FORBES SHIRE COUNCIL Cycle Expenditure ** The Life Cycle Expenditure (LCE) is the actual or planned...

Forbes Shire Council – Building & Other structures Asset Management Plan

FORBES SHIRE COUNCIL

BUILDINGS & OTHER STRUCTURES

ASSET MANAGEMENT PLAN

Version 1.1

February 2012


Document Control

Document ID: 59_07_101209 nams plus_amp template v11 1

Rev No Date Revision Details Author Reviewer Approver

© Copyright 2007 – All rights reserved.

The Institute of Public Works Engineering Australia.


TABLE OF CONTENTS

ABBREVIATIONS ................................................................................................................................................................................... i GLOSSARY ............................................................................................................................................................................................ ii 1. EXECUTIVE SUMMARY ................................................................................................................................................................... 1

What Council Provides ............................................................................................................................................................ 1 What does it Cost? .................................................................................................................................................................. 1 Plans for the Future ................................................................................................................................................................. 1 Measuring our Performance ................................................................................................................................................... 1 The Next Steps ......................................................................................................................................................................... 2

2. INTRODUCTION ....................................................................................................................................................................... 3 2.1 Background .................................................................................................................................................................... 3 2.3 Plan Framework ............................................................................................................................................................. 9 2.4 Core and Advanced Asset Management ................................................................................................................... 10

3. LEVELS OF SERVICE ............................................................................................................................................................ 10 3.1 Customer Research and Expectations ...................................................................................................................... 10 3.2 Legislative Requirements ........................................................................................................................................... 10 3.3 Current Levels of Service ........................................................................................................................................... 10 3.4 Desired Levels of Service ........................................................................................................................................... 11

4. FUTURE DEMAND .................................................................................................................................................................. 17 4.1 Demand Forecast......................................................................................................................................................... 17 4.2 Changes in Technology .............................................................................................................................................. 17 4.3 Demand Management Plan ......................................................................................................................................... 17 4.4 New Assets from Growth ............................................................................................................................................ 18

5. LIFECYCLE MANAGEMENT PLAN ....................................................................................................................................... 18 5.1 Background Data ......................................................................................................................................................... 18 5.1.1 Physical parameters ........................................................................................................................................ 18 5.1.2 Asset capacity and performance ................................................................................................................... 20 5.1.3 Asset condition ................................................................................................................................................ 20 5.1.4 Asset valuations .............................................................................................................................................. 21 5.2 Risk Management Plan ............................................................................................................................................... 21 5.3 Routine Maintenance Plan .......................................................................................................................................... 22 5.3.1 Maintenance plan ............................................................................................................................................. 22 5.3.2 Standards and specifications ......................................................................................................................... 24 5.3.3 Summary of future maintenance expenditures ............................................................................................ 24 5.4 Renewal/Replacement Plan ........................................................................................................................................ 25 5.4.1 Renewal plan .................................................................................................................................................... 25 5.4.2 Renewal standards .......................................................................................................................................... 25 5.4.3 Summary of future renewal expenditure ....................................................................................................... 25 5.5 Creation/Acquisition/Upgrade Plan ........................................................................................................................... 29 5.5.1 Selection criteria .............................................................................................................................................. 29 5.5.2 Standards and specifications ......................................................................................................................... 29 5.5.3 Summary of future upgrade/new assets expenditure .................................................................................. 29 5.6 Disposal Plan ............................................................................................................................................................... 30

6. FINANCIAL SUMMARY .......................................................................................................................................................... 30 6.1 Financial Statements and Projections....................................................................................................................... 30 6.1.1 Sustainability of service delivery ................................................................................................................... 32 6.2 Funding Strategy ......................................................................................................................................................... 34 6.3 Valuation Forecasts .................................................................................................................................................... 34 6.4 Key Assumptions made in Financial Forecasts ....................................................................................................... 36

7. ASSET MANAGEMENT PRACTICES .................................................................................................................................... 37 7.1 Accounting/Financial Systems .................................................................................................................................. 37 7.2 Asset Management Systems ...................................................................................................................................... 37 7.4 Standards and Guidelines .......................................................................................................................................... 39

8. PLAN IMPROVEMENT AND MONITORING .......................................................................................................................... 39 8.1 Performance Measures ............................................................................................................................................... 39 8.2 Improvement Plan........................................................................................................................................................ 39 8.3 Monitoring and Review Procedures .......................................................................................................................... 40

REFERENCES ...................................................................................................................................................................................... 41 APPENDICES ....................................................................................................................................................................................... 41 APPENDIX A : PROJECTED 10 YEARS RENEWAL PROGRAM ..................................................................................................... 42 APPENDIX – B – RISK REGISTER ..................................................................................................................................................... 46 APPENDIX – C – RISK MANAGEMENT PLAN .................................................................................................................................. 47 APPENDIX – D – LIST OF BUILDING & OTHER STRUCTURES ...................................................................................................... 56 APPENDIX – E – PICTURES OF BUILDINGS AND OTHER STRUCTURES .................................................................................... 63

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ABBREVIATIONS

AAAC Average annual asset consumption

AMP Asset management plan

ARI Average recurrence interval

BOD Biochemical (biological) oxygen demand

CRC Current replacement cost

CWMS Community wasteBuilding & Other Structures management systems

DA Depreciable amount

DoH Department of Health

EF Earthworks/formation

IRMP Infrastructure risk management plan

LCC Life Cycle cost

LCE Life cycle expenditure

MMS Maintenance management system

PCI Pavement condition index

RV Residual value

SS Suspended solids

vph Vehicles per hour

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GLOSSARY

Annual service cost (ASC) An estimate of the cost that would be tendered, per annum, if tenders were called for the supply of a service to a performance specification for a fixed term. The Annual Service Cost includes operating, maintenance, depreciation, finance/ opportunity and disposal costs, less revenue.

Asset class Grouping of assets of a similar nature and use in an entity's operations (AASB 166.37).

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 each and every asset OR by dividing the Fair Value (Depreciated Replacement Cost) by the Remaining Life and totalled for each and every asset in an asset category or class.

Brownfield asset values** Asset (re)valuation values based on the cost to replace the asset including demolition and restoration costs.

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 grants Monies received generally tied to the specific projects for which they are granted, which are often upgrade and/or expansion or new investment proposals.

Capital investment expenditure See capital expenditure definition

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.

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Carrying amount The amount at which an asset is recognised after deducting any accumulated depreciation / amortisation and accumulated impairment losses thereon.

Class of assets See asset class definition

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

Depreciation / amortisation

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

Economic life See useful life definition.

Expenditure 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.

Greenfield asset values ** Asset (re)valuation values based on the cost to initially acquire the asset.

Heritage asset An asset with historic, artistic, scientific, technological, geographical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture and this purpose is central to the objectives of the entity holding it.

Impairment Loss The amount by which the carrying amount of an asset exceeds its recoverable amount.

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.

Investment property Property held to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business (AASB 140.5)

Level of service The defined service quality for a particular service against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental, acceptability and cost).

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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 incurred in providing 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.

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 and renewal gap Difference between estimated budgets and projected expenditures for maintenance and renewal of assets, totalled over a defined time (eg 5, 10 and 15 years).

Maintenance and renewal sustainability index Ratio of estimated budget to projected expenditure for maintenance and renewal of assets over a defined time (eg 5, 10 and 15 years).

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.

Materiality An item is material is its omission or misstatement could influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances.

Modern equivalent asset. A structure similar to an existing structure and having the equivalent productive capacity, which could be built using modern materials, techniques and design. Replacement cost is the basis used to estimate the cost of constructing a modern equivalent asset.

Non-revenue generating investments Investments for the provision of goods and services to sustain or improve services to the community that are not expected to generate any savings or revenue to the Council, eg. parks and playgrounds, footpaths, roads and bridges, libraries, etc.

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

Pavement management system A systematic process for measuring and predicting the condition of road pavements and wearing surfaces over time and recommending corrective actions.

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.

PMS Score A measure of condition of a road segment determined from a Pavement Management System.

Rate of annual asset consumption* A measure of average annual consumption of assets (AAAC) expressed as a percentage of the depreciable amount (AAAC/DA). Depreciation may be used for AAAC.

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.

Recoverable amount The higher of an asset's fair value, less costs to sell and its value in use.

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Recurrent expenditure Relatively small (immaterial) expenditure or that which has benefits expected to last less than 12 months. Recurrent expenditure includes operating and maintenance expenditure.

Recurrent funding Funding to pay for recurrent expenditure.

Rehabilitation See capital renewal expenditure definition above.

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 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.

Revenue generating investments Investments for the provision of goods and services to sustain or improve services to the community that are expected to generate some savings or revenue to offset operating costs, eg public halls and theatres, childcare centres, sporting and recreation facilities, tourist information centres, etc.

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.

Section or segment A self-contained part or piece of an infrastructure asset.

Service potential The capacity to provide goods and services in accordance with the entity's objectives, whether those objectives are the generation of net cash inflows or the provision of goods and services of a particular volume and quantity to the beneficiaries thereof.

Service potential remaining* A measure of the remaining life of assets expressed as a percentage of economic life. It is also a measure of the percentage of the asset’s potential to provide services that is still available for use in providing services (DRC/DA).

Strategic Management Plan (SA)** Documents Council objectives for a specified period (3-5 yrs), the principle activities to achieve the objectives, the means by which that will be carried out, estimated income and expenditure, measures to assess performance and how rating policy relates to the Council’s objectives and activities.

Sub-component Smaller individual parts that make up a component part.

Useful life Either: (a) the period over which an asset is expected to be

available for use by an entity, or (b) the number of production or similar units expected to

be obtained from the asset by the entity. It is estimated or expected time between placing the asset into service and removing it from service, or the estimated period of time over which the future economic benefits embodied in a depreciable asset, are expected to be consumed by the council. It is the same as the economic life.

Value in Use The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. It is deemed to be depreciated replacement cost (DRC) for those assets whose future economic benefits are not primarily dependent on the asset's ability to generate new cash flows, where if deprived of the asset its future economic benefits would be replaced.

Source: DVC 2006, Glossary Note: Items shown * modified to use DA instead of CRC Additional glossary items shown **

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1. EXECUTIVE SUMMARY

What Council Provides

Council builds or acquires building and other structures to provide services to the community as and when it demands. At the moment Council owns buildings and other structures in different service area or location. Based on services the buildings and structures have been classified into six classes

1. Administration & Civic Centre 2. Operational 3. Community 4. Recreational 5. Residential & 6. Toilet Blocks.

A list of the Building & Other Structures is attached in the appendix.

Council owns and maintains all these Assets with its own resources.

What does it Cost?

There are two key indicators of cost to provide the Building & Other Structures service.

The life cycle cost being the average cost over the life cycle of the asset, and

The total maintenance and capital renewal expenditure required to deliver existing service levels in the next 10 years covered by Council’s long term financial plan.

The life cycle cost to provide the Building & Other Structures service is estimated at $ 2.715 m per annum. Council’s planned life cycle expenditure for year 1 of the asset management plan is $ 2.283 m which gives a life cycle sustainability index of 0.84.

The total maintenance and capital renewal expenditure required to provide the Building & Other Structures service the in the next 10 years is estimated at $ 26.519m. This is an average of $ 2.652m per annum.

Council’s maintenance and capital renewal expenditure for year 1 of the asset management plan of $2.346m giving a 10 year sustainability index of 0.88.

That means if we spend the projected renewal as determined in Asset Management Plan, the index will remain almost same and there will not be any significant shortfall or gap in a short or long term.

Plans for the Future

Council plans to operate and maintain the Building & Other Structures services to achieve the following strategic objectives.

1. Ensure the asset components are maintained at a

safe and functional standard as set out in this asset

management plan.

2. Satisfying the community expectations.

3. Maintaining the assets in a cost effective manner.

Measuring our Performance

Quality Building & Other Structures Services will be maintained in a reasonably usable condition. Defects found or reported that are outside our service standard will be repaired.

Function Our intent is that our Building & Other Structures Services are maintained in partnership with other levels of government and stakeholders to provide a functionally sound infrastructure.

We need to ensure key functional objectives are met:

An uninterrupted service and facility

Ensuring customer confidence

The main functional consequence is a safe and secured service and facilities that will sustain and will provide services to the community according to the agreed service levels.

And the main functional consequence of failure to deliver the desired outcomes is:

Asset Maintenance: Increase in user and owner costs and increase in litigation.

Levels of Service: Unsatisfactory conditions / service levels. Increase in user and owner costs.

Safety

Building & Other Structures Services attributes will be maintained at a safe level and associated signage and equipment be provided as needed to ensure public safety. We need to ensure that the following key Safety objectives are met:

Safe facilities.

Community demands are addressed on time.

Council inspects all assets covered in this plan regularly, prioritises the jobs needed to be done and repairs defects in accordance with the inspection schedule to ensure that the assets are safe and serviceable.

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Asset Management Plan Implementation program

Following completion of the plan, the following actions are proposed:

Council’s endorsement of the Building & Other Structures Management Plan

Community consultation and Plan review.

Council’s adoption of Asset Management Plan, Policy and Strategy.

Implementation

Training Asset Custodians and Managers to implement Asset Management Plan processes.

Commencements of ongoing Asset Management Plan Improvement Plan.

Data Refinement and Improvement

Proposed Improvement Plan actions and timeline for Data refinement and improvement to be determined.

Review

Annual review of Asset Management Plan financial and technical data at stage of Budget formulation and Revaluation.

Periodic Revision of Asset Management Plan.

