4 Adoption of Asset Management Policy and Strategy

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1 4 Adoption of Asset Management Policy and Strategy Abstract The report recommends the adoption of an updated Asset Management Policy 2014 and an Asset Management Strategy Both documents are key aspects of the National Asset Management Framework and represent good asset management practice. They are also key documents in setting the direction of asset management within Boroondara for the next five years and they directly support the theme of quality facilities and assets, contained in the Council Plan The 2011 Asset Management Policy has been updated to meet the requirements of an asset management policy as defined by the national framework. The Asset Management Strategy supports the Policy and gives direction to the continued improvement of asset management capabilities and service delivery across the organisation. Officers' recommendation That Council resolve to adopt the updated Asset Management Policy 2014 and the Asset Management Strategy as annexed to the minutes. Document information City of Boroondara Asset Management Policy Page 1 of 28

2 Responsible director: Bruce Dobson Environment & Infrastructure 1. Purpose To seek the adoption of an updated Asset Management Policy, (refer Attachment 1) and an Asset Management Strategy, (refer Attachment 2). 2. Policy implications and relevance to council plan The updated Asset Management Policy 2014 and the Asset Management Strategy have been developed to support the objectives of the Council Plan The mission statement of the Council Plan states that the City of Boroondara will provide services, facilities, support and advocacy to enable our community to further its sense of place and connection. In addition, one of the key themes of the Council Plan is quality facilities and assets, that has the strategic objective assets and facilities are proactively managed to meet the community s current and future needs. The Strategy supports the long term vision of Our Boroondara Our City Our Future, and the need to ensure that Council planning is responsive to community needs now and into the future. The Strategy also supports the themes and objectives of the Boroondara Public Health and Wellbeing Plan , particularly theme two: liveable, sustainable, health- promoting City with the strategic objective enhance and develop our neighbourhoods to support health and wellbeing. 3. Background Council is responsible for property and assets with a replacement value in excess of $2.7 billion. Included in this total are 235 buildings, 566km roads, 683km of drains and 260 open space reserves. These assets are a significant contributor to the amenity and lifestyle enjoyed by our residents and they form the basis of the services that Council provides for the community. At its meeting held on 10 December 2001 Council adopted an Asset Management Strategy for a phased approach to the implementation of best practice asset management. The strategy consisted of four phases that ended with the completion of the first generation of asset management plans. The draft strategy presented in this report updates and expands the objectives contained in the 2001 strategy. Since adoption of the 2001 strategy, Council has made significant progress in its approach to asset management, with a strong focus on asset renewal. In 2009 Council took the decision to embark upon a series of major building projects. These projects included both the upgrade and renewal of the assets to facilitate the significant improvement and change to the services provided to the community from these facilities. In addition to the major projects undertaken over the past four years, funds have been prioritised for the renewal and upgrade of 28 sporting pavilions over the past decade due to their relatively poor condition. This program is nearing completion and the focus of the building renewal program in future years is now moving toward early childhood and other community buildings. City of Boroondara Asset Management Policy Page 2 of 28

3 While building renewal has been the primary beneficiary of Council's expanded capital works program, sufficient funding has been maintained to meet the renewal demands of Council's other asset categories. As a generalisation, Council's assets are now predominately in a fair to good condition and the future renewal program aims to maintain the overall condition of assets at that level. In March 2009 the Local Government and Planning Ministers Council, which consists of Local Government and Planning Ministers from across Australia, endorsed the implementation of a National Asset Management Framework. The purpose was to develop a nationally consistent framework to support improvements in local governments' asset management performance and sustainability. The Municipal Association of Victoria facilitated STEP asset management improvement program has set a target for all Victorian Councils to achieve core requirements of the framework. In February 2014 the Victorian Auditor-General released a report on Asset Management and Maintenance by Councils. The report made a number of recommendations to improve asset management planning and practices across the local government sector. The existing Asset Management Policy was adopted by Council on 3 October The policy meets all the core requirements of the national asset management framework except it does not include a reference to training of staff. The updated policy (refer Attachment 1) has been modified to include a training reference. The draft strategy, (refer Attachment 2) was developed with the assistance of Odysseus-inc Pty Ltd, a specialist asset management consultant. Consultation was undertaken with key staff from across the organisation, including service providers, maintenance staff and asset custodians. Existing information such as the Asset Management Strategy 2001, asset management plans, renewal modelling and financial plans, was reviewed and compared with current best practice. The draft strategy takes into consideration the seven key principles of good asset management contained in the national framework and it will enable Boroondara to formally meet the requirements of core asset management as defined by the framework. The draft strategy also addresses the recommendations contained in the Victorian Auditor-General s report on Asset Management and Maintenance by Councils. 4. Outline of key issues/options There is no legislative requirement for Council to have an asset management strategy. However it is widely recognised as a significant element of good asset management practice. In the past year, various surveys associated with the National Asset Management Framework, Department of Planning and Community Development and the Victorian Auditor General have sought details about Council's asset management policies, strategies and organisational framework. Having a policy and a Council- adopted strategy will demonstrate to external stakeholders and to the community that Council is committed to good asset management practice and meet the expectations of the National Asset Management Framework. City of Boroondara Asset Management Policy Page 3 of 28

