WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN · WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN. ... •...
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WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN
Water Infrastructure Asset Management Plan2
Water Infrastructure Asset Management Plan 3
CONTENTS
1. EXECUTIVE SUMMARY 4
Context 4
Whatdoesitcost? 5
Whatwewilldo 6
Whatwecannotdo 6
Managingtherisks 6
Confidencelevels 7
Thenextsteps 7
Questionsyoumayhave 8
2. INTRODUCTION 10
2.1Background 10
2.2GoalsandObjectivesofAssetManagement 14
2.3PlanFramework 14
2.4CoreandAdvancedAssetManagement 16
2.5CommunityConsultation 16
3. LEVELS OF SERVICE 17
3.1CustomerResearchandExpectations 17
3.2StrategicandCorporateGoals 19
3.3LegislativeRequirements 21
3.4CommunityLevelsofService 22
3.5TechnicalLevelsofService 25
4. FUTURE DEMAND 27
4.1DemandDrivers 27
4.2DemandForecast 27
4.3DemandImpactonAssets 27
4.4DemandManagementPlan 30
4.5AssetProgramstomeetDemand 31
5. LIFECYCLE MANAGEMENT PLAN 34
5.1BackgroundData 34
5.2InfrastructureRiskManagementPlan 44
5.3RoutineOperationsandMaintenancePlan 45
5.4Renewal/ReplacementPlan 51
5.5Creation/Acquisition/UpgradePlan 58
5.6DisposalPlan 61
5.7ServiceConsequencesandRisks 61
6. FINANCIAL SUMMARY 63
6.1FinancialStatementsandProjections 63
6.2FundingStrategy 83
6.3ValuationForecasts 83
6.4KeyAssumptionsmadeinFinancialForecasts 92
6.5ForecastReliabilityandConfidence 93
7. PLAN IMPROVEMENT AND MONITORING 95
7.1StatusofAssetManagementPractices 95
7.2ImprovementPlan 96
7.3MonitoringandReviewProcedures 97
7.4PerformanceMeasures 97
8. REFERENCES 98
9. APPENDICES 99
AppendixA:MaintenanceResponseLevelsofService 100
AppendixB:Projected10-yearCapitalRenewalandReplacementWorksProgram 123
AppendixC:ProjectedUpgrade/Exp/New10-yearCapitalWorksProgram 126
AppendixD:BudgetedExpendituresAccommodatedinLTFP 128
AppendixE:Abbreviations 131
AppendixF:Glossary 132
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1. EXECUTIVE SUMMARY
Context
WaterinfrastructureassetsprovideservicestotheentireAdelaideCityCouncil(Council)areafromfloodprotectiontoroadusers,people,andpropertyincitystreetstotheprovisionofrecreationalandamenityfacilitiesintheAdelaideParkLandssuchastheiconicTorrensLake.TheCouncilareawillundergoconsiderablechangeoverthenext10yearswithCouncildrivinganactivationofpublicspaces,significantincreasesinresidentsandpeoplevisitingthecityresultingingreaterresidentialdensity,demandonopenspaceandconnectivitydrivenbyanemphasisonpedestrians,cyclists,andpublictransport.
Todelivertheseservices,Councilmanagesaportfolioofwaterinfrastructureassetsincludinganundergroundstormwaterdrainagenetworkprovidingfloodprotectiontoroadusers,people,andpropertyduringrainfallevents,anetworkofwatercoursesprovidingamenityandsupportingecosystemsandbiodiversitythroughtheParkLands,andgroupofWeirs,boatlandings,earthretainingstructures,andenvironmentalequipmentsupportingTorrensLakeandEnvirons,Adelaide’siconicrecreationalspace.
ThisAssetManagementPlan(AMPlan)outlineshowCouncilwillmanagetheWaterInfrastructureAssetClasstoprovideandmeasurelevelofservice,reacttodemandingrowthandservicelevels,identifying,assessing,andcontrollingrisksassociatedwithoperatingtheassets,andoutlineaLongTermFinancialPlan(LTFP)fortheoperation,maintenance,renewal,andenhancementoftheWaterInfrastructureAssetClass.
TheCouncil’sstormwaterdrainagenetworkisafullydevelopedsystemingoodcondition,providingaccessibilityandfloodprotectiontocitystreetsandbuildingsinbothminorandmajorrainfallevents.WithgreaterdemandonAdelaide’sopenspacesandcommunityattitudesshiftingtowardsenvironmentalsustainability,therewillbesignificantdemandfornewwaterinfrastructureassetsintheareasofenvironmentalandamenityimprovementssuchaswetlands,watersensitiveurbandesign,pollutantremoval,andwaterqualitytreatment.ThemajorissuesassociatedwiththemanagementofexistingwaterinfrastructureassetsfocusaroundtherenewalofsignificantdegradedwatercoursesintheParkLandsandtheunknownconditionofsubmergedearthretainingstructuresinTorrensLake.
The City of Adelaide Strategic Plan 2016 - 20seekstodeliveroutcomesforthecityanditscommunityinalignmentwiththefollowingfourthemes:
• Smart;
• Green;
• Liveable;and
• Creative.
ThisAMPlanwillensurethatmanagementofwaterinfrastructurewillunderpintheAdelaideeconomy,lifestyle,experience,andwayoflifeoutlinedinCouncil’sStrategic Plan 2016 - 20.
TheWaterInfrastructureAssetClasscontainsadiversecollectionofinfrastructureassetsprovidinganumberofservicesovertheentireCouncilarea.Withvaryingeconomiclife,condition,capacity,age,function,andassetconsumptionattributes,theseassetsarebestmanagedinthefollowingthreeassetcategories:
1. Stormwater drainage network Replacementcost$92.6million
2. River Torrens and watercourse assets Replacementcosts$29.8million
3. Environmental and wastewater infrastructure Replacementcost$4.7million
Theseinfrastructureassetshaveatotalreplacementvalueof$127.1million.