The Next Steps

The actions that are needed to be looked at resulting from this asset management plan are:

The Asset Management Steering Committee will monitor and review the progress of implementing the management plan. The committee will also advice council in relation to any policy or procedure that is needed to execute the plan objectives.

Asset registers are to be reviewed and updated on regular basis and all new components will be incorporated.

The Asset Useful life and Remaining Life is to be reviewed and assessed annually.

The assets will be inspected physically on a regular basis and will be documented.

The levels of service will be monitored, adjusted and reviewed on a regular basis.

Council will maintain a Risk register and will monitor to make right decision on right time.

Council will develop a consistent reporting system in collaboration with the Finance and Asset management team.

Future demand for infrastructure will be monitored.

Allocate desired funds and resources to achieve ideal sustainable index.

Follow forward works program as determined by the Asset Management Plan.

Introduce low cost for maintenance program.

Follow the priority guidelines in all activities of the plan.

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2. INTRODUCTION

2.1 Background

This asset management plan is to demonstrate responsive management of assets (and services provided from assets), compliance with regulatory requirements, and to communicate funding required providing the required levels of service.

The asset management plan is to be read with the following associated planning documents:

1. FSC management plan

2. Asset Registers

3. Risk Management Plan

4. Demand Management Plan

5. Service Delivery Plan

6. Asset Management Policy

7. Asset Management Strategy

The following assets are covered in the Building & Other Structures asset management plan. During the implementation of this management plan these major components will be further componentised for better management. In this management plan only network level components are considered for financial and management analysis.

Building Category Building ID Building Type

Administration & Civic Centre

AD 001 Administration Building

AD 002 Town Hall

AD 003 Council Chamber

AD 004 Engineers' Building - State Bank

Operational

OP 001 CWLE

OP 002 Depot

OP 003 Apex Caravan Park

OP 004 Sewer Treatment Plant

OP 005 Water Filtration Plant

OP 006 Aerodrome

OP 007 Engineering Services - Demountable

OP 008 Quarry

OP 009 Landrace Subdivision

OP 010 Dog Pound

OP 011 SES

OP 012 RFS

Community

COM 001 Cemetery

COM 002 Guide Hall

COM 003 HACC

COM 004 Hughes Plaza

COM 005 Information Centre

COM 006 Library

COM 007 Medical Centre

COM 008 Solid Waste Depot

COM 009 Osborne Hall Museum

COM 010 Youth & Community Centre

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COM 011 JREC

COM 012 Radio Station

Recreational

REC 001 Swimming Pool

REC 002 Ovals

REC 003 Parks

REC 004 Tennis Centre

REC 005 Gump Swamp

REC 006 Race Course

REC 007 Golf Course

Residential RES 001 Union St Units

RES 002 Prince St Units

Toilet Blocks

TB 001 Albion Park - Toilet Block

TB 002 Apex Park - Toilet Block

TB 003 Victoria Park - Toilet Block - Disabled

TB 004 Victoria Park - Toilet Block - Male / Female

TB 005 Lions Park - Toilet Block - Male / Female

TB 006 Railway Station Park - Toilet Block - Male / Female

TB 007 Gaggin Oval - Toilet Block/Change Rooms

TB 008 Hughie Wilson Oval - Toilet Block

TB 009

Swimming Pool - Dressing Shed Less Toilets & Showers - Male

TB 010 Swimming Pool - Toilets & Showers - Male

TB 011 Aquatic Area - Toilet Block/Change Rooms

TB 012 Rotaract Park - Toilet Block - Male / Female

The current Replacement cost of the Buildings and Other Structures Assets are valued to $32.626m which excludes the contents value amounting $4.069m.

Table 2.1. Assets covered by this Plan

Asset Class Asset Types Current Replacement Cost

Corporate Buildings

Buildings $ 5,496,627

Other Assets $ 8,756

Contents (Administration Bldg.) $ 844,800

Contents (Engineers' Bldg.) $ 88,803

Total for Corporate Buildings $ 6,350,183

Community Buildings


Other Structure $ 105,244


Contents $ 96,800

Community Buildings $ 12,580,530

Waste Disposal Buildings $ 37,506


Waste Disposal $ 419,335

Total for Community Facilities $ 12,999,865

Operational Structures


Other Structure $ 9,187,703

Other Assets $ 1,003,974

Contents $ 2,999,040

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Operational Structures $ 14,308,532

Caravan Park

Buildings $ 832,629



Caravan Park $ 938,277

Quarry Quarry Assets $ 1,650

Quarry $ 1,650

Total for Operarational Structures $ 15,248,459

Residential Buildings



Contents $ 39,600

Total for Residential Buildings $ 2,096,761

Total For Buildings & Other Structures $ 36,695,268

Total For Buildings & Other Structures (Excluding Contents)

$ 32,626,225

Key stakeholders in the preparation and implementation of this asset management plan are:

Stakeholder Issues to Monitor

General Users

Community

Costs/ value for money

Quality services

Safety standards met and maintained

Continued service

Reasonable cost

Young Community Supports demand

Provides feedback

Other Users

Tourists Quality of service

Safety

Council

Councillors

Minimise complaints

Good public profile

Compliance

Continued availability

Price/Costs.

Council employees

Recognition for work

Safe workplace

Competency / training

Security

Support.

Government

DLG

Accountability

Financial stability.

Compliance with Act

Efficient operations

Performance

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2.2 Goals and Objectives of Asset Management

The Council exists to provide services to its community. Some of these services are provided by infrastructure assets. Council has acquired infrastructure assets by ‘purchase’, by contract, construction by council staff and by donation of assets constructed by developers and others to meet increased levels of service.

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

Taking a life cycle approach,

Developing cost-effective management strategies for the long term,

Providing a defined level of service and monitoring performance,

Understanding and meeting the demands of growth/decline through demand management and infrastructure investment,

Managing risks associated with asset failures,

Sustainable use of physical resources,

Continuous improvement in asset management practices.1

This asset management plan is prepared under the direction of Council’s vision, mission, goals and objectives.

Council has adopted a Vision for the future in the Council Strategic Plan. “A prosperous rural community where residents and visitors enjoy a clean, safe environment enhanced by our unique heritage and country lifestyle” Council’s purpose or reason for existence is set out in the adopted Mission statement,

“For the whole community to grow and prosper through effective leadership, provision of sustainable services and promotion of economic development opportunities.”

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

Number Goal Objective How Goal and Objectives are addressed

1

Sustained Economic Development in Forbes Shire.

1. The community benefits from a strong local economy, providing employment opportunities and a diversified economic base; 2. The community and visitors to the shire benefit from a vibrant tourist industry; 3. The Shire is promoted in a positive light through the development and implementation of an effective and recognisable branding and marketing strategy; 4. Residential and industrial development opportunities are enhanced through assistance and advice provided by Council; 5. The long term viability of stock selling in Forbes is enhanced through provision and effective operation of the Forbes

- Well managed and maintained operational facilities assets enable good value service for economic development.

- Ensure key infrastructure are provided efficiently and to levels of service that are suitable for supporting the various economic activities i.e. providing facilities that will attract the visitors and that will support local businesses and hence the local economy.

1 IIMM 2006 Sec 1.1.3, p 1.3

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Saleyards.

2

Well Planned, Developed and Maintained transport facilities that meet the needs of the community.

1. Access throughout the shire is enhanced through the provision of well maintained and reliable transport facilities; 2. Community safety is enhanced with safe, adequately lit roads and footways; 3. The aesthetic appeal of the shire is enhanced through well maintained roadsides and street landscaping; 4. Community amenity is enhanced through the provision of functional, attractive and safe cycleways.

- Good transport facilities will attract the visitors to participate in the events and in operational activities.

3

Sound environmental management practices and improved community amenity.

1. The community is provided with a waste management system which is efficient and promotes waste minimisation and recycling; 2. Issue relating to developments/ works on the Floodplain throughout the Shire are properly assessed; 3. The community benefits from an efficient and functional urban drainage system; 4. The Shire environment is protected through effective noxious weed control; 5. The amenity of Forbes is enhanced through the regular and effective cleaning of streets; 6. The quality of the built environment is maintained through the development and implementation of appropriate planning and building controls; 7. The community benefits through the provision fo a well maintained and functional cemetery.

- Through the adoption and implementation of various Asset Management Plans for the various asset classes.

4

Services and Infrastructure provided to the community in the most efficient and economic manner.

1. The community is provided with reliable and fully functional water supply and sewerage systems; 2. The amenity of Forbes is enhanced through the provision of a wide variety of adequately serviced recreational and sporting facilities; 3. The youth of the Shire are provided with facilities and opportunities to promote their participation within the community and encourage the retention of youth in Forbes;

- Regular feedback from the community regarding requirement and level of services as set out in the plan. Providing opportunity for input from the community into Level of Services (LoS) adopted in the various Asset Management Plans (AMP).

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4. The safety and amenity of the Shire is enhanced through effective regulatory enforcement; 5. The unique heritage value of the Shire is recognised, preserved and promoted; 6. The community has access to effective emergency services.

5

A council is responsive to the needs of its community

1. The council is aware of the needs of its community and addresses these effectively; 2. Councillors' receive adequate training and support to enable them to effectively undertake their civic duties; 3. The business of Council is transacted in an open and transparent manner; 4. The community is provided with the opportunity to actively participate on a wide variety of committees which provide recommendations to Council.

- Following the guidelines of the environmental policy related to the Facilities will help in managing the environment.

- Regular maintenance based on this plan will provide an environmentally healthy community.

- By following responsive plan

6

An organisation characterised by highly competent staff, good morale and job satisfaction.

1. The community is provided with timely and effective information on the services and activities of Council; 2. Issues raised by community members are dealt with timely, equitable and effective manner; 3. Council conducts its operations in accordance with statutory requirements and with the aim of seeking to continually improve the effectiveness of all its operations; 4. Council is fully committed to responsible management of all of its assets to ensure the long term sustainability of the organisation and service levels therein, 5. The Community's long term needs are addressed through effective strategic planning undertaken by Council across all areas of operation; 6. The Community is provided with the highest levels of financial accountability in all activities of Council and in full compliance with appropriate guidelines; 7. Council is fully committed to the recruitment, development and support of highly trained, competent staff that have a genuine customer service focus.

- Engaging efficient, skill and committed people in the activities.

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2.3 Plan Framework

Key elements of the plan are

Levels of service – specifies the services and levels of service to be provided by council.

Future demand – how this will impact on future service delivery and how this is to be met.

Life cycle management – how Council will manage its existing and future assets to provide the required services

Financial summary – what funds are required to provide the required services.

Asset management practices

Monitoring – how the plan will be monitored to ensure it is meeting Council’s objectives.

Asset management improvement plan A road map for preparing an asset management plan is shown below.

Road Map for preparing an Asset Management Plan

Source: IIMM Fig 1.5.1, p 1.11

IS THE PLAN

AFFORDABLE?

CORPORATE PLANNING

Confirm strategic objectives and establish AM

policies, strategies & goals.

Define responsibilities & ownership.

Decide core or advanced AM Pan.

Gain organisation commitment.

REVIEW/COLLATE ASSET INFORMATION

Existing information sources

Identify & describe assets.

Data collection

Condition assessments

Performance monitoring

Valuation Data

ESTABLISH LEVELS OF SERVICE

Establish strategic linkages

Define & adopt statements

Establish measures & targets

Consultation

LIFECYCLE MANAGEMENT STRATEGIES

Develop lifecycle strategies

Describe service delivery strategy

Risk management strategies

Demand forecasting and management

Optimised decision making (renewals, new works,

disposals)

Optimise maintenance strategies

FINANCIAL FORECASTS

Lifecycle analysis

Financial forecast summary

Valuation Depreciation

Funding

IMPROVEMENT PLAN

Assess current/desired practices

Develop improvement plan

ITERATION

Reconsider service statements

Options for funding

Consult with Council

Consult with Community

DEFINE SCOPE &

STRUCTURE OF PLAN

INF

OR

MA

TIO

N M

AN

AG

EM

EN

T, a

nd

DA

TA

IM

PR

OV

EM

EN

T

AM PLAN

REVIEW AND

AUDIT

IMPLEMENT

IMPROVEMENT

STRATEGY

ANNUAL PLAN /

BUSINESS PLAN

INF

OR

MA

TIO

N M

AN

AG

EM

EN

T, a

nd

DA

TA

IM

PR

OV

EM

EN

T

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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.

3. LEVELS OF SERVICE

3.1 Customer Research and Expectations

Forbes Shire Council carries out research on customer expectations based on issues. Council’s CAIRS system records customer complaints and comments at the moment and will be replaced by CRM of CIVICA AUTHORITY. Council has recently conducted a community engagement process for preparation of future planning based on community aspirations.

Council uses this information in developing the Strategic Management Plan and in allocating resources.

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 - 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.

Disability Discrimination Act - All roads construction must have compliance with the act.

Occupational Health, Safety Act & Regulations

- Sets out roles, responsibilities to secure health, safety and welfare at work place.

Contaminated Land Management Act 1997

- This act restricts to carry out any development work in the contaminated land.

Environmental Planning and Assessment Act 1979

- To identify and assess the impacts of a proposed maintenance activity on critical habitat, threatened species, populations or ecological communities or their habitats.

Heritage Act 1977 and National Parks and Wildlife Act 1974

- To protect indigenous and non-indigenous archaeological sites and relics. If anything of this category is found, Aboriginal Program Consultant or Regional Environmental Staff would be contacted.

Australian Heritage Commission Act 1975

- Any activities related to the transport system with the potential to affect an item on the Register of the National Estate or Interim Register of the National Estate.

Aboriginal And Torres Strait Islander Heritage Protection Act 1984

- Any discovery of Aboriginal remains must be reported to the Federal Minister fro Aboriginal and Torres Strait Islander Affairs.