4 The strategy outlines key challenges facing Council and the desired asset management future. It contains a number of initiatives based around the themes of best practice, enhancing capabilities, integrating processes, performance monitoring and continuous improvements. These initiatives will be expanded into a series of actions contained in a asset management improvement plan that will be the internal working document to support the delivery of the draft strategy. To oversee the implementation of the asset management strategy and the delivery of the implementation plan, an asset management steering group has been established chaired by the Director Environment & Infrastructure. 5. Consultation/communication The asset management strategy will give direction to the continued improvement of asset management capabilities and service delivery across the organisation. Managers from Council's Environment and Infrastructure, Community Development and Corporate Services Directorates have provided input into this strategy. 6. Financial and resource implications The coordination of good asset management is a core function of the Asset Management department. Existing staff resources within the department will therefore be responsible for overall implementation of the strategy including specific initiatives and actions that will support the strategy objectives. In implementing the strategy, staff from other departments which use assets in delivering of their services will be involved in elements of the strategy, as will Corporate Services departments through, for example, support in technology and training. The prioritisation and staging of actions over the life of the strategy will be overseen by the asset management steering group. As the strategy is an extension of existing asset management practices with a focus on continued improvement, it is intended that implementation will be within existing budget allocations. 7. Governance issues The implications of this report have been assessed in accordance with the requirements of the Victorian Charter of Human Rights and Responsibilities. The officers responsible for this report have no direct or indirect interests requiring disclosure. 8. Social and environmental issues The asset management initiatives and actions include the alignment of assets to the services that are required to meet community needs, and the provision of funding and support for assets in a sustainable manner. 9. Evaluation and review The Asset Management Policy and Asset Management Strategy will be reviewed no later than 30 October Manager & report officer: David Elson, Asset Management City of Boroondara Asset Management Policy Page 4 of 28

5 Attachment 1 Attachment 1 Draft Asset Management Policy November 2014 Responsible Directorate: Environment and Infrastructure Authorised by: Council Date of adoption: <Date> Review date: 30 October 2017 Revocation/sunset date: 30 October 2017 Policy type: Council City of Boroondara Asset Management Policy Page 5 of 28

6 Table of contents 1. Introduction Purpose Scope 1 2. Background Methodology Context Consultation Corporate framework 2 3. Policy statement Asset Management Vision Asset Management Goals Framework 2 4. Implementation and monitoring Accountabilities Roles and responsibilities Financial implications 4 5. References Related documents Definitions 4 ASSET MANAGEMENT POLICY NOVEMBER 2014 City of Boroondara Asset Management Policy Page 6 of 28

7 1. Introduction 1.1. Purpose To define the key principles that underpin the asset management practices of the City of Boroondara Scope The scope of this policy applies to Council and all Council staff in the management of all physical assets. These assets include roads, footpaths, street furniture, buildings, bridges, drainage, trees, playgrounds, parks and sports facilities. The key principles of the policy are arranged under the following headings: the asset management vision the goals for asset management the asset management framework roles and responsibilities 2. Background In March 2009 the Local Government and Planning Minister's Council, with the agreement of State and Territory Governments endorsed the implementation of a National Asset Management Framework. The purpose was to develop a nationally consistent framework to support improvements in local governments' asset management performance and sustainability. The framework outlines seven key principles of good asset management: 1. Development of an asset management policy 2. Strategy and planning 3. Governance and management arrangements 4. Defining levels of service 5. Data and systems 6. Skill and processes 7. Evaluation The Commonwealth Government has indicated that future grant funding may be tied to the implementation of the framework. The City of Boroondara currently undertakes most aspects of what is considered to be good asset management practice as defined by the National Asset Management Framework. The need to implement a structured approach to asset management practices and the need for a policy are key issues highlighted by various guides and reports over the past decade. These include the International Infrastructure Management Manual 2006, the Municipal Association of Victoria STEP Asset Management Improvement Program, the Department of Infrastructure Facing the Renewal Challenge report and the Victorian Auditor-General s Managing Infrastructure Assets and, Asset Management and Maintenance by Councils reports. In October 2011 Council adopted an Asset Management Policy to define the key principles for the management of its assets. The policy met the standard of the National Asset Management Framework with the exception of of a reference to the training needs of Councilors and staff. The policy has been reviewed and modified to include a reference to training needs. The adoption and implementation of this ASSET MANAGEMENT POLICY NOVEMBER 2014 Page 1 City of Boroondara Asset Management Policy Page 7 of 28

