic demand is used to reduce transport pressure, preserve and enhance the quality of the local environment, improve local accessibility, safety, convenience and choice of transport. There are a number of ways in which demand for road space is managed and influenced which include local area traffic management plans, and community education and awareness programs. Local area traffic management plans have been used for many years to control traffic by the installation of physical infrastructure such as roundabouts, traffic islands, signage etc. They are an effective way of maintaining amenity in local neighbourhoods. Education and awareness programs are designed to encourage behavioral change and to inform the community about transport. Changes to the transport networks, combined with land-use policies and education and awareness programs that reduce demand for car travel, can deliver a system in which the reliance on vehicle transport is reduced. Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets. Opportunities for demand management will continue to be developed in future revisions of this asset management plan. Road Asset Management Plan Page 22 of 46

40 5.0 Risk Management The recognised objectives of risk management are to: Outline the process by which an organisation will manage risk associate with its 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 Prioritise the risks to identify the highest risks that should be addressed in the short to medium term The Shire of Boddington has acknowledged that Risk Management is an important part of its organisation in order to ensure that the interests of the community, its employees and contractors are protected by minimising loss arising from Councils activities and services. 5.1 Risk Principles & Process The process outlined in the International Standard AS/NZS/ISO 31000:2009 as illustrated in Figure 5 below, will be utilised in order for Council to achieve the objectives of risk management. Figure 5 Road Asset Management Plan Page 23 of 46

41 5.2 Risk Management Framework The Shire of Boddington is currently developing an organisational wide approach to risk management. The proposed risk management framework consists of a risk management policy and a risk management strategy supported by a risk register, and is designed to ensure that: All significant operational and organisational risks are understood and identified. The highest risks are identified and addressed. Risk reduction treatments are implemented which best meet business needs. Responsibilities for implementing, evaluating and managing risks are allocated to specific staff and reporting regimes adopted. 5.3 Risk Assessment The key risk management criteria relating to Councils road infrastructure include: Public health and safety Service provision Environmental and legal compliance Image reputation, political and public relations Financial risk escalating costs in deterioration Damage through natural events Inappropriate design Step 1: Risk Identification As part of its operational procedures, Council will undertake a review of potential risks. The risks identified will be assessed to determine their potential impacts. The current and required controls will be documented in the corporate Risk Register. Within road infrastructure, risks can be identified from a number of resources such as: Routine inspections by officers Visual ad-hoc inspections by road crews and other staff Details from past insurance claims Reports and complaints from the general public Information obtained from incident reports such as traffic accidents Advice from professional bodies Industry information and trends Road Asset Management Plan Page 24 of 46

42 Step 2: Risk Analysis and Evaluation Risk analysis and evaluation follows the principles as set out by international standard on Risk Management. The analysis considers both the likelihood and consequence of events and other risks. Table 1 provides a sample list of the various risk categories along with descriptions of the different consequences that could result. The officer undertaking a risk assessment would select the most relevant severity of the consequence. TABLE 1 RISK TOLERANCE LEVELS LEVEL DESCRIPTION FINANCIAL IMPACT HEALTH REPUTATION OPERATION ENVIRONMENT 1 Insignificant Less than $1,000 No injuries Unsubstantiated, low impact, low profile, minor complaint. Little impact objectives still achieved with minimum extra cost or inconvenience Little impact 2 Low $1,000 to $10,000 First aid treatment Heightened concern by community, several complaints. Inconvenient delays partial achievement of objectives with some compensating action taken Minor damage or contamination 3 Medium $10,000 to $50,000 Medical treatment Unsubstantiated, local news profile. Significant delays to major deliverables additional costs required and or time delays to achieve objectives. Adverse impacts Environmental damage requiring restitution or internal cleanup targets. 4 High $50,000 to $150,000 Death or extensive injuries Substantiated, coverage in local or state media, third party action. Unable to achieve corporate objectives or statutory obligations resulting in significant visible impact on service provision such as closure of facilities Minor Breach of legislation / significant contamination or damage requiring third party assistance 5 Extreme More than $150,000 Multiple deaths or severe permanent disablement s Substantiated, high multiple impacts, high state or national news profile, third party action. Organisation unable to function. Major breach of legislation or extensive contamination and environmental damage requiring third party intervention The next phase is to estimate the likelihood of a hazard actually occurring. Table 2 provides guidance as to which level of likelihood should be chosen. Road Asset Management Plan Page 25 of 46

43 TABLE 2 RISK LIKELIHOOD LEVELS LEVEL DESCRIPTION EXAMPLES FREQUENCY A Almost Certain Expected to occur in most circumstances More than once per year B Likely Will probably occur in most circumstances At least once per year C Possible Should occur at some time At least once in three years. D Unlikely Could occur at some time At least once in ten years E Rare May occur, only in exceptional circumstances Less than once in fifteen years. With the consequence and likelihood levels chosen, the risk can then be assigned a risk rating (Table 3) and actions taken as documented within the Shire of Boddington. Table 3 Almost Certain Consequence Insignificant Low Medium High Extreme A M H H E E Likelihood Likely B M M H H E Possible C L M M H H Unlikely D L L M M H Rare E L L M M H Road Asset Management Plan Page 26 of 46

44 Risk Details Risk Assessment Likelihood Consequence Risk Rating Treatment Strategy Inappropriate technical practices employed for road maintenance Inappropriate construction and maintenance methods expose work personnel to unacceptable risks (reputation & health risk) Significant service loss from disaster (fire, flood etc) that results in asset failure Deterioration of road seal leading to failure of road pavement. Possible Medium Moderate Develop road maintenance guidelines for maintenance standards with reference to industry standards. Possible High High Compliance with requirements of OSH legislation. Adoption and documentation of safe systems of work. Staff training. Unlikely Extreme High (10) 1. Sufficient insurance coverage. 2. Preparation of service continuity plan for key roads / routes. Possible High High Allocation of sufficient funds in annual budget. Road Asset Management Plan Page 27 of 46

45 6.0 Life Cycle Management Plan The Shire of Boddington uses RAMM to record and manage the lifecycle data for its road network. The software was implemented by the Western Australian Local Government Association in RAMM has two main purposes, the first being a record keeping function. RAMM records an inventory of the local road network to provide a consistent level of detail across all local government authorities in the state and enables this information to be fed into Main Roads central road database. This information is then processed by Main Roads on behalf of the Western Australian Local Government Grants Commission in order to determine how the asset preservation component of the Federal Assistance Grants will be distributed. The second purpose of RAMM is to record the condition of the road network and to carry out deterioration modelling so that future works programmes can be developed. This assists Council to make informed decisions with regard to the allocation of funds for future road preservation needs Physical Parameters Council oad asset management software, contains a listing of all road segments and has the capacity to include the following details: Year of construction Most recent valuation Pavement and surface type Most recent condition rating Road width and length Traffic count data Hierarchy classification Methods for collection and collation of road inventory data have varied over time. Original construction plans have been used, where available, to allocate the year of construction, road pavement, surface type and road dimensions to each segment. Data is confirmed and updated after each inspection program. The information contained in this plan is based on the data currently contained within the RAMM database. The Shire of Boddington has ownership of 297 lineal kilometres of local road network.the following table and Figure 6 show the extent in terms of the total network of each of the classifications of the road hierarchy both by area and length. Road Hierarchy Pavement Length (km) Pavement Area (sqm) Seal Area (sqm) Access Streets / Roads ,841, ,695 District Distributor ,415 52,929 Local Distributor ,415 37,714 Total ,852, ,338 Road Asset Management Plan Page 28 of 46

46 Figure 6 The road network comprises three main components: Wearing Course The wearing course is the visible surface of the road. Within the Shire of Boddington, this is normally a 30mm thick layer of asphalt or a two coat chip seal made of bitumen that is spayed directly onto the road pavement and then covered in a 7, 10 or 14mm stone. The second coat is applied the same way approximately 12 months after the first coat. While significantly cheaper to use, chip seals are not used in residential streets due to the fact that asphalt has a higher aesthetic appeal and lower noise characteristics. The wearing course provides a hard bound surface, resulting in a smooth, low noise ride for vehicles. It protects the road pavement from water, provides good run-off properties to direct storm water to the kerb line and also provides good skid resistance for vehicles when cornering and/or braking. It is vitally important that the integrity of the wearing course is maintained. Defects in the wearing course through cracking and loss of stone and/or binder will lead to pot holes forming in the pavement. While pot holes themselves are a danger to traffic and an inconvenience, they also allow water to penetrate the pavement which can lead to structural destabilisation of the pavement. This in turn can lead to further potholing and localised failure of the whole road structure, hence the need to consistently monitor the performance of the wearing course.the following table shows the break up of the wearing course by seal type. Wearing Course Surface Type Area (sqm) Chip Seal 654,120 Asphalt Seal 43,704 Total 697,824 Road Asset Management Plan Page 29 of 46

47 Figure 7 illustrates Seal Type by percentage Figure 7 Pavement The pavement is the hard material that forms the road and supports the wearing course. It is usually made of hard granular material such as gravel, roadbase or limestone. It is vitally important that the pavement is kept free from water entry as water changes the structural integrity of the pavement. Pavements need to be not only protected from surface water but also ground water by the use of table drains or sub-soil drainage. Water penetration of either the pavement or sub grade is the single biggest contributor to pavement failure. Kerbing Kerbing is the concrete structure that generally runs down both sides of the road. The repair of existing or construction of new kerb in townsites assists with the efficient movement of storm-water, protection of residences from flooding and protection of the road pavement from water infiltration. In addition to this, damaged sections have the potential to pose a significant hazard to pedestrians and cause damage to vehicles Ownership Functions The Shire of Boddington, as custodian of the local road network is responsible for a number of functions. The ownership functions include: Providing and maintaining the integrity of pavements, wearing courses and kerbing Keeping road surfaces clear of rubbish and debris (e.g. street sweeping). Maintaining landscaped areas within designated areas within the road reserve. Providing and maintaining street name plate signs for the local road network. Providing and maintaining parking signs associated with parking on the local road network. Road Asset Management Plan Page 30 of 46

48 Providing and maintaining line marking associated with delineating parking bays on the local road network. Providing and maintaining decorative street lighting in streetscape areas. Installing and maintaining advisory signs (yellow diamond warning signs). The Shire of Boddington is not responsible for: Line marking of regulatory lines (such as double white road divider lines and broken road divider lines) and raised reflective pavement markers. These are provided and maintained by MRWA. In the case of road upgrades, the Shire of Boddington is responsible for the upfront cost of this work, however if the design is approved, MRWA will inherit all future responsibility for maintenance. holding lines. These are provided and installed by Main Roads Western Australia. Traffic control signals. These are installed and controlled by MRWA. Standard Street lighting. This is provided and maintained by Synergy. The Shire of Boddington pays the installation and operation costs of these lights. Level crossings of train lines. These are provided and maintained by Westrail. Maintenance and capital requirements of primary distributor roads are the responsibility of MRWA. The Shire of Boddington can request changes at locations where Shire of Boddington controlled infrastructure interfaces with MRWA infrastructure Asset Capacity/Performance Asset capacity and performance in respect of the road network is generally a function of traffic. The greater the number of vehicles using the road, the higher the design criteria of the road must be. Traffic is also a significant determinant when it comes to accelerated deterioration of road infrastructure. The Shire of Boddington has an informal program of collection of vehicle volume. This data exists in raw form and while the RAMM pavement management system provides for recording of basic traffic information, this information in the database is not current. The additional resourcing required to ensure traffic data is stored in Councils asset management software system will be addressed in the improvements section of this plan. Wearing Course - Wearing course life within the Shire of Boddington is dependent upon the size of the aggregate used, seal type, traffic and other factors such as pavement and sub surface Road Asset Management Plan Page 31 of 46

49 conditions. The wearing course component of the network has been assigned useful lives as follows: Asphalt: 30 years Chip Seal: 25 years Pavement - Provided the wearing course is maintained in good condition, the pavement itself should last a very long time. The pavement component of the network has been assigned useful lives as follows: High traffic roads (>3000vpd): 60 years Low traffic roads (<3000vpd): 80 years Condition Condition is a measure of an assets physical condition relative to its condition when first constructed. When rating road condition, two scales are used. The WAAMI program uses a standard scale of 0-10, where 0 = new and 10 = total deterioration. The RAMM program uses a scale of 0-5, where 0 = new and 5 = totally failed. The Shire of Boddington has not conducted a formal survey of its road network and officers have been responsible for inputting and updating road inventory information on an as constructed basis and also recording the current condition of its road assets. Within the Shire of Boddington asphalt makes up approximately 6% of the sealed network and the remaining 94% is a chip seal. The following graph indicates the combined condition of the wearing course layer with 0 being new condition and 10 being the very worst condition. Figure 8 illustrates Chip Seal by condition. Figure 8 Road Asset Management Plan Page 32 of 46

50 Figure 9 illustrates Asphalt by condition Figure 9 Figure 10 illustrates combined seal condition Figure 10 The main two factors contributing factors to deterioration are traffic (in particular, heavy vehicles) and a high water table. In addition, long periods of daylight throughout the year and high surface temperatures in the summer period, coupled with intense rainfall during winter, creates ideal conditions for deterioration of the seal binder. Once the seal binder starts to break down, the wearing course starts to lose surface stone allowing greater opportunity for water to ingress the pavement leading to pot holes. Early intervention through a regular reseal program can prevent extensive pot holing occurring. As noted previously, allowing pot holes to form can lead to ingress Road Asset Management Plan Page 33 of 46

51 of water to the road pavement. If the integrity of the pavement is compromised, repair cost can be significantly more expensive than the cost of the wearing course reseal that could have prevented it. Given that the life of an asphalt wearing course is approximately 30 years, and the intervention year is 27, it can be expected that 3.7% of the road network should be resealed every year. In the case of the Shire of Boddington this equates to 1,617m² of asphalt reseal each year. Assuming a rate of $14.21m², this equates to an annual renewal expenditure requirement of approximately $22,978 on asphalt reseals. With a life of 25 years, and an intervention year of 23, 4.35% of the networks chip seals should be replaced annually. This equates to 28,454 m² per year. Assuming a rate of $6.50m², the annual renewal expenditure requirement is approximately $184, 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. These intervention levels also provide the basis for the financial projections in section 7. The intervention levels are based on the WAAMI scoring method, and are as follows. Asset Category Condition Pavement (connectors/distributors) 7.0 Pavement (access streets/roads) 8.0 Unsealed Roads 7.5 Asphalt Seal 7.0 Chip Seal Valuation The replacement value of the road network is currently: Road Network Replacement Value (RV) Current Replacement Value $40,070,594 Road Asset Management Plan Page 34 of 46

52 A breakdown of road components and values are detailed below: Component Value Pavement $ 18,654,518 Asphalt $ 621,033 Chip Seal $ 4,251,780 Unsealed $ 16,543,263 TOTAL $ 40,070, Work Category Definitions Operations: Operational activities keep the asset utilised but have no effect on condition. Typical operational activities include: Street sweeping Inspections Maintenance: Maintenance activities are those routine works which keep assets operating to the required service levels. They fall into two broad categories: 1. Planned Maintenance (proactive): inspection and maintenance works planned to prevent asset failure. 2. Unplanned Maintenance (reactive): Reactive action to correct asset malfunctions and failures on an as required basis (i.e. emergency repairs). Typical maintenance activities include: Road patch repairs Roadside vegetation clearance Shoulder grading Renewals: Renewal work is the replacement of an asset or a significant component to restore its original size and capacity. Typical renewal activities include: Resheets Reseals Rehabilitation New Works: Works that create, expand or upgrade assets to cater for growth or additional levels of service. New works create an asset that did not exist or extend an asset beyond its original size or capacity. Typical new works activities include: Road Asset Management Plan Page 35 of 46

53 Works which create an asset that did not exist such as in a new land development Works which improves an asset beyond its original size or capacity Works which increase the service of an asset such as the sealing of an unsealed road Asset Disposal: Costs associated with the removal, sale or demolition of decommissioned or surplus assets. 6.1 Operations & Maintenance O&M Strategy Maintenance Levels of Service eeds and expectations of the community, a Road Maintenance and Operational Plan should be developed. This plan aims to define the levels of service and will be actioned as detailed in the improvements section of this plan. It will be tailored to suit the Shires road infrastructure and considers the affordability in delivering a reasonable level of service of road maintenance on a day to day basis. A Road Maintenance and Operational activities to inspect, maintain and repair the local road network for which Council is responsible. The following factors will be taken into account in the development of the maintenance targets detailed in the Road Maintenance and Operational Plan. (a) Road Condition Inspections Periodic surveys to monitor road pavement, road surfacing and structure condition are undertaken at regular intervals. (b) Routine Inspections Regular inspections undertaken as part of the day-to-day road maintenance activities to monitor asset safety and asset condition against intervention standards. (c) Response inspections As required inspections in response to customer complaints, officer reports, maintenance staff reports, or as a result of any other inspection program. (d) Routine Maintenance Performance Targets Routine maintenance functions and targets are based on agreed asset performance targets, intervention levels and actions for a particular road type. Maintenance targets vary across the road network in line with relevant risk factors such as traffic volumes, composition of traffic, operating Road Asset Management Plan Page 36 of 46

54 speed, susceptibility of assets to deterioration, the cost effectiveness of repairs and competing priorities for funding. Future community feedback/requests/surveys will allow community needs and expectations to be incorporated in the revision of the maintenance plan, ensuring a reasonable, practical and affordable maintenance level of service. (e) Repair and Maintenance Works Routine maintenance works should be undertaken within a specified period of time having regard to intervention levels and works programs. This is to ensure quality proactive maintenance work is undertaken in accordance with the Road Maintenance and Operational Plan requirements. Currently resources do not exist to inspect and assess assets against intervention levels. (f) Temporary Measures Where a potential risk is identified as a result of a customer request, officer report or maintenance report, an inspection will be carried out and temporary works effected or erection of appropriate barriers will be undertaken until such time as maintenance works can be completed. (g) Emergency Works These are works required to be undertaken immediately outside routine works programs to ensure the safety of road users, the public and/or the physical integrity of the asset as a result of emergency incidents. Emergency works include traffic incident management, responses to fires, floods, storms and spillages Maintenance Activities The Works section of the Shire of Boddington assets. The maintenance categories, along with factors that govern or influence them, are: Reactive (unplanned) maintenance activities. This is governed by the urgency of what is required. Planned (scheduled) maintenance activities. These are generally more extensive repairs that are undertaken as part of a program of works to either prevent the breakdown of elements or components of a property or to bring those elements up to an acceptable condition. The extent of this program largely depends on funding allocations. Backlog maintenance activities. This refers to an accumulation of uncorrected or deferred deficiencies in an asset. This is governed by available funding and any future plans for a particular asset. Road Asset Management Plan Page 37 of 46

55 By its nature, reactive work must be carried out as the need arises and cannot be scheduled in advance. Work is prioritised as it arises on the basis of defined intervention levels and response times. The intervention level defines the condition, state or risk level associated with an asset component, i.e. the point in time at which the asset is considered to be below an acceptable level of service. Response time defines a reasonable time frame within which it can be expected that Council will remedy the defect. Planned maintenance is repair work that is identified and managed through a maintenance plan. Activities include inspection, assessing the condition against failure/breakdown experience, prioritising, scheduling and actioning the work. Reporting actual activity, in order to develop a maintenance history and improve maintenance and service delivery performance is currently not being resourced Inspections Inspections are a critical component of the asset management process and are undertaken to assess the overall condition of each individual asset and identify any defects that have the potential to create a risk or inconvenience to the public. Responsive Inspections identify defects outside the tolerable level and likely to create danger or serious inconvenience to users of the network or the wider community. They are ad hoc by nature and are undertaken following notification to the Shire by members of the community through Works Requests or by council employees while undertaking their normal work duties. These notifications are of defects and safety deficiencies. The inspection is conducted by an appropriate council officer. Programmed Inspections determine if the road asset complies with the levels of service in terms of being within tolerable level of defects as specified in the Road Maintenance and Operational Plan. Condition Inspections - identify deficiencies in the structural integrity of the road infrastructure assets which if untreated, are likely to adversely affect network values. The deficiencies may well impact short-term serviceability as well as the ability of the component to continue to perform for the duration of its intended life span. Road Asset Management Plan Page 38 of 46

56 6.2 Renewals & Replacements Renewal Renewal expenditure is major work which does not increase the assets designed capacity, but restores, rehabilitates, replaces or renews an existing asset to its original capacity, for example, resheeting part of a road. Capital renewal works restore existing service levels and do not add to budget liabilities. Assets requiring renewal are identified from estimates of remaining life, and condition data obtained from the RAMM system. The assets are then inspected to verify accuracy of the remaining life estimate and to develop a preliminary renewal estimate. Verified proposals are ranked by priority and are scheduled in future works programs New, Upgrade, Disposal New and Upgrade New works are those that create a new asset that did not previously exist, or works which upgrade or improve an existing asset beyond its existing capacity. Upgrade works involve increasing the standard of an existing asset to provide a higher level of service to users, for example, widening the sealed area of an existing road. New assets and upgrade of existing assets are identified from various sources such as councillor or community requests and proposals identified by strategic plans. Assets may also be acquired through development at no initial cost, or through transfer of responsibility. New works, capital upgrade and expansion expenditure adds to future liabilities. These works commit council to fund ongoing budget liabilities for operations and maintenance costs for the life of the asset. There are no known roads that will be acquired in the next 12 months through transfer of responsibility. Disposal Disposal is any activity associated with disposal of a decommissioned asset including sale, demolition or relocation. Roads are rarely disposed. Laneways are occasionally disposed by way of formal discontinuance and sale to adjoining property owners. An example of laneways that may be discontinued and sold are those which exist on a plan of subdivision (and may or may not be constructed) along the rear of private properties. These laneways are not normally used by the public at large and are predominantly used exclusively by the abutting property owners. No roads have been identified for future disposal. Road Asset Management Plan Page 39 of 46

57 7.0 Financial Projections Financial forecast models assist in predicting the future financial requirements based upon the presumption that infrastructure will be replaced when the condition ratings reach a predetermined intervention level. This section presents a forecast financial summary for the next 20 years based on identified assumptions and trends. It is anticipated that the financial summary will be reviewed annually and continue to be refined as financial analysis and data gathering become more comprehensive Year Forecast A 20 year financial forecast has been developed to predict the required renewal expenditure of the required to achieve the desired level of service. Figure 12 below, summarises the 20 year predicted renewal expenditure required. These costs exclude inflation and GST. PREDICTED ANNUAL RENEWAL EXPENDITURE REQUIREMENT IN $ To Treat All Assets that Reach Intervention - Separated by Asset Class $1,200,000 Unsealed $1,000,000 $800,000 Chip Seal $600,000 $400,000 Asphalt Seal $200,000 $ Year Ahead Pavement Figure 12 The two road subcategories of that are highlighted in this graph as needing further scrutiny are the unsealed network and the chip seal component. The unsealed network shows a steadily increasing renewal requirement. This component should be analysed carefully over the short to medium term Road Asset Management Plan Page 40 of 46

58 Predicted Annual Capital Exp Requirement due to the rapidly changing nature of this type of asset. Unsealed assets also have a lower risk in terms of impact, as they can be restored from failure having little or no impact on other assets. Road seal has a much higher risk of impact on failure. This is due to the protection it provides to the pavement which is of significantly higher value. The chip seal renewal requirement should be addressed proactively to ensure the pavement is not compromised. Figure 13 shows the 20 year requirement for chip seal based on current condition, and an intervention year of 23. Predicted Annual Renewal Requirement in $ - For Chip Seal $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Year Ahead Figure Variations to financial projections The most significant potential changes to the financial projections shown will result from the factors below: Changes in the assessed condition of the network. An independent and current assessment may change the financial indicators significantly. Assumptions have been made as to the average useful lives of the road assets based on current local knowledge, experience and historical trends. These need to be reviewed and the accuracy improved based on real time assessments of asset deterioration. Changes in levels of service from those identified in this asset management plan. Significant fluctuation in the cost of construction / maintenance of road assets. Road Asset Management Plan Page 41 of 46

59 7.2 Funding Capacity The analysis indicates that the consumption of assets is greater than their renewal, leaving a renewal funding gap. A funding gap may be managed by a combination of the following techniques: Improving asset knowledge (performance, condition and remaining life) Improving maintenance to extend asset lives and defer projected renewal Improving efficiency in delivery of maintenance and renewal Developing and using low cost renewal methods Lowering service levels Increasing renewal funding 7.3 Funding Options & Strategy Funding for creating, renewing or maintaining road assets is obtained from a number of sources. Sources of funding include:. Funding required for the management of assets in the road competes with other Council projects and programs for funds. Grants Commission. Commonwealth funding is distributed under the Local Government (Financial Assistance) Act 1995 and a set of national distribution principles. The allocations methodology for distribution of local roads grants is based on road lengths and traffic volumes in each municipality. It takes account of local characteristics using cost modifiers for freight, climate, materials, sub-grade conditions and strategic routes. The local roads grant allocation model draws on information supplied by each council about the length of local roads by type and traffic volume. The Roads to Recovery Program. The Roads to Recovery Program is a Commonwealth Government funding program, which was introduced to address the problem of local roads reaching the end of their economic life and their replacement being beyond the capacity of local government. The first funding was provided in March The Program has been extended twice, with the latest program extended until June Money provided under the Roads to Recovery program is not intended to replace council spending on roads from its own sources. Federal and State Blackspot programs. Ongoing program that provides funds for blackspots and potential blackspots, pedestrian programs and Local Government Road Safety Initiatives. Road Asset Management Plan Page 42 of 46

60 Regional Road Groups. This agreement was initiated by the state government to ensure a continued level of support for the states road network. Direct Charge Works. Council may charge for works it carries out on behalf of another person. Specified Area Rates. Under the Local Government Act 1995, section 6.37, Council may declare specified area rates in cases where there is special benefit to the residents or ratepayers. 7.4 Confidence Level The confidence in the 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 ple 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 Confidence Grade The confidence level for this report is "C" overall. This level is due to the unconfirmed condition of the road network and the possibility update of condition data may result in substantially different financial forecasts. 8.0 AM Practices, Performance Monitoring & Improvement 8.1 Asset Management Practices Asset management practices are the processes, analysis and evaluation techniques needed to support lifecycle asset management. This includes the following asset management functions. Road Asset Management Plan Page 43 of 46

61 Chapter 8 AM Practices, Performance Monitoring & Improvement Knowledge of assets Levels of service Condition assessments Asset accounting - valuation, revaluation, depreciation Lifecycle planning Asset operations and maintenance Asset creation and disposal Performance monitoring Quality assurance and continuous improvement Risk management Design and project management Reviews and audit processes Weaknesses in the current asset management processes have already been identified by this document. The improvements identified and prioritised in Section 8.3, will improve the processes Council utilises to manage its assets, enabling greater accuracy in demand and financial forecasting. 8.2 Data Systems a basic inventory and pavement management system that is available to all Councils in WA to manage their road and footpath networks. Information such as length, width and condition is recorded against each individual road. Main Roads WA requires councils to submit their inventory database to them on an annual basis in order that they can build a representation of the entire WA network. The information is also used as a basis from which to award grant allocations across all Councils. Finance Department within the Corporate Services Directorate. 8.3 AM Improvements This document has been based on the International Infrastructure Management Model with the information systems, data and knowledge, and then determining any weaknesses in these. To weaknesses have been developed. The improvement projects have been prioritised according to their urgency and importance, and their implementation will depend on resources allocated. The following projects have been identified as the most urgent and important for improving the Road Asset Management Plan Page 44 of 46

62 Chapter 8 AM Practices, Performance Monitoring & Improvement Task Restructure ledgers to enable the gathering of financial data according to road component and work category. Timeline December 2012 Increase quality and quantity of data for road attributes December 2012 Develop the risk management process on road infrastructure assets including the definition of response levels for individual tasks. December 2012 Undertake risk analysis of critical assets June 2012 Implement a regular traffic count program September 2012 Develop and implement an inspection regime to minimise risk in relation to road infrastructure Update and revise plan to reflect changes in asset portfolio, data completeness and business practices. Develop a Road Maintenance and Operational Plan that considers road hierarchy, inspection frequency and response times Consultation with the community to review the levels of service and determine the wider community willingness to pay for the continued levels of service or improve those levels of service. June 2012 March 2013 June 2013 June Monitoring & Review Procedures Monitoring The effectiveness of this asset management plan can be measured in the following ways: The degree to which the required cash flows identified in this asset management plan are an; The degree to which 1-10 year detailed maintenance and capital programs, budgets, business plans and organisational structures take into account processes and principles outlined in the asset management plan; The level of user satisfaction based on comparative surveys from year to year. Road Asset Management Plan Page 45 of 46

63 Chapter 8 AM Practices, Performance Monitoring & Improvement Review This asset management plan has a life of twenty years but will be reviewed every three years. This review will recognise any changes in service levels and/or resources available to provide those services as a result of funding allocations, as well as analysing financial implications of new projects. Road Asset Management Plan Page 46 of 46

64 SHIRE OF BODDINGTON BRIDGES ASSET MANAGEMENT PLAN

65 Version No Version Control Date Details Author 1.0 Adoption of Plan Bridges Asset Management Plan Page 2 of 50

66 Table of Contents 1.0 Executive Summary Introduction Scope and Purpose of the Plan Plan Format Key Stakeholders Links to Corporate Strategies Goals and Objectives of Asset Management Levels of Service Function & Hierarchy Strategic & Corporate Goals Legislative Requirements Future Demand Demand Forecasts Demand Planning Management Strategies Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Life Cycle Management Plan Physical Parameters Work Category Definitions Asset Condition Intervention Levels Asset Valuations Operations & Maintenance O&M Strategy Maintenance Activities Inspections Renewal New, Upgrade, Disposal New Upgrade Disposal Financial Projections Year Financial Forecast Funding Capacity Confidence Levels AM Practices, Performance Monitoring & Asset Management Practices Data Systems AM Improvements Monitoring & Review Procedures Bridges Asset Management Plan Page 3 of 50

67 1.0 Executive Summary The Shire of Boddington is custodian of an extensive range of community assets that are provided to facilitate the delivery of services to the community. Bridges are an important appropriate level of funding to enable this category of assets to be maintained and renewed to an acceptable standard. This Bridge Asset Management Plan will be used, along with other Asset Management Plans, to balance levels of service, community expectations and affordability of assets and services. The Bridges Asset Management Plan has been prepared in accordance with Plan for the Future to support the goal of The Plan is a forward plan for the management of specifically with the development and maintenance of the Shire's bridge infrastructure, and sets out strategies to ensure that these assets are maintained in a manner consistent with national standards and community expectations. The plan specifies the life cycle requirements for effective management, inspection and replacement of this asset group and outlines the financial implications of these requirements. This plan is intended to demonstrate how Council will meet the target levels of service by applying the principles of responsible asset management planning. Major risks associated with the Shires bridge infrastructure have been identified and assessed according to a standard risk matrix. The majority of the risks identified within the Plan are based on the potential consequences of defects. These risks will be included in the Corporate Risk Register and will be reviewed according to internally defined processes. The population and demographic changes that the Shire is experiencing have been examined with a view to population is not expected to increase significantly and therefore future demand is expected to be minimal for new assets. A key driver of this plan is to determine the ongoing expenditure required to manage the assets to appropriate levels of service for the community. The expenditure has been determined using all existing information regarding the asset base, its age and expected Bridges Asset Management Plan Page 4 of 50

