BUILDINGS ASSET MANAGEMENT PLAN - GMC1: Index · 4.2 Changes in Technology ... 1. Prepare documentation and a presentation that outlines Council’s Buildings Asset Management Plan

Brewer Centre, Marulan

BUILDINGS

ASSET MANAGEMENT PLAN

Version 2.5.5

Aquatic Centre

Visitors Information Centre Civic Centre

McDermott Centre

Document Control

Document ID: GMC Buildings AMP

Rev No Date Revision Details Typist Author Verifier Approver

1.00 10/6/2010 Draft Consult Consult AE ML&PS

1.50 22/6/2010 Separate Buildings AMP Consult Consult AE ML&PS

1.55 29/7/2010 Building AMP Consult BMS AE ML&PS

2.0 16/8/2010 Building AMP – enhanced Consult BMS AE ML&PS

2.5 19/8/2010 Building AMP – assets sorted + financials Consult BMS AE ML&PS

2.51 8/9/2010 Building AMP – ML&PS comments + Finances Consult BMS AE ML&PS

2.52 15//9/2010 Building AMP – Final Consult BMS AE ML&PS

2.55 22/9/2010 Building AMP – Final + minor changes Consult BMS AE ML&PS

2.56 30/06/2012 Update for 10 year forward works program AE BMS AE ML&PS

`1 TABLE OF CONTENTS

Template based on IPWEA NAMSPLUS Program Consult - MatrixIP - Darron Passlow AE - Asset Engineer – Joan Saunders BMS - Building Maintenance Supervisor - David Long ML&PS - Manager Land & Property Services – Ken Wheeldon DES - Director of Engineering Services – Terry Cooper

TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ....................................................................................................................................... 1

Current Situation .................................................................................................................................................... 1 Assets & Valuations ............................................................................................................................................... 1 Sustainability Considerations ................................................................................................................................. 1 Future Plans .......................................................................................................................................................... 1 Integrated Planning & Reporting ............................................................................................................................ 2 Measuring Performance ......................................................................................................................................... 2 Community Engagement........................................................................................................................................ 2 An Integrated Plan ................................................................................................................................................. 3

2. INTRODUCTION ................................................................................................................................................... 4 2.1 Background .................................................................................................................................................. 4 2.3 Plan Framework ........................................................................................................................................... 6 2.4 Core and Advanced Asset Management ....................................................................................................... 6 2.5 Integrated Planning & Reporting (IP&R)........................................................................................................ 6

3. LEVELS OF SERVICE ........................................................................................................................................... 8 3.1 Customer Research and Expectations .......................................................................................................... 8 3.2 Legislative Requirements.............................................................................................................................. 8 3.3 Current Levels of Service.............................................................................................................................. 9 3.4 Desired Levels of Service ........................................................................................................................... 10

4. FUTURE DEMAND .............................................................................................................................................. 11 4.1 Demand Forecast ....................................................................................................................................... 11 4.2 Changes in Technology .............................................................................................................................. 11 4.3 Demand Management Plan ........................................................................................................................ 11 4.4 New Assets from Growth ............................................................................................................................ 11

5. LIFECYCLE MANAGEMENT PLAN ..................................................................................................................... 12 5.1 Background Data ........................................................................................................................................ 12 5.1.1 Physical Parameters ........................................................................................................................ 12 5.1.2 Asset capacity and performance ...................................................................................................... 14 5.1.3 Asset Condition Rating ..................................................................................................................... 14 5.1.4 Asset Valuations .............................................................................................................................. 14 5.3 Routine Maintenance Plan .......................................................................................................................... 15 5.3.1 Maintenance plan ............................................................................................................................. 15 5.3.2 Standards and specifications ............................................................................................................ 16 5.3.3 Summary of future costs .................................................................................................................. 16 5.4 Renewal/Replacement Plan ........................................................................................................................ 17 5.4.1 Renewal plan ................................................................................................................................... 17 5.4.2 Renewal standards .......................................................................................................................... 17 5.4.3 Summary of future costs .................................................................................................................. 18 5.5 Creation/Acquisition/Upgrade Plan ............................................................................................................. 18 5.5.1 Selection criteria .............................................................................................................................. 18 5.5.2 Standards and specifications ............................................................................................................ 18 5.5.3 Summary of future costs .................................................................................................................. 18 5.6 Disposal Plan ............................................................................................................................................. 18

6. FINANCIAL SUMMARY ....................................................................................................................................... 19 6.1 Financial Statements and Projections ......................................................................................................... 19 6.1.1 Life Cycle Costs ............................................................................................................................... 20 6.2 Funding Strategy ........................................................................................................................................ 20 6.3 Valuation Forecasts .................................................................................................................................... 21 6.4 Key Assumptions made in Financial Forecasts ........................................................................................... 21

7. ASSET MANAGEMENT PRACTICES ................................................................................................................. 22 7.1 Accounting/Financial Systems .................................................................................................................... 22 7.2 Asset Management Systems ...................................................................................................................... 22 7.3 Information Flow Requirements and Processes .......................................................................................... 22 7.4 Standards and Guidelines ........................................................................................................................... 23 7.5 Staffing for Asset Management Functions ................................................................................................... 23

8. PLAN IMPROVEMENT AND MONITORING ........................................................................................................ 24 8.1 Performance Measures .............................................................................................................................. 24 8.2 Improvement Plan ...................................................................................................................................... 24 8.3 Monitoring and Review Procedures ............................................................................................................ 24

9. RISK MANAGEMENT PLAN ................................................................................................................................ 25 9.1 Background Data ........................................................................................................................................ 25 9.1.1 Risk Management Considerations .................................................................................................... 25 9.1.2 Asset Condition and Risk Profile ...................................................................................................... 25 9.2 Risk Management Plan ............................................................................................................................... 25 9.3 Standards and specifications ...................................................................................................................... 25 9.4 Critical Building Assets and Risk Analysis ................................................................................................... 25

10. REFERENCES .................................................................................................................................................... 27 INDEX OF APPENDICES ................................................................................................................................................ 28 Appendix A Projected 10 year Capital Works Program ..................................................................................... 29 Appendix B Unfunded Works ............................................................................................................................ 36 Appendix C List of Buildings covered by this plan ............................................................................................. 38 Glossary .......................................................................................................................................................................... 39

Goulburn Mulwaree Council – BUILDINGS ASSET MANAGEMENT PLAN-V 2.5.5

GOULBURN MULWAREE COUNCIL – BUILDINGS ASSET MANAGEMENT PLAN 1

1. EXECUTIVE SUMMARY Current Situation Goulburn Mulwaree Council currently provides significant services through its buildings and property infrastructure, primarily for Goulburn and Marulan in the Council area.

Assets & Valuations Council is custodian for approximately $ 49.6M (June 2009 valuation) of Building assets and is responsible for the maintenance and provision of sustainable services across these assets. These assets are summarised as;

Goulburn & Marulan

Buildings

• Commercial Buildings, including Aquatic Centre Buildings and Infrastructure

• Community Buildings

Asset Condition

The assets in this asset class are generally in fair or good condition. Several key buildings in Goulburn do require rehabilitation which is planned to be carried out over the 2011 to 2015 timeframe.

Sustainability Considerations

The following terminology is used in this document.

AAAC (Annual Average Asset Consumption) = Fair Value/Remaining Life or Current Replacement Cost/Economic Life ALCC (Annualised Life Cycle Cost) =

AAAC + Actual Maintenance cost Sustainability Index (SI) =

(Actual Maintenance +Renewal cost)/ALCC This is the lifecycle expenditure / lifecycle cost

In 2010, the current replacement cost was $ 52.1M, the total lifecycle cost of the existing Building Assets is $2.51M per annum. The current average expenditure on maintenance and renewal for 2010 (to June 2010) was $ 0.82M delivering a sustainability index of 0.33. This is based on an AAAC = $ 1.86M and a Maintenance expenditure of $ 0.644M.

Future Plans

Council plans to operate and maintain the property assets to ensure these assets are maintained at a functional standard as set out in this Asset Management Plan (AMP) to achieve the following strategic objectives:

• Ensure the property assets are maintained at a safe and agreed functional standard. • Manage the utilisation of Council’s property assets to maximise the provision of the Council’s

community service obligations.

Council intends to develop asset management (funding) strategies and plans (along with Service Level Agreements) for Council assets. These will identify the funding requirements necessary to maintain the service levels and priorities as part of an integrated approach to service delivery and achieving the best use of Council assets.