8 policy will enable Council to meet the requirements of core asset management practice as defined by the National Asset Management Framework Methodology The National Asset Management Framework, the International Infrastructure Management Manual and the State Government Asset Management Policy Guidelines have been used to assist in the development of this policy Context This policy provides a framework for asset management practices and it supports the strategic objective The community s current and future needs for assets and facilities are proactively managed, contained in the Council Plan The policy meets the core competency requirements of the National Asset Management Framework Consultation This is an internal policy outlining the framework for asset management practices. External consultation is not applicable to the development and application of this policy Corporate framework This policy supports the Council Plan themes of Quality facilities and assets, and Responsible management. 3. Policy statement 3.1. Asset Management Vision We will proactively manage the ongoing maintenance and development of Council's assets and facilities to meet our community's current and future needs Asset Management Goals The goals of this policy are: The alignment of assets to the services that are required to meet community needs To facilitate informed decision making based on the lifecycle needs of assets To ensure the appropriate funding of the maintenance and renewal of existing assets before that of new assets unless justified The provision of funding and support for assets in a sustainable manner The implementation of asset management in a structured and coordinated way 3.3. Framework Asset management will be implemented under a framework that includes the following: The Council Plan Asset Management Policy Asset Management Strategy Strategic Resource Plan Fixed Asset Accounting Policy ASSET MANAGEMENT POLICY NOVEMBER 2014 Page 2 City of Boroondara Asset Management Policy Page 8 of 28

9 Asset Management Plans Service Plans, Master Plans, and relevant operational and strategic plans 4. Implementation and monitoring 4.1. Accountabilities For all queries or feedback regarding this policy document, please contact: Contact Contact number Contact City of Boroondara Roles and responsibilities Council: To act as the stewards of the physical assets for current and future generations To set the Asset Management Policy To approve the Asset Management Strategy To approve the Council Plan, the Annual Budget and Strategic Resource Plan To allocate appropriate resources for asset management activities Executive Leadership Group: To provide leadership and direction in the implementation of the Asset Management Policy and the Asset Management Strategy To ensure that community needs and the outcomes of service reviews are incorporated into asset management planning and the Strategic Resource Plan. To report on asset management performance and outcomes to Council To ensure that the training needs of councilors and staff in financial and asset management practices are provided Asset Management Steering Group: To oversee the implementation of the Asset Management Policy and Asset Management Strategy To oversee the ongoing development and review of service plans and asset management plans To ensure that community needs and the outcomes of service reviews are incorporated into asset management plans. To monitor asset management performance and issues across the organisation and report on the outcomes to Executive Leadership Group To ensure that asset management is incorporated into the corporate governance framework To ensure that training of staff in financial and asset management practices is provided ASSET MANAGEMENT POLICY NOVEMBER 2014 Page 3 City of Boroondara Asset Management Policy Page 9 of 28

10 Asset Managers and staff To implement the Asset Management Strategy To review and to regularly update asset management plans for the major asset categories To develop and implement maintenance, renewal and capital works programs in accordance with the asset management policy, the asset management strategy, the asset management plans and the allocated budgets To ensure compliance with legislative and statutory obligations To deliver service levels to the agreed risk and cost standards To report to the Asset Management Steering Group on asset management outcomes and performance 4.3. Financial implications There are no financial implications arising from this policy. The policy formalises the framework of asset management practices which have been implemented over the past decade and clarifies the roles and responsibilities. 5. References 5.1. Related documents Council Plan June Local Government Act 1989 Asset Management Strategy International Infrastructure Management Manual 2006 State Government Asset Management Policy Guidelines Definitions Asset - a physical component or item that has a value, that enables services to be provided and that has an economic life of greater than one year. Asset Management - the combination of management, financial, economic, technical and other practices that are applied to physical assets with the objective of providing the required level of service in the most cost effective manner. Asset Management Strategy - a strategy covering the development and implementation of plans and programs for asset creation, operation, maintenance, rehabilitation, replacement, disposal and performance monitoring to ensure that the desired levels of service and other operational objectives are achieved at the optimum cost. Level of Service - the defined service quality for a particular activity or service area against which a service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost. Lifecycle - the cycle of activities that an asset goes through from planning and design to decommissioning or disposal. Renewal - Works to refurbish or replace existing asset with assets of equivalent capacity or performance. ASSET MANAGEMENT POLICY NOVEMBER 2014 Page 4 City of Boroondara Asset Management Policy Page 10 of 28

11 Attachment 2 Attachment 2 Draft Asset Management Strategy Responsible Directorate: Environment & Infrastructure Authorised by: Council Date of adoption: <Date> Review date: <Date> Expiration date: <Date> City of Boroondara Asset Management Policy Page 11 of 28

12 Acknowledgement The development of this Asset Management Strategy was undertaken with the assistance of Odysseus-inc Pty Ltd Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 12 of 28

