A Proud Community Growing Together

Transcription

1 A Proud Community Growing Together Melton City Council Asset Management Plan

2 1.0 Executive Summary Asset Management Plan Purpose (The Asset Management Plan) Asset Types in the City of Melton Levels of Service Future Demand Lifecycle Management Plan Financial Summary Asset Management Practices Introduction Relationships with other plans Levels of Service Customer Research and Expectation Legislative requirements Asset Hierarchies Current Levels of Service Community Levels of Service Desired Levels of Service Future Demand Demand Drivers Demand forecast Changes in technology Demand Management Plan Asset Programs to Meet Demand New Assets from Precinct Structure Plans & Sub-divisional Growth Capital Program Estimated Valuations and Maintenance Lifecycle Management Plan Background Data Physical parameters Asset Condition, Valuation and Sustainability Risk Management Routine Maintenance Financial Summary General Rate Revenue 33 2

3 6.1.2 Federal Governments Roads to Recovery Grants Commission - Financial Assistance Grant Developer Contribution Funding (DCP) Valuation Forecasts Key assumptions made in financial forecasts 35 R1.0 Introduction 39 R1.1 Background 39 R1.2 Road Asset Types In Melton City 40 R Council s Roads 40 R1.2.2 VicRoads Assets 41 R1.2.3 Other Roads 41 R2.0 Asset Condition 41 R2.1 Condition Assessment Levels of Service 42 R3.1 Customer research and expectation 42 R3.1.1 DPCD Community Satisfaction Survey 42 R3.2 Legislative requirements 44 R3.3 Road Hierarchies 45 R3.4 Current Levels of Service 45 R3.4.1 Community Levels of Service 45 R3.4.2 Strategic Levels of Service 46 R3.4.3 Technical Levels of Service 47 R3.5 Desired levels of Service 48 R4.0 Future Demand 48 R4.1 Demand Drivers 48 R4.2 Demand Forecast 49 R4.3Changes in Technology 50 R4.4 Demand Management Plan 50 R4.5 Asset Programs to Meet Demand 51 R4.5.1 New Road Assets from Precinct Structure Plans & Sub divisional Growth 51 R4.5.2 Capital Program 52 R4.5.3 Estimated Valuations and Maintenance 52 R4.6 Road Infrastructure Design, Construction Standards & Specifications 53 R5.0 Lifecycle Management Plan 53 3

4 R5.1 Background Data 53 R5.1.1 Physical parameters 53 R5.2 Renewal, Replacement, Creation and Upgrade Plan 54 R5.3 Summary of future capital expenditure 55 R6.0 Financial Summary 56 R6.1 Financial Statements and Projections 56 R6.2 Valuation forecasts 58 R6.3 Key assumptions made in financial forecasts 58 RA1 General Roads 61 RA2 Supporting Documents and Strategies 61 RA3 Capacity and Performance 61 RA4 Condition Assessment 61 RA4.1 Current Condition 62 RA5 Asset Valuation & Sustainability 63 RA6 Asset Maintenance 67 RA6.1 Maintenance Plan 67 RA7 Capital Improvement 68 RA8 Disposal of Roads 70 RB1 General- Footpaths 71 RB2 Supporting Documents and Strategies 71 RB3 Capacity and Performance 71 RB4 Condition Assessment 71 RB5 Asset Valuation & Sustainability 72 RB6 Asset Maintenance 77 RB6.1 Maintenance Plan 77 RB7 Capital Improvement 78 RB8 Disposal of Footpaths 80 RC2 Supporting Documents and Strategies 81 RC3 Capacity and Performance 81 RC4 Condition Assessment 82 RC5 Asset Valuation & Sustainability 83 RC6 Asset Maintenance 87 RC6.1 Maintenance Plan 87 RC7 Capital Improvement 88 4

5 RC8 Disposal of Kerb & Channel 89 RD2 Supporting Documents and Strategies 91 RD3 Capacity and Performance 91 RD4 Condition Assessment 92 RD4.1 Current Condition (Age Based Assessment) 92 RD5 Asset Valuation & Sustainability 93 RD6 Asset Maintenance 94 RD6.1 Maintenance Plan 94 RD7 Capital Improvement 94 RD8 Disposal of Traffic Control Devices 96 RE1 General- Bridges 97 RE2 Supporting Documents and Strategies 97 RE3 Capacity and Performance 97 RE4 Condition Assessment 97 RE5 Asset Valuation & Sustainability 100 RE6 Asset Maintenance 102 RE6.1 Maintenance Plan 102 RE7 Capital Improvement 103 RE8 Disposal of Bridges & Major Culverts 105 RF1 General Other Assets 107 RF2 Supporting Documents and Strategies 107 RF3 Capacity and Performance 107 RF4 Condition Assessment 107 RF5 Asset Valuation & Sustainability 108 RF6 Asset Maintenance 109 RF6.1 Maintenance Plan 109 RF7 Capital Improvement 110 RF8 Disposal of Assets 110 D1.1 Background 112 D1.2 Waterways in Melton 113 D1.2.1 Water Management in Melton 113 D1.2.2 Council s Drainage 113 D1.2.3 Melbourne Water s Drainage 114 D1.3 Other Drainage 114 5

