DRAFT - s3-ap-southeast-2.amazonaws.com

DRAFTFootpaths Asset ManagementPlan

Footpaths S2_V1 Capital Works Program

November 2016

CITY OF VICTOR HARBOR – FOOTPATH ASSET MANAGEMENT PLAN

Document Control

Document ID: 59.299.130925 nams.plus2 amp template v4

Rev No Date Revision Details Author Reviewer Approver1 November 2016 Asset Plan & Expenditures

Footpaths S2_V1 Capital Works ProgramDEIS - GS DEIS - GS

SMTMF - KKSIO - JSMI - BH

2 21 November2016

Elected Members Workshop – Cancelled DEIS

3 5 December2016

Finance Audit Committee DEIS AuditCommittee

4 6 December2016

Elected Members Workshop DEIS EM

© Copyright 2012 – All rights reserved.

The Institute of Public Works Engineering Australia.

www.ipwea.org.au/namsplus


Table of Contents1. Executive Summary 5

Context 5What does it Cost? 5What we will do 5What we cannot do 5Managing the Risks 5Confidence Levels 5The Next Steps 5

2. Introduction 72.1 Background 72.2 Goals and Objectives of Asset Management 92.3 Plan Framework 92.4 Core and Advanced Asset Management 112.5 Community Consultation 11

3. Levels of Service 113.1 Customer Research and Expectations 113.2 Strategic and Corporate Goals 123.3 Legislative Requirements 123.4 Current Levels of Service 133.5 Desired Levels of Service 15

4. Future Demand 154.1 Demand Drivers 154.2 Demand Forecast 154.3 Demand Impact on Assets 154.4 Demand Management Plan 164.5 Asset Programs to meet Demand 17

5. Lifecycle Management Plan 185.1 Background Data 185.2 Infrastructure Risk Management Plan 235.3 Routine Operations and Maintenance Plan 245.4 Renewal/Replacement Plan 275.5 Creation/Acquisition/Upgrade Plan 295.6 Disposal Plan 315.7 Service Consequences and Risks 31


6. Financial Summary 326.1 Financial Statements and Projections 326.2 Funding Strategy 376.3 Valuation Forecasts 376.4 Key Assumptions made in Financial Forecasts 386.5 Forecast Reliability and Confidence 39

7. Plan Improvement and Monitoring 417.1 Status of Asset Management Practices 417.2 Improvement Program 417.3 Monitoring and Review Procedures 427.4 Performance Measures 43

8. References 44

9. Apendices 45Appendix A Maintenance Response Levels of Service 46Appendix B Projected 10 yr Capital Renewal and Replacement Works Program 49Appendix C Projected Upgrade/Exp/New 10 year Capital Works Program 58Appendix D Budgeted Expenditures Accommodated in LTFP 62Appendix E Gifted Assets 2010-2016 63Appendix F Aerial Plans - Existing Footpath Network 68Appendix G Abbreviations 72Appendix H Glossary 73

CITY OF VICTOR HARBOR – FOOTPATH ASSET MANAGEMENT PLAN of 78

1. Executive SummaryContextCouncil provides a footpath network to enable asafe, well maintained, fit for purpose pedestrianaccess in accordance with Councils servicedelivery objective.

The footpaths services cannot be provided withoutthe proper construction and maintenance of thesupporting assets. The renewal and maintenanceof these assets is critical to successful servicedelivery.

The footpath network comprises: Footpath Surface (wearing course – concrete,

pavers, asphalt).

These infrastructure assets have a replacementvalue of $9,977,000

What does it Cost?The projected outlays necessary to provide theservices covered by this Asset Management Plan(AM Plan) includes operations, maintenance,renewal and upgrade of existing assets over the10 year planning period is $6,198,000 or $620,000on average per year.

Estimated available funding for this period is$6.027,000 or $603,000 on average per yearwhich is 97% of the cost to provide the service.This is a funding shortfall -$17,000 on average peryear. Projected expenditure required to provideservices in the AM Plan compared with plannedexpenditure currently included in the Long TermFinancial Plan are shown in the graph below.

What we will doWe plan to provide Footpath services for thefollowing: Operation, maintenance, renewal and

upgrade of footpath to meet service levels setin annual budgets.

Carry out annual footpath repair andconstruction works that align with our latestcondition assessments of footpaths within the10 year planning period.

What we cannot doWe do not have enough funding to provide allservices at the desired service levels or providenew services. Works and services that cannot beprovided under present funding levels are: Create new assets Place footpaths in low pedestrian volume

areas

Managing the RisksThere are risks associated with providing theservice and not being able to complete allidentified activities and projects. We haveidentified major risks as: Lips & depression in footpaths Pedestrian trip & fall hazards Cracks in asphaltic footpaths

We will endeavour to manage these risks withinavailable funding by: Action Plan Understand the ongoing costs through the

audit committee & council

Confidence LevelsThis AM Plan is based on high level ofconfidence information.

The Next StepsThe actions resulting from this asset managementplan are: Review Works Program Ongoing review of service levels Advise audit committee Advise Council Annually review useful lives


Questions you may have

What is this plan about?This asset management plan covers theinfrastructure assets that serve the City of VictorHarbor community’s Footpath needs. Theseassets include all constructed footpathsthroughout the community area that enablepeople to use the footpath network in safemanner.

What is an Asset Management Plan?Asset management planning is a comprehensiveprocess to ensure delivery of services frominfrastructure is provided in a financiallysustainable manner.

An asset management plan details informationabout infrastructure assets including actionsrequired to provide an agreed level of service inthe most cost effective manner. The plan definesthe services to be provided, how the services areprovided and what funds are required to providethe services.

Why is there a funding shortfall?Most of the organisation’s footpath network wasconstructed by developers and from governmentgrants, often provided and accepted withoutconsideration of ongoing operations, maintenanceand replacement needs.

Many of these assets are approaching the lateryears of their life and require replacement,services from the assets are decreasing andmaintenance costs are increasing.

Our present funding levels are insufficient tocontinue to provide existing services at currentlevels in the medium term.

What options do we have?Resolving the funding shortfall involves severalsteps:1. Improving asset knowledge so that data

accurately records the asset inventory, howassets are performing and when assets arenot able to provide the required service levels,

2. Improving our efficiency in operating,maintaining, renewing and replacing existingassets to optimise life cycle costs,

3. Identifying and managing risks associatedwith providing services from infrastructure,

4. Making trade-offs between service levels andcosts to ensure that the community receivesthe best return from infrastructure,

5. Identifying assets surplus to needs fordisposal to make saving in future operationsand maintenance costs,

6. Consulting with the community to ensure thatfootpath services and costs meet communityneeds and are affordable,

7. Developing partnership with other bodies,where available to provide services,

8. Seeking additional funding from governmentsand other bodies to better reflect a ‘whole ofgovernment’ funding approach toinfrastructure services.

What happens if we don’t manage theshortfall?It is likely that we will have to reduce service levelsin some areas, unless new sources of revenue arefound. For footpaths, the service level reductionmay include a lower standard of footpath thatrequires higher levels of maintenance due to alonger renewal period.

What can we do?We can develop options, costs and priorities forfuture footpath services, consult with thecommunity to plan future services to match thecommunity service needs with ability to pay forservices and maximise community benefitsagainst costs.

What can you do?We will be pleased to consider your thoughts onthe issues raised in this asset management planand suggestions on how we may change orreduce the footpath mix of services to ensure thatthe appropriate level of service can be provided tothe community within available funding.


2. Introduction2.1 BackgroundThis asset management plan is to demonstrate responsive management of assets (and servicesprovided from assets), compliance with regulatory requirements, and to communicate fundingneeded to provide the required levels of service over a 20 year planning period.

The asset management plan follows the format for AM Plans recommended in Section 4.2.6 of theInternational Infrastructure Management Manual1.

The asset management plan is to be read with the organisation’s Asset Management Policy, AssetManagement Strategy and the following associated planning documents:

Community Plan 2022 Long Term Financial Plan (LTFP) City of Victor Harbor Pedestrian Strategy Victor Harbor Urban Growth Strategy Past Population Growth & Future Projections Report 2005 Victor Harbor Traffic Management Strategy 2005 Victor Harbor Coastal Management Study 2013

The infrastructure assets covered by this asset management plan are shown in Table 2.1. Theseassets are used to provide safe and efficient pedestrian services to its community.

Table 2.1: Assets covered by this Plan

Asset category Length (M) Area M2 Replacement Value

ASSET TYPEPramramps Surface NA NA $1,158,958.80Shared Pathways 8,895.86 20,852.71 $1,317,573.18Pedestrian Pathway 43,809.88 85,012.88 $7,500,839.18TOTAL $9,977,371.16

SURFACE Length (M) Area M2 Replacement ValuePramramps NA 898 Ramps $1,158,958.80Asphalt 28,805.84 56,699.65 $3,350,949.53Concrete 5,123.88 7,343.06 $898,238.55Exposed Aggregate 3,830.08 5,745.12 $924,390.29Gravel 1347.173757 4095.948292 $75,405.59Paving Bricks 13,391.68 31252.38748 $3,466,052.49Permeable Paving 103.332 573.7745 $86,200.41Soft Fall – Terrabond 103.77 155.65 $17,175.49TOTAL $9,977,371.16

1 IPWEA, 2011, Sec 4.2.6, Example of an Asset Management Plan Structure, pp 4|24 – 27.


Key stakeholders in the preparation and implementation of this asset management plan are: Shownin Table 2.1.1.

Table 2.1.1: Key Stakeholders in the AM PlanKey Stakeholder Role in Asset Management Plan

Elected Members Represent needs of community/shareholders, Allocate resources to meet the organisation’s objectives in

providing services while managing risks, Ensure organisation is financial sustainable.

City Manager Driver of council plans and directionCommunity Consumers of serviceVisitors Consumers of serviceManager Infrastructure Capital Works ProgramManager Finance Long Term Financial Plan & BudgetsManager Operations Capital Works and Maintenance Programs

Our organisation’s organisational structure for service delivery from infrastructure assets is detailedbelow:


2.2 Goals and Objectives of Asset ManagementThe organisation exists to provide services to its community. Some of these services are providedby infrastructure assets. We have acquired infrastructure assets by ‘purchase’, by contract,construction by our staff and by donation of assets constructed by developers and others to meetincreased levels of service.

Our goal in managing infrastructure assets is to meet the defined level of service (as amended fromtime to time) in the most cost effective manner for present and future consumers. The key elementsof infrastructure asset management are:

Providing a defined level of service and monitoring performance, Managing the impact of growth through demand management and infrastructure investment, Taking a lifecycle approach to developing cost-effective management strategies for the long-

term that meet the defined level of service, Identifying, assessing and appropriately controlling risks, and Having a long-term financial plan which identifies required, affordable expenditure and how

it will be financed.2

2.3 Plan FrameworkKey elements of the plan are

Levels of service – specifies the services and levels of service to be provided by theorganisation,

Future demand – how this will impact on future service delivery and how this is to be met, Life cycle management – how we will manage our existing and future assets to provide

defined levels of service, Financial summary – what funds are required to provide the defined services, Asset management practices, Monitoring – how the plan will be monitored to ensure it is meeting the organisation’s

objectives, Asset management improvement plan.

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

2 Based on IPWEA, 2011, IIMM, Sec 1.2 p 1|7.


Road Map for preparing an Asset Management PlanSource: IPWEA, 2006, IIMM, Fig 1.5.1, p 1.11.


2.4 Core and Advanced Asset ManagementThis asset management plan is prepared as a ‘core’ asset management plan over a 20 year planningperiod in accordance with the International Infrastructure Management Manual3. It is prepared tomeet minimum legislative and organisational requirements for sustainable service delivery and longterm financial planning and reporting. Core asset management is a ‘top down’ approach whereanalysis is applied at the ‘system’ or ‘network’ level.

Future revisions of this asset management plan will move towards ‘advanced’ asset managementusing a ‘bottom up’ approach for gathering asset information for individual assets to support theoptimisation of activities and programs to meet agreed service levels.

2.5 Community ConsultationThis ‘core’ asset management plan is prepared to facilitate community consultation initially throughfeedback on public display of draft asset management plans prior to adoption by the Council. Futurerevisions of the asset management plan will incorporate community consultation on service levelsand costs of providing the service. This will assist the Council and the community in matching thelevel of service needed by the community, service risks and consequences with the community’sability and willingness to pay for the service.

3. Levels of Service3.1 Customer Research and ExpectationsCouncil participated in the 2012 Local Government Roy Morgan Customer Satisfaction survey. Thistelephone survey polls a sample of residents on their level of satisfaction with the organisation’sservices. The most recent customer satisfaction survey reported satisfaction levels for the followingservices.

Table 3.1: Community Satisfaction Survey Levels

Performance Measure Satisfaction LevelVery

SatisfiedFairly

SatisfiedSatisfied Somewhat

satisfiedNot

satisfiedImportance that Council provides& maintains roads, footpaths &cycle tracks.

√

Mean (outof 10) 9.22

Performance in providing &maintaining roads, footpaths &cycle tracks.

√

Mean (outof 10) 5.94

The organisation uses this information in developing its Strategic Plan and in allocation of resourcesin the budget.

3 IPWEA, 2011, IIMM.


3.2 Strategic and Corporate GoalsThis asset management plan is prepared under the direction of the organisation’s vision, mission,goals and objectives.

Our vision is:

A thriving and sustainable regional coastal centre offering a wide range of attractive, highamenity lifestyle choices to our local community, the wider Fleurieu region, our visitors andfuture generations.

To achieve the Vision Council has identified four broad, interlinked objectives.

1. A strong economy and supportive business environment.

2. The sustainable provision of physical infrastructure and community services.

3. Environment and lifestyle protected against the pressures of projected population growth.

4. Leadership, service delivery and organisational management that underpins our strategicdirections.

Relevant organisation goals and objectives and how these are addressed in this assetmanagement plan are:

Table 3.2: Organisation Goals and how these are addressed in this Plan

Goal Objective How Goal and Objectives are addressed in AMPlan

Assets & Infrastructurethat are developed,managed andmaintained so that theyprovide the levels ofservice needs to thecommunity.

1. Develop and maintainsafe road, cycle andpedestrian corridorsand networks.

2. Ensure that Counciloperates in astrategically plannedenvironment.

3. Manage Council’sfinancial assets toimprove financialsustainability.

4. Continueinfrastructure andasset managementplanning.

1. Complete the asset management strategyand develop a 10 year infrastructure andasset management plans including theestablishment of levels of service to manageand maintain assets and infrastructure in themost cost effective and efficient manner.