Integrated Planning & Reporting Council will progressively move from the current “core” asset management plan to a more “advanced” asset management plan. This move will entail some key improvements to the AMP planning process and considerations, including;

• Close alignment between Community Strategic Plan (the Community Engagement Plan - CEP) and this Asset Management Plan

• Long term, “whole of life” financial plans will include cost/risk/performance optimisation

• Future demand considerations

As well as:

• Levels of Service (LOS) and associated expenditure, across all assets will be determined and agreed with the community as part of the Community Engagement Plan(CEP)

• The community engagement plan (as part of the Community Strategic Plan) will be put in place and executed to ensure the community is involved in determining service levels.

• IT systems will be integrated and used for all AM activities, including managing the Asset Management Improvement process and the maintenance and capital works programs.

Measuring Performance

Quality Building assets will be maintained in a good condition so that they can meet required service levels. Defects found or reported will be repaired as part of this overall approach to asset management. However, guidelines will be developed that define expected/agreed Levels of Service and plans will be put in place to specify projects and expenditure ensuring these levels are maintained.

Function The intention is to maintain an appropriate Building Assets in partnership with other levels of government and stakeholders to provide safe, reliable and acceptable buildings for community use. The building assets will be maintained at a safe operational level to assure safety of the community and staff working in these buildings. The following key functional objectives are to be met:

• Provide building assets to meet the requirements of the community for safe and reliable access.

• Provide buildings that have adequate capacity to provide services to the community and allow for growth.

The main functional consequence of this buildings asset management plan is to optimise the outcomes (the value) for the council budget, while managing public risk (liability) with infrastructure designed, operated and maintained to minimize life cycle costs.

Safety Regular inspection of building assets should be carried out to identify and place priorities on the repair of defects in accordance with our maintenance schedule. This is to ensure that building assets are serviceable and safe. Critical assets will be the focus of the risk analysis and risk management activities covered in this plan (Section 9.0).

Community Engagement

The current (core) asset management plan will assume past levels of service are appropriate for the community. This will allow a concerted effort to be carried out to identify and quantify current LOS and to relate this to the costs associated with achieving this LOS. Subsequent plans (advanced) will need to feed off a comprehensive community engagement process that will determine the community required service levels and what these LOS will cost the community.



The proposed engagement process is ideally to:

1. Prepare documentation and a presentation that outlines Council’s Buildings Asset Management Plan (AMP) setting out the impact this plan will have on the community.

2. Prepare and present the current levels of service (re Building services) delivered to the community.

3. Determined and advise the community on the costs to deliver the current LOS. 4. Present the community with alternative, affordable scenarios for building asset management; 5. Revise this AMP taking into account the community input on LOS and cost expectations. 6. Provide continuous feedback on plans to the community, through a community consultation

process.

An Integrated Plan

This asset management plan link to the Community Strategic Plan (which will provide the service levels required by the community) and to the Workforce Planning and Long Term Financial Planning processes. This plan will inform these latter plans on the staff and the funding required (in the longer term) to meet the asset management obligations (described in this plan).



2. INTRODUCTION

2.1 Background

This AMP will demonstrate Council’s ability to;

1. Be proactive in asset management

2. Define the annual budget (based on life cycle costs) for asset maintenance, renewal, upgrading and expansion to ensure the agreed levels of service are met in the future.

3. Look to improve the efficiency (cost) and the effectiveness of service provision

The AMP is to be read in conjunction with the following associated planning documents:

1. Asset Management Strategy

2. Community Strategic Plan

3. Long Term Financial Plan

This Building Asset Management Plan covers the following infrastructure assets:

Table 2.1 Property Assets category covered by this Plan

Asset category Dimension Replacement Value ($M)

FY2009

Replacement Value ($M) 2010 Extrapolated from the

2009 figures

Property - Buildings Appendix C $ 42.4M $ 44.6M

Aquatic Centre Complex 1 $ 7.2M $ 7.5M

Total Replacement Cost Property & Parks – based on FY2008 ( Valuation)

$ 49.6M $52.1M

In table 2.1, the 2010 figures come from increasing the 2009 figures by 5% per annum to reflect CPI. Refer Appendix C for list of key buildings and infrastructure included in this plan.

2.2 Goals and Objectives of Asset Management

Council’s charter is to provide cost effective, sustainable services to the community. A large proportion of these services are provided by infrastructure assets. Council has acquired infrastructure assets by purchase, by contract, construction by Council, and by transfer of assets constructed by developers and others to meet increased demand for services.

Council’s goal in managing infrastructure assets is to meet the required level of service in the most cost effective manner for the present and future community. The key elements of asset management:

• Taking a “whole of life” approach to expenditure on assets, • Developing a cost-effective and integrated management strategy, • Providing an agreed level of service and monitoring delivery of the service (with the

community), • Understanding and meeting the demands of growth through demand management and

infrastructure investment,



• Managing risks associated with asset failures, • Sustainable use of physical resources, • Consideration of Social and Environmental issues, • Continuous improvement in asset management practices.1

This asset management plan is prepared with Council’s vision, mission, goals and objectives as leading statements. The details of these drivers are specified in the GMC Community Strategic Plan.

Council’s vision, mission and objectives:

Council’s vision is:

“A sustainable vibrant community, protecting, enhancing and enjoying Goulburn Mulwaree’s rich social, environmental and economic heritage.”

Council’s mission is: “to serve the community”.

Relevant Council goals and objectives and how these are addressed in this AMP are:

Table 2.2 Council Goals and how these are addressed in this Plan

Goal Objective How Goal and Objectives are addressed in IAMP

A Strong Economy Council will be pro-active in the planning for changes and growth, and will continue to aim for the enhancement of the area’s infrastructure through strong advocacy, partnerships with government and private enterprise and direct provision of appropriate assets.

The focus of this asset management plan.

A Vibrant Community Council recognises the importance of continuing to improve the lifestyle options, care services and community support structures available to its residents. Council will also endeavour to facilitate the provision of a safe living environment and quality educational opportunities.

The focus of this asset management plan.

Sustainable Environment

Council is committed to balancing the community’s need to use and enjoy our natural resources with their protection, enhancement and renewal.

The council aims to operate in an environmentally sustainable manner.

Retained Heritage Council give high priority to the preservation of the rich heritage of the area for the built and natural environments, museum collections and history.

The goals will be achieved by minimising the impacts on the built environment from building operations and activities.

Leading Organisation Council sees itself as a leading organisation in which its citizens, visitors and other stakeholders will have pride. This will be reflected in how it represents and includes its community, governs and performs its statutory roles. It will also have a strong commitment to measuring and evaluating its performance and reporting the results to its community.

This plan is designed to improve asset management of Council and provide feedback to the community and its success.

Quality Infrastructure A strong economic position and Council’s ability to become a leader in the GM Community will lead to quality Infrastructure being provided.

This plan will facilitate the effective management of infrastructure.

1 IIMM 2006 Sec 1.1.3, p 1.3



2.3 Plan Framework

Key elements of the plan are

• Levels of service – this plan will move to adopt specific levels of service that are required and can be afforded by the Community, as defined by the Community Engagement Strategy.

• Future demand – this will impact on future infrastructure requirements to maintain the delivery of future services.

• Life cycle management – Council will manage life cycle costs on its existing and future assets to provide the required services now and into the future.

• Financial details – the maintenance and capital expenditure that will be required to provide the required infrastructure to ensure sustainable service delivery now and in the future.

• Asset management practices and procedures that will ensure the above can be delivered efficiently and effectively.

• Monitoring – Key Performance Indicators (KPI) will be set up to monitor the AM process and ensure it is meeting Community expectations and Council’s objectives.

• An Asset Management Improvement Plan will drive the delivery of good asset management practice across “whole of council”.

2.4 Core and Advanced Asset Management

This asset management plan is prepared as a ‘core’ asset management plan in accordance with the International Infrastructure Management Manual. It is prepared to meet minimum legislative and organisational requirements for sustainable service delivery and long term financial planning and reporting. Core asset management is a ‘top down’ approach where analysis is applied at the ‘system’ or ‘network’ level.

Future revisions of this asset management plan will move towards ‘advanced’ asset management using a ‘bottom up’ approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels. This will only be possible when an Asset Management System is in place and appropriate (quality) data is included to reflect the exact details of assets (at the component level).