68 service delivery. The current bridge portfolio has a replacement value of $ 9,230,480 with a total lifecycle cost of $92,305 per annum. This is the averaged annual level of expenditure required to ensure all assets are maintained in accordance with the defined standards. Actual annual expenditure requirements will differ from year to year as specific assets come up for replacement, maintenance and renewal. Asset management ensures that assets continue to provide an appropriate level of service delivery to the community. Levels of service provide the basis for life cycle asset management and are based on both customer expectations and statutory requirements. This plan is focused on clarifying and defining key elements of service for bridge assets and then identifying and costing future operations, maintenance renewal and upgrade works required to meet these levels of service. For the purposes of this plan, draft levels of service have been developed to create a baseline against which future performance can be measured. These levels of service will be analysed based on future community consultation and technical reviews to ensure they meet community expectations. Asset management is a journey involving continuous monitoring and improvement. Specific tasks and projects have been identified in this plan to ensure the progress of the asset management in relation to bridge infrastructure. Improving the Shire's asset management approach will ensure the provision of information required to ensure the whole of life costs involved in bridge asset management are acknowledged and the target levels of service are delivered to stakeholders. This plan has a lift of twenty years, but will be reviewed every three years to incorporate any new infrastructure and increases in the quality and quantity of data. This regular review process will also ensure validity of information for input into long term planning documentation. Bridges Asset Management Plan Page 5 of 50

69 2.0 Introduction Asset Management Plans are concerned with outlining optimal life cycle management strategies. The identification of future needs, management options and cash flows provides the ability to even out peak funding demands. This Asset Management Plan is the means for documenting management, financial, and technical practices to ensure that the level of service required by the community is provided at the lowest long term cost. The main benefits derived from AM planning are: Improved understanding of service level options and standards; Minimum lifecycle costs are identified for an agreed level of service; Better understanding and forecasting of asset related management options and costs; Managed risk of asset failure; Improved decision making based on costs and benefits of alternatives; Clear justification of forward works programs and funding requirements; Improved accountability over the use of public resources; Improved customer satisfaction and organisational image; Limiting the rate of deterioration of infrastructure. The Shire of Boddington delivers a variety of services to the community and in doing so, must ensure that the assets supporting these services are managed in a way that guarantees maximum performance for the lowest 'whole of life' cost. This is the first Bridges Asset Management Plan developed by the Shire. It seeks to provide a more formal approach to infrastructure management through the adoption of asset management principles and methodology. This will be achieved by clearly defining renewal and maintenance practices. This Asset Management Plan provides core resource information for users. It will be continuously reviewed and updated to improve its quality and to ensure continuing relevance. This document has been written with the intention of being informative and readily understood by persons interested in the actions of the Shire, and in particular, bridge assets. It aims to provide a bridges and the directions that must be taken to ensure their sustainability. Bridges Asset Management Plan Page 6 of 50

70 2.1 Scope and Purpose of the Plan The Bridges Asset Management Plan covers bridge assets within the Shire of Boddington. The bridges asset type includes all vehicle bridges and pedestrian bridges located within the road reserve or on a designated pedestrian route. Bridges are key elements of the road network and represent a major investment of community resources. Because of their location over natural and other obstacles, any bridge failure may severely restrict road traffic with consequent inconvenience and economic loss to the community. The purpose of this plan is to assist the Council and Executive to make informed decisions on the allocation of resources to manage these assets and to communicate this information to the public. The key objectives of this plan include: Improve the understanding of service level standards and options, Identify minimum long term life cycle costs to provide an agreed level of service, Better understand and forecast asset related management options and costs, and the ability to balance out peak funding demands, Clearly justify forward works programs and expenditure, Manage risk associated with asset failure, and Improve decision making based on costs and benefits of alternatives. The plan takes into account three main drivers in managing the bridges assets, which when combined, determine the level of service of the asset. They are: 1. Function The plan considers the function of each component of each asset class based on its intended purpose; 2. Risk The various consequences resulting from a range of scenarios that flow from implementing different management practices, and; 3. Lifecycle cost The cost to the community, in consideration of the likely consequences, of implementing various management practices. The Shire of Boddington welcomes anyone seeking further information relating to this plan to contact: Mr Graeme Simpson Acting Chief Executive Officer Shire of Boddington Ph: (08) [email protected] Bridges Asset Management Plan Page 7 of 50

71 2.2 Plan Format This asset management plan follows the framework set out in the Institute of Public Works rnational Infrastructure Management Manual. This framework is outlined in the following diagram. Section 1 Executive Summary Outline of Content Key Issues Section 2 Introduction Purpose & Scope of the Plan Plan Format Key Stakeholders Linkages to Corporate Strategies Section 3 Levels of Service Function & Hierarchy Customer Research Strategic & Corporate Goals Section 4 Future Demand Demand Forecasts Demand Planning Management Strategy Section 5 Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Operation & Maintenance O & M strategy Maintenance Agreement Maintenance Activities Inspections Section 6 Life Cycle Management Plan Physical Parameters Ownership Function Asset Capacity/Performance Condition Valuation Work Category Definitions Renewals & Replacements Renewal strategy & plan Risk Management Framework New, Upgrade, Disposal Planning criteria & assumptions Section 7 Financial Projections Current financial position Funding capacity Funding options & strategy Section 8 AM Practices, Performance Monitoring & Improvement AM Practices Data Systems AM Improvements Monitoring & Review Procedures Figure 1 Bridges Asset Management Plan Page 8 of 50

72 The key steps in preparing an asset management plan are shown below. CORPORATE PLANNING Confirm strategic objectives and establish AM policies, strategies & goals. Define responsibilities & ownership. Decide core or advanced AM Pan. Gain organisation commitment. AM PLAN REVIEW AND AUDIT IMPLEMENT IMPROVEMENT STRATEGY INFORMATION MANAGEMENT, and DATA IMPROVEMENT REVIEW/COLLATE ASSET INFORMATION Existing information sources Identify & describe assets. Data collection Condition assessments Performance monitoring Valuation Data ESTABLISH LEVELS OF SERVICE Establish strategic linkages Define & adopt statements Establish measures & targets Consultation LIFECYCLE MANAGEMENT STRATEGIES Develop lifecycle strategies Describe service delivery strategy Risk management strategies Demand forecasting and management Optimised decision making (renewals, new works, disposals) Optimise maintenance strategies FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding DEFINE SCOPE & STRUCTURE OF PLAN IMPROVEMENT PLAN Assess current/desired practices Develop improvement plan IS THE PLAN AFFORDABLE? ITERATION Reconsider service statements Options for funding Consult with Council Consult with Community ANNUAL PLAN / BUSINESS PLAN Figure 2 Bridges Asset Management Plan Page 9 of 50

73 2.3 Key Stakeholders The following groups have been identified as key stakeholders in the management and use of bridge related assets. Stakeholder Expectations Councillors Meeting community needs, sound management and allocation of resources, good governance Employees / Contractors Safe working environment Community residents and businesses Facility Users Insurers Tourists Government (Federal and State) Value for money, equitable and responsible service, well maintained assets Well maintained assets specific to users needs Appropriate risk management policies and practices, safe working environments, well maintained assets Well maintained assets, accessible services, safe facilities Systems in place to sustain building infrastructure, accountability, transparency 2.4 Links to Corporate Strategies objectives. choose to live to be part of a welcoming community, enjoy the enviable environment and the opportunities our Asset Management Plans are a crucial component of the Council planning process linking with the following corporate documents: Council Plan for the Future Strategic Plan 2009 Budget Plans and associated documents Asset Management Plans Boddington Ranford Townsite Strategy 2010 Asset Management Policy (pending) Bridges Asset Management Plan Page 10 of 50

74 2.5 Goals and Objectives of Asset Management The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets by purchase, contract, construction by council staff and by donation of assets constructed by developers and others to meet increased levels of service. Council the most cost effective manner for present and future consumers. The key elements of infrastructure asset management are: Taking a life cycle approach, Developing cost-effective management strategies for the long term, Providing a defined level of service and monitoring performance, Understanding and meeting the demands of growth through demand management and infrastructure investment, Managing risks associated with asset failures, Sustainable use of physical resources, Continuous improvement in asset management practices. This asset management plan has been prepared as a core asset management plan in accordance with the International Infrastructure Management Manual. Core asset management is designed to meet minimum legislative and organisational requirements for sustainable service delivery and long term financial planning and reporting. Future revisions of this asset management plan will move towards advanced asset management using a bottom up approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels. Figure 3 illustrates the different flow and focus of information between core and advanced asset management practices. Bridges Asset Management Plan Page 11 of 50

75 Figure 3 Bridges Asset Management Plan Page 12 of 50

76 3.0 Levels of Service The level of service is the defined service quality for the asset. Understanding the level of service required of an asset is vital for its lifecycle management, as this largely determines service are pivotal in asset management as they have a direct financial impact due to their importance in both operational and risk-based prioritisation. expectation and statutory requirements. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost. An important objective of this Plan with the expectations of the community given financial, technical and legislative constraints. A more aware and sophisticated community continually generates demand for increased performance are impacted significantly by issues related to resource allocation. To provide appropriate levels of service it is necessary that Council remains focused on customer needs. Typically, community expectations of service delivery are high at the lowest possible cost, which is unsustainable. Before any attempt is made to reduce or change demand on funding, there must be some assessment of the c expectations of levels of service. The community must be educated as to the true cost of service delivery and then be allowed to make an informed decision regarding the levels and type of service delivery required. Levels of service are defined in terms of: Type of structure bridge or major drainage, Condition of structure components, Bridge service criteria, including trafficable width and load rating, The provision of adequate signage, and Maintaining the structural integrity of the bridge network preferences. The levels of service standards defined by the BrAMP are used: To inform the community of the proposed level of service to be delivered, Bridges Asset Management Plan Page 13 of 50

77 As a focus for the asset management strategies developed to deliver the agreed level of service, As a measure of the effectiveness of this asset management plan, To identify costs and benefits of the services offered, and To enable the community to assess the suitability, affordability and equity of the level of service offered. Service levels are divided into two types: Community based; and Technical 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, availability and safety. Technical based levels of service relate to the technical measures and outputs the customer receives in terms of quality, quantity, maintainability reliability and performance, responsiveness, capacity, environmental impacts and affordability. As this is the first bridge asset management plan to be developed by the Shire of Boddington, this is the first time that levels of service have been considered in an asset management context. Consequently the organisation is not in a position to clearly articulate what its current levels of service are for the bridges under its responsibility. To overcome this, target service levels have been developed which will be refined in future versions of this Plan. Bridges Asset Management Plan Page 14 of 50

78 Community Levels of Service for Bridge Assets Key Performance Level of Service Indicator Safety To manage transport infrastructure to maximise safety for users. To manage transport infrastructure to maximise safety for staff and contractors Accessibility & Bridge infrastructure to Availability be provided in accordance with demonstrated community needs and Council policy Appearance Infrastructure in public areas maintained and improved to enhance appearance of townships Responsiveness Compliance with target maintenance response times. Performance Measurement Process Number of hazards identified and remedied within set timeframes. Number of injuries or accidents attributable to non - conformance with BrAMP Conformance to BrAMP, asset hierarchies and Shire policy. Annual community satisfaction survey Condition inspections Reports from works requests Target Performance Current Performance Actions to meet Performance Target 100% of hazards actioned Timeframes not measured. Maintenance Plan developed within set timeframes. Crash statistics analysed with inspection and response and safety audits conducted times defined. Recording of every 2-3 years. response times initiated. No accidents or injuries sustained due to non 0 lost time injuries in the compliance last 12 months 75 % of community consider Not measured Conduct community survey local bridges as in good to assess satisfaction levels. condition or better. High satisfaction rate of Not measured Develop and undertake a customers surveyed. community satisfaction survey to specifically include level of service provided by roads. 100% compliance within Monthly works request Enhanced measuring and response targets. reports measures some reporting on responsiveness. timeframes Implement improved database to better track works requests. Bridges Asset Management Plan Page 15 of 50

79 Technical Levels of Service for Bridge Assets Key Performance Indicator Level of Service Performance Measurement Process Target Performance Current Performance Actions to meet Performance Target Maintainability & Condition Council will maintain its bridge infrastructure in a sustainable manner so that it is safe and fit for Compliance with inspection regimes and maintenance intervention levels specified within BrAMP. 95% compliance with inspection and maintenance targets specified in BrAMP. Inspection and maintenance regimes and intervention levels not measured. Initiate inspection regime. Adoption of Bridge Maintenance Plan into operational practices. purpose. Overall condition of bridge infrastructure 100% of bridge infrastructure to be below intervention levels 100 % of bridge infrastructure below intervention levels Usage & Capacity Infrastructure designed, constructed and managed to meet current Percentage of infrastructure which meet dimensions required for type of usage All assets designed and constructed to meet capacity as specified in bridge New construction meets current and anticipated usage Identify and prioritise capital works to address backlog of non conforming assets. / anticipated usage and capacity. hierarchy. Non conforming assets to upgraded based on priority. Environment Infrastructure designed, constructed and maintained taking into Assessment of additional cost caused by environmental impacts. All infrastructure designed to minimise damage to local environment. Work practises Current design processes account for assessment of soil types, water movement, Adoption of maintenance plan to protect environment from Council works. account local environment. Number of complaints regarding environmental damage as a result of Council works. carried out in a manner that minimised adverse impact on environment. storm frequencies and natural environment. Work practices not formally adopted within procedures. Cost/Affordability Bridge infrastructure Costs comparison with Industry data identifies that Not measured Monitoring industry best Bridges Asset Management Plan Page 16 of 50

80 Key Performance Indicator Level of Service Performance Measurement Process Target Performance Current Performance Actions to meet Performance Target services provided at best costs are competitive practices. value for money standards Bridges Asset Management Plan Page 17 of 50

81 3.1 Function & Hierarchy Function decides strategic importance and takes into account the key principles which impact in determining the functional level of service as part of providing a sustainable range of facilities to the community. The functional level of service for bridges is to provide and maintain a safe and practical transport network in accordance with relevant legislative and statutory requirements and usage demands. Hierarchies are used to assign priorities for action and response times to bridges of different importance. Given the interdependent relationship between roads and bridges, this asset management plan will adopt the same hierarchy as used in the Shires Road Asset Management Plan, which is in line with Main Roads Functional Hierarchy. The bridges that are ranked higher are considered to be of greater significance and/or have higher usage rates, therefore attracting a higher level of service to keep them in the appropriate condition than those of lesser significance. The use of hierarchies has not been formally recognised within the Shire of Boddington. While Council has historically applied higher levels of service and response to the assets it considered more important, agreed processes to support this did not exist. The formalisation of these hierarchies will assist in the prioritisation of maintenance and renewal activities when conflicts in terms of timing and resources arise. The following table illustrates the road hierarchy that determines the hierarchy of the bridge network according to the classification of the road the bridge is located on. Bridges Asset Management Plan Page 18 of 50

82 MRWA Functional Liveable Neighbourhoods RoMan Speed FRH** Minimum Road Hierarchy or Subdivision Guide FH # Owner Function VPD* (kph) Colour Service Level Primary Distributor Primary Distributor 1 MRWA Freeway / Highway > Blue Assessed by MRWA Regional Distributor n/a (rural) 2 LGA District Distributor A Integrator A (urban) 6 LGA District Distributor B Integrator B (urban) 6 LGA Local Distributor Local Distributor Access Roads Neighbourhood Connector (urban) 7 LGA Neighbourhood Connector (rural) 3 LGA Access Streets (urban) 8 LGA Access Roads (rural) 4 LGA 4 LGA 5 LGA 5 LGA n/a Laneways (urban) 10 LGA 2025 "Local Govt Significant Road". Link to significant destinations and designed for efficient movement of people and goods. Connects to primary and other rural distributors. Intersections controlled with measures such as signing and line marking of intersection. > Red 2 lanes sealed Frequent connections to local streets. Intersections controlled with appropriate measures including traffic signals. Low percentage of trucks. Usually bus routes. > n/a 4 lanes sealed Connections to local streets. Intersections controlled with appropriate Local Area Traffic Management. > n/a 2 lanes sealed Residential access. Intersections controlled with Local Area Traffic Management. < Yellow 2 lanes sealed Distributor road carrying trucks, machinery, tourists and sometimes has slower moving traffic. Connects to other distributor and access roads. Intersections controlled with measures such as signing. <100 <90 Yellow 2 lanes sealed Limited access traffic. Forms part of local distribution network. Intersections self controlling with minor measures. < Grey 2 lanes sealed A. Main function is access. Local distribution network to individual properties. Generally connects to rural distributors and properties. Intersections self controlling with minor measures. < Grey 2 lanes sealed B. Main function is access. Local distribution network to individual properties. Intersections self controlling with minor measures. < Grey 2 lanes sealed C. Main function is access. Local distribution network to individual properties. Intersections self controlling with minor measures. < Grey Gravel D. Main function is access. Local distribution network to individual properties. Intersections self controlling with minor measures. < Grey Dirt track Provide access to the side or rear of lots, principally for access to garages. < Grey 1 lane sealed * Vehicles per day ** Functional Road Hierarchy Bridges Asset Management Plan Page 19 of 50

83 Community Research The community requires that agreed levels of service be delivered reliably, efficiently and economically. Asset Management techniques focus on the need to seek stakeholder involvement in establishing the appropriate balance between levels of service, risk and expenditure. confidence that funding is being allocated in an equitable and cost effective manner and within any constraints identified by the Asset Management Plan. consultation in relation to infrastructure expectations is currently minimal. Methods to increase this include: Annual community satisfaction surveys, Consultation via the Annual Plan process, Councillor feedback, and Analysis of customer requests and responses 3.2 Strategic & Corporate Goals The Shire has adopted the Plan for the Future that includes recognition of the need to develop and maintain quality Asset Management plans and systems. The Shire recognises the need to take a more business like and organisation wide approach to asset management and one which involves the community on a wider basis. Essentially the of assets and to consider the ongoing costs of existing assets when making decisions on the renewal/replacement of existing assets and the acquisition of new assets. Councils Asset Management Policy outlines the key principles that will be considered when making decisions in relation to infrastructure assets: Philosophy of renewing assets before acquiring new assets, with an emphasis on integrating services while maintaining / upgrading / replacing cost benefit analysis justifies otherwise. Prior to consideration of any acquisition or major improvement to an asset, a critical review of the following will occur as part of the evaluation process: Demonstrated need and asset function Bridges Asset Management Plan Page 20 of Page 20 of 50Buildings Asset Management Plan Page 20 of 50

84 Level of service Community benefits Overall community value of asset ownership Risk Implications Statutory Obligations Opportunities for rationalization including multiple use Whole of Life Cost Council will utilise clear prioritisation methods for capital works expenditure. This will include the requirement to report expenditure in a way that ensures that discretionary and non discretionary expenditure is identified The commitment to involve and consult with the community and key stakeholders when determining service levels. Develop Asset Management 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. 3.3 Legislative Requirements bridge infrastructure assets. The primary State Legislation that relates to road assets under the care control and responsibility of Local Government include the following: Local Government Act 1995 Local Government (Miscellaneous Provisions) Act 1960 Land Administration Act 1997 Town Planning and Development Act 1928 Secondary State legislation that impacts on the management and operation of bridge assets include the following: Road Traffic Act 1974 Main Roads Act 1930 Occupational Safety & Health Act 1984 Environmental Protection Act 1986 Conservation and Land Management Act 1984 Bridges Asset Management Plan Page 21 of 50-sset Management Plan Page 21 of 50

85 Federal legislation that relates to the management of bridge assets includes: Roads to Recovery Act 2000 Environment Protection and Biodiversity Act 1999 Telecommunications Act 1997 Local Government (Financial Assistance) Act Future Demand This section identifies the effect of expected growth and consequent demand on Townsite Strategy commissioned by the Shire of Boddington has allowed anticipated impacts to be quantifiable and this data will be used extensively in predicting future demand levels. 4.1 Demand Forecasts The key factors that directly impact the demand for bridge asset infrastructure are: Population growth Demographic changes Residential development Population Growth With the reopening of the BGM and Worsley expansion, the district population is forecast to increase to 2,100 within five years and 3,600 by These projections point towards steady medium to long term growth Demographic Changes According to the ABS 2006 Census data, just over 60% of the total number of households in Boddington and Ranford have children. This is reflected in Figure 4, which indicates that 30% of the entire population of the two towns are less than 20 years of age. This distribution places pressure on facilities for young people and is likely to grow with the forecast increased population as Boddington develops economically and as a lifestyle destination. Bridges Asset Management Plan Page 22 of 50-sset Management Plan Page 22 of 50

86 Figure 4 Population Forecast Residential Development There are currently as many as ten scheme amendment/subdivision applications before Council for residential/rural residential developments. Five of these are sufficiently progressed in subdivision design to indicate that just over 1,000 residential lots will be available upon approval of these applications. Boddington and Ranford town sites currently have approximately 2.1 people per dwelling according to the 2006 Census data. Using this figure, approximately 2,730 additional people can be accommodated by the 1,300 residential lots currently progressed to subdivision design level (see Figure 5). Based on population forecasts, this capacity would serve the two town sites through to Dwellings Population (2.1/dwelling) Current (2006 Census) Designed Subdivision Capacity (approx) Total Figure 5 Residential Development 4.2 Demand Planning The objective of demand management is to actively seek to modify customer demands for services in order to: Optimise the utilisation / performance of existing assets Reduce or defer the need for new assets Meet the organisations strategic objectives Deliver a more sustainable service Respond to customer needs Bridges Asset Management Plan Page 23 of 50-sset Management Plan Page 23 of 50

87 It is vital to the success of the Asset Management Plan that demand factors be analysed comprehensively, and their impact quantified in terms of the following: The effect of the growth of the asset network Any possible future need to increase or decrease infrastructure The implementation of non-asset solutions, such as managing demand In addition to the factors mentioned above, risk affects demand for services and consequently the following must be taken into account. The methodology and accuracy of forecasts The currency of forecasts The uncertainty of forecasts Any unforeseen natural factors The forecasts for the Shire of Boddington indicate significant population growth in the area. This growth trend is expected to cause an increase in the bridge asset base as a result of increased demand. 4.3 Management Strategies Demand management strategies provide alternatives to the creation of new assets through modifying customer demands. A key long term strategy is to manage demand so that there are funds in place for the renewal, operation and maintenance of future services. Effective strategies maximise the utilisation of existing assets through consolidating services or disposing of assets that are surplus to requirements. The disposal strategy for bridge infrastructure is discussed in section of this document. Bridges Asset Management Plan Page 24 of 50-sset Management Plan Page 24 of 50

88 5.0 Risk Management The recognised objectives of risk management are to: Outline the process by which an organisation will manage risk associate with its 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 Prioritise the risks to identify the highest risks that should be addressed in the short to medium term The Shire of Boddington has acknowledged that Risk Management is an important part of its organisation in order to ensure that the interests of the community, its employees and contractors are protected by minimising loss arising from Councils activities and services. Bridges Asset Management Plan Page 25 of 50-sset Management Plan Page 25 of 50

89 5.1 Risk Principles & Process The process outlined in the International Standard AS/NZS/ISO 31000:2009 as illustrated in Figure 6 below, is utilised in order for Council to achieve the objectives of risk management. Figure Risk Management Framework The Shire of Boddington will develop an organisational wide approach to risk management. This risk management framework will consist of a risk management policy, a risk management strategy supported by a corporate risk register. The framework is designed to ensure that: All significant operational and organisational risks are understood and identified. The highest risks are identified and addressed. Risk reduction treatments are implemented which best meet business needs. Responsibilities for implementing, evaluating and managing risks are allocated to specific staff and reporting regimes adopted. Bridges Asset Management Plan Page 26 of 50-sset Management Plan Page 26 of 50

90 5.3 Risk Assessment The key risk management criteria relating to Councils bridge assets include: Public health and safety Service provision Environmental and legal compliance Security, theft & vandalism Image reputation, political and public relations Business interruption Financial risk escalating costs in deterioration Property damage through flooding, water damage or fire damage User group accountability Natural hazards Step 1: Risk Identification As part of its operational procedures, Council will undertake a review of potential risks. Any risks identified will be assessed to determine their potential impacts. The current and required controls are documented in the Corporate Risk Register. Within the bridge group, risks can be identified from a number of resources such as: Routine inspections by officers Industry information and trends Reports and complaints from the general public Information obtained from incident reports Bridges Asset Management Plan Page 27 of 50-sset Management Plan Page 27 of 50

91 Step 2: Risk Analysis and Evaluation Risk analysis and evaluation follows the principles as set out by the international standard on risk management. The analysis considers both the likelihood and consequence of events and other risks. Figure 7 shows a standard consequence table with descriptions of the different level of impact that could result. Figure 7 Consequence Table LEVEL DESCRIPTION FINANCIAL IMPACT HEALTH REPUTATION OPERATION ENVIRONMENT 1 Insignificant Less than $1,000 No injuries Unsubstantiated, low impact, low profile or no news item. Little impact objectives still achieved with minimum extra cost or inconvenience Little impact 2 Low $1,000 to $10,000 First aid treatment Substantiated, low impact, low news profile. Inconvenient delays partial achievement of objectives with some compensating action taken Minor damage or contamination 3 Medium $10,000 to $50,000 Medical treatment Substantiated, public embarrassment, coverage in state media. Significant delays to major deliverables additional costs required and or time delays to achieve objectives. Adverse impacts Environmental damage requiring restitution or internal cleanup targets. 4 High $50,000 to $150,000 Death or extensive injuries Substantiated, public embarrassment, high coverage in state media, third party action. Unable to achieve corporate objectives or statutory obligations resulting in significant visible impact on service provision such as closure of facilities Minor Breach of legislation / significant contamination or damage requiring third party assistance 5 Extreme More than $150,000 Multiple deaths or severe permanent disablements Substantiated, public embarrassment, very high multiple impacts, high national news profile, third party action. Non achievement of key objectives. Unable to achieve corporate obligations. Major breach of legislation or extensive contamination and environmental damage requiring third party intervention Bridges Asset Management Plan Page 28 of 50-sset Management Plan Page 28 of 50

92 The next process is to estimate the likelihood of a risk actually occurring. Figure 8 shows a standard description of the levels of likelihood. Figure 8 LEVEL DESCRIPTION EXAMPLES FREQUENCY A Almost Certain Expected to occur in most circumstances More than once per year B Likely Will probably occur in most circumstances At least once per year C Possible Should occur at some time At least once in three years. D Unlikely Could occur at some time At least once in ten years E Rare May occur, only in exceptional circumstances Less than once in fifteen years. With the consequence and likelihood levels chosen, the risk is then assigned a risk rating (Figure 9). Figure 9 Consequence Insignificant Low Medium High Extreme Almost Certain M H H E E Likelihood Likely M M H H E Possible L M M H H Unlikely L L M M H Rare L L M M H Bridges Asset Management Plan Page 29 of 50-sset Management Plan Page 29 of 50

93 Risk Details Exposure of key structures to damage as a result of bushfire or flood (financial & reputation risk) Inadequate funding for pedestrian bridge maintenance resulting in deterioration of structure (financial & health risk) Inappropriate technical practices employed for bridge maintenance resulting in failure of structure (health & reputation risk) Inadequate values used for insurance purposes (financial & reputation risk) Inappropriate construction and maintenance methods expose work personnel to unacceptable risks (reputation & health risk) Traffic or pedestrian bridge fails under its load (reputation & health risk) Damage to structure or risk of injury due to inadequate railing (reputation & health risk) Risk Assessment Values after treatment Treatment Strategy Likelihood Consequence Risk Rating Likelihood Consequence Risk Rating Possible High High Maintain vegetation as per the MRWA guidelines Possible High High Ensure priority given through budget process. Develop 10 year renewal and maintenance plan for pedestrian bridges. Possible High High Utilise MRWA bridge maintenance guidelines for maintenance standards Possible Extreme High Include annual consultation with TS directorate within insurance renewal procedures. Possible High High Compliance with requirements of OSH legislation. Adoption and documentation of safe systems of work. Staff training Possible High High MRWA is responsible for ongoing structural assessment of bridges occurs to determine existing carrying capacities. Implementation of load ratings on traffic bridges will be imposed where required. Possible High High Bridge railing installation program to be developed. Unlikely High Moderate Rare High High Rare Extreme High Rare High Medium Unlikely High Medium Rare High High Unlikely High Medium Bridges Asset Management Plan Asset Management Plan Page 30 of 50Bridge Page 30 of 50

94 6.0 Life Cycle Management Plan Bridges are created to deliver required services for Council. The function of bridges is to provide a continuous all weather access across roads, rivers and drainage or irrigation channels. These assets are operated and maintained throughout their useful life, and their performance and condition are monitored to ensure they deliver the necessary service. Over the life of the asset, there will come a point where the asset is no longer performing at a satisfactory level and may be rehabilitated or improved. The recurrent costs of operations and maintenance, the capital expenditure for rehabilitation, and the onecosts. This section outlines the management strategies, including operating strategies and maintenance strategies, for the life of bridge assets Physical Parameters The Shire of Boddington has 5 bridges within its control. Data is held on all relevant ation, structure dimensions (i.e. length, width, number of spans, etc), component listing for each structure with assessed condition, load limit information, etc. Appendix 1 contains the present inventory of the A summary is contained in the below table. BRIDGE DATA Bridge No. Route Name Crossing Name Structure Type No. of Spans Length (m) Width (m) 3084 Crossman Road Crossman River TMBR Crossman Road Crossman River TMBR Lower Hotham Road Marradong Brook TMBR Harvey-Quindanning Rd Coolakin Creek TMBR Lower Hotham Road Williams River TMBR Structures are classed separately based on their construction type and use. Useful life is used to determine the current value of the asset. The adopted lifecycles are based on those adopted by Main Roads Western Australia. Bridges Asset Management Plan Asset Management Plan Page 31 of 50Bridge Page 31 of 50

95 Bridge Category Concrete Timber with Concrete Overlay Timber Culvert Useful Life 100 years 100 years 60 years 50 years Work Category Definitions Operations: Operational activities keep the asset utilised but have no effect on condition. Typical operational activities include: Pest inspections Vegetation control Maintenance: Maintenance activities are those routine works which keep assets operating to the required service levels. They fall into two broad categories: 1. Planned Maintenance (proactive): inspection and maintenance works planned to prevent asset failure. 2. Unplanned Maintenance (reactive): Reactive action to correct asset malfunctions and failures on an as required basis (i.e. emergency repairs). Renewals: Renewal work is the replacement of an asset or a significant component to restore its original size and capacity. New Works: Projects for the extension or upgrading of assets required to cater for growth or additional levels of service. New works create an asset that did not exist or extend an asset beyond its original size or capacity. Asset Disposal: Costs associated with the demolition of decommissioned or surplus assets Asset Condition To determine if an asset is meeting the desired service level, knowledge is required of the asset condition. It is critical to have a clear understanding and knowledge of the condition of assets in order to determine the most cost-effective funding strategy. Management decisions, critical to the success of an asset reaching its full life, revolve around the maintenance and renewal of assets. Regular condition monitoring reduces the likelihood Bridges Asset Management Plan Page 32 of 50-sset Management Plan Page 32 of 50