2. Ensure that the planning, design andconstruction of our road network continues.

3. Regularly conduct condition andaccessibility audits of infrastructure anddevelop maintenance programs to ensureasset condition is appropriate.

4. Review asset financial managementprinciples, including revaluation anddepreciation.

The Council will exercise its duty of care to ensure public safety in accordance with theinfrastructure risk management plan prepared in conjunction with this AM Plan. Management ofinfrastructure risks is covered in Section 5.2

3.3 Legislative RequirementsWe have to meet many legislative requirements including Australian and State legislation andState regulations. These include:


Table 3.3: Legislative Requirements

Legislation RequirementLocal Government Act 1999 Sets out role, purpose, responsibilities and powers of local governments

including the preparation of a long term financial plan supported by assetmanagement plans for sustainable service delivery.

Environmental Protection Act Sets out role, purpose, responsibilities of local government in protecting theenvironment.

WHS Act Sets out role, purpose, responsibilities of local government in providing safework practices and worksites.

Australian Road Rules and RoadSafety Act

Set of model road rules developed by the National Road TransportCommission (NRTC) which form the platform for State and Territory roadrules across Australia. The first edition of the Rules was published on 19October 1999, and marked a milestone in road safety policy and legislationacross Australia.

Native Vegetation Act Provides incentives and assistance to landowners in relation to thepreservation and enhancement of native vegetation; to control the clearanceof native vegetation; and for other purposes.

River Murray Act Provides for the protection and enhancement of the River Murray and relatedareas and ecosystems; and for other purposes.

Coastal Protection Act Provides provision for the conservation and protection of the beaches andcoast of this State; and for other purposes.

Mutual Liability Scheme Sets out role, purpose, responsibilities of local government in managing riskand liabilities.

AAS27 Sets out responsibilities of local government for maintaining accountingstandards.

Australian Standards and AUS PEC Covers minor civil works NATSPEC’s major service is providing a nationalmaster specification to the construction industry.

3.4 Current Levels of ServiceWe have defined service levels in two terms.

Community Levels of Service measure how the community receives the service and whether theorganisation is providing community value.

Community levels of service measures used in the asset management plan are:

Quality How good is the service?Function Does it meet users’ needs?Capacity/Utilisation Is the service over or under used?

Technical Levels of Service - Supporting the community service levels are operational ortechnical measures of performance. These technical measures relate to the allocation of resourcesto service activities that the organisation undertakes to best achieve the desired communityoutcomes and demonstrate effective organisational performance.

Technical service measures are linked to annual budgets covering:

Operations – the regular activities to provide services such as opening hours, cleansingfrequency, mowing frequency, etc.

Maintenance – the activities necessary to retain an asset as near as practicable to an appropriateservice condition (eg road patching, unsealed road grading, building and structure repairs),


Renewal – the activities that return the service capability of an asset up to that which it hadoriginally (eg frequency and cost of road resurfacing and pavement reconstruction, pipelinereplacement and building component replacement),

Upgrade – the activities to provide an higher level of service (eg widening a road, sealing anunsealed road, replacing a pipeline with a larger size) or a new service that did not existpreviously (eg a new library).

Asset managers plan, implement and control technical service levels to influence the customerservice levels.4

Our current service levels are detailed in Table 3.4.

Table 3.4: Current and Desired Service Levels

KeyPerformance

Measure

Level of ServiceObjective

PerformanceMeasureProcess

Current Level of Service Optimal Level ofService

COMMUNITY LEVELS OF SERVICE

Quality Suitable network, withnon slip and trip surface

Number ofcustomerrequests

<3/year <3/year

Function Network linking highuse areas and ofappropriate width


Constructionstandards met

<1/year

Standards met

<1/year

Standards met

Safety Provide network freefrom hazards andseparated fromvehicular traffic


Injury anddamages claims

<0/year

<0/year

<0/year

<0/year

TECHNICAL LEVELS OF SERVICE

Condition Maintain surface to highstandards

Inspectionregime

Full condition assessmentundertaken every 4 years

Full conditionassessment undertakenevery 4 years

Safety Network free of triphazards andobstructions

Customerrequests <1/year <1/year

Accessibility Extensive network toand in high use areasand for age groups with

Customerrequests

<1/year <1/year

4 IPWEA, 2011, IIMM, p 2.22


special needs, meetinga network hierarchy

Refer tofootpathstrategy

Costeffectiveness

Cost effective materialselection andmaintenance practices

Optimisedconstruction forbudgetallocation

Best practice beingapplied

Best practice beingapplied

3.5 Desired Levels of ServiceIndications of desired levels of service are obtained from community consultation/engagement. Theasset management planning process includes the development of 3 scenarios to develop levels ofservice that are financially sustainable.

4. Future Demand4.1 Demand DriversDrivers affecting demand include population change, changes in demographics, seasonal factors,vehicle ownership rates, consumer preferences and expectations, technological changes, economicfactors, agricultural practices, environmental awareness, etc.

4.2 Demand ForecastThe present position and projections for demand drivers that may impact future service delivery andutilisation of assets were identified and are documented in Table 4.3.

4.3 Demand Impact on AssetsThe impact of demand drivers that may affect future service delivery and utilisation of assets areshown in Table 4.3.

Table 4.3: Demand Drivers, Projections and Impact on Services

The Department of Planning, Transport and Infrastructure (DPTI) recently released the officialpopulation projections for local government areas across the State based on the 2011 Censusreport.

The following table shows that latest population projections for Victor Harbor and compares theseto the previous projections.

Table 1: ABS Population

2006 CensusProjections

2011 CensusProjections

2011 Victor Harbor base population – 14,176

2016 16,171 15,6072021 17,673 17,3192026 19,343 19,204


2031 21,231

These figures indicate that Victor Harbor’s population is not expected to grow as quickly as initiallythought. Of particular note is the significant reduction in population growth anticipated between 2011and 2016, which when projected over subsequent five-year periods, results in a slightly lowerpopulation for the City by 2026 (by 139 persons or 0.8%). The number of people aged 65 and overwas projected to be in the order of 35.5% of the total population by 2026. The most recent projectionsindicate that by 2031, the number of people aged 65 and over in Victor Harbor will make up nearly40% of the total population.

Demand drivers Present position Projection Impact on services

Population 14,176 21,231 in 2031 Increase in demand forservices.

Demographics The increase in population isexpected to occur mainly inthe older demographic of65+.

The increase in population of1.5% per annum is expectedto continue in the built uparea of the city rather than inthe rural areas.

The infrastructure willincreasingly have to caterfor additional traffic,involving upgrading existingand supplying newinfrastructure includingfootpaths, pedestrianaccess locations andparking.

Climate Change Coastal Erosion Sea Level Rise – 3mm/year Before year 2050 Sea levelinundation is likely to showsome impact on Councilsinfrastructure. Refer to 2013AWE Coastal ManagementStudy.

Climate Change Coastal Erosion Sea Level Rise – 3mm/year Before year 2100 Sea levelinundation is likely to cause‘significant’ impact onCouncils infrastructure.Refer to 2013 AWE CoastalManagement Study.

4.4 Demand Management PlanDemand 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 managingfailures.

Non-asset solutions focus on providing the required service without the need for the organisation toown the assets and management actions including reducing demand for the service, reducing thelevel of service (allowing some assets to deteriorate beyond current service levels) or educatingcustomers to accept appropriate asset failures. Examples of non-asset solutions include providingservices from existing infrastructure such as aquatic centres and libraries that may be in anothercommunity area or public toilets provided in commercial premises.


Opportunities identified to date for demand management are shown in Table 4.4. Furtheropportunities will be developed in future revisions of this asset management plan.

Table 4.4: Demand Management Plan Summary

Demand Driver Impact on Services Demand Management Plan

Development of newresidentialsubdivisions

Can affect future capacityand utilisation requirements To meet requirements of township development

plans.

Creation of newassets

Increased service level Utilisation and demand.

4.5 Asset Programs to meet DemandThe new assets required to meet growth will be acquired free of cost from land developments andconstructed/acquired by the organisation. New assets constructed/acquired by the organisation arediscussed in Section 5.5. The cumulative value of new contributed and constructed asset values aresummarised in Figure 1.

Figure 1: Upgrade and New Assets to meet Demand

Acquiring these new assets will commit the organisation to fund ongoing operations, maintenanceand renewal costs for the period that the service provided from the assets is required. These futurecosts are identified and considered in developing forecasts of future operations, maintenance andrenewal costs in Section 5.


5. Lifecycle Management PlanThe lifecycle management plan details how the organisation plans to manage and operate the assetsat the agreed levels of service (defined in Section 3) while optimising life cycle costs.

5.1 Background Data

5.1.1 Physical parameters

The assets covered by this asset management plan are shown in Table 2.1.

Asset category Length (M) Area M2 Replacement Value

ASSET TYPEPramramps Surface NA NA $1,158,958.80Shared Pathways 8,895.86 20,852.71 $1,317,573.18Pedestrian Pathway 43,809.88 85,012.88 $7,500,839.18TOTAL $9,977,371.16

SURFACE Length (M) Area M2 Replacement ValuePramramps NA 898 Ramps $1,158,958.80Asphalt 28,805.84 56,699.65 $3,350,949.53Concrete 5,123.88 7,343.06 $898,238.55Exposed Aggregate 3,830.08 5,745.12 $924,390.29Gravel 1347.173757 4095.948292 $75,405.59Paving Bricks 13,391.68 31252.38748 $3,466,052.49Permeable Paving 103.332 573.7745 $86,200.41Soft Fall – Terrabond 103.77 155.65 $17,175.49TOTAL $9,977,371.16

The age profile of the assets included in this AM Plan is shown in Figure 2.

Figure 2: Asset Age Profile


5.1.2 Asset capacity and performance

The organisation’s services are generally provided to meet design standards where these areavailable.

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

Create of New Footpaths Without addressing council’s footpath assets appropriately to ensurethat they were maintained ‘fit for purpose’ to minimise potential liabilityclaims. It was difficult to justify the creation and construction of newfootpath.

Asset Maintenance to ExistingFootpaths

The lag in expenditure created over the past 15 years, excluding years2010 to 2015. This lag has impacted on footpath surfaces causingfailures and moisture infiltration and tree root intrusion has occurredtogether with a service level decrease has required greater financialinput to address the shortfall.

The above service deficiencies were identified from the results of the footpath condition assessmentsurvey undertaken during 2015.

5.1.3 Asset condition

Condition is monitored in accordance with methods developed by IPWEA outlined in the InternationalInfrastructure Management Manual (IIMM).

This approach was adopted here as the methods used in systems available locally at reasonableprices either did not rate the key attributes or attempted to force fit those attributes collected into


other fields which obscured the output. This had resulted in some practitioners adopting parallel andsomewhat independent databases based upon experience with their networks and to achieveoutputs which more closely matched the actual field conditions.

The approach at City of Victor Harbor was to incorporate all relevant attribute criteria at the datacollection with allowance for possible future changes and to accommodate system upgrades.

Refinements are continuing on the footpath asset register database.

The condition profile of our assets is shown in Figure 3.

Fig 3: Asset Condition Profile

Victor Harbor CC: Condition Profile (Footpaths_S1_V1) Data

Condition CRC ($'000) Weight (%)0 $0 0%1 $1,632 16%2 $4,768 48%3 $3,197 32%4 $319 3%5 $62 1%

*all dollar values in ($'000)'s


Not Rated 0 % 100 % 100 %

Good /Very Good

64.1 % 0 % 0 %

Fair 32 % 0 % 0 %

Poor /Very Poor

3.8 % 0 % 0 %

FOOTPATHSAverage Condition as of 30th June, 2015

Asset Average Condition RatingFootpaths 2.19

Condition is measured using a 0 – 6 grading system5 as detailed in Table 5.1.3.

5 IPWEA, 2011, IIMM, Sec 2.5.4, p 2|79.


Table 5.1.3: Simple Condition Grading Model

ConditionGrading

Description of Condition

0 Brand New: Asset is brand new.

1 Very Good: Near as new condition with no defects.

2 Good: Superficial deterioration. No issue with reliability. No maintenance is required.

3 Fair: Minor deterioration present. Routine maintenance may be required.

4 Poor: Significant deterioration present. Requires maintenance to keep the asset serviceable andprogramming for renewal/rehabilitation on forward 5 year works program.

5 Very Poor: Extensive deterioration present. Requires significant maintenance to keep the assetserviceable and programming for renewal/rehabilitation within the following year.

6 End of Life: Asset is unserviceable and provides no service. Asset cannot be used.

5.1.4 Asset valuations

The value of assets recorded in the asset register as at 30 June 2016 covered by this assetmanagement plan is shown below. Assets are valued at fair-value asset accounting based onAASB116 (Australian Accounting Standard Board). Refer to Attachment Valuation Methodology.

Current Replacement Cost $9,977,000

Depreciable Amount $9,977,000

Depreciated Replacement Cost6 $7,042,000

Annual Depreciation Expense $187,000

Useful lives were reviewed in June 2014 by detailed condition analysis.

Key assumptions made in preparing the valuations were:

Using local projects Using local data (metric unit rates) That the Footpath Asset Register is a true reflection of the actual network dimensions & composition

Major changes from previous valuations are due to better knowledge of the current network profileand history of works completed as well as the impact of market forces of materials required forconstruction and renewal.

Various ratios of asset consumption and expenditure have been prepared to help guide and gaugeasset management performance and trends over time.

Rate of Annual Asset Consumption 1.9%(Depreciation/Depreciable Amount)

Rate of Annual Asset Renewal 0.6%(Capital renewal exp/Depreciable amount)

6 Also reported as Written Down Current Replacement Cost (WDCRC).


Rate of Annual Asset Upgrade/New 3.8%(Capital upgrade exp/Depreciable amount)

Rate of Annual Asset Upgrade/New 3.8%(Including contributed assets)

In 2016 the organisation plans to renew assets at 31% of the rate they are being consumed and willbe increasing its asset stock by 3.8% in the year.