6 D1.4 What is a Catchment? 114 D1.5 Defining Stormwater 115 D1.6 Major & Minor Drainage Systems 115 D1.7 Storm Frequencies 116 D1.8 Storm Duration 117 D1.9 Effect of Development in Melton 117 D1.10 Drainage Asset Types In Melton City 117 D2.0 Asset Condition 120 D2.1 Current Condition 120 D3.0 Levels of Service 121 D3.1 Customer research and expectation 121 D3.1.1 Annual Customer Satisfaction Survey- Stormwater Drainage Assets 121 D3.1.2 Annual Customer Satisfaction Survey- Road Assets (Including drainage in road reserves) 121 D3.2 Legislative requirements 122 D3.3 Stormwater Drainage Hierarchies 123 D3.4 Current Levels of Service 123 D3.4.1 Community Levels of Service 123 D3.4.2 Strategic Levels of Service 124 D3.4.3 Capital Levels of Service New Assets, Reconstructed Assets, Upgraded Assets 124 D3.4.4 Technical Levels of Service 125 D3.5 Desired levels of service 125 D4.0 Future Demand 125 D4.1 Demand Drivers 125 D4.2 Demand Forecast 125 D4.3 Changes in technology 126 D4.4 Demand Management Plan 127 D4.5 Asset Programs to Meet Demand 128 D4.5.1 New Drainage Assets from Precinct Structure Plans & Subdivisional Growth 128 D4.5.2 Capital Program 129 D4.5.3 Estimated Valuations and Maintenance 129 D4.6 Stormwater Design, Construction Standards & Specifications 130 D4.7 Legal Point of Discharge 131 D4.8 House Siting Guidelines 131 D4.9 New Subdivision and Development 132 6

7 D4.10 Commercial and Industrial Areas 133 D5.0 Lifecycle Management Plan 134 D5.1 Background Data Physical Parameters Asset condition, valuation and sustainability 135 D6.0 Financial Summary Funding Strategy 136 D6.2 Valuation forecasts 138 D6.3 Key assumptions made in financial forecasts 139 DA1 General- Stormwater Pipes and Minor Culverts 140 DA2 Supporting Documents and Strategies 141 DA3 Capacity and Performance 141 DA4 Asset Valuation & Sustainability 141 DA5 Asset Maintenance 142 DA5.1 Maintenance Plan 142 DA6 Renewal, Replacement, Creation and Upgrade Plan 144 DA6.1 Renewal Plan 144 D6.2 Creation / Upgrade Plan 146 DA7 Capital Improvement 148 DA8 Disposal of Pipes and Culverts 149 DB1 General- Stormwater Pits 151 DB2 Supporting Documents and Strategies 151 DB3 Asset Valuation & Sustainability 151 DB4 Asset Maintenance 152 DB4.1 Maintenance Plan 152 DB5 Renewal, Replacement, Creation and Upgrade Plan 153 DB5.1 Renewal plan 154 DB5.2 Creation / Upgrade Plan 155 DB6 Capital Improvement 157 DB7 Disposal of Pits 157 B1.0 Introduction 160 B1.1 Background 161 B1.2 Building Types in the City of Melton 161 B1.2.1 Council Assets 163 7

8 B1.2.2 Financially Intangible Building Assets 163 B1.3 Supporting Documents and Strategies 163 B2.0 Asset Condition 163 B3.1 Customer research and expectations 166 B3.1.1 Community Feedback Strategies and Surveys 166 B3.1.2 Work Orders and Customer Requests 167 B3.2 Legislative requirements 168 B3.3 Building Hierarchies 169 B3.4 Current Levels of Service 170 B3.4.1 User Levels of Service 170 B3.4.2 Strategic Levels of Service 171 B3.4.3 Maintenance Levels of Service 172 B4.0 Future Demand 172 B4.1 Demand Drivers 172 B4.2 Demand forecast 173 B4.3 Changes in Technology 175 B4.4 Demand management plan 175 B4.5 Asset Programs to Meet Demand 176 B4.5.1 New Building Assets from Precinct Structure Plans & Sub divisional Growth 176 B4.5.2 Capital Program 177 B4.5.3 Maintenance Planning 177 B4.5.3 Estimated Valuations and Maintenance 178 B5.1 Background Data 178 B5.1.1 Physical parameters 178 B5.2 Building Design, Construction Standards & Specifications 179 B5.3 Renewal, Replacement, Creation and Upgrade Planning 179 B5.3.1 Renewal planning 179 B5.3.2 Creation / Upgrade Renewal Standards 180 B5.3.3 Creation / Upgrade/ Expansion Plan 180 B5.4 Building Design, Construction Standards & Specifications 180 B6.1 Funding Strategy 181 B6.3 Key assumptions made in financial forecasts 182 B6.4 Forecast Reliability and Confidence 183 BA2 Supporting Documents and Strategies 185 8

9 BA3 Capacity and Performance 185 BA4 Condition Assessment 185 BA5 Asset Valuation & Sustainability 186 BA6 Maintenance Programs & Expenditure 187 BA7 Capital Improvement 188 BA8 Disposal of Commercial and Civic Buildings 190 BB1 General - Community Buildings 191 BB2 Supporting Documents and Strategies 191 BB3 Capacity and Performance- Community Buildings 191 BB4 Condition Assessment- Community Buildings 191 BB5 Asset Valuation & Sustainability 192 BB6 Asset Maintenance & Expenditure 193 BB7 Capital Improvement 194 BB8 Disposal of Community Buildings 196 BC1 General Council Housing 197 BC2 Supporting Documents and Strategies 197 BC3 Capacity and Performance 197 BC4 Condition Assessment 197 BC5 Asset Valuation & Sustainability 198 BC6 Asset Maintenance & Expenditure 199 BC7 Capital Improvement 200 BC8 Disposal of Buildings 201 BD1 General Industrial Building Facilities 203 BD2 Supporting Documents and Strategies 203 BD3 Capacity and Performance 203 BD4 Condition Assessment 203 BD5 Asset Valuation & Sustainability 204 BD6 Asset Maintenance & Expenditure 206 BD7 Capital Improvement 207 BE1 General- Childrens Services Facilities 209 BE2 Supporting Documents and Strategies 209 BE3 Capacity and Performance 209 BE4 Condition Assessment 209 BE5 Asset Valuation & Sustainability 210 9