13 Table of contents 1. Corporate Context Introduction Corporate Strategy and Vision Asset Management Policy Asset Management Guidelines Benefits of Asset Management Asset Portfolio and Context Influences on Asset Management Practices 7 2. Organisational Framework Key Stakeholders Operating Environment Corporate relationships 8 3. Asset Management Asset Management Overview Asset Management within Boroondara STEP Program (National Asset Management Framework) National Framework Findings Future of Asset Management within Council Key Challenges Current Asset Management Improvements Desired Asset Management Future Asset Management Initiatives Strategy 1 - Migrate towards best appropriate practice Commence the updating of all asset management plans Development of the levels of service framework Document and implement asset management governance Develop and implement a 5 year improvement plan Strategy 2 - Enhance capabilities within Council Provide focused asset management training Develop an asset management knowledge base; Enhance asset management system reporting capability Improve the access to information between systems Strategy 3 - Integrate workflow processes across Council Strategic asset management to be led by Asset Management Enhance current lifecycle processes Develop an updated Capital Works Evaluation Framework Formalise the asset handover process Strategy 4 - Establish a performance monitoring regime Develop risk based indicators for performance monitoring Formalise levels of service and infrastructure risk monitoring Establish an asset performance reporting framework Develop desktop asset performance reporting 14 Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 13 of 28

14 5.5. Strategy 5 - Develop and implement continuous improvement practices Provide support to asset management practices across Council Document a data strategy to support data improvements Enhance the quality of data and systems Develop supporting policies Develop GIS to support asset management Develop a plan to roll out mobile devices across asset groups Implementing this Strategy Implementation Plan Improvement Actions Asset Management Steering Group Manager Asset Management Working Groups Managers and Staff Capacity Building 17 Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 14 of 28

15 1. Corporate Context 1.1. Introduction This Asset Management Strategy will guide the City of Boroondara in the improvement of its asset management capabilities and service delivery. The primary objective of this strategy is to assist Boroondara to improve its delivery of sustainable and effective services that are supported by appropriate assets and facilities. The strategy describes the core functional actions required to support Boroondara s objectives and provides a framework for delivering efficient and effective services. The strategy outlines Boroondara s future asset management direction for the next five years. It supports the long term direction of the City of Boroondara and it accommodates the needs of users, service providers, stakeholders and asset custodians Corporate Strategy and Vision The community s vision for our City is outlined in Our Boroondara - Our City Our Future. The four major themes of Our Boroondara are Community Wellbeing, Managing a Sustainable Environment, Planning a Well-Designed and Sustainable City, and Connecting Our City. The community s vision for what they would like Boroondara to be in the future has subsequently been used to develop the Council Plan The Council Plan outlines the strategic plan of Council for its term of office and defines Council s vision for Boroondara as: A vibrant and inclusive community with an outstanding quality of life The long term direction and purpose of Council is defined by the following mission statement: The City of Boroondara will provide services, facilities, support and advocacy to enable our community to further it sense of place and connection. The Council Plan contains five themes that provide the key focus areas for Council s service throughout the next four years. The theme of Quality Facilities and Assets, with the strategic objective of The community s current and future needs for assets and facilities are proactively managed has been used as the guiding principle for the development of this Asset Management Strategy Asset Management Policy This Asset Management Strategy supports and aligns with Council s Asset Management Policy which documents the following. Asset Management Vision We will proactively manage the ongoing maintenance and development of Council's assets and facilities to meet our community's current and future needs. Asset Management Goals The goals of the policy are: The alignment of assets to the services that are required to meet community needs; To facilitate informed decision making based on the lifecycle needs of assets; To ensure the appropriate funding of the maintenance and renewal of existing assets before that of new assets, unless justified; The provision of funding and support for assets in a sustainable manner; and The implementation of asset management in a structured and coordinated way. Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 15 of 28

16 Framework Asset management will be implemented under a framework that includes the strategic direction set by Council: The Council Plan Strategic Resource Plan Asset Management Policy Asset Management Strategy Fixed Asset Accounting Policy Master Plans Council officers will give effect to the strategic direction by preparing and implementing: Service plans and agreements Asset management plans Relevant operational plans and strategies Asset guidelines, standards and practices 1.4. Asset Management Guidelines The following guidelines for asset management are to be used for decision making and they will support the culture required in the management of infrastructure: An appropriate level of expenditure will be committed to ensure ongoing asset maintenance and renewal. The funding of asset renewal will be based on meeting the agreed standards established in Service Plans and in Asset Management Plans. The most effective community outcome will be sought from the application of asset renewal funds, this may include the adaptive reuse of an asset rather than replication. Assets will be considered for disposal when there is no clear Council or community need for that asset in the foreseeable future. Asset management will be undertaken with the application of whole of life processes. The asset management system is recognised and utilised as the Corporate asset management system. The services provided should not be compromised by insufficient funding Benefits of Asset Management Fundamentally the application of good asset management in local government leads to improved services and more effective service delivery. It achieves this by improving decision making across the organisation and throughout the asset lifecycle. Benefits are achieved at the community, management, technical and operational levels. Some of the benefits are defined in the following table. Benefits of Asset Management Asset Management Process Community Benefits Integrated planning and monitoring of service Better environmental and social outcomes delivery Lifecycle management Efficient use of resources and improved service delivery Performance monitoring and reporting Accountability and transparency Operations and maintenance Fit for purpose assets to the required service level Audits, maintenance Safer environment Levels of service, community consultation, lifecycle costing Meeting the needs of the community with the allocation of appropriate resources Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 16 of 28