Ingeneral,themajorityofCouncil’sstormwaterdrainagenetworkisingoodconditionwithlittledemandforrenewalsorenhancementsovertheshorttomediumterm.Council’sRiverTorrensandwatercourseassetshoweveraregenerallyinpoorconditionandwillrequiresignificantrenewalofexistingassetsovertheshorttomediumterm.Ingeneral,themajorityoftheenvironmentalandwastewaterassetgrouparenewassetsinverygoodconditionhowevershorterusefulliveswilldemandongoingassetrenewalovertheshorttomediumterm.Thisassetgroupwillhavesignificantgrowthofenhancementassetsovertheshorttomediumtermparticularlyintheareasofwetlandsandwatersensitiveurbandesignfacilities.
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The Water Infrastructure Service
TheWaterInfrastructureAssetClasscomprises:
• Undergroundstormwaterdrainagenetwork(138.7kilometrespipes,3,919inletpits,981manholes,and2,202nodes);
• Creeksandopenchannelwatercourses(7.51kilometres);
• Stormwaterstoragebasins(ninebasins);
• Grosspollutanttraps(14units);
• Weirs(three);
• TorrensLakeearthretainingstructures(2.3kilometres);
• TorrensLakewatermixers(17units);
• TorrensLakeboatramps/landings(10);
• BiologicalFiltrationSystem(onefacility);
• Sedimentationbasins(twobasins);
• Waterqualitymonitoringequipment(sixsites);
• Sewerinfrastructure(fivelocations);and
• Watersensitiveurbandesign(sixfacilities).
What does it cost?
TheprojectedoutlaysnecessarytoprovidetheservicescoveredbythisAMPlanincludesoperations,maintenance,renewal,andupgradeofexistingassetsoverthe10-yearplanningperiodis$3.5milliononaverageperyear.
Estimatedavailablefundingforthisperiodis$3.4milliononaverageperyearwhichis95%ofthecosttoprovidetheservice.Thisisafundingshortfallof$0.18milliononaverageperyear.ProjectedexpenditurerequiredtoprovideservicesintheAMPlancomparedwithplannedexpenditurecurrentlyincludedinthe2014-15LTFPareshowninthegraphbelow.
Figure 8: Projected and LTFP Budgeted Expenditure for Water Infrastructure
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Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Projected Expenditure Budgeted expenditure Expenditure Year 1
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Total water infrastructure portfolio assets ($,000)
10-yeartotalcost(10-yearoperations,maintenance,renewal,andupgradeprojectexpenditure) $35,427
10-yearaveragecost $3,543
10-yeartotalLTFPbudget(10-yearoperations,maintenance,renewal,andupgradeLTFPbudget) $33,599
10-yearaverageLTFPbudget $3,360
10-yearAMfinancialindicator 95%
10-yearaveragefundingshortfall -$183
What we will do
Weplantoprovidewaterinfrastructureservicesforthefollowing:
• Operation,maintenance,renewal,andupgradeofstormwaterdrainagenetwork,RiverTorrensandwatercourseassetsandenvironmentalandwastewaterinfrastructuretomeetservicelevelssetbyCouncilinannualbudgets;
• Renewalofmorethan3.2kilometresofwatercoursesandopenchanneldrainsintheSouthandEastParkLands,renewalofseveralboatlandingsinTorrensLake,renewalofmorethan400metresofearthretainingstructuresinTorrensLakewithinthe10-yearplanningperiod;and
• ConstructionofanewwetlandinVictoriaParkandwatersensitiveurbandesignfacilitiesaroundthecity,installationofthreenewgrosspollutanttrapsinNorthAdelaideandtheSouthParkLands,andinstallationoftwotemporarywaterstoragesinPark16andPark20associatedwiththeBrown Hill Keswick Creek Stormwater Management PlansubjecttoendorsementbytheStateGovernment’sStormwaterManagementAuthorityandfundingagreementswiththeStateandFederalGovernments.
What we cannot do
Thereisadequatefundingtoprovideallexistingservicesatthedesiredservicelevelsandtoprovideinfrastructureassetstodelivernewservices.
Wedonothaveenoughfundingunderpresentfundinglevelstoprovideadequateoperationsandmaintenancetofutureinfrastructureassetsdeliveringnewservicesatthedesiredservicelevels.Worksandservicesthatcannotbeprovidedunderfundinglevels(average$0.18millionperannum)are:
• MaintenanceofthefutureVictoriaParkwetland;
• Operationandmaintenanceofthreenewgrosspollutanttraps;
• Operationandmaintenanceoffuturewatersensitiveurbandesignfacilities;and
• OperationandmaintenanceoffutureTorrensLakeCyanobacteriaManagementSystem.
Managing the risks
Therearerisksassociatedwithprovidingtheserviceandnotbeingabletocompleteallidentifiedactivitiesandprojects.Wehaveidentifiedmajorrisksas:
• InsufficientoperationsandmaintenanceforCouncil’sfutureVictoriaParkwetlandsandwatersensitiveurbandesignfacilitiesreducingeffectivenessofthesefacilitiesinprovidingthedesiredlevelofservice;
• InsufficientoperationsandmaintenanceforCouncil’sfuturegrosspollutanttraps/trashracksinPark11,Park20,andPark17reducingtheeffectivenessofpollutantinterceptionforTorrensLakeandParkLandsCreek;
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• Lowlevelofconfidenceinunitratesandvaluationofmajorinfrastructureassetsduring2013-14revaluationprocessmayresultininadequaciesinLTFPrenewalprojections.RenewalcostsinThree-yearAssetRenewalPlanhasbeenupdatedtomitigatethisriskintheshortterm;
• CurrentOperationsandMaintenancePlanforwaterinfrastructureassetsnotfullyimplementedresultinginacceleratedconsumptionofsomeassetgroups;and
• UnknownconditionofsubmergedearthretainingstructuresinTorrensLakemayrequirerenewalworkstobebroughtforwardifassetsarefoundtobeinverypoorcondition.SubmergedearthretainingstructureswithintheRiverbankdevelopmentwillbeprioritisedtosynergisewiththeproposedRiverbankworks.
