Asset Management Team March 2012

March 2012

1 SECTION ONE EXECUTIVE SUMMARY... 4 2 SECTION TWO PENINSULA WAY BEST PRACTICE... 5 2.1 PURPOSE & METHODOLOGY... 5 3 SECTION THREE FINDINGS... 6 3.1 MORNINGTON PENINSULA SHIRE ASSET MANAGEMENT TEAM... 6 3.1.1 Overview & Purpose... 6 3.1.2 Shire Strategic Plan Implications... 7 3.1.3 Legislation... 8 3.1.4 Accounting Standards... 12 3.1.5 Team Structure... 13 3.1.6 s Operating Budget... 14 3.2 SERVICE PROFILE... 15 3.2.1 SWOT Analysis... 15 3.2.2 Best Practice Asset Management... 16 3.2.3 Sustainable Infrastructure Asset Management Policy... 17 3.2.4 Asset Management Principles... 17 3.2.5 Asset Management Framework... 18 3.3 RESPONSIVENESS TO THE COMMUNITY... 19 3.3.1 Community Benefits of Best Practice Asset Management... 19 3.4 KEY ACHIEVEMENTS & SUCCESSES... 20 3.5 LINES OF BUSINESS... 25 1. Asset Management System... 25 2. Asset Valuations... 28 3. Co-ordinate the Development of Asset Management Plans... 30 4. Collate Data on the Condition of Assets... 33 5. Developing Asset Management Processes for Emerging SLR Issues. 37 6. Ensuring Compliance with SLR contract Pavement Performance... 40 7. A Framework for the Processes, Documentation & Specifications of Asset Data Supply... 42 8. GIS System Asset Display... 44 9. Identify Shire Assets... 47 10. Reconciliation of Capital Works Accounts for Contracts... 49 11. Reporting... 52 12. Review of Useful Life of Assets... 54 13. Validation of Assets... 56 Page 2 of 86

3.6 PERFORMANCE MEASURES AND BENCHMARKING... 58 3.7 CONSULTATION... 59 3.7.1 Internal Stakeholder Consultation... 59 4 SECTION FOUR OUTCOMES... 61 4.1 CONTINUOUS IMPROVEMENT PLAN... 61 5 SECTION FIVE APPENDICES... 68 5.1 APPENDIX 1 NATIONAL FRAMEWORK CORE COMPETENCY REPORT CARD - 2011... 68 5.2 APPENDIX 2 NATIONAL FRAMEWORK CORE COMPETENCY REPORT CARD - 2010... 70 5.3 APPENDIX 3 INTERNAL STAKEHOLDERS... 72 5.4 APPENDIX 4 INTERNAL CONSULTATION FEEDBACK SHEET... 73 5.5 APPENDIX 5 INTERNAL CONSULTATION FEEDBACK RESULTS... 78 5.6 APPENDIX 6 POTENTIAL IMPROVEMENTS... 83 6 REFERENCES... 86 6.1 LEGISLATION, REGULATIONS AND CODES OF PRACTICE... 86 6.2 MPSC DOCUMENTS... 86 6.3 PUBLICATIONS... 86 Page 3 of 86

1 SECTION ONE EXECUTIVE SUMMARY The Asset Management team is a part of the Infrastructure Unit and is located in Rosebud. The purpose of the team is to manage the Shires infrastructure asset portfolio including the management of data and information relating to $1.5 billion of Shire infrastructure assets to ensure accurate financial modelling (predictions) supporting sustainable and cost efficient management. The Asset Management team underwent a Best Practice review to examine and improve its services as well as its overall performance during 2011. The review involved all team members analysing service delivery and work outputs, their alignment with the Shire Strategic Plan and responsiveness to both organisational and community needs. It also involved comparing the team s service delivery with Best Practice Asset Management, internal consultation and benchmarking with other municipalities. The review resulted in a Continuous Improvement Plan (CIP) being developed which comprises seven improvement initiatives and respective strategies for completion, timelines and responsible officers. The CIP will be incorporated into the Infrastructure Strategy 2011-2012 and 2012-2013 business plans and its progress reported through the monthly reporting process. Page 4 of 86

2 SECTION TWO PENINSULA WAY BEST PRACTICE 2.1 PURPOSE & METHODOLOGY The is a strategically focused yet community-responsive and flexible way of functioning, tailored to the needs and expectations of the Mornington Peninsula and its diverse communities. The Best Practice is consistent with the Mornington Peninsula Shire commitment to do everything we do the best way it can be done. The Best Practice aims to continuously examine and improve all services delivered by, or on behalf of the Shire, as well as overall organisational performance. An integral part of the Best Practice is the value adding program review process which is completed by team members who are directly involved in the service delivery. The Best Practice review of the Asset Management team involved all team members analysing service delivery and work outputs and their alignment with the Shire Strategic Plan, performance measures and responsiveness to community needs. It also involved internal consultation and benchmarking with other municipalities. Throughout the review a Continuous Improvement Plan (CIP) was developed which comprises improvement initiatives and respective strategies for completion, identification of responsibilities and timelines. The CIP will be incorporated into the Infrastructure Strategy 2011-2012 and 2012-2013 business plans and its progress reported through the monthly reporting process. Page 5 of 86

3 SECTION THREE FINDINGS 3.1 MORNINGTON PENINSULA SHIRE ASSET MANAGEMENT TEAM 3.1.1 Overview & Purpose The Asset Management team is a part of the Infrastructure Strategy unit and is located at the Shires Rosebud office. The purpose of the team is to manage the Shires infrastructure asset portfolio including the management of data and information relating to $1.5 billion of Shire infrastructure assets to ensure accurate financial modelling (predictions) supporting sustainable and cost efficient management. Shire Infrastructure Assets are grouped into four major classes as follows: Roads 1,700 km Drains 1,250 km Buildings 600 No. Other Infrastructure Other infrastructure includes most Shire assets within its 1,730 ha of parks and open space, some foreshore assets, waste management assets and some road assets. Examples of other infrastructure assets include: Barbecues Basketball courts Bike racks Bins Bollards Bus shelters Fences Memorials Netball courts Seats Signs Stairs Street lights (non-standard) Tables Tennis courts Watering systems Page 6 of 86

3.1.2 Shire Strategic Plan Implications The Asset Management team supports the achievement of the following Shire Strategic Plan goals, outcomes and strategies: Goal 3 - Creating safe, healthy and engaged communities Outcome 3.3 Accessible, valued and well utilised community resources 3.3.3 To develop and manage community facilities and spaces according to community needs and values. 3.3.4 To effectively manage and maintain our road and path network. 3.3.5 To prioritise investment in maintenance and refurbishment of community buildings to meet agreed service levels. Goal 5 - Being responsive, accountable and forward looking Outcome 5.1 Quality service 5.1.1 To provide high-quality service outcomes by ensuring that Council processes and systems are effective and efficient. 5.1.2 To encourage innovation and continuous improvement to meet new and emerging needs. 5.1.3 Implement and support technology and communication systems to deliver services more efficiently and provide improved public access to Council information. Outcome 5.5 Responsible financial management 5.5.1 To sustainably manage the Council s finances and resources. 5.5.2 To effectively develop and manage the capital works program. Page 7 of 86

3.1.3 Legislation Council has to meet many legislative requirements relating to Asset Management including: Legislation Local Government Act 1989 Requirement The primary objective of a Council is to endeavour to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions. In seeking to achieve its primary objective, a Council must have regard to a number of facilitating objectives, including to promote the social, economic and environmental viability and sustainability of the Shire; to ensure that resources are used efficiently and effectively and services are provided in accordance with the Best Value Principles to best meet the needs of the local community; to improve the overall quality of life of people in the local community; to ensure that services and facilities provided by the Council are accessible and equitable The role of a Council includes: maintaining the viability of the Council by ensuring that resources are managed in a responsible and accountable manner. [LGA, s. 3D(2)(c)] The functions of a Council include: planning for and providing services and facilities for the local community; [LGA, s. 3E(1)(b)] providing and maintaining community infrastructure in the Shire. [LGA, s. 3E(1)(c)] A Council must implement the principles of sound financial management. The principles of sound financial management are that a Council must manage financial risks faced by the Council prudently, having regard to economic circumstances. [LGA, s. 136(2)(a)] Aboriginal Heritage Act 2006 The risks include risks relating to the management and maintenance of assets; [LGA, s. 136(3)(c)] A Council has a financial management duty to do all things necessary to ensure that adequate control is maintained over assets owned by or in the custody of the Council; [LGA, s. 140(2)(d)] A Council must comply with the Best Value Principles that include ensuring that all services provided by a Council are responsive to the needs of its community. [LGA, s. 208B(b)] achieving continuous improvement in the provision of services for its community; [LGA, s. 208B(d)] The main purpose of this Act is to provide for the protection of Aboriginal cultural heritage in Victoria [AHA, s. 1.] Page 8 of 86