Native Title Act 1993 - Works carried out on Native Title land should comply with the “right to negotiate” and “opportunity of comment” processes.

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 technical measures relate to service criteria such as:

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Service Criteria Technical measures may relate to Quality Uninterrupted Services Quantity Capacity of the facilities Availability Distance from a dwelling to a facility Safety Number of injury accidents

3.4 Desired Levels of Service

At present, indications of desired levels of service are obtained from various sources including the Customer Records in CAIRS, residents’ feedback to Councillors and staff, service requests and correspondence. Council has quantified desired levels of service based on those sources. This will be monitored and will be updated in future revisions of this asset management plan.

Council’s current and desired service levels are detailed in Table 3.3.

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Table 3.3. Level of Services

Level of Services for Buildings

Key Performance Measure Level of Service Objective Performance Measure Process Desired Level of Service Current Level of Service

Community Level of Service

Quality Building facilities are clean and

appropriate for users Customer services requests

related to service quality Less than 1 per month Less than 1 per month

Function Facilities are available and meet

users needs Customer services requests

related to usage and availability < 1 /month < 1 /month

Safety

Building facilities are safe and healthy

Reported injury incidents Nil / yr Nil per yr

Facilities are accessible to DDA groups

Reported injury incidents Nil / yr Nil per yr

Technical Level of Services

Operation

Building facilities meet users' needs

Annual Condition & defects inspection

< 10 defects identified (defects are reducing)

15 Nos.

Budget Total $ 33,000 Total $ 30,000

Maintenance

Buildings are suitable for purpose

Reactive service requests completed within adopted time

frames

Defects made safe within 10 working days. Repairs completed

within 10 working days

80% of defects made safe in time 80% of repairs completed in time

Planned maintenance activities completed to schedule

All planned maintenance activities completed to schedule

80% completed

Budget Reactive $ 10,000, Planned $

25,000, Total $ 35,000 Reactive $ 10,000, Planned $

25,000, Total $ 35,000

Renewal

Building facilities meet users'

needs

Condition of buildings < 20% with condition 4 and 5 < 30% with condition 4 and 5

Budget $ 25,000 $ 25,000

Function / Accessibility Provide access and services for all

user groups DDA legislative compliance 100% compliance 100% compliance

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Level of Services for Town Hall

Key Performance Measure Level of Service Objective Performance Measure Process Desired Level of Service Current Level of Service

Community Level of Service

Quality Provide clean accessible facility Customer Complaints < 5 a year 6 a year

Function Facility is fit for purpose. All

required equipment is provided. Customer service requests < 0 per month 0 /month

Safety

Building facilities are safe and healthy

Reported injury incidents Nil / yr 1 per yr

Facilities are accessible to DDA groups

Reported injury incidents Nil / yr 0 per yr

Technical Level of Services

Operation

Building facilities meet users' needs

Annual Condition & defects inspection

< 10 defects identified (defects are reducing)

15 Nos.

Building are clean

Cleaning frequency Daily daily

Budget Total $ 45,000 Total $ 43,000

Maintenance

Buildings are suitable for purpose

Reactive service requests completed within adopted time

frames

Defects made safe within 10 working days. Repairs completed

within 10 working days

80 % of defects made safe in time 80 % of repairs completed in time

Planned maintenance activities completed to schedule

All planned maintenance activities completed to schedule

80% completed

Cost effectiveness

Maintenance costs are fully recovered

Budget compliance 70 %Target income is reached.

Expenses are within budget Income budget variance 50 %,

Expense budget variance + 10%

Budget Reactive $ 20,000, Planned $

400,000, Total $ 420,000 Reactive $ 20,000, Planned $

150,000, Total $ 170,000

Availability Facility is always available for hire Bookings / month > ___ bookings / month ____ bookings

Safety Provide safe suitable facilities free from hazards with hazards clearly

identified Safety audit of facility

Safety inspections - Electrical tagging / testing --- biennial, Legislative audit --- biennial,

Safety inspection ___ half yearly. All defects repaired within

approved timeframes

1. Electrical tagging / testing inspection 2. Legislative audit

inspection 3. Safety Inspections

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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, etc.

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

Table 4.1. Demand Factors, Projections and Impact on Services

Building & Other structures – Demand Factor

Demand Factor Present Position Projection Impact on Services

Population Total population is 9748 as on June 2011 CENTROC projection for the same time is 9,859.

Population increase @ .1% and CENTROC study has a projection of 0.2%

Will require more facilities and more renewal

Business activities

The newly built CWLE has attracted the businesses in and around the shire.

Increase of number of visitors need more improvement of the facilities.

Increase demand.

4.2 Changes in Technology Technology changes are forecast to affect the delivery of services covered by this plan in the following areas.

Table 4.2. Changes in Technology and Forecast effect on Service Delivery

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 and demand management. Demand management practices include non-asset solutions, insuring against risks and managing failures.

Opportunities identified to date for demand management are shown in Table 4.3. Further opportunities will be developed in future revisions of this asset management plan.

Table 4.3. Demand Management Plan

Demand Management Plan

Issue Area for resolution Timing

Population growth & provision of services

Planning for infrastructure and inclusion in Capital Works Plans. Need to develop policy guidelines which consider the costs of providing services to fringe areas which may reduce overall service provision and increase costs to whole community.

Ongoing

Capital Works Program

Achievement Achieved on annual basis.

Maintenance Reporting and costs Annually

Technology Change Effect on Service Delivery

Asset Technology

Quick and prompt action

Improved quality

Better management

Cost saving

Improved productivity

Information Technology Better monitoring and reporting and hence helps in timely decision making

Management and control of the asset in terms of technical and financial issues.

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Staff Staff training program Annually

Asset Management Development of effective Asset Management Plan & System By end 2011

4.4 New Assets from Growth

The new assets required to meet growth will be acquired from land developments and constructed by Council. Council has planned to develop a market place at the old saleyard site and the process is underway.

Acquiring these new assets will commit council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing 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 following assets have been covered in this asset management plan.

Building Category Building ID Building Type

Administration & Civic Centre

AD 001 Administration Building

AD 002 Town Hall

AD 003 Council Chamber

AD 004 Engineers' Building - State Bank

Operational

OP 001 CWLE

OP 002 Depot

OP 003 Apex Caravan Park

OP 004 Sewer Treatment Plant

OP 005 Water Filtration Plant

OP 006 Aerodrome

OP 007 Engineering Services - Demountable

OP 008 Quarry

OP 009 Landrace Subdivision

OP 010 Dog Pound

OP 011 SES

OP 012 RFS

Community

COM 001 Cemetery

COM 002 Guide Hall

COM 003 HACC

COM 004 Hughes Plaza

COM 005 Information Centre

COM 006 Library

COM 007 Medical Centre

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COM 008 Solid Waste Depot

COM 009 Osborne Hall Museum

COM 010 Youth & Community Centre

COM 011 JREC

COM 012 Radio Station

Recreational

REC 001 Swimming Pool

REC 002 Ovals

REC 003 Parks

REC 004 Tennis Centre

REC 005 Gump Swamp

REC 006 Race Course

REC 007 Golf Course

Residential RES 001 Union St Units

RES 002 Prince St Units

Toilet Blocks

TB 001 Albion Park - Toilet Block

TB 002 Apex Park - Toilet Block

TB 003 Victoria Park - Toilet Block - Disabled

TB 004 Victoria Park - Toilet Block - Male / Female

TB 005 Lions Park - Toilet Block - Male / Female

TB 006 Railway Station Park - Toilet Block - Male / Female

TB 007 Gaggin Oval - Toilet Block/Change Rooms

TB 008 Hughie Wilson Oval - Toilet Block

TB 009 Swimming Pool - Dressing Shed Less Toilets & Showers - Male

TB 010 Swimming Pool - Toilets & Showers - Male

TB 011 Aquatic Area - Toilet Block/Change Rooms

TB 012 Rotaract Park - Toilet Block - Male / Female

Council built, purchased and acquired Buildings and Other Structures to provide services to the community. This process begins back in 1891 by constructing the Town Hall and the 2 storied Administration Building and continued up until current by purchasing new Engineers Building. The age profile of the structures is shown in the figures below.

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Fig 2. Asset Age Profile

The age profile has been determined by some historical data and current condition. As we progress with the plan, these figures will be reviewed and be updated accordingly.

5.1.2 Asset capacity and performance

Council’s services are generally provided to meet design standards where these are available.

Locations where deficiencies in service performance are known are detailed in Table 5.1.2.

Table 5.1.2. Known Service Performance Deficiencies

Location Service Deficiency

Library Needs renewal of Air conditioning, floor coverings

Town Hall Upgrade sound system, Air-conditioning

The above service deficiencies were identified from inventory and condition assessment done recently.

5.1.3 Asset condition Council does not have a current asset condition data. But during the process of the implementation of this management plan, necessary steps will be taken to gather current asset conditions for monitoring and for the financial analysis of the system. During the process of implementation of the plan the following condition rating will be considered for the consistency of the overall council policy about the condition assessment.

Condition is measured using a 1 – 5 rating system.2

2 IIMM 2006, Appendix B, p B:1-3 (‘cyclic’ modified to ‘planned’)

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Rating Description of Condition 1 Excellent condition: Only planned maintenance required. 2 Very good: Minor maintenance required plus planned maintenance. 3 Good: Significant maintenance required. 4 Average: Significant renewal/upgrade required. 5 Poor: Unserviceable.

5.1.4 Asset valuations

The value of assets as at June 2011 covered by this asset management plan is summarised below. Assets were last revalued at June, 2011. Assets are valued at Greenfield rates.

Current Replacement Cost = $ 32.63m

Depreciable Amount = $ 32.63m

Depreciated Replacement Cost = $ 21.04m

Annual Depreciation Expense = $ 0.437m

Council’s sustainability reporting reports the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion.

Asset Consumption = $ 0.437m / $ 32.63m

= 1.34%

Asset renewal = $ 0.005 / $ 32.63m

= $ 0.02%

Annual Upgrade/expansion = $ 0.904 / $ 32.63m

= 2.77%

5.2 Risk Management Plan

An assessment of risks3 associated with service delivery from infrastructure assets has identified critical risks to Council. The risk assessment process identifies 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.

Critical risks, being those assessed as ‘Very High’ - requiring immediate corrective action and ‘High’ – requiring prioritised corrective action identified in the infrastructure risk management plan are summarised in Table 5.2.

Table 5.2. Critical Risks and Treatment Plans

Critical Assets of Building & Other structures Infrastructure

Asset at Risk What can Happen Risk Rating (VH, H)

Risk Treatment Plan

Library Collapse, Potential loss of services High Repair, Replacement

Administration Buildings Collapse, Potential loss of services High Repair, Replacement

Town Hall Collapse, Potential loss of services High Repair, Replacement, Remove

HACC Collapse, Potential loss of services, Loss of Revenue

High Repair, Replacement

3 FSC Infrastructure Risk Management Plan

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5.3 Routine Maintenance Plan

Routine maintenance is the regular on-going work that is necessary to keep assets operating, including instances where portions of the asset fail and need immediate repair to make the asset operational again.

5.3.1 Maintenance plan

Maintenance includes reactive, planned and cyclic maintenance work activities.

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

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

Cyclic maintenance is replacement of higher value components/sub-components of assets that is undertaken on a regular cycle including repainting, building roof replacement, etc. This work generally falls below the capital/maintenance threshold.

Maintenance expenditure trends are shown in Table 5.3.1

Table 5.3.1. Maintenance Expenditure Trends

Year

Maintenance

Budget as at 2011

Reactive Expenditure as

at June 2011

Planned Maintenance as

at June 2011

Cyclic Maintenance as

at June 2011

Total Expenditure as

at June 2011

Community Buildings

2010-2011 $ 13,700 $ 57,202 $ - $ - $ 57,202

2009-2010 $ 212,526 $ 210,292 $ - $ 9,937 $ 220,229

2008-2009 $ 218,716 $ 216,417 $ - $ 10,227 $ 226,644

2007-2008 $ 169,892 $ 174,392 $ - $ - $ 174,392

2006-2007 $ 190,137 $ 214,179 $ - $ - $ 214,179

2005-2006 $ 177,857 $ 141,295 $ - $ 53,514 $ 194,809

Community Total $ 982,829 $ 1,013,777 $ - $ 73,678 $ 1,087,456

Average $ 163,805 $ 168,963 $ - $ 12,280 $ 181,243

Corporate & Residential Buildings

2010-2011 $ - $ 3,524 $ - $ - $ 3,524

2009-2010 $ 157,113 $ 142,789 $ - $ - $ 142,789

2008-2009 $ 230,668 $ 195,962 $ - $ 37,443 $ 233,405

2007-2008 $ 139,286 $ 98,044 $ - $ 36,303 $ 134,347

2006-2007 $ 257,268 $ 220,488 $ - $ - $ 220,488

2005-2006 $ 288,947 $ 259,279 $ - $ - $ 259,279

Corp. Total $ 1,073,282 $ 920,086 $ - $ 73,746 $ 993,832

Average $ 178,880 $ 153,348 $ - $ 12,291 $ 165,639

Operational Buildings

2010-2011 $ 4,000 $ 241,745 $ - $ - $ 241,745

2009-2010 $ 444,676 $ 740,905 $ - $ - $ 740,905

2008-2009 $ 256,520 $ 370,682 $ - $ - $ 370,682

2007-2008 $ 457,320 $ 517,301 $ - $ - $ 517,301

2006-2007 $ 158,922 $ 194,272 $ - $ - $ 194,272

2005-2006 $ 544,329 $ 561,175 $ - $ - $ 561,175

Operational Total $ 1,865,767 $ 2,626,080 $ - $ - $ 2,626,080

Average $ 310,961 $ 437,680 $ - $ - $ 437,680

Overall Total $ 3,921,878 $ 4,559,943 $ - $ 147,424 $ 4,707,367

Overall Average $ 653,646 $ 759,990 $ - $ 24,571 $ 784,561

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At the moment council is undertaking all reactive maintenance and there is no planned maintenance program been undertaken.