5.1.5 Historical Data

Capital Expenses2016-17

Budget

2015-16

Actual

2014-15

Actual

2013-14

Actual

$557,000 $494,305 $320,589 $142,795

Total $557,000 $494,305 $320,589 $142,795

Operation ExpensesAccount Number 2016-17

Budget (Bike PathSignage)

2015-16

Actual (Bike Strategy)

2014-15

Actual

2013-14

Actual

$10,000 $48,193 $000 $000

Total $10,000 $48,193 $000 $000

Maintenance ExpensesAccount Number 2016-17

Budget

2015-16

Actual

2014-15

Actual

2013-14

Actual

63370 $80,000 $101,298 $90,743 $79,932

Total $80,000 $101,298 $90,743 $79,932

5.2 Infrastructure Risk Management PlanAn assessment of risks7 associated with service delivery from infrastructure assets has identifiedcritical risks that will result in loss or reduction in service from infrastructure assets or a ‘financialshock’ to the organisation. The risk assessment process identifies credible risks, the likelihood ofthe risk event occurring, the consequences should the event occur, develops a risk rating, evaluatesthe 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,

7Organisation’s Infrastructure Risk Management Plan


together with the estimated residual risk after the selected treatment plan is operational aresummarised in Table 5.2. These risks are reported to management and Council.

Table 5.2: Critical Risks and Treatment Plans

Service orAsset at Risk

What can Happen RiskRating

(VH,H)

Risk Treatment Plan ResidualRisk *

TreatmentCosts

Footpath Lip,Trip Point

Increase inpedestrian fall &trip

H Prioritised Action Plan L $80/m2(asphalt)$135/m2 (pavers& concrete)

Note * The residual risk is the risk remaining after the selected risk treatment plan is operational.Sample above, Refer to Footpath Infrastructure Risk Management Plan

5.3 Routine Operations and Maintenance PlanOperations include regular activities to provide services such as public health, safety and amenity,eg street sweeping, grass mowing and street lighting.

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 assetoperational again.

5.3.1 Operations and Maintenance Plan

Operations activities affect service levels including quality and function through street sweeping andgrass mowing frequency, intensity and spacing of street lights and cleaning frequency and openinghours of building and other facilities.

Maintenance includes all actions necessary for retaining an asset as near as practicable to anappropriate service condition including regular ongoing day-to-day work necessary to keep assetsoperating, eg road patching but excluding rehabilitation or renewal. Maintenance may be classifiesinto reactive, planned and specific maintenance work activities.

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

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

Specific maintenance is replacement of higher value components/sub-components of assets that isundertaken on a regular cycle including repainting, replacing air conditioning units, etc. This workfalls below the capital/maintenance threshold but may require a specific budget allocation.

Actual past maintenance expenditure is shown in Table 5.3.1.

Table 5.3.1: Maintenance Expenditure Trends

Year Maintenance ExpenditurePlanned and Specific Unplanned

2013-14 $79,932 $0002014-15 $90,743 $0002015-16 $101,298 $000


2016-17 $80,000 $000

Planned maintenance work is currently 100% of total maintenance expenditure.

Maintenance expenditure levels are considered to be adequate to meet projected service levels,which may be less than or equal to current service levels. Where maintenance expenditure levelsare such that will result in a lesser level of service, the service consequences and service risks havebeen identified and service consequences highlighted in this AM Plan and service risks consideredin the Infrastructure Risk Management Plan.

Assessment and prioritisation of reactive maintenance is undertaken by the organisation’s staffusing experience and judgement.

5.3.2 Operations and Maintenance Strategies

The organisation will operate and maintain assets to provide the defined level of service to approvedbudgets in the most cost-efficient manner. The operation and maintenance activities include:

Scheduling operations activities to deliver the defined level of service in the most efficientmanner,

Undertaking maintenance activities through a planned maintenance system to reducemaintenance costs and improve maintenance outcomes. Undertake cost-benefit analysis todetermine the most cost-effective split between planned and unplanned maintenance activities(50 – 70% planned desirable as measured by cost),

Maintain a current infrastructure risk register for assets and present service risks associated withproviding services from infrastructure assets and reporting Very High and High risks and residualrisks after treatment to management and Council,

Review current and required skills base and implement workforce training and development tomeet required operations and maintenance needs,

Review asset utilisation to identify underutilised assets and appropriate remedies, and overutilised assets and customer demand management options,

Maintain a current hierarchy of critical assets and required operations and maintenance activities, Develop and regularly review appropriate emergency response capability, Review management of operations and maintenance activities to ensure the organisation is

obtaining best value for resources used.

Asset hierarchyAn asset hierarchy provides a framework for structuring data in an information system to assist incollection of data, reporting information and making decisions. The hierarchy includes the assetclass and component used for asset planning and financial reporting and service level hierarchyused for service planning and delivery.

The organisation’s service hierarchy is shown is Table 5.3.2.

Table 5.3.2: Asset Service Hierarchy

Service Hierarchy Service Level ObjectiveCollection Roads - Footpaths High Service LevelDistributor Roads - Footpaths High Service LevelMinor Streets - Footpaths Low Service LevelSchools High Service LevelShops Medium Service LevelAged Care Facility High Service Level


Critical AssetsCritical assets are those assets which have a high consequence of failure but not necessarily a highlikelihood of failure. By identifying critical assets and critical failure modes, organisations can targetand refines investigative activities, maintenance plans and capital expenditure plans at theappropriate time.

Operations and maintenances activities may be targeted to mitigate critical assets failure andmaintain service levels. These activities may include increased inspection frequency, highermaintenance intervention levels, etc. Critical assets failure modes and required operations andmaintenance activities are detailed in Table 5.3.2.1.

Table 5.3.2.1: Critical Assets and Service Level Objectives

Critical Assets Critical Failure Mode Operations & Maintenance ActivitiesNA NA NA

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

DPTI Part 284 – Construction of Secondary Paving AAPA National Sealing Specification Austroads Guide to Spray Sealing City of Victor Harbor Work Method Statements City of Victor Harbor Levels of Service Australian Standard 2150 Hotmix Asphalt

5.3.3 Summary of future operations and maintenance expenditures

Future operations and maintenance expenditure is forecast to trend in line with the value of the assetstock as shown in Figure 4. Note that all costs are shown in current 2016 dollar values (ie realvalues).

Figure 4: Projected Operations and Maintenance Expenditure

Deferred maintenance, i.e. works that are identified for maintenance and unable to be funded are tobe included in the risk assessment and analysis in the infrastructure risk management plan.


Maintenance is funded from the operating budget where available. This is further discussed inSection 6.2.

5.4 Renewal/Replacement PlanRenewal and replacement expenditure is major work which does not increase the asset’s designcapacity but restores, rehabilitates, replaces or renews an existing asset to its original or lesserrequired service potential. Work over and above restoring an asset to original service potential isupgrade/expansion or new works expenditure.

5.4.1 Renewal plan

Assets requiring renewal/replacement are identified from one of three methods provided in the‘Expenditure Template’.

Method 1 uses Asset Register data to project the renewal costs using acquisition year and usefullife to determine the renewal year, or

Method 2 uses capital renewal expenditure projections from external condition modellingsystems (such as Pavement Management Systems), or

Method 3 uses a combination of average network renewals plus defect repairs in the RenewalPlan and Defect Repair Plan worksheets on the ‘Expenditure template’.

Method 2 was used for this asset management plan.

The useful lives of assets used to develop projected asset renewal expenditures are shown in Table5.4.1. Asset useful lives were last reviewed during 2014.8

Table 5.4.1: Useful Lives of Assets

Asset (Sub)Category Useful lifePram Ramps 50Asphalt 30Concrete 50Exposed Aggregate 50Gravel 45Paving Bricks 45Softfall - Terrabond 15

5.4.2 Renewal and Replacement Strategies

The organisation will plan capital renewal and replacement projects to meet level of serviceobjectives and minimise infrastructure service risks by:

Planning and scheduling renewal projects to deliver the defined level of service in the most efficientmanner,

Undertaking project scoping for all capital renewal and replacement projects to identify:o the service delivery ‘deficiency’, present risk and optimum time for renewal/replacement,o the project objectives to rectify the deficiency,o the range of options, estimated capital and life cycle costs for each options that could address

the service deficiency,o and evaluate the options against evaluation criteria adopted by the organisation, ando select the best option to be included in capital renewal programs,

Using ‘low cost’ renewal methods (cost of renewal is less than replacement) wherever possible,

8 Review of Useful Life of Assets


Maintain a current infrastructure risk register for assets and service risks associated with providingservices from infrastructure assets and reporting Very High and High risks and residual risks aftertreatment to management and the Council,

Review current and required skills base and implement workforce training and development to meetrequired construction and renewal needs,

Maintain a current hierarchy of critical assets and capital renewal treatments and timings required , Review management of capital renewal and replacement activities to ensure the organisation is

obtaining best value for resources used.

Renewal ranking criteriaAsset renewal and replacement is typically undertaken to either:

Ensure the reliability of the existing infrastructure to deliver the service it was constructed to facilitate (egreplacing a bridge that has a 5 t load limit), or

To ensure the infrastructure is of sufficient quality to meet the service requirements (eg roughness of aroad).9

It is possible to get some indication of capital renewal and replacement priorities by identifying assetsor asset groups that:

Have a high consequence of failure, Have a high utilisation and subsequent impact on users would be greatest, The total value represents the greatest net value to the organisation, Have the highest average age relative to their expected lives, Are identified in the AM Plan as key cost factors, Have high operational or maintenance costs, and Where replacement with modern equivalent assets would yield material savings.10

The ranking criteria used to determine priority of identified renewal and replacement proposals isdetailed in Table 5.4.2

Table 5.4.2: Renewal and Replacement Priority Ranking Criteria

Criteria WeightingCondition Rating (4 and 5) 30%Risks – (residual high and/or extreme risks) 30%Utilisation 20%Public Need 20%Total 100%

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

DPTI Part 284 – Construction of Secondary Paving Australian Standard 2150 Hotmix Asphalt AAPA National Sealing Specification Austroads Guide to Spray Sealing

9 IPWEA, 2011, IIMM, Sec 3.4.4, p 3|60.10 Based on IPWEA, 2011, IIMM, Sec 3.4.5, p 3|66.


5.4.3 Summary of future renewal and replacement expenditure

Projected future renewal and replacement expenditures are forecast to increase over time as theasset stock increases from growth. The expenditure is summarised in Fig 5. Note that all amountsare shown in real values.

The projected capital renewal and replacement program is shown in Appendix B.

Fig 5: Projected Capital Renewal and Replacement Expenditure

Deferred renewal and replacement, ie those assets identified for renewal and/or replacement andnot scheduled in capital works programs are to be included in the risk analysis process in the riskmanagement plan.

Renewals and replacement expenditure in the organisation’s capital works program will beaccommodated in the long term financial plan. This is further discussed in Section 6.2.

5.5 Creation/Acquisition/Upgrade PlanNew works are those works that create a new asset that did not previously exist, or works whichupgrade 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 organisation fromland 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 ascouncillor or community requests, proposals identified by strategic plans or partnerships with otherorganisations. Candidate proposals are inspected to verify need and to develop a preliminaryrenewal estimate. Verified proposals are ranked by priority and available funds and scheduled infuture works programmes. The priority ranking criteria is detailed below.

Table 5.5.1: New Assets Priority Ranking Criteria

Criteria WeightingPublic Need 30%Risks – (residual high or extreme risks) 10%


Utilisation 20%Reference to Footpath Strategy 40%Total 100%

5.5.2 Capital Investment Strategies

The organisation will plan capital upgrade and new projects to meet level of service objectives by:

Planning and scheduling capital upgrade and new projects to deliver the defined level of service in themost efficient manner,

Undertake project scoping for all capital upgrade/new projects to identify:o the service delivery ‘deficiency’, present risk and required timeline for delivery of the

upgrade/new asset,o the project objectives to rectify the deficiency including value management for major

projects,o the range of options, estimated capital and life cycle costs for each options that could

address the service deficiency,o management of risks associated with alternative options,o and evaluate the options against evaluation criteria adopted by Council, ando select the best option to be included in capital upgrade/new programs,

Review current and required skills base and implement training and development to meet requiredconstruction and project management needs,

Review management of capital project management activities to ensure the organisation is obtainingbest value for resources used.

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

5.5.3 Summary of future upgrade/new assets expenditure

Projected upgrade/new asset expenditures are summarised in Fig 6. The projected upgrade/newcapital works program is shown in Appendix C. All amounts are shown in real values.

Fig 6: Projected Capital Upgrade/New Asset Expenditure


Expenditure on new assets and services in the organisation’s capital works program will beaccommodated in the long term financial plan. This is further discussed in Section 6.2.

5.6 Disposal PlanDisposal includes any activity associated with disposal of a decommissioned asset including sale,demolition or relocation. Assets identified for possible decommissioning and disposal are shown inTable 5.6, together with estimated annual savings from not having to fund operations andmaintenance of the assets. These assets will be further reinvestigated to determine the requiredlevels of service and see what options are available for alternate service delivery, if any. Any revenuegained from asset disposals is accommodated in the organisation’s long term financial plan.

Where cashflow projections from asset disposals are not available, these will be developed in futurerevisions of this asset management plan.

Table 5.6: Assets Identified for Disposal

Asset Reason for Disposal Timing Disposal Expenditure Operations &Maintenance Annual

SavingsFootpaths None Proposed N/A N/A N/A

5.7 Service Consequences and RisksThe organisation has prioritised decisions made in adopting this AM Plan to obtain the optimumbenefits from its available resources. Decisions were made based on the development of 3scenarios of AM Plans.

Scenario 1 - What we would like to do based on asset register data.

Scenario 2 – What we should do with existing budgets and identifying level of service and riskconsequences (ie what are the operations and maintenance and capital projects we are unable todo, what is the service and risk consequences associated with this position). This may requireseveral versions of the AM Plan.

Scenario 3 – What we can do and be financially sustainable with AM Plans matching long-termfinancial plans.

The development of scenario 1 and scenario 2 AM Plans provides the tools for discussion with theCouncil and community on trade-offs between what we would like to do (scenario 1) and what weshould be doing with existing budgets (scenario 2) by balancing changes in services and servicelevels with affordability and acceptance of the service and risk consequences of the trade-off position(scenario 3).

5.7.1 What we cannot do

There are some operations and maintenance activities and capital projects that are unable to beundertaken within the next 10 years. These include:

Creation of New Assets

5.7.2 Service consequences

Operations and maintenance activities and capital projects that cannot be undertaken will maintainor create service consequences for users. These include:

None Known


5.7.3 Risk consequences

The operations and maintenance activities and capital projects that cannot be undertaken maymaintain or create risk consequences for the organisation. These include:

Some community members may see a need for a footpath with low utilisation

These risks have been included with the Infrastructure Risk Management Plan summarised inSection 5.2 and risk management plans actions and expenditures included within projectedexpenditures.

6. Financial SummaryThis section contains the financial requirements resulting from all the information presented in theprevious sections of this asset management plan. The financial projections will be improved asfurther information becomes available on desired levels of service and current and projected futureasset performance.