Wewillendeavourtomanagetheseriskswithinavailablefundingby:
• ManaginglifecyclecostsofVictoriaParkwetlandsandwatersensitiveurbandesignfacilitiesduringthefeasibilityanddesigntominimiseoperationalandmaintenancecosts;
• ReviewingoperationandmaintenanceofCouncil’sfullportfolioofgrosspollutanttrapstodeterminemorecosteffectivewaystoprovidetheservicesuchasservicecontractsdeliveringeconomyofscalecostsavings;
• Comprehensivereviewofunitratesandvaluationofmajorinfrastructureassetsincludingcomparisonswithprojecthandoverfinancialinformation2009-14anddesktoprevaluationin2016-17;
• FullimplementationofOperationsandMaintenancePlanforwaterinfrastructureassetstoensureassetsaredeliveringrequiredlevelofserviceatacceptableassetconsumptionrates;and
• UndertakinganunderwaterconditionassessmentofexistingsubmergedearthretainingstructuresinTorrensLaketoquantifyremaininglifeandinformtheLTFP.
Confidence levels
ThisAMPlanisbasedonmediumlevelofconfidenceinformationassessedbasedonthefollowing:
• Valuationofassetsmaynotreflecttruefairvalueresultinginashorttermunderstatementofdepreciation;
• Assetrenewalforecastshavebeenbasedonlikeforlikerenewalswithoutlifecycleassessmentanddetailedassessmentofservicestobeprovided;
• Existingassetperformancelevelshavebeenbasedonconditionorageonly.Amoredetailedassessmentonfunctionandcapacityisrequiredtodeterminetheperformanceofassetsinmeetingcommunitylevelsofservice;and
• Operationsandmaintenanceexpenditureisbasedonareactivemaintenancestrategyanddoesnotreflectoperationsandmaintenancelevelstoassetswhichwilldeliverlowestlifecyclecostinprovisionofservices.
The next steps
TheactionsresultingfromthisAMPlanare:
• UndertakeareviewofunitratesandvaluationofmajorinfrastructureassetsfortheWaterInfrastructureAssetClassduring2016-17includingsensitivityanalysisandcomparisonswithprojecthandovercoststodeterminetheimpactoftheaccuracyof2014unitratesonassetsustainabilityandLTFP;
• Reviewofcustomerandtechnicallevelsofserviceduring2016-17includinganewcommunitylevelofservicesurveytoensurethatservicedeliveryperformanceismeetingcommunityexpectations;
• Undertakeareviewandanalysisofrenewalandmaintenancestrategiesforstormwaterdrainageinfrastructureassetsduring2017-18todetermineoptimalrenewalinterventionpointstodeliverservicesatlowestlifecyclecosts;
• UndertakingacomprehensiveunderwaterconditionassessmentofexistingsubmergedearthretainingstructuresinTorrensLakeduring2016-17todetermineremaininglifeforcomparisonwithexistingRenewalPlanbasedonassetage;and
• Implementinspection,maintenance,andreportingactivitiesoutlinedintheOperationalandMaintenancePlanforwaterinfrastructureassetswhicharecurrentlynotundertakenduring2016-17.
Water Infrastructure Asset Management Plan8
Questions you may have
What is this plan about?
ThisAMPlancoverstheinfrastructureassetsthatservetheCouncilcommunity’swaterinfrastructureneeds.Theseassetsincludewastewaterinfrastructure,stormwaterdrainageinfrastructure,watercoursesandwaterstorages,TorrensLakeinfrastructure,andenvironmentalinfrastructuresuchasgrosspollutanttrapsandbiologicalfiltrationequipmentthroughoutthecommunityareathatenablepeopletobeprotectedfrommajorrainfallevents;accessstreets,footpaths,publicspaces,andbuildingsduringminorrainfallevents,safelyaccesswaterstoragesandwatercourses,attendeventsservicedbywastewaterinfrastructure,andenjoynaturalhabitatsandecosystemsprovidedforbywatersensitiveurbandesignandenvironmentalimprovementinfrastructure.
What is an Asset Management Plan?
Assetmanagementplanningisacomprehensiveprocesstoensuredeliveryofservicesfrominfrastructureisprovidedinafinanciallysustainablemanner.
AnAMPlandetailsinformationaboutinfrastructureassetsincludingactionsrequiredtoprovideanagreedlevelofserviceinthemostcosteffectivemanner.Theplandefinestheservicestobeprovided,howtheservicesareprovided,andwhatfundsarerequiredtoprovidetheservices.
Is there a funding shortfall?
ThemajorityofCouncil’solderwaterinfrastructureassetshavebeenconstructed,maintained,andrenewedbyCouncilovera90-yearperiod.Counciliscurrentlyprovidingadequateoperational,maintenance,andrenewalfundingwhichmeetsassetconsumptionrates.
Thereareanumberofrecentlyacquiredwaterinfrastructureassetsconstructedfromgovernmentgrantsparticularlyintheareaofwaterqualitytreatmentandwatersensitiveurbandesign.Priortoacceptingtheseassets,Councilwasawareofongoingoperations,maintenance,andreplacementneedsandtheseassetshavebeenincludedinthisplan.
Ourpresentfundinglevelsareinsufficienttocontinuetoprovideexistingservicesatcurrentlevelsinthemediumtermhoweverfundingofoperationandmaintenanceofnewserviceswillcreateafundingshortfallof10-yearaverage$182,000perannum.
What options do we have?
Resolvingthefundingshortfallinvolvesseveralsteps:
1. Improvingassetknowledgesothatdataaccuratelyrecordstheassetinventory,howassetsareperforming,andwhenassetsarenotabletoprovidetherequiredservicelevels;
2. Improvingourefficiencyinoperating,maintaining,renewing,andreplacingexistingassetstooptimiselifecyclecosts;
3. Identifyingandmanagingrisksassociatedwithprovidingservicesfrominfrastructure;
4. Makingtrade-offsbetweenservicelevelsandcoststoensurethatthecommunityreceivesthebestreturnfrominfrastructure;
5. Identifyingassetssurplustoneedsfordisposaltomakesavinginfutureoperationsandmaintenancecosts;
6. Consultingwiththecommunitytoensurethatwaterinfrastructureservicesandcostsmeetcommunityneedsandareaffordable;
7. Developingpartnershipwithotherbodies,whereavailabletoprovideservices;and
8. Seekingadditionalfundingfromgovernmentsandotherbodiestobetterreflecta‘wholeofgovernment’fundingapproachtoinfrastructureservices.