An Advanced Asset Management plan will also consider the following;

• Demand forecasts related to population growth (over 20-30 years)

• Specific Community Driven Levels of Service (from the Community Strategic Plan)

• Long term financial forecasts (covering infrastructure expenditure)

• Medium term work force planning (outcomes)

• Risk Management associated with “Critical” Assets

• Detailed expenditure on maintenance, renewal, upgrading and new assets determined at the “component” level and rolled up to a strategic long term financial plan.

2.5 Integrated Planning & Reporting (IP&R)

IP&R has been defined as a key platform under amendments to the Local Government Act (1993). It describes how, when and why councils will report on their business planning. There are several aspects to the IP&R, including;

• Community Strategic Plan, encompassing –

o Community Engagement Strategy (and Plan)



• Resource Plan, encompassing –

o Asset Management Planning

Asset Management Strategy

Asset Management Plan

o Workforce Management Planning

o Long Term Financial Planning

The important topic to consider as far as this plan is concerned is the “Asset Management Planning”.

Asset Management Planning entails having an Asset Management Strategy which must include;

• Asset Management Policy

• Identification of “critical assets”

• An ongoing Improvement Plan (continuous improvement of the asset management process)

This Asset Management Plan must include the “essential elements” from the IP&R legislation;

• Cover all assets in the specific Asset Class

• Identify service levels and develop asset service level agreements (to match community expectations)

• Provide long term projections for expenditure on maintenance, rehabilitation and replacement.

This plan encompasses these essential elements that are defined in the new, amended Local Government Act.



3. LEVELS OF SERVICE

3.1 Customer Research and Expectations

It is important that community expectations be taken into account in the longer term, and a community consultation process will be set up to ensure this is understood for future updates of the asset management plan. This will be covered in the Community Strategic Plan (with the Community Engagement Strategy).

The overall performance of Councils in NSW is provided in the annual NSW Performance Monitoring Report. This provides all the indicators for Councils in NSW. This allows Council to benchmark our performance against similar sized Councils throughout the state.

Council also receives feedback from the community through:

• Focus Groups – Community consultations (on an as required basis)

• Customer Request System – customer requests and reactive asset complaints

• Biennial Community Survey - Community attitude surveys undertaken on a 2 yearly cycle

In February 2008, the second 2 yearly customer survey was performed. The survey is used to determine customer satisfaction in the delivery of key services and facilities. The aim is to get an understanding of the perceptions and needs of the local community in regard to customer service and the provision of Council functions and services.

Respondents were required to rate the importance of each of the 25 council services on a scale of 1-5 with 1 being ‘not important’ and 5 being ‘very important.

3.2 Legislative Requirements

Council has to meet many legislative requirements including Australian and State legislation and State regulations. These include:

Table 3.2 Legislative Requirements

Legislation Requirement

Local Government Act 1993 and Local Government Regulation 1999

This Act and Regulation sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by asset management plans for sustainable service delivery.

Protection of the Environment Operations (POEO) Act 1997 and POEO Regulation 2000

That Council comply with Environment Protection Licences issued by Environment Protection Authority to wilfully or negligently harming the environment.

Public Health Act 1991 That Council comply with all aspects of the Act.

OH & S Act 2000 and OH & S Regulation 2001

Council must provide safe conditions of workplace for all its employees, customers, contractors and volunteers.

Practice Note 15 Dept Health Guidelines for the Safe Operation of Pools

Legislation to ensure pools are operated safely and efficiently.



3.3 Current Levels of Service

Council has defined service levels in two terms;

• Community Levels of Service relate to how the community receives the service in terms of safety, quality, quantity, reliability, responsiveness, cost/efficiency and legislative compliance.

• Supporting the community service levels are operational or technical measures of performance developed to ensure that the minimum community levels of service are met. These community level of service measures relate to:

Service Criteria Technical measures may relate to Quality Condition of Buildings Quantity Number of Community Buildings & Services Availability Access to Buildings Safety Number of injury accidents across this

asset category The community measures levels of service differently to the way Council measures the same levels of service. Council views these levels of service differently because it needs more quantitative measures to assess its performance in providing services.

Council’s current service levels are detailed in Tables 3.3a – 3.3b.

Table 3.3a Current Service Levels – GMC Buildings Assets

Key Performance Measure

Level of Service Performance Measure Process

Performance Target Current Performance

COMMUNITY LEVELS OF SERVICE Quality Provide clean accessible

facilities with suitable staff (if required)

Customer service requests. Complaints received about public conveniences.

< Three per quarter Achieved performance targets

Function Facilities fit for purpose All required equipment is provided

Respond to building maintenance requests within agreed timeframes

100% per quarter Achieved performance targets

Safety Provide safe suitable facilities, free from hazards

Number of injury accidents

Zero reported accidents No reported injuries

TECHNICAL LEVELS OF SERVICE

Condition Building functionality is not compromised by condition. Carry out routine maintenance as per service level agreement

Annual Building condition assessment

Building condition rating at appropriate level = Good

Condition rating = fair to good across all key assets

Accessibility Facilities are always available (as advertised)

Duration and frequency of no access

100% access 100% access

Cost Effectiveness

Provide services in cost-effective manner Costs are recovered where applicable from tennants

Maintenance cost $/pa Budget compliance

Target incomes are reached. Expenses within budget

Achieved within budget

Safety Ensure facilities are safe. Monthly defect, Fire extinguishers – 6 All legislative requirements






Provide clear safety signage and equipment

condition and safety survey/audits conducted by Safety Committee

monthly, tested annually (Certified) . Fire Panel – tested monthly. Electrical tag testing as required. Air conditioning tested monthly.

met.

Defects repaired when reported

Table 3.3b Current Service Levels – GMC Pool Assets




COMMUNITY LEVELS OF SERVICE Quality Water quality & clean

facilities Customer service requests Ticket sales

0 complaints 100,000 per season

2 per month 75,000 tickets

Function Ensure that pools meets user requirements for availability and use

Customer service requests relating to use & availability

Indoor open 48 weeks pa. Outdoor open Oct – March

No complaints

Week days 6am – 7:45pm. Weekends 9 – 5:45pm

No complaints

Safety Provide safe/suitable assets

Number of injury accidents

Zero 0 reported accidents

TECHNICAL LEVELS OF SERVICE Condition Water within limits, clean

facilities Water testing to Reg Requirement

Water within limits Zero litter, graffiti

100% compliance

Accessibility Provide all weather access to pools in season

Duration and frequency of no access

100% compliance 100% comply

Cost effectiveness

Provide services in cost-effective manner

Maintenance cost $/pa

$1,115,479 pa $718,236 pa

Safety Provide safe environment Reported accidents

Zero 5 pa

3.4 Desired Levels of Service

At present, indications of desired levels of service are obtained from various sources including the Customer Satisfaction survey, residents’ feedback to Councillors and staff, service requests and correspondence. Council needs to quantify desired levels of service. Linking the service levels and the cost of service delivery is an essential component of strategic asset management. As part of the Community Engagement process, the desired services levels need to be understood. The community also needs to be informed of the cost to delivery of the desired service levels.

Level of Service is an important driver for the Asset Management Plans of Council. This AMP needs to correlate the levels of service (gathered as part of the community consultation process. This plan also needs to correlate the physical condition attributes of assets to the costs to bring the assets to a different level of condition (e.g. to provide a different level of service to the community).

Once these correlations are in place, Council will have the relationship between levels of service/condition of assets/cost to deliver required condition. Council will then be able to predict what costs (expenditure) in the future will be required to deliver specific levels of service from infrastructure assets.



4. FUTURE DEMAND

4.1 Demand Forecast

Factors affecting demand include population change, changes in demographics, seasonal factors, vehicle ownership, consumer preferences and expectations, economic factors, agricultural practices, environmental awareness and possibly climate change.

Demand factor trends and impacts on service delivery are summarised in Table 4.1.

Future population growth projection is a key element of the strategic plan. Population projections for the main centres and the whole shire are as follows:

Table 4.1 Population Projections

The population projections (Growth Target Forecast) for the Goulburn Mulwaree region are tabulated below:

Catchment Predicted Growth in Population*

2006 2011 2016 2021 2026 2031 2036

Goulburn Marulan 26,588 28,588 30,588 32,588 34,588 36,588 38,588

* Note 1 – This data is from Goulburn Mulwaree Strategy 2020.