Legislation Electricity Safety Act 1998 Flora and Fauna Guarantee Act 1988 Occupational Health and Safety Act 2004 Public Health and Wellbeing Act 2008 Rail Safety Act 2006 Requirement Some of the purposes of this Act are to address the safety of electricity of electricity supply and the reliability and security of electricity supply. The Act includes provisions relating to bushfire mitigation requirements for certain operators and electric line clearance. [ESA, Part 8.] The purpose of this Act is to establish a legal and administrative structure to enable and promote the conservation of Victoria's native flora and fauna and to provide for a choice of procedures which can be used for the conservation, management or control of flora and fauna and the management of potentially threatening processes. [FFGA, s. 1.] The objects of this Act are (a) to secure the health, safety and welfare of employees and other persons at work; and (b) to eliminate, at the source, risks to the health, safety or welfare of employees and other persons at work; and (c) to ensure that the health and safety of members of the public is not placed at risk by the conduct of undertakings by employers and self-employed persons; and (d) to provide for the involvement of employees, employers, and organisations representing those persons, in the formulation and implementation of health, safety and welfare standards having regard to the principles of health and safety protection. [OHSA, s. 2(1).] The purpose of this Act is to promote and protect public health and wellbeing in Victoria. [PHWA, s. 1.] The main purpose of this Act is to provide for safe rail operations. [RSA, s. 1.] A rail operator must develop and implement an interface co-ordination plan in relation to any potential risks to the safety of the rail operations. Interface co-ordination plan means a plan developed by a rail operator that identifies and specifies the potential risks to the safety of rail operations that may be contributed by the activities of another person Page 9 of 86

Legislation Road Management Act 2004 Requirement The primary object of this Act is to establish a coordinated management system that will promote safe and efficient road networks at State and local levels and the responsible use of road reserves for other legitimate purposes. The Act establishes a new statutory framework for the management of the road network. sets out certain rights and duties of road users. establishes the general principles which apply to road management. provides for the role, functions and powers of a road authority. provides for the making of Codes of Practice to provide practical guidance in relation to road management. facilitates the making of road management plans. enables the declaration and discontinuance of roads. provides a process for the declaration and classification of roads and the allocation of management responsibility for roads. provides for a road authority to keep a register of public roads. provides for the construction, inspection, maintenance and repair of public roads. sets out the road management functions of road authorities. sets out the road management functions of infrastructure managers and works managers in providing infrastructure or conducting works. provides for issues relating to civil liability arising out of road management. The Act facilitates the making of a Road Management Plan (RMP) by a Council in its role as a Road Authority. [RMA, s. 49] Conformance with the RMP provides the Council with a policy defence in the event of a legal challenge. [RMA, s. 103] The RMP is an operational document but needs to be supported by sound tactical Asset Management planning. Road Safety Act 1986 The purposes of this Act include to provide for safe, efficient and equitable road use; and to set out the general obligations of road users in relation to responsible road use; and to ensure the equitable distribution within the community of the costs of road use. [RSA, s. 1] A person who drives a motor vehicle on a highway must drive in a safe manner having regard to all the relevant factors, including (without limiting the generality) the physical characteristics of the road; prevailing weather conditions; level of visibility; condition of the motor vehicle; prevailing traffic conditions; relevant road laws and advisory signs; physical and mental condition of the driver. [RSA, s. 17A(1)] Page 10 of 86

Legislation Transport Integration Act 2010 Requirement A road user must have regard to the rights of the community and infrastructure managers in relation to road infrastructure and non-road infrastructure on the road reserve and take reasonable care to avoid any conduct that may damage road infrastructure and non-road infrastructure on the road reserve. [RSA, s. 17A(3)(b)] The Act provides a common policy framework for use by state and local government bodies when making decisions about the transport system. The Act ensures that transport agencies work together towards an integrated and sustainable transport system. [TIA, s. 6.] Water Act 1989 Some of the purposes of this Act are (b) to provide for the integrated management of all elements of the terrestrial phase of the water cycle. (j) to provide formal means for the protection and enhancement of the environmental qualities of waterways and their in-stream uses. Melbourne Water has drainage and flood management powers and functions and can declare flood levels, flood areas, building lines and control developments adjacent to waterways. [WA, Part 10] Wrongs Act 1958 One of the purposes of this Act is to address liability of public authorities. A public authority s duty of care is limited by the financial and other resources available to the authority. [WA, Part XII] Page 11 of 86

3.1.4 Accounting Standards Council has to comply with the accounting standards relating to Asset Management including: Standard Australian Accounting Standard AASB 116 Property, Plant and Equipment Australian Accounting Standard AASB 136 Impairment of Assets Requirement The objective of this Accounting Standard is to prescribe the accounting treatments for property, plant and equipment. Its purpose is to enable users of financial reports to discern information about the entity s investment in its property, plant and equipment and the changes is such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognised in relation to them. [AASB 116, cl. 1.] Infrastructure assets are classed as items of property, plant and equipment under accounting frameworks and standards. The objective of this Accounting Standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and the Standard requires the entity to recognise an impairment loss. [AASB 136, cl. 1.] Page 12 of 86

3.1.5 Team Structure Colin Manage the AM Team incl budget. Develop AM policies, strategies & plans. Asset renewal analysis. Risk management & performance improvement. Provide advice on AM to Crs & snr management. Development & deployment of AM Team. Davey John Peter Anne Lauren Allan Alesha AM planning. Risk management & performance improvement. Asset knowledge management. Coordinate asset condition assessment & analysis. AM procedures. Data exchange with service providers. Design, implement and maintain the AM system software, documentation & training. Integration of AM system & GIS. Technical reporting. Technical & system support. Training of AM system users. SLR info exchange. Identify & develop processes to enable achievement of SLR contract objectives. Monitor road condition, PMS operation & audit SLR pave performance. Road seal revaluations and road assets remaining life. Assist in Road Policy development. Collect, verify and enter capital works projects merging data, reconciling there financial accounts, asset links between KMS & Geomedia for assets. Collect and enter recognised transport asset data as requested. Assist with the drainage verification project. Special projects. Prepare cost data for infrastructure assets. Annual revaluation of all infrastructure assets. Supply data to meet statutory requirements (MAV/DPCD). Collect, verify and enter contributed asset data. Facilitate the implementation of all A- Spec modules. Work towards completing the follow-up to drainage base map comparison. Merge culvert valuation tool into KMS. Provide facility to capture attribute data for open drains and input into KMS. Identify number of pits that have been validated, but no drawings exist. Collect, verify process and enter asset data into KMS and Geomedia. Integrate asset data between systems Assist with the provision of valuations for infrastructure assets. Provide department assistance for recording data. Page 13 of 86

3.1.6 s Operating Budget Salaries, Wages, Workcover 594,000 External Consultants 28,000 Software 21,000 Other 15,000 Recharges 66,000 TOTAL $728,000 Page 14 of 86

3.2 SERVICE PROFILE 3.2.1 SWOT Analysis The team carried out a SWOT Analysis and identified a number of major strengths including experienced team members with extensive knowledge that are responsive to stakeholders and receptive to the implementation of new technology. A summary of the analysis is shown below: Strengths Experience Knowledge (including local) People Skills Gender Balance (M : F) Good Teamwork Dependable Sense of pride in our work. Hard Working Problem Solving Skills Innovative Approachable Responsive Adaptive to new technologies. Good Team Leader Mix of Ages Attention to detail Documenting some processes. Addressing issues previously deemed too difficult Opportunities CashFlow 5 National Asset Management Framework Review of Infrastructure Maintenance Contracts CIS Workflow Investigate / embrace new technology for data collection - including both hardware (visibility, processing speed & memory) and software (GPS accuracy, data collection validation). R & D (we probably have more data in some areas than many other authorities) Weaknesses Specialization Documentation - Processes GIS Specialist Knowledge Critical Data Maintenance Reporting Capabilities Knowing the Unknowable Tapping Prime Source Data Identifying Asset Ownership (i.e. Melbourne Water, VicRoads etc.) Complexity of Asset Management System (KMS) Succession Planning Attracting and retaining staff Threats Reliant on other Teams / Units / Contractors Asset Renewal Modelling: Financial categorization for current renewals. Continual annual increase in requirements and expectations Industry shortage of asset management/engineering/gis experience Unachievable increases in reactive requirements Lack of understanding by others of complexities of Asset Management Page 15 of 86

3.2.2 Best Practice Asset Management The team, working with other shire departments, is continuously improving its asset management practices, in particular, utilising a life cycle approach where both the cost to design and construct assets are taken into consideration by Council as well as the costs to finance, maintain and manage those assets. In addition to this, depreciation costs are allowed for. The Shire s Asset Management practices always have service outcomes as a primary focus, rather than just physical asset maintenance and renewal. In applying a life cycle approach to asset management at MPS, cost effective long term management strategies are developed that include a defined level of service which is able to be both monitored and reported on. In endeavouring to ensure the sustainable use of both financial and physical resources, it is also critical that the impact of growth and demand of assets is understood and planned for as are risks associated with the failure of assets. At MPSC a Sustainable Infrastructure Asset Management Policy has been adopted that reflects best practice. The Policy demonstrates our Asset Management principles and outlines an Asset Management Framework. Page 16 of 86

3.2.3 Sustainable Infrastructure Asset Management Policy Policy No. 10/27 The MPS Sustainable Infrastructure Asset Management Policy reinforces the whole of Council responsibility for the sustainable management of infrastructure assets. The policy was adopted by Council in July, 2010 and provides organisational wide shire officers with the key asset management principles and an Asset Management framework (both detailed below). 3.2.4 Asset Management Principles In pursuit of Infrastructure Asset Management best practice, the following key principles apply in relation to AM at the Mornington Peninsula Shire: ensuring service delivery needs form the basis of asset management; integrating asset management with corporate, financial, business and budgetary planning; informed decision-making, incorporating a life-cycle approach to asset management; establishing accountability and responsibility for asset condition, use and performance; and pursuing sustainability, providing for present needs while sustaining resources for future generations. Page 17 of 86