Water Infrastructure Asset Management Plan 9
What happens if we don’t manage the shortfall?
Itislikelythatwewillhavetoreduceservicelevelsinsomeareas,unlessnewsourcesofrevenuearefound.Forwaterinfrastructure,theservicelevelreductionmayincludereductionofthefrequencyofemptyinggrosspollutanttraps,designofVictoriaParkwetlands,andwatersensitiveurbandesignfacilitieswhichprovidealowerlevelofservice(environmentalsustainability)ataloweroperatingandmaintenancecost.Reductioninmaintenanceinotherareasmayacceleratetheconsumptionofsomeassetgroups.
What can we do?
Wecandevelopoptions,costs,andprioritiesforfuturewaterinfrastructureservices,consultwiththecommunitytoplanfutureservicestomatchthecommunityserviceneedswithabilitytopayforservices,andmaximisecommunitybenefitsagainstcosts.
What can you do?
WewillbepleasedtoconsideryourthoughtsontheissuesraisedinthisAMPlanandsuggestionsonhowwemaychangeorreduceitswaterinfrastructuremixofservicestoensurethattheappropriatelevelofservicecanbeprovidedtothecommunitywithinavailablefunding.
Water Infrastructure Asset Management Plan10
2.1 Background
ThisAMPlanistodemonstrateresponsivemanagementofassets(andservicesprovidedfromassets),compliancewithregulatoryrequirements,andtocommunicatefundingneededtoprovidetherequiredlevelsofserviceovera20-yearplanningperiod.
TheAMPlanfollowstheformatforAMplansrecommendedinSection4.2.6oftheInternational Infrastructure Management Manual1.
TheAMPlanistobereadwiththeorganisation’sAsset Management Policy, Asset Management Strategy, andthefollowingassociatedplanningdocuments:
• Draft City of Adelaide Strategic Plan 2016 - 20*
• The Corporation Plan 2012 - 16 One City One Team
• Active City Strategy 2011
• Smart Move Transport and Movement Strategy 2012 - 22
• Community Land Management Plans(various)
• Adelaide Park Lands Management Strategy
• Development Plan Adelaide (City) – 2014
• International Infrastructure Management Manual 2011
• Conduit Inspection Reporting Code of Australia WSA 05-2013
• Condition Assessment and Asset Performance Guidelines – IPWEA-NAMS.AU Practice Note 5 - Stormwater Drainage
• *(andanyfuturestrategicplansadoptedbyCouncil)
2. INTRODUCTION
1.IPWEA,2011,Sec4.2.6,Example of an Asset Management Plan Structure,pp4|24–27.
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ThisinfrastructureassetscoveredbythisAMPlanareshowninTable2.1.Theseassetsareusedtoprovidefloodprotectionandaccessibilityduringmajorandminorrainfallevents,safe,appropriate,andattractivewaterbodiesforrecreationaluse,wastewaterinfrastructuretosupporteventsintheParkLands,sustainablereuseofstormwaterandwastewater,andenvironmental/habitatenhancementservicestothecommunity.
Table 2.1: Assets covered by this Asset Management Plan
Asset category Dimension 2013 - 14 Replacement value
Stormwatermains 119.1kilometresmainspipes $64,800,000
Stormwaterinletpitsandpipes 3,919inletpits
19.62kilometresinletpipes
$15,300,000
$5,600,000
Stormwatermanholes 981manholes $3,140,000
Stormwaternodes 2,202nodes $3,880,000
Stormwaterchannels 7.51kilometresopenchannels $8,810,000
Stormwaterstoragebasins 9basins $1,240,000
Grosspollutanttraps 14units $2,330,000
Weirs 3weirs $8,780,000
TorrensLakemacrophytes 18,500squaremetres $1,100,000
TorrensLakeearthretainingstructures 2.3kilometres $8,600,000
TorrensLakewatermixers 17units $422,000
Boatramps/landings 10no $1,180,000
BiologicalFiltrationSystem 1facility $400,000
Sedimentationbasins 2basins $380,000
Waterqualitymonitoringequipment 6sites $79,272
Sewerinfrastructure 5locations $271,306
Watersensitiveurbandesign 6facilities $779,757
TOTAL $127,131,077
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KeystakeholdersinthepreparationandimplementationofthisAMPlanare:ShowninTable2.1.1.
Table 2.1.1: Key Stakeholders in the Asset Management Plan
Key stakeholder Role in AM Plan
ElectedMembers • Representneedsofcommunity/shareholders;
• Allocateresourcestomeettheorganisation’sobjectivesinprovidingserviceswhilemanagingrisks;and
• Ensureorganisationisfinancialsustainable.
CEO/Directors ExecutiveManagementendorsement,signoffandexecutiveownership.
AssociateDirectorInfrastructure ReviewandapprovaloftheAMPlan.
AssetConsultantWater Development,implementation,andmaintenanceoftheAMPlantomeetcommunitylevelsofservice.
Adelaidecommunitywhoreceiveservicesfromwaterinfrastructure
Providefeedbackonassetperformance,newservicedemand,desiredlevelofservice,agreedlevelofservice,andfutureserviceplanning.
PublicRealmProgram CleaningandInfrastructureMaintenanceteamsoperateandmaintaintheinfrastructuremanagedundertheAMPlantomeettechnicallevelsofservice.
StrategyandInnovationProgram DevelopmentofannualbusinessplanandbudgetandStrategicManagementPlanreview.
FinanceandBusinesses FundingforLTFP.
CitySustainabilityandParkLandsProgram
Developmentofsustainableservicedeliveryoutcomesinvolvingrenewalandenhancementofwaterinfrastructureassets.
StateGovernment(AandMLRNRMB,SAWater,EPA,DPTI,PlanningSA)
Projectpartnerintheimplementationofwaterinfrastructureenhancementprojects,operationalactivitiesandstrategicplanning.
Catchmentcouncils ProjectpartnersinthedevelopmentstormwatermanagementplansimpactingwatercatchmentsintheAdelaideMetropolitanArea.