10 BE6 Asset Maintenance & Expenditure 211 BE7 Capital Improvement 212 BE8 Disposal of Buildings 214 BF1 General Public Conveniences 215 BF2 Supporting Documents and Strategies 215 BF3 Capacity and Performance 215 BF4 Condition Assessment 215 BF5 Asset Valuation & Sustainability 216 BF6 Maintenance Programs & Expenditure 217 BF6.1 Maintenance Planning 217 BF7 Capital Improvement 218 BF8 Disposal of Buildings 219 BG1 General- Recreational Buildings 220 BG2 Supporting Documents and Strategies 221 BG3 Capacity and Performance 221 BG4 Condition Assessment 221 BG5 Asset Valuation & Sustainability 222 BG6 Asset Maintenance & Expenditure 224 BG7 Capital Improvement 225 BG8 Disposal of Buildings 227 O1.0 Introduction 230 O1.1 Background 230 O1.2 Open Space Asset Types in the City of Melton 231 O1.3 Management of Open Space Assets at the City of Melton 231 O1.4 Tangible and Financially Intangible Open Space Assets 232 O1.5 Supporting Documents and Strategies 232 O2.0 Condition 233 O3.0 Levels of Service 233 O3.1 Customer research and expectations 233 O3.1.1 Community Feedback Strategies and Surveys 233 O3.1.2 Work Orders and Customer Requests 234 O3.2 Legislative Requirements 235 O3.3 Open Space Hierarchies 237 O3.4 Current Levels of Service

11 O3.4.1 Strategic & Technical Levels of Service 237 O3.4.2 Maintenance Levels of Service 239 O3.5 Desired levels of service 239 O4.0 Future Demand 239 O4.1 Demand Drivers 239 O4.2 Demand Forecast 240 O4.3 Changes in Technology 242 O4.5.1 New Open Space Assets from Precinct Structure Plans & Subdivisional Growth 243 O4.5.2 Capital Program 244 O4.5.3 Estimated Valuations and Maintenance 244 O4.5.4 Current and Planned Maintenance & Expenditure 245 O5.0 Lifecycle Management Plan 247 O5.1.1 Physical parameters 247 O5.2 Renewal Plan 247 O5.3 Upgrade/Expansion/Creation 248 O5.4 Creation / Upgrade Renewal Standards 248 O.5.5 Open Space Design, Construction Standards & Specifications 248 O6.0 Financial Summary 248 OA1 General- Parklands & Reserves 251 OA2 Capacity and Performance 251 OA3 Condition Assessment 252 OA4 Asset Valuation & Sustainability 252 OA5 Capital Improvement 252 OA6 Disposal of Open Space Assets 252 OB1 General Environmental Reserves 253 OB2 Capacity and Performance 253 OB3 Condition Assessment 253 OB4 Asset Valuation & Sustainability 253 OB5 Renewal, Replacement, Creation and Upgrade Plan 253 OB6 Capital Improvement 254 OC1 General- Active & Passive Recreation Reserves 257 OC2 Condition Assessment 257 OC3 Asset Valuation & Sustainability 259 OC4 Capital Improvement

12 OC5 Disposal of Open Space Assets 262 OD1 General Play Spaces (Equipment) 263 Table OD1 Sub-asset type, quantity and replacement value Play Spaces 263 OD2 Capacity and Performance 263 OD3 Condition Assessment 263 OD4 Asset Valuation & Sustainability 264 OD5 Capital Improvement 265 OD6 Disposal of Open Space Assets 267 OE1 General 269 OE2 Capacity and Performance 269 OE3 Condition Assessment 269 OE4 Asset Valuation & Sustainability 272 OE5 Capital Improvement 273 OE6 Disposal of Park Furniture and Ancillary Assets 275 OF1 General- Park and Sports Ground Lighting 277 OF2 Capacity and Performance 277 OF3 Condition Assessment 277 OF4 Asset Valuation & Sustainability 278 OF5 Capital Improvement 279 OF6 Disposal of Open Space Assets Asset Management Practices Accounting / financial systems Financial System Asset management systems Information flow requirements and processes Standards and guidelines Plan Improvement and Monitoring Improvement Plan Monitoring and review procedures References Appendices and Attachments

13 1.0 Executive Summary Asset Management Plan 1.1 Purpose (The Asset Management Plan) Melton City Council exists to provide services to its community through the delivery, acquisition and maintenance of infrastructure and other assets. Assets may be acquired through contract arrangements, purchase, construction and by way of developer contribution. In accordance with Melton City s Asset Management Strategy our goal in managing assets is to meet the required level of service in the most cost effective manner for present and future consumers. Melton City Councils Asset Management Plan (AMP) has been developed to articulate Councils Asset Management practices to the community. This AMP is presented as a suite of documents to address issues common to all asset classes while also presenting unique information for each asset class covered by this plan. Figure 1 illustrates the format of this document. Figure 1 Asset Management Plan Suite of Documents This Asset Management Plan (AMP) incorporates 4 Sections being the Road Asset Management Plan (RAMP), the Drainage Asset Management Plan (DAMP), the Buildings Asset Management Plan (BAMP) and the Open Space Asset Management Plan (OSAMP). These sections provide generic information about the asset category and contain parts (as shown at Figure 1) which provide specific detail about asset subclasses. 13