3.2.5 Asset Management Framework The framework shown below outlines the integral relationships between key asset management documents and Council planning documents: Asset Management Policy Shire Strategic Plan Asset Management Strategy (currently under review) Asset Management Plans (refer 3.2.5 Key Achievements and Successes) Strategic Resource Plan (strong links to AM Plans) ASSET MANAGEMENT PLANNING Asset Management Philosophy & Framework Service Delivery Knowledge LEGAL AND STAKEHOLDER REQUIREMENTS AND EXPECTATIONS MPS STRATEGIC PLAN Vision, Mission, Objectives, Levels of Service, Business Policies, Risk Management ASSET MANAGEMENT POLICY ASSET MANAGEMENT STRATEGY Objectives, Level of Service Targets and Plans ASSET MANAGEMENT PLANS Services and Service Levels to be provided, funds required to provide services OPERATIONAL PLANS Services delivery in accordance with asset management plans. Asset solutions operate, maintain, renew, develop, retire. Non-asset solutions partnerships, demand management, insurance, failure management. KNOWLEDGE MANAGEMENT Asset data and information systems STRATEGIC RESOURCE PLAN Monitoring and Review Continual Improvement Operational Planning Tactical Planning Strategic Planning Page 18 of 86

Council Meeting 3.3 RESPONSIVENESS TO THE COMMUNITY 3.3.1 Community Benefits of Best Practice Asset Management Effective management of Council s infrastructure networks and ensuring that we have in place good quality assets benefits Council and the community in a number of ways: Financial savings to Council Infrastructure networks provide the platform for economic and social development Infrastructure and property assets increasingly meet recreational and other needs of the community Good quality infrastructure is the cornerstone of public health and safety Good quality infrastructure mitigates adverse environmental impacts of society Asset management practices advance the sustainability of infrastructure services Benchmarking the condition and performance of assets promotes innovation and efficiencies Our roads and paths provide transport services Our drainage system mitigates flooding and drains land Our buildings provide the community with places to meet, obtain information, access community resources and enjoy arts and cultural activities Our parks and open spaces provide recreational services. Page 19 of 86

3.4 KEY ACHIEVEMENTS & SUCCESSES Development of manuals to assist team members and contractors to provide and/or input correct asset information (example shown below). o The Fence Catalogue was developed as an aid to assist others to prepare condition assessment manuals Survey of roads on steep terrain in rural areas. o To comply with new requirements of the Victorian Grants Commission 20 year asset renewal expenditure program updated annually. o To link with Shire s Long Term Financial Plan. Page 20 of 86

Completion of drainage base map comparison. o To eliminate duplication of assets caused by amalgamation of drainage records from a variety of sources. Received positive feedback from external auditor o Preventing qualification by auditor and possibility of being named in Parliament. Capital Works Program (5 year back log eliminated). o Improving confidence in data recorded in AM System and shown on GIS. Adopted Sustainable Infrastructure Asset Management Policy. o Translates the Shire s broad strategic outcomes and plans into a policy framework that enables Council to deliver sustainable services that are underpinned by sound Asset Management practices. o Encourages the development and maintenance of a long-term financial plan based on a sound Asset Management Strategy and Asset Management Plans. o Promotes effective and efficient Asset Management processes and practices. Page 21 of 86

More defined structures for management of assets: o Asset Management Plan Template Providing consistency of Plans for various asset classes o Asset Catalogue Providing consistency of terms and definitions for various asset types. New Assets Form o Improving recording of asset ownership and liaison. Responded effectively to increased workload due to new developments. o Making records available in AM System and GIS in reduced timeframes. Page 22 of 86

Reconciliation of building audit results and linking to GIS. o Improving management of building assets Collection and recording of kerb and channel condition data. o Assisting with calculation of useful lives of assets and developing maintenance and renewal programs Page 23 of 86

Collection and recording of footpath condition data. o Assisting with calculation of useful lives of assets and developing maintenance and renewal programs. Completion of draft Asset Management Plans for: Roads Drainage Parks & Open Space o o Improving the management of infrastructure assets by combining multi-disciplinary management techniques (technical and financial). Communicating information about the Shire s infrastructure assets. Page 24 of 86

3.5 LINES OF BUSINESS 1. Asset Management System Description: Ensure that the AM System meets the needs of the Shire. The critical AM needs are: Asset register to store the primary asset attributes (type, material, dimensions, quantity, construction date, value). Asset condition. Asset performance. Asset criticality. Asset maintenance records. Reporting Mechanisms Ensure current, accurate information on Shire infrastructure assets for reporting, auditing and estimating future costs to Council. Target Customer Group / Key Stakeholders: Community members All internal departments Alignment with the Shire Strategic Plan: 3.3.3 To develop and manage community facilities and spaces according to community needs and values. 3.3.4 To effectively manage and maintain our road and path network. 3.3.5 To prioritise investment in maintenance and refurbishment of community buildings to meet agreed service levels. 3.4.5 To manage and renew existing infrastructure assets. 5.1.1 To provide high quality service outcomes by ensuring that council processes and systems are effective and efficient. 5.1.2 To encourage innovation and continuous improvements to meet new and emerging needs. 5.1.3 Implement and support technology and communication systems to deliver services more efficiently and provide improved public access to Council information. 5.3.1 To demonstrate good corporate and democratic governance in our operations. 5.3.2 To manage Council property assets. Page 25 of 86

5.3.3 To monitor and minimise our risk exposure. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Identify information needs for core Shire functions. Consider the Shire s longer term information needs. Development of a standard approach to: Asset hierarchy Asset categories Asset identification (compatible with GIS). Condition and performance grading. Estimated useful lives Asset criticality. Financial management. Treatment options and costs. Predictive modelling. Integrate AM and corporate information systems. Provide adequate specialist support. Key Steps: Initial collection of data may involve Asset Management or service providers - depending on the source if the funding (e.g. Capital Works would involve AM staff whereas Ordered Works would involve service providers) Data is collected on mobile data collection platforms (such as PDA) and returned to AM where it is uploaded (in the case of new data) or the old data is audited, a history or audit record completed, and the data altered to reflect its present state (condition may have deteriorated, colour may have changed or item may have been updated) What has worked well: Mobile data collection (using ArcPad and PDAs) has made the collection of new data and auditing of existing data easier and more accurate. The latest snapshot of data deployed to the PDA ensures that the service provider or AM have current data to compare with and report on. Page 26 of 86

Spreadsheet data collection works well where ad hoc data collection occurs or staff are not trained in data collection. The format of the spreadsheet and the drop down boxes configure the data in an acceptable way and allow this to be uploaded with minimum intervention. Documentation of the processes, creation of terminology manuals and catalogues reduce the risk of error. Service providers and shire entities can be referred to these to minimise stuff ups. Current value adding: N/A Potential for value adding: Building costs versus usage. Current Performance: Value: 9.5 Performance: 4.5 Outcome: Assign more resources Variances AM is working towards a recognition of the need to keep it informed of changes to assets, but many entities within the shire act independently of this process (e.g. Recreation and Leisure) Opportunities for improvement Design and implement sub-systems that streamline data input. Assign further resources to enable the achievement of National Asset Management Assessment Framework goals. Get additional help from GIS / IT for the development of infield data collection technology. Train existing staff to supplement the system (e.g. Allan's culvert module). Benchmark against other Councils to go through systems (compare effective tools). Page 27 of 86

2. Asset Valuations Description: We use typical supplier estimates/product catalogues and price lists and apply this to the components of asset systems. Results are recorded as business rules within the asset management database. Target Customer Group / Key Stakeholders: Internal teams and units Alignment with the Shire Strategic Plan: 5.3.2 To manage Council property assets. Main activities: Note that valuation of assets is generally achieved automatically upon entry to the asset database via a set of "Unit Rates" which are applied as "business rules". Establishment of unit rates is the core activity of this line of business. Key Steps: Asset Management is required to conduct a comprehensive revaluation for all asset categories once every 3 years and a general indexation based on the Australian Bureau of Statistics data, is applied every other year. Comprehensive Revaluation Asset replacement cost is estimated by analysing and constructing unit costs based on capital works contract prices, developer's schedule of rates for subdivisional works, contractor schedule of rates and current supplier catalogue price lists Additional costs are factored into the overall cost, including design and supervision and attributable costs, all based on Green Field What has worked well: Various resources available to obtain information Methodology on how revaluation was undertaken in past years has been well documented Page 28 of 86

Service standards/performance measurements: Annual external audits Current value adding: N/A Potential for value adding: N/A Current Performance: Value: 10 Performance: 7 Outcome: Leave Alone Variances Indexation can result in values being under/over valued Blockages - information isn't always available, not all assets have been constructed in recent years Opportunities for improvement Could revalue yearly, but not a requirement of Council Policy Create an automated process where average values are calculated from the return of works (will require lots of resources). Page 29 of 86

3. Co-ordinate the Development of Asset Management Plans Description: Pull together resources from throughout the organisation to write an Asset Management Plan that will include sections on: Levels of Service Identification of Assets Future Demand Life Cycle Planning Risk Management Financial Planning Asset Management Practices Improvement Program Target Customer Group / Key Stakeholders: Internal teams and units Alignment with the Shire Strategic Plan: 3.3.3 To develop and manage community facilities and spaces according to community needs and values. 3.3.4 To effectively manage and maintain our road and path network. 3.3.5 To prioritise investment in maintenance and refurbishment of community buildings to meet agreed service levels. 3.4.1 To effectively develop and manage our transport network to provide for access, mobility and community safety. 3.4.5 To manage and renew existing infrastructure assets. 3.5.2 To enhance the community's opportunity to participate in a diverse range of recreational, leisure and volunteering experiences. 3.5.3 To enable the community to actively participate in decisions that affect their lives and their communities. 5.1.1 To provide high quality service outcomes by ensuring that council processes and systems are effective and efficient. 5.1.2 To encourage innovation and continuous improvements to meet new and emerging needs. 5.1.3 Implement and support technology and communication systems to deliver services more efficiently and provide improved public access to Council information. Page 30 of 86

