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Integrated Strategic Asset Management System
Targeting Excellence in Service Delivery
Enabling Objective
Delivery of the Council’s Plan and Strategic Objectives in a
systematic, consistent, affordable and sustainable manner.
Infrastructure and Asset Management
Conference – June 7 and 8 - 2018
AGENDA Acknowledgement
Feedback from VAGO and MAV – Set Context
Benefits of Integrated Asset Management System
City Infrastructure Plan- Investment Optimisation - LTFP
Capital Works , Renewal Programs and Maintenance
Programs
Data and Information Management
Service Life Prediction and Life cycle costing
Asset Performance and Reporting
Questions
Acknowledgements
State Government – Rewrite of the Local Government Act
MAV – STEP Program
Local Government Victoria
Australian Centre for Excellence in Local Government (ACELG) - NAMAF
Victorian Auditor General (VAGO)
Institute of Public Works Engineering Australasia (IPWEA) – NAMS
Members of – International Infrastructure Management Manual
Individual Industry experts – Roger Burns, Dr Johann McDuling, Ashay
Prabhu, Pragnesh Shah
Maribyrnong City Council – EMT, CMT and Team Members
Civica, Assetic, CT Management
To all my colleagues and dedicated Asset Management practitioners here
today.
VAGO’s MESSAGE TO GOVERNMENT
Victoria: The Staggering Statistics
Owns - Circa $95 billion of physical infrastructure assets.
Invests –Circa $2 billion annually to maintain, renew or
replace them.
Rate : That’s a staggering rate of 2% circa per annum
VAGO’s Message- Renewal Gap
The continuing growth in councils’ asset renewal gaps
remains of considerable concern. $2B per annum risks
becoming $5B per annum
Poor asset management can lead to deteriorating or failing
assets, reduced levels of service, higher council rates and an
increased financial burden on future ratepayer generations.
What is Infrastructure Gap
Source Assetic and Mckinsey – Giobal Infrastructure Initiative - Unlocking Hidden Capital
VAGO – Recommended Improvements
• Practice - Optimise the Expenditure
for Renewal and Maintenance.
• AM Plan – Must Feed the Long
Term Financial Plan.
• Service Levels – Must Drive the
Required Spend.
• Tools - Technology Platforms that
enable data analytics to determine
better ways to spend monies
Public Accountability requires verification of
best value.
MAV - Acknowledges
The NAMAF Results indicate that many
Councils will struggle to meet the new
requirements of the NEW LG Act.
Leadership
People skills and knowledge
Standards for Compliance
Long Term Financial Planning (LTFP)
Resource Planning
What is Asset Management
Optimising the costs/benefits in
service delivery over the life of any
given Infrastructure.
Achieving Planned Service Outcomes
economically, socially responsible and
sustainable manner.
Authors View
Benefits of IAMS
Integrated Strategic Asset Planning(Full Picture);
Integrated Service Planning (Consistent Approach);
Centralised Data and Information System;
Centralised Modelling – LTFP, Capital, Renewal,
Maintenance (Risk Based Optimised);
Integrated Governance and Management;
Auditable processes including: Training, Review and
Audit;
Evidence Based Decision Making Processes;
Improved interoperability.
Strategic Integrated Planning Process
R
E
V
I
E
W
A
U
D
I
T
Partially Integrated Planning – For X
No. Of Services
INTEGRATED STRATEGIC ASSET PLANNING-
Keep it simple in a complex Council
Requirements
What we need – 10
years and above
LTFP
Services –
Quality
Functionality
Compliance
Control Loop
Decision Tree
CITY INFRASTRUCTURE PLAN
Capital Expenditure – 20 Years +
REQUIREMENTS
CIP Preparation Methodology
Phase 1 - Develop Project List to 2040
Phase 2 - Upload Project Information into CAPEX Tool
Phase 3 - Run CAPEX Model
Phase 4 - Prepare 10 Year Plan
Phase 5 - Prepare 2018/19 Plan
Phase 6 - Prepare/Confirm Scope & Cost Estimate of Projects
Phase 7 - Rerun CAPEX Model
Phase 8 - Prepare City Infrastructure Plan Master Document
Asset Classes & Criteria
Category Percentage
Financial 25%
Council plan objectives 25%
Risk and criticality 25%
Community benefit 25%
CategoryMaintenance
ratio
Operating
ratio
Land --% --%
Land improvements --% --%
Buildings 1.06% 4.13%
Computers and telecommunications 10.00% 6.00%
Roads 0.76% 0.12%
Bridges 0.76% 0.12%
Drainage 0.44% 0.17%
Rec, leisure and community facilities 1.75% 1.92%
Parks, open spaces and streetscape 8.69% 5.59%
Off street car parks 0.76% 0.12%
Other infrastructure 0.19% 0.01%