Serviceauthorities ProjectpartnersinthejointrenewalofinfrastructureassetsinthePublicRealm.
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Chief Executive
Officer
Director Community
Associate Director
DesignandStrategy
Asset Information
Services
Director Growth
Associate Director
Infrastructure
Infrastructure Assets
Director Operations
Associate Director
PublicRealm
Buildings and Park Lands
Assets
Director Services
Theorganisationalstructureforservicedeliveryfrominfrastructureassetsisdetailedbelow:
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2.2 Goals and Objectives of Asset Management
Theorganisationexiststoprovideservicestoitscommunity.Someoftheseservicesareprovidedbyinfrastructureassets.Wehaveacquiredinfrastructureassetsby‘purchase’,bycontract,constructionbyourstaff,andbydonationofassetsconstructedbydevelopersandotherstomeetincreasedlevelsofservice.
Ourgoalinmanaginginfrastructureassetsistomeetthedefinedlevelofservice(asamendedfromtimetotime)inthemostcosteffectivemannerforpresentandfutureconsumers.Thekeyelementsofinfrastructureassetmanagementare:
• Providingadefinedlevelofserviceandmonitoringperformance;
• Managingtheimpactofgrowththroughdemandmanagementandinfrastructureinvestment;
• Takingalifecycleapproachtodevelopingcost-effectivemanagementstrategiesforthelong-termthatmeetthedefinedlevelofservice;
• Identifying,assessing,andappropriatelycontrollingrisks;and
• HavingaLTFPwhichidentifiesrequired,affordableexpenditure,andhowitwillbefinanced2.
2.3 Plan Framework
Keyelementsoftheplanare:
• Levelsofservice–specifiestheservicesandlevelsofservicetobeprovidedbytheorganisation;
• Futuredemand–howthiswillimpactonfutureservicedeliveryandhowthisistobemet;
• Lifecyclemanagement–howCouncilwillmanageitsexistingandfutureassetstoprovidedefinedlevelsofservice;
• Financialsummary–whatfundsarerequiredtoprovidethedefinedservices;
• Assetmanagementpractices;
• Monitoring–howtheplanwillbemonitoredtoensureitismeetingorganisation’sobjectives;and
• AssetManagementImprovementPlan.
AroadmapforpreparinganAMPlanisshownonthefollowingpage.
2.BasedonIPWEA,2011,IIMM,Sec1.2p1|7.
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Road Map for preparing an Asset Management Plan
Source:IPWEA,2006,IIMM,Fig1.5.1,p1.11.
AM Plan review
and audit
Define scope and structure
of plan
Implement improvement
strategy
Annual Plan / Business Plan
Is the plan affordable?
Corporate Planning
ConfirmstrategicobjectivesandestablishAMpolicies,strategies,andgoals
DefineresponsibilitiesandownershipDecidecoreoradvancedAMPlan
Gainorganisationcommitment
Review / Collate Asset Information
ExistinginformationsourcesIdentifyanddescribeassets
DatacollectionConditionassessmentsPerformancemonitoring
Valuationdata
Establish Levels of Service
EstablishstrategiclinkagesDefineandadoptstatements
EstablishmeasuresandtargetsConsultation
Financial Forecasts
LifecycleanalysisFinancialforecastsummary
ValuationdepreciationFunding
Improvement Plan
Assesscurrent/desiredpracticesDevelopimprovementplan
Lifecycle Management Strategies
DeveloplifecyclestrategiesDescribeservicedeliverystrategy
RiskmanagementstrategiesDemandforecastingandmanagement
Optimiseddecisionmaking(renewals/newworks/disposals)OptimisemaintenancestrategiesIn
form
atio
n m
an
agem
ent
an
d d
ata
imp
rove
men
t
IterationReconsiderservicestatements
OptionsforfundingConsultwithCouncil
ConsultwithCommunity
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2.4 Core and Advanced Asset Management
ThisAMPlanispreparedasa‘core’AMPlanovera20-yearplanningperiodinaccordancewiththeInternational Infrastructure Management Manual3.Itispreparedtomeetminimumlegislativeandorganisationalrequirementsforsustainableservicedeliveryandlongtermfinancialplanningandreporting.Coreassetmanagementisa‘topdown’approachwhereanalysisisappliedatthe‘system’or‘network’level.
FuturerevisionsofthisAMPlanwillmovetowards‘advanced’assetmanagementusinga‘bottomup’approachforgatheringassetinformationforindividualassetstosupporttheoptimisationofactivitiesandprogramstomeetagreedservicelevelsinafinanciallysustainablemanner.
2.5 Community Consultation
This‘core’AMPlanispreparedtofacilitatecommunityconsultationinitiallythroughfeedbackonpublicdisplayofdraftassetmanagementplanspriortoadoptionbytheCouncil/Board.FuturerevisionsoftheAMPlanwillincorporatecommunityconsultationonservicelevelsandcostsofprovidingtheservice.ThiswillassisttheCouncil/Boardandthecommunityinmatchingthelevelofserviceneededbythecommunity,servicerisks,andconsequenceswiththecommunity’sabilityandwillingnesstopayfortheservice.
3.IPWEA,2011,IIMM.
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3.1 Customer Research and Expectations
Duringlate2014,IPWEAreleasedPractice Note 8 – Levels of Service and Community Engagementoutliningaprocessforundertakinglevelofserviceengagementandconsultationoutliningafivestepprocesstodevelop,negotiate,andimplementagreedlevelsofservicewiththecommunity.Thisincludesundertakingcommunityconsultationinthreelevels:Level1–identifyingwhatcustomer’svalue,Level2–seekinginputstolevelsofservice,andLevel3–seekingagreementtolevelsofservice.
During2015,CouncilundertookcommunityconsultationonLevel2–seekinginputstolevelsofservicebasedaroundassumedlevelsofimportanceforservicesprovided.ThismethodologywasrequiredduetolimitedtimeframesandCouncil’scommunityconsultationstrategiesandmethodologies.GiventhatallCouncilinfrastructureservicelevelsweretomemeasured,therewasalimitonthenumberofservicestomeasuredandfortheWaterInfrastructureAssetClass,consultationwaslimitedtothefollowingthreeservicesmeasuredunderthecitystreetsandParkLandscommunityconsultationcategories:
1. PerformanceofCouncil’sstormwatermanagementsysteminsupportingaccesstopedestrians,cyclists,andvehicleusersonCouncil’sfootpaths,cyclepaths,androadwaysduringminorrainfallevents.