5.3.1 To demonstrate good corporate and democratic governance in our operations. 5.3.2 To manage Council property assets. 5.3.3 To monitor and minimise our risk exposure. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Develop template for use with AMP's for major asset classes. Identify officers responsible for AMP activities. Allocate processes for officers to complete. Collate contributions into asset management plans. What has worked well: Identified process and trained Asset Management Staff in preparation of plans. Service standards/performance measurements: See National Asset Management Assessment Framework. Current value adding: N/A Potential for value adding: N/A Current Performance: Value: 10 Performance: 3 Outcome: Assign more resources Variances An asset management plan has not yet been completed for Buildings. Page 31 of 86

Opportunities for improvement High priority has now been allocated to the completion of an AM Plan for Buildings. Utilise resources from throughout the organisation (e.g. Finance, Risk, Corporate Planning, Infrastructure Maintenance, C.W. Planning). Establish E-Team from across the organisation to clarify asset management roles and responsibilities. Page 32 of 86

4. Collate Data on the Condition of Assets Description: Arrange for the condition assessment of critical asset components to support subsequent decision making about he levels of service being provided by the Shire s infrastructure assets. These decisions include matters relating to their need for maintenance, rehabilitation and renewal. Alignment with the Shire Strategic Plan: 3.3.3 To develop and manage community facilities and spaces according to community needs and values. 3.3.4 To effectively manage and maintain our road and path network. 3.3.5 To prioritise investment in maintenance and refurbishment of community buildings to meet agreed service levels. 3.4.1 To effectively develop and manage our transport network to provide for access, mobility and community safety. 3.4.5 To manage and renew existing infrastructure assets. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Adopt a condition rating system consistent across all asset classes. Arrange for an assessment of asset components in an objective and repeatable manner (complete, reliable, and accurate). Apply appropriate degradation models to assess remaining life of asset components. Analyse the asset condition data to assist with: Asset Register Condition assessment rating. Estimated remaining useful life. Depreciated Replacement Cost (DRC). Current Replacement Cost (CRC). Renewals analysis. Integrate data with Asset Management Plans and Long Term Financial Plans. Page 33 of 86

Process Map: Page 34 of 86

What has worked well: The use of the current 0 to 10 condition rating system is encouraged. This system is compatible with the Moloney Model. The use of the Moloney Model is supported by the MAV s Step Program. Data collection of road surface condition as part of SLR contract. Service standards/performance measurements: Compliance with National Asset Management Assessment Framework core competency levels. Current value adding: N/A Potential for value adding: N/A Current Performance: Value: 7 Performance: 4 Outcome: Assign more resources Variances Confidence levels are low for the condition data for some asset classes. e.g. Buildings, bridges, drainage. Page 35 of 86

Opportunities for improvement Data collection process, including levels of service, should be driven by Manager responsible for service being provided by asset. Need for Roles & Responsibilities matrix to clarify officers responsible. Confirm components that are critical to collect (criticality rating). Utilise resources that are collecting defect data to collect condition data. Develop condition assessment manual template to support Service Managers. Utilise modern technology to quickly and accurately collect data. Contribute to industry methods of condition assessment of assets (e.g. RMIT University). Page 36 of 86

5. Developing Asset Management Processes for Emerging SLR Issues Description: Develop processes in consultation with stakeholders. Gain approval through communication with stakeholders. Transparently addressing emerging SLR pavement performance or asset management issues. Alignment with the Shire Strategic Plan: 5.1.1 To provide high quality service outcomes by ensuring that Council processes and systems are effective and efficient. 5.1.2 To encourage innovation and continuous improvement to meet new and emerging needs. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Address emerging issues within SLR contract regarding asset management or pavement performance. Issues identified and investigated. Consult with AXIM/DEW to determine equitable processes (negotiation). Consult with other consultants, authorities, stakeholders if required. Present recommendations to stakeholders via contract meetings. Respond to further enquiries, provide further information if required. Gain approval. Document/contract variation if required. Blockages are the fact AXIM is interstate and busy, levels of approval to be obtained and overall time required to investigate and resolve (and the fact nobody has done this before in most cases in a contract/penalty environment - no precedence). Most significantly, PC and other stakeholders have limited time. Outcomes are new equitable document contract specifications and requirements in keeping with SLR objectives. Page 37 of 86

What has worked well: Commitment from Shire and service provider is good. Basic contract objectives are being achieved. Service standards/performance measurements: Overall performance measures are specified in SLR contract. Objectives are specified in SLR contract. Current value adding: Data and information available is considerable for potential future analysis. Contract objectives provide opportunities for continued development and improvement. Contract objectives encourage innovation. SLR contract is in itself unique and innovative (not undertaken at Local Government level anywhere else in Australia). Potential for value adding: Yes, if resourced adequately by Shire and service provider, innovation and value adding could be considerable in many ways. Current Performance: Value: 9 Performance: 4 Outcome: Assign more resources Variances Issues emerge more rapidly than they can be resolved. Contract commenced with little regard for data integration issues. Potential emerging issues are complex and not adequately resourced. Page 38 of 86

Data integration issues are complex and not adequately resourced. Data accuracy at stage of contract commencement leaves heavy reliance on Shire/service provider goodwill. Given processes in pavement performance have no precedent at Local Government level in Australia, accuracy and integrity requirements are considerable given potential penalties. Opportunities for improvement Continue to participate on the data integration sub group (SLR OT) to identify opportunities for improvements to the sharing of information between the two organisations. Significant data exists for further analysis, program production, justification of increased capital funding requirements, more accurate reporting, more automated reporting, linkages between asset registers and contractor claims for growth etc. Page 39 of 86

6. Ensuring Compliance with SLR contract Pavement Performance Description: Ensuring condition of Shire sealed roads is measured and maintained. Target Customer Group / Key Stakeholders: Internal stakeholders Alignment with the Shire Strategic Plan: 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Cyclical measurement of condition. Calculating resultant condition indicators. If requirements achieved, set targets for next assessment. If not achieved, enforce rectification, then set targets. What has worked well: Specified in contract - enforceable. Good communication and commitment due to penalties involved. Service standards/performance measurements: Pavement condition indicators to be maintained (specified in SLR contract). Current value adding: Much value adding generally in contract. Potential for value adding: If time to develop further requirements, initiatives - Yes. Page 40 of 86

Current Performance: Value: 10 Performance: 7 Outcome: Leave alone Variances Many emerging issues need time and consultation to resolve Time consuming to ensure accuracy and transparency given non-compliance implications. Opportunities for improvement New Road Treatments analysis/negotiation/agreement required for inclusion within PCI process. Technological Advancements - analysis/negotiation/agreement required for condition assessment within PCI process. Sealed Car Parks - analysis/negotiation/agreement required for inclusion within PCI process (currently unfunded). Sealed Laneways/ROW s - analysis/negotiation/agreement required for inclusion within PCI process (currently unfunded). Greater dtims PMS knowledge training and use of system required for greater comfort level for 3-yearly performance compliance and legal protection if PCI not achieved. SLR Contract Annexure 6 requires update as it does not reflect all current PCI processes. Create updated road register to comply with legal requirements and address liability (current road maintenance not in alignment or integrated with RMP/Road Register service levels). Pavement performance assessment process could be improved within contract to provide better value for the community by allowing joint party agreed flexibility. Pre-SLR level of integrated road data is not available, and is compromising ability and accuracy of reporting, renewal gap modelling and audit of SLR PCI. Page 41 of 86

7. A Framework for the Processes, Documentation & Specifications of Asset Data Supply Description: Develop and document specifications for supply of asset information. Alignment with the Shire Strategic Plan: 5.1.1 To provide high quality service outcomes by ensuring that Council processes and systems are effective and efficient. Main activities: Reviewing existing frameworks for asset information. Specify what information we want (changes over time) - consult relevant team member. Develop systems to collect date in "correct" / new format. Document and educate and enforce (as SIMS contractors are largely responsible for data collection/updating). What has worked well: Contractors are starting to supply information - signs, points, drains etc. Service standards/performance measurements: Accurate information. None - directly. Current value adding: N/A Potential for value adding: Yes, it will allow for better reporting etc., flow on effects. Page 42 of 86

Current Performance: Value: 10 Performance: 5 Outcome: Assign more resources / leave alone Variances Contract requirements are letting us down. Lack of ability to enforce. Lack of incentive for contractors to supply data. Lack of internal resources (both in development and enforcement). Opportunities for improvement Tighten up wording in SIMS contracts to clarify the s data capture requirements from service providers. Support additional resources in Infrastructure Maintenance to ensure auditing of SIMS service providers is conducted for compliance with the upgraded data capture requirements. Page 43 of 86

8. GIS System Asset Display Description: Spatially identify newly constructed or located assets in KMS to be displayed in MAPS for stakeholders. Alignment with the Shire Strategic Plan: 3.3.3 To develop and manage community facilities and spaces according to community needs and values. 3.3.4 To effectively manage and maintain our road and path network. 3.3.5 To prioritise investment in maintenance and refurbishment of community buildings to meet agreed service levels. 3.5.1 To facilitate improved learning opportunities to raise participation and increase access to information and technology. 3.5.2 To enhance the community's opportunity to participate in a diverse range of recreational, leisure and volunteering experiences. 3.5.3 To enable the community to actively participate in decisions that affect their lives and their communities. 5.1.1 To provide high-quality service outcomes by ensuring that Council processes and systems are effective and efficient. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Page 44 of 86