17 Renewal programs asset valuations Demand studies, modelling, predictions Management Processes Audits, inspections, reporting Data analysis, data availability and planning Risk policy, analysis and planning Asset planning, prioritisation, business case development, levels of service, community consultation, optimised decision making Lifecycle planning Performance monitoring Effective planning and analysis Workflow management Data collection, management and analysis Maintenance planning and analysis, capital planning, business cases Strategies, asset management plans Training programs Portal for asset management information Resource planning Maintenance, performance monitoring, lifecycle costing Roles and responsibilities, accountability framework and matrix Technical Benefits Research, lifecycle planning, standards Procurement policies, standards, maintenance Safety audits, inspections, levels of service Data, asset planning, analysis, maintenance response End to end process, Lifecycle planning Process mapping, benchmarking Application operations and analysis, data strategy Performance monitoring, planning Data analysis, data availability and planning Levels of service, performance monitoring Operations and Maintenance Benefits System training Network analysis, maintenance analysis Operations and maintenance planning Network analysis, maintenance analysis Operations and maintenance planning, network analysis Resource allocations to cater for future generations Accommodating the demands of the growing and changing community Community Benefits Ensuring that service levels and standards are met Improved decision making and financial planning Reduced infrastructure risk Improved allocation of resources Ongoing provision of service levels Consistent outcomes Reduced reactive management Improved operational and maintenance outcomes Improved confidence in available data Clearer justification of maintenance and capital expenditure Clarity of direction and decision making Competent and confident staff Organisational collaboration and awareness Optimisation of resources Optimisation of assets Accountability of staff Community Benefits Sustainable practices Longevity of assets and efficient use of resources Provision of fit for purpose facilities Prevention of asset failures or the delivery of inadequate service levels Improved information flow across Council Improved processes and outcomes Improved use of systems and data Improved identification of poor performing assets Improved infrastructure planning Improved service delivery outcomes Community Benefits Improved use of systems Better asset utilisation and reduced asset failures Improved operations and maintenance regimes Reduced response times to repair assets Improved network operations and asset condition 1.6. Asset Portfolio and Context The City of Boroondara has responsibility for a portfolio of fixed assets valued at $2.683 billion as at 30 June The assets managed by Council include: Buildings such as town halls, aquatic centres, maternal child health centres etc.; Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 17 of 28

18 Roads such as pavements, footpaths, kerb and channel and road furniture; Bridges pedestrian and road; Parks and Recreation such as sports ovals, playgrounds, trees, park furniture, landscaping, vegetation etc; Drainage such as stormwater pits and pipes; Art work - Statues, paintings, plaques etc.; and Fleet Trucks, cars, heavy plant etc. The above list indicates the array of infrastructure that Council manages and has responsibility for. It is critical for the long-term sustainability of the assets that the City of Boroondara engages in practices that optimise the assets useful lives for the benefit of the City of Boroondara s community Influences on Asset Management Practices In addition to the provision of assets, Council is also required to demonstrate, either directly or indirectly, the asset performance outcomes from a service delivery perspective. External requirements include the following: Benchmarking to the National Asset Management framework. Responding to DVC asset management Performance Measures surveys. Provision of adequate funding to renew asset (STEP program benchmarking). Meeting obligations under State Legislation (eg Road Management Act). Compliance with statutory requirements (eg essential services building maintenance). Compliance with accounting standards (eg annual report). The provision of a safe work place (eg OH&S Legislation). Compliance with the Disability Discrimination Act The internal requirements within Council that influence the manner in which asset management is undertaken include: Need for a consistent and uniform approach to asset related decisions. The connections between user requirements, service delivery and assets. Competing funding requirements. Recognition of the need for long term planning and to demonstrate sustainability. Performance of infrastructure. Drive for efficiency without impacting on safety and reliability. The future release of the International Standard for Asset Management ISO 55000/1/2 could also have a significant impact on Council s asset management should compliance with the standard be required by either the Australian or Victorian Governments, the Australian Centre of Excellence for Local Government or by government agencies such as the Essential Services Commission. The State Government has mandated reporting for its Local Government Performance Reporting Framework and Indicators from 1 July In 2015, the Auditor General s Office is anticipated to reaudit local government in relation to its 2011 Business Planning for Major Capital Works and recurrent Services in Local Government report. 2. Organisational Framework The background gives a picture of the current environment and the role of Council with context to the development of the strategy. Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 18 of 28