4.2 Changes in Technology

Technology changes are forecast to have little effect on the delivery of services covered by this plan. However technology will be introduced to drive the AMP process and to ensure efficiency and effectiveness of the AM processes and practices. Any improvements in technology in this area will improve the Asset Management Planning process (and hence the effectiveness of this plan).

4.3 Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand. Demand management practices include non-asset solutions, insuring against risks and managing failures.

Demand management will also include Asset Disposal Management (as part of future plans).

Opportunities for demand management (including Disposal Management) will be developed in future revisions of this asset management plan.

4.4 New Assets from Growth

The new assets required to meet growth will be acquired from both new developments and from construction works by Council.

Acquiring these new assets will commit council to fund ongoing operations and maintenance costs as well as capital renewal costs for the assets over the period that the assets are required. These future costs have not been identified in this AMP. However, this item should be included in future revisions of this asset management plan as it will affect forecasts of future operating and maintenance costs.



5. LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how Council plans to manage and operate the assets at the agreed levels of service (defined in section 3) while optimising life cycle costs.

5.1 Background Data

5.1.1 Physical Parameters

The key assets initially covered by this infrastructure and asset management plan are shown below.

Asset Category Asset Sub- Category

Buildings Commercial Buildings

Community Buildings

Aquatic Centre Aquatic Centres

Some of the current issues are:-

The investment into building a considerable portion of Council’s assets occurred between 40 - 60 years ago. Consequently many of these assets are now requiring increased levels of maintenance and/or refurbishment (renewal).

There is an increase in the expectation of the community in relation to the level of service provided by Council’s assets. This change in expectation, coupled with a generally more litigious society is causing a significant increase in public liability risk. It is anticipated that this trend will continue.

There is a definite need to ensure that the community’s expectations are matched to their ability to pay for any increased level of service. Refer to Section 3.4 which suggests that there needs to be a documented relationship between increased level of service and increased expenditure (cost to the community).

Asset age and remaining life become very important considerations in calculating the “whole of life” (Life Cycle) costs related to an asset. A key consideration in Life Cycle costing is the Average Annual Asset Consumption (‘AAAC’).

The following table provides the estimated economic life for the Building and Aquatic Centre assets.

Table 5.1.1 Average Age and Remaining Life Profile

Asset category Average Economic life

Average Asset-Age

Average Remaining life

Goulburn & Marulan

Property - Buildings 44 23 21

Aquatic Centre 39 18 21

Note 1: Remaining life = Economic Life - Average Age



Note 2: The average value across all assets (in a particular asset category like pools) does not necessarily highlight the fact that individual assets could be well past their renewal date.

As an example, the outdoor Olympic pool is well past its life expectancy (49) years and requires major renewal work to be carried out.

Table 5.1.1 –Property – Estimated Economic Life, Component Values (2010)

Asset Class Asset Category Facility Economic

Life (D)

Component Replacement

Value (F) - $*1000

AAAC = (F/D) - $*1000

Property Buildings $ 52.06M $ 1,860K

Community

Buildings

Community Halls, Pre-schools/Long Day

Care, Senior Citizens Halls, Community

Centres, Youth Centres, Halls 40

Commercial

Buildings

Civic Centre, Library, Art Gallery, Tourist

Centre, RFS, Depots, Houses 40

Other Assets

included in this plan Aquatic Centre

Buildings (Kiosk, sheds, access control) 40

Swimming Pools

Infrastructure 25

Plant Equipment – Cleaners, Filtration,

Heaters 10

Refer to Appendix C for a list of key buildings and infrastructure covered by this plan.

The age distribution of Council’s built assets (buildings, playgrounds, structures etc) needs to be determined and plotted so that replacement strategies and expenditures can be determined (and put in place). This will be done after new valuations and condition assessments are carried out.

It is currently planned to have fair value and condition assessments carried out (including remaining life calculations) on all built infrastructure as part of statutory requirements (under AASB 116) before end June 2008.



5.1.2 Asset capacity and performance

Council’s services are generally provided to meet design standards or statutory requirements where these are specified.

Locations of deficiencies in service performance will be identified, through an inspection programme or customer complaints and will be included in future upgrade programmes. An example of Service deficiencies is included in Table 5.1.2.

Table 5.1.2 Example of Service Performance Deficiencies – Buildings

Asset Service Deficiency

Commercial Buildings Cleaning

Other Buildings Maintenance deficiencies

Aquatic Centre Availability. Decaying infrastructure requires emergency shut down as necessary

5.1.3 Asset Condition Rating

Table 5.1.3 Condition Rating by Asset Category (based on age)

Condition will be measured using a 1 – 5 rating system as shown in the table below is based on the average age of the asset categories.

A condition profile used to categorises building assets and other Aquatic Centre infrastructure assets (based on age) is shown below.

Condition Rating

Remaining Useful Life (RUL) Description

1 80-100% Excellent 2 60-80% Good 3 40-60% Fair 4 20-40% Poor 5 0-20% Very Poor

5.1.4 Asset Valuations

The assets covered by this plan were valued in 2009. The 2010 figures below used in this AMP are based on these figures increased by CPI annually. The following definitions are used in Table 5.1.4.

AAAC (Annual Average Asset Consumption) = (Fair Value)/(Remaining Life) or (Current Replacement Cost) / (Economic Life) ALCC (Annualised Life Cycle Cost) = AAAC + Actual Maintenance cost Sustainability Index (SI) = (Actual Maintenance +Renewal cost)/ALCC

Asset category Condition Rating

Goulburn

Property – Buildings & Aquatic Centre 3



Table 5.1.4 Asset Values and Sustainability Index (Financial Year 2009)

Buildings Asset Sub Category

Current Replacement Cost

AAAC

Expenditure (Maintenance + Renewal) (1)

ALCC (2)

Renewal Gap

Sustainability Index SI = (1) / (2) Average

FY2009 Breakdown

Actual Renewal +

Maintenance

Maintenance + AAAC

Goulburn & Marulan

Total, Buildings Aquatic Centre $ 49,600,000 $ 1,771,000 $ 789,000

$ 2,415,000

-$ 1,626,000 0.32

Buildings $ 42,400,000 $ 1,591,000 $ 494,000 $ 1,940,000

-$ 1,446,000 0.25

Aquatic Centre $ 7,200,000 $ 180,000 $ 295,000 $ 475,000 -$ 180,000 0.62

For Year to June 2009

Based on current replacement cost (2009) - $ 49.6M

Annual Depreciation Expense(AAAC ) - $ 1,771,000

ALCC = AAAC + Maintenance - $ 2,415,000 2008/2009 Maintenance + Renewal- $ 789,000

Life Cycle Sustainability Index (SI) FY 2009 – 0.32

Note: The overall sustainability index is calculated here for the Buildings and Aquatic Centre environment. This includes the separate asset categories (across Buildings, Aquatic Centre). A Sustainability Index of less than 0.8 indicates that the asset category in question needs some special attention in future years to ensure its longevity (of service delivery to the community).

5.2 Risk Management

Risk Management is discussed in detail in Section 9.0.

5.3 Routine Maintenance Plan

Routine maintenance is the regular on-going work that is performed to keep assets operating. It includes planned, preventative maintenance and reactive maintenance. Reactive maintenance will generally be more costly as it involves work where the asset has failed and needs immediate repair. The aim is to have a proactive maintenance regime where planned (scheduled) maintenance is preferable to the more costly reactive unscheduled) maintenance. The asset management plan will track unscheduled maintenance look to improve the ratio of planned to reactive maintenance for increased efficiency.

5.3.1 Maintenance plan

Maintenance includes unscheduled (reactive) and planned and cyclic (scheduled) maintenance activities. Reactive maintenance is unplanned repair work carried out in response to service requests and management/supervisory directions. This is generally the most expensive and often diverts resources from planned work.



Planned maintenance is repair work that is identified and managed through a maintenance management system (MMS), part of the asset management system (AMS). MMS activities include inspection, assessing the condition against failure/breakdown experience, prioritising, scheduling, actioning the work and reporting, develop a maintenance history and improve maintenance and service delivery performance. The MMS provides the ability to track maintenance performance (KPI) and to provide future expectations on maintenance requirements (by analysing history of asset performance).

It is targeted to have planned maintenance work to be 80% of total maintenance expenditure.