CAPITAL EXPENDITURE BY
ASSET CLASS
--
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
20
17
/1
8
20
18
/1
9
20
19
/2
0
20
20
/2
1
20
21
/2
2
20
22
/2
3
20
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/2
4
20
24
/2
5
20
25
/2
6
20
26
/2
7
20
27
/2
8
20
28
/2
9
20
29
/3
0
20
30
/3
1
20
31
/3
2
20
32
/3
3
20
33
/3
4
20
34
/3
5
20
35
/3
6
20
36
/3
7
20
37
/3
8
20
38
/3
9
20
39
/4
0
20
40
/4
1
20
41
/4
2
20
42
/4
3
20
43
/4
4
20
44
/4
5
20
45
/4
6
20
46
/4
7
20
47
/4
8
20
48
/4
9
20
49
/5
0
20
50
/5
1
20
51
/5
2
20
52
/5
3
20
53
/5
4
20
54
/5
5
20
54
/5
5
20
55
/5
6
Capital expenditure by Year and Asset ClassLandfill cells Spare 3 Spare 2 Portable Toilets Other infrastructureOff street car parks Aerodromes Parks, open spaces and streetscape Waste management Rec, leisure and community facilitiesDrainage Footpaths and cycle ways Bridges Roads Library booksHeritage plant and equipment Computers and telecommunications Fixtures, fittings and furniture Plant, machinery and equipment Heritage buildingsLeasehold improvements Building improvements Buildings Land improvements Land
Recommended 20 Years- Linked to LoS
Bridges 1% Buildings
20%
Computers and telecommunications
8%
Drainage 7%
Land 8%
Land improvements 15%
Other infrastructure 1%
Parks, open spaces and streetscape
11%
Rec, leisure and community facilities
5%
Roads 24%
Prediction Modeling - Optimise Renewal and
Maintenance – Assetic Predictor
Based on VAGO Direction:
1. Service Level Focus – We can trade off.
2. Analytics: Each Asset Class has Asset Life Profiles.
3. Financial Sustainability: We can Optimise expenditure for Renewals
and Maintenance
Asset Genetic Data
Assetic Decision Making Platform
Analytic Platform
Seeded Algorithms
Decision Making Platform
In Field Validation
Enhances Pattern
Generation
MCC Decision Platform- Assetic
All Asset Classes
Service Level
Planning
Assetic at MCC
15 Degradation Patterns
Asset Renewal - Intervention
Degradation Pattern & Curves
12/11/2008 25
0 5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
10
0
10
5
11
0
11
5
12
0
12
5
Age (Years)
No Maintenance
Avera
ge C
on
dit
ion
5
4
3
Very Good
Good
Fair
Bad
Very Bad
Preventative Maintenance
Condition-based Maintenance
Repairs
Rehabilitation
Replacement
$1
$5
+
$2
5 +
X 5
X 5
De Sitter’s “Law of Fives”
1
2
Current Road Surface Condition
26
54% Condition 1
21% Condition 2
11% Condition 3
6% Condition 4
8% Condition 5
Funding Options-50 year Renewal Program
50 Year Renewal Funding Strategy – Staged Approach
$24,000,000
$27,000,000
$31,000,000
$34,000,000
$38,000,000
$31,000,000
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
Years 1-10 Years 11-20 Years 21-30 Years 31-40 Years 41-50 Average
50 year Renewal Funding Strategy - Staged Funding Approach
Scenario Modelling - Roads
Year 20 - $31 Million Using Optimisation Year 20 - $24 Million Using Optimisation
Year 20 - $20- Million Using Optimisation Year 20 - $16 Million Using Optimisation
LTFP Projections
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
$ M
ILLI
ON
S
AXIS TITLE
Renewal Backlog for 10 years
Depreciation & Amortisation - SRP Renewal Expenditure - SRP Backlog
Asset Management System
The Success Pillars
SERVICE DELIVERY OPTIONS
STRATEGIES
COUNCIL
POLICY
PROJECT MANAGEMENT FRAMEWORK
LONG TERM FINANCIAL PLAN
SERVICE PLANS
STRATEGIC RESOURCE PLAN
ASSET MANAGEMENT PLAN
10 YEAR CAPITAL PLAN
20 YEAR RENEWAL PLAN
BUDGET OPERATIONAL PLAN
COMMUNITY
CITY INFRASTRUCTURE PLAN
PLANS
Asset Register
IA or Condition
Assessments
Prioritisation &
Scheduling
The six "What's" of asset management:
1. What do you own?
2. What is it worth?
3. What is its condition?
4. What is the backlog maintenance?
5. What is the remaining service life?
6. What do you fix first? – Optimised Decision Making
7. Functional Suitability ?
8. Compliance status?
9. What is it’s criticality?
10. What is the level of service to meet ? - Specification
Our Platform Answers Hard Questions
Data
Mining
T
o
o
l
s
Condition
Functionality
Performance
Capital Renewal Maintenance
Fully Integrated Data and Information Management
Gap
Asset Performance and
Evaluation
Asset
Integrated
Performance
Report
Physical
Condition
Functionality
Utilisation
Financial
Performance
Summary
Through a systematic and coordinated practice we can
enhance customer satisfaction, improve reputation, optimise
return on investment and minimise risk by integrating:
• Service Planning – We can link future plans to future service
levels – not last year plus or minus 5%.
