Coolamon Shire Council NSW | Home €¦ · Web viewCouncil is the owner and custodian of a large...

COOLAMON SHIRE COUNCIL

ASSET MANAGEMENT STRATEGY

1. INTRODUCTION

Council is the owner and custodian of a large portfolio of assets which includes roads, drains, buildings and facilities, plant and equipment and land. These assets enable the community to access and enjoy all the services and facilities that Coolamon Shire Council has to offer.

These assets represent a vast investment built up over many generations, which in itself presents a significant challenge as many assets were constructed or acquired many decades ago with the aid of community and other government funding and as such are approaching the end of their useful lives.

The efficient management of these assets is vital in maintaining safe, reliable and effective services that help achieve the strategic priorities and goals of Council. Failure to adequately plan for the replacement of existing assets and the development of new assets will result in assets not meeting the needs of the community, now and in the future.

The environment in which local government operates is constantly changing. As assets continue to age, Councils will need to demonstrate an accepted level of skill, expertise and also a duty-of-care in relation to management practices and maintenance of assets.

2. BACKGROUND

2.1 What is Asset Management?

Asset management is a process of logic used to guide the planning, acquisition, operation and maintenance, renewal and disposal of assets. Its objective is to maximise asset service-delivery-potential and manage related risks and costs over the entire life of assets.

Asset management ensures that Council’s assets are capable of providing services, of an agreed quality, in a sustainable manner, for present and future generations.

Coolamon Shire Councildocument.doc

2.2 Why is Asset Management Important to Council?

Asset management delivers benefits that are realized in the areas of improved accountability, sustainable service delivery, risk reduction and financial management and forecasting. Specific benefits can include:

More informed decision-making. Improved efficiency and reduction of limited capital funds and asset operation costs. Ability to plan for present and future generations. Improved long-term financial forecasting and management.

2.3 Asset Management Framework

Council’s asset management framework as illustrated in Figure 1 shows the relationship between the asset management policy, this strategy and asset management plans and operational plans. This framework will ensure a strategic approach to asset management.

It should be noted that each asset class will have its own Asset Management Plan.

Figure 2 and Figure 3 illustrate how Asset Management combines with Long Term Financial Planning and Workforce Management to support the Resourcing Strategy that in turn details how Council will resource the strategies that it is responsible for within the Community Strategic Plan, Delivery Program and Operational Plan.

Figure 1: Asset Management Framework


Asset Management Policy

Asset Management Strategy

Asset Management Plan/Operational Plans

Figure 2: Resourcing Strategy

Figure 3: Integrated Planning and Reporting


Resourcing Strategy

Long Term Financial

Management Planning

Asset ManagementWorkforce Management

ASSET MANAGEMENT STRATEGY OBJECTIVES

The asset management strategy is to ensure that Council’s asset portfolio meets the service delivery needs of the community and to ensure adequate provision is made for the long-term management of infrastructure assets by:

Taking into account all relevant legislative requirements in asset management. Establishment of consistent Asset Management Planning for all Assets. Service levels agreed through the budget process and defined in Infrastructure and

Asset Management Plans and funded in the annual budget estimates. Asset renewals will be prioritised to meet agree service levels. Estimated future life cycle costs will be reported and considered in all decisions relating

to new services and assets and upgrading of existing services and assets. Demonstrating transparent and responsible asset management processes that align

with best practice. Ensuring that Council’s services and infrastructure are provided in a sustainable manner,

with the appropriate levels of service to residents, visitors and the environment. Creating an environment where Council employees take part in overall management of

Council assets by developing asset management awareness throughout the Council.

SCOPE

This strategy applies to all Council owned and managed physical assets. It will be reviewed every four years. It does not apply to human resources.

This strategy sets guidelines for implementing consistent asset management processes for Coolamon Shire Council.

ROLES AND ACCOUNTABILITIES

General Manager

The General Manager is responsible for operation of Council’s organisation and for implementing the policies and decisions of the Council. In his role the General Manager is responsible for the day-to-day management of Council, which includes exercising any functions delegated by Council together with the appointment direction and dismissal of staff.