6.1 Financial Statements and ProjectionsThe financial projections are shown in Fig 7 for projected operating (operations and maintenance)and capital expenditure (renewal and upgrade/expansion/new assets). Note that all costs are shownin real values.

Fig 7: Projected Operating and Capital Expenditure

6.1.1 Sustainability of service delivery

There are four key indicators for service delivery sustainability that have been considered in theanalysis of the services provided by this asset category, these being the asset renewal fundingratio, long term life cycle costs/expenditures and medium term projected/budgeted expendituresover 5 and 10 years of the planning period.


Asset Renewal Funding RatioAsset Renewal Funding Ratio11 100%

The Asset Renewal Funding Ratio is the most important indicator and reveals that over the next 10years, the organisation is forecasting that it will have 100% of the funds required for the optimalrenewal and replacement of its assets.

Long term - Life Cycle CostLife cycle costs (or whole of life costs) are the average costs that are required to sustain the servicelevels over the asset life cycle. Life cycle costs include operations and maintenance expenditureand asset consumption (depreciation expense). The life cycle cost for the services covered in thisasset management plan is $299,000 per year (average operations and maintenance expenditureplus depreciation expense projected over 10 years).

Life cycle costs can be compared to life cycle expenditure to give an initial indicator of affordabilityof projected service levels when considered with age profiles. Life cycle expenditure includesoperations, maintenance and capital renewal expenditure. Life cycle expenditure will vary dependingon the timing of asset renewals. The life cycle expenditure over the 10 year planning period is$252,000 per year (average operations and maintenance plus capital renewal budgeted expenditurein LTFP over 10 years).

A shortfall between life cycle cost and life cycle expenditure is the life cycle gap. The life cycle gapfor services covered by this asset management plan is $-47,000 per year (-ve = gap, +ve = surplus).

Life cycle expenditure is 84% of life cycle costs.

The life cycle costs and life cycle expenditure comparison highlights any difference between presentoutlays and the average cost of providing the service over the long term. If the life cycle expenditureis less than that life cycle cost, it is most likely that outlays will need to be increased or cuts in servicesmade in the future.

Knowing the extent and timing of any required increase in outlays and the service consequences iffunding is not available will assist organisations in providing services to their communities in afinancially sustainable manner. This is the purpose of the asset management plans and long termfinancial plan.

Medium term – 10 year financial planning periodThis asset management plan identifies the projected operations, maintenance and capital renewalexpenditures required to provide an agreed level of service to the community over a 10 year period.This provides input into 10 year financial and funding plans aimed at providing the required servicesin a sustainable manner.

These projected expenditures may be compared to budgeted expenditures in the 10 year period toidentify any funding shortfall. In a core asset management plan, a gap is generally due to increasingasset renewals for ageing assets.

The projected operations, maintenance and capital renewal expenditure required over the 10 yearplanning period is $269,000 on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $252,000 on averageper year giving a 10 year funding positive of $-17,000 per year. This indicates that the organisationexpects to have 94% of the projected expenditures needed to provide the services documented inthe asset management plan.

11 AIFMG, 2009, Financial Sustainability Indicator 8, Sec 2.6, p 2.18


Medium Term – 5 year financial planning periodThe projected operations, maintenance and capital renewal expenditure required over the first 5years of the planning period is $242,000 on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $235,000 on averageper year giving a 5 year funding positive of $-7,000. This indicates that the organisation expects tohave 97% of projected expenditures required to provide the services shown in this assetmanagement plan.

Asset management financial indicatorsFigure 7A shows the asset management financial indicators over the 10 year planning period andfor the long term life cycle.

Figure 7A: Asset Management Financial Indicators

Providing services from infrastructure in a sustainable manner requires the matching and managingof service levels, risks, projected expenditures and financing to achieve a financial indicator ofapproximately 1.0 for the first years of the asset management plan and ideally over the 10 year lifeof the Long Term Financial Plan.

Figure 8 shows the projected asset renewal and replacement expenditure over the 20 years of theAM Plan. The projected asset renewal and replacement expenditure is compared to renewal andreplacement expenditure in the capital works program, which is accommodated in the long termfinancial plan


Figure 8: Projected and LTFP Budgeted Renewal Expenditure

Table 6.1.1 shows the shortfall between projected renewal and replacement expenditures andexpenditure accommodated in long term financial plan. Budget expenditures accommodated in thelong term financial plan or extrapolated from current budgets are shown in Appendix D.

Table 6.1.1: Projected and LTFP Budgeted Renewals and Financing Shortfall

Victor Harbor CC - Report 4 - Table 6.1.1 Renewals Financing (Footpaths_S2_V1)

Year End Projected LTFP Renewal Financing Cumulative Shortfall($'000)30-Jun Renewals Renewal Budget Shortfall ($'000) (- gap, + surplus)

($'000) ($'000) (- gap, + surplus)2017 $58 $58 $0 $02018 $107 $107 $0 $02019 $15 $15 $0 $02020 $350 $350 $0 $02021 $170 $170 $0 $02022 $200 $200 $0 $02023 $100 $100 $0 $02024 $170 $170 $0 $02025 $200 $200 $0 $02026 $200 $200 $0 $02027 $157 $157 $0 $02028 $157 $157 $0 $02029 $157 $157 $0 $02030 $157 $157 $0 $02031 $157 $157 $0 $02032 $157 $157 $0 $02033 $157 $157 $0 $02034 $157 $157 $0 $02035 $157 $157 $0 $02036 $157 $157 $0 $0


Note: A negative shortfall indicates a financing gap, a positive shortfall indicates a surplus for that year.

Providing services in a sustainable manner will require matching of projected asset renewal andreplacement expenditure to meet agreed service levels with the corresponding capital worksprogram accommodated in the long term financial plan.

A gap between projected asset renewal/replacement expenditure and amounts accommodated inthe LTFP indicates that further work is required on reviewing service levels in the AM Plan (includingpossibly revising the LTFP) before finalising the asset management plan to manage required servicelevels and funding to eliminate any funding gap.

We will manage the ‘gap’ by developing this asset management plan to provide guidance on futureservice levels and resources required to provide these services, and review future services, servicelevels and costs with the community.

6.1.2 Projected expenditures for long term financial plan

Table 6.1.2 shows the projected expenditures for the 10 year long term financial plan.

Expenditure projections are in 2016 real values.

Table 6.1.2: Projected Expenditures for Long Term Financial Plan ($000)

Victor Harbor CC - Report 5 - Table 6.1.2 Long Term Financial Plan (Footpaths_S2_V1)

Year Operations MaintenanceProjected Capital

DisposalsCapital Renewal Upgrade/New

2017 $10.00 $85.00 $58.00 $381.00 $0.002018 $10.38 $88.25 $107.00 $206.00 $0.002019 $10.59 $90.00 $15.00 $591.00 $0.002020 $11.18 $95.04 $350.00 $472.00 $0.002021 $11.65 $99.06 $170.00 $422.00 $0.002022 $12.08 $102.65 $200.00 $470.00 $0.002023 $12.55 $106.66 $100.00 $474.00 $0.002024 $13.02 $110.70 $170.00 $133.00 $0.002025 $13.16 $111.83 $200.00 $258.00 $0.002026 $13.41 $114.03 $200.00 $100.00 $0.002027 $13.52 $114.88 $157.00 $350.70 $0.002028 $13.87 $117.87 $157.00 $350.70 $0.002029 $14.22 $120.85 $157.00 $350.70 $0.002030 $14.57 $123.84 $157.00 $350.70 $0.002031 $14.92 $126.83 $157.00 $350.70 $0.002032 $15.27 $129.82 $157.00 $350.70 $0.002033 $15.62 $132.81 $157.00 $350.70 $0.002034 $15.98 $135.79 $157.00 $350.70 $0.002035 $16.33 $138.78 $157.00 $350.70 $0.002036 $16.68 $141.77 $157.00 $350.70 $0.00


6.2 Funding StrategyAfter reviewing service levels, as appropriate to ensure ongoing financial sustainability projectedexpenditures identified in Section 6.1.2 will be accommodated in the organisation’s 10 year longterm financial plan.

6.3 Valuation ForecastsAsset values are forecast to increase as additional assets are added to the asset stock fromconstruction and acquisition by the organisation and from assets constructed by land developersand others and donated to the organisation. Figure 9 shows the projected replacement cost assetvalues over the planning period in real values.

Figure 9: Projected Asset Values

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


Figure 10: Projected Depreciation Expense

The depreciated replacement cost will vary over the forecast period depending on the rates ofaddition of new assets, disposal of old assets and consumption and renewal of existing assets.Forecast of the assets’ depreciated replacement cost is shown in Figure 11. The depreciatedreplacement cost of contributed and new assets is shown in the darker colour and in the lightercolour for existing assets.

Figure 11: Projected Depreciated Replacement Cost

6.4 Key Assumptions made in Financial ForecastsThis section details the key assumptions made in presenting the information contained in this assetmanagement plan and in preparing forecasts of required operating and capital expenditure and assetvalues, depreciation expense and carrying amount estimates. It is presented to enable readers togain an understanding of the levels of confidence in the data behind the financial forecasts.


Key assumptions made in this asset management plan and risks that these may change are shownin Table 6.4.

Table 6.4: Key Assumptions made in AM Plan and Risks of Change

Key Assumptions Risks of Change to AssumptionsAll expenditure is stated in dollar values as at 2016with no allowance made for inflation over the 10-yearplanning period.

All values are in today’s dollars, no % increase has beenincluded.

Initial renewal and new costs have been reviewed onthe basis of historical costs, condition deteriorationwork, and compared to the depreciation provisionand the funding available. Renewal costs typicallyincrease by an average of 3-4% per annum over thelife of the Plan to allow for the impact of an enlargedasset base.

Cost assumptions based on past and known costs.

Similarly, Maintenance costs typically increase byabout 3% per annum to allow for the increase in totalasset value (reflecting the higher costs associatedwith managing a larger network base). Again, asasset value is predicted to increase by some 2% overthe life of the Plan, this assumption will need to beclosely monitored to ensure that sufficientmaintenance funds are available to optimise longterm expenditure and not create a backlog.

Cost assumptions based on past and known costs.

Continuation of the current rate and pattern of urbandevelopment.

Population growth factor of 1.5% per year has beenincluded.

Capital forecast costs for ‘Renewal’ & ‘Upgrade/New’have been placed into their respective categories;this was based on limited information.

Cost assumptions are based on past and known costsincluding the break-down costs to reflect ‘Renewal’ &‘Upgrade/New’ Capital costs.

6.5 Forecast Reliability and ConfidenceThe expenditure and valuations projections in this AM Plan are based on best available data.Currency and accuracy of data is critical to effective asset and financial management. Dataconfidence is classified on a 5 level scale12 in accordance with Table 6.5.

12 IPWEA, 2011, IIMM, Table 2.4.6, p 2|59.


Table 6.5: Data Confidence Grading System

ConfidenceGrade

Description

A Highly reliable Data based on sound records, procedures, investigations and analysis, documented properly andrecognised as the best method of assessment. Dataset is complete and estimated to be accurate± 2%

B Reliable Data based on sound records, procedures, investigations and analysis, documented properly buthas minor shortcomings, for example some of the data is old, some documentation is missingand/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete andestimated to be accurate ± 10%

C Uncertain Data based on sound records, procedures, investigations and analysis which is incomplete orunsupported, or extrapolated from a limited sample for which grade A or B data are available.Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ±25%

D Very Uncertain Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Datasetmay not be fully complete and most data is estimated or extrapolated. Accuracy ± 40%

E Unknown None or very little data held.

The estimated confidence level for and reliability of data used in this AM Plan is shown in Table6.5.1.

Table 6.5.1: Data Confidence Assessment for Data used in AM Plan

Data Confidence Assessment CommentDemand drivers Reliable Regional trends available

Growth projections Highly Reliable Trends available

Operations expenditures Highly Reliable Extrapolated from previous years

Maintenanceexpenditures

Highly Reliable Extrapolated from previous years

Projected Renewal exps.- Asset values

Reliable Valuation completed in 2014

- Asset residual values Reliable Identified in Condition assessment but not applied toregister

- Asset useful lives Reliable Identified in Condition assessment but not applied toregister

- Condition modelling Reliable Comprehensively completed in 2015

- Network renewals Highly Reliable Based on Condition assessment and operationalexperience

- Defect repairs Reliable Scheduled maintenance is approx. 100% of totalmaintenance

Upgrade/Newexpenditures

Reliable Align to LTFP – Capital Works Program

Disposal expenditures Reliable Not Applicable

Over all data sources, the data confidence is assessed as High confidence level for data used in thepreparation of this AM Plan.


7. Plan Improvement and Monitoring7.1 Status of Asset Management Practices

7.1.1 Accounting and financial systems

The finance system used by the City of Victor Harbor includes:

SynergySoft (IT Vision)

o Actual and historical transactionso Budgetingo Inventorieso Recording of Infrastructure, including plant, property and equipmento Depreciation of the assets, including useful and remaining lives of assetso Creditors payments systemo Debtors receiptingo Banking and reconciliation with the general ledger

Magic Performance (Magiq Software Pty Ltd)

o Preparation of budgetso Budget Reviewso Reporting and analysiso Import / export of data from SynergySoft

MyData (Assetic Pty Ltd)

o Recording of infrastructure, land & building assetso Depreciation of infrastructure, land & buildingso Condition rating, useful lives and unit rates of infrastructure, land & buildingso Reporting and analysis

Accountabilities for financial systemsThe responsibility for the integrity of the finance system is with the Finance Manager and the Team LeaderFinance.

Accounting standards and regulationsThe accounting standards and guidelines that must be complied with are as follows:

Local Government Act 1999 Local Government (General) Regulations 1999 Local Government (Financial Management) Regulations 2011 State and Federal Legislation (eg taxes) Australian Accounting Standards set by the Australian Accounting Standards Board (AASB) Australasian Equivalents to the International Financial Reporting Standards City of Victor Harbor Internal Control procedures

Capital/maintenance thresholdCapital thresholds vary between $1,000 and $10,000. If the improvements are below these amounts then itwould be included in the operating budget as maintenance.


7.2.1 Asset management system

The council uses both SynergySoft and MyData software for asset maintenance. New infrastructure & openspace assets are created and maintained within the Environment and Infrastructure Department.

New land & building assets are created and maintained within the Corporate & Community ServicesDepartment. A single line entry for each asset class in MyData is recorded in SynergySoft and records fordepreciation, additions, disposals and adjustments are reconciled between the two systems. The assetregister is sourced from both systems and compiled on an annual basis.