• Options Costs: The ability of Councils to demonstrate multiple
future options is the only real platform for community
consultation.
• Demonstrate commitment – LTFP linked to the service level
that have been measured for affordability and demonstrate
best value.
• Needs vs Wants: Enable selection of projects based on
community current needs and future demand.
• Platform of Decision Making: With good data, robust
platforms and skilled resources, we can progressively make
this a way of life.
Questions ?
Service Level Example
0.00
1.00
2.00
3.00
4.00
5.00
BS - ASSESSED CONDITION 5. Excellent
4. Good
3. Fair
2. Poor
1. Very Poor
Service Level Example
0.00
1.00
2.00
3.00
4.00
5.00
Building Fabric Sub Structure(Foundations);
Roof External Walls &Windows
External Doors Internal
BF - ASSESSED CONDITION 5. Excellent
4. Good
3. Fair
2. Poor
1. Very Poor
High Priority Programs
• Modelling Renewal Program (3 – 50 Years)
• Finalising Level Of Services
• Finalising Optimisation Program for Asset Life
Cycle
• Identifying the FY 18/19 Renewal Program
• Supporting Service Managers
ASSET MANAGEMENT ANETOMY
Positive Attitude V Behaviour = Progress
Information processing in humans
resembles that in computers, and is
based on transforming information,
storing information and retrieving
information from memory.
Over the past 16 Years have we
evolved or copied what was
provided?
WASTE MANAGEMENT – Cancellation Kerbside (KS) Bin
(CRM system)
Authority
(Contractors)
Remondis
(Recipient)
Customer Service/ MCC staffWaste Management Team Rates Officer
(Subcontractor)
The Bin Guy (TBG)
Ph
ase
Cancellation KS Bin request
Request is generated by:
Landlords
Owners
Agents
via the following mediums:
Telephone
Correspondence
Customer Service
Smartphone App (Form)
MCC Website (Form)
Request Allocation
The system automatically
allocates the request
from the category to the
recipient i.e. Remondis
Verification
Has the KS bin been collected
and request closed in authority?
Turnaround 72hrs?
(Check Bin Task checklist
complete)
Are request details accurate?
I.e. Correct category – Additiona KS Bin,
Correct details code i.e. work type,
stream and size (refer sub process
below)
E.g. C,GW240L
Generate Customer Request in
Authority
Recipient creates a customer
request in Authority which
includes:
Source of request
Category
Contact Info
(Ensure all mandatory drop
down boxes are completed and
no duplicate request from
customer/contractor)
TASK 2ACK
Action collect KS bin:
TBG to collect KS Bin
from customer and
advise Remondis when
the job is completed
TASK BINP
Investigation Follow up
Check request
TASK 2CC
NO
Bin Register (listing)
The bin register updated from
the CRM checklist by the
contractor (includes serial#,
assessment#, stock used and
address). This then updates
the inventory register (refer to
inventory process)
TASK URE
YES
Have 2 or more
knockback notices
been issued?
Close customer KS bin
request in Authority
(Ensure Bin Task
checklist is completed)
Rates Module
The rates officer
notified via authority to
update the customer s
rates to remove
additional bin charges
TASK 3RTC
Ensure the following info is obtained at the time of
exchange with the customer.
Categories:
E.g. Damaged KS Bin, New KS Bin, Additional KS
Bin, KS Bin Retrieval
Remondis Work type:
New (N)
Cancellation ( c)
Retrieve and Replace (R&R)
Stolen (S)
Repair ( R )
Downsize (D/S)
Upsize (U/S)
Retrievals (RET)
SIZE:
120L
240L
360L
660L
1100L
Stream:
Waste( W)
Recycle ( R )
GW (GW)
Street Bin (SB)
Type of Service
Residential
Commercial
Is Bin accessible to
collect bin?
NO
Knockback notice issued to advise
customer:
Can t access property to
collect bin
Customer to rectify situation to
allow access by a certain date
The request will be closed
after 2 knockbacks
Customer will continue to be
charged (if paid bin) until bin is
collected
Customer required to make
another request after 2nd
knockback notice issued
Rates Authorisation to be included as part
of electronic form
Customer to complete and submit Rates
Authorisation for cancellation of green KS
bin or additional KS bins.
Action prepare run sheet:
Remondis to prepare
daily run sheet:
Jobs before 2pm - action
same day
Jobs after 2pm - action
next day
Monthly Report
Rates team to send
waste team monthly
report of new bin
charges
QA
Waste Officer to check
charges against CRM
Has a new
customer request
been made ?
YES
NO
Have 2 or
more knockback
notices been issued
for this request?
(TASK 3INF)
YES
NO
YES
Verification Triggers
Customer complaint
WMT oversight
function
YES
NO
NO
Asset Register ?
IA or Condition
Assessments ?
Prioritisation &
Scheduling ?
Hard Questions