2. PerformanceofCouncil’sstormwatermanagementsysteminprotectingpeopleandpropertyduringmajorrainfallevents.
3. PerformanceofCouncil’sRiverTorrensandParkLandswatercourseinsupportingrecreation,education,andenvironmentalservices.
Resultsofthesurveyandcomparisonswithpreviouslevelofservicemeasuresundertakenin2009and2011areoutlinedbelow:
City Streets - Stormwater and Flooding
Council’sstormwatermanagementsystemprovidingaccessforpedestrians,cyclists,andmotoriststoCouncilfootpaths,cyclepaths,androadwaysduringminorrainfalleventsisconsideredsufficientby65%ofparticipants.
Thisisasimilarperformancemeasuretopreviousyearswhererespondentsprovideda72%performanceratingin2011and67%in2009howeverthesemeasureswerebasedonthestormwatermanagementsystemasawholeincludingminorandmajorstormwaterevents.
Only39%ofrespondentsagreedthatCouncil’sstormwatermanagementsystemprotectedpropertiesfromfloodingduringmajorrainfalleventshowever59%ofrespondentscouldnotprovidearesponsetothismeasureastheyhadnotexperiencedsignificantrainfalleventsinthecitywhichisnotunexpectedgiventhatmajorrainfalleventsarerare.Thelaststormwatereventexceedingonein20yearARIoccurredinNovember2005,morethan10yearsago.
Park Lands – River Torrens, Creeks, and Watercourses
Overall,76%orrespondentsweresatisfiedwithParkLandscreeksandwatercourseswith78%satisfiedthattheyweresafetobenearwatercoursesand73%satisfiedthatwatercourseswerewellmaintained.MostrespondentsbasedtheirmeasureontheRiverTorrensandotherParkLandsrecreationallakesthereforethemeasuremorethanlikelydoesnotreflectthatforwatercoursesingenerallocatedintheParkLands.
In2011,therespondentsmeasuredtheperformanceoftheRiverTorrensandParkLandscreeksatonly61%withwaterqualityinTorrensLakecitedasneedforimprovementasthelakehadreceivedsignificantnegativemediaattentionbetween2008and2011withregularlakeclosuresduetobluegreenalgaeoutbreaks.ImplementationofTorrensTaskForcerecommendationsandtheRiverTorrensWaterQualityImprovementProgramhasseensignificantimprovementsinwaterqualityandnolakeclosuresoverthelastthreeyears.
WhiletherehasbeencontinuedimprovementinlevelofserviceforusersoftheTorrensLakeprecinct,watercoursesintheParkLandsaresignificantlydegradedandinmanycasesarenotprovidingtheservicesintendedparticularlyintheareasofsafety,waterquality,recreation,habitat,andbiodiversity.
GiventhelimitationsonthemethodsofcommunityconsultationundertakenandmeasurementofactuallevelsofserviceoutsidetherequirementsoutlinedinPractice Note 8 – Levels of Service and Community Engagement,thecommunityandtechnicallevelsofserviceoutlinedinthisplanhavebeendevelopedusingthebestinformationavailablefromthe2009,2011,and2015communityconsultationmeasures.
3. LEVELS OF SERVICE
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0
0
Not meeting needs at
Not meeting needs at
Gutters,drains,andstormwaterdisposals
Torrensandcreeksconditionandwaterquality
7.2
6.1
Meeting my needs extremely well
Meeting my needs extremely well
2.0
2.0
4.0
4.0
6.0
6.0
8.0
8.0
10
10
City Park Lands – Mean Performance Scores
City Streets – Mean Performance Scores
Figure 3.1: 2011 Community Satisfaction Survey Levels
Figure 3.2: 2009 Community Satisfaction Survey Levels
TheorganisationusesthisinformationindevelopingitsStrategicPlanandinallocationofresourcesinthebudget.
SUPPLIED FILE IS LOW RES
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3.2 Strategic and Corporate Goals
ThecontentofthisAMPlanwaspreparedinearly2014underthedirectionofThe City of Adelaide Strategic Plan 2012 - 16andassociatedCorporation Plan 2012 - 16andreflectsthegoalsandaspirationsofthepreviousCouncilterm(November2010-October2014).
WiththeelectionofthenewCouncilinOctober2014,anewCouncil Strategic Plan 2016 - 20wasunderdevelopmentinDecember2015duringthefinalisationofthisAMPlan.
Fromthepreliminaryinformationavailable,thefollowingCouncilvision,mission,goals,andobjectivesassociatedwithcommunityservicesprovidedbywaterinfrastructureassetshavebeenidentified.
Ourvisionis:
Adelaide is a smart, green, liveable, boutique city full of rich experiences
Ourprimarygoalis:To strengthen the City economy by growing the number of people living, working, playing, visiting, and studying in the City every day
AsthecapitalcityofSouthAustralia,Adelaidehasavitalroletoplayinshapingthefutureofourstate.
Wefaceunprecedentedchangesarisingfrommajorglobal,national,andlocaltrends.Reassuringly,ourprovenrecordofcreativity,innovation,andsocialtransformationseesourcitywellplacedtoleadthestateinmeetingthesechanges.
OurplanistoenrichAdelaide’slifestyleandboostitsgrowthbybecomingoneoftheworld’ssmartestcitieswithagloballyconnectedandopportunityricheconomy.
Wewillbeoneoftheworld’sfirstcarbonneutralcitiesandagloballeaderinsustainabilityandrespondingtoenvironmentalchange.
Adelaidewillalwaysbeadistinctivelyuniquecapitalcitythatsupportsabalancedlifestyleandastrongcommunity.Ourauthenticanddiverserangeofexperienceswillbeinternationallyrenowned.