19 2.1. Key Stakeholders Council is responsible for the operations of the infrastructure and the management of the assets to ensure the delivery of services to its stakeholders. Stakeholders in this context are: Councillors Local residents Visitors and workers Industrial and business operators Australian and Victorian Governments Emergency services Other Government Departments Utilities Insurers Employees and volunteers Contractors and suppliers 2.2. Operating Environment The City of Boroondara manages the City s assets, with support from contractors, to deliver the required services. As such, the City of Boroondara has implemented an organisational structure to suit the current operations. Both Contractors and Council staff are used for the delivery of operations and maintenance services across Council. Areas in which contractors provide support are listed below: Building maintenance Tree maintenance Road and footpath maintenance Stormwater drainage maintenance Bridge inspections Park structures inspections CCTV inspections of stormwater drainage Council also commissions consultants to advise and support the operations on an as needed basis Corporate relationships For Council to effectively implement asset management it needs to recognise the relationships between each of its service areas and to implement processes to support them. The following table summarises these relationships that need to be accommodated within the City of Boroondara s asset management activities. Council Service Area Corporate Planning/ Business Development Communications Asset Management Relationship Corporate performance reporting on outcomes and achievements, for both internal and external customers. Prepares the annual budget and long term financial strategy, including the setting of asset renewal and capital works budgets. Undertakes internal services related to audit, process improvement and benchmarking. Facilitates the communication of asset management outcomes to stakeholders and informs of the progress and the benefits obtained in implementing the strategy. Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 19 of 28

20 Community Development Supports the community s well-being by providing the required asset based recreation, library, aged, children and family services both now and in the future. Environmental Promotes sustainability with built and natural environments. Builds the capacity of Council to integrate environmental and sustainability issues into our buildings and public space improvements, daily operations and decision making processes Finance Financial support services for asset maintenance and capital works programs. Contract management services and financial reporting and asset valuations. Information Technology Systems support and backup. Training and software support. GIS administration. Infrastructure Maintenance Undertakes daily operations and asset maintenance activities; undertakes defect remediation work and minor repairs. Parks Undertakes daily operations and maintenance activities on natural and man made assets, provides recreation opportunities to the community Capital Works Coordinates, plans and delivers the annual capital works program including renewal, upgrade and new works. Strategic Planning Provide high level input into the infrastructure planning process. 3. Asset Management 3.1. Asset Management Overview The City of Boroondara must ensure that it manages all assets on a lifecycle basis, with full knowledge of the social, environmental and financial costs, benefits and risks associated with the asset. The lifecycle model must give consideration to each phase of an asset s life from the planning phase through to disposal. This lifecycle model is as follows: Assess - Review and Plan Install - Design and Construct Monitor - Operate and Maintain. Renew - Rehabilitation and Replace Underpinning the above model is the use of risk management techniques to support decision making through each of the above phases Asset Management within Boroondara Council commenced its participation in the Municipal Association of Victoria (MAV) STEP asset management improvement program in 2003 in recognition of its responsibility for the sustainable management of those assets operated and maintained on behalf of the Boroondara community. The aim of the program is to assist Council in improving its overall asset management capabilities. Since 2004 Council has taken significant steps in this direction by implementing the following: Completion of first generation Asset Management Plans for key infrastructure assets. Implementation of the corporate asset management system, (Conquest). Aligning of asset planning and financial planning in the Strategic Resource Plan. Ongoing participation and involvement in the MAV Asset Management STEP Program to improve Council s overall performance and the systems which support its strategic decision making. Continued use of the GIS for spatial data representation, such as to provide quick access to asset information, to display defect inspections. Ongoing performance in delivering on road management commitments by meeting specific measures for Road Management Plan compliance. Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 20 of 28

21 The following identifies Council s past and present achievements and future asset management focus. Where we have come from (pre 2014) Asset Management Policy approved Asset management plans for the main infrastructure asset groups Asset Management System procured and implemented Active Geographical Information Systems with variable quality of asset data Condition or defect inspections on roads, footpaths, playgrounds Various asset registers Alignment of renewal and financial planning Where we are now (2014) New Asset Management Strategy developed Asset Management Policy updated First generation asset management plans for roads, drainage and buildings Quantitative asset condition information available Asset management system interfaced with GIS Various asset registers being consolidated into the corporate asset management system Predominately reactive maintenance on most assets Varying asset management practices undertaken across Council Where we are going ( ) Adopted asset management Policy and Strategy Second generation asset management plans for roads, drainage, parks and buildings Core asset management capabilities achieved Asset management performance monitored and managed Asset management system implemented for all asset groups Application of predictive modelling with future planning based on condition Enhanced use of the Geographical Information System to communicate information Documented processes supporting asset management processes Integrated workflows Improved asset management skills and knowledge within Council 3.3. STEP Program (National Asset Management Framework) The City of Boroondara s active involvement in the MAV Step Program has seen continuous improvement since Monitoring of a series of improvements as part of the score card approach has allowed the City of Boroondara to grow its asset management capability National Framework Findings An analysis of Boroondara s current asset management practices (using the National Framework) compared to accepted best practice long term management of Council assets has resulted in the development of a listing of improvements recommended to achieve sound asset management practice. In undertaking the National Framework assessment, it was recognised that the data, processes and systems vary across the asset groups. By default some asset management functions will improve once the data becomes available and analysis of the results can be undertaken. However, other functions will not improve unless specific processes such as defining the levels of service can be completed and any appropriate data identified and collected. The following core maturity scores were derived from a self assessment by Council officers of current asset management practices against National Framework. The scores reflect areas of potential improvement rather than deficiencies in asset management practices: Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 21 of 28