14 1.2 Asset Types in the City of Melton The AMP has been developed as a complete suite of documents accounting for all asset classes owned and operated by the City of Melton. At July 2014 the Melton City Council is responsible for assets with an assessed replacement value of approximately $1.1 Billion dollars, excluding land value. Asset groups included in this plan are as follows; Asset type Description Replacement Value Roads and Related Infrastructure Drainage (Stormwater Infrastructure) Buildings Open Spaces This asset class includes sealed and unsealed roads, footpath, kerb and channel, traffic control devices, signs and signals, road furniture, bridges and street lighting. Subsection 1 of the AMP details these subclasses. This asset class includes stormwater pits and pipes, minor culverts, gross pollutant traps, retarding basins, levee banks, dams, open channels, water sensitive urban design and sedimentation ponds. Sub-section 2 of the AMP details these subclasses This asset class refers to all buildings held on Councils asset register including commercial and civic buildings, community buildings, Council housing, industrial buildings, children services centres, public conveniences and recreational facilities. Section 3 of the AMP details these subclasses. This asset class accounts for all open passive and active spaces including passive reserves, environmental reserves, Active reserves and assets, park furniture and ancillary items, play spaces and public lighting. Sub-section 4 of the AMP details these subclasses. $687,579,373 $273,365,845 $140,826,892 $35,057,384 TOTAL $1,136,829, Levels of Service Table 1 Asset Classes City of Melton as at July 2014 Councils Assets, in general are provided and maintained to a very high level of service. Each section of this plan reports customer satisfaction levels with regard to asset provision and maintenance (where available) as well as strategic and technical service levels. Overall it is demonstrated that the majority of Councils assets are held in good to very good condition and that these appear to meet the current needs of the community, indeed, in some instances it would be arguable that Council is over servicing the needs of the community and that through advanced asset practices such as community engagement and data modelling it may be shown that potential savings, or at a minimum more informed asset renewal and maintenance allocations may be achieved. Such activities have been recognised as improvement actions to the AMP and shall be included in future iterations of this plan. 1.4 Future Demand Perhaps the biggest influence on asset provision and maintenance within the City of Melton is the expected rate of development and population increase to the community. This will see a significant 14

15 rate of growth across all asset classes with many new assets being realised through development of growth areas and sub divisional growth. The short term result of such growth will result in substantial increases in asset replacement value and high quality amenities and facilities, all of which are expected to assist Council to deliver a fundamental role in provision of services to the community. Council shall need to understand and determine more fully the services it will continue to offer the community and the ways in which such services shall be funded and supported. Completion of this process shall involve development of service plans across the organisation which considers asset requirement, use, development and lifecycle management, as well as community consultation and engagement. In managing our growth Councils Asset Managers will look to advances in technology, service planning, best use and maintenance of assets and sustainable service agreements to ensure the best possible outputs for the community from the asset portfolio. Each sub-section of this plan discusses demand in detail and provides opportunity for embracing technological advances in the years ahead. 1.5 Lifecycle Management Plan The process of lifecycle asset management includes all management options and strategies as part of the asset lifecycle, from planning to disposal. The objective of managing the assets in this manner is to look at long-term cost impacts (or savings) when making asset management decisions Each sub-section of the AMP addresses lifecycle of asset classes specifically and is supported by modelling where completed for future renewal and upgrade of various asset subclasses. 1.6 Financial Summary Figure 2 illustrates growth of assets across all classes between 2015 and Substantial growth is attributed to the rate of precincts and subsequent subdivision development. This rapid rate of growth will result in high quality assets which must be managed strategically to ensure that these do not reach end of life at the same time. Modelling of assets in conjunction with detailed service planning will enable Council to predict optimal expenditure patterns. This process is currently in place for road infrastructure and is listed as an improvement action for all other asset groups. 15

16 Asset Value Asset Growth, Replacement Value (RV), Written Down Value (WDV), and Estimated Annual Depreciation $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $ Annual Depreciation Approx $60,187, $65,439, $70,256, $71,367, $76,716, Replacement Value $1,203,750, $1,308,792, $1,405,121, $1,427,344, $1,534,322, Written Down Value $541,344, $578,827, $617,380, $584,463, $637,084, Figure 2 Asset Growth City of Melton Maintenance of these assets will be necessary to ensure that current or future determined levels of service are maintained. Peak industry bodies such as IPWEA recommend that maintenance should be delivered at a value of 1-2% of asset replacement value. At a current maintenance delivery rate of approximately 0.5% Council invests less than is recommended however given customer satisfaction and feedback and a high percentage of newer assets this is deemed adequate at this point in time. As assets age Council may need to increase investment in planned, cyclic and reactive maintenance activities to ensure acceptable service levels are maintained. Strategic asset modelling across the asset classes will assist Council to manage this predicted increase and is included as an output in the improvement actions of this plan. 1.7 Asset Management Practices Asset management systems, processes and plans are an essential element to assist organisations with their general management and long term planning of infrastructure assets. Section 7 of this plan outlines the nature of current practices for AM decision making and details an improvement program to enhance them in order to provide ongoing improvement to management of the Council s assets. 1.8 Monitoring & Improvement Through development of the asset management plan numerous improvement actions have been identified to drive management of Councils assets forward to a more advanced level. These are shown at table 8 of this plan and are also included in the Asset Management Strategy (AMS). The AMS provides direction for Council moving forward and has been derived in conjunction with this plan. Completion and adoption of the asset management policy, strategy and plan will assist Council to meet core maturity under the MAV step program and will form a solid foundation on which to move toward more advanced asset practices in keeping with Councils stated goals and directions. 16