96 of asset failures, which can significantly influence assets service levels and availability as well as meeting community requirements. Not knowing the condition or performance level of an asset may lead to the premature failure of an asset. Unforeseen failure of an asset may have severe consequences that constitute a business risk or potential loss to the organisation. By conducting regular condition and performance monitoring exercises, maintenance strategies and/or renewal strategies can be updated and refined, and ultimately, renewal programs can be more accurately determined. If failure is imminent, Council will at least have time to look at options other than renewal, or the failure may be able to be managed by alternative means to reduce overall risk exposure. The principle objective of managing bridges is to ensure the safe and economic operation of each asset throughout its service form, age and condition that operate in different environments under different loading regimes. Bridges are rated on their structural integrity condition and the level of deterioration of bridge elements caused by biological and non biological agents. The main agents of biological attack for timber bridges are fungi and termites. The main causes of non biological attack are corrosion of fasteners, shrinkage, splitting and fire. Concrete structures deteriorate through carbonization, chloride penetration and alkali-aggregate reaction. The main agent contributing to the deterioration of steel structures is corrosion. The condition of a bridge for the purposes of this plan is rated on a scale of 0 follows: Condition Rating Condition Description 0 A new asset or an asset rehabilitated to new condition. 10 as 1 A near new asset with no visible signs of deterioration, often moved to condition one based on the time since construction rather than observed condition decline. 2 An asset in excellent overall condition. There would be only very slight decline but it would be obvious that the asset was no longer in new condition. 3 An asset in very good overall condition but with some early stages of deterioration evident. The deterioration is minor in nature and causing no serviceability problems. 4 An asset in good overall condition but with some obvious deterioration evident. Serviceability would be impaired very slightly. 5 An asset in fair overall condition. Deterioration in condition would be obvious and there would be some serviceability loss. 6 An asset in fair to poor overall condition. The condition deterioration would be quite Bridges Asset Management Plan Page 33 of 50-sset Management Plan Page 33 of 50

97 obvious. Asset serviceability would now be affected and maintenance cost would be rising. 7 An asset in poor overall condition. Deterioration would be quite severe and would be starting to limit the serviceability of the asset. Maintenance cost would be high. 8 An asset in very poor overall condition with serviceability now heavily impacted by the poor condition. Maintenance cost would be very high and the asset would need to be rehabilitated. 9 An asset in extremely poor condition with severe serviceability problems and needing rehabilitation immediately. Could also be a risk to remain in service. 10 An asset that has failed, is no longer serviceable, and should not remain in service. There would be an extreme risk in leaving the asset in service. The individual condition of each bridge has not been used in this plan. Assumptions have been made that the bridge assets are generally in a good condition. There is minimal risk association with this assumption as Main Roads WA is responsible for the structure integrity of bridge assets and due to their regular inspection program, it is very unlikely that a bridge would be allowed to deteriorate below a condition 5. The following table and Figure 10 detail the condition distribution used for this plan. Condition Long Life Bridges Total Distribution Very Good Bridges Asset Management Plan Page 34 of 50-sset Management Plan Page 34 of 50

98 Figure 10 Figure 11 shows the predicted condition distribution in 2021 based on the current assumed condition and deterioration trends. Figure 11 ASSET CAPACITY/PERFORMANCE Bridges and major drainage structures are crucial components of the road network by virtue of their capital value, strategic and operational importance, and the effect on the Bridges Asset Management Plan Page 35 of 50-sset Management Plan Page 35 of 50

99 crossings are rare, bridge service restrictions can have enormous social and economic impacts. While both bridges and road pavements are designed and built in accordance with contemporary standards, bridges are far more sensitive to increasing loads and changing vehicle dynamics 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 minimise 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. The set levels provide the basis for the financial projections in section 7 and are as follows. Asset Category Intervention Condition Concrete 7.0 Timber with Concrete Overlay 7.0 Timber Asset Valuations All bridges are valued based on replacement costs. Replacement costs are determined through consultation with MRWA to determine a sqm rate. This is then applied to the deck 30 June 2011 is $ 9,230,480. This is made up of the following: Category Value Timber with Concrete Overlay $ 9,230,480 TOTAL $ 9,230,480 Bridges Asset Management Plan Page 36 of 50-sset Management Plan Page 36 of 50

100 6.1 Operations & Maintenance Maintenance activities relate to the repair of faults and attention to an assets structure to ensure ongoing serviceability and to prevent premature deterioration or failure. Maintenance management is a systematic approach to the planning and execution of maintenance activities. This management method delivers the benefits of operational effic encompasses the following activities: Regular inspections, Keeping of proper records, Condition rating of bridge infrastructure to support strategic asset management, Program preparation including planning, minimising and scheduling, and Effective execution of maintenance operations O&M Strategy Bridge maintenance is the work performed during the service life of a structure to: 1. Maintain its designed load capacity, other functional capability and serviceability, 2. Protect the investment in assets by ensuring that the structure completes its designed service life, and 3. Ensure safety of the public. In order to deliver best value to the community and to ensure safety, the Shire of Boddington has determined that it is vital to have frequent inspections which will assist in determining the best preventive maintenance program for its bridge infrastructure. This means providing adequate maintenance to bridge components to ensure that they do not deteriorate to a condition which inevitably requires expensive their rehabilitation/replacement Maintenance Activities Maintenance includes both reactive and proactive activities that preserve or restore the condition of a structure or its components. Routine Maintenance Routine bridge maintenance comprises those activities, identified primarily by Level 1 inspections, which maintain the serviceability of the structure. Works of this type generally Bridges Asset Management Plan Page 37 of 50-sset Management Plan Page 37 of 50

101 do not change condition and include clearing of drainage, minor repairs to approaches, road surface and timber decking, cleaning and adjusting deck joints, and painting. Programmed Maintenance Programmed bridge maintenance comprises those activities, identified from bridge inspection programs, which maintain serviceability of the structure but fall outside the scope of routine maintenance. While these activities generally do not change the structural condition, they may include the replacement of isolated timber bridge members and non-load bearing components in all structures. Programmed maintenance activities include painting of steelwork, repair or replacement of deck joints or seals, barrier repairs, timber member replacement and repair of scour damage to beds and batters. The majority of issues or defects identified relate to the delivery of routine maintenance and road user safety. These issues include: Clearing of waterways and debris from structures, Maintenance of roadway on bridge approaches, Provision of guardrail on approaches to unprotected structures, Provision and maintenance of railing across structures, Maintenance of batters to prevent excessive erosion, Maintenance of concrete abutments, wingwalls and headwalls, Maintenance of roadway across bridge (i.e. potholing, etc), and Maintenance of steel beams to protect against excessive corrosion Inspections The purpose of inspections is to identify, record and report defects that are causing, or have the potential to cause: Disruption to service provision Breach of regulations or Decline in asset performance legislation and/or condition A financial risk A public safety risk Infrastructure damage Inconvenience to the community Inspections of varying detail are completed on a regular basis to continually monitor the condition and performance of the network of bridges which service the community. The following types of inspections are undertaken: Bridges Asset Management Plan Page 38 of 50-sset Management Plan Page 38 of 50

102 TYPE DESCRIPTION RESPONSIBILITY Level 1 Routine Maintenance Inspections A visual inspection to check the general serviceability of a structure to road users and to identify any emerging defects. These inspections are undertaken on an annual basis in conjunction with routine maintenance activities. Additional inspections are also required after an abnormal event such as a severe flood or fire. Shire of Boddington. Routine maintenance inspections are completed by staff. Level 2 Bridge Condition Inspections Level 3 Detailed Engineering Inspections Comprehensive visual inspections to assess the condition of a structure and its major components. The principal objectives are to identify significant defects in structural members above ground level, and to record the extent, severity and criticality of each defect and the appropriate remedial actions. Level 2 inspections are conducted on a rolling three (3) year cycle. Engineering inspections are conducted on a needs basis to assess the structural condition and capacity of a structure that has been identified as a potential candidate for rehabilitation, strengthening or replacement. This level of inspection may include materials testing and analysis, structural analysis or load testing in addition to the visual inspection to assess and quantify the condition, behaviour and rate of deterioration of a structure. MRWA MRWA coordinates engineering inspections on road bridges. 6.2 Renewal original designed load capacity and level of service. This excludes the strengthening of bridges to provide a greater load capacity than the original design. Renewal activities include deck replacement, splicing piles, installation of supplementary piles or barrier replacements. 6.3 New, Upgrade, Disposal New New works are those works that create a new asset that did not previously exist, or works that upgrade or improve an asset beyond its existing capacity. Council has no plans to construct any new bridges as the road network is well developed. In the event that a new bridge was required it is expected that it would be funded by a developer or by other levels of government. Bridges Asset Management Plan Page 39 of 50-sset Management Plan Page 39 of 50

103 Where new assets are created they will be designed using all relevant design codes and Australian Standards and by using materials to achieve the greatest asset life while trying to minimize maintenance costs through the life of the structure Upgrade Upgrade refers to works which improve an existing asset beyond its current capacity. They may result from growth, social or environmental needs. Upgrade/expansion of infrastructure will contribute to the overall infrastructure inventory and will require ongoing maintenance and renewal. Recognition of the impact that this activity has on the future sustainability of infrastructure should be considered for all projects. As such, any potent of the project Disposal Disposal works are those activities necessary to dispose of decommissioned assets as required. Disposal works involve an evaluation of the asset to be able to answer a number of questions about the asset, including: Is the asset still required by the community Can the need be satisfied by a less expensive or alternative asset Is it the role of Council to provide a particular service delivered by the asset Asset Disposal Process Surplus asset disposal is a three step process whereby the asset is evaluated from a strategic perspective, the disposal process is implemented where required, and the disposal process is reviewed. The emphasis is on ensuring that non-essential assets are identified and disposed. Asset Evaluation The disposal process begins with identifying surplus assets. Council should conduct regular strategic evaluations of its asset needs. During this process, assets are evaluated against the asset disposal principles outlined above. Where it is identified that an asset does not meet these criteria, it is to be identified as surplus and disposed. The evaluation process will also take into account public interest considerations. Examples of public interest considerations would be: Bridges Asset Management Plan Page 40 of 50-sset Management Plan Page 40 of 50

104 where an asset has some form of significance to the community and there could be expected to be significant public resistance to disposal or transfer of ownership of the asset; where an asset has strategic significance for future infrastructure development. In such instances, a clear and demonstrated future planning requirement is needed to support continued ownership. Speculation on future usage does not constitute a clear and demonstrated future requirement; where there are significant heritage, environmental or public usage requirements that require ongoing local government ownership and management. Implementation of Disposal The method of disposal will be assessed against the principle of achieving the maximum benefit to the community through the disposal, including social, financial, economic and strategic factors. Review of Disposal Process Following the disposal process, the Council should review outcomes and identify ways to improve performance for future processes. This would include, at appropriate times, a review of internal processes and structures that deal with asset disposal. No bridges have been identified for future disposal. Bridges Asset Management Plan Page 41 of 50-sset Management Plan Page 41 of 50

105 7.0 Financial Projections Financial forecast models assist in predicting the future financial requirements based upon the presumption that an asset will be replaced when the condition ratings reach a predetermined intervention level. This section outlines the long-term operations, maintenance and capital financial requirements for the operation, maintenance, renewal and development of bridge assets. Funding issues are discussed and key assumptions made in preparing the financial forecasts are noted. It is anticipated that the financial summary will be reviewed annually and continue to be refined as planning studies, strategies and increased financial analysis is completed. The financial projections include future known disposal of assets Year Financial Forecast A 20 year financial forecast has been developed to predic bridge infrastructure. The model is based on the asset condition data and shows the funding required to achieve the desired level of service. Renewal projections are based on the default assumptions that all existing bridges are to be renewed when a particular condition intervention is reached, and that they will be renewed using components that are substantially the same as those existing. Historical expenditure for bridges in the past 3 years is shown in the table below. Typically, where there has been an absence of spending, it is due to zero funding allocations in that period. Actual $ Actual $ 2009 / / 2011 Renewal Maintenance 182 1,430 Operational 425 3,337 Figure 12 shows the predicted annual renewal expenditure requirement for the next 20 years based on current intervention, condition and funding levels. Bridges Asset Management Plan Page 42 of 50-sset Management Plan Page 42 of 50

106 Figure 12 Figure 13 shows the estimated bridge expenditure for renewal and predicted consequential maintenance for the period Figure 13 Bridges Asset Management Plan Page 43 of 50-sset Management Plan Page 43 of 50

107 The percentage of the asset base above intervention is a key indicator of an organisations sustainability. Figure 14 shows this percentage increasing steadily over the next 20 years based on the current level of expenditure on renewal and consequential maintenance. This means that more funding is required to meet the target level of service. Figure 14 The most significant potential changes to the financial projections shown will result from the factors below: Assumptions have been made as to the average useful lives of bridge assets based on current local knowledge, experience and industry data. These need to be reviewed and the accuracy improved based on real time assessments of asset deterioration. Changes in levels of service from those identified in this asset management plan. Significant fluctuation in the cost of construction / replacement of bridges. Assumptions have been made in relation to the asset condition levels. Variations in the assumed to actual condition may result in different funding requirements. 7.2 Funding Capacity Current funding sources available for bridges include: Bridges Asset Management Plan Page 44 of 50-sset Management Plan Page 44 of 50

108 Rates Federal / State Government Grants Private developer contribution funds 7.3 Funding Options & Strategy Bridge replacement and selected specific maintenance works for road bridges are programmed by MRWA and funded 1/3 by the State and 2/3 through Federal Assistance Grants Scheme (FAGS). The Shire is consulted in respect to replacement priorities and once agreed are given the opportunity undertake specific grant funded maintenance tasks or to engage MRWA contractors. and implementation of a 10 year bridge Maintenance and replacement program for the south west, the Shire has limited input into the level of funding allocated to its area. The Shire does however have the ability to accelerate the program through the injection of its own funds. Options Alternatives to accessing additional funding are: Raising rates Decreasing service levels Accessing additional grant funding Strategy The commitment of state and federal government and the close monitoring of the Shire bridges through asset management and technical procedures has led to a sustainable bridge network. The funding strategies in place are considered adequate to meet future financial requirements. 7.4 Confidence Levels The confidence in the data used as a basis for the financial forecasts has been assessed using the following grading system: Bridges Asset Management Plan Page 45 of 50-sset Management Plan Page 45 of 50

109 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 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 Confidence Grade The confidence level for this report is "B" overall. A complete set of data is available for the majority of bridge infrastructure. Bridges Asset Management Plan Page 46 of 50-sset Management Plan Page 46 of 50

110 8.0 AM Practices, Performance Monitoring & Improvement 8.1 Asset Management Practices Asset management practices are the processes, analysis and evaluation techniques needed to support lifecycle asset management. This includes the following asset management functions. Knowledge of assets Levels of service Condition assessments Asset accounting - valuation, revaluation, depreciation Lifecycle planning Asset operations and maintenance Asset creation and disposal Performance monitoring Quality assurance and continuous improvement Risk management Design and project management Reviews and audit processes Weaknesses in the current asset management processes have already been identified by this document. The improvements identified and prioritised in Section 8.3, will improve the processes Council utilises to manage its assets enabling greater accuracy in demand and financial forecasting. 8.2 Data Systems Asset management data and knowledge is appropriate, accessible and reliable data that can be used with information systems to enable enhanced asset management. This includes the following data on asset characteristics and topics: Classification and Valuation identification Lifecycle costings Physical attributes Data quality Condition Risk information Cost and maintenance histories Bridges Asset Management Plan Page 47 of 50-sset Management Plan Page 47 of 50

111 An asset management system is a combination of processes, data, and software applied to provide the essential information outputs for effective management of risk and optimum infrastructure maintenance and renewals needs. Council currently does not utilise any software in regards to bridge asset management. 8.3 AM Improvements This document has been based on the International Infrastructure Management Manual processes, information systems, data and knowledge, and then determining any weaknesses reduce the impact of these weaknesses have been developed. The improvement projects have been prioritised according to their urgency and importance and their implementation will depend on resources allocated. The following projects have been identified as the Task Development and implementation of a bridge maintenance plan which outlines typical maintenance items and response times according to hierarchy Development and implementation of a bridge inspection regime Identification and reporting of all risks relating to bridge infrastructure Timeline June 2013 June 2012 June 2012 Identification of all major culverts in next revision of plan June Monitoring & Review Procedures Monitoring The effectiveness of this asset management plan can be measured in the following ways: The degree to which the required cash flows identified in this asset management plan a Management Plan; The degree to which 1-5 year detailed maintenance and capital programs, budgets, business plans and organisational structures take into account processes and principles outlined in the asset management plan; Bridges Asset Management Plan Asset Management Plan Page 48 of 50Bridge Page 48 of 50

112 Quantity of assets classified as being below acceptable service level; The level of user satisfaction based on comparative surveys from year to year. Ratio of planned maintenance to reactive maintenance Review This asset management plan has a life of twenty years but will be reviewed and updated by the Asset Management Working Group every three years. This review will recognise any changes in service levels and/or resources available to provide those services as a result of funding allocations, as well as analysing financial implications of new projects. Bridges Asset Management Plan Page 49 of 50-sset Management Plan Page 49 of 50

113 Appendix 1 Bridges & Major Culverts owned by the Shire of Boddington Bridge No. Route Name Route No. SLK Crossing Name LG No. Local Government Name Owner Status Structure Type No. of Spans Length (m) Width (m) 3084 Crossman Road Crossman River 214 Boddington 6 B TMBR Crossman Road Crossman River 214 Boddington 6 B TMBR Lower Hotham Road Marradong Brook 214 Boddington 6 B TMBR Harvey-Quindanning Rd Coolakin Creek 214 Boddington 6 B TMBR Lower Hotham Road Williams River 214 Boddington 6 B TMBR A Newmarket Road Marlin Creek 214 Boddington 6 B CULV A Harvey-Quindanning Rd Bell Brook 214 Boddington 6 B CULV Page Rd Warrening Brook 214 Boddington 6 B CULV Bridges Asset Management Plan Asset Management Plan Page 50 of 50Bridge Page 50 of 50

114 SHIRE OF BODDINGTON BUILDING ASSET MANAGEMENT PLAN

115 BUILDINGS ASSET MANAGEMENT PLAN Version No Version Control Date Details Author 1.0 June 2011 Adoption of Plan Buildings Asset Management Plan Page 2 of 54

116 BUILDINGS ASSET MANAGEMENT PLAN Table of Contents 1.0 Executive Summary Introduction Scope and Purpose of the Plan Plan Format Key Stakeholders Links to Corporate Strategies Goals and Objectives of Asset Management Levels of Service Hierarchy Strategic & Corporate Goals Legislative Requirements Future Demand Demand Forecasts Demand Planning Management Strategies Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Life Cycle Management Plan Physical Parameters Work Category Definitions Asset Condition Asset Valuations Useful Life Operations & Maintenance O&M Strategy Maintenance Activities Inspections Renewals & Replacements Renewal Strategy & Plan New, Upgrade, Disposal New Upgrade Disposal Year Financial Forecast Funding Capacity Funding Options & Strategy Confidence Levels Buildings Asset Management Plan Page 3 of 54

117 BUILDINGS ASSET MANAGEMENT PLAN 8.0 AM Practices, Performance Monitoring & Improvement Asset Management Practices Data Systems AM Improvements Monitoring & Review Procedures Buildings Asset Management Plan Page 4 of 54

118 BUILDINGS ASSET MANAGEMENT PLAN 1.0 Executive Summary The Building Asset Management Plan has been prepared in accordance with the Shire of Boddington to This asset management plan focuses on the management of the Shire of Boddington s buildings. The current property portfolio has a replacement value of $16,924,000. The plan specifies the life cycle requirements for effective management, inspection and replacement of this asset group and outlines the financial implications of these requirements. This plan is intended to demonstrate how Council will meet the target levels of service by applying the principles of responsible asset management planning. Significant information has been gathered as a part of the development of this plan, including the value, condition and location of building infrastructure. This data has provided the foundation for the document. Asset management ensures that assets continue to provide an appropriate level of service delivery to the community. Levels of service provide the basis for life cycle asset management and are based on both customer expectations and statutory requirements. This plan is focused on clarifying and defining key elements of service for property assets and then identifying and costing future operations, maintenance renewal and upgrade works required to meet these levels of service. For the purposes of this plan, draft levels of service have been developed to create a baseline against which future performance can be measured. These levels of service will be analysed based on future community consultation and technical reviews to ensure they meet community expectations. The main driver of this plan is to determine the ongoing expenditure required to manage the assets to proved appropriate levels of service for the community of the Shire of Boddington. The expenditure has been determined using all existing information regarding the asset base, its condition and expected service delivery. Asset management is a journey involving continuous monitoring and improvement. Specific tasks and projects have been identified in this plan to ensure the progress of the asset management in relation to building infrastructure. Improving the Shire's asset management approach will ensure the provision of information required to ensure the whole of life costs involved in building asset management are acknowledged and the target levels of service are delivered to stakeholders. Major risks associated with the Shires building infrastructure have been identified and assessed according to the stated risk matrix. The existing data, along with the risk matrix contained in the plan, may be utilised to generate a building renewal program using a priority system. Buildings Asset Management Plan Page 5 of 54

119 BUILDINGS ASSET MANAGEMENT PLAN This plan will be reviewed on an annual basis to incorporate any new infrastructure and the increase in the quality of data. 2.0 Introduction The Shire of Boddington currently owns a significant portfolio of property assets. The investment into many of these Council assets has occurred over several generations and consequently many of these assets are now requiring increased levels of maintenance. This Asset Management Plan is an important document that provides clear direction and guidance for the effective short and long s control. The key objectives of this Building Asset Management Plan are to: Communicate the current condition of all Council buildings and review the budgets/practices used to operate and maintain them Undertake financial planning by adopting a life cycle approach to asset budgeting Develop cost effective management strategies for the long term Define a level of service for each building type to meet community needs Understand and meet the demands of growth through demand management and infrastructure investment Avoid disruptions to services by managing risk associated with asset failures Continuously improve asset management practices 2.1 Scope and Purpose of the Plan This plan is the means for documenting management, financial and technical practices to ensure that the level of service required by customers is provided at the lowest long term cost to the community. It is intended to demonstrate responsive management of assets, compliance with regulatory requirements, and to communicate the amount of funding necessary to provide the required levels of service. The plan covers 84 buildings and structures that fall under the care, control and responsibility of the Shire of Boddington. Assets covered by this plan include: Asset Category Number Replacement Value ($) Long Life Structures 24 9,753,916 Short Life Structures 60 2,605,864 Roof Structures ,841 Mechanical Services ,063 Buildings Asset Management Plan Page 6 of 54

120 BUILDINGS ASSET MANAGEMENT PLAN Building Fitout 43 2,903,316 TOTAL 16,924,000 A number of buildings are not included within this plan due to insufficient information regarding either the condition or the value to enable reasonable assumptions to be made, or due to the fact that the building/s are covered by other plans. These buildings include: - Boddington Old School Complex - Batching Plant Buildings and Structures - Mount Saddleback Communications Tower - Leisure Pool Cover / Shelter The purpose of this plan is to assist the Council and Executive to make informed decisions on the allocation of resources to manage facilities, and to communicate this information to the public. The plan takes into account three main drivers in managing the building assets, which when combined determine the level of service of the asset. They are: 1. Function The plan considers the function of each component of each asset class based on its intended purpose; 2. Risk The various consequences resulting from a range of scenarios that flow from implementing different management practices, and; 3. Lifecycle cost The cost to the community, in consideration of the likely consequences, of implementing various management practices. The Shire of Boddington welcomes anyone seeking further information relating to this plan to contact: Mr Graeme Simpson Acting Chief Executive Officer Shire of Boddington Ph: (08) [email protected] 2.2 Plan Format This asset management plan follows the framework set out in the Institute of Public Works Key elements of the plan are: Levels of service specifies the services and levels of service to be provided by council. Future demand how this will impact on future service delivery and how this is to be met. Life cycle management how Council will manage its existing and future assets to provide the required services Buildings Asset Management Plan Page 7 of 54

121 BUILDINGS ASSET MANAGEMENT PLAN Financial summary what funds are required to provide the required services. Asset management practices Monitoring ves. Asset management improvement plan Buildings Asset Management Plan Page 8 of 54

122 BUILDINGS ASSET MANAGEMENT PLAN This framework is outlined in the following diagram. Section 1 Executive Summary Outline of Content Key Issues Section 2 Introduction Purpose & Scope of the Plan Plan Format Key Stakeholders Linkages to Corporate Strategies Section 3 Levels of Service Function & Hierarchy Customer Research Strategic & Corporate Goals Section 4 Future Demand Demand Forecasts Demand Planning Management Strategy Section 5 Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Operation & Maintenance O & M strategy Maintenance Agreement Maintenance Activities Inspections Section 6 Life Cycle Management Plan Physical Parameters Ownership Function Asset Capacity/Performance Condition Valuation Work Category Definitions Renewals & Replacements Renewal strategy & plan Risk Management Framework New, Upgrade, Disposal Planning criteria & assumptions Section 7 Financial Projections Current financial position Funding capacity Funding options & strategy Section 8 AM Practices, Performance Monitoring & Improvement AM Practices Data Systems AM Improvements Monitoring & Review Procedures Buildings Asset Management Plan Page 9 of 54

123 INFORMATION MANAGEMENT, and DATA IMPROVEMENT BUILDINGS ASSET MANAGEMENT PLAN The key steps in preparing an asset management plan are shown below. CORPORATE PLANNING Confirm strategic objectives and establish AM policies, strategies & goals. Define responsibilities & ownership. Decide core or advanced AM Pan. Gain organisation commitment. REVIEW/COLLATE ASSET INFORMATION Existing information sources Identify & describe assets. Data collection Condition assessments Performance monitoring Valuation Data DEFINE SCOPE & STRUCTURE OF PLAN AM PLAN REVIEW AND AUDIT ESTABLISH LEVELS OF SERVICE Establish strategic linkages Define & adopt statements Establish measures & targets Consultation LIFECYCLE MANAGEMENT STRATEGIES Develop lifecycle strategies Describe service delivery strategy Risk management strategies Demand forecasting and management Optimised decision making (renewals, new works, disposals) Optimise maintenance strategies IMPLEMENT IMPROVEMENT STRATEGY FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding IMPROVEMENT PLAN Assess current/desired practices Develop improvement plan IS THE PLAN AFFORDABLE? ITERATION Reconsider service statements Options for funding Consult with Council Consult with Community ANNUAL PLAN / BUSINESS PLAN Buildings Asset Management Plan Page 10 of 54

124 BUILDINGS ASSET MANAGEMENT PLAN 2.3 Key Stakeholders The following groups have been identified as key stakeholders in the management and use of the building facilities and related assets. Stakeholder Expectations Councillors Meeting community needs, sound management and allocation of resources, good governance Employees / Contractors Safe working environment Community residents and businesses Value for money, equitable and responsible service, well maintained assets Facility Users Well maintained assets specific to users needs Insurers Appropriate risk management policies and practices, safe working environments, well maintained assets Tourists Well maintained assets, accessible services, safe facilities Government (Federal and State) Systems in place to sustain building infrastructure, accountability, transparency 2.4 Links to Corporate Strategies objectives. A thriving country town where families choose to live to be part of a welcoming community, enjoy the enviable environment and the opportunities our economy provides. Asset Management Plans are a crucial component of the Council planning process linking with the following corporate documents: Council Plan for the Future Strategic Plan 2009 Budget Plans and associated documents Asset Management Plans Boddington Ranford Townsite Strategy 2010 Asset Management Policy (pending) Buildings Asset Management Plan Page 11 of 54

125 BUILDINGS ASSET MANAGEMENT PLAN 2.5 Goals and Objectives of Asset Management The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets by purchase, contract, construction by council staff and by donation of assets constructed by developers and others to meet increased levels of service. Counc cost effective manner for present and future consumers. The key elements of infrastructure asset management are: Taking a life cycle approach, Developing cost-effective management strategies for the long term, Providing a defined level of service and monitoring performance, Understanding and meeting the demands of growth through demand management and infrastructure investment, Managing risks associated with asset failures, Sustainable use of physical resources, Continuous improvement in asset management practices. This is the first building asset management plan of the Shire of Boddington and has been prepared as a core asset management plan in accordance with the International Infrastructure Management Manual. Core asset management is designed to meet minimum legislative and organisational requirements for sustainable service delivery and long term financial planning and reporting. Future revisions of this asset management plan will move towards advanced asset management using a bottom up approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels. Buildings Asset Management Plan Page 12 of 54

126 BUILDINGS ASSET MANAGEMENT PLAN 3.0 Levels of Service The level of service is the defined service quality for the asset. Understanding the level of service required of an asset is essential development, operation, maintenance, replacement and disposal. Levels of service are pivotal in asset management as they have a direct financial impact due to their importance in both operational and risk-based prioritisation. A key objective of this asset management plan is to match the level of service provided by a building category with expectations of stakeholders. This requires a clear understanding of needs, expectations, preferences and willingness to pay for any increase in the levels of service. The levels of service will continue to be refined over a period of time. Function decides strategic importance and takes into account the key principles which impact in determining the functional level of service as part of providing a sustainable range of facilities to the community. The table below provides a general statement about the target level of service according to building function. Building Category Library Services Sport & Recreation Senior Citizen Services Tourism Public Conveniences Administration Facilities Public Halls Target Functional Level of Service To provide the opportunity for the community to access information and meet within a safe, convenient and comfortable environment. To provide opportunity for residents and visitors to the community to meet and undertake recreational activities within a safe, convenient and comfortable environment. To provide senior citizens access to facilities that are safe, comfortable and assist in meeting their recreational and social pursuits. To provide tourist facilities that are safe, comfortable and meet the functional requirements of staff, users and visitors. To provide the community and visitors with sufficient access to public toilets that are safe, clean and convenient. Provides a place for governance and opportunity for residents and visitors to gain information on the Shire within a safe, convenient and comfortable environment. To provide the community with reasonable access to hall facilities that are safe, convenient and comfortable and enable the conduct of community activities and events. Buildings Asset Management Plan Page 13 of 54

127 BUILDINGS ASSET MANAGEMENT PLAN Service levels are divided into two types: Community based; and Technical 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, availability, comfort and safety. Technical 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 affordability. The following tables identify the current service levels and targets set by the organisation for buildings. Buildings Asset Management Plan Page 14 of 54