Accountabilities for asset management system and data maintenanceWhile the responsibility of the financial data of the assets is with the Finance Manager and the Team LeaderFinance, the accountability for accuracy of the asset information is as follows:

o Manager Infrastructure – Infrastructure (excluding Open Space)o Manager Environment & Recreation – Open Spaceo Manager Finance – Land and Buildings

7.2 Improvement ProgramThe asset management improvement plan generated from this asset management plan is shown inTable 7.2

Table 7.2: Improvement Plan

TaskNo

Task Responsibility ResourcesRequired

Timeline

1 Annually Review 10 Year Capital Works Program DEIS, MI Staff October/ Novembereach year

2 Reflect actual useful lives in next valuation of theassociated infrastructure assets (desk topreview)

DEIS, IO, MI,MF,Assetic

Staff, Assetic As per revaluationrequirements

3 Review Levels of Service DEIS Staff October/Novembereach year

4 Continue to maintain and quality check the assetregister

IO, MI Staff On-going

5 LTFP & Asset Management Plan are to align MF, DEIS Staff Commencement atthe end of eachfinancial year inreadiness for the newFY

7.3 Monitoring and Review ProceduresThis asset management plan will be reviewed during annual budget planning processes andamended to recognise any material changes in service levels and/or resources available to providethose services as a result of budget decisions.

The AM Plan will be updated annually to ensure it represents the current service level, asset values,projected operations, maintenance, capital renewal and replacement, capital upgrade/new and assetdisposal expenditures and projected expenditure values incorporated into the organisation’s longterm financial plan.

The AM Plan has a life of 4 years (council election cycle) and is due for complete revision andupdating within 2 years of each council election.


7.4 Performance MeasuresThe effectiveness of the asset management plan can be measured in the following ways:

The degree to which the required projected expenditures identified in this asset managementplan are incorporated into the organisation’s long term financial plan,

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

The degree to which the existing and projected service levels and service consequences (whatwe cannot do), risks and residual risks are incorporated into the organisation’s Strategic Planand associated plans.


8. ReferencesIPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public Works

Engineering Australia, Sydney, www.ipwea.org.au/IIMM

IPWEA, 2008, ‘NAMS.PLUS Asset Management’, Institute of Public Works Engineering Australia,Sydney, www.ipwea.org.au/namsplus.

IPWEA, 2009, ‘Australian Infrastructure Financial Management Guidelines’, Institute of PublicWorks Engineering Australia, Sydney, www.ipwea.org.au/AIFMG.

IPWEA, 2011, ‘International Infrastructure Management Manual’, Institute of Public WorksEngineering Australia, Sydney, www.ipwea.org.au/IIMM

Footpaths Infrastructure Risk Management Plan

Organisation, ‘Annual Plan and Budget’

Victor Harbor Community Plan 2022

Victor Harbor Pedestrian Strategy

Victor Harbor Urban Growth Management Strategy

Victor Harbor Coastal Management Study 2013

Victor Harbor Bike Strategy 2016


9. AppendicesAppendix A Maintenance Response Levels of Service

Appendix B Projected 10 Year Capital Renewal and Replacement Works Program

Capital Renewal and Replacement Works Program Based on ConditionAssessments – Condition 4 & 5 Ratings

Appendix C Projected 10 Year Capital Upgrade/New Works Program

Appendix D Budgeted Expenditures Accommodated in LTFP

Appendix E Gifted Assets 2010-2016

Appendix F Aerial Plans – Existing Footpath Network

Appendix G Abbreviations

Appendix H Glossary


Appendix A Maintenance Response Levels of ServiceAsset Type Asset Service Standard Responsible Group / Area Level of Service

Barbeques Clean All Public Electric BBQ’s Open Space – Group Leader Twice per week, 3x during peaktimes January & December

Bluff Boat Ramp Remove algae and slim, to preventslipperiness

Construction and Maintenance -Group Leader

October, December, March,February, April

Inman River Mouth Ensure River Mouth is Clear andFlowing Freely


Checked before rains occur

Walking Trails - particularly Hindmarsh River andInman River Trails

Check and undertake any necessaryMaintenance

Open Space – Group Leader December, March, June, September

Public Toilets - particularly Town Hall, Causeway,Soldiers Memorial Reserve (SMR) and Kent Reserve

Check soap and Toilet Papersupplies prior to weekends.Ring contractor if need replacing


Every Friday during the afternoon

Stormwater, Ocean Outlets Check all Stormwater pipe outlets,ensure all are clean and clean


Once a week or before rains occur

Gross Pollutant Traps (GPTs) Engage Contractor to Clean andRemove all debris from GrossPollutant Traps (GPTs) in readinessfor Winter


March

Stormwater, Ocean Outlet - Croquet Club / SkatePark Car Park

Engage Contractor to Clean andRemove all debris from Car ParkStormwater Pit to Ocean Outfall


March

Rotunda Grosvenor Gardens Clean Rotunda Floor and Surrounds Open Space – Group Leader January, February, March, April,May, June, July, August, September,October, November, December

Adelaide Road - Visitor Information Parking Bay Clean up and general maintenanceas required

Open Space – Group Leader December, March, June, September


Back Valley Tennis Club Maintenance to Surrounds andEntrances

Open Space – Group Leader January, March, May, July,September, November

Civic Centre – Staff Court Yard and Bin Enclosure Sweep, hose out and general tidy up Open Space – Group Leader January, April, August, November

Beach Access Steps & Ramps Check and clear sand build up.Replenish sand at base of steps andramps for safe descent ontobeaches

Open Space – Group Leader January, March, May, July,September, November, December

Soldiers Memorial Gardens (SMG), SoldiersMemorial Reserve (SMR) and Kent Reserve

Check and Undertake Maintenanceprior to Holiday Season

Open Space – Group Leader December/ January, March / April,September/October

ANZAC Day & Remembrance Day - SoldiersMemorial Gardens (SMR) Regards RSL SpecialEventsANZAC Day - 25 AprilRemembrance Day – 11 November

Ensure general area, garden beds,lawns, sprinklers turned off inreadiness for ANZAC Day &Remembrance Day

Open Space – Group Leader April, November

Ocean Street – Pedestrian Pathways Clean Ocean Street both pedestriansidewalks / pathways from TorrensSt to Albert Place

Open Space – Group Leader Every Monday and Friday,If Monday is a Public Holiday cleanfalls on the Tuesday

Cigarette Butt Bin Containers Empty All(Locality map issued)

Open Space – Group Leader December, August, February

Jagger Dam Check and Clean Outlet Pipe Construction and Maintenance -Group Leader

April, June, August

Causeway Plaza Area Sand and Re-stain all Timber BenchSeats and Tables

Open Space – Group Leader November, March (before Easter)

Causeway Plaza (General Area) Check and Clean Paved Area –Wash off Stained Areas. Removedebris/loose rubbish in & around BinEnclosures

Open Space – Group Leader November, December, January,February, March, July

Playgrounds Check and Playgrounds forRequired Maintenance and toensure they meet standards

Open Space – Group Leader Main – WeeklySmaller – Fortnightly

Road Grading - Unsealed Roads Monitor and Assess Unsealed Roadbefore Grading


Subject to ‘Need’ and ‘Weather,’generally undertaken during thewetter months. Road sections canbe undertaken along worst roadparts.


Potholing – Sealed Roads – Urban and Rural Roads Monitor and Assess Sealed RoadNetwork, Undertake PotholingRepair Works As Needed


Subject to Weather, typicallypotholes develop during the wettermonths.

Lighting - Councils Owned Lights, includes OceanStreet, Governor Gardens (see locality map)

Check and repair non-working lights Construction and Maintenance -Group Leader

January, April, July, October

Solar Lighting – Causeway Car Park PedestrianPathway (Causeway Car Park) Boardwalk (VIC toCauseway Plaza), Esplanade / Franklin ParadeShared Pathway. Swains Crossing/Pages RdIntersection

Check, repair non-working solarlights, wash solar panels to ensureeffectiveness


December, March, June, September

Timed Feature Lighting – Causeway Plaza andSoldiers Memorial Gardens (SMG), RSL Monument

Check to ensure Feature Lighting isOperating Effectively


October - Lighting Timer Start Time:8.30pm Finish: 2am.March - Lighting Timer Start Time:7pm Finish: 1am

Stormwater - Side Entry Pits (SEP) and JunctionBoxes

Check to ensure stormwater arecleaned and working effectively


March, April, May, June

Re-stain Bench Seats, Seats & Tables Sand back and re-stain all BenchSeats, Seats & Tables in parks,reserves and in Ocean Street

Open Space – Group Leader April, November

Encounter Lakes Revetment Inspection Inspect for regrowth, spray andcontrol

Open Space – Group Leader September / October

Bridges – Maintenance Inspect for Blockages ordamage to bridge abutmentsincluding changing waterflows leading up to thebridges

Construction - Group Leader March / SeptemberBefore / After Heavy rains

Stormwater – Trash Racks, Monitor and Clean Inspect and clean out stormwater“Trash Racks” prior to Winter andafter

Construction - Group Leader March / OctoberAfter heavy rains

Boat Channel Markers – Bluff Boat Ramp Visual Inspection of ChannelMarkers location and appearance.Engage Contractor to replacechannel marker posts yearly

Construction - Group Leader October / November


Appendix B Projected 10 yr Capital Renewal and Replacement WorksProgram

Victor Harbor CCProjected Capital Renewal Works Program - Footpaths_S2_V1

($000)Year Item Description Estimate2017 Network Renewals

1 Townhall Walkway - Paving & Stormwater Improvements - Construction $82 Footpaths Asset Register, Mydata - Condition Assessments 4 and 5 $503456789

102017 Defect Repairs

123456789

102017 Total $58

2018 Network Renewals1 Footpaths Asset Register, Mydata - Condition Assessments 4 and 5 $35

2 Bike Strategy Ref# 1.9 - VH Bowling Club - Widen Existing 1.8m path to 3.5m, protectfrom sand drift - (Brian Doman) $60

3 Bike Strategy - Ref# 1.12 - Railway Crossing Hindmarsh River - (Brian Doman) $12456789


1


23456789

102018 Total $107


1 Footpaths Asset Register, Mydata - Condition Assessments 4 and 5 $1523456789


123456789

102019 Total $15

2020 Network Renewals Estimate1 Footpaths Asset Register, Mydata - Condition Assessments 4 and 5 $350234567


89


123456789

102020 Total $350



2 Bike Strategy Ref# 1.5 - Adjacent to Franklin Parade - Bitumen Resurface ExistingPathway & Widen Where Possible to 3.5m - (Brian Doman) $100

3456789


123456789

102021 Total $170



2 Bike Strategy Ref# 1.5 - Adjacent to Franklin Parade - Bitumen Resurface ExistingPathway & Widen Where Possible to 3.5m - (Brian Doman) $100

3456789


123456789

102022 Total $200




12345678


910

2023 Total $100



123456789

102024 Total $170




123


456789

102025 Total $200



123456789

10


Capital Renewal and Replacement Works Program Based on Condition Assessments – Condition 5 Ratings

Asset ID Subcategory Asset Name Description YearAcquired

CRC UpdateUseful

Life

RenewalCost

Condition(1-5)

FP.R023.20.L.Sur Footpath Surface Stan Farquar Reserve L-20-Path intersection to Path intersection 12/30/2005 38,923.54 30.00 38,923.54 5

FP.R023.60.L.Sur Footpath Surface Stan Farquar Reserve L-60-Klienig to Path intersection 2/8/1996 4,043.35 30.00 4,043.35 5


FP.R023.20.L.PavLL Footpath Pavement Stan Farquar Reserve L-20-Path intersection to Path intersection 12/30/2005 12,974.51 90 12,974.51 5

FP.R023.60.L.PavLL Footpath Pavement Stan Farquar Reserve L-60-Klienig to Path intersection 2/8/1996 1,347.78 90 1,347.78 5

FP.R023.70.L.PavLL Footpath Pavement Stan Farquar Reserve L-70-Klienig to Path intersection 2/8/1996 1,143.31 90 1,143.31 5

Capital Renewal and Replacement Works Program Based on Condition Assessments – Condition 4 Ratings

Asset ID Subcategory Asset Name Description YearAcquired

CRC UpdateUseful

Life

RenewalCost

Condition(1-5)

FP.1012.10.R.Sur Footpath Surface Alexander Street R-10-rupara to kindy entrance 2/8/1996 1,958.51 30.00 1,958.51 4

FP.1035.40.R.Sur Footpath Surface Bay Road R-40-Barker to Bay 2/8/1996 850.64 30.00 850.64 4

FP.1072.40.L.Sur Footpath Surface Churchill Road L-40-7 to Crozier 12/30/2005 6,968.16 30.00 6,968.16 4

FP.1108.10.R.Sur Footpath Surface Dennis Place R-10-Hill to 2 7/2/2001 8,933.93 40.00 8,933.93 4

FP.1115.10.R.Sur Footpath Surface Dolphin Avenue R-10-marlin to marlin 6/30/2009 21,752.48 50.00 21,752.48 4

FP.1125.10.R.Sur Footpath Surface Dyson Court R-10-mill rd to no 8 7/2/2000 10,633.27 50.00 10,633.27 4

FP.1200.20.R.Sur Footpath Surface Hinkler Street R-20-Hinkler to Hinkler 12/30/2005 651.97 30.00 651.97 4

FP.1240.20.R.Sur Footpath Surface Kent Drive R-20-1 to Bay 12/30/2005 8,455.01 30.00 8,455.01 4

FP.1277.10.R.Sur Footpath Surface Matthew Flinders Drive R-10-Bartel to carpark 8/5/2009 4,255.67 40.00 4,255.67 4

FP.1356.10.L.Sur Footpath Surface Philip Avenue L-10-Bay to entrance to bay village 12/30/2005 9,429.51 30.00 9,429.51 4

FP.1356.20.L.Sur Footpath Surface Philip Avenue L-20-bay rd to bay village entrance 7/2/2000 18,548.95 50.00 18,548.95 4

FP.1431.10.L.Sur Footpath Surface Stone Hut Circuit L-10-50 to neighbor st 6/30/2009 3,076.80 50.00 3,076.80 4

FP.1449.30.R.Sur Footpath Surface The Parkway R-30-field to sowden 11/23/2009 14,395.54 30.00 14,395.54 4

FP.R002.10.L.Sur Footpath Surface Belmont Reserve L-10-Belmont to Belmont 12/30/2005 6,777.70 30.00 6,777.70 4