Maintenance expenditure levels will affect current and future service levels. This needs to be determined systematically to ensure that maximum advantage is taken of current expenditure levels. More efficient maintenance practices (as described above could be part of the solution). Future revision of this infrastructure and asset management plan will include linking required maintenance expenditures (after applying best practice) with incremental costs required to meet required service levels.

Assessment and prioritisation of reactive maintenance is currently undertaken by Council staff using experience and judgement. In future there is a need to take a more systematic approach to determining the maintenance regime that suits the various asset classes.

5.3.2 Standards and specifications

Parks and Property maintenance work is in carried out in accordance with a number of key Standards and Specifications, including;

o Department of Health standards for pools

o Standards for Public Buildings (OH&S Standards)

o Playground specifications, etc

5.3.3 Summary of future costs

Future maintenance costs are forecast to trend in line with inflation, while there is a realistic increased expenditure on Renewal and Upgrading that will allow Council to progressively move to a position of “sustainability” over the next 10 years (refer Fig 4). Currently no allowance is made for increase in levels of service over the planning period. (This is a “Core” AMP).

Future plans will involve “Advanced” AMP criteria and this will involve understanding and delivering appropriate levels of service to meet the Community’s expectations and the Community’s willingness to pay (for this level of service).

Fig 3 Projected 10 Year Renewal/Maintenance Costs Property assets ($*Million)

Deferred maintenance, i.e. assets identified for maintenance where funding is not available for maintenance, needs close analysis including risk assessment (using risk rating) to determine if particular maintenance should be deferred and if so, when it should be performed. This will be covered in the Risk Management section of this plan (Section 9.0)



Maintenance is funded from Council’s operating budget and grants where applicable. The overall funding needs to take account of life cycle costs of assets.

Fig 4 Sustainability Index

5.4 Renewal/Replacement Plan

Renewal expenditure is major work which does not increase the asset’s design capacity but restores, rehabilitates or renews an existing asset to its original capacity. Work over and above restoring an asset to original capacity is upgrade/expansion/replacement or new works expenditure.

Renewal expenditure is the key to “sustainability” as sustainability (Ratio) measures how well assets are being “progressively” restored over the life of the assets.

5.4.1 Renewal plan

Assets requiring renewal are identified from estimates of remaining life obtained from the asset register. Candidate proposals are inspected to verify accuracy of remaining life estimate and to develop a preliminary renewal estimate. Verified proposals are ranked by priority (based on criticality and risk rating – Section 9.0) and funds available for renewal are scheduled along with future works programmes. The priority ranking criteria is detailed below.

Table 5.4.1 Renewal Priority Ranking Criteria

(a) Risk Rating – Very High, High (refer section 9.0) (b) Risk Rating – Medium, Low (c) Condition Monitoring – Bad, Poor (d) Condition Monitoring – Good (e) Level of Service considerations – increase, maintain (f) Urban or rural location (g) Community Enhancement (h) Political

Renewal will be undertaken using ‘low-cost’ renewal methods where practical. The aim of ‘low-cost’ renewals is to restore the service potential or future economic benefits of the asset by renewing the assets at a cost less than replacement cost.

5.4.2 Renewal standards

Renewal work is carried out in accordance with the following Standards and Specifications.

o Property standards

o Council’s standards

o Relevant Government standards




Future costs will include expenditure on Maintenance, Renewal, Upgrading and Expansion (new assets). These will be part of the long term financial plan that will be developed in conjunction with this plan.

Deferred renewal, i.e. those assets identified for renewal and not scheduled for renewal in capital works programs are to be included in the risk assessment process in the risk management plan.

Renewals are to be funded from Council’s capital works program and grants where available. This is further discussed in Section 6.2.

5.5 Creation/Acquisition/Upgrade Plan

New works are those works that create a new asset that did not previously exist, or works which upgrade or improve an existing asset beyond its existing capacity. They may result from growth, social, environmental or political needs. Assets may also be acquired at no cost to the Council from land development. These assets from growth are discussed in Section 4.4.

5.5.1 Selection criteria

New assets and upgrade/expansion of existing assets are identified from various sources such as councillor or community requests, proposals identified by strategic plans or partnerships with other organisations. Candidate proposals are inspected to verify the need and to develop a preliminary renewal estimate. Verified proposals are ranked by priority and available funds and scheduled in future works programmes. The priority ranking criteria is detailed below.

Table 5.5.1 Upgrading Assets- Priority Ranking Criteria

(a) The level of usage (b) The positive effect on the community (c) The positive effect on the environment (d) To reduce recurrent maintenance costs

5.5.2 Standards and specifications


Future new/upgrade/expansion costs are not available and will be included in future revisions of this asset management plan. These costs will also be reflected into the long term financial plans

New assets and services are to be funded from Council’s capital works program and grants where available. This is further discussed in Section 6.2.

5.6 Disposal Plan

Disposal is any activity associated decommissioning an asset including sale, demolition or relocation. No assets have been identified for possible decommissioning and disposal in this asset management plan. However, asset disposal is a key part of good asset management practice.

Selection of assets for disposal is important but it is also very political (as community interests generally want assets retained). However, under-utilised or poorly utilised assets place a burden on Council management, work force and cash flow. Assets for disposal should be listed and cash flow projections should be included in future revisions of this asset management plan.



6. FINANCIAL SUMMARY This section contains the financial requirements resulting from all the information presented in the previous sections of this asset management plan. The financial projections will be improved as further information becomes available on desired levels of service and current and projected future asset performance.

6.1 Financial Statements and Projections

The financial projections are shown in Fig 5 for planned renewal and maintenance capital expenditure (renewal and upgrade/expansion/new assets). The planned maintenance and capital renewal expenditure is compared with the total expenditure which includes operations expenditure and other capital expenditure (for new or upgraded assets).

Fig 5 Planned 10 year Maintenance and Renewal versus Overall Expenditure ($*1,000)

The Total Expenditure on the above graph is shown to indicate the comparative levels of maintenance and renewal in relation to the whole of business costs (which includes operations and new capital works.



6.1.1 Life Cycle Costs

Life cycle costs (or whole of life costs) are the average annual costs that are required to sustain the service levels. Life cycle costs include maintenance and asset consumption (depreciation) expense.

This can be compared to life cycle expenditure to give an indicator of sustainability in service provision. Life cycle expenditure includes maintenance plus capital renewal expenditure. Life cycle expenditures will vary depending on the timing of asset renewals.

The Total Expenditure on the above graph is shown to indicate the comparative levels of maintenance and renewal in relation to the whole of business costs (which includes operations and new capital works.

6.2 Funding Strategy

Projected expenditure identified in Section 6.1 is to be funded from Council’s operating and capital budgets. The funding strategy will be determined in Council’s 10 year long term financial plan.

Understanding how to achieve the long term financial plan (strategy) will require more detailed review of the required service levels verses costs to provide these desired service levels. Adjustments to service levels (including disposal of assets or reduction of service levels) may be required to ensure long term sustainability of service levels to the community.

Funding sources for capital work are:

• Rates

• Subsidies

• Other revenue (Extension Contribution, Connection Charges, Developer Contributions)

• Loans (Loan Funds, Section 64 funds used)

Fig 6 Projected 10yrs Capital Funding ($*1000)



6.3 Valuation Forecasts

Overall asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Council and for assets constructed by land developers and others and donated to Council.

Carrying amount of the assets (depreciated replacement cost or Fair Value) will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets.

6.4 Key Assumptions made in Financial Forecasts

This section details the key assumptions made in presenting the information contained in this infrastructure and asset management plan and in preparing forecasts of required operating and capital expenditure and asset values, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this infrastructure and asset management plan are:

• Only the existing assets have been included in the financial forecast

• No allowance for assets from growth has been made

Accuracy of future financial forecasts may be improved in future revisions of this infrastructure and asset management plan by the following actions.

• Inclusion of assets from growth

• A further review of assets that are nearing the end of their useful life

• A more detailed breakdown of asset expenditure history and future projections for:

o Maintenance

o Renewal

o Upgrade

o Expansion

• New levels of service (agreed with the community via the Community Engagement Plan)



7. ASSET MANAGEMENT PRACTICES Council uses the Technology One Enterprise Suite business software solution across the organisation. It is based on an internet architecture that allows staff to quickly deploy any of its products which can stand alone or be integrated for fast access to users to improve efficiencies. The software provides a fully integrated solution with the same look and feel across the full product suite. Technology One products used include:

• Financials • Human resources and Payroll • Supply Chain • Property and rating • Works and Assets • Customer Relationship Management

Technology One enables complete integration with the Microsoft Office Suite, synchronise emails, import and export directly from Excel as well as merging data to Word. Works and Assets data can link to Exponare and Property and rating and Financials. The system is managed by Council’s Information Services Business Unit.