128 BUILDINGS ASSET MANAGEMENT PLAN Community Levels of Service for Building Assets Key Performance Indicator Quality Accessibility Safety Level of Service Performance Measurement Target Performance Process Ensure that buildings are Customer Surveys 80% of customers surveyed attractive and accessible consider buildings to be in satisfactory condition Inspection Program. Disability All Councils category A buildings to buildings to be made Access and Inclusion Plan be accessible accessible to all. Measures Facilities are safe and free Customer service requests No customer service requests from hazards regarding hazards received in relation to hazards in buildings. Current Performance Not yet measured Not yet measured Not yet measured Technical Levels of Service for Building Assets Key Performance Level of Service Performance Measurement Target Performance Current Performance Indicator Process Condition All buildings will be in good Condition reports 70% of buildings to be in good 79% of buildings are in condition 4 or condition for their condition or better better. purpose. Building functionality is not compromised by condition. Buildings Asset Management Plan Page 15 of 54

129 BUILDINGS ASSET MANAGEMENT PLAN Serviceability All buildings will be Works reports All works to be attended to in the Not yet measured serviced within appropriate timeframe schedules timeframes to ensure maximisation of life of asset Buildings Asset Management Plan Page 16 of 54

130 BUILDINGS ASSET MANAGEMENT PLAN 3.1 Hierarchy Hierarchies are used to assign priorities for action and response times to buildings of different importance. ed to place each building into an order of significance. The buildings that are ranked higher are considered to be of higher importance as they deliver more critical core services and/or have high usage rates. They therefore, attract a higher level of service to keep them in the appropriate condition than assets of lesser significance. tion has historically applied higher levels of service and response to the buildings it considered more important, agreed processes to support this did not exist. The defining of hierarchies can be utilised to establish maintenance response arrangements for day to day defect management, cyclic maintenance priorities and hazardous condition management priorities and response times over the entire building portfolio. A ranking scheme of A, B, C and D has been adopted where A is the highest rank. The following key factors considered in assigning the ranking of individual buildings are: Building occupancy and usage Key Driver Score High use and support 4 Meets the needs and age group 3 Meets either the needs or the age group 2 Low use and support 1 Functional Purpose Key Driver Score Essential facility high profile purpose with critical results 4 Good public presentation and a high quality working environment 3 To be in reasonable condition fully meeting operational requirements 2 Ancillary functions 1 Supports Councils Plan for the Future Key Driver Score Facility supports 3 strategic goals 4 Facility supports 2 strategic goals 3 Facility supports 1 strategic goals 2 Facility supports 0 strategic goals 1 Buildings Asset Management Plan Page 17 of 54

131 BUILDINGS ASSET MANAGEMENT PLAN Level of Significance Key Driver Score State / National Significance 4 Intershire Significance 3 District Significance 2 Neighbourhood / Local Significance 1 A score is assigned to each factor to determine a total score and ranking of A (score 13-14), B (score 10-12), C (score 8-9) or D (score 3-7). The results of this facility rating framework provide assistance in the prioritisation of maintenance and renewal activities when conflicts in terms of timing and resources arise. Shire of Boddington Building Hierarchy Asset Description Occupancy / Usage Hierarchy Factors Functional Purpose Plan for the Future Significance Score Rank Shire Office A Transportable Office A SES Building B Health Clinic B Marradong Fire Station B Boddington Recreational Ground Sports Pavilion B Works Depot Office B Boddington Arts Building B Boddington Hall B Boddington Recreational Ground Sports Pavilion Detached iron and iron clad officials box B Boddington Oval Brick and iron clad ticket box B Swimming Pool Change Rooms and Toilets B Boddington Community Newspaper B Boddington Community Club - Club House B House 20 Prussian Way C Works Depot Workshop C Swimming Pool Kiosk and Pump Room C Leisure Pool Cover/Shelter C Works Depot Workshop - Dog Pound C Works Depot Office - detached iron and iron clad toilet block C House 16 Bluegum Close C Independent Care Units C Independent Care Units C House 25 Johnstone Street C Rubbish Tip Office C Buildings Asset Management Plan Page 18 of 54

132 BUILDINGS ASSET MANAGEMENT PLAN House 15 Bluegum Close C Caravan Park - Caretakers Residence C Memorial Gardens - Tourist Information Bay C House 46 Johnstone Street C House 3 Peacan Place C House 34 Hill Street C Shire Office - Detached iron and iron clad carport C Boddington Community Club - Greenkeepers Shed C Quindanning Race Club - Woobala Bar C Quindanning Race Club -Bar C Quindanning Race Club - Spectators Shelter C Quindanning Race Club - Officials Hut C Quindanning Race Club - Quindanning Hall C Quindanning Race Club - Shower Block C Quindanning Race Club - Ladies Toilet C Quindanning Race Club - Mens Toilet C Rodeo Grounds Complex - Mens Toilet Block C Rodeo Grounds Complex - Ladies Toilet Block C Rodeo Grounds Complex - Snack Bar C Rodeo Grounds Complex - Stage & Bar C Rodeo Grounds Complex - Disabled Toilet Block C Rodeo Grounds Complex - Timber framed ticket box C Rodeo Grounds Complex - Timber framed ticket box C Rodeo Grounds Complex - Rodeo Ring - Officials Box C Hotham River Foreshore - Toilet Block C Works Depot Vehicle Garage C Caravan Park Playgroup C Ensuites Block Caravan Park C Shower and Laundry Block Caravan park C Camp Kitchen C Public Toilets Bannister Road C Boddington Community Club - Iron and iron clad BBQ Shelter C Billy Goat Hill - Transmission Tower and Hut C Rodeo Grounds Complex - Riding Club Stable C Rodeo Grounds Complex - Riding Club Stable - Iron and iron clad transportable toilet C Rodeo Grounds Complex - Shearing Shed C Boddington Cemetery - Rotunda C Hotham River Foreshore - Rotunda C Hortham River Foreshore - BBQ Shelter C Buildings Asset Management Plan Page 19 of 54

133 BUILDINGS ASSET MANAGEMENT PLAN Rodeo Grounds Complex - Iron and iron clad storage shed D Rodeo Grounds Complex - Iron and iron clad storage shed D Works Depot Workshop - Iron and iron clad detached chemical shed D Works Depot Workshop - Iron and iron clad detached storage shed D Works Depot Workshop - Iron and iron clad detached storage shed D Works Depot Plant Garage D Works Depot Office - Iron and Iron clad carport D Second Council Depot - Shed D Caravan Park Playgroup - Iron and iron clad storage shed D Caravan Park Playgroup - Iron and iron clad storage shed D House - Iron and iron clad storage shed D House - Iron and iron clad storage shed D Swimming Pool - storage shed D Boddington Arts Building - iron and iron clad storage shed D Boddington Arts Building - iron and iron clad storage shed D Boddington Community Club - iron and iron clad storage shed D House - iron and clad detached garage D Old Boddington School Site - Store D Old Boddington School Site - Iron and iron clad shelter D Old Boddington School Site - Iron and iron clad store D Rubbish Tip Storage Shed D House - Iron and iron clad shed D Caravan Park - Iron and iron clad storage shed D Caravan Park - Iron and iron clad storage shed D Customer Research Currently, limited information regarding community expectation is available, as customer consultation has not commenced. The Council is committed to updating the levels of service according to the results of community feedback. As targets for levels of service provide the basis for lifecycle management strategies and capital programs, the current levels of service will be reviewed to incorporate the requirements of the community in subsequent versions of this plan. 3.2 Strategic & Corporate Goals The Shire Plan for the Future includes recognition of the need to develop and maintain quality Asset Management plans and systems. The Shire acknowledges the need to take a more business like and organisation wide approach to asset management and one which involves the community on a wider basis. Essentially, the corporate goal is to have a whole of life cost Buildings Asset Management Plan Page 20 of 54

134 BUILDINGS ASSET MANAGEMENT PLAN approach to the provision and maintenance of assets, and to consider the ongoing costs of existing assets when making decisions on the renewal/replacement of existing assets and the acquisition of new assets. Councils Asset Management Policy outlines the key principles that will be considered when making decisions in relation to infrastructure assets: Philosophy of renewing assets before acquiring new assets and, where possible, rationalising assets that are no longer used or do not provide the necessary level of service required to sustainably deliver the service for which the asset was acquired. Prior to consideration of any major refurbishment or improvement to an asset, a critical review of the following shall occur as part of the evaluation process: o Need for facility (short and long term) o Opportunities for rationalisation, including multiple use o Future liability including ultimate retention/disposal All capital projects will be evaluated in accordance with a Capital Evaluation model and take into account capital cost, ongoing cost of maintenance, refurbishment, replacement and Management of assets utilising a team approach supported by the multi discipline crossfunctional asset management working group. inancial plan that incorporates infrastructure renewal requirements as identified within the various Asset Management Plans. The commitment to involve and consult with the community and key stakeholders when determining service levels. 3.3 Legislative Requirements The relevant legislation governing building operations include: Legislation Requirement Local Government Act 1995 Sets out the role, purpose, responsibilities and powers of local governments. Building Code of Australia 2010 Code of Practice relevant for all building design and construction Australian Standards and Codes of Practice Referenced in the Building Code of Australia. Covers a cast range of building construction and management. Disability Discrimination Act 1992 To ensure that persons with disabilities have the same rights as the rest of the community (including access to premises). Buildings Asset Management Plan Page 21 of 54

135 BUILDINGS ASSET MANAGEMENT PLAN Environment Protection Act 1986 Heritage Act of WA 1990 Occupational Health & Safety Act 1984 Planning & Development Act 2005 Regulations regarding noise, sustainability, landfill, stormwater and groundwater resources. Protection of historic buildings, structures and precincts. Provide a work environment that is safe and as far as practicable without risk to health. Defines the land use and zoning in relation to building infrastructure 4.0 Future Demand infrastructure. Some of these trends will inevitably impact the need for certain services and should therefore The recent Townsite Strategy commissioned by the Shire of Boddington has allowed anticipated impacts to be quantifiable and this data will be used extensively in predicting future demand levels. 4.1 Demand Forecasts The key factors that directly impact the demand for building asset infrastructure are: Population growth Demographic changes Residential development Population Growth With the reopening of the BGM and the Worsley expansion, the district population is forecast to increase to 2,100 within five years and 3,600 by These projections point towards steady medium to long term growth. These projections are depicted in Figure 1. Buildings Asset Management Plan Page 22 of 54

136 BUILDINGS ASSET MANAGEMENT PLAN Figure 1 Population Forecast Demographic Changes According to the ABS 2006 Census data, just over 60% of the total number of households in Boddington and Ranford have children. This distribution places pressure on facilities for young people and is likely to grow with the forecast increased population as Boddington develops economically and as a lifestyle destination Residential Development There are currently as many as ten scheme amendment/subdivision applications before Council for residential/rural residential developments. Five of these are sufficiently progressed in subdivision design to indicate that just over 1,000 residential lots will be available upon approval of these applications. Boddington and Ranford town sites currently have approximately 2.1 people per dwelling according to the 2006 Census data. Using this figure, approximately 2,730 additional people can be accommodated by the 1,300 residential lots currently progressed to subdivision design level (see Figure 2). Based on population forecasts, this capacity would serve the two town sites through to Dwellings Population (2.1/dwelling) Current (2006 Census) Designed Subdivision Capacity (approx) Total Figure 2 Buildings Asset Management Plan Page 23 of 54

137 BUILDINGS ASSET MANAGEMENT PLAN 4.2 Demand Planning The objective of demand management is to actively seek to modify customer demands for services in order to: Optimise the utilisation / performance of existing assets Reduce or defer the need for new assets Meet the organisations strategic objectives Deliver a more sustainable service Respond to customer needs It is vital to the success of the Asset Management Plan that demand factors be analysed comprehensively, and their impact quantified in terms of the following: The effect of the growth of the asset network Any possible future need to increase or decrease infrastructure The implementation of non-asset solutions, such as managing demand In addition to the factors mentioned above, risk affects demand for services and consequently the following must be taken into account. The methodology and accuracy of forecasts The currency of forecasts The uncertainty of forecasts Any unforeseen natural factors The forecasts for the Shire of Boddington, indicates moderate population growth in the area. This growth trend is expected to cause an increase in the buildings asset base as a result of increased demand. 4.3 Management Strategies Demand management strategies provide alternatives to the creation of new assets through modifying customer demands. A key long term strategy is to manage demand so that there are funds in place for the renewal, operation and maintenance of future services. Effective strategies maximise the utilisation of existing assets through consolidating services or disposing of assets that are surplus to requirements. The disposal strategy for building infrastructure is discussed in section of this document. The Shire of Boddington will need to carefully analyse and establish alternatives to the use of buildings assets in some circumstances where the relative demand cannot justify the replacement Buildings Asset Management Plan Page 24 of 54

138 BUILDINGS ASSET MANAGEMENT PLAN of some of the buildings for what they were originally intended. In addition, removal of some buildings from Council assets may need to be undertaken where it can be demonstrated that the buildings would be better managed and controlled by others, or the demand level is so low that allocation of funds toward the building can not be justified. Buildings Asset Management Plan Page 25 of 54

139 BUILDINGS ASSET MANAGEMENT PLAN 5.0 Risk Management The recognised objectives of risk management are to: Outline the process by which an organisation will manage risk associate with its 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 Prioritise the risks to identify the highest risks that should be addressed in the short to medium term The Shire of Boddington has acknowledged that Risk Management is an important part of its organisation in order to ensure that the interests of the community, its employees and contractors are protected by minimising loss arising from Councils activities and services. 5.1 Risk Principles & Process The process outlined in the International Standard AS/NZS/ISO 31000:2009 as illustrated in Figure 3 below, is utilised in order for Council to achieve the objectives of risk management. Figure 3 Buildings Asset Management Plan Page 26 of 54

140 BUILDINGS ASSET MANAGEMENT PLAN 5.2 Risk Management Framework The Shire of Boddington will develop an organisational wide approach to risk management. This risk management framework will consist of a risk management policy, a risk management strategy supported by a corporate risk register. The framework is designed to ensure that: All significant operational and organisational risks are understood and identified. The highest risks are identified and addressed. Risk reduction treatments are implemented which best meet business needs. Responsibilities for implementing, evaluating and managing risks are allocated to specific staff and reporting regimes adopted. 5.3 Risk Assessment The key risk management criteria relating to Councils building assets include: Public health and safety Service provision Environmental and legal compliance Security, theft & vandalism Image reputation, political and public relations Business interruption Financial risk escalating costs in deterioration Property damage through flooding, water damage or fire damage User group accountability Natural hazards Step 1: Risk Identification As part of its operational procedures, Council will undertake a review of potential risks. Any risks identified will be assessed to determine their potential impacts. The current and required controls are documented in the Corporate Risk Register. Within the building group, risks can be identified from a number of resources such as: Routine inspections by officers Reports from user groups and building occupants Industry information and trends Reports and complaints from the general public Information obtained from incident reports Step 2: Risk Analysis and Evaluation Risk analysis and evaluation follows the principles as set out by the international standard on risk management. The analysis considers both the likelihood and consequence of events and other Buildings Asset Management Plan Page 27 of 54

141 BUILDINGS ASSET MANAGEMENT PLAN risks. Table 1 shows a standard consequence table with descriptions of the different level of impact that could result. Table 1 Consequence Table LEVEL DESCRIPTION FINANCIAL IMPACT HEALTH REPUTATION OPERATION ENVIRONMENT 1 Insignificant Less than $1,000 No injuries Unsubstantiated, low impact, low profile or no news item. Little impact objectives still achieved with minimum extra cost or inconvenience Little impact 2 Low $1,000 to $10,000 First aid treatment Substantiated, low impact, low news profile. Inconvenient delays partial achievement of objectives with some compensating action taken Minor damage or contamination 3 Medium $10,000 to $50,000 Medical treatment Substantiated, public embarrassment, coverage in state media. Significant delays to major deliverables additional costs required and or time delays to achieve objectives. Adverse impacts Environmental damage requiring restitution or internal cleanup targets. 4 High $50,000 to $150,000 Death or extensive injuries Substantiated, public embarrassment, high coverage in state media, third party action. Unable to achieve corporate objectives or statutory obligations resulting in significant visible impact on service provision such as closure of facilities Minor Breach of legislation / significant contamination or damage requiring third party assistance 5 Extreme More than $150,000 Multiple deaths or severe permanent disablements Substantiated, public embarrassment, very high multiple impacts, high national news profile, third party action. Non achievement of key objectives. Unable to achieve corporate obligations. Major breach of legislation or extensive contamination and environmental damage requiring third party intervention The next process is to estimate the likelihood of a risk actually occurring. Table 2 shows a standard description of the levels of likelihood. Buildings Asset Management Plan Page 28 of 54

142 BUILDINGS ASSET MANAGEMENT PLAN Table 2 LEVEL DESCRIPTION EXAMPLES FREQUENCY A Almost Certain Expected to occur in most circumstances More than once per year B Likely Will probably occur in most circumstances At least once per year C Possible Should occur at some time At least once in three years. D Unlikely Could occur at some time At least once in ten years E Rare May occur, only in exceptional circumstances Less than once in fifteen years. With the consequence and likelihood levels chosen, the risk is then assigned a risk rating (Table 3). Table 3 Consequence Insignificant Low Medium High Extreme Almost Certain M H H E E Likelihood Likely M M H H E Possible L M M H H Unlikely L L M M H Rare L L M M H Buildings Asset Management Plan Page 29 of 54

143 BUILDINGS ASSET MANAGEMENT PLAN identified in relation to building assets. following risks have been Risk Details Ongoing deterioration of building assets Likelihoo d Risk Assessment Consequenc Risk Rating e Treatment Strategy Likely High High (16) 1. Regular condition inspections 2. Development of a prioritized capital works program Significant asset loss from disaster (fire, flood etc) Building in poor condition causes serious injury to staff or community member Inadequate values used for insurance purposes (financial & reputation risk) Unlikely Extreme High (10) 1. Sufficient insurance coverage 2. Preparation of business continuity plan for key buildings. Possible Medium Medium (9) 1. Prioritise capital and maintenance works based on condition and hierarchy 2. Submit appropriate funding requests for building inspections and maintenance Possible Extreme High (15) 1. Undertake professional valuations of buildings every 3 years. Buildings Asset Management Plan Page 30 of 54

144 BUILDINGS ASSET MANAGEMENT PLAN 6.0 Life Cycle Management Plan Assets are created and acquired to deliver the required services for Council. These assets are operated and maintained throughout their useful life, and their performance and condition are monitored to ensure they deliver the necessary service. Over the life of the asset, there will come a point where the asset is no longer performing at a satisfactory level and may be rehabilitated or improved. This can be repeated several times, however, eventually the asset will be disposed of and potentially replaced. The recurrent costs of operations and maintenance, the capital expenditure for rehabilitation, and the one-off cost of replacement all form part of the management plan outlines the management strategies, including operating strategies, maintenance strategies and capital investment strategies, for the entire life of building assets Physical Parameters The Shire of Boddington has 84 buildings within its control. These are valued at an estimated replacement cost of approximately $16,924,000. The Shire has captured the majority of its corporate building information into a building facilities database. A brief inspection of all buildings has been carried out which has enabled meaningful information to be produced, better enabling Council to manage its building assets in accordance with specific standards and levels of service. Specific parameters are not documented for the all of the buildings, e.g. age and size. These limitations will be addressed as part of the building asset management improvements (Section 8.3). Figure 4 illustrates the value of the building infrastructure by category. Building Category % by Value ADMINISTRATION / MUNICIPAL BUILDINGS AMENITIES BLOCK RESIDENTIAL / COMMERCIAL COMMUNITY FACILITIES (GENERAL) EMERGENCY SERVICES HALLS HERITAGE BUILDINGS MINOR BUILDINGS SPORTING FACILITIES TOURISM Figure 4 Buildings Asset Management Plan Page 31 of 54

145 BUILDINGS ASSET MANAGEMENT PLAN The current financial system does not readily enable the identification of individual operation, maintenance, renewal and capital costs for a particular asset. It is therefore difficult to track trends in the various costs for each building or building group. The system does however provide details on the combined operational and maintenance expenditures for an asset group. These details have been extracted and analysed to allow identification of the different expenditure classes Work Category Definitions Operations: Operational activities keep the asset utilized but have no effect on condition. Typical operational activities include: Cleaning Utility costs Pest control Security services Maintenance: Maintenance activities are those routine works which keep assets operating to the required service levels. They fall into two broad categories: 1. Planned Maintenance (proactive): inspection and maintenance works planned to prevent asset failure. 2. Unplanned Maintenance (reactive): Reactive action to correct asset malfunctions and failures on an as required basis (i.e. emergency repairs). Renewals: Renewal work is the replacement of an asset or a significant component to restore its original size and capacity. New Works: New works involve the extension or upgrade of assets required to cater for growth or additional levels of service. New works create an asset that did not exist or extend an asset beyond its original size or capacity. Asset Disposal: Costs associated with the removal, sale or demolition of decommissioned or surplus assets Asset Condition Buildings have a vast range of factors that influence their usability. From an asset management perspective, the various factors fall into one of the following groups: Fitness for Use Fitness for Purpose Fitness for Use is a measure constructed or refurbished. This measurement takes account of the current condition of the building structure, architectural finishes and services supporting the building use by the occupants. Fitness for Use has been the basis of the building condition audit undertaken. When rating fitness for use, the Shire of Murray uses a standard scale of 0-10, where 0 = new and 10 = total deterioration. Examples of these conditions are set out below. Buildings Asset Management Plan Page 32 of 54

146 BUILDINGS ASSET MANAGEMENT PLAN Condition 0: A new asset. Condition 1: A near new asset with no visible signs of deterioration, often moved to condition one based on the time since construction rather than observed condition decline. Condition 2: An asset in excellent overall condition. There would be only very slight decline but it would be obvious that the asset was no longer in new condition. Condition 3: An asset in very good overall condition but with some early stages of deterioration evident. The deterioration is minor in nature and causing no serviceability problems. Condition 4: An asset in good overall condition but with some obvious deterioration evident. Serviceability would be impaired very slightly. Condition 5: An asset in fair overall condition. Deterioration in condition would be obvious and there would be some serviceability loss. Condition 6: An asset in fair to poor overall condition. The condition deterioration would be quite obvious. Asset serviceability would now be affected and maintenance cost would be rising. Condition 7: An asset in poor overall condition. Deterioration would be quite severe and would be starting to limit the serviceability of the asset. Maintenance cost would be high. Condition 8: An asset in very poor overall condition with serviceability now heavily impacted by the poor condition. Maintenance cost would be very high and the asset would need to be rehabilitated. Condition 9: An asset in extremely poor condition with severe serviceability problems and needing rehabilitation immediately. Could also be a risk to remain in service. Condition 10: An asset that has failed, is no longer serviceable and should not remain in service. There would be an extreme risk in leaving the asset in service. The following graphs show the current condition distribution summaries component type. LONG LIFE STRUCTURE Buildings Asset Management Plan Page 33 of 54

147 BUILDINGS ASSET MANAGEMENT PLAN PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Within Cond in Year Good - Condition - 10 Poor Buildings Asset Management Plan Page 34 of 54

148 BUILDINGS ASSET MANAGEMENT PLAN SHORT LIFE STRUCTURE PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Within Cond in Year Good - Condition - 10 Poor ROOF STRUCTURE PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Within Cond in Year Good - Condition - 10 Poor Buildings Asset Management Plan Page 35 of 54

149 BUILDINGS ASSET MANAGEMENT PLAN MECHANICAL SERVICES PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Within Cond in Year Good - Condition - 10 Poor FITOUT PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Within Cond in Year Good - Condition - 10 Poor Buildings Asset Management Plan Page 36 of 54

150 BUILDINGS ASSET MANAGEMENT PLAN A full breakdown of the Shires building conditions is shown in the following table. Name Renewal Value Structure Long Life Structure Short Life Roof Structure Mechanical Services Building Fit Out Shire Office Shire Office - Detached iron and iron clad carport Transportable Office Boddington Hall Boddington Recreational Ground Sports Pavilion Boddington Recreational Ground Sports Pavilion Detached iron and iron clad officials box Boddington Oval Brick and iron clad ticket box * Rodeo Grounds Complex - Mens Toilet Block Rodeo Grounds Complex - Ladies Toilet Block Rodeo Grounds Complex - Snack Bar Rodeo Grounds Complex - Stage & Bar Rodeo Grounds Complex - Disabled Toilet Block Rodeo Grounds Complex - Iron and iron clad storage shed 1 Rodeo Grounds Complex - Iron and iron clad storage shed 2 Rodeo Grounds Complex - Timber framed ticket box Rodeo Grounds Complex - Timber framed ticket box Rodeo Grounds Complex - Rodeo Ring - Officials Box Boddington Community Newspaper SES Building Health Clinic Hotham River Foreshore - Toilet Block Works Depot Workshop Works Depot Workshop - Iron and iron clad detached chemical shed Works Depot Workshop - Iron and iron clad detached storage shed 2,175,000 3 N ,000 N 4 4 N N 125,000 N ,450,000 5 N ,595,000 3 N ,000 N 4 4 N N 20,000 N 2 2 N 2 55,000 N 5 4 N N 55,000 N ,000 N ,000 N 6 7 N 5 20,000 N ,000 N 7 7 N N 15,000 N 3 4 N N 7,500 N N 7,500 N N 10,000 N N 250,000 4 N ,000 2 N ,000 2 N ,000 3 N ,000 N ,000 N 4 4 N N 5,000 N 4 4 N N Buildings Asset Management Plan Page 37 of 54

151 BUILDINGS ASSET MANAGEMENT PLAN Works Depot Workshop - Iron and iron clad detached storage shed Works Depot Workshop - Dog Pound Works Depot Plant Garage Works Depot Office Works Depot Office - detached iron and iron clad toilet block Works Depot Office - Iron and Iron clad carport Works Depot Vehicle Garage Caravan Park Playgroup Caravan Park Playgroup - Iron and iron clad storage shed Caravan Park Playgroup - Iron and iron clad storage shed House 20 Prussian Way Ensuites Block Caravan Park Shower and Laundry Block Caravan Park Camp Kitchen Public Toilets Bannister Road House 16 Bluegum Close House - Iron and iron clad storage shed House - Iron and iron clad storage shed Swimming Pool Kiosk and Pump Room Swimming Pool - storage shed Swimming Pool Change Rooms and Toilets Boddington Arts Building Boddington Arts Building - iron and iron clad storage shed 1 Boddington Arts Building - iron and iron clad storage shed 2 Independent Care Units Independent Care Units Boddington Community Club - Club House Boddington Community Club - Iron and iron clad BBQ Shelter Boddington Community Club - Greenkeepers Shed Boddington Community Club - iron and iron clad storage shed House 25 Johnstone Street 12,000 N 3 3 N N 5,000 N 8 8 N 8 60,000 N 3 4 N N 120,000 N ,000 N ,000 N 4 4 N N 125,000 N 3 3 N N 250,000 N ,000 N 3 3 N N 5,000 N 3 3 N N 350,000 2 N ,000 3 N 3 N N 430,000 3 N ,000 2 N ,000 2 N ,000 3 N ,000 N 2 2 N N 5,000 N 3 3 N N 240,000 2 N ,000 N 3 3 N N 360,000 2 N ,000 2 N ,000 N 1 1 N N 10,000 N 2 2 N N 300,000 3 N ,000 3 N ,000,000 2 N ,000 N 3 3 N N 35,000 3 N 4 N N 10,000 N 2 2 N N 300,000 3 N 3 3 N Buildings Asset Management Plan Page 38 of 54

152 BUILDINGS ASSET MANAGEMENT PLAN House - iron and clad detached garage Rubbish Tip Office Quindanning Race Club - Woobala Bar Quindanning Race Club -Bar Quindanning Race Club - Spectators Shelter Quindanning Race Club - Officials Hut Quindanning Race Club - Quindanning Hall Quindanning Race Club - Shower Block Quindanning Race Club - Ladies Toilet Quindanning Race Club - Mens Toilet Rubbish Tip Storage Shed House 15 Bluegum Close House - Iron and iron clad shed Billy Goat Hill - Transmission Tower and Hut Caravan Park - Caretakers Residence Caravan Park - Iron and iron clad storage shed 1 Caravan Park - Iron and iron clad storage shed 2 Boddington Cemetery - Rotunda Second Council Depot - Shed Hotham River Foreshore - Rotunda Hortham River Foreshore - BBQ Shelter Memorial Gardens - Tourist Information Bay House 46 Johnstone Street Marradong Fire Station House 3 Peacan Place House 34 Hill Street Rodeo Grounds Complex - Riding Club Stable Rodeo Grounds Complex - Riding Club Stable - Iron and iron clad transportable toilet Rodeo Grounds Complex - Shearing Shed 30,000 3 N 3 N N 15,000 N ,000 N 6 7 N 5 24,000 N 6 6 N 6 6,000 N 5 7 N N 10,000 N 7 8 N N 20,000 N 5 4 N N 51,000 N N 10 55,000 N ,000 N ,000 N 4 4 N 4 380,000 2 N 2 2 N 30,000 N 2 2 N N 130,000 N N 140,000 N 3 3 N 1 5,000 N 1 1 N N 5,000 N 2 2 N N 20,000 N 2 2 N 2 55,000 N ,000 N 1 1 N 1 26,000 N 2 2 N 2 70,000 N 4 4 N N 350,000 3 N 3 3 N 80,000 N 1 1 N N 380,000 N ,000 N ,000 N 3 4 N N 15,000 N 6 5 N N 170,000 N 4 3 N 4 Table 6 Buildings Asset Management Plan Page 39 of 54

153 BUILDINGS ASSET MANAGEMENT PLAN Fitness for Purpose It considers the minimum feature set required and additional features desirable to enhance the usability of a building asset. Fitness for Purpose is tied to the use of a building asset rather than the asset itself and takes account of changing requirements for different features over time. In terms of Fitness for Purpose, a building initially fit for its intended purpose may cease to be so as standards and expectations change Asset Valuations this plan, the replacement costs stated will be those derived from this assessment. These values should be assessed as resources allow to ensure that they reflect the true replacement cost of building components on a cyclic basis Useful Life Useful life is used to determine the current value of the asset. Lifecycles have been based on 6) and the Moloney Asset Management Systems Renewal Gap Model, but adjusted to better reflect the local environment of the Shire of Boddington through officer knowledge. The useful life for building components for the purposes of this plan are as follows: Building Element Type Years/Life Short Life Structures Timber framed walls, timber floors, timber roof frame, timber cladding 80 years Long Life Structures Masonry/steel walls, concrete floor, steel/timber roof frame 120 years Roof Steel, tiles 60 years Mechanical Air conditioning, heating units etc 30 years Fitout Kitchens, storage, shelving, carpets etc 30 years Buildings Asset Management Plan Page 40 of 54