Maintenance expenditure levels are considered to be inadequate to meet required service levels. Future revision of this asset management plan will include linking required maintenance expenditures with required service levels.

Assessment and prioritisation of reactive maintenance is undertaken by Council staff using experience and judgement.

The expenditures that occurred in the past 5 years to run the infrastructure is a very significant amount and can be seen in the following table.

Year

Operation Expenditure as at June 2011

Budget as at 2011

Management Expenditure as at June 2011

AM Expenditure as

at June 2011

Total Expenditure

Community Buildings

2010-2011 $ 59,500 $ 155,145 $ - $ 155,145

2009-2010 $ 9,785 $ 10,048 $ - $ 10,048

2008-2009 $ 10,070 $ 10,341 $ - $ 10,341

2007-2008 $ 11,100 $ 9,950 $ - $ 9,950

2006-2007 $ 18,290 $ 19,563 $ - $ 19,563

2005-2006 $ 10,880 $ 15,062 $ - $ 15,062

Community Total $ 119,625 $ 220,109 $ - $ 220,109

Average $ 19,938 $ 36,685 $ - $ 36,685


2010-2011 $ - $ - $ - $ -

2009-2010 $ - $ - $ - $ -

2008-2009 $ 21,963 $ 27,301 $ - $ 27,301

2007-2008 $ - $ - $ - $ -

2006-2007 $ 18,550 -$ 1,764 $ - -$ 1,764

2005-2006 -$ 15,718 -$ 17,302 $ - -$ 17,302

Corp. Total $ 24,794 $ 8,235 $ - $ 8,235

Average $ 4,132 $ 1,373 $ - $ 1,373


2010-2011 $ 22,500 $ 220,739 $ - $ 220,739

2009-2010 $ 460,150 $ 915,746 $ - $ 915,746

2008-2009 $ 747,493 $ 1,790,958 $ - $ 1,790,958

Reactive 97%

Planned 0%

Cyclic 3%

Average Maintenance Expenditure in last 5 years

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2007-2008 $ 366,718 $ 1,384,509 $ - $ 1,384,509

2006-2007 $ 36,214 $ 186,980 $ - $ 186,980

2005-2006 $ 691,886 $ 4,231,123 $ - $ 4,231,123

Operational Total $ 2,324,962 $ 8,730,056 $ - $ 8,730,056

Average $ 387,494 $ 1,455,009 $ - $ 1,455,009

Overall Total $ 2,469,382 $ 8,958,401 $ - $ 8,958,401

Overall Average $ 411,564 $ 1,493,067 $ - $ 1,493,067

5.3.2 Standards and specifications

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

AUSSPEC

Council Specifications and Procedures

BCA

5.3.3 Summary of future maintenance expenditures

Future maintenance expenditure is forecast to trend in line with the value of the asset stock as shown in Fig 4. Note that all costs are shown in current 2010-11dollar values.

Fig 4. Planned Maintenance Expenditure

Deferred maintenance, ie works that are identified for maintenance and unable to be funded are to be included in the risk assessment process in the infrastructure risk management plan.

Maintenance is funded from Council’s operating budget and grants where available. This is further discussed in Section 6.2.

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5.4 Renewal/Replacement Plan

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

5.4.1 Renewal plan

Assets requiring renewal are identified from estimates of remaining life obtained from the asset register worksheets on the ‘Planned Expenditure template’. Candidate proposals are inspected to verify accuracy of remaining life estimate 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 in Table 5.4.1.

Table 5.4.1 Renewal Priority Ranking Criteria

Criteria Weighting

Compliance 70 %

Demand 20 %

Condition 10 %

Total 100 %

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 carried out in accordance with the following Standards and Specifications.

BCA

Compliance with standards

AUSSPEC

5.4.3 Summary of future renewal expenditure

The Current renewal and upgrade trend for Council’s Building & Other Structures are shown in the table below.

Year

Renewal & Upgrade Expenditure

Budget as at 2011

Planned Renewal as

at June 2011

Planned Upgrade/New

Expenditure as at June 2011

Growth Asset Construction/Funded by Council as at June 2011

Total Expenditure as

at June 2011

Community Buildings

2010-2011 $ 20,000 $ - $ 87,515 $ 84,147 $ 171,662

2009-2010 $ 2,589,781 $ - $ 4,974 $ 372,854 $ 377,828

2008-2009 $ 2,661,660 $ - $ 5,119 $ 368,321 $ 373,440

2007-2008 $ 781,917 $ - $ 23,272 $ 182,185 $ 205,457

2006-2007 $ 22,090 $ - $ 11,985 $ 9,393 $ 21,377

2005-2006 $ 24,713 $ - $ 12,060 $ 4,560 $ 16,620

Community Total $ 6,100,160 $ - $ 144,925 $ 1,021,460 $ 1,166,385

Average $ 1,016,693 $ - $ 24,154 $ 170,243 $ 194,398


2010-2011 $ 3,000 $ - $ 7,494 $ - $ 7,494

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2009-2010 $ 15,450 $ 15,291 $ - $ - $ 15,291

2008-2009 $ 1,060 $ - $ 987 $ - $ 2,047

2007-2008 $ - $ - $ - $ - $ -

2006-2007 $ - $ - $ - $ - $ -

2005-2006 $ - $ - $ - $ - $ -

Corp. Total $ 19,510 $ 15,291 $ 8,481 $ - $ 24,832

Average $ 3,252 $ 2,548 $ 1,414 $ - $ 4,139


2010-2011 $ - $ - $ - $ 413,309 $ 413,309

2009-2010 $ 1,257,492 $ - $ - $ 1,158,450 $ 1,158,450

2008-2009 $ 62,323 $ - $ - $ 72,532 $ 72,532

2007-2008 $ 55,500 $ - $ - $ 334,483 $ 334,483

2006-2007 $ 17,228 $ 10,602 $ - $ - $ 10,602

2005-2006 $ 2,311,636 $ 875 $ - $ 2,271,337 $ 2,272,212

Operational Total $ 3,704,179 $ 11,477 $ - $ 4,250,112 $ 4,261,589

Average $ 617,363 $ 1,913 $ - $ 708,352 $ 710,265

Overall Total $ 9,823,850 $ 26,768 $ 153,406 $ 5,271,572 $ 5,452,805

Overall Average $ 1,637,308 $ 4,461 $ 25,568 $ 878,595 $ 908,801

Projected future renewal expenditures are forecast to increase over time as the asset stock ages. The costs are summarised in Fig 5. Note that all costs are shown in current 2010-11dollar values.

The projected capital renewal program is shown in Appendix B.

Planned Renewal 0%

Planned Upgrade / New 3%

Growth 97%

Average Renewal & Growth Expenditure in last 5 years

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Fig 5. Projected Capital Renewal Expenditure

- 28 -


- 29 -


The Generation indicates the renewal cycle with respect to the lifecycle of an asset. For example if the second renewal of a particular asset comes up within this 20 years plan period then it will be treated as the second generation renewal of the assets. And the graph will show accordingly.

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 or environmental needs. Assets may also be acquired at no cost to the Council from land development. These assets from growth are considered 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 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 New Assets Priority Ranking Criteria

Criteria Weighting

Community requests 30 %

Community Strategic Plan 50 %

Obsolescence 20 %

Total 100 %

5.5.2 Standards and specifications

Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those for renewal shown in Section 5.4.2.

5.5.3 Summary of future upgrade/new assets expenditure

Planned upgrade/new asset expenditures are summarised in Fig 6. The planned upgrade/new capital works program is shown in Appendix C. All costs are shown in current 2010-11 dollar values.

Fig 6. Planned Capital Upgrade/New Asset Expenditure

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.

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5.6 Disposal Plan

Disposal includes any activity associated with disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 5.6. These assets will be further reinvestigated to determine the required levels of service and see what options are available for alternate service delivery, if any.

At the moment council did not identify any assets to be disposed off under this category. But during implementation phase of this plan, the assets will be reviewed and any disposal comes up will be incorporated with this 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 20 years long term financial planning can be seen in the table below. It indicates that if our trend of renewal remains same for the next 20 years, there will be a gap of $4.024m. To minimise the gap, council needs to be provide funding for the projected renewal program.

The operations and Maintenance Expenditure need to be funded to ensure the level of services.

Year End

Jun-30

Total Operations Expenditur

e ($'000)

Total Maintenanc

e Expenditur

e ($'000)

Projected Capital

Renewal Expenditur

e ($'000)

Planned Capital

Upgrade / New

Expenditure ($'000)

Planned Disposals

($,000)

Planned Capital

Renewal Expenditu

re

Shortfall in

Renewal Expenditu

re (Projecte

d - Planned) ($'000)

Cumula

tive Renewa

l Funding Shortfall ($'000)

2012 $ 1,534 $ 807 $ 41 $ 904 $ - $ 5 $ 36 $ 36

2013 $ 1,576 $ 829 $ 77 $ 904 $ - $ 5 $ 72 $ 107

2014 $ 1,617 $ 850 $ 84 $ 904 $ - $ 5 $ 79 $ 186

2015 $ 1,658 $ 872 $ 20 $ 904 $ - $ 5 $ 15 $ 201

Total for 1st 4 yrs

$ 6,386 $ 3,358 $ 221 $ 3,616 $ - $ 20 $ 201 $ 531

2016 $ 1,700 $ 894 $ 111 $ 904 $ - $ 5 $ 106 $ 307

2017 $ 1,741 $ 916 $ 73 $ 904 $ - $ 5 $ 68 $ 375

2018 $ 1,783 $ 937 $ 6 $ 904 $ - $ 5 $ 1 $ 376

2019 $ 1,824 $ 959 $ 4 $ 904 $ - $ 5 -$ 1 $ 375

2020 $ 1,865 $ 981 $ 20 $ 904 $ - $ 5 $ 15 $ 389

2021 $ 1,907 $ 1,003 $ 14 $ 904 $ - $ 5 $ 9 $ 398

Total for 1st 10 yrs

$ 17,205 $ 9,046 $ 448 $ 9,040 $ - $ 50 $ 398 $ 2,751

2022 $ 1,948 $ 1,024 $ 156 $ 904 $ - $ 5 $ 151 $ 549

2023 $ 1,989 $ 1,046 $ 17 $ 904 $ - $ 5 $ 12 $ 561

2024 $ 2,031 $ 1,068 $ 39 $ 904 $ - $ 5 $ 34 $ 595

2025 $ 2,072 $ 1,090 $ 16 $ 904 $ - $ 5 $ 11 $ 606

2026 $ 2,114 $ 1,111 $ 1,702 $ 904 $ - $ 5 $ 1,697 $ 2,303

2027 $ 2,155 $ 1,133 $ 63 $ 904 $ - $ 5 $ 58 $ 2,361

2028 $ 2,196 $ 1,155 $ 110 $ 904 $ - $ 5 $ 105 $ 2,466

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2029 $ 2,238 $ 1,177 $ 21 $ 904 $ - $ 5 $ 16 $ 2,481

2030 $ 2,279 $ 1,198 $ 130 $ 904 $ - $ 5 $ 125 $ 2,607

2031 $ 2,320 $ 1,220 $ 1,422 $ 904 $ - $ 5 $ 1,417 $ 4,024

Total for 2nd 10

yrs $ 21,342 $ 11,221 $ 3,676 $ 9,040 $ - $ 50 $ 3,626 $18,552

Total for 20 years

$ 38,547 $ 20,268 $ 4,124 $ 18,080 $ - $ 100 $ 4,024 $ 1,303

The financial projections are shown in Fig 7 for projected operating (operations and maintenance) and capital expenditure (renewal and upgrade/expansion/new assets).

Fig 7. Planned Operating and Capital Expenditure

Note that all costs are shown in current 2010-11 dollar values.

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6.1.1 Sustainability of service delivery

There are two key indicators for financial sustainability that have been considered in the analysis of the services provided by this asset category, these being long term life cycle costs and medium term costs over the 10 year financial planning period.

Long term - Life Cycle Cost

Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service levels over the longest asset life. In this case it is considered a 20 years period. Life cycle costs include maintenance and asset consumption (depreciation expense). The total Life Cycle Cost for a period of 20 years is a sum of O&M Cost plus Depreciation cost for that period. For the Buildings & Other Structure Assets the cost is $ 70.098m ($38.547m + 20.268m + $11.283m) The annual average life cycle cost for the services covered in this asset management plan is $ 3.505 m.

Life cycle costs 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 expenditure will vary depending on the timing of asset renewals. The life cycle expenditure at the start of the plan is $ 2.382 m.

A gap between life cycle costs and life cycle expenditure gives an indication as to whether present consumers are paying their share of the assets they are consuming each year. The purpose of this Building & Other Structures Asset Management Plan is to identify levels of service that the community needs and can afford and develop the necessary long term financial plans to provide the service in a sustainable manner.

The life cycle gap for services covered by this asset management plan is $ 0.201m per annum. The life cycle sustainability index is 0.68.