Main activities: Link KMS identifiers (ID Counters) to lines, points or polygons to display assets. Link photos to these assets that will be displayed through MAPS for stakeholders. Key Steps: KMS Assets Photos Geomedia MAPS What has worked well: All works well. Service standards/performance measurements: Assets are linked as part of the process. Current value adding: Validation from stakeholders. Design, Construction, other internal personnel. Potential for value adding: Validation of data with updated aerial photography and Google Street View. Funding for more resources for linking of old assets. Better audit data from service providers. Linking of photos of assets. Aerial photography annually. Page 45 of 86

Current Performance: Value: 10 Performance: 6 Outcome: Leave alone Variances N/A Opportunities for improvement Aerial photography updated on a yearly basis. Page 46 of 86

9. Identify Shire Assets Description: People use plans, visual inspection and other documents to identify and record the assets which the Shire manages, or has an interest in (e.g. foreshore assets). Alignment with the Shire Strategic Plan: 5.3.2 To manage Council property assets by identifying the assets and their condition we can manage the maintenance more effectively. 5.3.3 To monitor and minimise our risk exposure consistent auditing of asset conditions can minimise public liability claims and defend such claims. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Digitise plans. Asset data. Verify existence and condition of assets. Audit data in the field using PDA and spatial information. Identify ownership of assets. Publish asset data to MAPS. What has worked well: Information flow from other notifying departments (Capital Works is a good example). Audit information from most contractors. The use of "How To" guides and Asset "Catalogues". Service standards/performance measurements: All newly built assets to be entered by the EOFY. Current value adding: Identify assets that don't need service (because of ownership). Potential for value adding: Promote the use of MAPS to identify current assets. Benefits are cost savings in maintenance. Page 47 of 86

Expand the use of asset "How To" and catalogue documents - use for creating interest within other teams. Current Performance: Value: 9 Performance: 7 Outcome: Leave alone Variances Large volumes of data. Constant expansion of customer requirements. Not enough training of contributors. Opportunities for improvement Building relationships with other departments/units/contractors in order to receive notification. Training of collectors/auditors to produce valid/useful data. Asset catalogues further development. Page 48 of 86

10. Reconciliation of Capital Works Accounts for Contracts Description: Collection of data relating to the Shire's Capital Works Projects. This might include attribute data (dimensions, material, date of construction), spatial data (location) and financial data (current replacement cost, useful life). Alignment with the Shire Strategic Plan: 3.3.3 To develop and manage community facilities and spaces according to community needs and values. 3.3.4 To effectively manage and maintain our road and path network. 3.3.5 To prioritise investment in maintenance and refurbishment of community buildings to meet agreed service levels. 3.5.1 To facilitate improved learning opportunities to raise participation and increase access to information and technology. 3.5.2 To enhance the community's opportunity to participate in a diverse range of recreational, leisure and volunteering experiences. 3.5.3 To enable the community to actively participate in decisions that affect their lives and their communities. 5.1.1 To provide high quality service outcomes by ensuring that Council processes and systems are effective and efficient. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Collection of new, upgrade of old and disposing of redundant assets in our asset management system and spatially displayed in our GIS (M.A.P.S). Page 49 of 86

Key Steps: Asset Protection Notification Anne Smoker Finance GIS KMS Parent/Child Swap What has worked well: Asset protection notification. Assets in KMS and GIS are up to date as of 2010/11. Service standards/performance measurements: Notification of practical completion - to be entered within one (1) month. Current value adding: Validation of construction works with Contract Supervisor. Validation of assets from field verification, design, photos and construction, photo and design plans. Potential for value adding: Validation of data with updated aerial photography. "As Construction" plans A Spec implementation. Return of works to reflect works completed. Page 50 of 86

Current Performance: Value: 10 Performance: 8 Outcome: Leave alone Variances Timely fashion of parent/child swap with Finance. Opportunities for improvement Provision of "As Constructed" plans by Design. Page 51 of 86

11. Reporting Description: The responds to external and internal requests for information on Shire assets. Alignment with the Shire Strategic Plan: 5.3.2 To manage council property assets. 5.3.3 To monitor and minimise our risk exposure. 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Long term financial planning for asset renewal (MAV STEP Program and DPCD Survey). Produce reports for internal customer requests on quantities and value of assets. Report to external auditors and authorities. Key Steps: Collate data (this can include information on age, condition, value ($), quantity) from asset management database, consultation with other internal departments, e.g. Finance, Infrastructure Maintenance. Enter and present data in required format (spreadsheet, graph, specific pro-forma). Depending on what information is required, blockages/delays are experienced when asset condition data is required and maintenance/capital expenditure details. The outcomes result in delays in producing final report. Integrity of data is questionable, therefore, report accuracy is compromised. What has worked well: Refining queries to improve consistency and accuracy. Documenting procedures in greater detail. Service standards/performance measurements: Benchmarked against state-wide Councils (MAV STEPS - renewal gap). Statutory requirements. Page 52 of 86

Current value adding: Yes, responding to internal reporting enquiries as high priority. Potential for value adding: If data relating to roads were able to be structured effectively in a database, accuracy would be improved and efficiency would be greatly improved. Current Performance: Value: 9 Performance: 6 Outcome: Leave alone. Reporting OK, however, data needs improving. Variances Existing accounting structure does not cater for level of detail required, resulting in assumptions or "best guess". Require updated asset data. Opportunities for improvement Improve confidence in data integrity by collecting reliable attribute, spatial and condition data on all material assets (e.g. improved building component data according to criticality, all fencing, and clarification of responsibility for foreshore assets). Develop consistent definitions of asset types through expansion of the asset catalogue. Further develop "base" queries in KMS for basic/common enquiries. Road data reporting structures were dispensed with at the time of SLR contract commencement. No opportunity has been provided to re-establish these structures (which were the result of 12+ years of customisation). The opportunity to re-establish these would increase efficiencies and accuracy significantly. Re-establishment would require analysis of existing spreadsheet data, updating of road segment data (splitting assets, segments etc.), creating additional required fields in existing database tables, populating the new fields, creating and testing macro s for report production, and availability of suitable road, reporting and database knowledgeable resources to achieve these tasks, Auditing of contracts (SIMS) for updated data to be submitted on regular basis along with condition data for assets. Page 53 of 86

12. Review of Useful Life of Assets Description: The useful life is the period over which an asset is expected to provide the required level of service. This can be based on economic life or physical life. Alignment with the Shire Strategic Plan: 5.5.1 To sustainably manage the Council's finances and resources. 5.5.2 To effectively develop and manage the Capital Works Program. Main activities: Collecting and analysing condition rating data. Determine justifiable useful and remaining lives. This information then feeds into long term cashflow predictions for asset renewal. Key Steps: 1. SIMS Contractors (Independent ad hoc Asset Class Reviews) (data received from ) 2. Roads: data analysis ) then OEL uploaded ) done in system into system ) ) Other Assets: based on ) condition rating / ) age ) 3. Blockages: Yes - no condition data for some assets. No defined process. 4. Outcome - accurate picture of expenditure to sustain assets (intended). What has worked well: Having condition assessment requirements and processes written into contracts (e.g. roads) works well, processes are currently lacking for other asset classes. Service standards/performance measurements: Renewal Gap - for other asset classes. Current value adding: N/A Page 54 of 86

Potential for value adding: Data quality will improve if done accurately (for other Infrastructure assets). Not for roads (again, not part of contract). Current Performance: Value: 10 Performance: 3 Outcome: Assign more resources Variances Lack of condition data - due to no processes in place for the cyclical condition assessment of many assets. Opportunities for improvement Develop specifications for condition/remaining life data provision for inclusion in SIMS2 contracts. This will enable more reliable useful life determination, and hence more accurate financial depreciation and renewal gap analysis. Page 55 of 86

13. Validation of Assets Description: The actual existence of assets must be reaffirmed periodically to ensure confidence in the Asset Register. Alignment with the Shire Strategic Plan: 5.3.2 To manage Council property assets. Main activities: Visit the asset, either personally or via Google Street View. Confirm position, type and critical dimensions. Update the asset register (AMS) attributes. Add a verification comment including who, method and date. Archive the previous verification comment (process required to create archive). Key Steps: Asset Management Officer or Assistant creates a work/job log for verifications and personally carries out the activity. Alternatively, contractors submit details of verifications on approved data files and these are automatically entered into the asset register (AMS). Delays occur due to: o Lack of resources internally for verifications. o Continuing development of the automated process. What are the outcomes? Are these the intended or best outcomes? What has worked well: The use of Google - MAPS - Street View for low level verifications. Page 56 of 86

Service standards/performance measurements: Tasks listed on job log. Job progress reported bi-monthly at Team Leader meeting. Current value adding: N/A Potential for value adding: Opportunities for volunteer program Current Performance: Value: 9 Performance: 2.5 Outcome: Assign more resources. Variances Google is not often updated and old information hampers the verification process. No current facilities for volunteer/citizen input. Opportunities for improvement Utilising 3D street level imagery, digital road pavement condition data imagery, an updated version of Google Street View, or similar. Volunteer input could be achieved through our updated MAPS Program - local knowledge. Look at alternative networks to gather aerial data outside of Google Street View - compare with other Councils - look at cost for software. Tapping into groups (i.e. friends groups, historical groups, walker groups) to supply knowledge, information etc. Page 57 of 86