154 BUILDINGS ASSET MANAGEMENT PLAN To validate the estimated useful life of assets, a sample of building components should be selected and analysed to determine the deterioration rate of building components. This task has been included in the improvements section of this plan (8.3) 6.1 Operations & Maintenance O&M Strategy Currently the Shire of Boddington has no formal maintenance strategy in place for building assets. Current maintenance practices tend to be reactive which ultimately, will lead to asset deterioration that will cost the organisation more to rectify in the long term. The maintenance strategies that will be developed are anticipated to reduce both risk and reactive maintenance associated with building infrastructure. The maintenance strategy will: describe the systems and procedures to be used to plan and manage maintenance work specify the types of maintenance to be carried out establish the order of priority for maintenance activities describes inspection regimes and responsibilities Maintenance Activities The Building Maintenance section of the Building Department undertakes the maintenance of Typical maintenance activities provided in a Council building facility are listed in the table below: Table 7 Activity Frequency Servicing of heating and air conditioning systems Roofs Cleaning of gutters Termite control Plumbing Electrical unblocking drains, fixing leaks, replacing washers etc repairs to electrical systems Buildings Asset Management Plan Page 41 of 54

155 BUILDINGS ASSET MANAGEMENT PLAN Roofs repairing broken tiles, fixing leaks etc Internal and external walls Windows and doors replacing locks etc patching, painting and repairing etc patching and painting, repairing & Floors general repairs, sanding revarnishing, repainting & repolishing Inspecting and maintaining essential services (fire safety equipment) Repairing vandalism (graffiti, broken windows etc) Repairing fixtures and fittings Exit and Emergency Lighting The maintenance activities for building assets, along with factors that govern or influence them, are: Reactive (unplanned) maintenance activities. This is governed by the urgency of what is required. Proactive (planned) maintenance activities. These are generally more extensive repairs that are undertaken as part of a program of works to either prevent the breakdown of elements or components of a property or to bring those elements up to an acceptable condition. The extent of this program largely depends on funding allocations. Backlog maintenance activities. This refers to an accumulation of uncorrected or deferred deficiencies in an asset. This is governed by available funding and any future plans for a particular asset. Reactive work has historically encompassed the repair or replacement of building elements as they wear out or are damaged. By its nature, reactive work must be carried out as the need arises and cannot be scheduled in advance. A Building Maintenance Plan will instigate a movement towards a decreased percentage of reactive maintenance which will lead to increased savings through economies of scale which are able to be achieved in relation to planned maintenance activities. Work is prioritised as it arises on the basis of defined intervention levels and response times. Buildings Asset Management Plan Page 42 of 54

156 BUILDINGS ASSET MANAGEMENT PLAN Response times define a reasonable time frame within which it can be expected for Council to relation to the action of all identified hazards/defects. The intervention level defines the condition, state or risk level associated with an asset component, i.e. the point in time at which the asset is considered to be below an acceptable level of service. The intervention conditions set for building assets are: Asset Category Intervention Condition Structure 8.0 Roof 7.0 Mechanical 8.0 Fitout 7.0 Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure/breakdown experience, prioritising, scheduling and actioning the work. Reporting actual activity, in order to develop a maintenance history and improve maintenance and service delivery performance is currently not being resourced Inspections The purpose of inspections is to identify, record and report defects that are causing, or have the potential to cause: Disruption to service provision A security risk Degradation of asset performance Breach of regulations or legislation and / or condition including A financial risk cleanliness Property damage A public health or safety risk Inconvenience to staff and/or the public Limited resources exist to implement a formal inspection regime. The improvements required in this area are listed in Section 8.3. Buildings Asset Management Plan Page 43 of 54

157 BUILDINGS ASSET MANAGEMENT PLAN 6.2 Renewals & Replacements Rehabilitation and renewal is the outlay in an asset to maintain the current level of service by reinstating its original life. Typical building renewal works include replacement of existing: heating, cooling and air-conditioning systems roofs, spouting, downpipes & ceilings electrical systems and wiring floors and floor coverings (carpets, tiles, floorboards, stumps) plumbing systems (new cisterns, hand basins etc) fixtures and fittings (cupboards, white goods, shelving etc) doors, windows and window treatments (blinds, curtains, UV protection etc) replacement of internal partitioning signage Renewal Strategy & Plan Historically, renewal requirements were identified through advice from internal staff or community sources. The renewal requirements that were identified, such as a new roof or floor covering, then had to compete for funding with other capital works. Consequently, many renewal requirements were not funded. As part of the building maintenance plan a full condition audit should be regularly scheduled for each building on a rolling basis to identify and cost renewal needs. 6.3 New, Upgrade, Disposal New The strategy for Council acquiring new building assets or undertaking significant refurbishment is to firstly complete a project proposal and business case which will address issues such as: relevance to corporate goals impact on existing services / alignment to core business infrastructure community need analysis as to whether service can anticipated benefits be delivered without asset environmental impacts acquisition risk identification and treatment forecasted usage rates total life cycle costs value for money Buildings Asset Management Plan Page 44 of 54

158 BUILDINGS ASSET MANAGEMENT PLAN All new buildings planned to be added to Council building register must undergo this critical whole of life analysis that will consider the impact of longer term maintenance, as well as operating costs of the building on ility. This business case will provide Council with the necessary information to decide whether to proceed with the acquisition of a particular asset. Where decisions are made to proceed with additional buildings, provision will be built in to future budgets to accommodate the expenditure Upgrade Upgrade refers to works which improve an existing asset beyond its current capacity. This may result from growth, social or environmental needs. Upgrade/expansion of infrastructure will contribute to the overall infrastructure inventory and will require ongoing maintenance and renewal. Recognition of the impact that this activity has on the future sustainability of infrastructure should be considered for all projects. As such, any potential upgrades should undergo a whole of life analysis to ensure the overall viability of the project Disposal Disposal of an asset refers to its decommissioning, whether by sale, demolition or relocation. A key component of an asset management plan is the identification and disposal of surplus assets. This involves assessment of strategic goals and the recognition that some assets may be underperforming or surplus to operating requirements. Some disposals will attract no costs as they will either be transferred to a user group or the costs of demolition will be covered by the value of the building materials. A disposal strategy is based around the following principles: 1. If Council has a particular asset that is not aligned to its core services then that asset should be considered for disposal or opportunities to transfer the responsibility to a relevant entity should be investigated. 2. Council will look for opportunities to appropriately dispose of assets that are surplus to current and anticipated future requirements. The use of facilities in each township should be optimised to provide ratepayers with a value for money service. Any underutilised asset identified as being surplus will be disposed of by consulting the relevant parties and investigating options to consolidate and co-locate services and/or user groups. 3. Assets that are underperforming or are unsafe will be demolished and not replaced if there is no demonstrated ongoing need. Buildings Asset Management Plan Page 45 of 54

159 BUILDINGS ASSET MANAGEMENT PLAN The disposal of assets will result in financial and resource savings for the community. The vast majority of the disposals will attract no cost, as they will either be transferred to a user group, or the costs of demolition will be covered by the value of the building materials. Asset Disposal Process Surplus asset disposal is a three step process whereby the asset is evaluated from a strategic perspective, the disposal process is implemented where required, and the disposal process is reviewed. The emphasis is on ensuring that under-performing and non-essential assets are identified and disposed. 1. Asset Evaluation The disposal process begins with identifying surplus assets. Council should conduct regular strategic evaluations of its asset needs. During this process, assets are evaluated against the asset disposal principles outlined above. Where it is identified that an asset does not meet these criteria, it is to be identified as surplus and disposed. The evaluation process will also take into account public interest considerations. Examples of public interest considerations would be: where an asset has some form of significance to the community and there could be expected to be significant public resistance to disposal or transfer of ownership of the asset; where an asset has strategic significance for future infrastructure development. In such instances, a clear and demonstrated future planning requirement is needed to support continued ownership. Speculation on future usage does not constitute a clear and demonstrated future requirement; where there are significant heritage, environmental or public usage requirements that require ongoing local government ownership and management. The overall financial performance of the asset should also be evaluated. Where it is identified that the financial performance of an asset does not meet targets established, it should be identified as under-performing and considered for disposal. 2. Implementation of Disposal The method of disposal will be assessed against the principle of achieving the maximum benefit to the community through the disposal, including social, financial, economic and strategic factors. In circumstances where a transfer to a user group is proposed, consideration will be given to the 15 Buildings Asset Management Plan Page 46 of 54

160 BUILDINGS ASSET MANAGEMENT PLAN 3. Review of Disposal Process Following the disposal process, the Council should review outcomes and identify ways to improve performance for future processes. This would include, at appropriate times, a review of internal processes and structures that deal with asset disposal. Asset disposal performance can be monitored through the development of appropriate measures, such as: average time for disposal process; and / or finances. Asset Disposal Strategy The Shire of Boddington does not have a current building disposal strategy. This analysis of excess building infrastructure is critical Buildings Asset Management Plan Page 47 of 54

161 BUILDINGS ASSET MANAGEMENT PLAN 7.0 Financial Projections Financial forecast models assist in predicting the future financial requirements based upon the presumption that the buildings or elements will be replaced when the condition ratings reach a predetermined intervention level. This section presents a forecast financial summary for the next 20 years based on identified assumptions and trends. It is anticipated that the financial summary will be reviewed annually and continue to be refined as planning studies, strategies and increased financial analysis are completed Year Financial Forecast A 20 year financial forecast infrastructure. The model is based on the asset condition data and shows the funding required to achieve the desired level of service (intervention level). Figure 5 shows the annual expenditure required to renew building components as they reach the set intervention level. The renewal requirement doubles by 2018 and continues to increase to levels above $280,000 with the long terms requirement plateauing at approximately $250,000. The fitout component has the largest medium term expenditure requirement. This is due to the relatively high cost of fitout (15-20% of building cost), and the lower useful life of this component. PREDICTED ANNUAL RENEWAL EXPENDITURE REQUIREMENT IN $ To Treat All Assets that Reach Intervention - Separated by Asset Class Building Fit Out $300,000 $250,000 Mechanical Services $200,000 $150,000 Roof Structure $100,000 $50,000 Structure Short Life $ Year Ahead Structure Long Life Buildings Asset Management Plan Page 48 of 54

162 BUILDINGS ASSET MANAGEMENT PLAN Figure 5 Figure 6 shows the difference between the proposed and predicted level of expenditure and the effect on the asset portfolio if current expenditure remains constant. Currently 2% of building assets are above intervention. This will rise to approximately 22.5% by 2031 based on current annual renewal expenditure levels. Predicted Renewal Expenditure Requirement - Buildings Group % of Asset Base Above Intervention - Prop Renewal Exp. Model - Buildings Group $300, % Renewal Expenditure $250,000 $200,000 $150,000 $100,000 $50,000 $ % 15.0% 10.0% 5.0% 0.0% Predicted % of Asset Base above Intervention Year Ahead Figure 6 The most significant potential changes to the financial projections shown will result from the factors below: Assumptions have been made as to the average useful lives of the building assets based on current local knowledge, experience and historical trends. These need to be reviewed and the accuracy improved based on real time assessments of asset deterioration Changes in levels of service from those identified in this asset management plan Significant fluctuation in the cost of construction / replacement of buildings 7.1 Funding Capacity Current funding sources available for the building assets include: Rates Federal / State Government Grants Private developer contribution funds and direct construction Heritage Grants Buildings Asset Management Plan Page 49 of 54

163 BUILDINGS ASSET MANAGEMENT PLAN 7.2 Funding Options & Strategy Options Alternatives to accessing additional funding are: Raising rates Decreasing service levels Reducing building portfolio Strategy The future renewal requirement for building assets is a significant portion of the Shires expenditure. The large financial requirement creates a challenge in terms of funding, as all of the works are deemed essential based on useful life and minimum service levels. To ensure this financial requirement is accommodated, the following actions should be implemented: Decrease the quantity of maintenance and renewal requirements in accordance with a disposal strategy. Utilise grant funding to renew existing assets rather than construct additional infrastructure where possible. Actively pursue funding to maintain heritage assets. Ensure inclusion of renewal requirements in long term financial planning. 7.3 Confidence Levels The confidence in the data used as a basis for the financial forecasts has been assessed using the following grading system: Confidence Grade A B 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 data is old, some documentation is missing and reliance is placed on unconfirmed reports or some extrapolation. C D 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 Confidence Grade The confidence level for this report is "B" overall. Buildings Asset Management Plan Page 50 of 54

164 BUILDINGS ASSET MANAGEMENT PLAN 8.0 AM Practices, Performance Monitoring & Improvement 8.1 Asset Management Practices Asset management practices are the processes, analysis and evaluation techniques needed to support lifecycle asset management. This includes the following asset management functions. Knowledge of assets Levels of service Condition assessments Asset accounting - valuation, revaluation, depreciation Lifecycle planning Asset operations and maintenance Asset creation and disposal Performance monitoring Quality assurance and continuous improvement Risk management Design and project management Reviews and audit processes Weaknesses in the current asset management processes have already been identified by this document. The improvements identified and prioritised in Section 8.3, will improve the processes Council utilises to manage its assets enabling greater accuracy in demand and financial forecasting. 8.2 Data Systems Asset management data and knowledge is appropriate, accessible and reliable data that can be used with information systems to enable enhanced asset management. This includes the following data on the following asset characteristics and topics: Classification and identification Lifecycle costings Physical attributes Data quality Condition Risk information Cost and maintenance histories Valuation The following soft software is currently utilised in relation to asset management: Building Asset Register Financial system (Synergysoft) The table below identifies information responsibilities and requirements for the organisation to better support asset management. While a substantial amount of work has been undertaken to Buildings Asset Management Plan Page 51 of 54

165 BUILDINGS ASSET MANAGEMENT PLAN will assist in providing an accurate assessment of the portfolio and performance indicators in the future. Buildings Asset Management Plan Page 52 of 54

166 Data Current Practice Desired Practice Financial Data stored in Synergysoft Increased breakdown on expenditure type (renewal, maintenance, operational) Asset Captured in Asset Incorporated into Asset Management Hierarchy Management Plan Software Attribute Data Captured in Building Ongoing capture and improvement Information Database of data is required Condition Captured in Building Asset software that allows for History Information Database historical data would be beneficial 8.3 AM Improvements This document has been based on the International Infrastructure Model with the objective of, management practices, solutions to reduce the impact of these weaknesses have been developed. The improvement projects have been prioritised according to their urgency and importance and their implementation will depend on resources allocated. The following projects have been assets. Task Responsibility Timeline Undertake risk analysis of critical assets External 31 October 2011 Restructure ledgers to enable the gathering of financial data according to building component and work category. Review service levels and commence internal and elected member consultation on service level provision Develop a core business template for asset acquisition and upgrades Update and revise plan to reflect changes in asset portfolio, data completeness and business practices. Corporate Services 31 March 2012 Chief Executive 30 September 2012 Officer External 31 March 2012 External 30 June 2012 Buildings Asset Management Plan Page 53 of 54

167 Validate useful life of asset components External 30 September 2012 Develop a building disposal strategy for underperforming and under utilised assets that do not support core business Develop a Building Management Plan that considers maintenance practices, building hierarchy, inspection frequency and response times Develop and implement an inspection regime to minimise risk in relation to building infrastructure Increase quality and quantity of data for building attributes External 31 October 2012 External 30 June 2012 External 30 June 2012 and ongoing External ongoing 8.4 Monitoring & Review Procedures Monitoring The effectiveness of this asset management plan can be measured in the following ways: The degree to which the required cash flows identified in this asset management plan are The degree to which 1-5 year detailed maintenance and capital programs, budgets, business plans and organisational structures take into account processes and principles outlined in the asset management plan; Quantity of assets classified as being below acceptable service level; The level of user satisfaction based on comparative surveys from year to year. Ratio of planned maintenance to reactive maintenance Review This asset management plan has a life of three years and will be reviewed and updated by the Asset Management Working Group on an annual basis. This annual review will allow short and long term financial requirements to be updated to recognise any changes in service levels and/or the addition of new infrastructure to Councils portfolio. Buildings Asset Management Plan Page 54 of 54

168 SHIRE OF BODDINGTON DRAINAGE ASSET MANAGEMENT PLAN

169 Version No Version Control Date Details Author 1.0 Adoption of Plan Page 2 of 47

170 Table of Contents 1.0 Executive Summary Introduction Scope and Purpose of the Plan Plan Format... 9 Figure Key Stakeholders Links to Corporate Strategies Goals and Objectives of Asset Management Levels of Service Hierarchy Strategic & Corporate Goals Legislative Requirements Future Demand Demand Forecasts Demand Planning Management Strategies Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Life Cycle Management Plan Physical Parameters Work Category Definitions Asset Condition Asset Valuations Useful Life Operations & Maintenance O&M Strategy Maintenance Activities Inspections Renewals & Replacements Renewal Strategy & Plan New, Upgrade, Disposal New Upgrade Disposal Financial Projections Year Financial Forecast Funding Capacity Funding Strategy Drainage Asset Management Plan Page 3 of 47

171 7.3 Confidence Levels AM Practices, Performance Monitoring & Improvement Asset Management Practices Data Systems Information Flow Requirements and Processes AM Improvements Monitoring & Review Procedures APPENDIX 1 : TABLES OF KEY INDICATORS Drainage Asset Management Plan Page 4 of 47

172 1.0 Executive Summary The Drainage Asset Management Plan has been prepared in accordance with the and Infr $. The plan specifies the life cycle requirements for effective management, inspection and replacement of this asset group and outlines the financial implications of these requirements. This plan is intended to demonstrate how Council will meet the target levels of service by applying the principles of responsible asset management planning. Significant information has been gathered as a part of the development of this plan, including the value, condition and location of drainage infrastructure. This data has provided the foundation for the document. Asset management ensures that assets continue to provide an appropriate level of service delivery to the community. Levels of service provide the basis for life cycle asset management and are based on both customer expectations and statutory requirements. This plan is focused on clarifying and defining key elements of service for property assets and then identifying and costing future operations, maintenance renewal and upgrade works required to meet these levels of service. For the purposes of this plan, draft levels of service have been developed to create a baseline against which future performance can be measured. These levels of service will be analysed based on future community consultation and technical reviews to ensure they meet community expectations. The main driver of this plan is to determine the ongoing expenditure required to manage the assets to proved appropriate levels of service for the community of the Shire of Boddington. The expenditure has been determined using all existing information regarding the asset base, its condition and expected service delivery. Asset management is a journey involving continuous monitoring and improvement. Specific tasks and projects have been identified in this plan to ensure the progress of the asset management in relation to drainage infrastructure. Improving the Shire's asset management approach will ensure the provision of information required to ensure the whole of life costs involved in drainage asset management are acknowledged and the target levels of service are delivered to stakeholders. Major risks associated with the Shires drainage infrastructure have been identified and assessed according to the stated risk matrix. The existing data, along with the risk matrix contained in the plan, may be utilised to generate a drainage renewal program using a priority system. Drainage Asset Management Plan Page 5 of 47

173 This plan will be reviewed on an annual basis to incorporate any new infrastructure and the increase in the quality of data. From this section down this info is from our old DAMP. The text above I have pulled from The Drainage Asset Management Plan 2012 Shire of 2032 has been prepared in accordance with the 2013 to meet the strategic objective: and maintenance of the Shire's drainage infrastructure, and sets out strategies to ensure that standards and community expectations. The plan specifies the life cycle requirements for effective management, inspection and replacement of this asset group and outlines the financial implications of these requirements. It demonstrates how Council will achieve this outcome by applying the principles of responsible asset management planning. Asset management ensures that assets continue to provide an appropriate level of service delivery to the community. Levels of service provide the basis for life cycle asset management and are based on both customer expectations and statutory requirements. This plan is focused on clarifying and defining key elements of service for drainage assets and then identifying and costing future operations, maintenance renewal and upgrade works required to meet these levels of service. For the purposes of this plan, draft levels of service have been developed to create a baseline against which future performance can be measured. These levels of service will be analysed based on future community consultation and technical reviews to ensure they meet community expectations. The population and demographic changes that the Shire is experiencing have been examined with a view to forecasting future requirements for drainage assets increase significantly over the coming years and the future demand increase has been quantified through the demographic study conducted in The large amount of development is expected to significantly increase the asset base and future financial requirements in the long term. Major risks associated with the Shires drainage infrastructure have been identified and assessed according to the Shires adopted risk matrix. These risks have been included in the Corporate Risk Drainage Asset Management Plan Page 6 of 47

174 Register and will be reviewed by the Risk Management Committee. The majority of the risks identified within the Drainage Plan are based on the potential consequences of failure or collapse of drainage assets. Consequences may include street and property flooding, damage to property, personal injury and/or death, disruption to traffic movement and legal liability. The provision of a drainage asset information system is the cornerstone to drainage works. Benefits include assisting with strategic planning, risk management, analysing maintenance history, flooding events and having access to reliable and accurate information for staff and customers.the Shire has gathered a significant amount of drainage data as part of the development of this plan. This information, including the value, age, type and location of drainage infrastructure, has provided the foundation for this document. The main driver of this plan is to determine the ongoing expenditure required to manage the assets to proved appropriate levels of service for the community of the Shire of Boddington. The expenditure has been determined using all existing information regarding the asset base, its age and expected service delivery. The current drainage network has a replacement value of $. The total lifecycle cost of these assets is $ per annum. This is the averaged annual level of expenditure required to ensure all assets are maintained in accordance with the defined standards. Actual annual expenditure requirements will differ from year to year as specific assets come up for replacement, maintenance and renewal. Asset management involves continuous monitoring and improvement. Specific tasks and projects have been identified in this plan to ensure the progress of the asset management in relation to drainage infrastructure. Improving the Shire's asset management approach will ensure the provision of information required to ensure the whole of life costs involved in drainage asset management are acknowledged and the target levels of service are delivered to stakeholders. Major initiatives addressed by the Drainage Plan include measures to gain a greater appreciation of current drainage asset condition, planning for asset improvements based on a risk based approach and an ongoing routine underground drain inspection program. This plan will be reviewed on an annual basis to incorporate any new infrastructure and the increase in the quality and quantity of data. Drainage Asset Management Plan Page 7 of 47

175 2.0 Introduction The Shire of Boddington currently owns and maintains a significant network of drainage assets. The Asset Management Plan for drainage assets sets out how these vital assets will be managed until. It is a first generation document providing clear direction and guidance for the effective short and long term management of drainage infrastructure It will be refined over time, with annual updates incorporating any increase in infrastructure and improvement in processes. The key objectives of this Drainage Asset Management Plan are to: Communicate the current age of drainage infrastructure and review the financial capability of maintaining and renewing them Undertake financial planning by adopting a life cycle approach to asset budgeting Develop cost effective management strategies for the long term Define a level of service to meet community needs Understand and meet the demands of growth Avoid disruptions by managing risk associated with asset failures Continuously improve asset management practices 2.1 Scope and Purpose of the Plan This plan is the means for documenting management, financial and technical practices to ensure that the level of service required by customers is provided at the lowest long term cost to the community. It is intended to demonstrate responsive management of assets, compliance with regulatory requirements, and to communicate the amount of funding necessary to provide the required levels of service. The plan covers drainage assets that fall under the care, control and responsibility of the Shire of Boddington. Assets covered by this plan include: Asset Category Quantity Replacement Value ($) Pipes km $ Pits structures TOTAL $ $ Drainage Asset Management Plan Page 8 of 47

176 There are areas of drainage within the Shire that are not included within this plan due to the responsibility of the renewal and maintenance being that of an external party. These areas include: - The plan takes into account three main drivers in managing the drainage assets, which when combined determine the level of service of the asset. They are: 1. Function The plan considers the function of each component of each asset class based on its intended purpose; 2. Risk The various consequences resulting from a range of scenarios that flow from implementing different management practices, and; 3. Lifecycle cost The cost to the community, in consideration of the likely consequences, of implementing various management practices. The Shire of Boddington welcomes anyone seeking further information relating to this plan to contact: Mr Graeme Simpson Acting Chief Executive Officer Shire of Boddington Ph: (08) [email protected] 2.2 Plan Format This asset management plan follows the framework set out in the Institute of Public Works ucture Management Manual. Key elements of the plan are: Levels of service specifies the services and levels of service to be provided by council. Future demand how this will impact on future service delivery and how this is to be met. Life cycle management how Council will manage its existing and future assets to provide the required services Financial summary what funds are required to provide the required services. Asset management practices Monitoring how the plan will be monitored to ensure Asset management improvement plan This framework is outlined in the following diagram. Drainage Asset Management Plan Page 9 of 47

177 Section 1 Executive Summary Outline of Content Key Issues Section 2 Introduction Purpose & Scope of the Plan Plan Format Key Stakeholders Linkages to Corporate Strategies Section 3 Levels of Service Function & Hierarchy Customer Research Strategic & Corporate Goals Section 4 Future Demand Demand Forecasts Demand Planning Management Strategy Section 5 Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Operation & Maintenance O & M strategy Maintenance Agreement Maintenance Activities Inspections Section 6 Life Cycle Management Plan Physical Parameters Ownership Function Asset Capacity/Performance Condition Valuation Work Category Definitions Renewals & Replacements Renewal strategy & plan Risk Management Framework New, Upgrade, Disposal Planning criteria & assumptions Section 7 Financial Projections Current financial position Funding capacity Funding options & strategy Section 8 AM Practices, Performance Monitoring & Improvement AM Practices Data Systems AM Improvements Monitoring & Review Procedures Figure 1 The key steps in preparing an asset management plan are shown below. Drainage Asset Management Plan Page 10 of 47

178 CORPORATE PLANNING Confirm strategic objectives and establish AM policies, strategies & goals. Define responsibilities & ownership. Decide core or advanced AM Pan. Gain organisation commitment. AM PLAN REVIEW AND AUDIT IMPLEMENT IMPROVEMENT STRATEGY INFORMATION MANAGEMENT, and DATA IMPROVEMENT REVIEW/COLLATE ASSET INFORMATION Existing information sources Identify & describe assets. Data collection Condition assessments Performance monitoring Valuation Data ESTABLISH LEVELS OF SERVICE Establish strategic linkages Define & adopt statements Establish measures & targets Consultation LIFECYCLE MANAGEMENT STRATEGIES Develop lifecycle strategies Describe service delivery strategy Risk management strategies Demand forecasting and management Optimised decision making (renewals, new works, disposals) Optimise maintenance strategies FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding DEFINE SCOPE & STRUCTURE OF PLAN IMPROVEMENT PLAN Assess current/desired practices Develop improvement plan IS THE PLAN AFFORDABLE? ITERATION Reconsider service statements Options for funding Consult with Council Consult with Community ANNUAL PLAN / BUSINESS PLAN Figure 2 Drainage Asset Management Plan Page 11 of 47

179 2.3 Key Stakeholders The following groups have been identified as key stakeholders in the management and use of the drainage infrastructure. Stakeholder Expectations Councillors Meeting community needs, sound management and allocation of resources, good governance. Employees / Contractors Safe working environment. Community residents and businesses Insurers Tourists Government (Federal and State) Value for money, equitable and responsible service, well maintained assets. Appropriate risk management policies and practices, safe working environments. Well maintained and functioning assets, safe facilities. Systems in place to sustain infrastructure, accountability, transparency. 2.4 Links to Corporate Strategies This asset manag objectives. A thriving country town where families choose to live and be a part of a welcoming community, enjoy the enviable environment and the opportunities our economy provides Asset Management Plans are a crucial component of the Council planning process linking with the following corporate documents: Council Plan for the Future Strategic Plan 2009 Budget Plans and associated documents Asset Management Plans Boddington Ranford Townsite Strategy 2010 Asset Management Policy (pending) 2.5 Goals and Objectives of Asset Management The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets through construction by council staff, contractors and by donation of assets constructed by developers. Drainage Asset Management Plan Page 12 of 47

180 cost effective manner for present and future consumers. The key elements of infrastructure asset management are: Taking a life cycle approach, Developing cost-effective management strategies for the long term, Providing a defined level of service and monitoring performance, Understanding and meeting the demands of growth through demand management and infrastructure investment, Managing risks associated with asset failures, Sustainable use of physical resources, Continuous improvement in asset management practices. This drainage asset management plan has been prepared as a core asset management plan in accordance with the International Infrastructure Management Manual. Core asset management is designed to meet minimum legislative and organisational requirements for sustainable service delivery and long term financial planning and reporting. Future revisions of the asset management plan will move towards advanced asset management using a bottom up approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels. Figure 3 Drainage Asset Management Plan Page 13 of 47

181 3.0 Levels of Service The level of service is the defined service quality for the asset. Understanding the level of service required of an asset is essential fo development, operation, maintenance, replacement and disposal. Levels of service are pivotal in asset management as they have a direct financial impact due to their importance in both operational and risk-based prioritisation. A key objective of this asset management plan is to match the level of service provided by drainage with the expectations of stakeholders. This requires a clear understanding of needs, expectations, preferences and willingness to pay for any increase in the levels of service. Service levels are divided into two types: Community based; and Technical based Community based levels of service relate to the function of the service provided and how the customer receives the service in terms of functionality, availability and safety. Technical 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 affordability. Historically, the levels of service have been derived using historical budget allocations, internal consultation with stakeholders, statutory requirements and user feedback. The target levels of service defined in this plan will provide the basis for lifecycle management strategies and works programs. These will be reviewed continuously to incorporate additional or changing requirements. The following tables identify the current service levels and targets set by the organisation for drainage. Drainage Asset Management Plan Page 14 of 47

182 Community Levels of Service for Drainage Assets Key Performance Level of Service Performance Measurement Target Performance Current Performance Indicator Process Quality Provide efficient methods Customer requests relating to Less than 5 customer requests per 13 reports of blockages in the 6 of collection and disposal blockages month months from 1/1/ /6/2010 of stormwater Function Ensure stormwater system Customer requests relating to Less than 5 requests per annum 2 reports of property flooding in the meets user requirements property flooding 6 months from 1/1/ /6/2010 Safety Provide stormwater system Reported hazards from No more than 2 requests per year 2 reports of hazards in the 6 months free from hazards customer service requests from 1/1/ /6/2010 Technical Levels of Service for Drainage Assets Key Performance Level of Service Performance Measurement Indicator Process Quality To respond to works Assessment of time taken for requests in a timely completion of the works manner according to risk Condition Provide an appropriate Average age of pipe network stormwater drainage system to meet user requirements. To replace drainage assets in a timely manner, based on a Target Performance 90% of works to be completed within set time frames < 5% of network is > 95% of asset useful life. Current Performance Not measured. Based on the current data, 0% of the network is into the last 5% of its useful life. Drainage Asset Management Plan Page 15 of 47

183 prioritised strategy to prevent structural collapse, damage to property and traffic congestion. Safety Ensure stormwater is Analysis of designs 100% of drainage to be constructed All known drainage to be constructed in accordance conformance to appropriate in accordance with appropriate constructed is assessed in with appropriate design standards standards accordance with relevant standards standards by the Councils technical officers Drainage Asset Management Plan Page 16 of 47