FP.R009.10.L.Sur Footpath Surface Encounter Wetlands L-10-Matthew Flinders to Victor 12/30/2005 54,263.15 30.00 54,263.15 4

FP.R009.20.L.Sur Footpath Surface Encounter Wetlands L-20-Victor to Matthew Flinders 12/30/2005 17,204.79 30.00 17,204.79 4

FP.R023.10.L.Sur Footpath Surface Stan Farquar Reserve L-10-Klienig to path intersection 2/8/1996 2,009.60 30.00 2,009.60 4

FP.R023.30.L.Sur Footpath Surface Stan Farquar Reserve L-30-Path intersection to Path intersection 4/24/1985 1,030.68 30.00 1,030.68 4


FP.R023.50.L.Sur Footpath Surface Stan Farquar Reserve L-50-Strawberry hill to Path intersection 2/8/1996 498.02 30.00 498.02 4

FP.R026.10.L.Sur Footpath Surface Victor Harbor Oval L-10-Barker toilets to start of bmx track 2/8/1996 21,329.71 30.00 21,329.71 4

FP.R026.20.L.Sur Footpath Surface Victor Harbor Oval L-20-Reserve to entrance 12/30/2005 4,983.34 30.00 4,983.34 4

FP.T008.10.R.Sur Footpath Surface Torrens Street R-10-Victoria to Torrens Lane 7/7/1983 13,344.05 40.00 13,344.05 4

FP.1012.10.R.PavLL Footpath Pavement Alexander Street R-10-rupara to kindy entrance 2/8/1996 652.84 90 652.84 4

FP.1035.40.R.PavLL Footpath Pavement Bay Road R-40-Barker to Bay 2/8/1996 283.55 90 283.55 4

FP.1072.40.L.PavLL Footpath Pavement Churchill Road L-40-7 to Crozier 12/30/2005 2,322.72 90 2,322.72 4

FP.1108.10.R.PavLL Footpath Pavement Dennis Place R-10-Hill to 2 7/2/2001 2,977.98 120 2,977.98 4

FP.1115.10.R.PavLL Footpath Pavement Dolphin Avenue R-10-marlin to marlin 6/30/2009 7,250.83 150 7,250.83 4

FP.1125.10.R.PavLL Footpath Pavement Dyson Court R-10-mill rd to no 8 7/2/2000 3,544.42 150 3,544.42 4

FP.1200.20.R.PavLL Footpath Pavement Hinkler Street R-20-Hinkler to Hinkler 12/30/2005 217.32 90 217.32 4

FP.1240.20.R.PavLL Footpath Pavement Kent Drive R-20-1 to Bay 12/30/2005 2,818.34 90 2,818.34 4

FP.1277.10.R.PavLL Footpath Pavement Matthew Flinders Drive R-10-Bartel to carpark 8/5/2009 1,418.56 120 1,418.56 4

FP.1356.10.L.PavLL Footpath Pavement Philip Avenue L-10-Bay to entrance to bay village 12/30/2005 3,143.17 90 3,143.17 4

FP.1356.20.L.PavLL Footpath Pavement Philip Avenue L-20-bay rd to bay village entrance 7/2/2000 6,182.98 150 6,182.98 4

FP.1431.10.L.PavLL Footpath Pavement Stone Hut Circuit L-10-50 to neighbor st 6/30/2009 1,025.60 150 1,025.60 4

FP.1449.30.R.PavLL Footpath Pavement The Parkway R-30-field to sowden 11/23/2009 4,798.51 90 4,798.51 4

FP.R002.10.L.PavLL Footpath Pavement Belmont Reserve L-10-Belmont to Belmont 12/30/2005 2,259.23 90 2,259.23 4

FP.R009.10.L.PavLL Footpath Pavement Encounter Wetlands L-10-Matthew Flinders to Victor 12/30/2005 18,087.72 90 18,087.72 4

FP.R009.20.L.PavLL Footpath Pavement Encounter Wetlands L-20-Victor to Matthew Flinders 12/30/2005 5,734.93 90 5,734.93 4

FP.R023.10.L.PavLL Footpath Pavement Stan Farquar Reserve L-10-Klienig to path intersection 2/8/1996 669.87 90 669.87 4

FP.R023.30.L.PavLL Footpath Pavement Stan Farquar Reserve L-30-Path intersection to Path intersection 4/24/1985 343.56 90 343.56 4

FP.R023.40.L.PavLL Footpath Pavement Stan Farquar Reserve L-40-Klienig to Path intersection 2/8/1996 601.94 90 601.94 4

FP.R023.50.L.PavLL Footpath Pavement Stan Farquar Reserve L-50-Strawberry hill to Path intersection 2/8/1996 166.01 90 166.01 4

FP.R026.10.L.PavLL Footpath Pavement Victor Harbor Oval L-10-Barker toilets to start of bmx track 2/8/1996 7,109.90 90 7,109.90 4

FP.R026.20.L.PavLL Footpath Pavement Victor Harbor Oval L-20-Reserve to entrance 12/30/2005 1,661.11 90 1,661.11 4

FP.T008.10.R.PavLL Footpath Pavement Torrens Street R-10-Victoria to Torrens Lane 7/7/1983 4,448.02 120 4,448.02 4

PR.1097.640.Sur Pram Ramp Crozier Road --Pram Ramp 7/2/2000 967.95 50 967.95 4

PR.1153.20.Sur Pram Ramp Franklin Parade --Pram Ramp 6/30/2009 967.95 50 967.95 4


PR.1295.266.Sur Pram Ramp Minke Whale Drive --Pram Ramp 1/9/1968 967.95 50 967.95 4

PR.1449.473.Sur Pram Ramp The Parkway --Pram Ramp 7/7/1980 967.95 50 967.95 4

PR.R002.84.Sur Pram Ramp Belmont Reserve --Pram Ramp 1/9/1968 967.95 50 967.95 4

PR.1088.876.Sur Pram Ramp Coral Street --Pram Ramp 6/1/2014 967.95 50 967.95 4

PR.1097.640.PavLL Pram Ramp Crozier Road --Pram Ramp 7/2/2000 322.65 150 322.65 4

PR.1153.20.PavLL Pram Ramp Franklin Parade --Pram Ramp 6/30/2009 322.65 150 322.65 4

PR.1295.266.PavLL Pram Ramp Minke Whale Drive --Pram Ramp 1/9/1968 322.65 150 322.65 4

PR.1449.473.PavLL Pram Ramp The Parkway --Pram Ramp 7/7/1980 322.65 150 322.65 4

PR.R002.84.PavLL Pram Ramp Belmont Reserve --Pram Ramp 1/9/1968 322.65 150 322.65 4

PR.1088.876.PavLL Pram Ramp Coral Street --Pram Ramp 6/1/2014 322.65 150 322.65 4


Appendix C Projected Upgrade/Exp/New 10 year Capital Works Program

Victor Harbor CCProjected Capital Upgrade/New Works Program - Footpaths_S2_V1

($000)Year Item Description Estimate2017 1 C/F-VIC Centre to Causeway (REPLAS Con) & Townhall Walkway / Drainage $57

2 Mentone Rd - from Port Elliot Rd to Sutherland Ave (length about 160m) $173 Mentone Rd - from Sutherland Ave to Ocean Rd (length about 1,055m) $1114 Sinclair Street - from McDonald Street to Mentone Road (length about 140m) $155 Sutherland Ave - Mentone Road to Ocean Road (length about 940m) $1006 First Ave - from Port Elliot Road to Oliver’s Parade (length about 260m) $277 Alexander Street - from dead end to Rupara Ave (length about 90m) $10

8Bike Strategy Ref# 1.7b - Causeway to Boat Ramp - Block Paving 90mx2.5m = 225m2(Brian Doman) $20

9 Harborview Tce - from Bay Road to Malen Ave (length about 150m) $1710 Malen Ave - from Harbourview Tce to Kent Drive (length about 90m) $7

2017 Total $381

($000)Year Item Description Estimate2018 1 Cudmore Road - from Tom Thumb Grove to Hindmarsh Road (length about 295m) $33

2 Adara Ave - from Dinan Road to Hindmarsh Road (length about 385m) $413 Wattle Drive - from Pearsons Drive to Dinan Road (length about 190m) $204 Dinan Rd - full length through dead end to Laxton Street (length about 185m) $205 Laxton Street - from Coleman St to Dinan Road (length about 100m) $116 Promenade - Adjacent to Bowling Club $307 Bike Strategy Ref# 5.12 - Armstrong at Ewen Tce - Median Refuge (Brian Doman) $108 Bike Strategy Ref# 6.3 - Mill Rd - New 2.5m Wide Path (Brian Doman) $20

9Bike Strategy Ref# 6.4 - Bay Rd - New 2m Crushed Rubble Path Western End toWaitpinga Rd (Brian Doman) $6

10 Kingsford Smith Street - Oval Rd to Granite St (length about 160m) $152018 Total $206

($000)Year Item Description Estimate2019 1 Bond Ave - Full Length (length about 250m) $27

2 Pine Ave - footpath north of Field Ave to Hindmarsh Rd (length about 560m) $603 Renown Ave - footpath north of Field Ave to Hindmarsh Rd (length about 570m) $614 Brand Ave - from Renown Ave to Pine Ave (length about 100m) $115 Broadway - full length (length about 102m) $116 High Street - full length (length about 112m) $127 Riverview Rd - full length (length about 310m) $33


8

Peace Ave - High Street to Carlyle Street (length about 55m) $6kBike Strategy Ref# 6.7 - Menton Rd, (Ocean Rd to Goolwa Port Elliot Rd) 2.5m wideshared pathway, northern side $240k $246

9Bike Strategy Ref# 1.11 - Yacht Club To Hindmarsh River - 3.5m Wide Path, Seawardof Bridge Tce - (Brian Doman) $90

10Bike Strategy Ref# 7.1 - Bluff Jetty Rd - Crushed Stone Path Transferable by Bikesfrom the end of Bikeway to the Bikeway to the Bluff Ring Rd (Brian Doman) $40

2019 Total $591

($000)Year Item Description Estimate2020 1 Bridge Tce - near Cornhill Rd to Bridge Court (length about 565m) $60

2 Bridge Tce - Bridge Court to Hindmarsh Road Railway Bridge (length about 220m) $233 Caterbury Road - from Jenkins Ave to Norfolk Ave (length about 1,455m) $1554 Bike Strategy Ref# 2.5 - Bay Road - Permanent Bike Lanes - (Brian Doman) $78

5Bike Strategy Ref# 6.5 - Waterport Rd, Strawberry Hill Rd to Ocean Rd - 2.5m WideShared Use Pathway on Southern Side - (Brian Doman) $156

6789

102020 Total $472

($000)Year Item Description Estimate2021 1 Harvey Ave - full length to existing footpath at dead end (length about 144m) $15

2 Swain Road - full length (length about 300m) $323 Kullaroo Road / Oval Park Tce - full length (length about 462m) $504 Kent Drive - fill in footpath gap, south of Bay Rd (length about 55m) $75 Broderick Tce - from George Main Rd to Phillip Ave (length about 285m) $316 Phillip Ave - from Broderick Tce to Bay Village Entrance (length about 145m) $17

7Bike Strategy Ref# 1.5 - Adjacent to Franklin Parade - Bitumen Resurface ExistingPathway & Widen Where Possible to 3.5m - (Brian Doman) $220

8Bike Strategy Ref# 5.13 - Adelaide Rd, North of Strawberry Hill Rd - Medium Refuge &Shift 60kph Sign North of this - (Brian Doman) $50

910

2021 Total $422

($000)Year Item Description Estimate2022 1 Maude Street - from Inman Valley Rd to past Enterprise Ave (length about 425m) $46

2 Bacchus Rd - track from Bacchus Road to Inman Valley Rd (length about 140m) $153 Prime Boulevard - from North of Wishart Crescent to Rymill Ave (length about 400m) $654 Poltong Crescent - from Mill Rd to End (length about 410m) $44


5Bike Strategy Ref# 1.5 - Adjacent to Franklin Parade - Bitumen Resurface ExistingPathway & Widen Where Possible to 3.5m - (Brian Doman) $260

6Bike Strategy Ref# 5.14 - Crozier Rd at Lindsay - Place Median Refuge - (BrianDoman) $20

7Bike Strategy Ref# 5.15 - Seaview Rd at Carlyle - Place Median Refuge - (BrianDoman) $20

89

102022 Total $470

($000)Year Item Description Estimate2023 1 Mill Rd - from Tabernacle Rd to short of Poltong Crescent (length about 600m) $65

2 Bay Road - from Tabernacle Rd to past Crosby Court (length about 390m) $423 Charles Street - from Ainsile Roberts Drive to Franklin Parade (length about 155m) $174 Nicolaus Baudin Drive - from Tabernacle Rd to Bartel Boulevard (length about 805m) $200

5Bike Strategy Ref# 1.7 - Willis St to Causeway - 3.5m Shared Pathway, Adjacent toFence - (Brian Doman) $144

6Bike Strategy Ref# 3.7 - Kullaroo Rd, Adjacent to High School - 3m Wide SharedPathway - (Brian Doman) $6

789

102023 Total $474

($000)Year Item Description Estimate2024 1 Tabernacle Rd - north of Cutter Circuit to Matthew Flinders Drive (length about 175m) $20

2 Tabernacle Rd - from Bay Rd to Mill Rd (length about 125m) $14

3Tabernacle Rd - from Bay Rd to Ena Reid Reserve (Kingfisher Court) (length about180m) $20

4 Wood Street - from Encounter Tce to Franklin Parade (length about 115m) $13

5Bike Strategy Ref# 3.2.1 - Kent Reserve - Provide 3.5m Wide Shared Pathway - (BrianDoman) $66

6789

102024 Total $133

($000)Year Item Description Estimate2025 1 Ridgeway St - from Russell St to Franklin Parade (length about 235m) $26


2 Whalers Rd - from Mollien Ave to Franklin Parade (length about 555m) $603 Giles St - from Fell St to Tabernacle Rd (length about 390m) $424 Petrel Ave - from Whalers Rd to Fell St (length about 345m) $405 Franklin Parade - from Jagger Rd into Whalers Inn Car Park (length about 75m) $106 Jagger Rd - from Investigator Crescent to Franklin Parade (length about 170m) $207 Bike Strategy - To be Determined - (Brian Doman) $6089