Medium term – 10 year financial planning period

The medium term Life cycle costs are the average costs that are required to sustain the service levels over the medium term asset life. In this case it is considered a 10 years period. Life cycle costs include maintenance and asset consumption (depreciation expense). The total Life Cycle Cost for a period of 0 years is a sum of O&M Cost plus Depreciation cost for that period. For the Buildings & Other Structure Assets the cost is $ 31.287m ($17.205m + 9.046m + $5.036m) The annual average life cycle cost for the services covered in this asset management plan is $ 3.129 m.

Medium term Life cycle costs can be compared to life cycle expenditure to give an indicator of sustainability in service provision. Medium term Life cycle expenditure includes maintenance plus capital renewal expenditure. Life cycle expenditure will vary depending on the timing of asset renewals. The life cycle expenditure at the start of the plan is $ 2.382 m.

A gap between life cycle costs and life cycle expenditure gives an indication as to whether present consumers are paying their share of the assets they are consuming each year. The purpose of this Building & Other Structures Asset Management Plan is to identify levels of service that the community needs and can afford and develop the necessary long term financial plans to provide the service in a sustainable manner.

The Medium term life cycle gap for services covered by this asset management plan is $ 0.398m per annum. The Medium term life cycle sustainability index is 0.76.

This asset management plan identifies the estimated maintenance and capital expenditures required to provide an agreed level of service to the community over a 20 year period for input into a 10 year financial plan and funding plan to provide the service in a sustainable manner.

This may be compared to existing or planned expenditures in the 20 year period to identify any gap. In a core asset management plan, a gap is generally due to increasing asset renewals.

Fig 8 shows the projected asset renewals in the 20 year planning period from the asset register. The projected asset renewals are compared to planned renewal expenditure in the capital works program and capital renewal expenditure in year 1 of the planning period as shown in Fig 8. Table 6.1.1 shows the annual and cumulative funding gap between projected and planned renewals.

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Fig 8. Projected and Planned Renewals and Current Renewal Expenditure

The following table shows the expected funding gap for council’s Buildings and Other Structures.

Year End Jun-30

Projected Capital Renewal Expenditure

($'000)

Planned Capital Renewal Expenditure

Shortfall in Renewal Expenditure (Projected -

Planned) ($'000)

Cumulative Renewal Funding Shortfall

($'000)

2012 $ 41 $ 5 $ 36 $ 36

2013 $ 77 $ 5 $ 72 $ 107

2014 $ 84 $ 5 $ 79 $ 186

2015 $ 20 $ 5 $ 15 $ 201

Total for 1st 4 yrs

$ 221 $ 20 $ 201 $ 531

2016 $ 111 $ 5 $ 106 $ 307

2017 $ 73 $ 5 $ 68 $ 375

2018 $ 6 $ 5 $ 1 $ 376

2019 $ 4 $ 5 -$ 1 $ 375

2020 $ 20 $ 5 $ 15 $ 389

2021 $ 14 $ 5 $ 9 $ 398

Total for 1st 10 yrs

$ 448 $ 50 $ 398 $ 2,751

2022 $ 156 $ 5 $ 151 $ 549

2023 $ 17 $ 5 $ 12 $ 561

2024 $ 39 $ 5 $ 34 $ 595

2025 $ 16 $ 5 $ 11 $ 606

2026 $ 1,702 $ 5 $ 1,697 $ 2,303

- 34 -


2027 $ 63 $ 5 $ 58 $ 2,361

2028 $ 110 $ 5 $ 105 $ 2,466

2029 $ 21 $ 5 $ 16 $ 2,481

2030 $ 130 $ 5 $ 125 $ 2,607

2031 $ 1,422 $ 5 $ 1,417 $ 4,024

Total for 2nd 10 yrs

$ 3,676 $ 50 $ 3,626 $ 18,552

Total for 20 years

$ 4,124 $ 100 $ 4,024 $ 21,303

Table 6.1.1 Projected and Planned Renewals and Expenditure Gap

Providing services in a sustainable manner will require matching of projected asset renewals to meet agreed service levels with planned capital works programs and available revenue.

A gap between projected asset renewals, planned asset renewals and funding indicates that further work is required to manage required service levels and funding to eliminate any funding gap.

Council will manage the ‘gap’ by developing this asset management plan to provide guidance on future service levels and resources required to provide these services, and that will minismise the gap and improve the delivery of services.

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 is detailed in the Council’s 10 year long term financial plan.

Achieving the financial strategy will require to find out the avenue of finding grants and community participations.

6.3 Valuation Forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Council and from assets constructed by land developers and others and donated to Council. Fig 9 shows the projected replacement cost asset values over the planning period in current 2010-11 dollar values.

Fig 9. Projected Asset Values

- 35 -


Depreciation expense values are forecast in line with asset values as shown in Fig 10.

Fig 10. Projected Depreciation Expense

The depreciated replacement cost (current replacement cost less accumulated depreciation) 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. Forecast of the assets’ depreciated replacement cost is shown in Fig 11.

Fig 11. Projected Depreciated Replacement Cost

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6.4 Key Assumptions made in Financial Forecasts

This section details the key assumptions made in presenting the information contained in this 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 asset management plan are:

The expenses are the average of last 10 years in this asset category;

The cost are based on the current available data of the assets;

The replacement costs are considered on the Greenfield method i.e. replacing with equivalent modern one with same capacity and as new;

The life of the asset has been considered from historical references and some condition based.

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

Introducing capitalisation policy;

Condition based life determination;

Rightly defining expense type;

Reviewing technical and financial data on a regular basis.

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7. ASSET MANAGEMENT PRACTICES

7.1 Accounting/Financial Systems

Summary of Accounting and Financial System:

The current financial data had been extracted from FSC financial application Fujitsu. Council has recently introduced a new software suite ‘CIVICA AUTHORITY 6.2 and all financial and technical data will be incorporated in a single system in future.

Accountabilities and responsibilities for Financial System:

Annual budget estimation- Asset Engineer, Director Environmental Services, Manager Engineering Services

Annual expenditure for maintenance and capital works – Director Environmental Services, Manager Engineering Services

Capitalisation of New, renewal or expansion works – Director Environmental Services, Manager Engineering Services,

Finance Manager and Asset Engineer.

Asset valuation/revaluation – Asset Engineer.

Calculating Annual Depreciation Accumulated Depreciation, Average Annual Consumption of Assets - Asset Engineer and Finance Manager.

Compliance of accounting standards/regulations/guideline:

At the moment council is following Australian equivalent of International Financial Reporting Standards (IFRS) and AASB 116 “Property, plant, equipment” as guidance and standards to maintain council’s Accounts and Finance matters in terms of Assets. The standards are the replacement of the past practiced AAS27 and AAS29 for Financial Reporting by Local Government Departments.

Capital/Maintenance threshold policy:

Council does not have any Capital/ Maintenance threshold policy at the moment. Decisions are made based on past history and in home expertise.

Changes to accounting / financial systems resulting from this IAMP

Incorporating Asset data with the financial strategy.

Consistency in reporting.

7.2 Asset Management Systems

Summary of Asset Management System:

At the moment the Water Asset Management System is recorded in the Excel format. All data and financial analysis are done by Excel. Council has introduced a software suite ‘CIVICA AUTHORITY” that will develop more efficient data capture and data handling process. We also use MapInfo for better data manipulation.

Summary of how AM Systems are linked to accounting/financial system:

CIVICA AUTHORITY has the capability to link between Asset management and the accounting/financial system. During the implementation period of this management plan we will be able to develop a linkage with the two systems.

Accountabilities and Responsibilities for AM System:

Maintain asset register with the records of the updated data

Prediction of various factors affecting future demand on services

Correlations between maintenance and renewal, including decay models

Perform condition assessment

Valuation and Depreciation projections of assets

Maintain Financial records of the assets

Prepare the programmed maintenance plan and budget

- 38 -


Monitor the condition

Monitor the performance of the assets

Monitor the maintenance programs

Program capital/renewal/upgrade jobs

Capitalisation of works done

Changes to asset management systems resulting from this IAMP:

Modifications of asset categories and sub-categories to assist in maintenance management systems

Changing to work order system for job planning and control

Improving the quality of specific data

Improving software systems and links to other systems

Adopting a more frequent reconciliation cycle between the financial and technical asset registers.

7.3 Information Flow Requirements and Processes

The key information flows into this asset management plan are:

The asset register data on dimension, age, value, remaining life of the network;

The unit rates for categories of work/material;

The adopted service levels;

Projections of various factors affecting future demand for services;

Correlations between maintenance and renewal, including decay models;

Data on new assets acquired by council.

The key information flows from this asset management plan are:

Prediction models

The Works Program and trends;

The resulting budget, valuation and depreciation projections;

Renewal Program;

Management Report;

The useful life analysis.

These will impact the Long Term Financial Plan, Strategic Business Plan, annual budget and departmental business plans and budgets.

Summary of information flow processes from AM to Financial Systems:

Making decisions on asset management.

Asset renewals and acquisitions.

Recording new assets in the asset register.

Recognising new assets in the financial system.

Recording planned maintenance work activities.

Recording reactive maintenance work activity.

Transferring information from the technical asset register to the financial asset register.

Summary of new asset recognition and capitalisation process:

Council does not have any policy for asset recognition or for capitalisation of the works implemented. During the period of this plan the relevant policies will be developed and be enforced.

- 39 -


7.4 Standards and Guidelines

The Building & Other structures Asset Management Plan Proposed policy can be seen in the appendix. Once it is adopted by the council, it will come into effect. The related procedure for the implementation of the policy will be developed in ongoing process of the plan.

8. PLAN IMPROVEMENT AND MONITORING

8.1 Performance Measures

The effectiveness of the asset management plan can be measured in the following ways:

The degree to which the required cashflows identified in this asset management plan are incorporated into council’s long term financial plan and Strategic Management Plan;

The degree to which 1-5 year detailed works programs, budgets, business plans and organisational structures take into account the ‘global’ works program trends provided by the asset management plan;

8.2 Improvement Plan

The asset management improvement plan generated from this asset management plan is shown in Table 8.2.

Table 8.2 Improvement Plan

Ref Task Responsibility Target Date

Budget

1

Ensure Community Strategic Plan (CSP) aligns with funds available in Long Term Financial Planning (LTFP) and reports on service levels achievable in Asset Management Plans (AMP) and Asset Management (AM) Strategy. (Performance measures in CSP need to align with community service levels in AMP’s)

GM Feb-12

2 Ensure that budget sets out how CSP objectives are achieved. GM Apr-12

3 Ensure annual report explains the impacts of Special Schedule 7 and whether service levels are likely to decline. (consider having %poor/v poor linked to technical service level in AMP’s)

GM Jun-12

4 Review; update AMP’s, AM Policy and AM Strategy. DETS, DES Dec-11

5 Council adopts AMP’s, AM Policy and AM Strategy. Council Dec-12

6 Implement a formal quarterly review to review any high risks and AM delivery program progress.

GM Jun-12

7 Ensure processes are in place to report on performance targets in AMP’s and LoS. Report both inspirational and actual targets.

GM Jun-12

8 Formalise process for renewal and maintenance planning to ensure that the forward works program aligns with asset register and AMP’s.

GM Jun-12

9 Implement a knowledge Management Strategy to establish future role of Mapinfo, REFLECT, NAMS.Plus, Civica service requests, AIM etc.

GM Jun-12

9 Ensure asset accounting policy is in place for capitalization and asset register updates.

GM Apr-12

10 Implement a documented formal process for asset handover, annual updating of unit costs and revaluations based on condition.

Council Jun-12

11 Ensure all high residual risks are transferred to the corporate risk register.

DETS, DES Jun-12

12 Ensure resources are available for programmed asset Condition Assessment reviews.

DETS, DES Jun-12

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8.3 Monitoring and Review Procedures

This asset management plan will be reviewed during annual budget preparation and amended to recognise any changes in service levels and/or resources available to provide those services as a result of the budget decision process.

The Plan has a life of 4 years and is due for revision and updating within 2 years of each Council election.

The following graphs show Council’s current and future capability in performing the activities related to Asset Management, Financial Control and Stewardship. We need to emphasise more on the areas that we have a gap. We need to review our performance level on a regular interval during the implementation of the plan.

- 41 -


REFERENCES

Forbes Shire Council, ‘Business Management Plan 2010-11

Forbes Shire Council, Annual Plan and Budget.