7.1 Accounting/Financial Systems

Council’s Financial System is Technology One Financials. The system is managed by the Finance Business Unit and reporting is compliant with the requirements of the Local Government Act 2003 and relevant Australian Accounting Standards.

7.2 Asset Management Systems

GMS has adopted Technology One Works and Assets as its Asset Management System. Implementation of this system is currently underway but not all the asset registers have been downloaded. Some of these registers are currently held in the browser fields of Mapinfo with the information accessible to the organisation through Exponare GIS viewer.

On completion of the implementation, the asset system will be fully integrated with spatial, financial, supply chain, property and rating and Customer Relationship management systems.

7.3 Information Flow Requirements and Processes

The key information flows into this asset management plan are:

• The asset register data on size, age, value, remaining life of the network; • Available data for current asset condition; • The unit rates for categories of work/material; • The required service levels; • Risk assessments and ’risk rating’ for all critical assets in this group; • Projections of various factors affecting future demand for services; • Correlations between maintenance and renewal; and • Data on new assets acquired by council.

The key information flows from this infrastructure and asset management plan are:

• High level expenditure for the development of the specific Works Program (short, medium & longer term);

• The history of works carried out and the costs of these activities – in the future (future years); • The expenditure, valuation and depreciation projections (annually); • The whole of life analysis; and • The long term strategic financial forecasts (for expenditures) – over 20 years.



This information will contribute to the Long Term Financial Plan, Corporate Strategic Plan, and Annual budget and will inform the business plan and budget .

7.4 Standards and Guidelines

The guidelines for this Asset Management Plan will be line with the state IP&R Requirements as specified in the new amended Local Government Act 1993, which is in the process of being implemented and managed by the Strategic Policy Business Unit.

7.5 Staffing for Asset Management Functions

It is important to get the staffing for the asset management functions correct, so that the required level of effort goes into the asset management process and its improvement.

There are a number of models for handling asset management within local government organisations.

Larger councils tend to place more resources in asset management than medium or smaller councils (this is often based on council revenue and available funds). However there is a logical way to approach asset management at any organisation (council). There are a few key positions and functions that are needed in an organisation if asset management (AM) is to be an ongoing corporate activity. AM is sophisticated enough to warrant having dedicated resources.

Asset management functions and responsibilities (in priority order) include;

1. AM Coordination – manage all AM strategic matters including long term plans and all AM activities.

2. AM System – systems management ensures up-to-date processes are being used and delivering required information to all staff

3. AM Data gathering & recording – Getting asset data into the AMS and maintaining the data quality and manage the GIS (Geographic Information System), its data and its important link to the AMS and the AM process.

4. AM condition monitoring function – condition assessment is carried out (generally in the field by appropriate staff) and reported to the asset manager. This information is recorded into the AMS as it will be used for planning & reporting.

This is the basic and generic functionality that will be required to ensure the longevity and continuous improvement of the Asset Management processes. These functions need to be carried out by the appropriate number of staff. Larger organisation will possibly have more resources available to cover each of these functions separately, where smaller organisations will need to have multi-skilling people who can cover a number of these functions (roles).

The appropriate resources need to be put in place to ensure the success of Asset Management in the organisation.



8. PLAN IMPROVEMENT AND MONITORING

8.1 Performance Measures

The effectiveness of the AMP can be measured in the following ways:

• The degree to which funding identified in this AMP is incorporated into the long term financial plan and Community Strategic Plan (CSP)

• The degree to which 1-5 year detailed works programs is included • Sustainability Index (longer term) • Action Request reporting

8.2 Improvement Plan

An asset management improvement program as per the table below will define major AMP steps.

Task No

Task Responsibility Process / Timeframe

1. Review current levels of service Building Maintenance Supervisor

Inform the CSP process of the current levels of service for determination of required levels from the community. Timing to be determined by Strategic Planning.

2. New Assets from Growth Asset Engineer Undertake after Long Term Plan has been finalised

3. Review Condition Assessments of Assets based on age

Asset Engineer and Building Maintenance Supervisor

Condition rating in this AMP must match Special Schedule 7 (Financial) Condition Assessment. 2009/10

4. Risk Management Plan Asset Engineer and Building Maintenance Supervisor

Incorporating risk management into this AMP. December 2010

5. Maintenance program – delivering levels of service

Building Maintenance Supervisor

Tie maintenance expenditures to changes in levels of service (CSP process). 2011/12

6. Projected 10 year Capital renewal/Upgrade

Building Maintenance Supervisor

Undertaken as part of next years budget process

7. Actual condition assessments based on inspection regime

Asset Engineer and Building Maintenance Supervisor

2011/12 condition rating related to capacity and service delivery

7. Revaluations Asset Engineer & Valuers

2011/12 (currently index for CPI in this AMP)

8.3 Monitoring and Review Procedures

This AMP will be reviewed as part of the annual budget preparation and amended as part of the financial decision process.

An annual report on asset (by asset class) condition is required as part of the new Integrated Planning & Reporting legislation.

This AMP will cover a 10 year forecast horizon and will be linked to the Corporate Strategic Plan.



9. RISK MANAGEMENT PLAN

9.1 Background Data

9.1.1 Risk Management Considerations

Because investment in some of Council’s Buildings occurred between 30 - 40 years ago, there is an increased level of maintenance and/or replacement required.

There is an increase in the expectation of the community in relation to the level of service provided by Council’s assets. This change in expectation, coupled with a generally more litigious society is causing a significant increase in public liability risk. It is anticipated that this trend will continue.

An assets condition based on its current age and its expected (economic) life become very important considerations in calculating the “whole of life” (Life Cycle) costs related to an asset, particularly when risk and risk alleviation need to be key considerations in the AMP process.

9.1.2 Asset Condition and Risk Profile

A key determinant of Risk profile for assets is Condition which is currently based on age. This needs to be improved. Continuing assessments of condition across all assets (via well thought out Inspection regimes) are essential.

9.2 Risk Management Plan

The risk assessment process will identify credible risks, the likelihood of the risk event occurring, the consequences should the event occur, develops a risk rating, evaluates the risk and develops a risk treatment plan for non-acceptable risks.

There is a need for more Risk Analysis across all asset classes and provision of a Risk Rating for all Asset classes. This Risk Rating can then be used to determine the priority that needs to be applied to assets when maintenance, renewal and replacement work is proposed.

Risk Rating will be held as part of the asset information (in the Asset Register) and used to determine the criticality and hence priority of works to be carried out as part of the asset works programmes.

9.3 Standards and specifications Buildings maintenance work is carried out in accordance with the following Standards and Specifications.

• Technical Guidelines (Industrial best practice)

• Operations & Maintenance manuals (for specific plant) provided by construction companies as part of the contract

• Manufacture specifications or operation manual

The level of service and the risk management component of the AMP must deliver the basic level of service required by standards and statutory requirements. Compliance with standards and legislation is a basic requirement for Asset Management and is related to the Level of Service and the Risk Profile of assets.

9.4 Critical Building Assets and Risk Analysis The critical assets in this Buildings AMP have been identified as;

1. Civic Centre (Goulburn) – including the Art Gallery & Library



2. 56 Clinton Street (Goulburn) – Department of Corrective Services

3. Visitor Information Centre

4. 38 Montague Street (Goulburn) – Mission Australia

5. McDermott Centre (Goulburn) – Auburn Street

Individual service level plans and risk management plans are to be developed in the future for these critical assets in the Local Government Area.