17 2.0 Introduction The City of Melton is one the fastest growing municipalities in Australia, offering urban and rural lifestyles within a comfortable commuting distance from Melbourne, Victoria. The City embraces a series of townships and communities, the larger centres being Caroline Springs and Melton. Caroline Springs is 19 kilometres west of Melbourne s Central Business District, whilst Melton is 35 kilometres west of Melbourne s CBD and 15 minutes west of the Western Ring Road. Other communities are Atherstone, Brookfield, Burnside, Burnside Heights, Diggers Rest, Exford, Eynesbury, Hillside, Kurunjang, Melton, Melton South, Melton West, Mount Cottrell, Parwan, Plumpton, Ravenhall, Rockbank, Taylors Hill, Toolern Vale, Truganina and Waterford. Figure 3: Ward Locality Map Figure 3: Ward Locality Map The City is bounded by Moorabool Shire to the West, Macedon Ranges Shire to the north, the Cities of Hume and Brimbank to the east and Wyndham City to the south. The population of Melton City has increased significantly in the past twenty years and predictions are that this will continue. The current population of the City is 128,000 and this figure is expected to increase to 241,000 people with an addition 40,000 dwellings by This represents an annual growth rate of 4.3% 1 Predicted Population Year End 30 June 2014 Figure 4: The Estimated Resident Population is the official City of Melton population forecast.id

18 At time of writing Council has in place 6 Precinct Structure Plans (PSP). The PSP is a long term plan for urban development. It describes how the land is to be developed and how and where services are planned to support development. The PSP is informed by State Planning frameworks, Local Planning Frameworks and other strategies dependant on locality of the precinct and subsequent affect of development on the environment in which it is to be developed. Table 2, outlines the six approved precinct structure plans (PSP) in place for the city of Melton as at 1 July PSP Description Population Households Growth Melton North Toolern Toolern Park Rockbank North Taylors Hill West Diggers Rest This precinct is located at the northern edge of the Melton township. The PSP encompasses a range of networks for this area including transport, open space, active recreation, social infrastructure and an activity centre. 2 Located to the south east of the Melton township the Toolern Town Centre will be the community heart of this PSP. Development will occur over a number of decades evolving from a local hub in its first decade to a regional centre in the long term. It will provide a range of regional and local employment, civic, retail, education, medical, residential, recreation and entertainment uses which will draw upon sustained investment from both the public and private sectors. 3 The Toolern Park PSP sits within the wider context of the approved Toolern PSP and will function as a neighbourhood of Toolern/Melton South. A significant portion of the Toolern Park Precinct falls within the boundary of the future Toolern Creek Regional Park. Open space plays a major role in the definition of the precincts character. 4 Located North of the Western Highway and bounded by Leakes Road to the west and Reserve to the east. The PSP encompasses a range of networks for this area including transport, open space, active recreation, social infrastructure and an activity centre. Land use within the area is expected to generate employment opportunity. 5 East of Melton this PSP is bounded by Beattys Rd to the North, a transmission easement to the west and Taylors Rd to the South and Caroline Springs to the East. 6 Located to the west of the existing Diggers Rest township. The PSP encompasses a range of networks for this area including transport, open space, active recreation, social infrastructure and an activity centre. Land use within the area is expected to generate employment opportunity of up to 1200 jobs Dwellings per Net Dev Ha ,000 Included in Toolern Development 20,400 7, Dwellings per Net Dev Ha 11,300 4,040 Table 2: Precinct Structure Plans Melton City Council. Development within the PSP areas will see a significant increase in Councils assets including road and drainage infrastructure, buildings, parks and open space facilities. The efficient management of these 2 Melton North Precinct Structure Plan 3 Toolern Precinct Structure Plan- 4 Toolern Park Precinct Structure Plan 5 Rockbank North Precinct Structure Plan 6 Taylors Hill West Precinct Structure Plan 7 Diggers Rest Precinct Structure Plan 18

19 assets is vital in maintaining safe and reliable access for the community, which in turn meets the strategic priorities and goals of Council. 2.1 Goals and Objectives of Asset Management Melton City Council exists to provide services to its community. Some of these services are provided through the delivery, acquisition and maintenance of infrastructure and other assets. Melton City Council acquires assets through contract arrangements, purchase, construction and by way of developer contribution. The assets deliver a level of service (LoS) to the community. In accordance with Melton City s Asset Management Strategy our goal in managing assets is to meet the required level of service in the most cost effective manner for present and future consumers. The overall objective of Asset Management is: To ensure that infrastructure assets support services that are appropriate, accessible, responsive, timely and sustainable to the community, in accordance with responsible asset management that will preserve the life of the asset and ensure that the community is receiving the best value for money from the Asset Management Program. 2.2 Plan Framework The asset management plan is a tactical plan that translates broad strategic goals and plans into specific goals and objectives relevant to a particular activity for the organisation. Specifically, it may be regarded as; A document for implementing infrastructure related strategies, which arise from the strategic planning process. A tool combining management, financial, engineering and technical practices to ensure the LoS required by customers is provided in the most economical manner to the community. Intended to protect the environmental and cultural values of the assets providing the service. The plan is the medium by which Council articulates its management of assets to achieve the desired outcomes. The key elements of 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; and Continuous improvement in asset management practices. The important elements of this AMP as per the International Infrastructure Management Manual (IIMM) and draft International Standard for Asset Management (ISO 55000) are: Asset databases, which is Councils corporate asset database; 19