DVC, 2006, ‘Asset Investment Guidelines’, ‘Glossary’, Department for Victorian Communities, Local Government Victoria, Melbourne, http://www.dvc.vic.gov.au/web20/dvclgv.nsf/allDocs/RWP1C79EC4A7225CD2FCA257170003259F6?OpenDocument

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

APPENDICES

Appendix A Projected 10 years Capital Renewal Works Program;

Appendix B Risk Register;

Appendix C Risk Management Plan

Appendix D List of Buildings & Other Structures

http://www.dvc.vic.gov.au/web20/dvclgv.nsf/allDocs/RWP1C79EC4A7225CD2FCA257170003259F6?OpenDocument

http://www.ipwea.org.au/

- 42 -


APPENDIX A : PROJECTED 10 YEARS RENEWAL PROGRAM

Renewal Program (Buildings and Other Structures_2012)

Asset ID Sub Category Asset Name From

To Remaining

Life (Years)

Planned Renewal

Year

Renewal Cost ($)

Useful Life

(Years)

OS COM 003 002

HACC Storage Shed 0 2012 $ 4,498 31

B 006 018 Library 6 x 7.11 Standard Carpet

0 2012 $ 3,332 15

OS COM 008 003

Solid Waste Depot Bedgerebong Tip Fence

0 2012 $ 32,912 16

Total for 2012 $ 40,742

B AD 001 070 Adminstration Building

Paint 1 2013 $ 700 10


Paint 1 2013 $ 653 10

B 006 022 Library 6 x 4.2 Paint 1 2013 $ 294 10

B 006 020 Library 6 x 4.2 Paint 1 2013 $ 216 10

B 006 023 Library 6 x 7.11 Paint 1 2013 $ 497 10

B 006 019 Library 7.11 x 4.2 Paint 1 2013 $ 348 10

B 006 021 Library 7.11 x 4.2 Paint 1 2013 $ 348 10

B 006 056 Library Ceiling Paint 1 2013 $ 500 10

B 006 069 Library Ceiling Paint 1 2013 $ 1,438 10

B 006 063 Library Paint 1 2013 $ 574 10

B 006 048 Library Paint 1 2013 $ 141 10

B 006 049 Library Paint 1 2013 $ 89 10

B 006 052 Library Paint 1 2013 $ 352 10

B 006 053 Library Paint 1 2013 $ 352 10

B 006 054 Library Paint 1 2013 $ 217 10

B 006 055 Library Paint 1 2013 $ 217 10

B 006 034 Library Paint 1 2013 $ 52 10

B 006 004 Library Paint on Brick Surface

1 2013 $ 784 10

B 006 059 Library Paint on Jyprock 1 2013 $ 329 10




B 006 002 Library Paint on Rendered Surface

1 2013 $ 1,237 10


1 2013 $ 515 10


1 2013 $ - 10


1 2013 $ 344 10

OS COM 008 004

Solid Waste Depot Garema Tip Fence 1 2013 $ 65,582 17

Total for 2013 $ 76,589


Double Fluro Lights 2 2014 $ 484 3


Double Power Point 2 2014 $ 95 3


Mortar 2 2014 $ 8,350 10


Paint 2 2014 $ 410 10

- 43 -



Paint 2 2014 $ 835 10


Paint 2 2014 $ 439 10


Paint (Original Building)

2 2014 $ 7,956 10


Skirting Tile 2 2014 $ 279 3


Tiles 2 2014 $ 1,405 3


Wall Tile 2 2014 $ 2,101 3


West Wing Exterior Walls

2 2014 $ 898 10

B 006 050 Library Font counter 2 2014 $ 5,040 15

OS COM 008 002

Solid Waste Depot Warroo Tip Fence 2 2014 $ 55,660 13

Total for 2014 $ 83,950


Combination Tap Set

3 2015 $ 407 24

B 006 051 Library Standard Carpet 3 2015 $ 3,348 15

B 006 047 Library Standard Carpet 3 2015 $ 947 15




Total for 2015 $ 20,037

Total for 1st 4 years $ 221,318


Bip Tap 4 2016 $ 174 25


Bip Tap 4 2016 $ 174 25


Bip Tap 4 2016 $ 174 25


Combination Tap Set

4 2016 $ 627 25


Combination Tap Set

4 2016 $ 1,551 25


Combination Tap Set

4 2016 $ 1,122 25


Combination Tap Set

4 2016 $ 374 25


Single Fluro Lights 4 2016 $ 165 5


Toilet Seat 4 2016 $ 99 25


Toilet Seat 4 2016 $ 198 25


Toilet Seat 4 2016 $ 198 25

B COM 001 Cemetery Storage Area / Toilet 4 2016 $ 58,196 45

OS COM 008 005

Solid Waste Depot Wirrinya Tip Fence 4 2016 $ 47,916 20

Total for 2016 $ 110,967


Carpet 5 2017 $ 2,467 15


Carpet 5 2017 $ 937 15








Stick on Vinyl 5 2017 $ 254 18

- 44 -



Tiles 5 2017 $ 1,405 3


Wall Tile 5 2017 $ 2,101 3

OA OP 003 008 Caravan Park Light - 1 Light 5 2017 $ 196 11

OA OP 003 006 Caravan Park Lights - 1 Lights 5 2017 $ 1,175 11

OA OP 003 011 Caravan Park Park Seats 5 2017 $ 352 16

B 006 012 Library 2.27x1.18 Timber Framed Window x 11

5 2017 $ 16,387 25

B 006 011 Library 2.27x1.18 Timber Framed Window x2

5 2017 $ 2,975 25

B 006 013 Library 2.32x1.03 Aluminium Framed Windows x6

5 2017 $ 7,582 25

B 006 029 Library Bip Tap 5 2017 $ 174 20

B 006 015 Library Colourbond down pipe

5 2017 $ 1,051 25

B 006 014 Library Colourbond Guttering

5 2017 $ 3,810 25

B 006 031 Library Combination Mixer 5 2017 $ 374 20

B COM 006 001 Library Corrigated Iron 5 2017 $ 29,447 45

B 006 003 Library Rendered Serface 5 2017 $ 1,237 35

B 006 028 Library Toilet Seat 5 2017 $ 99 20

Total for 2017 $ 72,880


Paint 6 2018 $ 6,030 10

Total for 2018 $ 6,030

OA OP 003 012 Caravan Park Picnic Tables 7 2019 $ 264 23

OS OP 002 022 Depot

Gate - Personal Access Gate - Demountable to yard - 2.4m high and 1m wide.

7 2019 $ 483 38

B 006 067 Library Painted Surfaces 7 2019 $ 319 10

B 006 065 Library Painted Surfaces 7 2019 $ 319 10

OS COM 008 008

Solid Waste Depot Water Tank on Tower

7 2019 $ 2,200 33

Total for 2019 $ 3,585








Tiles 8 2020 $ 1,405 3


Wall Tile 8 2020 $ 2,101 3

B 006 076 Library Paint 8 2020 $ 830 10

B 006 077 Library Painted Surfaces 8 2020 $ 1,540 10

B 006 017 Library Reverse Cycle A/c 8 2020 $ 6,194 10


OS COM 008 006

Solid Waste Depot Waste Oil shed 8 2020 $ 1,031 16

Total for 2020 $ 19,520




Double Fluro Lights 9 2021 $ 1,452 10



- 45 -





Floor Waste 9 2021 $ 25 30


Floor Waste 9 2021 $ 25 30


Floor Waste 9 2021 $ 25 30


Paint 9 2021 $ 372 10


Paint 9 2021 $ 215 10


Paint 9 2021 $ 904 10


Paint 9 2021 $ 2,481 10


Paint (jyprock) 9 2021 $ 112 10


Paint Finish 9 2021 $ 700 10


Painted 9 2021 $ 424 10


Single Fluro Lights 9 2021 $ 165 5


Single Power point 9 2021 $ 95 10


Vinyl/Lino 9 2021 $ 682 10


Wall Cistern 9 2021 $ 222 30

OS OP 003 003 Caravan Park Post & Rail Barracade (pine)

9 2021 $ 1,040 20

B 006 035 Library Baton holder lght with energy saver

9 2021 $ 119 10

B 006 046 Library Baton holder lght with energy saver

9 2021 $ 119 10

B 006 040 Library Bip Tap 9 2021 $ 174 10

B 006 072 Library Ceiling Paint 9 2021 $ 277 10

B 006 042 Library Combination Mixer 9 2021 $ 374 10

B 006 043 Library Floor Waste 9 2021 $ 25 10

B 006 041 Library Hand Basin 9 2021 $ 484 10

B 006 045 Library Paint 9 2021 $ 30 10

B 006 044 Library Painted on Rendered Surface

9 2021 $ 215 10

B 006 036 Library Standard tile 9 2021 $ 305 10

B 006 037 Library Toilet Pan 9 2021 $ 270 10

B 006 039 Library Toilet Seat 9 2021 $ 99 10

B 006 038 Library Wall Cistern 9 2021 $ 222 10

B 006 066 Library Wood Veneer 9 2021 $ 539 10

B 006 068 Library Wood Veneer 9 2021 $ 319 10

Total for 2021 $ 13,656

Renewal for 1st 10 years $ 447,955

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APPENDIX – B – RISK REGISTER

Buildings & Other Structure Risk Register

RISK IDENTIFICATION RISK ANALYSIS RISK TREATMENT RISK TREATMENT PLAN

Risk No.

Asset at Risk What can happen?

When can it

occur?

Possible cause

Existing controls

Is risk credible?

Likelihood Consequences Risk rating

Action required

Is risk acceptable?

Treatment option(s)

Residual risk

Risk treatment

plan

Actions Responsibility Resources Budget Date due

1 Library Collapse, Potential loss of services

Anytime in the future

Age, environmental factors

Inspections, Customer Requests

Yes Possible Major High Prioritised action

required

Yes Repair, Replacement

Low Reinspection, Unscheduled Works

- Inspect - Implement - Monitor

- Director Environmental Services

Staff time 10 K 6 /12

2 Administration Buildings

Collapse, Potential loss of services



Inspections Yes Possible Major High Prioritised action

required


Low Reinspection, Programmed Works




3 Town Hall Collapse, Potential loss of services



Inspections, Customer Requests

Yes Possible Major High Prioritised action

required

Yes Repair, Replacement, Remove





4 Water Filtration Plant Buildings

Collapse of Workshop

Within 10 years


Inspections Yes Possible Minor Medium Planned action

required




- Supervisor - Manager Technical Services


5 Sewer Plant Buildings

Lab building at risk

Within 20 years


Inspections Yes Likely Minor Medium Planned action

required




- Supervisor - Manager Technical Services


6 HACC Collapse, Potential loss of services, Loss of Revenue

Within 20 years


Inspections Yes Possible Moderate High Prioritised action

required






7 Museum Collapse, Potential loss of services

Within 10 years



required






8 Grinstead Oval - Clubhouse


Within 20 years



required




- Supervisor - Manager Engineering Services


9 Cemetery - Storage Shed & Toilet Block




Inspections Yes Likely Minor Medium Planned action

required




- Supervisor - Manager Engineering Services


- 47 -


APPENDIX – C – RISK MANAGEMENT PLAN

FORBES SHIRE COUNCIL

RISK MANAGEMENT PLAN

BUILDINGS & OTHER STRUCTURES

Version 1.1

February, 2011

48

Document Control

Document ID: 59_07_070909 nams.plus core irmp template v6

Rev No Date Revision Details Author Reviewer Approver

11/3/09 Modified Risk Management definition DET

© Copyright 2007 – All rights reserved.

The Institute of Public Works Engineering Australia.

- 49 -

1. INTRODUCTION

1.1 Aim

The purpose of this core infrastructure risk management plan is to document the results and recommendations resulting from periodic identification, assessment and treatment of risks associated with providing services to the community from Transport infrastructure of Forbes Shire Council, using the fundamentals of Australian Standard for Risk Management, AS/NZS 4360; 2004.

Risk Management is the systematic application of management policies, procedures and practices to the tasks of identifying, analysing, assessing, treating and monitoring risk.

1.2 Objectives

The objectives of the plan are:

to identify risks to the Forbes Shire Council that may impact on the delivery of services to the Transport infrastructure;

to select credible risks involve in Transport infrastructure for detailed analysis;

to analyse and evaluate risks in accordance with AS/NZS 4360:2004,

to prioritise risks,

to identify risks requiring treatment by management action,

to develop risk treatment plans identifying the tasks required to manage the risks, the person responsible for each task, the resources required and the due completion date.

1.3 Core Risk Management

This core risk management plan has been designed to be read as a supporting document to the Transport infrastructure and Transport asset management plan. It has been prepared using the fundamentals of Australian Standard for Risk Management, AS/NZS 4360:2004.

Future revisions of this risk management plan will move toward more comprehensive documentation in accordance with Australian Standard for Risk Management, AS/NZS 4360:2004.

1.4 Scope

This plan considers risks associated with delivery of services from Transport infrastructure.

1.5 The Risk Management Context

Forbes Shire Council is implementing many management practices and procedures to identify and manage risks associated with providing services from Transport infrastructure assets. These include:

operating a reactive maintenance service for all assets and services;

operating a planned maintenance system for key assets;

monitoring condition and remaining service life of assets nearing the end of their service life;

renewing and upgrading assets to maintain service delivery;

closing and disposing of assets not providing the required service level; and

acquiring or constructing new assets to provide new and improved services.

Council has assigned responsibilities for managing risks associated with assets and service delivery to the following departments.

Responsibility of Department of Engineering and Technical Services

Operation, management and maintenance of Transport related assets;

Condition assessment, preparation of reactive and planned maintenance program;

Preparation of budget, controlling expenditure;

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Preparation of long term strategic management plan;

Renewal / Upgrading of existing Network;

Keeping records of the complaints and responding accordingly;

Reporting to the concerned authority on timely basis;

Monitoring the physical and technical condition of the assets;

Performing routine tests and applying the results in future maintenance and renewal works;

Arranging relevant training program for the employees;

Ensuring OHS issues; and

Customer consultation.

Responsibility of Department of Corporate Services

Ensure funds are available to maintain and manage the Transport system;

Monitoring the financial position and advising thereby;

Preparation of annual management report in accordance with AAS 116 guidelines; and

Arrange fund for new construction and upgrading of existing system.

1.6 Risk Management Model

The risk management process used in this project is shown in Fig 1.6 below.

It is an analysis and problem solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks.

The process is based on the fundamentals of Australian Standard AS/NZS 4360:2004, Risk Management.

Fig 1.6. Risk Management Process – Abridged Source: Adapted from AS/NZS 4360:2004, Fig 3.1 p 13

TREAT RISKS

- Identify options

- Assess options

- Treatment plans

ANALYSE &

EVALUATE RISKS

- Consequences

- Likelihood

- Level of Risk

- Evaluate

IDENTIFY RISKS

- What can happen ?

- When and why ?

- How and why ?