10. REFERENCES

1. GMC – Asset Management Strategy

2. Community Strategic Plan including the Community Engagement Strategy

3. Buildings Delivery Plan and Buildings Annual Budget

4. IPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public Works Engineering Australia, Sydney, www.ipwea.org.au

http://www.ipwea.org.au/�



INDEX OF APPENDICES

Appendix A Projected 10 year Capital Works Program

Appendix B Unfunded Works

Appendix C List of Buildings covered by this Plan

Glossary



Appendix A Projected 10 year Capital Works Program

Forward Capital Works Plan

Business Unit: Land & Property Services

Key Outcome Area: Building Maintenance

Project DCP Y/N Plan

Asset Replacement

Asset Creation

Proceeds - Disposal

Grants

DCP Reserves

Other Reserves New Loans Revenue

2012/13 Building Maintenance

Solar Panels Council Buildings N

90,000

90,000

Civic Centre Air Conditioning N

30,000

30,000

Civic Centre Electrical Upgrade N

20,000

20,000 Civic Centre/Art Gallery Energy Efficiency Upgrade

50,000

Chambers sound system/webcam technology

40,000

40,000

Replace Carpet in Civic Centre N

10,000

10,000

Roof Safety Access System - Civic Centre N

15,000

15,000

Security Fencing surrounding Civic Centre N

15,000

15,000 Landscaping Civ Centre - renovate gardens & lawns N 4,000

4,000

Upgrade Security Monitoring Civic Centre & Depots N

10,000

10,000

Library Reception Area N

30,000

30,000



Clinton St Air Conditioning Stage 2 N

110,000 110,000

-

Companion Animal Facility Security & Fencing

15,000

15,000

Montague St Floor Coverings N

15,000 15,000

-

Hetherington St Wks Depot Upgrade Stage 1C N

100,000

100,000

Upgrades of Switch Boards Stage 2 N

20,000

20,000

Building Maintenance - Furniture & Fittings

Furniture & Fittings Civic Centre N

30,000

30,000

Replacement Furniture Library N 5,000

5,000

Total 2012/13

609,000 - - - -

125,000 -

434,000

2013/14

Building Maintenance

-

Solar Panels Council Buildings N

90,000

90,000


20,000

20,000


20,000

20,000

Replace Carpet Civic Centre N

10,000

10,000

Upgrade Clinton St Air Conditioning Stage 3 N

150,000 150,000

-

Visitors Information Centre Painting N

10,000

10,000



Replace Art Gallery carpet with timber flooring N

40,000

40,000

-


-


30,000

30,000


5,000

-

Total 2013/14

375,000 - - - -

150,000 -

225,000

2014/15


Solar Panels Council buildings N

90,000

90,000

Solar Street Lights Civic Centre Carpark N

40,000

40,000

Library/Art Gallery Intergrated Access N

300,000

300,000

External Painting Civic Centre N

30,000

30,000

-


-


20,000

20,000


5,000

-

Total 2014/15

485,000 - - - - - -

485,000



2015/16


-

Civic Centre Disabled Access Compliance N

60,000

60,000

Clinton St (New Carpet) N

300,000 300,000

-


-


20,000

20,000


5,000

-

Total 2015/16

385,000 - - - -

300,000 -

85,000

2016/17


-


20,000

20,000


10,000

10,000

Visitors Information Centre Counter N

30,000

30,000


-


20,000

20,000 Replacement Furniture Library N 5,000



5,000

Total 2016/17

85,000 - - - - - -

85,000

2017/18


Mission Australia floor coverings N

30,000

30,000

Pidgeon control and external clean CC N

10,000

10,000


10,000

10,000



20,000

20,000


5,000

Total 2017/18

75,000 - - - - - -

75,000

2018/19


Bourke St Depot amenities N

15,000

15,000

Hetherington St Depot amenities N

10,000

10,000

Civic Centre Meeting Rooms Improvements 5,000

5,000 Landscaping Civ Centre - renovate gardens & lawns 5,000

5,000





20,000

20,000


5,000

Total 2018/19

60,000 - - - - - -

60,000

2019/20



20,000

20,000

Companion Animal Facility N

15,000

15,000

Camera Safety Upgrade VIC N 5,000

5,000



20,000

20,000


5,000

Total 2019/20

65,000 - - - - - -

65,000

2020/21


Dumb waiter (Civic Centre Basement) N

75,000

75,000

Building Maintenance - Furniture & Fittings Furniture & Fittings Civic Centre N



20,000 20,000


5,000

Total 2020/21

100,000 - - - - - -

100,000

2021/22



30,000

30,000


10,000

10,000



20,000

20,000


5,000

Total 2021/22

65,000 - - - - - -

65,000



Appendix B Unfunded Works

Projects not funded

Project

DCP Y/N Plan

Asset Replace

ment Asset

Creation Proceeds - Disposal

Grants

DCP Reserves

Other Reserves New Loans Revenue

Replace carpet Civic Centre N

10,000

10,000 Solar lights Civic Centre car park N 40,000 40,000

Glass doors Chambers CC N

12,500

12,500

Security fencing surrounding Civic Centre N

15,000

15,000

Roof Safety Access System - Civic Centre N

25,000

25,000

Meeting Room improvements N

5,000

5,000

Sale of Bourke Street Depot N 600,000

- 600,000

Upgrade of Marulan Public Hall stage 2 N

150,000

150,000

Upgrade of Marulan Public Hall stage 3 N

500,000

500,000 Security doors - Customer Service CC To secure area from staff side N

20,000

20,000

Security services upgrade CC (additional cameras) N 15,000 15,000

Glass doors Chambers CC N

12,500

12,500

Upgrade of Air Conditioning Clinton St Stage 4 N 150,000

150,000 Ballustrade rail replacement previously reported to Council N

17,000

17,000

Camera Safety Upgrade VIC N 5,500 5,500



Atrium- Art Gallery N

40,000

40,000

Upgrades of switch boards Stage 3

20,000

20,000

Upgrades of switch boards Stage 4

20,000

20,000

Additional water storage tank- CC N

5,000

5,000

Meeting Room improvements N

5,000

5,000

McDermott Centre renovations N

40,000

40,000

Dumb waiter to Basement CC N

75,000

75,000

Acid clean b/work CC recoat with anti graffiti coating

25,000

25,000

External painting Tourist information

5,000

5,000

External lighting Corrective Services Clinton St

20,000

20,000

Civic Centre Air conditioning improvements

50,000

50,000

Single gate in court yard to double

3,000

3,000

Air hand driers

4,000

4,000

Upgrade security Monitoring CC & Depots

10,000

10,000

Art Gallery/ Library Water cooled Heat Exchangers

20,000

20,000 Civic Centre Back up power for server rooms Generator

5,000

5,000

Pigeon control and external clean CC

5,000

5,000

Additions- CC - fill in the courtyard area N

500,000

500,000

1,707,000

15,000



Appendix C List of Buildings covered by this plan Key Buildings List

McDermont Centre Vistors Centre Lanigans Lane Depot Amenities Storage and Office Garage Building Wash Bay High Clearance Garage Building Swimming Pool Change Rooms and Kiosk Change Rooms and Kiosk - Site Works Chlorination/Pump House Club House Olympic Pool Infants Wading Pool with Awning Indoor Pool Complex Garbage Depot Office/amenities Vehicular Storage Shed Open Bay Vehicular Storage Shed Gravel Base Open Bay Shed Storage Shed Storage Shed Open Bay X 2 Bitumen Sealed Open Bay Storage Shed Weigh Bridge Office Cottage - Abandoned Band Hall Main Building Civic Centre Library Section Art Gallery Basement Council Chambers, Admin, Offices and Amenities Mount Street Preschool Main Building Garage/Storage Shed Play Equipment - Sun Sails X 2 Works Depot Administration Bldg Workshop Equipment Storage Garage Bldg, Store High Clearance Fire Services Summary Council Depot, Offices, RFS, RFS Buildings Other Buildings 28 Montague 56 Clinton Caravan Park 149 Hume Rural Fire Buildings Big Hill Rural Fire Shed

Key Buildings List

Bungonia Rural Fire Shed Goulburn Gundary Rural Fire Shed Hetherington Street Depot Fire Sheds

Mulwaree Shire- Training Facilities Marulan Rural Fire Shed Marulan South Fire Shed Parkesbourne Rural Fire Shed Parkesbourne Rural Fire Shed Tallong Rural Fire Shed Tarago Rural Fire Shed Towrang Rural Fire Shed 1 Towrang Rural Fire Shed 2



Glossary Asset class Grouping of assets of a similar nature for a similar use in an entity's operations (AASB 166.37). These assets are generally in a specific division.

Asset condition assessment The process of continuous or periodic inspection, assessment, measurement and interpretation of the resultant data to indicate the condition of a specific asset so as to determine the need for some preventative or remedial action.

Asset management The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner.

Assets Future economic benefits controlled by the entity as a result of past transactions or other past events (AAS27.12).

Property, plant and equipment including infrastructure and other assets (such as furniture and fittings) with benefits expected to last more than 12 month.