Reporting to the General Manager are three Executive Managers who manage the divisions of Community and Corporate Services, Engineering and Technical Services, Planning and Environmental Services.

The General Manager along with the Executive Managers comprise the senior management team (MANEX) that ensures the organisation is meeting its obligation and provide staff with strategic direction.


Additionally the role of the General Manager is to oversee Mayoral and Council support and legal services.

Executive Manager, Corporate and Community Services

The Corporate and Community Services sector of Council operation includes Community Service programs such as child care services, family day care, services for the aged together with the delivery of youth services and libraries. Additionally under this section the financial operations of Council are controlled together with the human resource services.

Executive Manager, Engineering and Technical Services

Engineering and Technical Services is responsible for the delivery of infrastructure and commercial operations. Operational activities include the maintenance of roads, footpath, drainage and open space and parks maintenance. It is also responsible for the capital works projects for the construction of roads and oversees the provision of road safety education programs and manages Council’s heavy plant.

Executive Manager, Planning and Environmental Services

Planning and Environmental Services responsibilities include waste management, environmental services and sustainability, health compliance, food surveillance, animal control as well as control of the sewerage operations within the towns of Coolamon and Ganmain. Additionally the control of swimming pools together with Council’s building and property management is part of this division.

All Employees – Generally

Further to the responsibilities and accountabilities outlined under each Asset Management category all staff have responsibilities for managing assets in their activities and work-place and are accountable through their individual position descriptions and operation.

Employees are required to co-operated and be actively involved in the development and implementation of the Asset Management Action Plan.

ASSET MANAGEMENT CLASSES

Council has many different and varied classes of Assets. In order to get the most value out of these assets, maintenance programs are essential. Those programs range from minor maintenance or restoration to the monitoring of deterioration and identification of future capital requirements.

1. Plant and Equipment


This asset class includes assets such as motor vehicles, trucks, construction equipment, gardening equipment.

Current Asset Management

The plant and equipment assets are recorded in the Civica Computer System. Within this system the following assets are recorded: Motor vehicles Construction equipment Garden equipment and various minor plant Engineering Equipment

Maintenance inspections of construction vehicles are documented using a manual paper system of inspections. Required repairs are documented on Council’s pre-start plant check.

There are no formal procedures for the inspection of minor plant items including chainsaws, trailers etc. and there are no documented records or a paper system of inspection being recorded. When any repairs required are identified they are reported verbally to the plant foreman who is then responsible to ensure the completion of the necessary maintenance repairs.

Plant operators undertake daily condition inspections of construction vehicles and the same applies to gardening equipment prior to the commencement of daily tasks.

Council’s plant replacement program is determined by the age or number of hours performed by each plant item. A ten year replacement program is presented to Council in March each year for Council’s consideration and determination. Once adopted this plant replacement program is then referred to the Delivery Program and Operations Plan plan during its preparation and budget considerations.

Also within Council’s Civica Computer System there exists a plant costing system which records running expenses, income and disposal of major plant items.


Asset Management Improvement Schedule

Action ResponsibleImplementation and review of Asset Management Plan Executive Manager, Engineering

and Technical ServicesDevelopment of annual and 4 year and 10 year capital works plans


Annual operation budget recommendation Executive Manager, Engineering and Technical Services

Programmed and day to day maintenance Works Engineer

2. Office Equipment

This asset class includes assets such as office furniture, fittings and equipment, computer systems & equipment.

Current Asset Management System

Office equipment is recorded in the Civica Local Government Computer Program. The assets recorded are office furniture, information technology equipment, computer systems and programs.

Council has in place an IT strategy which outlines the desirable level of computers, printers and other items due for replacement. This strategy is considered during budgetary processes for the replacement of IT equipment


Action ResponsibleImplementation and review of Asset Management Plan Executive Manager, Corporate

and Community ServicesDevelopment of annual and 4 year and 10 year capital works plans

Executive Manager, Corporate and Community Services.