102025 Total $258

($000)Year Item Description Estimate2026 1 Bike Strategy - TBA $100

23456789

102026 Total $100


Appendix D Budgeted Expenditures Accommodated in LTFP

Victor Harbor CC - Report 7 - LTFP Expenditure Projections (Footpaths_S2_V1)

Projected Expenditure 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Capital Expenditure onRenewal/Replacement of existing assets

$58.00 $107.00 $15.00 $350.00 $170.00 $200.00 $100.00 $170.00 $200.00 $200.00

Capital Expenditure on Upgrade/New assets $381.00 $206.00 $591.00 $472.00 $422.00 $470.00 $474.00 $133.00 $258.00 $100.00Operational cost of existing assets $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00Maintenance cost of existing assets $85.00 $85.00 $85.00 $85.00 $85.00 $85.00 $85.00 $85.00 $85.00 $85.00Operational cost of New assets $0.00 $0.38 $0.59 $1.18 $1.65 $2.08 $2.55 $3.02 $3.16 $3.41Maintenance cost of New assets $0.00 $3.25 $5.00 $10.04 $14.06 $17.65 $21.66 $25.70 $26.83 $29.03Disposal of Surplus Assets $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

All dollar values in ($'000)'s


Appendix E Gifted Assets 2010-2016

Footpaths - Gifted Assets as of 30th June, 2011 to 30th June, 2016

Asset ID Asset Name Segment/Group Name Asset Type Surface Type Total Replacement Value ($) Date of Recognition

FP.1537.10.R Aquamarine Boulevard R-10-Ocean Road to Cobalt Drive Pedestrian Pathway Exposed Aggregate 21,153.36 4/5/2011

FP.1541.10.L Emerald Drive L-10-Change of Seal to Aquamarine Boulevard Pedestrian Pathway Exposed Aggregate 6,154.43 4/5/2011

FP.1541.10.R Emerald Drive R-10-Aquamarine Boulevard to end Pedestrian Pathway Exposed Aggregate 21,330.51 4/5/2011

FP.1540.10.L Indigo Way L-10-Mint Drive to Emerald Drive Pedestrian Pathway Exposed Aggregate 16,064.26 4/5/2011

FP.1539.20.R Mint Drive R-20-Indigo Way to end Pedestrian Pathway Exposed Aggregate 5,437.62 4/5/2011

FP.1537.20.R Aquamarine Boulevard R-20-Colbalt Drive to Emerald Drive Pedestrian Pathway Exposed Aggregate 46,817.07 4/5/2011

FP.1542.10.L Cobalt Drive L-10-Aquamarine Boulevard to end Pedestrian Pathway Exposed Aggregate 2,526.93 4/5/2011

FP.1542.10.R Cobalt Drive R-10-Aquamarine Boulevard to end Pedestrian Pathway Exposed Aggregate 8,205.90 4/5/2011

FP.1539.10.L Mint Drive L-10-Aquamarine Boulevard to Indigo Way intersection Pedestrian Pathway Exposed Aggregate 18,036.09 4/5/2011

FP.1538.10.R Royal Court R-10-Aquamarine Boulevard to end Pedestrian Pathway Exposed Aggregate 8,592.06 4/5/2011

PR.1537.766 Aquamarine Boulevard --Pram Ramp Pram Ramp Concrete 1,290.60 4/5/2011




PR.1542.769 Cobalt Drive --Pram Ramp Pram Ramp Concrete 1,290.60 4/5/2011


PR.1538.774 Royal Court --Pram Ramp Pram Ramp Concrete 1,290.60 4/5/2011

PR.1538.773 Royal Court --Pram Ramp Pram Ramp Concrete 1,290.60 4/5/2011



PR.1539.776 Mint Drive --Pram Ramp Pram Ramp Concrete 1,290.60 4/5/2011




PR.1540.781 Indigo Way --Pram Ramp Pram Ramp Concrete 1,290.60 4/5/2011





PR.1541.786 Emerald Drive --Pram Ramp Pram Ramp Concrete 1,290.60 4/5/2011








187,873.82 As of 30/06/2011

FP.1547.10.L Strathmore Court L-10-Harbour View Terrace to End Pedestrian Pathway Concrete 23,856.35 1/27/2012

FP.1180.20.L Harbour View Terrace L-20-Harbour View Terrace entrance into Strathmore Court Pedestrian Pathway Concrete 1,848.65 1/27/2012

PR.1547.811 Strathmore Court --Pram Ramp Pram Ramp Concrete 1,290.60 1/27/2012

PR.1547.812 Strathmore Court --Pram Ramp Pram Ramp Concrete 1,290.60 1/27/2012



PR.1543.805 Sapphire Way --Pram Ramp Pram Ramp Concrete 1,290.60 6/1/2012

PR.1543.806 Sapphire Way --Pram Ramp Pram Ramp Concrete 1,290.60 6/1/2012





FP.1541.05.L Emerald Drive L-05-Cobalt Drive to 13 Emerald Drive Pedestrian Pathway Exposed Aggregate 35,804.27 6/1/2012

FP.1515.20.L Central Drive L-20-Causeway to Driveway Access End Pedestrian Pathway Concrete 23,202.64 6/6/2012

FP.1515.20.R Central Drive R-20-Causeway to Driveway Access End Pedestrian Pathway Exposed Aggregate 24,274.98 6/6/2012

PR.1515.813 Central Drive --Pram Ramp Pram Ramp Concrete 1,290.60 6/6/2012

PR.1515.814 Central Drive --Pram Ramp Pram Ramp Concrete 1,290.60 6/6/2012

PR.1546.795 Jones Way --Pram Ramp Pram Ramp Concrete 1,290.60 11/21/2012


PR.1546.796 Jones Way --Pram Ramp Pram Ramp Concrete 1,290.60 11/21/2012

PR.1502.797 Wishart Crescent --Pram Ramp Pram Ramp Concrete 1,290.60 11/21/2012






134,798.89 As of 30/06/2012

As of 30/06/2013

PR.1549.895 Nation Court --Pram Ramp Pram Ramp Concrete 1,290.60 6/30/2014

PR.1549.896 Nation Court --Pram Ramp Pram Ramp Concrete 1,290.60 6/30/2014

2,581.20 As of 30/06/2014

PR.1552.914 Murray Street --Pram Ramp Pram Ramp Concrete 1,290.60 5/1/2015

PR.1552.915 Murray Street --Pram Ramp Pram Ramp Concrete 1,290.60 5/1/2015

PR.1553.916 Cameron Court --Pram Ramp Pram Ramp Concrete 1,290.60 5/1/2015

PR.1553.917 Cameron Court --Pram Ramp Pram Ramp Concrete 1,290.60 5/1/2015

PR.154.918 Shields Crescent --Pram Ramp Pram Ramp Concrete 1,290.60 5/1/2015

PR.1554.919 Shields Crescent --Pram Ramp Pram Ramp Concrete 1,290.60 5/1/2015

FP.1550.10.L Kleinig Drive R-10-Cobalt Drive to End Pedestrian Pathway Exposed Aggregate 4,039.47 5/15/2015

FP.1542.20.R Cobalt Drive R-20-3 Cobalt Drive to Kleinig Drive Pedestrian Pathway Exposed Aggregate 9,601.39 5/15/2015

FP.1542.30.R Cobalt Drive R-30-Kleinig Drive to 16 Cobalt Drive Pedestrian Pathway Exposed Aggregate 27,802.07 5/15/2015

FP.1551.10.R Jade Court R-10-Cobalt Drive to End Pedestrian Pathway Exposed Aggregate 32,861.01 5/15/2015

PR.1542.906 Cobalt Drive --Pram Ramp Pram Ramp Exposed Aggregate 1,290.60 5/15/2015


PR.1550.908 Kleinig Drive --Pram Ramp Pram Ramp Exposed Aggregate 1,290.60 5/15/2015

PR.1550.909 Kleinig Drive --Pram Ramp Pram Ramp Exposed Aggregate 1,290.60 5/15/2015


PR.1551.910 Jade Court --Pram Ramp Pram Ramp Exposed Aggregate 1,290.60 5/15/2015

PR.1551.911 Jade Court --Pram Ramp Pram Ramp Exposed Aggregate 1,290.60 5/15/2015



FP.1443.10.R Tabernacle Road R-10-Opposite 81 Tabernacle Rd to Kookaburra Blvd Pedestrian Pathway Exposed Aggregate 36,034.52 5/18/2015

FP.1443.20.R Tabernacle Road R-20-Kookaburra Blvd to 11 Kingfisher Pedestrian Pathway Exposed Aggregate 41,986.69 5/18/2015

FP.1555.10.R Kookaburra Boulevard R-10-Tabernacle Road to Roundabout Pedestrian Pathway Exposed Aggregate 7,718.37 5/18/2015

FP.1555.10.L Kookaburra Boulevard L-10- Tabernacle Rd to Roundabout Pedestrian Pathway Exposed Aggregate 7,720.06 5/18/2015

FP.1555.20.R Kookaburra Boulevard R-20-Roundabout to Temporary End Pedestrian Pathway Exposed Aggregate 10,502.35 5/18/2015

FP.1555.60.L Kookaburra Boulevard R-60-Roundabout to 93 Kookaburra Pedestrian Pathway Exposed Aggregate 18,525.78 5/18/2015

FP.1555.70.R Kookaburra Boulevard R-70-Kingfisher to Temporary End Pedestrian Pathway Exposed Aggregate 5,078.00 5/18/2015

FP.1556.10.R Kingfisher Crescent R-10-Kookaburra Blvd to Temporary End Pedestrian Pathway Exposed Aggregate 24,040.87 5/18/2015

FP.1556.15.R Kingfisher Crescent R-15-Kingfisher Access Road Pedestrian Pathway Exposed Aggregate 7,192.95 5/18/2015

FP.1557.10.R Rosella Street R-10-Kookaburra Blvd to Temporary End Pedestrian Pathway Exposed Aggregate 24,973.45 5/18/2015

FP.1557.20.R Rosella Street R-20-Rosella Access Road to Temporary End Pedestrian Pathway Exposed Aggregate 19,634.06 5/18/2015

PR.1555.920 Kookaburra Boulevard --Pram Ramp Pram Ramp Concrete 1,290.60 5/18/2015










PR.1556.930 Kingfisher Crescent --Pram Ramp Pram Ramp Concrete 1,290.60 5/18/2015

PR.1556.931 Kingfisher Crescent --Pram Ramp Pram Ramp Concrete 1,290.60 5/18/2015

PR.1557.932 Rosella Street --Pram Ramp Pram Ramp Concrete 1,290.60 5/18/2015





316,429.07 As of 30/06/2015

$641,682.97725 Total


Appendix F Aerial Plans - Existing Footpath Network and 10 Year New Works Program


Appendix G Abbreviations

AAAC Average annual asset consumption

AM Asset management

AM Plan Asset management plan

ARI Average recurrence interval

ASC Annual service cost

BOD Biochemical (biological) oxygen demand

CRC Current replacement cost

CWMS Community wastewater management systems

DA Depreciable amount

DRC Depreciated replacement cost

EF Earthworks/formation

IRMP Infrastructure risk management plan

LCC Life Cycle cost

LCE Life cycle expenditure

LTFP Long term financial plan

MMS Maintenance management system

PCI Pavement condition index

RV Residual value

SoA State of the Assets

SS Suspended solids

vph Vehicles per hour

WDCRD Written down current replacement cost


Appendix H Glossary

Annual service cost (ASC)1) Reporting actual cost

The annual (accrual) cost of providing aservice including operations, maintenance,depreciation, finance/opportunity anddisposal costs less revenue.

2) For investment analysis and budgetingAn estimate of the cost that would be

tendered, per annum, if tenders were calledfor the supply of a service to a performancespecification for a fixed term. The AnnualService Cost includes operations,maintenance, depreciation,finance/opportunity and disposal costs, lessrevenue.

AssetA resource controlled by an entity as a result ofpast events and from which future economicbenefits are expected to flow to the entity.Infrastructure assets are a sub-class of property,plant and equipment which are non-current assetswith a life greater than 12 months and enableservices to be provided.

Asset categorySub-group of assets within a class hierarchy forfinancial reporting and management purposes.

Asset classA group of assets having a similar nature orfunction in the operations of an entity, and which,for purposes of disclosure, is shown as a singleitem without supplementary disclosure.

Asset condition assessmentThe process of continuous or periodic inspection,assessment, measurement and interpretation ofthe resultant data to indicate the condition of aspecific asset so as to determine the need forsome preventative or remedial action.

Asset hierarchyA framework for segmenting an asset base intoappropriate classifications. The asset hierarchycan be based on asset function or asset type or acombination of the two.

Asset management (AM)The combination of management, financial,economic, engineering and other practicesapplied to physical assets with the objective ofproviding the required level of service in the mostcost effective manner.

Asset renewal funding ratioThe ratio of the net present value of asset renewalfunding accommodated over a 10 year period in along term financial plan relative to the net presentvalue of projected capital renewal expendituresidentified in an asset management plan for thesame period [AIFMG Financial SustainabilityIndicator No 8].

Average annual asset consumption (AAAC)*The amount of an organisation’s asset baseconsumed during a reporting period (generally ayear). This may be calculated by dividing thedepreciable amount by the useful life (or totalfuture economic benefits/service potential) andtotalled for each and every asset OR by dividingthe carrying amount (depreciated replacementcost) by the remaining useful life (or remainingfuture economic benefits/service potential) andtotalled for each and every asset in an assetcategory or class.

BorrowingsA borrowing or loan is a contractual obligation ofthe borrowing entity to deliver cash or anotherfinancial asset to the lending entity over aspecified period of time or at a specified point intime, to cover both the initial capital provided andthe cost of the interest incurred for providing thiscapital. A borrowing or loan provides the meansfor the borrowing entity to finance outlays (typicallyphysical assets) when it has insufficient funds ofits own to do so, and for the lending entity to makea financial return, normally in the form of interestrevenue, on the funding provided.

Capital expenditureRelatively large (material) expenditure, which hasbenefits, expected to last for more than 12months. Capital expenditure includes renewal,expansion and upgrade. Where capital projectsinvolve a combination of renewal, expansionand/or upgrade expenditures, the total project costneeds to be allocated accordingly.

Capital expenditure - expansionExpenditure that extends the capacity of anexisting asset to provide benefits, at the samestandard as is currently enjoyed by existingbeneficiaries, to a new group of users. It isdiscretionary expenditure, which increases futureoperations and maintenance costs, because itincreases the organisation’s asset base, but maybe associated with additional revenue from thenew user group, eg. extending a drainage or roadnetwork, the provision of an oval or park in a newsuburb for new residents.