Average annual asset consumption (AAAC) The amount of a local government’s asset base consumed during a year. This may be calculated by dividing the Depreciable Amount (DA) by the Useful Life and totalled for every asset in an asset category OR by dividing the Fair Value (Depreciated Replacement Cost) by the Remaining Life and totalled for every asset in an asset category or class.

Annualised Life Cycle Cost (ALCC) This is the annual amount that needs to be put aside to cover asset consumption and asset maintenance. (ALCC = AAAC + Maintenance)

Capital expansion expenditure Expenditure that extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. It is discretional expenditure, which increases future operating, and maintenance costs, because it increases council’s asset base, but may be associated with additional revenue from the new user group, eg. extending a drainage or road network, the provision of an oval or park in a new suburb for new residents.

Capital expenditure Relatively large (material) expenditure, which has benefits, expected to last for more than 12 months. Capital expenditure includes renewal, expansion and upgrade. Where capital projects involve a combination of renewal, expansion and/or upgrade expenditures, the total project cost needs to be allocated accordingly.

Capital funding Funding to pay for capital expenditure.

Capital new expenditure Expenditure which creates a new asset providing a new service to the community that did not exist beforehand. As it increases service potential it may impact revenue and will increase future operating and maintenance expenditure.

Capital renewal expenditure Expenditure on an existing asset, which returns the service potential or the life of the asset up to that which it had originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time, eg. resurfacing or resheeting a material part of a road network, replacing a material section of a drainage network with pipes of the same capacity, resurfacing an oval. Where capital projects involve a combination of renewal, expansion and/or upgrade expenditures, the total project cost needs to be allocated accordingly.



Capital upgrade expenditure Expenditure, which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the council’s asset base, eg. widening the sealed area of an existing road, replacing drainage pipes with pipes of a greater capacity, enlarging a grandstand at a sporting facility. Where capital projects involve a combination of renewal, expansion and/or upgrade expenditures, the total project cost needs to be allocated accordingly.

Community Engagement This is the process of working with the Community (stakeholders) to determine their requirements (particularly for service levels). This process is described in the amended Local Government Act and is part of the Community Strategic Plan (CSP) and the Community Engagement Strategy (CES) which need to be developed. Component An individual part of an asset which contributes to the composition of the whole and can be separated from or attached to an asset or a system.

Cost of an asset The amount of cash or cash equivalents paid or the fair value of the consideration given to acquire an asset at the time of its acquisition or construction, plus any costs necessary to place the asset into service. This includes one-off design and project management costs.

Current replacement cost (CRC) The cost the entity would incur to acquire the asset on the reporting date. The cost is measured by reference to the lowest cost at which the gross future economic benefits could be obtained in the normal course of business or the minimum it would cost, to replace the existing asset with a technologically modern equivalent new asset (not a second hand one) with the same economic benefits (gross service potential) allowing for any differences in the quantity and quality of output and in operating costs.

Current replacement cost “As New” (CRC) The current cost of replacing the original service potential of an existing asset, with a similar modern equivalent asset, i.e. the total cost of replacing an existing asset with an as NEW or similar asset expressed in current dollar values.

Cyclic Maintenance Replacement of higher value components/sub-components of assets that is undertaken on a regular cycle including repainting, building roof replacement, cycle, replacement of air conditioning equipment, etc. This work generally falls below the capital/ maintenance threshold and needs to be identified in a specific maintenance budget allocation.

Depreciable amount The cost of an asset, or other amount substituted for its cost, less its residual value (AASB 116.6)

Depreciated replacement cost (DRC) The current replacement cost (CRC) of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset – refer to fair value.

Depreciation / amortisation The systematic allocation of the depreciable amount (service potential) of an asset over its useful life.

Economic life See useful life definition.

Equivalent Persons (EP) This is the number of people in the population (covered by this plan).

Equivalent Tenements This is an indication of the number of households represented by the equivalent persons (EP) above .

Expenditure



This is the spending of money on goods and services. Expenditure includes recurrent and capital.

Fair value The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties, in an arms length transaction. Fair Value is also defined as the current depreciated current replacement cost of an asset which represents its current value.

Good Asset Management Practice (GAMP) This encapsulates all the asset management practices used to deliver asset management. There needs to be a continuing review of practices and comparison with other like entities (benchmarking) to ensure that “best practice” is a continual goal and is achieved.

Infrastructure assets Physical assets of the entity or of another entity that contribute to meeting the public's need for access to major economic and social facilities and services, eg. roads, drainage, footpaths and cycleways. These are typically large, interconnected networks or portfolios of composite assets The components of these assets may be separately maintained, renewed or replaced individually so that the required level and standard of service from the network of assets is continuously sustained. Generally the components and hence the assets have long lives. They are fixed in place and are often have no market value.

Integrated Planning & Reporting (IP&R) The legislated process (under the NSW Local Government Act – amended) that will drive the planning & reporting processes for Councils in NSW.

Level of service The level of service is defined service quality for a particular service against which service performance may be measured. Service levels are usually measured against quality, function, availability, safety and cost effectiveness of the service.

Life Cycle Cost The life cycle cost (LCC) is average cost to provide the service over the longest asset life cycle. It comprises annual maintenance and asset consumption expense, represented by depreciation expense. The Life Cycle Cost does not indicate the funds required to provide the service in a particular year.

Life Cycle Expenditure The Life Cycle Expenditure (LCE) is the actual or planned annual maintenance and capital renewal expenditure to provide the service in a particular year. Life Cycle Expenditure may be compared to Life Cycle cost to give an initial indicator of life cycle sustainability (refer Sustainability Index).

Loans / borrowings Loans result in funds being received which are then repaid over a period of time with interest (an additional cost). Their primary benefit is in ‘spreading the burden’ of capital expenditure over time. Although loans enable works to be completed sooner, they are only ultimately cost effective where the capital works funded (generally renewals) result in operating and maintenance cost savings, which are greater than the cost of the loan (interest and charges).

Maintenance expenditure Recurrent expenditure, which is periodically or regularly required as part of the anticipated schedule of works required to ensure that the asset achieves its useful life and provides the required level of service. It is expenditure, which was anticipated in determining the asset’s useful life.

Operating expenditure This is recurrent expenditure, which is continuously required excluding maintenance and depreciation, eg power, fuel, staff, plant equipment, on-costs and overheads.

Peak Wet Weather Flow (PWWF) This is a measure of water flows that affect sewerage and water system performance.

Planned Maintenance



Repair work that is identified and managed through a maintenance management system (MMS). MMS activities include inspection, assessing the condition against failure/breakdown criteria/experience, prioritising scheduling, actioning the work and reporting what was done to develop a maintenance history and improve maintenance and service delivery performance.

Rate of annual asset renewal A measure of the rate at which assets are being renewed per annum expressed as a percentage of depreciable amount (capital renewal expenditure/DA).

Rate of annual asset upgrade A measure of the rate at which assets are being upgraded and expanded per annum expressed as a percentage of depreciable amount (capital upgrade/expansion expenditure/DA).

Reactive maintenance Unplanned repair work that carried out in response to service requests and management/supervisory directions.

Remaining life The time remaining until an asset ceases to provide the required service level or economic usefulness. Age plus remaining life is economic life.

Renewal See capital renewal expenditure definition above.

Residual value This is the net amount which an entity expects to obtain for an asset at the end of its useful life after deducting the expected costs of disposal.

Risk management The application of a formal process to the range of possible values relating to key factors associated with a risk in order to determine the resultant ranges of outcomes and their probability of occurrence.

Service Level Agreement (SLA) Internal or external agreements that define the quantitative measure of services provided to internal or external customers (the community).

Sustainability Index (SI) This is an engineering based assessment of sustainability which compares the expenditure on capital renewal and maintenance against the annualised life cycle cost (ALCC). This has the effect of smoothing out the value of the SI (compared to the SR) and provides a much more realistic measure of sustainability.

SI = (Capital Renewal + Maintenance)/ALCC where ALCC = AAAC + Maintenance expenditure

Sustainability Ratio (SR) This is a financial measure of sustainability and simply compares the annual expenditure on capital renewal (or equivalent) to the Average Annual Asset Consumption (AAAC).

SR = (Capital Renewal)/AAAC

Documents

BUILDINGS ASSET MANAGEMENT PLAN - GMC1: Index · 4.2 Changes in Technology ... 1. Prepare documentation and a presentation that outlines Council’s Buildings Asset Management Plan