Annual operation budget recommendation Executive Manager, Corporate and Community Services.

Programmed and day to day maintenance Executive Manager, Corporate and Community Services.


3. Land

This asset class includes all Community and Operational Land, both freehold and leasehold.


Land assets are recorded in Council’s Civica Local Government Computer Program.


Actions ResponsibleImplementation and review of Asset Management Plan Executive Manager,

Environmental & Planning Services.

Development of annual and 4 year and 10 year capital works plans

Executive Manager, Environmental & Planning Services.

Annual operation budget recommendation Executive Manager, Environmental & Planning Services.

Programmed and day to day maintenance Executive Manager, Environmental & Planning Services.

4. Buildings Facilities and Other Structures

This asset class includes assets such as Library, Community Halls, Community Facilities, Public Toilets, Houses, Museum, Council offices, Pre-schools, Childcare Centres, Aged Care Facilities, Swimming Pools, Waste Facilities, Emergency Service Buildings, Skate Park. It also includes parks, gardens, play equipment, irrigation systems, park furniture, trees and gardens.


These assets are recorded in the Civica Local Government accounting system. Council has a plan of management for its operational land which includes recording all of the assets associated with the operational land. Council also has a plan of management for its community land which also includes the assets associated with community land. These assets are inspected on an annual basis with a report being presented to the February meeting of Council.

Council has a parks and gardens asset management plan which outlines the level of service required for the ongoing maintenance including mowing and horticultural activities of Council’s parks and gardens.


Maintenance inspections for playground equipment are undertaken by trained staff on an annual basis and is recorded using a manual paper system of inspections carried out. Required repairs are documented by Council’s parks staff who then refer them to the OH&S co-ordinator or Parks Supervisor for the necessary attention.

Additional to the annual inspections of Council’s playground equipment all playground equipment and irrigation systems are visually inspected by Council staff when normal maintenance operations are being performed.


Action ResponsibleImplementation and review of Asset Management Plan Executive Manager,

Environmental & Planning Services/Executive Manager, Engineering & Technical Services


Executive Manager, Environmental & Planning Services/Executive Manager, Engineering & Technical Services

Annual operation budget recommendation Executive Manager, Environmental & Planning Services/Executive Manager, Engineering & Technical Services

Programmed and day to day maintenance Executive Manager, Environmental & Planning Services/Executive Manager, Engineering & Technical Services

5. Infrastructure Assets – Roads, Bridges, Footpaths & Bulk Earthworks

This asset class includes assets such as sealed roads, unsealed roads, bulk earthworks, carparks, bridges, footpaths, kerb and guttering, bus shelters, bike paths and signage.


A number of the above assets are recorded in a series of Excel spreadsheet format which is used to calculate replacement values, written down values and depreciation of various roads, bridges and major culvert assets. A sealing register in the Excel spreadsheet format is also used to determine the re-seal and condition reports for reconstruction programs for both Local & Regional roads.

Road condition assessments are carried out for all mentioned categories of roads recognising the established priorities according to the hierarchical road system. The assessments are


undertaken by Council staff. The road condition assessments are all recorded in the Reflect computer operating system. Any defects identified are passed to the various maintenance gangs through the Reflect computer operating system. Once maintenance has been carried out it is recorded as an accomplishment in that system.

Maintenance inspections on roads within the various urban areas of Council’s are carried out by the road maintenance crew. No documentation in relation to repairs carried out is presently being recorded.

Maintenance inspections on footpaths within the urban areas are carried out by Council staff. These inspections are recorded in computer program known as Reflex computer operating system. The required repairs are identified and when repairs are accomplished they are recorded in the Reflex Computer Program.

There is no official inspection regime or maintenance records currently recorded in relation to kerb and gutter and median strip repairs.


Actions ResponsibleImplementation and review of Asset Management Plan Executive Manager, Engineering



Annual operation budget recommendation Works Engineer Progression of the Asset Management Plan Works EngineerProgrammed and day to day maintenance Works Engineer

6. Infrastructure Assets – Stormwater drainage

This asset class includes assets such as drains (underground), pipes, culverts, pits, letter traps, retarding basins and table drains.