Council Meeting 3.6 PERFORMANCE MEASURES AND BENCHMARKING Regulatory and non-regulatory reporting and data management of assets supporting or in compliance with: Australian Accounting Standards (various) Road Management Act 2004 Australian Infrastructure Financial Management Guidelines International Infrastructure Management Manual Local Government Asset & Financial Management Framework Shire Asset Management Policy Shire Asset Management Strategy Shire Road Management Plan Register of Public Roads Policy DPCD and MAV Guidelines The Shire is a participant in the National Asset Management Assessment Framework. Refer to Appendix 1 for the 2011 Report Card. Refer to Appendix 2 for the 2010 Report Card. Significant improvements have been made, particularly in the area of Asset Management Plans. The Shire also participates in the annual Asset Management Performance Measures Survey conducted by the Department of Planning and Community Development. In 2011, the Shire recorded a Sustainability Index (Projected Expenditure / Estimated Budget) for all assets of 1.02, well within the required range of 0.4 to 1.2. Page 58 of 86

3.7 CONSULTATION 3.7.1 Internal Stakeholder Consultation An internal consultation session was held with key internal stakeholders from across the organisation including staff from the following Units: Environment Protection Finance Governance & Corporate Support Information Services Infrastructure Maintenance Infrastructure Project Management Infrastructure Strategy Property & Valuations Recreation & Leisure Renewable Resources A comprehensive list of invitees is included in Appendix 3. The session commenced with a PowerPoint presentation covering: Team purpose Types of assets Detail of data Sources of data Processes for you to provide data Data analysis and reporting How can we better assist you? At the conclusion of this session a Feedback Sheet was provided to attendees. Rankings and comments were sought on the s recent performance. Feedback was also sought on improvements that could be made to the service provided by the Team. Twenty six (26) feedback forms were returned. A copy of the Internal Consultation Feedback Sheet is included in Appendix 4. The feedback results are recorded in Appendix 5. Page 59 of 86

Highlights of the results were: Average rating of the value of Asset Management to attendees work: 8.5 Average rating of the performance of the AM Team over the past year: 7.5 Average rating of the helpfulness of the AM Team over the past year: 8. [Scores out of 10.] Lowlight of the results was: Attendees currently not providing AM Team with adequate information when and as required: 58% Attendees provided 17 useful suggestions for improvements to the service. All suggestions are listed in Appendix 5. Page 60 of 86

4 SECTION FOUR OUTCOMES 4.1 CONTINUOUS IMPROVEMENT PLAN A list of potential improvements was identified during the best practice review. (Refer to Appendix 6.) Seven (7) items will be given priority for implementation over the next year. They are considered in further detail below with proposed strategies, desired outcomes, responsible officers and estimated timelines for implementation. Issue / Improvement Idea Strategies Outcomes Responsibility Timeline 1. Asset management roles and responsibilities matrices Identify asset class priority for matrix development. Develop draft matrix for most critical asset class. Consult with stakeholders to clarify their roles and responsibilities for asset related activities. Finalise and publish matrix. Clearer understanding of roles and responsibilities within organisation for achieving objectives. Clarification of sources and types of information required. Assist the Shire to effectively plan the services that assets are supporting. Colin Myers December 2012 Page 61 of 86

Issue / Improvement Idea Strategies Outcomes Responsibility Timeline 2. Utilise up to date infield data technology Submit Budget bid to purchase a Tablet PC and a rugged PDA Explore opportunities to optimise effective use of technology. Justify investment. More efficient use of resources. High performance in an outdoor environment. Minimise errors in data collection Davey Smith December 2012 Ascertain usage with similar councils. Improve confidence in data collected. Page 62 of 86

Issue / Improvement Idea Strategies Outcomes Responsibility Timeline 3. Finalise Asset Management Plans for 4 major asset classes Work with internal stakeholders from throughout the organisation (e.g. Finance, Risk, Corporate Planning, Infrastructure Maintenance, C.W. Planning) to complete respective sections of Plans. Compile input from contributors and finalise Plans. Provision of a written representation of the Shire s intended AM programs. Communication of information about assets, including particular actions required to provide a defined level of service in the most cost-effective manner. Coin Myers 3 completed. Buildings due June 2012 Strengthens Council s planning, financial management and accountability. Justification of long term renewal expenditure forecasts for infrastructure assets. Integration and improvement of asset planning and budgeting. Assist with demonstrating effective management of assets and sound expenditure decisions. Compliance with National Asset Management Assessment Framework. Page 63 of 86

Issue / Improvement Idea Strategies Outcomes Responsibility Timeline 4. Develop module to assist in valuing component of drainage culverts Break down culverts into components: o Pipes / More accurate valuations of culverts to component level. John Groat Allan Hobby Lauren Annear August 2012. o Box culverts o End Walls o Wing Walls Develop prototype of culvert data system Develop unit rates for components. Update information into KMS. Update Drainage Revaluation procedure for culverts. Page 64 of 86

Issue / Improvement Idea Strategies Outcomes Responsibility Timeline 5. Develop Sustainable Infrastructure Asset Management Strategy Follow structure and content recommended by Local Government and Planning Ministers Council (LGPMC). Adopt an AM Strategy template. High level description of AM practices. AM objectives and how they support strategic objectives and AM Policy. Colin Myers September 2012 Liaise with interested stakeholders. Summaries of broad plans and programs to be implemented. Include: o What assets do we have? o Details of the assets. o Where do we want to be? Planned program of AM practice improvements. AM resources, responsibilities and timelines for implementing strategy. o How will we get there? o AM improvement plan. Have AM Strategy endorsed by CW & AM Steering Committee. Have AM Strategy adopted by Council. Performance measures to assess the efficiency of the AM Strategy. Audit, review and updating procedures. Page 65 of 86

Issue / Improvement Idea Strategies Outcomes Responsibility Timeline 6. Review Asset Management Information System. (Lifecycle KMS) Seek funding for engagement of a consultant. Prepare brief with input from internal interested stakeholders. Identify user requirements. Engage consultant to undertake review. Determine level of sophistication required to meet MPSC needs. Clearer understanding of best practice Asset Management Information Systems. Alignment of AMIS with organisational goals and objectives. Confidence that AMIS is optimised to meet the Shire s requirements. Colin Myers September 2012 Comment [m1]: See IIMM, 4.3.5. Consider: o Long term needs. o Ease and efficiency of system. o Required staff resourcing. o Integration with other systems (GIS, Merit, finance) o Effective documentation Consider outcomes from consultant s report. Page 66 of 86

Issue / Improvement Idea Strategies Outcomes Responsibility Timeline 7. Improve the processes, documentation and specifications for Asset Data supply by external resources. Develop specifications for data collection and exchange for inclusion in SIMS2 contracts. The data provided by service providers will be: o Accurate, complete, consistent, timely, and compliant. Colin Myers Davey Smith March 2012 Improved: o Data quality. o Data exchange. o Asset notification procedures. o Asset condition data. Page 67 of 86

5 SECTION FIVE APPENDICES 5.1 APPENDIX 1 NATIONAL FRAMEWORK CORE COMPETENCY REPORT CARD - 2011 Page 68 of 86

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5.2 APPENDIX 2 NATIONAL FRAMEWORK CORE COMPETENCY REPORT CARD - 2010 Page 70 of 86

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5.3 APPENDIX 3 INTERNAL STAKEHOLDERS Unit / Department Corporate Planning & Development Environment Protection Finance Finance Finance Finance Governance & Corporate Support Governance & Corporate Support Information Services Information Services Infrastructure Maintenance Infrastructure Maintenance Infrastructure Maintenance Infrastructure Maintenance Infrastructure Maintenance Infrastructure Maintenance Infrastructure Maintenance Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Project Management Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Infrastructure Strategy Property & Valuations Property & Valuations Recreation & Leisure Recreation & Leisure Recreation & Leisure Recreation & Leisure Recreation & Leisure Recreation & Leisure Recreation & Leisure Renewable Resources Renewable Resources Name Tracey Cummings Michael Doyle Geoff Emberson Greg Simcock Lynn Schulz Margot Smith Chris Wallis Greg Brough Andre De Castro Phil Hughes Barry Pankhurst Greg Powell Lisa Sheahan Peter Young Russell Jacgung Simon Thorning Steve Yorke Ansel Arcuri Cameron Cantley-Smith Chris Lyne Craig Cinquegrana Darren Jones David Hampton David Lane Derek Rotter Glenn McAliece John Ault-Connell Judy Wiebrecht Mark Newnham Sam Polatidis Terry Boyd Alan Prentice Alesha Milne Allan Hobby Anne Smoker Colin Myers Doug Bradbrook John Groat Lauren Annear Niall McDonagh Nicola Belcher Peter Clewer Peter Frazer Ross Gregory Tom Burk Wendy McAlpine Greg Collins Jim Houlahan Byron Douglas Chris Munro Fiona Colquhoun Heath Gillette James Rogers Michael Scully Nicole Fitzpatrick Jessica Wingard Sophia Schyschow Page 72 of 86