20 Asset hierarchy structures; Asset inspection regimes and processes; Clearly articulated service level criteria for maintenance, renewal and upgrading; Performance standards with respect to service levels; Council specific activity guidelines for maintenance and renewal; Fit for purpose asset data such as condition, functionality and financial data; Asset performance models -performance prediction knowledge i.e. How do our assets perform over time or deteriorate over time; Financial Plan documented costs of planning, acquisition, maintenance and renewal of Council s assets; Fit for purpose asset management tools software that is capable of storing, analysing and optimising life cycle solutions and work programs; and Effective and efficient maintenance practices for routine operational, maintenance and renewal tactics. Council has specifically adopted this AMP to better drive the management of its infrastructure by including the consideration of customer service, life cycle economy and risk management. The AMP attempts to appropriately balance these three drivers to provide optimal levels of service to the community whilst also ensuring that risk of future litigation is minimised Relationships with other plans Asset management plans are a key component of the Council planning process, linking with several core plans and documents. Figure 5 illustrates the relationship between core council documents and highlights how this AMP feeds into global documents, strategies and reporting processes. Figure 5: The relationship of the AMP to other Council Documents and Reporting Processes 20

21 This asset management plan is prepared under the direction of Melton City Council s vision, A Proud Community Growing Together. Melton City Council s assets represent a significant investment by the community and are vital to its health and wellbeing. Asset Management is a core Council function. Implementation of sound asset management principles and policy will contribute to the health, safety and economy of the community thereby enabling Council to meet is objectives as follows; Provide services to current and future generations; Provide and maintain community infrastructure within the City; and Encourage and support the economic and social development of the City. Key stakeholders in the preparation and implementation of this asset management plan are: Stakeholder Role Council Senior Management Engineering, Operations, Capital Works Department, Leisure and Facilities, Environmental Services External Parties Endorsement of the asset management policy, strategy and plans. Set high level direction through the development of asset management principles in the Strategic Resource Plan. Endorse development of asset management plans and provide the resources required to complete this task. Set high level priorities for asset management development in Council and raise the awareness of this function among Council staff and contractors. Support the implementation of actions resulting from this plan. Support for an asset management driven budget and Long Term Financial Plan (LTFP). Consolidating the asset register and ensuring the asset valuations are accurate. Development of supporting policies such as capitalisation and depreciation. Preparation of asset sustainability and financial reports incorporating assert depreciation incompliance with current Australian accounting standards. Provide local knowledge level detail on all infrastructure assets. They verify the size, location and condition of assets. They can describe the maintenance standards deployed and Councils ability to meet technical and customer levels of service. ACEAM Consultants; Community. Table 3: Asset Management Plan Stakeholders As at July 2014 Melton City Council was responsible for assets with a known replacement value of $1,136,829, Assets are split across the following categories and include a variety of asset types. Asset types are detailed at sub-section 1-4 of this plan for road, drains, buildings and open space assets respectively. 21

22 Asset type Replacement Value Roads and Related Infrastructure $687,579,373 Drainage (Stormwater Infrastructure) $273,365,845 Buildings $140,826,892 Open Spaces $35,057,384 TOTAL $1,136,829,494 Table 4: Assets covered by this plan as at 1 July 2014 Distribution of Melton City Council Assets as at July % 1% 21% 74% Road Infrastructure Drainage Infrastructure Buildings Open Space Figure 6: Distribution of Asset Classes covered by this plan as at 1 Jul 2014 Council s Strategic Infrastructure Objective stated in the Asset Management Policy and Strategy is: Ensuring our fast growth is well planned and managed and Council s physical assets are well maintained. The goals defined to achieve the Strategic Objective are; to proactively consult, plan, build, maintain and upgrade assets; Advocate for a range of housing choices to offer lifestyle options; Advocate for and further integrate and improve the transport network within the municipality; and Provide access to quality infrastructure and services. 2.3 Core and Advanced Asset Management This document is prepared as a core asset management plan in accordance with the International Infrastructure Management Manual 8. It is prepared to meet minimum legislative and organisational 8 IIMM 2011 Glossary xii 22

23 requirements for sustainable service delivery and long term financial planning and reporting. Core asset management relies primarily on the use of an asset register, maintenance management systems, top-down condition assessment, simple risk assessment and defined levels of service, in order to establish a long term cash flow projection. 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. In addition Council shall consider aligning asset practice with international standards based on benefit of doing so to the community and organisation. 3.0 Levels of Service (LoS) Levels of Service (LoS) define assets performance targets (reliability, quantity, quality, responsiveness, safety, capacity, environmental impacts, comfort, cost/affordability and legislative compliance). Achievement and sustainability of services requires funding for routine and responsive maintenance and for timely renewal or replacement of the asset. Adequate financial resources ensure that the assets are appropriately managed and preserved. Financial allocations that are set below the required service levels have a direct impact on community development and if prolonged will likely result in substantial needs for catch up expenditure which is most commonly imposed on ratepayers in the future. Additionally, deferred renewal results in increased and escalating reactive maintenance as aged assets deteriorate at increasing rates. It is recognised that authorities cannot deliver everything, all the time. Indeed, in line with good practice and affordable service delivery, it may not be practical or cost-effective to deliver the same level of service across the entire asset portfolio all of the time or at the same time. 3.1 Customer Research and Expectation Council s customer research into infrastructure asset needs and satisfaction has included: Department of Planning and Community Development (DPCD) Community Satisfaction Survey; Annual community satisfaction survey undertaken by Council s roads contractor; Customer Service Centre enabling one on one contact (i.e. letters, phone calls) during normal working hours; and Department of Planning and Community Development - Annual collection and analysis of Councils Asset Management Data Each sub-section of this plan shall detail more specifically, customer research and expectation in line with each category. 3.2 Legislative requirements Melton City Council complies with several legislative and regulatory requirements prescribed for each asset group. These are detailed specifically in each sub-section of this plan. Collectively these documents direct Council to provide safe, relevant and responsive infrastructure assets which consider the needs, current and future, of our community. 23