The assets are recorded in Excel spreadsheets.

Council has implemented a programmed inspection regime on it’s stormwater drainage assets utilizing the specialized services of external contractors.







Programmed and day to day maintenance Works Engineer


Infrastructure Assets - Sewerage Network

This asset class includes pump stations, gravity reticulation system, sewerage treatment works and effluent reuse assets.


The above assets are recorded in an Excel spreadsheet which is used to calculate replacement values, written down values and depreciation.

Council has implemented a programmed inspection regime on it’s sewerage network assets utilizing the specialized services of external contractors.



and Technical Services/Executive Manager, Planning & Environmental Services


Executive Manager, Engineering and Technical Services/Executive Manager, Planning & Environmental Services

Annual operation budget recommendation Executive Manager, Engineering and Technical Services/Executive Manager, Planning & Environmental Services

Progression of the Asset Management Plan Executive Manager, Engineering and Technical Services/Executive Manager, Planning & Environmental Services

Programmed and day to day maintenance Executive Manager, Engineering and Technical Services/Executive Manager, Planning & Environmental Services


7. Restoration Assets

This asset class includes assets such as Gravel Pits.


Gravel pits owned by Council are recorded in the Civica Local Government Computer Program. A large number of gravel pits are located on private property for which Council pays the landowner a royalty when winning gravel from these pits. All pits are registered.


Actions ResponsibleDevelopment of annual and 4 year and 10 year capital works plans



Programmed and day to day maintenance Executive Manager, Engineering and Technical Services

GENERAL

Library

Coolamon Shire is part of the Riverina Community Library services and as such library books and equipment comprise part of the Riverina Community Library assets and are recorded in their records.

A small number of public art work is owned but there is no procedure in place for the ongoing maintenance of these assets. There is no register which records the assets owned by Council.

Miscellaneous

An asset register exists in Council’s Civica Computer System and Council’s finance manager is responsible for maintaining this asset register. This asset register holds records for buildings, plant and equipment, motor vehicles, IT equipment and office furniture. It records acquisition costs, disposable assets, accumulated depreciation and written down value.

Council has an extensive record of the public assets in various formats such as Excel, Word, Civica Computer System, these records are somewhat


disjointed and do not provide Council with a complete picture in relation to the management of its assets. By compiling the necessary information on all of its assets this will enable Council to provide the community with an improved level of customer service to meet their expectations.

ASSET CONDITION

By understanding the condition of Council’s assets and the various types of pressures that they are placed under, Council would be able to utilise the data to assist in maintaining the level of service the community desires, in the context of affordability, and minimise the risk of asset failure.

Assets may fail or deteriorate for many reasons. When this occurs, the asset is unable to maintain the level of service the community expects. Some of the more common reasons for not meeting performance standards or community expectations are detailed hereunder:

Damaged by the various service authorities when installing / constructing their infrastructure within Council’s road reserve.

Movement of the underlying soils. Suitability of the asset to meet changing demographics and needs eg

refurbishment of a building that was once used as a bowling club to be upgraded to a childcare centre to cover the closure of a privately owned childcare centre.

Increase in the allowable vehicle road limits on Council’s roads. Increase in the number of developments placing additional loads on

assets not designed for the level of the new development.

Perhaps Council’s greatest challenge in the immediate future is the ageing infrastructure of its swimming pools and Coolamon treatment works. All of these assets range from 30 – 50 years old and do not comply with the current standards as defined by Government. The challenge in future years will be providing for either the replacement or refurbishment of these assets which will more than likely be beyond Council’s financial capacity to fund.

Although Council has major concerns in relation to the swimming pools and Coolamon treatment works, Council’s assets overall are currently estimated to be in a satisfactory condition.