5.4 APPENDIX 4 INTERNAL CONSULTATION FEEDBACK SHEET Asset Management Internal Consultation Feedback Sheet In line with our commitment to do everything we do the best way it can be done, the Asset Management team is currently undertaking a. An important aspect of the review includes consultation with other team members and we would greatly appreciate your feedback. Name: Team / Unit: 1. Please tell us how informative you found today s session to be: Extremely the session provided a thorough overview of the work carried out by the team Very I already had some understanding and the session helped to expand on that Partially Some of the information presented was useful Not at all I already had a thorough understanding of the work carried out by the Asset Management team Comments: (optional) 2. Please indicate which of the following Asset Management outputs (information) you have used to perform your work. (you can tick more than one answer) Description of assets (e.g. What are the physical attributes of a nominated asset, such as location, material, or age?) Quantity of assets (e.g. How many timber footbridges does the Shire own?) Value of assets (e.g. What is the written down value of the Shire s pathways?) Asset condition (e.g. How many recreational buildings are due for renewal?) Asset ownership (e.g. Is a drain on Point Nepean Rd the responsibility of the Shire, VicRoads or Melbourne Water?) Useful Life (e.g. Based on its current condition what is the estimated remaining useful life of a nominated playground?) Financial forecasting (e.g. How much money will I need over the next 10 years to renew all the fences in very poor condition?) Page 73 of 86

Geographic Information System (GIS) [M.A.P.S.] (e.g. Have you viewed on the GIS the location of the Shire s stormwater drains?) Asset lists (e.g. Where are the barbecues located that need to be included in the Shire s specification for barbecue cleaning?) Register of Public Roads (e.g. Is Rostington Road the responsibility of the Shire to maintain?) Other If Other, please list: 3. In general, how would you rate the quality of the information you were provided? (Refer Question 2) (circle answer) N/A Absolutely Pathetic Extremely Poor Very Poor Comments: (optional) Poor Fair Satisfactory Good Very Good Excellent Perfect Not Applicable 4. How would you rate the value of Asset Management to your work? (circle answer) No importance Extremely important 5. How would you rate the performance of the over the last year? (circle answer) D/K Absolutely Pathetic Extremely Poor Very Poor Poor Fair Satisfactory Good Very Good Excellent Perfect Don t Know Page 74 of 86

6. Are there any additional asset reports or data that would assist you in your work that you are not able to currently get from the Asset Management team? No Yes If Yes, please list: 7. How would you rate the AM Team s helpfulness when responding to requests for information? (circle answer) N/A Absolutely Pathetic Extremely Poor Very Poor Poor Fair Satisfactory Good Very Good Excellent Perfect Not Applicable 8. How could the s level of service be improved? (provide details): 9. Do you currently advise the AM Team of new assets you have created or existing assets you have renewed, upgraded, altered or removed? Yes, I always provide them with information Yes, I sometimes provide information but not always No, I don t know how to No, I don t provide information Not applicable Page 75 of 86

10. What methods do you use to advise the AM Team of new, renewed, upgraded, altered or removed assets? (you can tick more than one answer) Corporate Asset Notification points form or lines form (Excel spreadsheet) Infrastructure Asset Notification (IAN) e-mail Personal Digital Assistant (PDA) As-constructed plans D-Spec Not applicable Other (provide details) 11. How committed are you to assisting the keep the Shire s asset database up to date? (circle answer) N/A Not Committed Extremely Committed Not Applicable 12. Asset Management is a whole of Council responsibility. (circle answer) Strongly Disagree Strongly Agree Page 76 of 86

13. Do you have any other feedback or suggestions for improvement to the team? What could be done better or differently? Identify any issues or concerns. Your time and feedback are greatly appreciated. Thank you from the : Colin Myers Peter Clewer John Groat Anne Smoker Lauren Annear Allan Hobby Alesha Milne Wendy McAlpine Page 77 of 86

5.5 APPENDIX 5 INTERNAL CONSULTATION FEEDBACK RESULTS Qu est io n Count Mean High Low 1 Please tell us how informative you found today s session to be: St d Dev Extremely the session provided a thorough overview of the work carried out by 3 Very I already had some understanding and the session helped to expand on that 20 Partially Some of the information presented was useful 2 Not at all I already had a thorough understanding of the work carried out by the 1 2 Please indicate which of the following Asset Management outputs you have used to perform your work. Description of assets 21 Quantity of assets 13 Value of assets 11 Asset condition 11 Asset ownership 17 Useful Life 9 Financial forecasting 6 Geographic Information System (GIS) [M.A.P.S.] 22 Asset lists 14 Register of Public Roads 16 Other 4 3 In general, how would you rate the quality of the information you were provided? Rating 7.50 9 5 1.14 4 How would you rate the value of Asset Management to your work? Rating 8.54 10 5 1.45 5 How would you rate the performance of the over the last year? Rating 7.50 9 5 1.10 6 Are there any additional asset reports or data that would assist you in your work that you are not able to currently get from the Asset Management team? No 18 Yes 8 7 How would you rate the AM Team s helpfulness when responding to requests for information? Rating 8.16 10 6 1.07 9 Do you currently advise the AM Team of new assets you have created or existing assets you have renewed, upgraded, altered or removed? Yes, I always provide them with information 8 Yes, I sometimes provide information but not always 9 No, I don t know how to 2 No, I don t provide information 0 Not applicable 8 10 What methods do you use to advise the AM Team of new, renewed, upgraded, altered or removed assets? Corporate Asset Notification points form or lines form (Excel spreadsheet) 5 Infrastructure Asset Notification (IAN) e-mail 6 Personal Digital Assistant (PDA) 1 As-constructed plans 1 D-Spec 1 Not applicable 8 Other 4 11 How committed are you to assisting the keep the Shire s asset database up to date? Rating 8.88 10 6 1.17 12 Asset Management is a whole of Council responsibility Rating 9.12 10 5 1.18 Page 78 of 86

1 Please tell us how informative you found today s session to be: Comments: (optional) 1 Knew most of the information provided by AM at today's session. Not a criticism - good thorough presentation. I already work rather closely with assets in a number of areas of my 2 work. 3 Even though I work with the team frequently I still found the presentation informative and helpful. 4 Quality of presentation was very good in addition to the content. 5 Enhance PowerPoint slides - more legible especially graphs etc. 6 More descriptive than analytical. More analysis would have been more interesting / useful. 2 Please indicate which of the following Asset Management outputs you have used to perform your work. Other If Other, please list: 1 Asset data output is used for preparation of annual statements, Grants Commission reporting. In regards to G.C. report there may be better ways of getting data. 2 Photographs of assets held in data base. 3 Lights Council owned & maintained. 4 Most of the asset information I have used has been on GIS dealing with UMS. 5 Road Management Plan 3 1 How would you rate the quality of the information you were provided? Comments: (optional) Whilst the information is not perfect, over the last couple of years it's been getting a lot better and by working with the team I'm sure we can improve on the present information. 2 Some things are not correct, particularly with drainage. 3 Need more info how and where to find. 4 Data quality is always improving, however up to date photos etc would be useful. Page 79 of 86

Are there any additional asset reports or data that would assist you in your work that you are not able 6 to currently get from the Asset Management team? If Yes, please list: I think we may be able to improve on getting some data out for the G.C. report. i.e. depreciation for halls, 1 community amenities. I regularly avail myself of reports & info from the team. There are gaps but considerable effort is being made to 2 improve this. 3 Can we have an Objective reference sent for the PowerPoint presentation? 4 Specific date - speed signs, parking signs, car parks, skid resistance treatments. 5 Car park data - condition, materials, etc. 6 Condition of trails. 7 Our assets on the data base. 8 Annual program for asset collection data, rather than reliance on each individual team to collect data. 8 How could the s level of service be improved? (provide details): 1 Decrease depreciation. :-) 2 3 The team depend on "all" council input, and therefore all managers / team need to support the team's efforts - including contractors' support. I believe the AM team should be the "drivers" of asset data collection, recording, maintaining and reporting on. This would be achieved through a "proactive" approach. At this stage I feel there is an element of "reactive" approach and I sense Infrastructure Maintenance has to drive what they need from Asset Mgt. 4 I have always received timely and helpful info whenever I request it. 5 An extremely helpful team and a pleasure to work with. 6 Continue verification of assets, particularly drainage. 7 Resources to meet their requirements. Send out information via IAN - back to the teams - reminders for info & follow up on assets created or requests 8 where gaps are identified. Sell and inform their services to organisation better - How to access; Progress & extent & confidence of accuracy 9 of current data. 10 Will work with the team to provide more info & receive more info from them. 11 Solid. 12 The personal service is great, the only limitation is the quality of the data that they have access to. What methods do you use to advise the AM Team of new, renewed, upgraded, altered or removed 10 assets? Other (provide details) 1 When reviewing Merit Workflows I incorporate AM where applicable. As agreed with Colin we provide details of assets constructed, however as indicated by Colin this needs to be 2 improved. 3 E-mail, sending quotes / invoices. 4 Just head over and ask! Page 80 of 86