184 3.1 Hierarchy Hierarchies are used to assign priorities for action and response times to assets of different importance. drainage portfolio, a methodology is required to place each asset into an order of significance. Those that are ranked higher are considered to be of higher importance as they deliver more critical core services and / or may have a higher impact rate in terms of risk. They therefore, attract a higher level of service to keep them in the appropriate condition than assets of lesser significance. The defining of hierarchies can be utilised to establish maintenance response arrangements for day to day defect management, cyclic maintenance priorities, forward capital works and hazardous condition management priorities. The factors that influence the hierarchy network are: 1. Road hierarchy 2. TPS Zoning Town Centre Residential / Commercial / Industrial Rural / Special Rural Regional Distributor District Distributor Local Distributor Access Roads Laneways n/a Customer Research Currently, limited information regarding community expectation is available, as customer consultation has not commenced. The Asset Management Working Group is committed to updating the levels of service according to the results of community feedback. As targets for levels of service provide the basis for lifecycle management strategies and capital programs, the current levels of service will be reviewed to incorporate the requirements of the community in subsequent versions of this plan. Drainage Asset Management Plan Page 17 of 47

185 3.2 Strategic & Corporate Goals The Shire Plan for the Future includes recognition of the need to develop and maintain quality Asset Management plans and systems. The Shire acknowledges the need to take an organisational wide approach to asset management and one which involves the community on a wider basis. The corporate goal is to have a whole of life cost approach to the provision and maintenance of assets, and to consider the ongoing costs of existing assets when making decisions on their renewal/replacement and the acquisition of new assets. Councils Asset Management Policy outlines the key principles that will be considered when making decisions in relation to infrastructure assets: Philosophy of renewing assets before acquiring new assets, with an emphasis on integrating services while maintaining / upgrading / replacing existing assets rather otherwise. Prior to consideration of any acquisition or major improvement to an asset, a critical review of the following will occur as part of the evaluation process: Demonstrated need and asset function Level of service Community benefits Overall community value of asset ownership Risk Implications Statutory Obligations Opportunities for rationalization including multiple use Whole of Life Cost Council will utilise clear prioritisation methods for capital works expenditure. This will include the requirement to report expenditure in a way that ensures that discretionary and non discretionary expenditure is identified The commitment to involve and consult with the community and key stakeholders when determining service levels. Develop Asset Management 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. Drainage Asset Management Plan Page 18 of 47

186 3.3 Legislative Requirements The relevant legislation governing drainage infrastructure includes: Legislation Requirement Local Government Act 1995 Sets out the role, purpose, responsibilities and powers of local governments. Environment Protection Act 1986 Regulations relating to stormwater and groundwater resources. Occupational Health & Safety Act 1984 Provide a work environment that is safe and as far as practicable without risk to health. Planning & Development Act 2005 Defines the land use and zoning in relation to infrastructure 4.0 Future Demand infrastructure. Some of these trends will inevitably impact the need for certain services and should 4.1 Demand Forecasts The key factors that directly impact the demand for drainage infrastructure are: Residential development Changes in Technology Residential Development There are currently as many as ten scheme amendment/subdivision applications before Council for residential/rural residential developments. Five of these are sufficiently progressed in subdivision design to indicate that just over 1,000 residential lots will be available upon approval of these applications. Boddington and Ranford town sites currently have approximately 2.1 people per dwelling according to the 2006 Census data. Using this figure, approximately 2,730 additional people can be accommodated by the 1,300 residential lots currently progressed to subdivision design level (see Figure 2). Based on population forecasts, this capacity would serve the two town sites through to Dwellings Population (2.1/dwelling) Current (2006 Census) Designed Subdivision Capacity (approx) Total Drainage Asset Management Plan Page 19 of 47

187 4.1.2 Changes in Technology Drainage assets are not predicted to become obsolete or used less due to changes in technology, however technology has the potential to reduce projected renewal expenditure by utilising structural relining methods. As structural lining becomes more widespread, economies of scale and further development within the industry will lead to reduced cost and extended lining service life. New robotic devices and CCTV conditioning and maintenance technology may also lead to cost reduction and increased efficiencies in condition and risk assessment of piped assets. 4.2 Demand Planning The objective of demand management is to actively seek to modify customer demands for services in order to: Optimise the utilisation / performance of existing assets Reduce or defer the need for new assets Meet the organisations strategic objectives Deliver a more sustainable service Respond to stakeholder needs It is vital to the success of the Asset Management Plan that demand factors be analysed comprehensively, and their impact quantified in terms of the following: The effect of the growth of the asset network Any possible future need to increase or decrease infrastructure The implementation of non-asset solutions, such as managing demand In addition to the factors mentioned above, risk affects demand for services and consequently the following must be taken into account. The methodology and accuracy of forecasts The currency of forecasts The uncertainty of forecasts Any unforeseen natural factors 4.3 Management Strategies Demand management strategies provide alternatives to the creation of new assets through modifying customer demands. A key long term strategy is to manage demand so that there are funds in place for the renewal, operation and maintenance of future services. Demand management practices include non-asset solutions, insuring against risks and managing failures. Drainage Asset Management Plan Page 20 of 47

188 The key long term strategy is to manage the demand so that services can still be provided into the future at a reasonable cost to the community. Stormwater demand management relates to the implementation of policies and measures that control or influence stormwater flows in a catchment. The key stormwater issues are: Existing stormwater drainage network deficiencies New development in drainage system deficient catchments Expansion of urban areas and increase in stormwater runoff Water conservation and reuse Stormwater quality Flood protection and mitigation strategies. 4.4 New Assets from Growth The new assets required to meet growth will be acquired from land developments and constructed by Council. Acquiring these new assets will commit Council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. Given the long life of drainage assets (i.e. 50 to 100 years) the growth from donated assets in the next 20 years is unlikely to have an impact on this asset management plan. Drainage Asset Management Plan Page 21 of 47

189 5.0 Risk Management The Shire of Boddington has acknowledged that Risk Management is an integral part of its organisation. The Risk Management Policy is a statement of commitment to ensure that the interests of the community, its employees and contractors are protected by minimising loss arising from Councils activities and services. The recognised objectives of risk management are to: Outline the process by which an organisation will manage risk associate with its 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 Prioritise the risks to identify the highest risks that should be addressed in the short to medium term 5.1 Risk Principles & Process The process outlined in the International Standard AS/NZS/ISO 31000:2009 as illustrated in Figure 5 below, is utilised in order for Council to achieve the objectives of risk management. Figure 4 Drainage Asset Management Plan Page 22 of 47

190 5.2 Risk Management Framework The Shire of Boddington has developed an organisational wide approach to risk management. This risk management framework consists of a risk management policy, a risk management strategy supported by a corporate risk register. The framework is designed to ensure that: All significant operational and organisational risks are understood and identified. The highest risks are identified and addressed. Risk reduction treatments are implemented which best meet business needs. Responsibilities for implementing, evaluating and managing risks are allocated to specific staff and reporting regimes adopted. 5.3 Risk Assessment The key risk management criteria relating to Councils drainage assets include: Public health and safety Environmental and legal compliance Image reputation, political and public relations Business interruption Financial risk escalating costs in deterioration Property damage through flooding Natural hazards Step 1: Risk Identification As part of its operational procedures, Council undertakes a review of potential risks. Any risks identified are assessed to determine their potential impacts. The current and required controls are documented in the Corporate Risk Register. Within the drainage group, risks can be identified from a number of resources such as: Routine inspections by officers Industry information and trends Reports and complaints from the general public Information obtained from incident reports Step 2: Risk Analysis and Evaluation Risk analysis and evaluation follows the principles as set out by the international standards on risk management. The analysis considers both the likelihood and consequence of events and other risks. Table 1 shows Councils adopted consequence table with descriptions of the different level of impact that could result. The officer undertaking a risk assessment would select the most relevant consequence level. Drainage Asset Management Plan Page 23 of 47

191 Table 1 Consequence Table LEVEL DESCRIPTION FINANCIAL IMPACT HEALTH REPUTATION OPERATION ENVIRONMENT 1 Insignificant Less than $1,000 No injuries Unsubstantiated, low impact, low profile or no news item. Little impact objectives still achieved with minimum extra cost or inconvenience Little impact 2 Low $1,000 to $10,000 First aid treatment Substantiated, low impact, low news profile. Inconvenient delays partial achievement of objectives with some compensating action taken Minor damage or contamination 3 Medium $10,000 to $50,000 Medical treatment Substantiated, public embarrassment, coverage in state media. Significant delays to major deliverables additional costs required and or time delays to achieve objectives. Adverse Environmental damage requiring restitution or internal cleanup targets. 4 High $50,000 to $150,000 Death or extensive injuries Substantiated, public embarrassment, high coverage in state media, third party action. Unable to achieve corporate objectives or statutory obligations resulting in significant visible impact on service provision such as closure of facilities Minor Breach of legislation / significant contamination or damage requiring third party assistance 5 Extreme More than $150,000 Multiple deaths or severe permanent disablements Substantiated, public embarrassment, very high multiple impacts, high national news profile, third party action. Non achievement of key objectives. Unable to achieve corporate obligations. Major breach of legislation or extensive contamination and environmental damage requiring third party intervention The next process is to estimate the likelihood of a risk actually occurring. Table 2 shows the Shire of Boddington Table 2 LEVEL DESCRIPTION EXAMPLES FREQUENCY A Almost Certain Expected to occur in most circumstances More than once per year B Likely Will probably occur in most circumstances At least once per year C Possible Should occur at some time At least once in three years. Drainage Asset Management Plan Page 24 of 47

192 D Unlikely Could occur at some time At least once in ten years E Rare May occur, only in exceptional circumstances Less than once in fifteen years. With the consequence and likelihood levels chosen, the risk is then assigned a risk rating (Table 3) and actions taken as required (Table 4). Table 3 Consequence Insignificant Low Medium High Extreme Almost Certain M H H E E Likelihood Likely M M H H E Possible L M M H H Unlikely L L M M H Rare L L M M H Table 4 Risk Control Measures RISK LEVEL RISK CONTROL MEASURES E Extreme Risk Immediate action required. Activity must not start, or if started must be stopped. Identify and implement controls to reduce risk to low before starting or recommencing the activity. Highest level corporate management needs to be involved. H High Risk Immediate action required. Activity must not start, or if started must be stopped. Identify and implement controls to reduce risk to low before starting or recommencing activity. Senior site management needs to be involved. M Moderate Risk Identify hazards and implement controls to reduce risks Management responsibility must be defined. L Low Risk Identify hazards and implement controls as required. Manage by routine processes. Drainage Asset Management Plan Page 25 of 47

193 Risks with regard to drainage identified in relation to drainage assets. Risk Details Ongoing deterioration of drainage assets Accident caused by drainage infrastructure Chemical spill or similar infiltrates through drainage system Recommended improvements in Drainage AMP not fully implemented Blockages / under performance of drainage assets Portions of the drainage network may contain asbestos and cause health problems to Shire staff Likelihoo d Risk Assessment Consequenc Risk Rating Treatment Strategy Responsibility Completion Date e Likely Medium High (12) 1. Scheduled condition inspections 2. Annual allocation of sufficient funding and resources Unlikely Extreme High (10) 1. Sufficient insurance coverage 3.Submit 2. Submission of appropriate funding requests for drainage inspections and maintenance Possible Medium Medium (9) 1. Prioritise capital and maintenance works based on condition and hierarchy 2. Maintain and update drainage database to ensure current data exists spatially Possible Medium Medium (9) 1. Assign responsibility for actions with review by Asset Management Working Group 2. Annual review of plan Likely Medium High (12) 1. Inspection and cleaning frequency according to asset hierarchy Rare High Medium (4) 1. Identify drainage assets constructed prior to 1976 and communicate this information to relevant Shire staff Technical Services EMT / Council Corporate Services Technical Services Technical Services Asset Management AMWG AMWG Technical Services Ongoing Annually Annually Annually Ongoing Quarterly Annually Ongoing Asset Management 31 December 2010 Drainage Asset Management Plan Page 26 of 47

194 6.0 Life Cycle Management Plan Assets are created and acquired to deliver the required services for Council. These assets are operated and maintained throughout their useful life, and their performance and condition are monitored to ensure they deliver the necessary service. Over the life of the asset, there will come a point where the asset is no longer performing at a satisfactory level and may be rehabilitated or improved. This can be repeated several times, however, eventually the asset will be disposed of and potentially replaced. The recurrent costs of operations and maintenance, the capital expenditure for rehabilitation, and the one-off cost of replacement all form part of th management plan outlines the management strategies, including operating strategies, maintenance strategies and capital investment strategies, for the entire life of drainage assets Physical Parameters The Shire of Boddington is characterised by a number of urbanised townships with a central service centre in Pinjarra. It is these areas that hold the large majority of stormwater drainage creeks and rivers and other overland flow to carry surface water away. These waterways are rarely in need of maintenance and are predominantly located on private property. Township areas have an extensive network of pipes and pits that are largely buried underground and out of sight. The only evidence of an underground stormwater drainage network in most cases, is where water either enters or exits from the man-made system or where pits such as junction boxes are raised to the surface to enable inspection and maintenance to occur more readily. As such, the condition of underground assets is difficult to ascertain without the use of CCTV technology which is both expensive and time consuming. Council has recently undertaken a data collection project, identifying and mapping all known drainage structures. This information can be viewed spatially via the Councils GIS mapping system. The Shire of Boddington has a network of km of pipes and pit structures within its control. These are valued at an estimated replacement cost of approximately $ M. The Shire captures drainage information into a MapInfo database. Specific parameters are not documented for the all of the drainage assets, e.g. condition. These limitations will be addressed as part of the drainage asset management improvements (Section 8.4). Table X illustrates the value of the pipe infrastructure by pipe type and diameter. Drainage Asset Management Plan Page 27 of 47

195 Diameter (mm) Length (m) Cost ($ per m) Replacement Value $ Type PVC ,274,428 RC ,906,340 RC ,303,299 RC ,825 RC ,540 RC ,305 RC ,463 RC ,379 RC ,500 RC ,316 RC ,214 Totals m $11,076,609 Table X Figure 5 illustrates the % of pipe diameters across the network Pipe Diameters by % of network 3% 4% <1% 7% 23% 10% 150mm 300mm 375mm 450mm 525mm 600mm 750mm 900mm 1050mm 1200mm 1350mm 52% Figure 5 Table X illustrates the value of the pit infrastructure by structure type. Drainage Asset Management Plan Page 28 of 47

196 Quantity Bubble up Pit 27 Combination Gully Pit 7 Combination Side Entry Pit 55 Double Gully Pit 14 Double Side Entry Pit 57 Endwall (Headwall) 501 Gully Pit 860 Junction Pit / Manhole 1041 Private Lot Connector 333 Side Entry Pit 614 Subsoil Manhole Cost (per structure $) Replacement Value $ , , , , , , ,870, ,639, , ,089, ,800 $6,158,275 78% of the drainage infrastructure has a verified installation date with the remaining 22% having its installation date estimated from officer knowledge. The age profi stormwater assets is shown below in Figure X. Based on the age profile it could be expected that there will be minimal renewal expenditure required over the modelling period, which would correlate with current practice and observation that the assets are in good to average condition. The Shire of Boddington stormwater network includes various pit structures in residential areas and heavier duty side entry pits in commercial and industrial areas. These pits come in various sizes to accommodate the quantity of overland flow entering the system at any one time which is largely determined by the catchment area, the slope of the land, the impervious area and the local rainfall intensity. Stormwater enters pipes which vary in diameter from 150mm PVC pipes to 1350mm reinforced concrete pipes. Both pipe types have a similar design life but concrete pipes are more susceptible to cracking, disjointing and spalling in the longer term. Newer pipes are almost always constructed from materials such as reinforced concrete, PVC and recently some small sections of poly. The benefits of these latter materials over concrete include they are easier and cheaper to construct because of the lighter weight and size, easier to join, are less prone to cracking and root intrusion, and have a lower coefficient of friction which improves hydraulic performance. Typically side entry pits on sealed roads are connected above ground by a network of concrete kerb and channel. The condition of the Drainage Asset Management Plan Page 29 of 47

197 kerb and channel and the cleanliness to which they maintained has a direct influence on the ability for Council to meet its service level objectives. Poorly constructed kerb and channel can cause water ponding to occur, leading to premature failure of the asset and expensive repair works. Similarly, where rubbish and leaf litter is left to accumulate, rainfall can wash this into the underground pits and pipes creating a risk of pipe blockage and further flooding. Although it has yet to be confirmed, some of the older components, pre-dating 1976, may contain asbestos. The risks associated with this material are well documented and extreme care and all necessary precautions need to be taken when repairing or replacing these t those pipe assets that may contain asbestos so that operations staff can be kept well informed of the hazards that they may face in their daily activities. The current financial system does not readily enable the identification of individual operation, maintenance, renewal and capital costs for a particular asset. It is therefore difficult to track trends in the various costs for each of the drainage components. The system does however provide details on the combined operational and maintenance expenditures for the asset group. These details have been extracted and analysed to allow identification of the different expenditure classes Work Category Definitions Operations: Operational activities keep the asset utilised but have no effect on condition. Typical operational activities include: Weed Spraying Inspections Maintenance: Maintenance activities are those routine works which keep assets operating to the required service levels. They fall into two broad categories: 1. Planned Maintenance (proactive): inspection and maintenance works planned to prevent asset failure. 2. Unplanned Maintenance (reactive): Reactive action to correct asset malfunctions and failures on an as required basis (i.e. emergency repairs). Renewals: Renewal work is the replacement of an asset or a significant component to restore its original size and capacity. Drainage Asset Management Plan Page 30 of 47

198 New Works: New works involve the extension or upgrade of assets required to cater for growth or additional levels of service. New works create an asset that did not exist or extend an asset beyond its original size or capacity. Asset Disposal: Costs associated with the removal, sale or demolition of decommissioned or surplus assets Asset Condition As Council does not have condition assessments for drainage assets, the condition profile has been derived from the age of the asset. Where there is little or no age data available, the condition has been derived from the average age of development of the land immediately surrounding the asset. While data from the majority of the developments is evidenced, approximately 20% of the assets construction dates are based on broad estimations. The estimates for this percentage are at worst considered to within 5 years of the actual construction date, and given the long life of drainage assets, the difference in financial predictions and asset failures is considered to be insignificant in the reporting period. It is proposed that in the future, the condition of an asset will be supported by a visual rating system that assigns a condition rating on the asset based on how it appears to be functioning in providing its service to the community. It is likely that this rating will be undertaken by third party consultants who are familiar with the various stages of distress for pits and pipes, and can provide a reliable assessment for what condition the asset is in based on its visual appearance. PITS Drainage Asset Management Plan Page 31 of 47

199 30.00 PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Within Cond in Year Good - Condition - 10 Poor Figure 6 ASSET CONDITION DISTRIBUTION CHANGE BY % Condition Distribution in Year 2010 Predicted Cond. Distribution in Year 2020 % of Asset Base in Condition Rating Good - Condition - 10 Poor Figure 7 Drainage Asset Management Plan Page 32 of 47

200 PIPES PRESENT CONDITION DISTRIBUTION BY % OF ASSET BASE % WITHIN CONDITION RATING % Within Cond in Year Good - Condition - 10 Poor Figure 8 ASSET CONDITION DISTRIBUTION CHANGE BY % Condition Distribution in Year 2010 Predicted Cond. Distribution in Year 2020 % of Asset Base in Condition Rating Good - Condition - 10 Poor Figure 9 Drainage Asset Management Plan Page 33 of 47

201 6.0.4 Asset Valuations Current valuations of the drainage network have been derived from standard replacement costs for the Shire of Boddington and Rawlinsons construction guide (PVC pipe). These costings include the removal and disposal of drainage components. No additional costs have been allowed for disposal of drainage assets that may contain asbestos, however this will be reviewed in further updates of this plan Useful Life Useful life is used to determine the current value of the asset. Lifecycles have been derived from a variety of knowledge bases including the ent 6) Moloney Asset Management Systems Renewal Gap Model and industry standards. Asset Component Useful Life Asset Component Type Useful Life (yrs) Pipe Concrete 100 PVC 100 Pits Side Entry Pit 100 Gully Pit 100 Junction Pit Operations & Maintenance O&M Strategy Currently the Shire of Boddington has no formal maintenance strategy in place for Councils drainage assets. The majority of current maintenance practices are reactive. Ultimately, a high percentage of reactive maintenance works will lead to asset deterioration that will cost the organisation more to rectify in the long term. The development of maintenance strategies have been identified as a priority to reduce risk and reactive maintenance. The maintenance strategy will: describe the systems and procedures to be used to plan and manage maintenance work specify the types of maintenance to be carried out establish the order of priority for maintenance activities describes inspection regimes and responsibilities Drainage Asset Management Plan Page 34 of 47

202 6.1.2 Maintenance Activities The Operations section of the Technical Services Department undertakes the maintenance of drainage network. Proactive maintenance and rehabilitation of storm-water pipe networks is critical in minimising the risk of flooding during storm events in urban areas. Typical maintenance activities are listed in the table below: Activity Unblocking drains Minor maintenance and inspections Frequency After first winter rains and as required Prior to first winter rains at known trouble spots The maintenance activities for drainage assets, along with factors that govern or influence them, are: Reactive (unplanned) maintenance activities. This is governed by the urgency of what is required. Proactive (planned) maintenance activities. These are generally more extensive repairs that are undertaken as part of a program of works to either prevent the breakdown of elements or components of an asset or to bring those elements up to an acceptable condition. The extent of this program largely depends on funding allocations. Backlog maintenance activities. This refers to an accumulation of uncorrected or deferred deficiencies in an asset. This is governed by available funding and any future plans for a particular asset. Reactive work has historically encompassed the repair or replacement of drainage components as they are damaged. By its nature, reactive work must be carried out as the need arises and cannot be scheduled in advance. Work is prioritised as it arises on the basis of defined intervention levels and response times. A drainage maintenance plan will be developed to define target response levels with regard to reactive maintenance. This is anticipated to lead to increased savings through economies of scale which are able to be achieved in relation to planned maintenance activities. The intervention level defines the condition, state or risk level associated with an asset component, i.e. the point in time at which the asset is considered to be below an acceptable level of service. The intervention conditions set for drainage assets are: Drainage Asset Management Plan Page 35 of 47

203 Asset Component Intervention Condition Pit Structures 8.0 Pipe Structures 8.0 Planned maintenance is repair work that is identified and managed through a maintenance management system. Activities include inspection, assessing the condition against failure, prioritising, scheduling and actioning the work. Reporting actual activity, in order to develop a maintenance history and improve maintenance and service delivery performance is currently not being resourced Inspections The purpose of inspections is to identify, record and report defects that are causing, or have the potential to cause: Disruption to service provision A security risk Degradation of asset performance Breach of regulations or legislation and / or condition including A financial risk cleanliness Infrastructure damage A public health or safety risk Inconvenience to staff and/or the public The current inspections frequency for drainage assets is annually, at known trouble spots. This occurs prior to the first winter rain and followed up after rain to identify any blockages. Inspection frequencies will be defined in the pending Drainage Maintenance Plan. 6.2 Renewals & Replacements Rehabilitation and renewal is the outlay in an asset to maintain the current level of service by reinstating its original life. Typical drainage renewal works include replacement of existing pit and pit structures Renewal Strategy & Plan Assets requiring renewal are identified from customer requests, analysis of the network condition and estimates of remaining life. Renewal will be undertaken using low cost renewal methods where practical. The aim of low cost renewals is to restore the service potential or Drainage Asset Management Plan Page 36 of 47

204 future economic benefits of the asset by renewing the assets at a cost less than replacement cost. An example of a low cost renewal method is pipe relining. Pipe relining is undertaken where structural strength is sufficient. Assets proposed to be renewed are inspected to verify the accuracy of the remaining life and to develop a preliminary renewal estimate. Verified proposals are ranked by priority and availability of funds and scheduled in future works programs. The priority ranking criteria is detailed in Table x. Criteria Weighting Perceived Risk Factor 40% Pipe Size (Catchment area) 20% Previous Performance History 20% Customer Requests 20% 6.3 New, Upgrade, Disposal New The strategy for Council acquiring new drainage assets or undertaking significant refurbishment is to firstly complete a project proposal and business case which will address issues such as: relevance to corporate goals alignment to core business community need anticipated benefits environmental impacts risk identification and treatment total life cycle costs impact on existing services / infrastructure analysis as to whether service can be delivered without asset acquisition Drainage Asset Management Plan Page 37 of 47

205 All new drainage components planned to be added to Council must undergo this critical whole of life analysis that will consider the impact of longer term maintenance, as well as operating costs of the asset. This business case will provide Council with the necessary information to decide whether to proceed with the acquisition of a particular asset. Where decisions are made to proceed with additional assets, provision will be built in to future budgets to accommodate the expenditure Upgrade Upgrade refers to works which improve an existing asset beyond its current capacity. This may result from growth, social or environmental needs. Upgrade of infrastructure will contribute to the overall infrastructure inventory and will require ongoing maintenance and renewal. Recognition of the impact that this activity has on the future sustainability of infrastructure should be considered for all projects. As such, any potential upgrades should undergo a whole of life analysis to ensure the overall viability of the project. Typically, upgrade to drainage assets occur due to the lack of capacity of the existing asset Disposal Disposal of an asset refers to its decommissioning, whether by demolition or relocation. A key component of an asset management plan is the identification and disposal of surplus assets. This involves assessment of community needs and the recognition that some assets may be under-performing or surplus to requirements. No drainage assets have been identified for disposal through either an excess in the asset base or a transfer of responsibility of assets. Drainage Asset Management Plan Page 38 of 47

206 7.0 Financial Projections Financial forecast models assist in predicting the future financial requirements based upon the presumption that the drainage components will be replaced when the condition ratings reach a predetermined intervention level. This section presents a forecast financial summary for the next 20 years based on identified assumptions and trends. It is anticipated that the financial summary will be reviewed annually and continue to be refined as planning studies, strategies and increased financial analysis are completed Year Financial Forecast A 20 year financial forecast has been developed to drainage infrastructure. The model is based on the asset condition data and shows the funding required to achieve the desired level of service (intervention level). Figure 10 shows the annual expenditure required to renew drainage components over the next 20 years. These estimates are based on the year of construction and a need to relace the assets as they reach their intervention level (93 years). The requirement for drainage renewal is very low for the initial 5 years due to the construction age and relatively long life of the asset components. PREDICTED ANNUAL RENEWAL EXPENDITURE REQUIREMENT IN $ To Treat All Assets that Reach Intervention - Separated by Asset Class $120,000 $100,000 $80,000 $60,000 $40,000 Pipes $20,000 $ Year Ahead Pits Drainage Asset Management Plan Page 39 of 47

207 Figure 10 Figures X and X show the financial requirements broken down by component. Figure x shows the requirement for pits and figure x for pipes. Predicted Annual Renewal Requirement in $ - For Pits $40,000 Predicted Annual Capital Exp Requirement $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $ Year Ahead Figure 11 Predicted Annual Renewal Requirement in $ - For Pipes $70,000 Predicted Annual Capital Exp Requirement $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $ Year Ahead Figure 12 Drainage Asset Management Plan Page 40 of 47

208 Figure 13 shows the breakdown of estimated maintenance and renewal requirements. Due to the relatively new asset base, maintenance costs based on asset deterioration are not a factor until PREDICTED RENEWAL REQUIREMENT WITH CONSEQUENTIAL MAINT. In $ Predicted Renewal Expenditure Requirement - Storm Water Predicted Consequential Maintenance - Storm Water $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ Year Ahead Figure 13 The most significant potential changes to the financial projections shown will result from the factors below: Assumptions have been made as to the average useful lives of the drainage assets based on current local knowledge, experience and historical trends. These need to be reviewed and the accuracy improved based on real time assessments of asset deterioration Drainage assets have been classified on a component basis (i.e. pits and pipes). Further classification of these components into subcomponents may result in shorter life spans and / or different conditions being allocated to the subcomponents. Significant fluctuation in the cost of construction / replacement of drainage components 7.1 Funding Capacity Current funding sources available for the drainage assets include: Rates Private developer contribution funds Drainage Asset Management Plan Page 41 of 47

209 7.2 Funding Strategy Strategy The financial projections show total renewal costs for Councils drainage over the next 20 years to be approximately $. This amounts to $ per annum when spread evenly over the 20 years. The most substantial period expenditure is predicted for onwards where in excess of $ per annum is required for renewal. The reason for this increase is that the infrastructure is ageing and more components are nearing intervention level. To reduce this financial requirement the following options are available: Investigate alternative means of renewal. Undertaking regular condition analysis to determine if additional life is able to be derived from the asset. 7.3 Confidence Levels The confidence in the data used as a basis for the financial forecasts has been assessed using the following grading system: Confidence Grade A B 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 data is old, some documentation is missing and reliance is placed on unconfirmed reports or some extrapolation. C D 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 Confidence Grade The confidence level for this report is "B" overall. Drainage Asset Management Plan Page 42 of 47

210 8.0 AM Practices, Performance Monitoring & Improvement 8.1 Asset Management Practices Asset management practices are the processes, analysis and evaluation techniques needed to support lifecycle asset management. This includes the following asset management functions. Knowledge of assets Levels of service Condition assessments Asset accounting - valuation, revaluation, depreciation Lifecycle planning Asset operations and maintenance Asset creation and disposal Performance monitoring Quality assurance and continuous improvement Risk management Design and project management Reviews and audit processes Weaknesses in the current asset management processes have been identified by this document. The improvements identified and prioritised in Section 8.3, will improve the processes Council utilises to manage its assets enabling greater accuracy in demand and financial forecasting. 8.2 Data Systems Asset management data and knowledge is appropriate, accessible and reliable data that can be used with information systems to enable enhanced asset management. This includes the following data on the following asset characteristics and topics: Classification and identification Valuation Physical attributes Lifecycle costings Age Data quality Maintenance history Risk information The following software is currently utilised in relation to asset management: MapInfo (mapping and data) Synergysoft (financial system) Geographical Information System Drainage asset data has been mapped spatially via MapInfo and the network can be viewed by all staff through the Geographical Information System. The quality of the data varied at the initial input depending on the quality of the plans available. Different confidence in data was reflected through the use of colours and a corresponding legend. The data quality for the majority of drainage assets Drainage Asset Management Plan Page 43 of 47

211 is good with most construction dates known. This will improve over time with regular inspections, condition reassessments and estimation of remaining life. The implementation of Roman II is anticipated in February It is likely that this asset management software will become the primary database for drainage assets supported by the spatial data in MapInfo. The table below identifies information responsibilities and requirements for the organisation to better support asset management. While a substantial amount of work has been undertaken to in providing an increase in accuracy of the network and performance indicators in the future. Data Current Practice Desired Practice Responsibility Financial Data stored in Synergysoft Increased breakdown on expenditure type (renewal, maintenance, operational and urban v rural drainage) Asset Hierarchy Captured in Asset Management Plan Incorporated into Asset Management Software Finance Asset Management Attribute Data Captured in Mapping Software Ongoing capture and improvement of data. Investigation of capacity of Roman II to contain attributes. Asset Management 8.3 Information Flow Requirements and Processes The key information flows into the asset management plan are: The asset register data on location, size and age of the network The unit rates for replacement of structures The target service levels The key information flows from this asset management plan are: Budget, valuation and depreciation projections Useful life analysis 8.4 AM Improvements This document has been based on the International Infrastructure Model with the objective of t processes, information systems, management practices, solutions to reduce the impact of these weaknesses have been developed. The improvement projects have been prioritised according to their urgency and importance and their implementation will depend on resources allocated. The following projects have been assets. Drainage Asset Management Plan Page 44 of 47