FUTURE RENEWAL PROFILE

Assets are necessary products that provide a service to an end-user, in Council’s case, the community. Even though the service may be required


indefinitely, like a residential street or park, no asset will last forever without proper management. Even with good maintenance, assets may deteriorate well before reaching the end of their design life (useful life) dependent upon many unplanned factors, such as ground conditions and the environment.

All assets have a pre-defined life-cycle, from planning, creating, operating, maintaining and renewing or disposing. These life-cycle phases have a direct influence on one another, i.e. limiting maintenance on an asset can result in the asset requiring renewal or replacement earlier than expected. This may be suitable in the short term but will add significantly to the life-cycle cost of the asset.

The expenditure on assets currently falls within the following categories:

NewNew works create an asset that did not previously exist. This includes new assets created by Council in response to demand requirements, community expectations and strategic planning.

RenewalRenewal work is a substantial replacement of the asset or a significant asset component to its original size and capacity.

UpgradeUpgrade work is related to the extension of an asset in response to growth or an increase in defined levels of a service.

OperationAsset operation expenditure has no effect on asset condition but is necessary to keep the asset appropriately utilised.

MaintenanceAsset maintenance is the day-to-day work required to keep assets operating at required service levels. (Maintenance expenditure is not distinguished from operational expenditure in Council’s financial systems)

WHERE DO WE WANT TO BE

Council’s goals are in relation to asset management are:

1. SustainabilityEnsuring that Council’s infrastructure assets are maintained in a manner that is sustainable whilst minimizing risk and our open space is presented in a safe condition that encourages use and participation.


2. Meeting Community NeedsAssets that meet community needs ensuring infrastructure and major project delivery is co-ordinated and driven by clear strategic planning and sustainable funding.

3. Protecting the EnvironmentEnsure that the effect on the environment is considered during the life cycles of all assets.


ASSET MANAGEMENT IMPROVEMENT PROGRAM

To deliver the goals and outcomes of Council’s plan and the goals of the asset management policy, Council will need to implement a number of actions to deliver the required outcomes.

Objective 1Promote the importance of asset management to Councillors and Council Officers to ensure understanding and delivery of the asset management strategy.

Key Actions Responsibility Time FrameMANEX Committee to be responsible for Asset Management

MANEX Committee Ongoing

Develop and Implement Asset Management Promotion and Training Programs (eg Plant Maintenance Programs)


Document and Communicate Asset Management roles and responsibilities


Record Asset Management Improvements to demonstrate the benefits of implementing the Asset Management Strategy

MCC, MET, MPE & FM Annually

Objective 2Ensure Council’s assets are responsibly managed in a financially sound manner, to enable provision of appropriate levels of service to the community, while sustaining use of available resources.

Key Actions Responsibility Time FrameReview Asset Management roles and responsibilities

MANEX Committee Annually / Ongoing

Ensure the Asset Management framework is implemented through the guidance of MANEX Committee



Incorporate Life Cycle Costing into Asset Management Plans

Finance Manager Four Yearly

Incorporate Life Cycle Costing into all Capital Works Projects

Finance Manager Annually

Develop and Prepare specific Asset Management Plans for all of Council’s Asset Categories

MANEX Committee December 2020

Incorporate into forward planning possible provision for new and desirable assets


Objective 3Improve work practices and processes to ensure Council’s assets are managed in a cost effective and efficient system.

Key Actions Responsibility Time FrameDevelop Asset Registers for all Categories and Classes


Ensure Asset Registers are kept up-to-date regarding the condition, creation /acquisition, maintenance renewal refurbishment and disposal of assets


Objective 4Minimise Council’s exposure to risk due to asset failures.

Key Actions Responsibility Time FrameUndertake regular condition assessment surveys of all assets of all asset categories and classes

Ongoing

Revalue assets at intervals in accordance with Australian Accounting Standards

MANEX Committee As per standards


Develop implement and review risk management processes

OH&S Officer Ongoing

Develop and document a system for forward planning of capital and major maintenance works


Version 1 Adopted: Council Meeting held 17 March 2011 (Minute No 58/03/2011)


Appendix 1

Appendix 2

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