Capital expenditure - newExpenditure which creates a new asset providinga new service/output that did not exist beforehand.As it increases service potential it may impactrevenue and will increase future operations andmaintenance expenditure.

Capital expenditure - renewalExpenditure on an existing asset or on replacingan existing asset, which returns the servicecapability of the asset up to that which it hadoriginally. It is periodically required expenditure,relatively large (material) in value compared withthe value of the components or sub-componentsof the asset being renewed. As it reinstatesexisting service potential, it generally has noimpact on revenue, but may reduce futureoperations and maintenance expenditure ifcompleted at the optimum time, eg. resurfacing orresheeting a material part of a road network,replacing a material section of a drainage networkwith pipes of the same capacity, resurfacing anoval.

Capital expenditure - upgradeExpenditure, which enhances an existing asset toprovide a higher level of service or expenditurethat will increase the life of the asset beyond thatwhich it had originally. Upgrade expenditure isdiscretionary and often does not result inadditional revenue unless direct user chargesapply. It will increase operations and maintenanceexpenditure in the future because of the increasein the organisation’s asset base, eg. widening thesealed area of an existing road, replacingdrainage pipes with pipes of a greater capacity,enlarging a grandstand at a sporting facility.

Capital fundingFunding to pay for capital expenditure.

Capital grantsMonies received generally tied to the specificprojects for which they are granted, which areoften upgrade and/or expansion or newinvestment proposals.

Capital investment expenditureSee capital expenditure definition.

Capitalisation thresholdThe value of expenditure on non-current assetsabove which the expenditure is recognised ascapital expenditure and below which theexpenditure is charged as an expense in the yearof acquisition.

Carrying amount

The amount at which an asset is recognised afterdeducting any accumulated depreciation /amortisation and accumulated impairment lossesthereon.

Class of assetsSee asset class definition.

ComponentSpecific parts of an asset having independentphysical or functional identity and having specificattributes such as different life expectancy,maintenance regimes, risk or criticality.

Core asset managementAsset management which relies primarily on theuse of an asset register, maintenancemanagement systems, job resourcemanagement, inventory control, conditionassessment, simple risk assessment and definedlevels of service, in order to establish alternativetreatment options and long-term cashflowpredictions. Priorities are usually established onthe basis of financial return gained by carrying outthe work (rather than detailed risk analysis andoptimised decision- making).

Cost of an assetThe amount of cash or cash equivalents paid orthe fair value of the consideration given to acquirean asset at the time of its acquisition orconstruction, including any costs necessary toplace the asset into service. This includes one-offdesign and project management costs.

Critical assetsAssets for which the financial, business or servicelevel consequences of failure are sufficientlysevere to justify proactive inspection andrehabilitation. Critical assets have a lowerthreshold for action than noncritical assets.

Current replacement cost (CRC)The cost the entity would incur to acquire the asseton the reporting date. The cost is measured byreference to the lowest cost at which the grossfuture economic benefits could be obtained in thenormal course of business or the minimum itwould cost, to replace the existing asset with atechnologically modern equivalent new asset (nota second hand one) with the same economicbenefits (gross service potential) allowing for anydifferences in the quantity and quality of outputand in operating costs.

Deferred maintenanceThe shortfall in rehabilitation work undertakenrelative to that required to maintain the servicepotential of an asset.


Depreciable amountThe cost of an asset, or other amount substitutedfor its cost, less its residual value.

Depreciated replacement cost (DRC)The current replacement cost (CRC) of an assetless, where applicable, accumulated depreciationcalculated on the basis of such cost to reflect thealready consumed or expired future economicbenefits of the asset.

Depreciation / amortisationThe systematic allocation of the depreciableamount (service potential) of an asset over itsuseful life.

Economic lifeSee useful life definition.

ExpenditureThe spending of money on goods and services.Expenditure includes recurrent and capitaloutlays.

ExpensesDecreases in economic benefits during theaccounting period in the form of outflows ordepletions of assets or increases in liabilities thatresult in decreases in equity, other than thoserelating to distributions to equity participants.

Fair valueThe amount for which an asset could beexchanged, or a liability settled, betweenknowledgeable, willing parties, in an arms lengthtransaction.

Financing gapA financing gap exists whenever an entity hasinsufficient capacity to finance asset renewal andother expenditure necessary to be able toappropriately maintain the range and level ofservices its existing asset stock was originallydesigned and intended to deliver. The servicecapability of the existing asset stock should bedetermined assuming no additional operatingrevenue, productivity improvements, or netfinancial liabilities above levels currently plannedor projected. A current financing gap meansservice levels have already or are currently falling.A projected financing gap if not addressed willresult in a future diminution of existing servicelevels.

Heritage assetAn asset with historic, artistic, scientific,technological, geographical or environmentalqualities that is held and maintained principally forits contribution to knowledge and culture and this

purpose is central to the objectives of the entityholding it.

Impairment LossThe amount by which the carrying amount of anasset exceeds its recoverable amount.

Infrastructure assetsPhysical assets that contribute to meeting theneeds of organisations or the need for access tomajor economic and social facilities and services,eg. roads, drainage, footpaths and cycleways.These are typically large, interconnected networksor portfolios of composite assets. Thecomponents of these assets may be separatelymaintained, renewed or replaced individually sothat the required level and standard of servicefrom the network of assets is continuouslysustained. Generally the components and hencethe assets have long lives. They are fixed in placeand are often have no separate market value.

Investment propertyProperty held to earn rentals or for capitalappreciation 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.

Key performance indicatorA qualitative or quantitative measure of a serviceor activity used to compare actual performanceagainst a standard or other target. Performanceindicators commonly relate to statutory limits,safety, responsiveness, cost, comfort, assetperformance, reliability, efficiency, environmentalprotection and customer satisfaction.

Level of service

The defined service quality for a particularservice/activity against which service performancemay be measured. Service levels usually relate toquality, quantity, reliability, responsiveness,environmental impact, acceptability and cost.


Life Cycle Cost *1. Total LCC The total cost of an asset

throughout its life including planning, design,construction, acquisition, operation,maintenance, rehabilitation and disposalcosts.

2. Average LCC The life cycle cost (LCC) isaverage cost to provide the service over thelongest asset life cycle. It comprises averageoperations, maintenance expenditure plusasset consumption expense, represented bydepreciation expense projected over 10years. The Life Cycle Cost does not indicatethe funds required to provide the service in aparticular year.

Life Cycle ExpenditureThe Life Cycle Expenditure (LCE) is the averageoperations, maintenance and capital renewalexpenditure accommodated in the long termfinancial plan over 10 years. Life CycleExpenditure may be compared to average LifeCycle Cost to give an initial indicator ofaffordability of projected service levels whenconsidered with asset age profiles.

Loans / borrowingsSee borrowings.

MaintenanceAll actions necessary for retaining an asset asnear as practicable to an appropriate servicecondition, including regular ongoing day-to-daywork necessary to keep assets operating, egroad patching but excluding rehabilitation orrenewal. It is operating expenditure required toensure that the asset reaches its expected usefullife.• Planned maintenance

Repair work that is identified and managedthrough a maintenance management system(MMS). MMS activities include inspection,assessing the condition againstfailure/breakdown criteria/experience,prioritising scheduling, actioning the workand reporting what was done to develop amaintenance history and improvemaintenance and service deliveryperformance.

• Reactive maintenanceUnplanned repair work that is carried out inresponse to service requests andmanagement/ supervisory directions.

• Specific maintenanceMaintenance work to repair components orreplace sub-components that needs to beidentified as a specific maintenance item inthe maintenance budget.

• Unplanned maintenanceCorrective work required in the short-term torestore an asset to working condition so itcan continue to deliver the required serviceor to maintain its level of security andintegrity.

Maintenance expenditure *Recurrent expenditure, which is periodically orregularly required as part of the anticipatedschedule of works required to ensure that theasset achieves its useful life and provides therequired level of service. It is expenditure, whichwas anticipated in determining the asset’s usefullife.

MaterialityThe notion of materiality guides the margin of erroracceptable, the degree of precision required andthe extent of the disclosure required whenpreparing general purpose financial reports.Information is material if its omission,misstatement or non-disclosure has the potential,individually or collectively, to influence theeconomic decisions of users taken on the basis ofthe financial report or affect the discharge ofaccountability by the management or governingbody of the entity.

Modern equivalent assetAssets that replicate what is in existence with themost cost-effective asset performing the samelevel of service. It is the most cost efficient,currently available asset which will provide thesame stream of services as the existing asset iscapable of producing. It allows for technologychanges and, improvements and efficiencies inproduction and installation techniques

Net present value (NPV)The value to the organisation of the cash flowsassociated with an asset, liability, activity or eventcalculated using a discount rate to reflect the timevalue of money. It is the net amount of discountedtotal cash inflows after deducting the value of thediscounted total cash outflows arising from eg thecontinued use and subsequent disposal of theasset after deducting the value of the discountedtotal cash outflows.


Non-revenue generating investmentsInvestments for the provision of goods andservices to sustain or improve services to thecommunity that are not expected to generate anysavings or revenue to the organisation, eg. parksand playgrounds, footpaths, roads and bridges,libraries, etc.

OperationsRegular activities to provide services such aspublic health, safety and amenity, eg streetsweeping, grass mowing and street lighting.

Operating expenditureRecurrent expenditure, which is continuouslyrequired to provide a service. In common use theterm typically includes, eg power, fuel, staff, plantequipment, on-costs and overheads but excludesmaintenance and depreciation. Maintenance anddepreciation is on the other hand included inoperating expenses.

Operating expenseThe gross outflow of economic benefits, beingcash and non cash items, during the period arisingin the course of ordinary activities of an entitywhen those outflows result in decreases in equity,other than decreases relating to distributions toequity participants.

Operating expensesRecurrent expenses continuously required toprovide a service, including power, fuel, staff, plantequipment, maintenance, depreciation, on-costsand overheads.

Operations, maintenance and renewalfinancing ratioRatio of estimated budget to projectedexpenditure for operations, maintenance andrenewal of assets over a defined time (eg 5, 10and 15 years).

Operations, maintenance and renewal gapDifference between budgeted expenditures in along term financial plan (or estimated futurebudgets in absence of a long term financial plan)and projected expenditures for operations,maintenance and renewal of assets toachieve/maintain specified service levels, totalledover a defined time (e.g. 5, 10 and 15 years).

Pavement management system (PMS)A systematic process for measuring andpredicting the condition of road pavements andwearing surfaces over time and recommendingcorrective actions.

PMS ScoreA measure of condition of a road segmentdetermined from a Pavement ManagementSystem.

Rate of annual asset consumption *The ratio of annual asset consumption relative tothe depreciable amount of the assets. It measuresthe amount of the consumable parts of assets thatare consumed in a period (depreciation)expressed as a percentage of the depreciableamount.

Rate of annual asset renewal *The ratio of asset renewal and replacementexpenditure relative to depreciable amount for aperiod. It measures whether assets are beingreplaced at the rate they are wearing out withcapital renewal expenditure expressed as apercentage of depreciable amount (capitalrenewal expenditure/DA).

Rate of annual asset upgrade/new *A measure of the rate at which assets are beingupgraded and expanded per annum with capitalupgrade/new expenditure expressed as apercentage of depreciable amount (capitalupgrade/expansion expenditure/DA).

Recoverable amountThe higher of an asset's fair value, less costs tosell and its value in use.

Recurrent expenditureRelatively small (immaterial) expenditure or thatwhich has benefits expected to last less than 12months. Recurrent expenditure includesoperations and maintenance expenditure.

Recurrent fundingFunding to pay for recurrent expenditure.

RehabilitationSee capital renewal expenditure definition above.

Remaining useful lifeThe time remaining until an asset ceases toprovide the required service level or economicusefulness. Age plus remaining useful life isuseful life.

RenewalSee capital renewal expenditure definition above.


Residual valueThe estimated amount that an entity wouldcurrently obtain from disposal of the asset, afterdeducting the estimated costs of disposal, if theasset were already of the age and in the conditionexpected at the end of its useful life.

Revenue generating investmentsInvestments for the provision of goods andservices to sustain or improve services to thecommunity that are expected to generate somesavings or revenue to offset operating costs, egpublic halls and theatres, childcare centres,sporting and recreation facilities, touristinformation centres, etc.

Risk managementThe application of a formal process to the range ofpossible values relating to key factors associatedwith a risk in order to determine the resultantranges of outcomes and their probability ofoccurrence.

Section or segmentA self-contained part or piece of an infrastructureasset.

Service potentialThe total future service capacity of an asset. It isnormally determined by reference to the operatingcapacity and economic life of an asset. A measureof service potential is used in the not-for-profitsector/public sector to value assets, particularlythose not producing a cash flow.

Service potential remainingA measure of the future economic benefitsremaining in assets. It may be expressed in dollarvalues (Fair Value) or as a percentage of totalanticipated future economic benefits. It is also ameasure of the percentage of the asset’s potentialto provide services that is still available for use inproviding services (Depreciated ReplacementCost/Depreciable Amount).

Specific MaintenanceReplacement of higher value components/sub-components of assets that is undertaken on aregular cycle including repainting, replacement ofair conditioning equipment, etc. This workgenerally falls below the capital/ maintenancethreshold and needs to be identified in a specificmaintenance budget allocation.

Strategic Longer-Term PlanA plan covering the term of office of councillors (4years minimum) reflecting the needs of thecommunity for the foreseeable future. It bringstogether the detailed requirements in the Council’s

longer-term plans such as the asset managementplan and the long-term financial plan. The plan isprepared in consultation with the community anddetails where the Council is at that point in time,where it wants to go, how it is going to get there,mechanisms for monitoring the achievement ofthe outcomes and how the plan will be resourced.

Sub-componentSmaller individual parts that make up acomponent part.

Useful lifeEither:(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 theentity.

It is estimated or expected time between placingthe asset into service and removing it fromservice, or the estimated period of time over whichthe future economic benefits embodied in adepreciable asset, are expected to be consumedby the organisation.

Value in UseThe present value of future cash flows expectedto be derived from an asset or cash generatingunit. It is deemed to be depreciated replacementcost (DRC) for those assets whose futureeconomic benefits are not primarily dependent onthe asset's ability to generate net cash inflows,where the entity would, if deprived of the asset,replace its remaining future economic benefits.

Source: IPWEA, 2009, AIFMG Glossary

Additional and modified glossary items shown.

DRAFT - s3-ap-southeast-2.amazonaws.com

Documents

Transcript of DRAFT - s3-ap-southeast-2.amazonaws.com