24 3.3 Asset Hierarchies In accordance with the International Infrastructure Management Manual, Council acknowledges that the primary purpose of an asset hierarchy is to ensure that appropriate management, engineering standards and planning practices are applied to the asset based on its function. It also enables more efficient use of limited resources by allocating funding to those assets that are in greater need and the costs are better justified. Melton City Council has documented hierarchies for each asset group, as shown in sub-section 1-4 of this plan. These are documented in the asset register and assets are grouped by age, condition and response data as well as risk. This enables council to model various funding scenarios which supports community enquiry, grant lobbying, capital works and maintenance programming. The use of a hierarchy structure prevents inefficient allocation of resources, user expectations may vary and the maintenance of these assets made more difficult. In the case of some assets it has been difficult to apply detailed hierarchies as data is limited. Data improvement and review of hierarchy, condition and useful lives is noted as an improvement action at section 8 of this plan. 3.4 Current Levels of Service Melton City Council has defined service levels in three terms: Community Levels of Service The community levels of service relates to how the community perceives the service in terms of safety, quality, quantity, reliability, responsiveness, cost / efficiency and legislative compliance. Council has conducted or obtained some survey data which is detailed in each part of this plan. The level of enquiry conducted by Council with regard to some of the asset groups will be improved over time as Council moves from Core to Advanced Asset Practices. Opportunities for improved data collection pertaining to community satisfaction are noted at Section 8. Detailed community surveys shall be noted in each sub-section of this plan where such results are available Strategic Levels of Service Strategic levels of service communicate the philosophies of Council in relations to the management of the asset network. Melton City Council s strategic levels of service that have been adopted as a result of this AMP are documented specifically in each sub-section Technical Levels of Service Council regards technical levels as activities (i.e. works/tasks to address maintenance faults which occur during the assets lifecycle) which are delivered on a day to day basis to ensure that the assets maintain their predicted lifecycle path and that the community levels of service are met. Technical LoS identify; The tasks or work expected to be delivered i.e. repair pothole, paint rooms, clean drain: The schedule of inspections to be undertaken of specified matters at specified intervals; The priority with regards to rectification assigned to each intervention level; The type of action that will be carried out against each intervention level; and Provision as far as practicable for works that result from events such as emergencies and natural disasters. 24

25 3.5 Desired Levels of Service At present indications of desired levels of service are obtained from various sources including feedback from the community into the Council Planning process, resident s feedback to Councillors and customer service requests. Future iterations of this AMP will analyse and quantify the desired levels of service. 4.0 Future Demand 4.1 Demand Drivers Council s fundamental role is to provide services to the community and its assets are a means to support this. Consequently, future demand on these assets is tied to the demand for Council s services and this combined with extensive population growth presents complex scenarios for consideration. Asset management plans are critically driven by the needs of the services to be delivered and therefore meaningful asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining Council s assets without adequate regard for service needs may result in a well-maintained portfolio of assets, but it may also result in an asset portfolio which does not meet the needs the community. At present Councils Service Planning has only been completed at the highest level. Council should undertake to develop more detailed service planning which considers community feedback, lifecycle cost of assets and asset viability in relation to desired service offerings. The outcomes of these plans may be used to update asset hierarchy and in turn inform detailed asset models into the future. This activity is listed as an improvement action at section 8 (G.1) of this plan. 4.2 Demand forecast Councils mission is to support the growth, wellbeing and aspirations of our community through leadership, excellence and inclusion. 9 This mission is to be considered in conjunction with Councils strategic themes and their supporting objectives when developing bottom up asset management practices. Through stakeholder research and consultation Council has established four strategic themes. These provide focus for future investment, enable connection with the community, support transparent and accountable management and provide a strategically planned place to work, live and play. The four themes are; Managing our growth; A well governed and leading organisation; Diverse, confident and inclusive communities; and Community health and wellbeing. 9 Melton City Council Council Plan

26 Section two of this plan outlines the Precinct Structure Plans in place and highlights future growth throughout the city of Melton. The PSP documents detail services or projects required to be implemented to support this growth. These combined with management of the existing asset base and growth factors are to be considered as part of Councils strategic asset practices. Perhaps the biggest influence on assets within the City of Melton is the expected rate of development and population increase. Recent Census Population figures for the City illustrate an annual population growth rate of approximately 4.45%, with an addition of approximately 40,000 dwellings ( ) 10 and an eventual build out of 400,000 people in In line with our service centric approach, future services will be driven by demand and utilisation. The current demographic profiles are represented at Figure Age 0-4 Years Age 5-19 Years Age Yrs Age Yrs Age 85+ Figure 7: Forecast age structure males and females 2013, 2021 and 2031 Demand factor trends for each asset group are further summarised at sub-sections 1-4 of this plan. When considering capital and maintenance works, the demand drivers include: Rapid asset growth; Increased age of these assets; Increased community expectation of accountability of asset maintenance; Increased community expectation of, for example, quality of road network: Improved surfacing - gravelled to seal or asphalt; Inclusion of both on-road bikeways and off-road pathways; Adequate footpath networks between schools, aged facilities and community hubs; Remaining useful life of existing infrastructure; Early failure of some donated assets; and Increased costs associated with working in more congested traffic and As a result of supply / purchase of materials and labour