22 The improvement opportunities include: Figure 3 - Core Asset Management Maturity 2013 Review and update the Asset Management Strategy to reflect the direction of Council. Review mechanisms to provide high level oversight and governance by the Council, Chief Executive Officer and Executive Management Group. Update the Asset Management Plans as the reference document for asset lifecycle information; Formalise and document processes such as Levels of Service and infrastructure risk; and Provide appropriate asset data combined with improved knowledge and capability. 4. Future of Asset Management within Council 4.1. Key Challenges The key challenges for Council in the future regarding asset management will include: Improved data management and recording; Seamless information flow for management and reporting purposes; Documented and implemented asset management processes; Asset management system utilisation; Managing infrastructure risk; and Managing the balance between maintenance, renewal and new work expenditure. Addressing the key challenges will provide the following benefits: Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 22 of 28

23 Areas for Improvement Anticipated Benefits Asset Knowledge Data available for advanced asset management purposes. Accurate and current data availability. Information Systems Greater use and application of the corporate asset management system. Seamless information transfer between Council s systems. Ongoing improvement of Council s systems. Reduced duplication of effort. Strategic Planning Understanding of Council s ongoing maintenance and renewal requirements into the future. Improvement of Council s Long Term Financial Plan supported by confident data. Processes Application of whole of life processes. Consistency and application of asset management across asset groups. Organisational Issues Establish and implement ongoing asset management training programs. Improve asset management system user capabilities through specific training. Asset Management Skills Enhanced skills for applying asset management and managing the infrastructure. Table 3 - Key Challenges 4.2. Current Asset Management Improvements The work being undertaken to improve asset management within the City of Boroondara includes: Improving and updating of asset data within the asset management system; Development of this asset management strategy Investigation of asset revaluations and depreciation within the asset management system; Improved maintenance practices; and Ongoing collection of defect and condition data Desired Asset Management Future In moving forward, the City of Boroondara desires greater consistency and improved skills with respect to asset management practices. Particular areas of focus are: Further develop a whole of organisational approach to asset management by integrating asset management workflows across Council. Document and implement supporting asset management processes. Comply with external drivers e.g. achieve core asset management capability. Work towards advanced asset management capability within the term of this strategy (2019). Develop improved asset management skills and knowledge within Council. Promote a clear understanding and application for the renewal/upgrade of assets. Facilitate a strong connection between this strategy and operational activity. 5. Asset Management Initiatives The following strategies and their supporting initiatives have been identified as a result of undertaking internal discussions with staff about infrastructure issues. They support the vision and the mission outlined Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 23 of 28

24 in Council Plan and in particular, are aligned with the following corporate themes and strategic objectives. Quality facilities and assets The community s current and future needs for assets and facilities are proactively managed; Sustainable environment - Our natural and urban environment is improved in a sustainable way; Responsible management Decision making in the delivery of high quality services by capable and professional people reflects transparent, accountable and fair behaviours. Sound financial and risk management practices are carried out. All strategies and their supporting initiatives identified below are aimed at providing the skills, processes and data to achieve the above goals Strategy 1 - Migrate towards best appropriate practice Commence the updating of all asset management plans Development of the levels of service framework Document and implement asset management governance Develop and implement a 5 year improvement plan 5.2. Strategy 2 - Enhance capabilities within Council Provide focused asset management training Develop an asset management knowledge base; Enhance asset management system reporting capability Improve the access to information between systems 5.3. Strategy 3 - Integrate workflow processes across Council Strategic asset management to be led by Asset Management Enhance current lifecycle processes Develop an updated Capital Works Evaluation Framework Formalise the asset handover process Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 24 of 28