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2. COMMUNICATION AND CONSULTATION

Risk communication is ‘the interactive process of exchange of information and opinion involving multiple messages about the nature of risk and risk management’. 4

‘Appropriate communication and consultation seeks to:

Improve people’s understanding of risks and the risk management processes;

Ensure that the varied views of stakeholders are considered; and

Ensure that all participants are aware of their roles and responsibilities.’

The development of this infrastructure risk management plan was undertaken using a consultative team approach to:-

Identify stakeholders and specialist advisors who need to be involved in the risk management process;

Discuss and take into account the views of stakeholder and specialist advisors; and

Communicate the results of the risk management process to ensure that all stakeholders are aware of and understand their roles and responsibilities in risk treatment plans.

Members of the team responsible for preparation of this risk management plan are:

DETS;

Manager Engineering Services;

Manager Technical Services

Asset Engineer;

Project Engineer

Urban Services Supervisor;

3. RISK IDENTIFICATION

3.1 General

Potential risks associated with providing services from infrastructure were identified at meetings of the council’s infrastructure risk management team.

Team members were asked to identify “What can happen, where and when” to the various council services and then to identify possible “Why and how can it happen” as causes for each potential event.

Each risk was then tested for credibility to ensure that available resources were applied to those risks that the team considered were necessary to proceed with detailed risk analysis.

The assets at risk, what can happen, when, possible cause(s), existing controls and credibility are shown in Risk Register.

Credible risks are subjected to risk analysis in Section 4.4.5. Risks assessed as non-credible were not considered further and will be managed by routine procedures.

3.2 Inspections

In addition to identifying risks there needs to be processes in place whereby hazards can be indentified in the field and then assessed and treated.

Processes for indentifying hazards include:-

formal inspections,

reports & complaints from residents/users,

unplanned inspections by Council staff.

Details of these processes are provided in our risk treatment plans.

4 HB 436:2004, Sec 3.1, p 20

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4. RISK ANALYSIS

4.1 General

Credible risks which have been identified during the risk identification stage were analysed. This process takes into account the ‘likelihood’ and the ‘consequences’ of the event. The objective of the analysis is to separate the minor acceptable risks from the major risks and to provide data to assist in the assessment and management of risks.

The risk analysis process is applied to all credible risks to determine levels of risk. The process acts as a filter by applying a reasoned and consistent process. Minor risks can be eliminated from further consideration and dealt with within standard operating procedures.

The remaining risks will therefore be of such significance as to consider the development of risk treatment options and plans.

4.2 Likelihood

Likelihood is a qualitative description of probability of an event occurring. The process of determining likelihood involves combining information about estimated or calculated probability, history or experience. Where possible it is based on past records, relevant experience, industry practice and experience, published literature or expert judgement.

4.3 Consequences

Consequences are a qualitative description of the effect of the event. The process of determining consequences involved combining information about estimated or calculated effects, history and experience.

4.4 Method

The risk analysis method uses the risk rating chart shown in Section 4.4.3. This process uses a qualitative assessment of likelihood/probability and history/experience compared against a qualitative assessment of severity of consequences to derive a risk rating.

The qualitative descriptors for each assessment are shown below.

4.4.1 Likelihood

Likliehood Descriptor Probability of occurrence

Rare May occur only in exceptional circumstances More than 20 years

Unlikely Could occur at some time Within 10-20 years

Possible Might occur at some time Within 3-5 years

Likely Will probably occur in most circumstances Within 2 years

Almost certain Expected to occur in most circumstances Within 1 year

4.4.2 Consequences

Consequences Description

Insignificant No injuries, low financial loss (less than $10,000)

Minor First aid treatment, on-site release immediately contained, medium financial loss ($10,000 - $50,000)

Moderate Medical treatment required, on-site release contained with outside assistance, high financial loss ($50,000 - $200,000)

Major Extensive injuries, loss of production capacity, off-site release with no detrimental effects, major financial loss ($200,000 - $1,000,000)

Catastrophic Deaths, toxic release off-site with detrimental effect, huge financial loss (more than $1M)

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4.4.3 Risk Assessment

The risk assessment process compares the likliehood of a risk event occurring against the consequences of the event occurring. In the risk rating table below, a risk event with a likliehood of ‘Possible’ and a consequence of ‘Major’ has a risk rating of ‘High’. This rating is used to develop a typical risk treatment in Section 5.3.

Risk Rating

Likelihood

Consequences

Insignificant Minor Moderate Major Catastrophic

Rare L L M M H

Unlikely L L M M H

Possible L M H H H

Likely M M H H VH

Almost Certain M H H VH VH

Ref: HB 436:2004, Risk Management Guidelines, Table. 6.6 p 55.

4.4.4 Indicator of Risk Treatment

The risk rating is used to determine risk treatments. Risk treatments can range from immediate corrective action (such as stop work or prevent use of the asset) for ‘Very High’ risks to manage by routine procedures for ‘Low’ risks.

An event with a ‘High Risk’ rating will require ‘Prioritised action’. This may include actions such as reducing the likliehood of the event occurring by physical methods (limiting usage to within the asset’s capacity, increasing monitoring and maintenance practices, etc), reducing consequences (limiting speed of use, preparing response plans, etc) and/or sharing the risk with others (insuring the organisation against the risk).

Risk Rating Action Required

VH Very High Risk Immediate corrective action

H High Risk Prioritised action required

M Medium Risk Planned action required

L Low Risk Manage by routine procedures

4.4.5 Analysis of Risk

The team conducted an analysis of credible risks identified in section 3.1 using the method described above to determine a risk rating for each credible risk.

The credible risks and risk ratings are shown in Risk Register

4.5 Risk Evaluation

The risk management team evaluated the need for risk treatment plans using an overall assessment of the following evaluation criteria to answer the question “is the risk acceptable?”

Criterion Risk Evaluation Notes

Operational Risks that have the potential to reduce services for a period of time unacceptable to the community and/or adversely affect the council’s public image.

Technical Risks that cannot be treated by council’s existing and/or readily available technical resources.

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Financial Risks that cannot be treated within council’s normal maintenance budgets or by reallocation of an annual capital works program.

Legal Risks that have the potential to generate unacceptable exposure to litigation.

Social Risks that have the potential to: - cause personal injury or death and/or - cause significant social/political disruption in the community.

Environmental Risks that have the potential to cause environmental harm.

The evaluation criteria are to provide guidance to evaluate whether the risks are acceptable to the council and its stakeholders in providing services to the community. Risks that do not meet the evaluation criteria above are deemed to be unacceptable and risk treatment plans are required to be developed and documented in this Water Infrastructure Risk Management Plan.

5. RISK TREATMENT PLANS

5.1 General

The treatment of risk involves identifying the range of options for treating risk, evaluating those options, preparing risk treatment plans and implementing those plans. This includes reviewing existing guides for treating that particular risk, such as Australian and State legislation and regulations, Australian Standards and Best Practice Guides.

Developing risk treatment options starts with understanding how risks arise, understanding the immediate causes and the underlying factors that influence whether the proposed treatment will be effective.

One treatment option is to remove the risk completely by discontinuing the provision of the service.

Other options include risk reduction by reducing the likliehood and/or the consequences of the risk.

5.2 Risk Treatment Process

The risk treatment process comprises 5 steps.

Step 1. Review causes and controls

The risk identification process documented in Section 3 included identifying possible causes and documenting existing controls.

Step 2. Develop treatment options

Treatment options include those that eliminate risk, reduce the likliehood or the risk event occurring, reducing the consequences should the risk event occur, sharing of the risk with others and accepting the risk.

Step 3. Assess risk treatment options against costs and residual risk

The method of assessment of risk treatment options can range from an assessment by a local group of stakeholders and practitioners experienced in operation and management of the assets/service to detailed risk cost and risk reduction cost/benefit analysis.

Step 4. Select optimum risk treatment

Step 5. Develop risk treatment plans

5.3 Risk Treatments

The risk treatments identified for non-acceptable risks are detailed in Risk Register.

5.4 Risk Treatment Plan

From each of the risk treatments identified in Appendix A – Risk Register, risk treatment plans were developed.

The risk treatment plans identify for each non-acceptable risk:-

1. Proposed action

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2. Responsibility 3. Resource requirement/budget 4. Timing 5. Reporting and monitoring required

The risk treatment plan is shown in Risk Register.

6. MONITORING AND REVIEW

The plan will be monitored and reviewed as follows.

Activity Review Process

Review of new risks and changes to existing risks Annual review by team with stakeholders and report to council

Review of Risk Management Plan 3 yearly review and re-write by team and report to council

Performance review of Risk Treatment Plan

- Action plan tasks incorporated in council staff performance criteria with 6 monthly performance reviews.

- Action plan tasks for other organisations reviewed at annual team review meeting

7. REFERENCES

AS/NZS 4360:2004, Australian/New Zealand Standard, Risk Management, Standards Australia, Sydney.

HB 436:2004, Risk Management Guidelines, Companion to AS/NZS 4360:2004, Standards Australia, Sydney.

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

http://www.ipwea.org.au/

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APPENDIX – D – LIST OF BUILDING & OTHER STRUCTURES

BUILDINGS

Asset Name Location Buildings

Administration & Civic Buildings

Administration

2 Court St Council Chamber

2 Court St Town Hall

2 Court St Administration

2 Court St Concourse

2 Court St Engineering Services - State Bank


Apex Caravan Park

88 Reymond St Office/Reception/Residence

88 Reymond St Brown Cabin No. 1




88 Reymond St Amenities Block - Laundry, Shower, Male & Female toilets.

88 Reymond St White Cabin

88 Reymond St Units - 6 Numbers

CWLE 192 Back Yamma Rd CWLE - Office / Canteen / Amenities

192 Back Yamma Rd CWLE - Workshop / Garage

Depot

1-5 Bandon St Depot - Office (E in map)

1-5 Bandon St Depot - Toilets - Tiolets / Amenities

1-5 Bandon St Engineering Services Office - Demountable - Engineering Services Office

Sewer

10163 Newell Hwy Meter Room

10163 Newell Hwy Meter Room

10163 Newell Hwy Lab/Change Room/Toilet

10163 Newell Hwy Lab/Change Room/Toilet

10163 Newell Hwy Pumphouse

10163 Newell Hwy Control Room

10163 Newell Hwy Control Room

10163 Newell Hwy Storage Shed

10163 Newell Hwy Pumphouse

10163 Newell Hwy Garage

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10163 Newell Hwy Old Switch Room

10163 Newell Hwy Store room

10163 Newell Hwy Old Lab

Pump Stations

Riley St Pump Station

Bandon St. Pump Station

Bathurst St Pump Station

Hilda St Pump Station

Flint St. Pump Station

Newell Hwy Pump Station

Showground Pump Station

Elizabeth St. Pump Station

Church St. Pump Station

Apex Park Pump Station

Farnell St Pump Station

Quarry Rd. Pump Station

Saleyards Pump Station

Reymond St Pump Station

Bogan Gate Rd. Pump Station

Prince St. Pump Station

Water Filtration Plant

126 - 132 Flint St Carpenters Workshop

127 - 132 Flint St Workshop/Tea Room/Lab/Low Lift Pump House

128 - 132 Flint St Chlorination Building

129 - 132 Flint St Office/High Lift Pump House

130 - 132 Flint St Bore Site 1 Pump House

131 - 132 Flint St Bore Site 2 Pump House

Aerodrome

Dr Young Drive Amenities attached to Munro Hanger

Dr Young Drive Soaring & Aero Club

Dr Young Drive Former Briefing Room

Dr Young Drive Terminus

Dr Young Drive Briefing Room attached to Aeroclub

Dr Young Drive Toilet - Female

Dr Young Drive Toilet - Male

Community Buildings

Community

0 Bogan Gate Rd Cemetery - Storage Area / Toilet

59 Johnson St Guide Hall - Hall

7 Harold St HACC - HACC Centre

Union St Information Centre - Station/Tourist/Craft Centre

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2 Victoria Lane Library

4-6 Elgin St Medical Centre - Building

Daroobalgie Rd Daroobalgie Solid Waste Depot - Amenities/Office No.1

Daroobalgie Rd Daroobalgie Solid Waste Depot - Amenities/Office No.2

11 Cross St Museum - Osborne Hall Museum

2 Johnson St/ Located on corner of Battye & Press

Youth Centre - Youth & Community Centre

JREC Site

40-50 Church Jemalong Regional Education Centre - Student Accomodation (Tullabung)

40-50 Church Jemalong Regional Education Centre - Main Building Office Kitchen (Admin, Corridgery &Girraween)

40-50 Church Jemalong Regional Education Centre - Coonambro

Recreational Buildings

Recreational

Newell Hwy Gump Swamp - Bird Hide Lookout

2 Johnson St Swimming Pool - Dressing Shed - Female

2 Johnson St Swimming Pool - Entrance / Kiosk

2 Johnson St Swimming Pool - Garage

2 Johnson St Swimming Pool - Kiosk (former)

2 Johnson St Swimming Pool - Pump House

Gordon Duff Drive Grinstead Oval - Amenities/Clubhouse (rugby/ Toilets/ Store/ Bar/ Kitchen/Change Rooms)

Baldock St Nelson Park - Clubhouse - Tennis

Clement St Town Tennis Centre - Clubhouse - Tennis)



4b Prince St Prince St Residential Buildings - Semi-detached - Unit 4b

4a Prince St Prince St Residential Buildings - Semi-detached - Unit 4a

24 Union St Union St Residential Buildings - Unit 2








14 Dunstan Close Dunstan Close - Tafe Project

Toilet Blocks

Toilet Blocks Lachlan St Albion Park - Toilet Block

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Gordon Duff Drive Apex Park - Toilet Block