27 4.3 Changes in technology Council is continuously monitoring new asset treatments or changes within the industry that may be available to be adopted or implemented to increase the life of its assets. Technology changes that could affect the delivery of services covered by this AMP are included in each sub-section of this plan. 4.4 Demand Management Plan Demand for new assets and services across Council will be met through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand. Opportunities identified to date for demand management at each sub-section of this plan. 4.5 Asset Programs to Meet Demand Asset growth across Council results from; Precinct Structure Plans; Sub-divisional Growth; Capital Planning and Works New Assets from Precinct Structure Plans & Sub-divisional Growth Table 2, at section 2 of this plan lists PSPs currently under development or commencing within the City. In a growth area such as MCC this accounts for the majority of new assets required to service community need. Council is integral to the planning of the assets to deliver community service, actively working with state bodies to plan and implement these. The effect of sub-divisional growth will be noted in each sub-section of this plan Capital Program As stated in this plan, MCC will experience substantial growth within the next 18 years. In addition to works scheduled as part of PSPs and associated Sub-divisional growth Council will be required to invest in infrastructure improvements to link the community and continue to deliver satisfactory LoS to its customers. To this end Council plans capital infrastructure programs in line with community growth, desired LoS and budgetary constraint. The annual Capital Works Program is made public each year and is published with the Annual Report. The annual capital works program for is attached at Appendix 1. These assets will be funded through Council Revenue, PSP Contribution and Grants funding. In addition to annual programming Long Term Planning takes place and is considered as part of Councils Long Term Financial Plan. Capital development for each asset group is noted in sub-section 1-4 of this plan respectively Estimated Valuations and Maintenance Council presently owns and is responsible for road and drainage infrastructure as well as, building and open space assets that value in the vicinity of $1.1 billion. Based on planning forecasts this will increase to an estimated $1.5 billion by 2019, an estimated increase in assets (included in this plan) of 50%. Figure 8 illustrates increased asset growth between 2013 and

28 Estimated Asset Growth $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $- Predicted Asset Growth City Of Melton Road Additions $69,322,292 $65,629,344 $62,961,695 $62,961,695 $62,961,695 Drainage Additions $24,867,718 $13,934,895 $10,133,548 $2,095,272 $13,301,626 Building Additions $16,754,527 $14,778,074 $11,933,548 $3,298,000 $10,100,365 Open Space Additions $11,300,000 $11,300,000 $11,300,000 $11,300,000 $11,300,000 Accumulated Asset Stock $1,203,150,102 $1,308,792,415 $1,347,689,943 $1,436,658,432 $1,550,995,942 Figure 8 New Assets from Growth including Average Asset Growth from Subdivisions, and PSP Development 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 as illustrated at Figure 9 below. Section 5 of this plan, Lifecycle Management Plan, details estimated operating and maintenance costs based on current LoS. Asset Value and Recommend and Current Maintenance Expenditure 1,800,000,000 1,600,000,000 Asset Value and Expenditure 1,400,000,000 1,200,000,000 1,000,000, ,000, ,000, ,000, ,000, Predicted Replacement Value of Assets 1,203,150,102 1,308,792,415 1,405,121,206 1,427,344,910 1,534,322,118 Recommended Maintenance Expenditure (IPWEA) 1.5% 18,047,252 19,631,886 21,076,818 21,410,174 23,014,832 Current Maintenance Expenditure 17,194,805 Figure 9 Asset Growth and Predicted Maintenance Expenditure

29 5.0 Lifecycle Management Plan The process of lifecycle asset management includes all management options and strategies as part of the asset lifecycle, from planning to disposal. The objective of managing the assets in this manner is to look at long-term cost impacts (or savings) when making asset management decisions. The diagram below provides a graphical representation of the asset lifecycle including each of the stages an asset passes through during its life. Identify Asset Need Disposal Plan Monitor & Review Need Construct / Acquire Operate / Maintain Figure 10 Asset Lifecycle Diagram The lifecycle management plan details how Council plans to manage and operate the assets at the agreed LoS while optimising life cycle costs and is an essential component of this AMP. Detailed asset data and the processes required to effectively manage, maintain, renew and upgrade these is provided in the sub-sections attached to this plan. It must be noted that as Councils Asset Management System matures work is being undertaken to incorporate all of Councils Infrastructure Assets (Roads, Buildings, Parks and Open Spaces and Drainage) and that at time of writing some of this information is not yet available. Council seeks to undertake continual improvement to this process and accordingly will update the Asset Management Plans as the data becomes available. This improvement action list for all asset groups is shown at Section 8 of this plan. Not with standing, the methodology applied to completed asset classes is to be applied across all asset classes and in this instance council demonstrates robust analytical and review systems. 5.1 Background Data Physical parameters The assets covered by this asset management plan and its sub-sections include; Sealed Roads; Unsealed Roads; 31