25 5.4. Strategy 4 - Establish a performance monitoring regime Develop risk based indicators for performance monitoring Formalise levels of service and infrastructure risk monitoring Establish an asset performance reporting framework Develop desktop asset performance reporting 5.5. Strategy 5 - Develop and implement continuous improvement practices Provide support to asset management practices across Council Document a data strategy to support data improvements Enhance the quality of data and systems Develop supporting policies Develop GIS to support asset management Develop a plan to roll out mobile devices across asset groups Strategy 1 is considered to be the highest priority and should be the focus of activity in the first twelve months. Strategy 2 will assist the process by improving people s asset management capabilities and their understanding of the benefits of good asset management practices. Strategy 3 Integrating work flow processes across Council will provide consistent approaches and outcomes for capital projects improving the delivery of assets and the long term management of assets. Strategy 4 will be introduced towards the end of the five year period working towards a change in practices from highly reactive and response driven to a more planned and monitored approach to the management of assets. Strategy 5 will support Strategy 1 by identifying gaps in asset management practices and implementing improvements to close the gaps and improve practices. Figure 4 - Indicative Timing of Improvement Strategies Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 25 of 28

26 6. Implementing this Strategy 6.1. Implementation Plan The above asset management initiatives can also be considered as three stages of a long term objective for asset management. These stages are: Stage 1 - Committing to best appropriate practice Stage 2 - Improved decision making capability Stage 3 - Service excellence and sustainability This strategy document represents the commencement of Stage 1; Committing to Best Appropriate Practice. It establishes the initiatives for the City of Boroondara to enhance its asset management capabilities while building efficiencies into Council operations. The City of Boroondara commenced this process with a vision to implement improved asset management processes and to establish the foundation for the future direction of asset management in the organisation. Stage 1 will be a period of change driven by this strategy. Through the identified improvements, the City of Boroondara will be able to demonstrate improved asset management capability through the improved use of the asset management system, staff training and improved processes. The action plan indicates the areas of improvement to be addressed. Stage 2 will focus on using the asset management improvements to analyse the infrastructure and provide improved decision making capabilities. This will be informed by the formalisation of service levels, the enhancement of risk management techniques and improved performance reporting. Stage 3 will deliver ongoing improvement and sustainable outcomes with respect to service delivery and affordability. This will involve improved linkages between services levels and assets, more accurate and comprehensive information and improved accessibility to systems and technologies. Long Term Planning Horizon Stage 3 Improvements Stage 1 Establishing Best Appropriate Practice Awareness and Service Stage 2 Improved Decision Making Capability Service Excellence and Sustainability Time Figure 5 - Asset Management Evolution Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 26 of 28

27 6.2. Improvement Actions The objectives of this strategy will be achieved by implementing the improvement actions contained in an Asset Management Improvement Plan which will be an internal working document to support the delivery of this strategy. It should be noted that some actions will extend for several years as they are ongoing and support primary activities e.g. training and report development Asset Management Steering Group A steering group will be set up to monitor and support the implementation of the Asset Management Improvement Plan across Council. The group will be responsible for providing direction and resolving issues related to all activities in the improvement plan. Regular meetings will be held to enable key staff to discuss and resolve asset management issues as well as plan for the way forward. The implementation of the improvement plan including regular progress reports, target tracking and activity monitoring will be programmed as a regular agenda item for discussion. A key aspect of the implementation of asset management improvements is to have: A management decision making group responsible for the overall improvement program. An asset management group responsible for overseeing the delivery of the required projects within budget and time frame. The key roles of the Steering Group include: Management decision making responsible for delivery of the overall improvement program. Provision of advice and assistance to ensure the necessary resources (business, technical, financial and other) are available. Ensuring a cross organisational approach to the delivery of asset management objectives. Council. Setting corporate asset management policy and vision. Monitoring the implementation of Council s Asset Management Plans. Ensuring appropriate resources are provided to support asset management activities. The Steering Group will provide active direction with respect to this strategy. To achieve this, the Steering Group will develop an agenda for the next twelve months in line with the improvement plan Manager Asset Management The Manager Asset Management will provide leadership and strategic direction to support the: Development of asset management plans for individual asset groups, using principles of lifecycle analysis; Implementation of improvement plans for individual asset groups; Implementation of maintenance programs, capital works programs, operational plans etc. in accordance with the asset management plan and annual budget; Reporting to the asset management steering committee and the Director Environment and Infrastructure on the progress of the implementation of asset management and ongoing infrastructure performance. Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 27 of 28

28 6.5. Working Groups Working groups will be established to undertake specific projects when needed and they will be supported by the Manager Asset Management to achieve the desired outcomes. They will advise the Manager Asset Management of any issues identified for resolution and report on the status of projects when required Managers and Staff Managers and staff will be required to ensure that the objectives established in this strategy are integrated into the development and implementation of maintenance, refurbishment and capital works programs in accordance with Council s Strategic Resource Plan, Annual Plan and Budget Capacity Building Council recognises that asset management needs a whole of organisation approach. The organisation will support implementation of asset management with appropriate resources, systems, and training as appropriate. Draft Asset Management Strategy City of Boroondara Asset Management Policy Page 28 of 28