Court St Victoria Park - Toilet Block - Disabled

Court St Victoria Park - Toilet Block - Male / Female

Court St Victoria Park - Toilet Block - Disabled

Court St Victoria Park - Toilet Block - Male / Female

Junction St Lions Park - Toilet Block - Male / Female

Union St Railway Station Park - Toilet Block - Male / Female

Bedgerebong Rd Gaggin Oval - Toilet Block/Change Rooms

Hilda St Hughie Wilson Oval - Toilet Block

2 Johnson St Swimming Pool - Dressing Shed Less Toilets & Showers - Male

2 Johnson St Swimming Pool - Toilets & Showers - Male

Bedgerebong Rd Aquatic Area - Toilet Block/Change Rooms

Bandon St Rotaract Park - Toilet Block - Male / Female

Other Structures

Asset Name Location Other Structures

Community Buildings - Other Structure

Guide Hall

Johnson St Front Gate 2.3m wide x 2.6m High

Johnson St Rear Gate 3.3m Wide x 2.6m High

Johnson St 2.6 m High Fence

HACC

7, Harold St Garage

7, Harold St Storage Shed

7, Harold St Fence - Timber Pickets - 1m High

7, Harold St Gate - 1m high and 1.2m wide

7, Harold St Fence - Steel Mesh - 1.8m High

7, Harold St Fence - Corrugated Iron - 1.7m High

7, Harold St Gate - Steel Frame with Steel Panel 1.2m high and 2m wide

Information Centre

Union St Fence - Steel Mesh - 1.3m high

Union St Fence - Wire Mesh 1.3m high

Union St Gate - Steel Mesh 1.3m high and 1m Wide

Union St Gate - Steel Mesh 1.3m high and 2m Wide

Medical Centre Elgin St Fence

Elgin St Fence/Wall

Youth Centre Press St Fence - with bars welded with horizontal bars- 1.2 m high

Press St Gate - Steel Mesh 1.2m high and 1.6m wide

Waste Depot

Henry Parkes Way, Ootha Ootha Solid Waste Depot - Ootha Tip Fence

Warroo Warroo Solid Waste Depot - Warroo Tip Fence

Bedgerebong Rd Bedgerebong Solid Waste Depot - Bedgerebong Tip Fence

Garema Garema Solid Waste Depot - Garema Tip Fence

Wirrinya Wirrinya Solid Waste Depot - Wirrinya Tip Fence

Daroobalgie Rd Daroobalgie Solid Waste Depot - Waste Oil shed

Daroobalgie Rd Daroobalgie Solid Waste Depot - Fence - 2m High Wire with Star Posts

Daroobalgie Rd Daroobalgie Solid Waste Depot - Water Tank on Tower

Daroobalgie Rd Daroobalgie Solid Waste Depot - Gate - 2.4m high and 9m wide

Administration & Civic Buildings - Other Structures

Town Hall 2 Court St CCTV Security Cameras

Operation Buildings - Other Structures

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Apex Caravan Park

88 Reymond St Store, Pool Pump room & Bunk Room

88 Reymond St White Store Ajacent to White Cabin

88 Reymond St Post & Rail Barracade (pine)

88 Reymond St Boom Gate Control

88 Reymond St Boom Gates

88 Reymond St BBQ Shelter

88 Reymond St Picnic Shelter

88 Reymond St Fence Pool 1.4m high

88 Reymond St Fence Gate

88 Reymond St Fence 1.2h

88 Reymond St Fence 1.2h

CWLE

Back Yamma Rd CWLE - Cattle Holding Yards (Open)

Back Yamma Rd CWLE - Water Service

Back Yamma Rd CWLE - Electrical

Back Yamma Rd CWLE - P/A System

Back Yamma Rd CWLE - Security System

Back Yamma Rd CWLE - Cattle Water Trough

Back Yamma Rd CWLE - Settling Pond - 1



Back Yamma Rd CWLE - Retention Pond - 1




Back Yamma Rd CWLE - Dam

Back Yamma Rd CWLE - Smalll Hydraulic structure made of concrete near retention pond (72m2)

Dog Pound Newell Hwy Dog Pound - Dog Pound / Horse Stalls

SES School Rd SES - Training Tower (4 Levels)

Sewer Newell Hwy Sewer Pump Stattion 11 - Relay Station

Newell Hwy Sewer Pump Stattion 4 - Relay Station

Aerodrome

Dr Young Drive Fuel Area

Dr Young Drive Fuel Shed

Dr Young Drive Glider Shed - Tall

Dr Young Drive Glider Shed - Short

Dr Young Drive Hanger 1

Dr Young Drive Hanger 2

Dr Young Drive Hangar D Munro

Dr Young Drive Hangar D Hodge

Dr Young Drive Hangar - East

Dr Young Drive Hangars - 3 hangers in one structure

Dr Young Drive Hangars - 2 hangers in one structure

Dr Young Drive Short Shed

Dr Young Drive Tall Shed

Dr Young Drive Water Tank (Concrete) inside aero club

Dr Young Drive Water Tank (Concrete) rear to Munro Hanger

Dr Young Drive Awnings attached to Soaring & Aero Club

Dr Young Drive Store - adjacent to Hangar D Hodge

Dr Young Drive Fence - Steel vertical bars welded with horizontal bars - 1 m high

Dr Young Drive Gate - at Terminal Gate - 1m high and 3m wide

Dr Young Drive Gate - at Terminal Gate - 1m high and 1m wide

Dr Young Drive Gate - 1m high and 1m wide

Dr Young Drive Fence -Ringlock Fence - 1m high

Dr Young Drive Water Tank - adjacent to Aeroclub (Poly) - 2 in numbers

Dr Young Drive Water Tank - adjacent to Terminus (Steel)

Dr Young Drive Runway - Pavement (300mm)

Dr Young Drive Runway - Seal

Dr Young Drive Taxiway - Pavement (250mm)

Dr Young Drive Taxiway - Seal

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Dr Young Drive Road - from taxi to Hanger (Airport) - Pavement

Dr Young Drive Road - Taxiway to Hanger (Airport) -Seal

Dr Young Drive Road - Entrance to Hanger (Airport) - Pavement

Dr Young Drive Road - Entrance to Hanger (Airport) - Seal

Dr Young Drive Taxiway - Aeroclub - Pavement (250mm)

Dr Young Drive Taxiway - Aeroclub - Seal

Dr Young Drive Road - Taxiway to Hanger (Aeroclub) - Pavement

Dr Young Drive Road - Taxiway to Hanger (Aeroclub) - Seal

Residential Buildings - Other Structure

Residential

Prince St Prince St Residential Buildings - Gate - 1.2m high and 1 m wide - Unit 4b

Prince St Prince St Residential Buildings - Fence - 1.8m high - Unit 4b

Prince St Prince St Residential Buildings - Gate - 1.2m high and 1 m wide - Unit 4a

Prince St Prince St Residential Buildings - Fence - 1.8m high - Unit 4a

24 Union St Union St Residential Buildings - Fence - Entry to Unit Complex - 2m Panel Fence - Unit1

24 Union St Union St Residential Buildings - Gate - 2m high and 3.1m wide Panel type - Unit 1

24 Union St Union St Residential Buildings - Fence - Steel - 1.5m high -Unit 2

24 Union St Union St Residential Buildings - Fence - Steel 1.5m high - Unit 3

24 Union St Union St Residential Buildings - Gate - 1.7m high and 1m wide - Unit 3

24 Union St Union St Residential Buildings - Fence - Steel - 1.5m high - Unit 4


24 Union St Union St Residential Buildings - Fence - Steel 1.5m high - Unit 5



24 Union St Union St Residential Buildings - Gate - 1.7m high and 1m wide -Unit 6







Recreational - Other Structure

Golf Course

Newell Hwy Golf Course - Foot Bridge

Newell Hwy Golf Course - Wide Bridge

Newell Hwy Golf Course - Old Foot Bridge

Newell Hwy Golf Course - Old Foot Bridge 2

Newell Hwy Golf Course - Workshop / Garage

Newell Hwy Golf Course - Chemical Store

Newell Hwy Golf Course - Shed

Grinstead Oval

Gordon Duff Drive Grinstead Oval - Store

Gordon Duff Drive Grinstead Oval - Fence - 600mm high and made of tubular steel with tubular top rail and posts.

Gordon Duff Drive Grinstead Oval - Awning - Disabled Toilets / Electrical Store

Hughie Wilson Oval Hilda St Hughie Wilson Oval - Shelter

Hilda St Hughie Wilson Oval - Fence - 600mm high tubular steel.

Nelson Park

Baldock St Nelson Park - Store

Baldock St Nelson Park - Fence - 3.5m high

Baldock St Nelson Park - Fence - 2.4m high

Baldock St Nelson Park - Fence of galvanised welded mesh oll top panels and tubular posts

Racecourse

Racecourse Rd Observation Towers - 4 in numbers - Elevated box on Steel framed tower. (6 m2 each)

Racecourse Rd Callers Box attached to Members

Racecourse Rd Judges Box attached to Members

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Racecourse Rd Counter

Racecourse Rd Fence - Wire Fencing 2.4m high

Racecourse Rd Fence - Wire Fencing 1.3m high

Racecourse Rd Fence - Brick Wall / Fence 2.4 high

Racecourse Rd Gate - Car Park 1 - 2.4 m high and 6.2 m wide

Racecourse Rd Gate - Car Park 2 - 2.4 m high and 6.2 m wide

Racecourse Rd Gate - PA Gate - 1.2m high and 1 m wide

Racecourse Rd Gate - Top Gate - 1.2m high and 1 m wide

Racecourse Rd Kitchen

Racecourse Rd Skillion off Kitchen

Racecourse Rd Grandstand

Racecourse Rd Horse Stalls - Covered with Corrugated Iron sheet and on ground, no concrete)

Racecourse Rd Horse Wash with Shelter - Brick walls , Corrugated Iron roof and no concrete on floor.

Racecourse Rd Storage/machinery shed ( CI roof and sides, concrete slab)

Racecourse Rd Storage shed - Concrete slab, Corrugated Iron roof and Corrugated Iron side walls with Roller Doors)

Racecourse Rd Skillion off TAB (CI iron, open)

Swimming Pool

2 Johnson St Shelter over Grandstand

2 Johnson St Grandstand

2 Johnson St Olympic Pool

2 Johnson St Shelter BBQ

2 Johnson St Toddlers Pool

2 Johnson St Wading Pool

2 Johnson St Fence - 2.4m high mesh

2 Johnson St Fence - 2.4m high mesh

2 Johnson St Fence - 2.2m high Colourbond barbed wire

2 Johnson St Fence - 700mm high Safety Fence Alum / Perspex at the bottom

2 Johnson St Gate - 1m wide and 700mm high Safety Fence Alum / Perspex

2 Johnson St Gate - PA Gate at Kiosk - 1.7m high and 1m wide

2 Johnson St Gate - PA Gate at Heated Pool - 1.7m high and 1m wide

2 Johnson St Gate - RR Vehicle Access - 2.4m high and 5.5m wide

2 Johnson St Gate - Side Vehicle Access at Pump house - 2.4m high and 5.5m wide

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APPENDIX – E – PICTURES OF BUILDINGS AND OTHER STRUCTURES

Community Buildings

Guide Hall Address: 59 Johnson St

Cemetery Toilets & Storage Address: Bogan Gate Rd

HACC Centre, Address: 7 Harold St

Information Centre Address: Union St

Library Address: 2 Victoria Lane

Medical Centre Address: 4-6 Elgin St

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Daroobalgie Solid Waste Depot Address: Daroobalgie Rd, Forbes

Museum – Osborne Hall Address: 11 Cross St

Name: Youth Centre Address: Cnr Battye St & Press St

JREC – Tullabung Address: 40-50 Church St

JREC – Corridgery & Girraween Address: 40-50 Church St

Name: JREC – Coonambro Address: 40-50 Church St

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Dog Pound Address: Newell Hwy

Radio Station Address: Newell Hwy

SES Address: 10-12 School Rd

RFS Address: 26 Union St

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Depot Office Address: 1-5 Bandon St

Engineering Demountable Address: 1-5 Bandon St

Sewer Treatment Plant Address: 10163 Newell Hwy

Water Filtration Plant Address: 131-132 Flint St

Aerodrome Address: Dr Young Drive

Apex Caravan Park Address: 88 Reymond St

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CWLE Address: 192 Back Yamma Rd

Administration Buildings

Town Hall (Admin) Address: 2 Court St

Town Hall & Concourse (Civic) Address: 2 Court St

Council Chambers Address: 2 Court St

Engineering (State Bank) Address: 137-141 Lachlan St

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Prince St Units Address: 4 a&b Prince St

Union St Flats Address: 24 Union St

Recreational Buildings

Rugby Union Clubhouse Address: Gordon Duff Drive

Olympic Swimming Pool Address: 2 Johnson St

Bird Hide Address: Gum Swamp, Newell Hwy

Town Tennis Club Address: Clement St

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Nelson Park Clubhouse Address: Baldock St

Toilet Blocks

Apex Lakeside Park Toilet Block Address: Gordon Duff Drive

Halpins Flat Toilet Block Address: Bedgerebong Rd

Victoria Park Toilet Block Address: Court St

Aquatic Centre Toilet Block Address: Bedgerabong Rd

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Hughie Wilson Toilet Block Address: Hilda St

Rotoract Park Toilet Block Address: Bandon St

Alboin Park Toilet Block Address: Lachlan St

FORBES SHIRE COUNCIL Cycle Expenditure ** The Life Cycle Expenditure (LCE) is the actual or planned...

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