Ourmission:
Toachievethevision,Councilhasadoptedfourkeyoutcomeswhichwillguidetheorganisationsprojects,plans,policies,andstrategiesincludingthisAMPlan.Thefouroutcomes/missionstatementsare:
• Smart–Aworldsmartcitywithagloballyconnectedandopportunityricheconomy;
• Green–Oneoftheworld’sfirstcarbonneutralcitiesandaninternationalleaderinenvironmentalchange;
• Liveable–Adiverseandwelcomingcapitalcitywithanenviablelifestyleandstrongcommunity;and
• Creative–Acityofauthenticandinternationallyrenownedexperiences.
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RelevantorganisationalgoalsandobjectivesandhowtheseareaddressedinthisAMPlanareidentifiedbelow.
Table 3.2: Organisational Goals and how these are addressed in this Asset Management Plan (PreliminaryCity of Adelaide Strategic Plan 2016 - 20)
Theme Objective Actions How actions are addressed in AM Plan
Smart Totalbusinessesinthecitywillgrowfrom5,000toover5,300andworkersfrom89,000to94,000by2020,onthewayto7,000businessesandover102,000workersby2040.
Builduponthegrowinglanewayandentrepreneurialcultureinthecitybyrejuvenatingprimarylanewaysandpedestrianconnections.Prioritiesforcompletionby2018willbetheAdelaideRailwayStationtoAdelaideCentralMarketlinkandRundleMalllanewaysincludingGawlerPlace.
EnsureCouncil’sstormwatermanagementsystemprovideseffectivemanagementofstormwaterrun-offduringminorrainfalleventstomaintainvehicle,pedestrian,andbicycleaccessibilitytopedestrianconnections.Usecollectedstormwaterrun-offforpassiveirrigationofgreenspaces.
Green Reducecitycarbonemissionsby35%fromthe2006-07baseline,onthewaytoan80%realreductionby2040.
EnhancebiodiversityintheParkLandsandstrengthentheirroleinachievingacarbonneutralcity.
Plantmorethan135,000newplantsaspartoftheParkLandsCreekRenewalProjectintheSouthParkLands
Greenspaceandgreeneryinthebuiltupareasofthecitytoincreaseby100,000squaremetersby2020onthewaytoarealreductionincitytemperaturesby2040.
Increasepublicandprivategreeningwithstreettrees,gardens,communitygardens,greenwalls,androofs,vegetablegardensonstreetvergesprovidingincentiveswhereappropriate.
Usecollectedstormwaterrun-offtopassivelyirrigateraingardens,bio-retentionbasins,trees,andlandscapedareasinroadwaysandstreetverges.
By2020,aquaticnativeplantsontheTorrensLakefloortoincreasefromalmostzeroto7,500squaremetresasweprogresstowardimprovedaquatichealthandahighdiversityofnativefishspeciesintheTorrensRiverby2040.
ImprovetheecologicalvalueofwatercoursesandbiodiversityintheParkLands.
ProvidewaterdetentionalongParkLandswatercoursestosupportdiversehabitatandbiodiversity.CreateahabitatcorridorinthesouthParklandsaspartoftheParkLandsCreekRenewalProject.
Reducestormwaterrun-offandpollutionintotheTorrensRiverthroughintegratedcatchmentmanagementandwatersensitiveurbandesign.
ManageCouncil’sexistingsuiteofgrosspollutanttrapsonstormwaterdrainstointerceptpollutantsfromreachingtheRiverTorrenswaterbody.Removenutrientsfromreceivingwatersthroughwatersensitiveurbandesignsuchasraingardensandbio-retentionbasinsinstreetsandParkLands.
Acomprehensiveintegratedwatermanagementmeasurehasbeendevelopedandinfluencesourwork.
ContinuetoworkwiththeStateGovernmentandothercouncilstoreducestormwaterandotherpollutantsintotheRiverTorrenscatchment.
WorkwiththeStateGovernmentandeasternregioncouncilstoimplementpollutantinterceptionandwaterqualityinitiativesoutlinedintheTorrens Task Force RecommendationsandEastern Region Urban Stormwater Management Plan.
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Table 3.2: Organisational Goals and how these are addressed in this Asset Management Plan continued
Theme Objective ActionsHow actions are addressed in AM Plan
Liveable Thenumberofpeoplelivinginthecitywillgrowfrom23,000to28,000by2020,onthewayto50,000by2040.
Createworld-classinfrastructurebyadoptingathree-yearrollingcapitalworksprogramforthecityandParkLandstoensureallnewandexistinginfrastructurearedeliveredandmaintainedtohighqualitystandardsincorporatingtechnology,heritage,arts,andgreenelements.
Ensurethatwaterinfrastructurerenewalandenhancementprojectsdeliverhighqualitymulti-objectiveoutcomesincludingraingardenstoimprovewaterquality,stormwaterreuseforpassiveirrigationofgreenspaces,andbiodiversityalongwatercoursesthatpromotesindigenousheritage.
WorkwithneighbouringcouncilsandtheStateGovernmenttoenhancethefacilities,attractions,landscapes,andmovementnetworksintheParkLandstomeettheneedsandexpectationsofgrowinghighdensitycommunitieslivinginandnearthecity.
ManagestormwaterflowpathsintheParkLandstoprovideunimpededpedestrianandcyclistmovement.WorkwiththeStateGovernmentandneighbouringcouncilstoincorporatehabitat,biodiversity,educational,andrecreationalopportunitiesaspartoftheSouthParkLandsStormwaterManagementProject.
Creative ThenumberofpeopleattendingeventsinthecityandParkLandshasgrown5%by2020,onthewayto15%growthby2040.
WorkwithneighbouringcouncilsandtheStateGovernmenttoenhancetheroleoftheParkLandsinsupportingartistic,sporting,andrecreationalactivities.
WorkwiththeStateGovernmentandothercatchmentcouncilstorenewwatercoursesinthesouthandeastParkLandstosupportrecreationalandculturaleventsinthoseParks.
Adetailedmeasureofthenumberofpeoplecreatingandactivelyparticipatinginarts,culture,sport,andrecreationactivitieshasbeendevelopedandinfluencesourwork.
PromotetheroleoftheParkLandsinincreasinglevelsofphysicalactivitythroughformalandinformalsportandrecreationopportunities.