212 Task Responsibility Resources Timeline Restructure ledgers to enable the gathering Technical Services / Internal 31 March 2011 of financial data according to renewal and Finance maintenance expenditure and type of drainage (urban / rural). Review service levels and commence Technical Services Internal 31 October 2011 consultation on service level provision. Asset Management Enhance the detail of drainage data by defining the network at sub-component Asset Management Internal 31 December 2011 level Regular (every 2 years) revaluation of Technical Services Internal 31 July 2012 component replacement. Asset Management Update and revise plan to reflect changes in Asset Management Internal annually asset portfolio, data completeness and business practices. Investigate risk factors in the failure of Technical Services Internal 31 August 2011 drainage infrastructure, including but not limited to the existence of acid sulphate soils. Development of a Drainage Maintenance Technical Services Internal 30 June 2011 Plan Full participation in the DSpec project Asset Management / Technical Services Internal Ongoing implementation process to be complete by 30 September 2010 Develop photo guide for the condition of Asset Management / Internal 31 December drainage assets Technical Services 2011 Drainage condition rating CCTV camera Technical Services E$10/m Ongoing based on risk of asset failure 8.5 Monitoring & Review Procedures Monitoring The effectiveness of this asset management plan can be measured in the following ways: The degree to which the required cash flows identified in this asset management plan are The degree to which 1-5 year detailed maintenance and capital programs, budgets, business plans and organisational structures take into account processes and principles outlined in the asset management plan; Quantity of assets classified as being below acceptable service level; Drainage Asset Management Plan Page 45 of 47

213 The level of user satisfaction based on comparative surveys from year to year. Ratio of planned maintenance to reactive maintenance Review This asset management plan has a life of twenty years but will be reviewed and updated by the Asset Management Working Group on an annual basis. This annual review will allow short and long term financial requirements to be updated to recognise any changes in service levels and/or the addition of new infrastructure to Councils portfolio. Drainage Asset Management Plan Page 46 of 47

214 APPENDIX 1 : TABLES OF KEY INDICATORS Pipes Total Asset Group Quantity 70,249 Av Annual Renewal Demand (Long Term) $110,766 Units Metres Av Unit Renewal Cost in $/Unit Total Cost to Renew the Whole Asset Group in $ Re-treatment Intervention Condition Level Return Condition Level following Renewal Asset Life To Intervention Condition $11,076, % at and above Intervention Level (In Poor Condition) Present Value of assets above Intervention % at & Under Condition 2 (In Excellent Condition) 0% $0 47% Total Asset life in Years 93.0 Pits Total Asset Group Quantity 3,573 Av Annual Renewal Demand (Long Term) $61,583 Units No Av Unit Renewal Cost in $/Unit 1, Total Cost to Renew the Whole Asset Group in $ Re-treatment Intervention Condition Level Return Condition Level following Renewal Asset Life To Intervention Condition $6,158, % at and above Intervention Level (In Poor Condition) Present Value of assets above Intervention % at & Under Condition 2 (In Excellent Condition) 0% $0 47% Total Asset life in Years 93.0 Buildings Asset Management Plan Page 47 of 47

215 SHIRE OF BODDINGTON PARKS ASSET MANAGEMENT PLAN

216 Version No Version Control Date Details Author 1.0 Adoption of Plan Parks Asset Management Plan Page 2 of 53

217 Table of Contents 1.0 Executive Summary Introduction Scope and Purpose of the Plan Plan Format Key Stakeholders Links to Corporate Strategies Function & Hierarchy Strategic & Corporate Goals Legislative Requirements Future Demand Demand Forecasts Demand Planning Management Strategies Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Life Cycle Management Plan Operations & Maintenance Inspections Renewals & Replacements Renewal Strategy & Plan New, Upgrade, Disposal New Upgrade Disposal Financial Projections Year Financial Forecast Funding Capacity Funding Options & Strategy Confidence Level Asset Management Practices Data Systems AM Improvements Monitoring & Review Procedures Parks Asset Management Plan Page 3 of 53

218 1.0 Executive Summary The Shire of Boddington provides a network of parks infrastructure to enable delivery of services to the community. The Shires parks assets include sporting ovals, playgrounds, park furniture, carparks, hard surface sporting facilities, water tanks, barbeques, skate parks, fencing,minor structures, flood lighting and lighting. Parks asset management activities include the planning, acquisition, maintenance, renewal, replacement and disposal of the Shires parks infrastructure. The Shire has developed a basic parks asset inventory and currently conducts regular inspections of related infrastructure. Utilising this knowledge, the hierarchy, class and replacement values of the park infrastructure have been calculated. Levels of service provide the basis for life cycle asset management and are based on both customer expectations and statutory requirements. Asset management ensures that assets continue to provide an appropriate level of service delivery to the community. For the purposes of this plan, draft 'levels of service' have been developed to create a 'baseline' against which future performance can be measured. These levels of service will be reviewed based on future community consultation and technical reviews to ensure they meet community expectations. The population and demographic changes that the Shire is experiencing have been examined with a view to forecasting future demand for parks. The expected to increase significantly over the coming years and the future demand increase has been quantified through the demographic study conducted in The Shire's risk management plan is currently under development although basic risk management is discussed in this plan. Risks have been assessed according to a standard risk matrix and will be included in the Corporate Risk Register. The Shire has compiled a basic parks inventory as part of the development of this plan. This provides information such as the value, condition, age and location. Improving the Shire's asset management approach will ensure the provision of information required to ensure the 'whole of life' costs involved in parks asset management are minimised. The existing data, along with the risk matrix contained in the plan, may be utilised to generate Parks Asset Management Plan Page 4 of 53

219 parks renewal programs using a priority system. It is recommended that this priority system be the prime criteria for the development of annual parks programs. Based on knowledge of the current portfolio and expenditure, a 20-year financial forecast was developed primarily to identify any effects on service potential. It was discovered that funding of parks assets has been sufficient to maintain a good level of service to the community with the majority of parks assets in a good condition. The main financial outlay will be as a result of the aging infrastructure that will reach the end of its life in the next 20 years. Asset management practices, with respect to parks assets, were examined in order to identify improvements to current systems. The inventory should be updated annually with detailed condition audits and valuations undertaken on at least a 3 yearly cycle. A formal inspection regime should be undertaken regularly, as resources allow. Maintenance management, both reactive and programmed, also needs to be developed further to ensure maintenance regimes are documented and tasks and inspections are recorded. The mix of reactive and programmed maintenance must be optimised. This plan is based on a corporate management approach and will assist in the development of parks management activities and programs that are linked to effective and well-structured asset management practices. This will achieve a safe and functional parks infrastructure portfolio that meets customer expectations and delivers financial sustainability. Parks Asset Management Plan Page 5 of 53

220 2.0 Introduction Asset Management Plans are concerned with outlining optimal life cycle management strategies. The identification of future needs, management options and cash flows provides the ability to even out peak funding demands. This Asset Management Plan is the means for documenting management, financial, and technical practices to ensure that the level of service required by customers is provided at the lowest long term cost to the community. The main benefits derived from AM planning are: Improved understanding of service level options and standards; Minimum lifecycle costs are identified for an agreed level of service; Better understanding and forecasting of asset related management options and costs; Managed risk of asset failure; Improved decision making based on costs and benefits of alternatives; Clear justification of forward works programs and funding requirements; Improved accountability over the use of public resources; Improved customer satisfaction and organisational image; Limiting the rate of deterioration of infrastructure. The Shire of Boddington delivers a variety of services to the community and in doing so, must ensure that the assets supporting these services are managed in a way that guarantees maximum performance for the lowest 'whole of life' cost. This is the first Parks Asset Management Plan developed by the Shire and seeks to provide a more formal approach to facilities management through the adoption of asset management principles and methodology. This will be achieved by clearly defining renewal and maintenance practices. This Asset Management Plan has been prepared by the Shire's Asset Management Working Group, and provides core resource information for users. It will be continuously reviewed and updated to improve its quality and to ensure continuing relevance. This document has been written with the intention of being informative and readily understood by persons interested in the actions of the Shire, and in particular, parks assets. It seeks to provide an Parks Asset Management Plan Page 6 of 53

221 sustainability. 2.1 Scope and Purpose of the Plan The Parks Asset Management Plan covers open space and recreation assets within the Council area. The key subgroups of this plan are: o Playgrounds o Carparks o Barbeques o Hard Surface Sporting Facilities o Park Furniture o Skate Park o Water Tanks o Lighting o Flood Lighting o Fencing A number of subgroups are not included within this plan due to the lack of data available and the time constraints. These include: o Wetlands o Bores o Trees o Reticulation o Passive Reserves o CBD streetscapes The purpose of this plan is to assist the Council and Executive to make informed decisions on the allocation of resources to manage these assets and to communicate this information to the public. The key objectives of this plan include: Define a framework and structure for Councils Parks Asset Management Portfolio Effectively manage Councils investment in Parks Assets Ensure community expectations and requirements are translated into services through the application of appropriate levels of service. The plan takes into account three main drivers in managing the parks assets, which when combined, determine the level of service of the asset. They are: 1. Function The plan considers the function of each component of each asset class based on its intended purpose; 2. Risk The various consequences resulting from a range of scenarios that flow from implementing different management practices, and; 3. Lifecycle cost The cost to the community, in consideration of the likely consequences, of implementing various management practices. The Shire of Boddington welcomes anyone seeking further information relating to this plan to contact: Parks Asset Management Plan Page 7 of 53

222 Mr Graeme Simpson Acting Chief Executive Officer Shire of Boddington Ph: (08) Parks Asset Management Plan Page 8 of 53

223 2.2 Plan Format This asset management plan follows the framework set out in the Institute of Public Works This framework is outlined in the following diagram. Section 1 Executive Summary Outline of Content Key Issues Section 2 Introduction Purpose & Scope of the Plan Plan Format Key Stakeholders Linkages to Corporate Strategies Section 3 Levels of Service Function & Hierarchy Customer Research Strategic & Corporate Goals Section 4 Future Demand Demand Forecasts Demand Planning Management Strategy Section 5 Risk Management Risk Principles & Process Risk Management Framework Risk Assessment Section 6 Life Cycle Management Plan Physical Parameters Ownership Function Asset Capacity/Performance Condition Valuation Work Category Definitions Operation & Maintenance O & M strategy Maintenance Agreement Maintenance Activities Inspections Renewals & Replacements Renewal strategy & plan Risk Management Framework New, Upgrade, Disposal Planning criteria & assumptions Section 7 Financial Projections Current financial position Funding capacity Funding options & strategy Section 8 AM Practices, Performance Monitoring & Improvement AM Practices Data Systems AM Improvements Monitoring & Review Procedures Figure 1 Parks Asset Management Plan Page 9 of 53

224 The key steps in preparing an asset management plan are shown below. CORPORATE PLANNING Confirm strategic objectives and establish AM policies, strategies & goals. Define responsibilities & ownership. Decide core or advanced AM Pan. Gain organisation commitment. AM PLAN REVIEW AND AUDIT IMPLEMENT IMPROVEMENT STRATEGY INFORMATION MANAGEMENT, and DATA IMPROVEMENT REVIEW/COLLATE ASSET INFORMATION Existing information sources Identify & describe assets. Data collection Condition assessments Performance monitoring Valuation Data ESTABLISH LEVELS OF SERVICE Establish strategic linkages Define & adopt statements Establish measures & targets Consultation LIFECYCLE MANAGEMENT STRATEGIES Develop lifecycle strategies Describe service delivery strategy Risk management strategies Demand forecasting and management Optimised decision making (renewals, new works, disposals) Optimise maintenance strategies FINANCIAL FORECASTS Lifecycle analysis Financial forecast summary Valuation Depreciation Funding DEFINE SCOPE & STRUCTURE OF PLAN IMPROVEMENT PLAN Assess current/desired practices Develop improvement plan IS THE PLAN AFFORDABLE? ITERATION Reconsider service statements Options for funding Consult with Council Consult with Community ANNUAL PLAN / BUSINESS PLAN Figure 2 Parks Asset Management Plan Page 10 of 53

225 2.3 Key Stakeholders The following groups have been identified as key stakeholders in the management and use of the building facilities and related assets. Stakeholder Expectations Councillors Meeting community needs, sound management and allocation of resources, good governance Employees / Contractors Safe working environment Community residents and Value for money, equitable and responsible service, businesses well maintained assets Facility Users Well maintained assets specific to users needs Insurers Appropriate risk management policies and practices, safe working environments, well maintained assets Tourists Well maintained assets, accessible services, safe facilities Government (Federal and State) Systems in place to sustain building infrastructure, accountability, transparency 2.4 Links to Corporate Strategies This asset management plan is prepared under objectives. choose to live to be part of a welcoming community, enjoy the enviable environment and the opportunities our Asset Management Plans are a crucial component of the Council planning process linking with the following corporate documents: Council Plan for the Future Strategic Plan 2009 Budget Plans and associated documents Asset Management Plans Boddington Ranford Townsite Strategy 2010 Parks Asset Management Plan Page 11 of 53

226 Asset Management Policy (pending) Parks Asset Management Plan Page 12 of 53

227 2.5 Goals and Objectives of Asset Management The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets through construction by council staff, contractors and by donation of assets constructed by developers. the most cost effective manner for present and future consumers. The key elements of infrastructure asset management are: Taking a life cycle approach, Developing cost-effective management strategies for the long term, Providing a defined level of service and monitoring performance, Understanding and meeting the demands of growth through demand management and infrastructure investment, Managing risks associated with asset failures, Sustainable use of physical resources, Continuous improvement in asset management practices. This parks asset management plan has been prepared as a core asset management plan in accordance with the International Infrastructure Management Manual. Core asset management is designed to meet minimum legislative and organisational requirements for sustainable service delivery and long term financial planning and reporting. Future revisions of the asset management plan will move towards advanced asset management using a bottom up approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels. Figure 3 Parks Asset Management Plan Page 13 of 53

228 3.0 Levels of Service The level of service is the defined service quality for the asset. Understanding the level of service required of an asset is vital for its lifecycle management, as this largely determines service are pivotal in asset management as they have a direct financial impact due to their importance in both operational and risk-based prioritisation. 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, availability, comfort and 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 affordability. As this is the first parks asset management plan to be developed by the Shire of Boddington, this is the first time that levels of service have been considered in an asset management context. Consequently the organisation is not in a position to clearly articulate what its current levels of service are for the parks assets under its responsibility. To overcome this, the Asset Management Working Group has developed target service levels according to function. These will be refined in future versions of this Plan. Parks Asset Management Plan Page 14 of 53

229 Community Levels of Service for Parks Assets Key Indicator Performance Level of Service Performance Measurement Process Target Performance Current Performance Availability Provision of appropriate levels of parks assets Community survey to measure satisfaction with facilities and distance to them. 80% of community are satisfied with the availability of assets. Not measured. Safety Provide safe suitable facilities, free from hazards. Number of hazards identified and remedied within performance guidelines. Insurance claim history. User feedback. Appropriate action on all hazards according to risk management plan. Quantity measured through action requests. Accessibility parks facilities to be made accessible to Feedback from community. Number of complaints received regarding lack of accessibility. In accordance with current Disability Access and Inclusion Plan. Not measured. all. Function Ensure that recreation facilities Community survey to measure % of people satisfied with the level of Service provided by the 80% of community are satisfied with the facilities. Not measured. meet user assets. requirements Responsiveness Responses are prompt, clear and % of requested responded to within defined response times 90% compliance with targets based on risk assessment. Not measured work appropriately prioritised Parks Asset Management Plan Page 15 of 53

230 Technical Levels of Service for Parks Assets Key Indicator Performance Level of Service Performance Measurement Process Target Performance Current Performance Condition All parks assets will Ongoing condition assessments. Ongoing 70% of parks assets assessed Not measured meet condition community feedback by various methods as good condition or better. standards defined by including surveys. hierarchy. Facilities provide a quality experience for all users. Environment To ensure that parks Annual review of environmental impact All works in parks comply with Not measured assets are renewed assessments completed for projects. Review of relevant legislation, and maintained and energy consumption based on industry publications, standards and operated in an indicators. specifications. environmentally sustainable manner. Cost/Affordability Provide recreation % of maintenance and renewal services & All services and goods are Budgets reviewed monthly services in a cost projects achieved on time, on budget and to delivered by internal or by asset or service manager. effective manner appropriate standards. external resources that provide best value for money service. Parks Asset Management Plan Page 16 of 53

231 3.1 Function & Hierarchy Function decides strategic importance and takes into account the key principles which impact in determining the functional level of service as part of providing a sustainable range of facilities to the community. Hierarchies are used to assign priorities for action and response times to parks assets of different importance. The assets that are ranked higher are considered to be of higher significance as they deliver more critical core services and/or have high usage rates. They therefore, attract a higher level of service to keep them in the appropriate condition than assets of lesser significance. The use of hierarchies has not been formally recognised within the Shire of Boddington nce Section has historically applied higher levels of service and response to the assets it considered more important, agreed processes to support this have not yet been developed. The development and formalisation of hierarchies will allow for more precision in assigning work priorities to maintenance tasks. The defining of hierarchies has been complied in consultation with Shire officers and a review of literature. The Shire of Boddington hierarchy for parks infrastructure summarised in the table below. Parks Asset Management Plan Page 17 of 53

232 Hierarchy Classification Approximate size Estimated Service Group Approximate service radius Description of Function State/National Parklands 1000 metres plus Local and intershire communities Intershire Assets that have, support or are located within an asset that has national or state significance. District Parkland Varies Serves 3 or more neighbourhoods Intershire Parks which provide for a diverse range of recreational opportunities in an attractive high maintained landscape setting. The parks will be visited by residents from a wide area, most of who will drive or cycle to it. Visitors will stay for several hours at the parks and will use it predominantly on weekends. Facilities may include a large highly developed playground catering for a wide range of ages and abilities, a range of facilities including car parking and public toilets, picnic shelters, barbeques and irrigated garden beds. These parks are major recreation or sports parks that offer a wide variety of opportunities to a broad cross section of residents. Large in size and well known among residents, these parks are major destinations. May incorporate grassed area for informal/formal games, organised sport and hard surface sporting activities. Neighbourhood Parkland sqm Serves 600 dwellings or more 1km from most dwellings A well developed park within walking distance from most households. The parks will be predominantly used by residents who live within walking distance. Most visitors will spend up to an hour in the park, although some may stay several hours using picnic facilities. At least one suburban park is located in most townsites. These are mid sized parks providing a range of facilities and activity space for recreation or sport. They cater for large groups and are appealing to a range of users. They service several communities or suburbs and are a fairly well known destination for those people living within their catchment. Facilities may include a good quality playground, facilities for teenage play, picnic facilities, shelters and barbecue areas, irrigated garden beds and a good quality grassed area. Local Parkland 2000 to 3000 square metres Serves less than 600 dwellings 500m from most dwellings Parks which provide a basic local playground and areas for relaxation and play. The parks are used by residents who live within a 5-10 minute walking distance who spend less than one hour at the park, but may use it on a daily basis. Facilities may include a basic playground with shaded areas, tree plantings and kick about spaces. These are smaller parks providing a limited range of recreational opportunities for local residents. Designed for local children's play and as resting places. Provide good visual supervision. Natural Parklands Generally 3000 metres plus Local community Varies Any natural reserve area. With the exception of some pathways, there are generally no facilities in these areas. Includes the following classifications. 1.River Foreshore areas. 2. Rural Nature Reserves. 3. Bridal Trails. 4. Regional Conservation Reserves. Parks Asset Management Plan Page 18 of 53

233 Customer Research Currently, limited information regarding community expectation is available, as customer consultation has not commenced. The Shire of Boddington is committed to updating the levels of service according to the results of community feedback. As targets for levels of service provide the basis for lifecycle management strategies and capital programs, the current levels of service will be reviewed to incorporate the requirements of the community in subsequent versions of this plan. 3.2 Strategic & Corporate Goals The Shire has adopted the Plan for the Future that includes recognition of the need to develop and maintain quality Asset Management plans and systems. The Shire recognises the need to take a more businesslike and organisation wide approach to asset management and one which involves the community on a wider basis. Essentially the of assets and to consider the ongoing costs of existing assets when making decisions on the renewal/replacement of existing assets and the acquisition of new assets. Councils Asset Management Policy outlines the key principles that will be considered when making decisions in relation to infrastructure assets: Philosophy of renewing assets before acquiring new assets and, where possible, rationalising assets that are no longer used or do not provide the necessary level of service required to sustainably deliver the service for which the asset was acquired. Prior to consideration of any major refurbishment or improvement to an asset, a critical review of the following shall occur as part of the evaluation process: o Need for facility (short and long term) o Legislative requirements o Opportunities for rationalisation o Future liability including ultimate retention/disposal o Opportunities for multiple use All capital projects will be evaluated in accordance with a Capital Evaluation model and take into account capital cost, ongoing cost of maintenance, refurbishment, Management of assets utilising a team approach supported by the multi discipline cross-functional asset management working group. Parks Asset Management Plan Page 19 of 53

234 Developing and implementing a 10 yea infrastructure renewal requirements as identified within the various Asset Management Plans. The commitment to involve and consult with the community and key stakeholders when determining service levels. 3.3 Legislative Requirements The relevant legislation governing building operations include: Legislation Requirement Local Government Act 1995 Building Code of Australia 2010 Australian Standards and Codes of Practice Disability Discrimination Act 1992 Environment Protection Act 1986 Heritage Act of WA 1990 Occupational Health & Safety Act 1984 Planning & Development Act 2005 Sets out the role, purpose, responsibilities and powers of local governments. Code of Practice relevant for all building design and construction Referenced in the Building Code of Australia. Covers a cast range of building construction and management. To ensure that persons with disabilities have the same rights as the rest of the community (including access to premises). Regulations regarding noise, sustainability, landfill, stormwater and groundwater resources. Protection of historic buildings, structures and precincts. Provide a work environment that is safe and as far as practicable without risk to health. Defines the land use and zoning in relation to building infrastructure Parks Asset Management Plan Page 20 of 53

235 4.0 Future Demand This section identifies the effect of expected growth and consequent demand on certain services Strategy commissioned by the Shire of Boddington has allowed anticipated impacts to be quantifiable and this data will be used extensively in predicting future demand levels. 4.1 Demand Forecasts The key factors that directly impact the demand for building asset infrastructure are: Population growth Demographic changes Residential development Population Growth With the reopening of the BGM and the Worsley expansion, the district population is forecast to increase to 2,100 within five years and 3,600 by These projections point towards steady medium to long term growth. These projections are depicted in Figure 4. Figure 4 Population Forecast Demographic Changes According to the ABS 2006 Census data, just over 60% of the total number of households in Boddington and Ranford have children. This distribution places pressure on facilities for young people and is likely to grow with the forecast increased population as Boddington develops economically and as a lifestyle destination. Parks Asset Management Plan Page 21 of 53

236 4.1.3 Residential Development There are currently as many as ten scheme amendment/subdivision applications before Council for residential/rural residential developments. Five of these are sufficiently progressed in subdivision design to indicate that just over 1,000 residential lots will be available upon approval of these applications. Boddington and Ranford town sites currently have approximately 2.1 people per dwelling according to the 2006 Census data. Using this figure, approximately 2,730 additional people can be accommodated by the 1,300 residential lots currently progressed to subdivision design level. Based on population forecasts, this capacity would serve the two town sites through to Dwellings Population (2.1/dwelling) Current (2006 Census) Designed Subdivision Capacity (approx) Total Figure Demand Planning The objective of demand management is to actively seek to modify customer demands for services in order to: Optimise the utilisation / performance of existing assets Reduce or defer the need for new assets Meet the organisations strategic objectives Deliver a more sustainable service Respond to customer needs It is vital to the success of the Asset Management Plan that demand factors be analysed comprehensively, and their impact quantified in terms of the following: The effect of the growth of the asset network Any possible future need to increase or decrease infrastructure The implementation of non-asset solutions, such as managing demand In addition to the factors mentioned above, risk affects demand for services and consequently the following must be taken into account. The methodology and accuracy of forecasts The currency of forecasts The uncertainty of forecasts Parks Asset Management Plan Page 22 of 53

237 Any unforeseen natural factors The forecasts for the Shire of Boddington, indicates moderate population growth in the area. This growth trend is expected to cause an increase in the buildings asset base as a result of increased demand. 4.3 Management Strategies Demand management strategies provide alternatives to the creation of new assets through modifying customer demands. A key long term strategy is to manage demand so that there are funds in place for the renewal, operation and maintenance of future services. Effective strategies maximise the utilisation of existing assets through consolidating services or disposing of assets that are surplus to requirements. The disposal strategy for building infrastructure is discussed in section of this document. The Shire of Boddington will need to carefully analyse and establish alternatives to the use of buildings assets in some circumstances where the relative demand cannot justify the replacement of some of the buildings for what they were originally intended. In addition, removal of some buildings from Council assets may need to be undertaken where it can be demonstrated that the buildings would be better managed and controlled by others, or the demand level is so low that allocation of funds toward the building can not be justified. Parks Asset Management Plan Page 23 of 53

238 5.0 Risk Management The Shire of Boddington has acknowledged that Risk Management is an integral part of its organisation. The Risk Management Policy is a statement of commitment to ensure that the interests of the community, its employees and contractors are protected by minimising loss arising from Councils activities and services. The recognised objectives of risk management are to: Outline the process by which an organisation will manage risk associate with its 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. 5.1 Risk Principles & Process The process outlined in the International Standard AS/NZS/ISO 31000:2009 as illustrated in Figure 3 below, is utilised in order for Council to achieve the objectives of risk management. Figure 6 Parks Asset Management Plan Page 24 of 53

239 5.2 Risk Management Framework The Shire of Boddington will develop an organisational wide approach to risk management. This risk management framework will consist of a risk management policy, a risk management strategy supported by a corporate risk register. The framework is designed to ensure that: All significant operational and organisational risks are understood and identified. The highest risks are identified and addressed. Risk reduction treatments are implemented which best meet business needs. Responsibilities for implementing, evaluating and managing risks are allocated to specific staff and reporting regimes adopted. 5.3 Risk Assessment The key risk management criteria relating to Councils parks assets include: Public health and safety Service provision Environmental and legal compliance Security, theft & vandalism Image reputation, political and public relations Business interruption Financial risk escalating costs in deterioration Property damage through flooding, water damage or fire damage User group accountability Natural hazards Step 1: Risk Identification As part of its operational procedures, Council will undertake a review of potential risks. Any risks identified will be assessed to determine their potential impacts. The current and required controls are documented in the Corporate Risk Register. Within the building group, risks can be identified from a number of resources such as: Routine inspections by officers Reports from user groups and building occupants Industry information and trends Reports and complaints from the general public Information obtained from incident reports Parks Asset Management Plan Page 25 of 53

240 Step 2: Risk Analysis and Evaluation Risk analysis and evaluation follows the principles as set out by the international standard on risk management. The analysis considers both the likelihood and consequence of events and other risks. Table 1 shows a standard consequence table with descriptions of the different level of impact that could result. Table 1 Consequence Table LEVEL DESCRIPTION FINANCIAL IMPACT HEALTH REPUTATION OPERATION ENVIRONMENT 1 Insignificant Less than $1,000 2 Low $1,000 to $10,000 3 Medium $10,000 to $50,000 No injuries First aid treatment Medical treatment Unsubstantiated, low impact, low profile or no news item. Substantiated, low impact, low news profile. Substantiated, public embarrassment, coverage in state media. Little impact objectives still achieved with minimum extra cost or inconvenience Inconvenient delays partial achievement of objectives with some compensating action taken Significant delays to major deliverables additional costs required and or time delays to achieve objectives. Adverse impacts Little impact Minor damage or contamination Environmental damage requiring restitution or internal cleanup 4 High $50,000 to $150,000 5 Extreme More than $150,000 Death or extensive injuries Multiple deaths or severe permanent disablements Substantiated, public embarrassment, high coverage in state media, third party action. Substantiated, public embarrassment, very high multiple impacts, high national news profile, third party action. targets. Unable to achieve corporate objectives or statutory obligations resulting in significant visible impact on service provision such as closure of facilities Non achievement of key objectives. Unable to achieve corporate obligations. Minor Breach of legislation / significant contamination or damage requiring third party assistance Major breach of legislation or extensive contamination and environmental damage requiring third party intervention The next phase is to estimate the likelihood of a risk actually occurring. Table 2 shows the Shire of Boddington evel of likelihood. Parks Asset Management Plan Page 26 of 53

241 Table 2 LEVEL A DESCRIPTIO N Almost Certain EXAMPLES Expected to occur in most circumstances FREQUENCY More than once per year B Likely Will probably occur in most circumstances At least once per year C Possible Should occur at some time At least once in three years. D Unlikely Could occur at some time At least once in ten years E Rare May occur, only in exceptional circumstances Less than once in fifteen years. With the consequence and likelihood levels chosen, the risk can then be assigned a risk rating (Table 3) and actions taken as required. Table 3 Consequence Insignificant Low Medium High Extreme Almost Certain M H H E E Likelihood Likely M M H H E Possible L M M H H Unlikely L L M M H Rare L L M M H Parks Asset Management Plan Page 27 of 53

242 parks assets: Risk Details Risk Assessment Likelihood Consequence Risk Rating Treatment Strategy Inadequate funding for renewal and maintenance resulting in deterioration of structures and decrease in levels of service Inappropriate technical practices employed for maintenance and renewal resulting in an increased rate of deterioration of asset Inadequate values and/or incomplete list of assets used for insurance purposes Inappropriate renewal and maintenance methods expose work personnel to unacceptable risks Reserves contain hazards that may injure employees or community members Possible High High Ensure priority given through budget process. Develop 10 year renewal and maintenance plans for parks assets. Possible High High Document best practice technical standards and monitoring procedure to ensure these standards are maintained and used through employee change. Possible High High Include annual consultation with Technical Services directorate within insurance renewal procedures. Possible High High Compliance with requirements of OSH legislation. Adoption and documentation of safe systems of work. Staff training. Possible High High Formalise and document inspection frequency and findings. Formalise elevation flowchart for risks to ensure high and extreme risks are brought to the attention of senior management. Parks Asset Management Plan Page 28 of 53

243 6.0 Life Cycle Management Plan Assets are created and acquired to deliver the required services for Council. These assets are operated and maintained throughout their useful life, and their performance and condition are monitored to ensure they deliver the necessary service. Over the life of the asset, there will come a point where the asset is no longer performing at a satisfactory level and may be rehabilitated or improved. The recurrent costs of operations and maintenance, the capital expenditure for rehabilitation, and the onecosts. The Lifecycle Management Plan outlines the management strategies, including operating strategies, maintenance strategies and capital investment strategies, for the entire life of parks assets Physical Parameters covered by this plan are valued at a replacement cost of approximately $2,505,436. The Shire has recently enhanced its level of parks information by recording corporate knowledge electronically. Onsite inspections of the majority of parks assets has been carried out which has enabled meaningful information to be produced, better enabling Council to manage its assets in accordance with specified levels of service Work Category Definitions Operations: Operational activities keep the asset utilised but have no effect on condition. Typical operational activities include: Mowing lawn areas Inspections Pruning Maintenance: Maintenance activities are those routine works which keep assets operating to the required service levels. They fall into two broad categories: Parks Asset Management Plan Page 29 of 53