13 Do you have any other feedback or suggestions for improvement to the team? What could be done better or differently? Identify any issues or concerns. 1 Perhaps keep in mind that we are continually developing our corporate business systems so integration to AM could be considered. We already have a wireless interface to Merit and a property management solution is being developed too. We also have a smartphone community app under development. 2 Regular meeting between financial accounting & asset team, as to what is going on in both teams. i.e. audit, etc. How the work in the asset team can affect the finance team. i.e. Change of class of an asset. Movement of a class of asset to another class. i.e. An item in roads may now be in other infrastructure. 3 Great overview. I would like to be kept updated on more sessions if they become available. Please keep holding / presenting this information session as it is important to educate managers, etc. Would be good if the building / property team could come to this session. I was impressed with the preferred asset collection methods and would encourage managers to use this. Asset collection extremely important for financial purposes as well as for all other obvious reasons. 4 Finance & asset management & contractors & infrastructure maintenance team need stronger relationship. Q. 9. Finance struggle with "new" assets #### the ledger and putting them in the asset system. Team needs greater understanding of "accuracy" requirements. 5 I feel there is an underlying issue around clear definition of roles & responsibilities for teams in terms of AM. While I believe Infrastructure Maintenance has a strong relationship with AM and understanding of roles / responsibilities, I suggest there are gaps in other parts of the organisation whereby new, additional, or removal of assets arranged by others (e.g. Foreshore camping by R & L, signage by EPU) are not being captured, leading to inconsistent approaches across the organisation. Suggest AM need to proactively drive clear roles / responsibilities and consistency in approach. Q 9. Yes, I always provide them with information, but through the service provider's and Shire systems. Q. 10. This is a critical element of the SIMS contracts for service providers to assist AM. Next generation SIMS will need to be enhanced. AM input to specification will be essential. Q. 12. Participation and commitment from all is required, but clear in roles / responsibilities. 6 All efforts are being made to improve the data available to all of us and the AM team are working hard to achieve this. Well done!! Q. 9. SIMS providers do, most of the time!? Q. 11. In conjunction with service provider. Page 81 of 86

13 Do you have any other feedback or suggestions for improvement to the team? What could be done better or differently? Identify any issues or concerns. 7 These sessions would be a good opportunity to introduce the rest of the team to the gallery, if not in person then photos & role descriptions on the slides. 8 There does not appear to be much useful data on building assets. More emphasis on my team about providing appropriate info to 'AM'. Happy to assist as required. Corporate Asset Notification points form or lines form (Excel spreadsheet) Q 9. Yes, I always provide them with information, capital works / developments. 9 Q 9. Yes, I sometimes provide them with information but not always, reinstatements. Q. 10. Corporate Asset Notification points form or lines form (Excel spreadsheet). Still waiting on 'line' form for minor works / reinstatements. Q. 10. As-constructed plans. #### process #### Derek - engaging independent surveyor. 10 Q. 6. Rating 6 - Due to lack of resources within the team, not the team themselves. Well done Colin!! 11 Q. 9. No, I don t know how to - probably not my responsibility. 12 Harass people like me more to provide asset info when I haven't provided it. Work together on asset renewal programs, e.g. guardrail renewal. Q. 9. Yes, I sometimes provide them with information but not always - I rely on or expect UMS & Downer to update asset data when they do works on or install new assets. Q. 10. Corporate Asset Notification points form or lines form (Excel spreadsheet) - I know I need to use this. 13 Very comprehensive approach & continue the excellent team role. 14 Details about asset management system & data contractors collect which may be more detailed than ours. 15 Rec staff are undertaking extensive audits, e.g. sports lighting. We will pass on this information. More will be done by camping this year & are more than happy to work closely with Assets to improve the Shire's knowledge of assets. Having the assets listed will improve our maintenance & asset replacement strategy. 16 I believe should have web based database access the information and also input the information. Ability to access information and reports regularly. Better informed information allow us to prioritise annual programs, currently happens on a "political" basis. 17 More accessible or clearer guidelines in process for accessing data or inquiry. Q. 9. No, I don t know how to - I've had some questions & not sure I'm doing the right thing! OR who's responsible! Page 82 of 86

5.6 APPENDIX 6 POTENTIAL IMPROVEMENTS 1. Asset Management System Design and implement sub-systems that streamline data input. Further resources (personnel / software). Get additional help from GIS / IT. Encourage existing staff to supplement the system (e.g. Allan Hobby s drainage culvert revaluation module). Review best practice in AM systems and processes. Benchmark against other Councils to go through systems (compare effective tools). 2. Asset Valuations Could revalue yearly, but not a requirement of Council Policy Create an automated process where average values are calculated from the return of works (will require lots of resources) [too hard] 3. Co-ordinate the Development of Asset Management Plans High priority has now been allocated to the completion of an AM Plan for Buildings. Utilise resources from throughout the organisation (e.g. Finance, Risk, Corporate Planning, Infrastructure Maintenance, C.W. Planning). Establish E-Team from across the organisation to clarify asset management roles and responsibilities. 4. Collate Data on the Condition of Assets Data collection process, including levels of service, should be driven by Manager responsible for service being provided by asset. Need for Roles & Responsibilities matrix to clarify officers responsible. Confirm components that are critical to collect (criticality rating). Utilise resources that are collecting defect data to collect condition data. Develop condition assessment manual template to support Service Managers. Utilise modern technology to quickly and accurately collect data. Contribute to industry methods of condition assessment of assets (e.g. RMIT University). 5. Developing Asset Management Processes for Emerging SLR Issues Continue to participate on the data integration sub group (SLR OT) to identify opportunities for improvements to the sharing of information between the two organisations. Page 83 of 86

Significant data exists for further analysis, program production, justification of increased capital funding requirements, more accurate reporting, more automated reporting, linkages between asset registers and contractor claims for growth etc. 6. Ensuring Compliance with SLR contract Pavement Performance New Road Treatments analysis/negotiation/agreement required for inclusion within PCI process. Technological Advancements - analysis/negotiation/agreement required for condition assessment within PCI process. Sealed Car Parks - analysis/negotiation/agreement required for inclusion within PCI process (currently unfunded). Sealed Laneways/ROW s - analysis/negotiation/agreement required for inclusion within PCI process (currently unfunded). Greater dtims PMS knowledge training and use of system required for greater comfort level for 3-yearly performance compliance and legal protection if PCI not achieved. SLR Contract Annexure 6 requires update as it does not reflect all current PCI processes. Create updated road register to comply with legal requirements and address liability (current road maintenance not in alignment or integrated with RMP/Road Register service levels). Pavement performance assessment process could be improved within contract to provide better value for the community by allowing joint party agreed flexibility. Pre-SLR level of integrated road data is not available, and is compromising ability and accuracy of reporting, renewal gap modelling and audit of SLR PCI. 7. A Framework for the Processes, Documentation & Specifications of Asset Data Supply Tighten up wording in SIMS contracts to clarify the s data capture requirements from service providers. Support additional resources in Infrastructure Maintenance to ensure auditing of SIMS service providers is conducted for compliance with the upgraded data capture requirements. 8. GIS System Asset Display Aerial photography updated on a yearly basis. 9. Identify Shire Assets Building relationships with other departments/units/contractors in order to receive notification. Training of collectors/auditors to produce valid/useful data. Asset catalogues - more of. Page 84 of 86

10. Reconciliation of Capital works Accounts for Contracts Provision of "As Constructed" plans by Design. 11. Reporting Improve confidence in data integrity by collecting reliable attribute, spatial and condition data on all material assets (e.g. improved building component data according to criticality, all fencing, and clarification of responsibility for foreshore assets). Develop consistent definitions of asset types through expansion of the asset catalogue. Further develop "base" queries in KMS for basic/common enquiries. Road data reporting structures were dispensed with at the time of SLR contract commencement. No opportunity has been provided to re-establish these structures (which were the result of 12+ years of customisation). The opportunity to re-establish these would increase efficiencies and accuracy significantly. Re-establishment would require analysis of existing spreadsheet data, updating of road segment data (splitting assets, segments etc.), creating additional required fields in existing database tables, populating the new fields, creating and testing macro s for report production, and availability of suitable road, reporting and database knowledgeable resources to achieve these tasks, Auditing of contracts (SIMS) for updated data to be submitted on regular basis along with condition data for assets. 12. Review of Useful Life of Assets Develop specifications for condition/remaining life data provision for inclusion in SIMS2 contracts. This will enable more reliable useful life determination, and hence more accurate financial depreciation and renewal gap analysis. 13. Validation of Assets Utilising 3D street level imagery, digital road pavement condition data imagery, an updated version of Google Street View, or similar. Volunteer input could be achieved through our updated MAPS Program - local knowledge. Look at alternative networks to gather aerial data outside of Google Street View - compare with other Councils - look at cost for software. Tapping into groups (i.e. friends groups, historical groups, walker groups) to supply knowledge, Page 85 of 86

6 REFERENCES 6.1 LEGISLATION, REGULATIONS AND CODES OF PRACTICE Parliament of Victoria, Local Government Act 1989. Parliament of Victoria, Road Management Act 2004. Road Management (General) Regulations 2005 (S.R No. 63/2005) Code of Practice for Road Management Plans Code of Practice for Operational Responsibility for Public Roads Australian Accounting Standards Board, AASB 116 Property, Plant and Equipment. 6.2 MPSC DOCUMENTS Mornington Peninsula Shire Council, 2009, Shaping Our Future One Step at a Time, The Mornington Peninsula Shire Strategic Plan, 2009 2013. Mornington Peninsula Shire Council, 2010, Sustainable Infrastructure Asset Management Policy, adopted by Council 12 July 2010. Mornington Peninsula Shire Council, 2008, Register of Public Roads Policy, adopted by Council 25 March 2008. MPSC Asset Management System, Doc ID A1942342. 6.3 PUBLICATIONS IPWEA, 2011, International Infrastructure Management Manual, NAMS NZ and Institute of Public Works Engineering Australia, Sydney. IPWEA, 2011, Australian Infrastructure Financial Management Guidelines Version 1.2, 2011, Institute of Public Works Engineering Australia, Sydney. IPWEA, 27 Nov. 2007, NAMS.Plus, A Guided Pathway to Sustainable Asset Management, Institute of Public Works Engineering Australia, Sydney. Page 86 of 86