244 PARKS ASSET MANAGEMENT PLAN 1. Planned Maintenance (proactive): inspection and maintenance works planned to prevent asset failure. 2. Unplanned Maintenance (reactive): Reactive action to correct asset malfunctions and failures on an as required basis (i.e. emergency repairs). Renewals: Renewal work is the replacement of an asset or a significant component of an asset to restore its original size and capacity. New Works: Projects for the extension or upgrading of assets required to cater for growth or additional levels of service. New works create an asset that did not exist, or extend an asset beyond its original size or capacity. Asset Disposal: Costs associated with the removal, sale or demolition of decommissioned or surplus assets Asset Condition Parks assets have a vast range of factors that influence their usability. From an asset management perspective, the various factors fall into one of the following groups: Fitness for Use. Fitness for Purpose. Fitness for Use is a measure of physical condition relative to its condition when first constructed. Fitness for Use has been the basis of the condition audits undertaken. When rating fitness for use a standard scale of 0-10, where 0 = new and 10 = total deterioration has been used. Definitions of these conditions are set out below. Condition Rating Condition Description 1 A near new asset with no visible signs of deterioration, often moved to condition one based on the time since construction rather than observed condition decline. Parks Asset Management Plan Page 30 of 53

245 PARKS ASSET MANAGEMENT PLAN 2 An asset in excellent overall condition. There would be only very slight decline but it would be obvious that the asset was no longer in new condition. 3 An asset in very good overall condition but with some early stages of deterioration evident. The deterioration is minor in nature and causing no serviceability problems. 4 An asset in good overall condition but with some obvious deterioration evident. Serviceability would be impaired very slightly. 5 An asset in fair overall condition. Deterioration in condition would be obvious and there would be some serviceability loss. 6 An asset in fair to poor overall condition. The condition deterioration would be quite obvious. Asset serviceability would now be affected and maintenance cost would be rising. 7 An asset in poor overall condition. Deterioration would be quite severe and would be starting to limit the serviceability of the asset. Maintenance cost would be high. 8 An asset in very poor overall condition with serviceability now heavily impacted by the poor condition. Maintenance cost would be very high and the asset would need to be rehabilitated. 9 An asset in extremely poor condition with severe serviceability problems and needing rehabilitation immediately. Could also be a risk to remain in service. 10 An asset that has failed, is no longer serviceable, and should not remain in service. There would be an extreme risk in leaving the asset in service. Parks Asset Management Plan Page 31 of 53

246 PARKS ASSET MANAGEMENT PLAN A full breakdown of the Shires Parks conditions is shown in the following table. Condition Replacement Unit of Type Reserve Name Rating Value Measure Basketball Court Boddington Old School 5 $22,500 $ / m Basketball Court Boddington Town Oval 2 $29,400 $ / m Basketball Court Boddington Town Oval 2 $8,100 $ / m BBQ Boddington Caravan Park 3 $5,800 $ / each BBQ Boddington Old School 3 $5,800 $ / each BBQ Boddington Town Oval 4 $5,800 $ / each BBQ Hotham River - Boddington 2 $5,800 $ / each Bench Admin Centre 2 $1,000 $ / each Bench Boddington Old School 4 $1,000 $ / each Bench Boddington Old School 4 $1,000 $ / each Bench Boddington Old School 3 $1,000 $ / each Bench Boddington Old School 4 $1,000 $ / each Bench Boddington Old School 4 $1,000 $ / each Bench Boddington Old School 5 $1,000 $ / each Bike Rack Admin Centre 0 $890 $ / each Bike Rack Admin Centre 3 $1,140 $ / each Bike Rack Boddington Town Oval 2 $890 $ / each Bowling Green Boddington Community Club 3 $175,000 $ / m Bowling Green Boddington Community Club 2 $175,000 $ / m Carpark Admin Building 3 $25,123 $ / m Carpark Admin Building 4 $10,296 $ / m Carpark Boddington Arts Centre 3 $4,488 $ / m Carpark Boddington Community Club 2 $3,640 $ / m Carpark Boddington Community Club 5 $1,716 $ / m Carpark Boddington Hall 5 $6,600 $ / m Carpark Boddington Old School 6 $3,332 $ / m Carpark Boddington Old School 0 $4,950 $ / m Carpark Boddington SES Building 5 $12,474 $ / m Carpark Boddington Town Oval 3 $1,904 $ / m Carpark Boddington Town Oval 3 $13,365 $ / m Carpark Central Park 2 $2,557 $ / m Carpark Hotham River Foreshore 2 $9,660 $ / m Carpark River Road 4 $14,560 $ / m Carpark RSL Gardens 5 $5,627 $ / m Carpark Swimming Pool 4 $2,184 $ / m Cricket Nets Boddington Old School 2 $7,500 $ / each Parks Asset Management Plan Page 32 of 53

247 PARKS ASSET MANAGEMENT PLAN Type Reserve Name Condition Replacement Unit of Rating Value Measure Cricket Nets Boddington Town Oval 3 $7,500 $ / each Fencing 15 Blue Gum Close 2 $5,400 $ / m Fencing 16 Blue Gum Close 3 $6,000 $ / m Fencing 3 Pecan Place 1 $24,000 $ / m Fencing 46 Johnstone Street 2 $2,640 $ / m Fencing Boddington Arts Building 4 $24,300 $ / m Fencing Boddington Community 4 $8,250 Club $ / m Fencing Boddington Community 4 $44,500 Club $ / m Fencing Boddington Community 2 $4,980 Club $ / m Fencing Boddington Community 3 $2,500 Club $ / m Fencing Boddington Old School 5 $68,275 $ / m Fencing Boddington Old School 4 $66,275 $ / m Fencing Boddington Playgroup 1 $4,560 $ / m Fencing Caravan Park 1 $43,000 $ / m Fencing Central Park 1 $31,500 $ / m Fencing Independent Care Units 2 $5,000 $ / m Fencing Prussian Way 3 $8,760 $ / m Fencing Quindanning Race Club 5 $34,750 $ / m Fencing Rodeo Grounds 4 $25,750 $ / m Fencing Second Council Depot 4 $92,100 $ / m Fencing Shire Office 4 $8,750 $ / m Fencing Shire Office 1 $4,500 $ / m Fencing Shire Office 1 $5,640 $ / m Fencing Shire Office 3 $20,000 $ / m Fencing Swimming Pool 1 $10,380 $ / m Fencing Swimming Pool 2 $16,580 $ / m Fencing Tourist Memorial Gardens 3 $35,750 $ / m Flag Pole Admin Centre 2 $2,500 $ / each Flag Pole Admin Centre 2 $2,500 $ / each Flood Lighting Boddington Community 2 25,000 Club $ / each Flood Lighting Boddington Community 2 25,000 Club $ / each Flood Lighting Boddington Community 2 25,000 Club $ / each Flood Lighting Boddington Community 2 25,000 Club $ / each Parks Asset Management Plan Page 33 of 53

248 PARKS ASSET MANAGEMENT PLAN Flood Lighting Boddington Town Oval 4 20,000 $ / each Flood Lighting Boddington Town Oval 4 20,000 $ / each Flood Lighting Boddington Town Oval 1 25,000 $ / each Flood Lighting Boddington Town Oval 1 25,000 $ / each Type Reserve Name Condition Rating Replacement Value Unit of Measure Flood Lighting Boddington Town Oval 1 25,000 $ / each Flood Lighting Boddington Town Oval 1 25,000 $ / each Flood Lighting Boddington Town Oval 1 25,000 $ / each Flood Lighting Boddington Town Oval 1 25,000 $ / each Flood Lighting Boddington Town Oval 1 25,000 $ / each Flood Lighting Boddington Town Oval 1 25,000 $ / each Flood Lighting Boddington Town Oval 4 20,000 $ / each Flood Lighting Boddington Town Oval 2 20,000 $ / each Flood Lighting Boddington Town Oval 3 20,000 $ / each Flood Lighting Boddington Town Oval 2 20,000 $ / each Flood Lighting Boddington Town Oval 2 20,000 $ / each Flood Lighting Boddington Town Oval 2 20,000 $ / each Flood Lighting Boddington Town Oval 2 20,000 $ / each Football Goals Boddington Old School 4 $3,000 $ / each Football Goals Boddington Old School 4 $3,000 $ / each Football Goals Boddington Town Oval 3 $3,000 $ / each Football Goals Boddington Town Oval 2 $3,000 $ / each Football Goals Boddington Town Oval 3 $3,000 $ / each Football Goals Boddington Town Oval 2 $3,000 $ / each Gazebo Hotham River Foreshore 3 $40,000 $ / each Lighting Admin Centre 2 $20,000 $ / each Lighting Admin Centre 2 $20,000 $ / each Lighting Admin Centre 2 $20,000 $ / each Lighting Boddington Community 3 $20,000 Club $ / each Lighting Boddington Community 3 $20,000 Club $ / each Lighting Boddington Town Oval 2 $20,000 $ / each Lighting Boddington Town Oval 2 $20,000 $ / each Lighting Boddington Town Oval 2 $20,000 $ / each Lighting Boddington Town Oval 2 $20,000 $ / each Lighting Boddington Town Oval 2 $20,000 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Parks Asset Management Plan Page 34 of 53

249 PARKS ASSET MANAGEMENT PLAN Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Type Reserve Name Condition Rating Replacement Value Unit of Measure Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Lighting Hotham River Foreshore 2 $3,750 $ / each Memorial RSL Gardens 2 $5,000 $ / each Park Bench Admin Centre 1 $2,000 $ / each Park Bench Admin Centre 2 $2,000 $ / each Park Bench Admin Centre 1 $2,000 $ / each Park Bench Admin Centre 2 $2,000 $ / each Park Bench Admin Centre 2 $2,000 $ / each Park Bench Admin Centre 2 $2,000 $ / each Park Bench Boddington Old School 2 $2,000 $ / each Park Bench Boddington Town Oval 3 $2,000 $ / each Park Bench Boddington Town Oval 2 $2,000 $ / each Park Bench Central Park 2 $2,000 $ / each Park Bench Central Park 2 $2,000 $ / each Park Bench Hotham River Foreshore 2 $2,000 $ / each Park Bench Hotham River Foreshore 2 $2,000 $ / each Park Bench Hotham River Foreshore 1 $2,000 $ / each Park Bench Hotham River Foreshore 2 $2,000 $ / each Park Bench RSL Gardens 3 $2,000 $ / each Park Bench RSL Gardens 3 $2,000 $ / each Park Bench RSL Gardens 2 $2,000 $ / each Park Bench RSL Gardens 2 $2,000 $ / each Park Bench RSL Gardens 2 $2,000 $ / each Parks Asset Management Plan Page 35 of 53

250 PARKS ASSET MANAGEMENT PLAN Picnic Table and Admin Centre 3 $3,500 Chairs $ / each Picnic Table and Blue Gum Park 4 $3,500 Chairs $ / each Picnic Table and Blue Gum Park 4 $3,500 Chairs $ / each Type Reserve Name Condition Replacement Unit of Rating Value Measure Picnic Table and Boddington Caravan Park 1 $3,500 Chairs $ / each Picnic Table and Boddington Caravan Park 1 $3,500 Chairs $ / each Picnic Table and Boddington Caravan Park 1 $3,500 Chairs $ / each Picnic Table and Boddington Old School 3 $3,500 Chairs $ / each Picnic Table and Boddington Old School 3 $3,500 Chairs $ / each Picnic Table and Boddington Old School 3 $3,500 Chairs $ / each Picnic Table and Boddington Old School 3 $3,500 Chairs $ / each Picnic Table and Central Park 1 $3,500 Chairs $ / each Picnic Table and Central Park 1 $3,500 Chairs $ / each Picnic Table and Hotham River Foreshore 1 $3,500 Chairs $ / each Picnic Table and Hotham River Foreshore 1 $3,500 Chairs $ / each Picnic Table and Hotham River Foreshore 1 $3,500 Chairs $ / each Picnic Table and Hotham River Foreshore 1 $3,500 Chairs $ / each Picnic Table and Hotham River Foreshore 4 $3,500 Chairs $ / each Picnic Table and River Road, Ranford 3 $3,500 Chairs $ / each Picnic Table and RSL Gardens 1 $3,500 Chairs $ / each Picnic Table and RSL Gardens 3 $3,500 Chairs $ / each Picnic Table and RSL Gardens 2 $3,500 Chairs $ / each Playground Boddington Arts Centre 3 $6,000 $ / each Playground Boddington Old School 1 $8,000 $ / each Playground Boddington Town Oval 1 $22,000 $ / each Playground Boddington Town Oval 1 $22,000 $ / each Playground Central Park 1 $12,000 $ / each Parks Asset Management Plan Page 36 of 53

251 PARKS ASSET MANAGEMENT PLAN Playground Hotham River Foreshore 3 $4,000 $ / each Playground Prussian Park 2 $80,000 $ / each Rubbish Bins Admin Centre 1 $300 $ / each Rubbish Bins Admin Centre 1 $300 $ / each Rubbish Bins Admin Centre 1 $300 $ / each Rubbish Bins Admin Centre 1 $300 $ / each Condition Replacement Unit of Type Reserve Name Rating Value Measure Rubbish Bins Boddington Cemetery 1 $300 $ / each Rubbish Bins RSL Gardens 1 $300 $ / each Rubbish Bins RSL Gardens 1 $300 $ / each Sculpture Hotham River Foreshore 4 $10,000 $ / each Sculpture Hotham River Foreshore 4 $10,000 $ / each Sculpture RSL Gardens 3 $10,000 $ / each Shade Sails Boddington Town Oval 2 $20,000 $ / each Shade Sails Central Park 1 $10,000 $ / each Shelter Boddington Town Oval 3 $10,000 $ / each Shelter Boddington Town Oval 2 $10,000 $ / each Shelter River Road, Ranford 2 $10,000 $ / each Sign Hotham River Foreshore 2 $300 $ / each Sign Hotham River Foreshore 1 $300 $ / each Sign Prussian Park 1 $300 $ / each Sign RSL Gardens 3 $300 $ / each Skate Park Boddington Town Oval 3 $30,000 $ / m Table Boddington Old School 2 $1,500 $ / m Tennis Courts Boddington Old School 6 $22,500 $ / m Tennis Courts Boddington Town Oval 2 $16,200 $ / m Tennis Courts Boddington Town Oval 2 $16,200 $ / m Water Fountain Admin Centre 3 $1,500 $ / each Water Fountain Boddington Old School 4 $1,500 $ / each Water Fountain Boddington Old School 3 $1,500 $ / each Water Fountain Boddington Old School 3 $1,500 $ / each Water Fountain Central Park 3 $1,500 $ / each Water Fountain Hotham River Foreshore 1 $1,500 $ / each Water Fountain RSL Gardens 2 $1,500 $ / each Water Tank Boddington Town Oval 4 $20,000 $ / each Water Tank Boddington Town Oval 3 $20,000 $ / each Fitness for Purpose is a measure of an asset match to its current or intended use. It considers the minimum features required and additional features desirable to enhance Parks Asset Management Plan Page 37 of 53

252 PARKS ASSET MANAGEMENT PLAN the usability of an asset. Fitness for Purpose is tied to the use of a parks asset rather than the asset itself and takes account of changing requirements for different facilities over time. In terms of Fitness for Purpose, an asset initially fit for its intended purpose may cease to be so as standards and expectations change Asset Useful Life and Valuation Methodology Useful life is used to determine the current value of the asset. The following lifecycles are based on officer knowledge and experience of actual asset life within the Shire. The figures listed provide a basis for future allocation of useful life for all parks elements. Asset Type Details Years/Life Playgrounds Fibreglass / timber 35 Carparks Asphalt / chip seal 30 Unsealed 20 Hard Sporting Surfaces Asphalt 30 Various 15 Skate Ramps Concrete 100 Portable 30 Park Furniture Various 20 Water Tanks Commercial 30 Lighting Flood Lighting 20 Lighting 30 Fencing All types 30 Minor Structures Various 20 Parks Asset Management Plan Page 38 of 53

253 PARKS ASSET MANAGEMENT PLAN Intervention Levels Intervention levels support the service levels provided to the community as they define the condition that triggers certain works to be carried out. They are also very useful in the development of ongoing maintenance programs. Having defined intervention levels allows councils in to organise maintenance works on a risk priority basis, rather than being 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. These intervention levels provide the basis for the financial projections in section 7. Asset Category Intervention Condition Playgrounds 6.0 Fencing 8.0 Sealed Carparks 8.0 Unsealed Carparks 8.0 Hard Sporting Surfaces 8.0 Park Furniture 7.0 Water Tanks Lighting 8.0 Flood Lighting 8.0 Minor Structures 7.0 Parks Asset Management Plan Page 39 of 53

254 PARKS ASSET MANAGEMENT PLAN Asset Valuations All parks assets are valued based on replacement costs. Replacement costs have been derived from the most recent insurance valuation. Where this has not been available, replacement costs have been determined through the Rawlinsons Guide 2012 and an 31 March 2012 is $ 2,505,436. This is made up of the following: Category Value $ 23,200 Fencing $ 604,140 Hard Surface Sporting $ 509,900 Minor Structures $ 159,200 Park Furniture $ 137,520 Sealed Carparks $ 62,960 Unsealed Carparks $ 59,516 Flood Lighting $ 480,000 Lighting $ 275,000 Playgrounds $ 154,000 Water Tanks $ 40,000 TOTAL $ 2,505, Operations & Maintenance Maintenance activities relate to the repair of faults and attention to an assets structure to ensure ongoing serviceability and to prevent premature deterioration or failure. Maintenance management is a systematic approach to the planning and execution of maintenance activities. This management method delivers the benefits of operational efficiencies and reduced mainte process encompasses the following activities: Regular inspections, Keeping of proper records, Condition rating of park infrastructure to support strategic asset management, Parks Asset Management Plan Page 40 of 53

255 PARKS ASSET MANAGEMENT PLAN Program preparation including planning, minimising and scheduling, and Effective execution of maintenance operations O&M Strategy Currently the Shire has no formal maintenance strategy in place for Councils parks infrastructure. In the absence of a formal strategy, the percentage of reactive maintenance as opposed to proactive maintenance tends to be high. Ultimately, the high percentage of reactive maintenance works will lead to asset deterioration that will cost the organisation more to rectify in the long term. Maintenance strategies will be developed to reduce risk and reactive maintenance. A maintenance strategy will: describe the systems and procedures to be used to plan and manage maintenance work specify the types of maintenance to be carried out establish the order of priority for maintenance activities nominate the means of resourcing and implementing maintenance Maintenance Activities The Operations section of the Technical Services directorate undertakes the The maintenance activities, along with factors that govern or influence them, are: Reactive (unplanned) maintenance activities. This is governed by the urgency of what is required. Planned (scheduled) maintenance activities. These are generally more extensive repairs that are undertaken as part of a program of works to either prevent the breakdown of elements or components of a property or to bring those elements up to an acceptable condition. The extent of this program largely depends on funding allocations. Backlog maintenance activities. This refers to an accumulation of uncorrected or deferred deficiencies in an asset. This is governed by available funding and any future plans for a particular asset. Reactive work accounts for the majority of the annual maintenance budget and encompasses the repair or replacement of asset elements as they wear out or are Parks Asset Management Plan Page 41 of 53

256 PARKS ASSET MANAGEMENT PLAN damaged. By its nature, reactive work must be carried out as the need arises and cannot be scheduled in advance. Work is prioritised as it arises on the basis of defined intervention levels and response times. The intervention level defines the condition, state or risk level associated with an asset component, i.e. the point in time at which the asset is considered to be below an acceptable level of service. Response time defines a reasonable time frame within which it can be expected for Council to remedy the defect. Planned maintenance is repair work that is identified and managed through a maintenance management strategy. Planned maintenance activities include inspection, assessing the condition against failure, prioritising, scheduling and actioning the work. Development of a maintenance strategy which defines inspection frequencies, technical work standards, condition for intervention, and target response times is identified in the improvements section of this plan Inspections The purpose of inspections are to identify, record and report defects that are causing, or have the potential to cause: Disruption to service provision Degradation of asset performance and/or condition including cleanliness A public health or safety risk Inconvenience to staff and/or the public A security risk Breach of regulations or legislation A financial risk Property damage Inspections of the majority of parks assets are carried out on a regular basis as the parks and gardens staff travel throughout the Shire. The formalisation of these inspections will be included in the Parks Maintenance Strategy. Parks Asset Management Plan Page 42 of 53

257 PARKS ASSET MANAGEMENT PLAN 6.2 Renewals & Replacements Rehabilitation and renewal is the outlay in an asset to maintain the current level of service by reinstating its original life. Typical parks renewal works include: replacement of existing turf resurfacing of hard court areas resheeting unsealed carparks replacement of play equipment An ongoing funded renewal program is beginning to be established. Historically, renewal requirements were not identified as part of a planned inspection regime but through advice from internal staff or community sources. The renewal requirements that were identified then had to compete for funding with other capital works Renewal Strategy & Plan A Rehabilitation and Renewal Plan outlines the strategies and actions for the rehabilitation and renewal of assets. Assessing renewal needs should be based on increased analysis of the assets condition data, and take into account the desired Currently, no planned renewal strategies exist, however the development of such a plan is noted in chapter 5 as a risk treatment action. 6.3 New, Upgrade, Disposal New Best practice asset management involves a comprehensive analysis prior to acquisition of new assets. This involves completing a project proposal and business case which addresses issues such as: relevance to corporate goals; alignment to core business; community need; anticipated benefits; environmental impacts; risk identification and treatment; Parks Asset Management Plan Page 43 of 53

258 PARKS ASSET MANAGEMENT PLAN total life cycle costs; impact on existing services/infrastructure; analysis as to whether service can be delivered without asset acquisition; forecasted usage rates; value for money. To ensure parks assets continue to meet corporate and community needs, all new assets planned to be added to the Council parks register must undergo this critical er term maintenance, as long term. This business case will provide Council with the necessary information to decide whether to proceed with the acquisition of a particular asset. Where decisions are made to proceed with additional assets, provision is then able to be built in to future budgets to accommodate the expenditure Upgrade Upgrade refers to works which improve an existing asset beyond its current capacity. They may result from growth, social or environmental needs. Upgrade/expansion of infrastructure will contribute to the overall infrastructure inventory and will require ongoing maintenance and renewal. Recognition of the impact that this activity has on the future sustainability of infrastructure should be considered for all projects. As overall viability of the project Disposal Disposal of an asset refers to its decommissioning, whether by sale, demolition or relocation. A key component of an asset management plan is the identification and disposal of surplus assets. This involves assessment of strategic goals and the recognition that some assets may be under-performing or surplus to operating requirements. Parks Asset Management Plan Page 44 of 53

259 PARKS ASSET MANAGEMENT PLAN Asset Disposal Strategy A disposal process for the Shires parks facilities has been developed, which will be used to assess the requirement for existing assets. 1. If Council has a particular asset that is not aligned to its core services then that asset should be considered for disposal or opportunities to transfer the responsibility to a relevant entity should be investigated. 2. Council will look for opportunities to appropriately dispose of assets that are surplus to current and anticipated future requirements. The use of facilities in each township should be optimised to provide ratepayers with a value for money service. Any underutilised asset identified as being surplus may be disposed of by consulting the relevant parties and investigating options to consolidate and co-locate services. 3. Assets that are underperforming or are unsafe will be demolished and not replaced if there is no demonstrated ongoing need. Asset Disposal Process Surplus asset disposal is a three step process whereby the asset is evaluated from a strategic perspective, the disposal process is implemented where required, and the disposal process is reviewed. The emphasis is on ensuring that under-performing and non-essential assets are identified and disposed. Asset Evaluation The disposal process begins with identifying surplus assets. Council should conduct regular strategic evaluations of its asset needs. During this process, assets are evaluated against the asset disposal principles outlined above. Where it is identified that an asset does not meet these criteria, it is to be identified as surplus and disposed. The evaluation process will also take into account public interest considerations. Examples of public interest considerations would be: Where an asset has some form of significance to the community and there could be expected to be significant public resistance to disposal or transfer of ownership of the asset; Parks Asset Management Plan Page 45 of 53

260 PARKS ASSET MANAGEMENT PLAN Where an asset has strategic significance for future infrastructure development. In such instances, a clear and demonstrated future planning requirement is needed to support continued ownership. Where there are significant heritage, environmental or public usage requirements that require ongoing local government ownership and management. Implementation of Disposal The method of disposal will be assessed against the principle of achieving the maximum benefit to the community through the disposal, including social, financial, economic and strategic factors. Review of Disposal Process Following the disposal process, the Council should review outcomes and identify ways to improve performance for future processes. This would include, at appropriate times, a review of internal processes and structures that deal with asset disposal. Asset disposal performance can be monitored through the development of appropriate measures, such as: average time for disposal process; and / or impact of disposal on Shire finances community feedback Disposal Strategy A disposal strategy for the Shires parks assets has not yet been developed but is listed as a priority in the improvements section of this plan. Parks Asset Management Plan Page 46 of 53

261 PARKS ASSET MANAGEMENT PLAN 7.0 Financial Projections Financial forecast models assist in predicting the future financial requirements based upon the presumption that the assets will be replaced when the condition ratings reach a predetermined intervention level. This section presents a forecast financial summary for the next 20 years based on identified assumptions and trends. It is anticipated that the financial summary will be reviewed annually and continue to be refined as planning studies, strategies and increased financial analysis and data collection are completed Year Financial Forecast A 20 year financial forecast has been developed to predict performance of the Sh parks infrastructure. The model is based on the asset condition data and shows the funding required to achieve the desired level of service. Figure 7 - expenditure and the predicted renewal expenditure required for Lighting, Flag Poles, Unsealed Carparks, Sealed Carparks, Bike Racks, Benches, BBQ's and Hard Surface Sporting. These costs exclude inflation and GST. Parks Asset Management Plan Page 47 of 53

262 PARKS ASSET MANAGEMENT PLAN Figure 7 Figures 8 shows the annual expenditure required, broken down into parks asset components. These figures should be used for inclusion in the Shire's Long Term Financial Plan. Figure 8 The most significant potential changes to the financial projections shown will result from the factors below: Assumptions have been made as to the average useful lives of the parks assets based on current local knowledge, experience and historical trends. These need to be reviewed and the accuracy improved based on real time assessments of asset deterioration. Changes in levels of service from those identified in this asset management plan. Significant fluctuation in the cost of construction / replacement of assets. 7.2 Funding Capacity Current funding sources available for parks assets include: Rates Federal / State Government Grants Parks Asset Management Plan Page 48 of 53

263 PARKS ASSET MANAGEMENT PLAN Private developer contribution funds 7.3 Funding Options & Strategy Options Alternatives to accessing additional funding are: Raising rates Decreasing service levels Reducing the asset portfolio Strategy The financial projections show that the level of spending the Shire has injected into parks assets has been sufficient to maintain a level of service that ensures assets are well above intervention level. In financial terms this equates to the lack of existence of a backlog in funding. The area that currently has the highest risk in terms of lack of funding for renewal is the and lighting and flood lighting. These critical assets support valuable parks infrastructure and make up 1/3 of the tota fencing has been allocated an average useful life of 30 years and flood lighting a useful life of 20 years. While this is a realistic average life expectancy, the life of fencing and flood lighting is unpredictable and may often extend beyond this period, or conversely, fail well before expected. The regular review of Asset management Plans will ensure that condition is monitored and asset remaining life is reflected ad provided for. t make up the majority of the remaining gap. These assets, while not in need of any financial injection currently, will need to be monitored closely over the medium term to ensure they meet their life expectancy and do not bring about any unforeseen financial requirements. Parks Asset Management Plan Page 49 of 53

264 PARKS ASSET MANAGEMENT PLAN 7.4 Confidence Level The confidence in the data used as a basis for the financial forecasts has been assessed using the following grading system: Confidence Grade A B 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 example the data is old, some documentation is missing and reliance is placed on unconfirmed reports or some extrapolation. C D 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 Confidence Grade The confidence level for this report is B overall. While sound records exist for some data, some gaps exist in the completeness of parks data overall. Parks Asset Management Plan Page 50 of 53

265 PARKS ASSET MANAGEMENT PLAN 8.0 AM Practices, Performance Monitoring & Improvement 8.1 Asset Management Practices Asset management practices are the processes, analysis and evaluation techniques needed to support lifecycle asset management. This includes the following asset management functions. Knowledge of assets Levels of service Condition assessments Asset accounting - valuation, revaluation, depreciation Lifecycle planning Asset operations and maintenance Asset creation and disposal Performance monitoring Quality assurance and continuous improvement Risk management Design and project management Reviews and audit processes Parks Asset Management Plan Page 51 of 53

266 Weaknesses in the current asset management processes have been identified throughout this document. The improvements identified and prioritised in Section 8.3, will improve the processes Council utilises to manage its assets enabling greater accuracy in demand and financial forecasting. 8.2 Data Systems Asset management data and knowledge is appropriate, accessible and reliable data that can be used with information systems to enable enhanced asset management. This includes the following data on the following asset characteristics and topics: Classification and identification Physical attributes Condition Cost and maintenance histories Valuation Lifecycle costings Data quality Risk information The following software is currently utilised in relation to asset management: Various segregated asset registers (Microsoft Office software) Financial system (Synergysoft) Geographical Information System The Shire does not have an asset management program that ensures a central collection point for all infrastructure data including that in relation to parks. While a substantial that continuous improvement and review will assist in providing an accurate assessment of the portfolio and performance indicators in the future. 8.3 AM Improvements This document has been based on the International Infrastructure Model with the information systems, data and knowledge, and then determining any weaknesses in these. these weaknesses have been developed. The improvement projects have been prioritised Parks Asset Management Plan Page 52 of 53

267 according to their urgency and importance and their implementation will depend on resources allocated. The following projects have been identified as the most urgent and Task Timeline Development and implementation of a parks maintenance plan which outlines typical maintenance items and response times according to hierarchy Development and implementation of a parks inspection regime Identification and reporting of all risks relating to parks infrastructure Identification of remaining parks assets in next revision of plan Develop a 10 year Parks Capital Works Plan Undertake a comprehensive analysis of the quantity and hierarchy of parks throughout the Shire 8.4 Monitoring & Review Procedures Monitoring The effectiveness of this asset management plan can be measured in the following ways: The degree to which the required cash flows identified in this asset management Management Plan; The degree to which 1-5 year detailed maintenance and capital programs, budgets, business plans and organisational structures take into account processes and principles outlined in the asset management plan; Quantity of assets classified as being below acceptable service level; The level of user satisfaction based on comparative surveys from year to year. Ratio of planned maintenance to reactive maintenance Review This asset management plan has a life of three years but will be reviewed and updated. This review will recognise any changes in service levels and/or resources available to provide those services as a result of funding allocations, as well as analysing financial implications of new projects Parks Asset Management Plan Page 53 of 53