DevelopformalandinformalpathwaysforpedestriansandcyclistsduringtherenewalofParkLandsCreekintheSouthParkLands.Developmoundingalongthewatercoursetosupportorganisedsportintheadjacentplayingfields.
Thenumberofpeoplethatarevisitingthecityeachdayforshopping,leisureorentertainmentwillgrowfrom111,000to117,000by2020,onthewayto128,000by2040.
WorkwiththeStateGovernmentinthedevelopmentoftheRiverbankPrecinctincludingtheFestivalPlazaupgrade,theAdelaideConventionCentreredevelopment,theSouthAustralianHealthandBiomedicalPrecinct,andplanningfortheoldRoyalAdelaideHospitalredevelopment.
WorkwiththeStateGovernmentinimplementingtheTorrensTaskForceandRiverTorrenswaterqualityimprovementprogramstoimprovewaterqualityinTorrensLaketosupporttheRiverbankPrecinctredevelopment.EnsurefloodprotectionisprovidedtotheoldRoyalAdelaideHospitalsite.
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3.3 Legislative Requirements
TheorganisationhastomeetmanylegislativerequirementsincludingAustralianandStatelegislationandStateregulations.Theseinclude:
Table 3.3: Legislative Requirements
Legislation Requirement
Local Government Act 1999 Setsoutrole,purpose,responsibilities,andpowersoflocalgovernmentsincludingthepreparationofaLTFPsupportedbyassetmanagementplansforsustainableservicedelivery.
National Construction Code 2014 Setsoutminimumstandardsforstormwatermanagementforpropertydevelopments.
Environment Protection Act 1993 OutlinesanumberofrequirementsforthemanagementofwaterinfrastructureatAdelaideCityCouncilincludingalgaecidetreatmentofwaterbodies,waterqualityofstormwaterdischarge,anddredgingofwatercourses.
Environmental Protection (Water Quality) Policy 2003
Defineswhatisacceptablefordischargeasstormwaterandsetswaterqualitystandardsforstormwaterreceivingwaters.
Adelaide Plains Water Allocation Plan (groundwater) – when available
Planforthemanagement,conservation,anddevelopmentofgroundwaterresourcesintheAdelaidemetropolitanarea.
Western Mount Lofty Ranges Water Allocation Plan 2013
RegulatestheamountanduseofwaterextractedfromtheRiverTorrensandotherwatercoursesintheAdelaideCityCouncilarea.
Natural Resource Management Act 2004
SetsoutresponsibilitiesandpowersoflocalgovernmentforthemanagementofnaturalwaterwaysandmanagementrequirementsforsurfaceandgroundwaterintheAdelaidemetropolitanarea.
Emergency Management Act 1994 Requireslifelineutilitiestofunctionatthefullestpossibleextentduringandafteranemergencyandtohaveplansforsuchfunctioning(businesscontinuityplans).
Development Plan – Adelaide (City) 2014
GovernsdevelopmentwithinthecityofAdelaide,regulateson-sitestormwatermanagement,detention,andreusefordevelopments.
Local Government Stormwater Management Act 2007
OutlinestheStormwaterManagementAgreementbetweenStateandLocalGovernments,establishmentoftheStormwaterManagementAuthority,andpreparationofstormwatermanagementplans.
Brown Hill Keswick Creeks Stormwater Management Plan 2012
OutlinesCouncil’sresponsibilitiesundertheapprovedStormwaterManagementPlanfortheBrownHillKeswickCreekcatchmentsandtherelevantordersissuedbytheStormwaterManagementAuthority.
Eastern Region Stormwater Management Plan (future)
WilloutlineCouncil’sresponsibilitiesunderthefutureStormwaterManagementPlanfortheEasternRegioncatchments(FirsttoFifthCreeks).
SA Strategic Plan 2011 and30-year Plan for Greater Adelaide 2010
OutlineswaterqualityandwatersustainabilitytargetsformetropolitanAdelaideincludingwateruse,stormwaterreuse,andwastewaterreuseinitiatives.
TheorganisationwillexerciseitsdutyofcaretoensurepublicsafetyinaccordancewiththeInfrastructure Risk Management PlanlinkedtothisAMPlan.ManagementofrisksisdiscussedinSection5.2.
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3.4 Community Levels of Service
Servicelevelsaredefinedservicelevelsintwoterms:customerlevelsofserviceandtechnicallevelsofservice.
Communitylevelsofservicemeasurehowthecommunityreceivestheserviceandwhethertheorganisationisprovidingcommunityvalue.
CommunitylevelsofservicemeasuresusedintheAMPlanare:
Quality How good is the service?
Function Does it meet users’ needs?
Capacity / utilisation Is the service over or under used?
Theorganisation’scurrentandexpectedcommunityservicelevelsaredetailedinTables3.4and3.5.Table3.4showstheagreedexpectedcommunitylevelsofservicebasedonresourcelevelsinthecurrentLTFPandcommunityconsultation/engagement.
Community Outcomes
• Smart –Providingfloodprotectiontopropertiesandinfrastructureandeffectivemanagementofstormwaterrun-offduringminorrainfalleventstomaintainvehicle,pedestrian,andbicycleaccessibilitytopedestrianconnections.Usecollectedstormwaterrun-offforpassiveirrigationofgreenspaces(stormwaterdrainagenetworkassets).
• Green –Creeks,watercourses,andfloodmitigationbasinsthroughtheParkLandswhicharesafe,accessible,andsupportarangeofoutcomesincludingnaturalecosystembiodiversityandhabitat,waterquality,conservation,andreuse(RiverTorrensandwatercourseassets).
• Liveable –Providewaterinfrastructurewhichprovidesmulti-objectiveoutcomessuchwaterqualityandpassiveirrigationofgreenspacessuchasraingardens,landscaping,andbio-retentionbasinsincitystreetsandtheParkLands(environmentalandwastewaterinfrastructure).
• Creative –CreeksandwatercoursesinthesouthandeastParkLandswhichsupportpassiverecreationthroughpathwaysandcyclewaysalongcreeklines,facilitieswhichsupportorganisedrecreationaroundsportingfieldsandsupportforculturaleventsandeducationexperiences.ImprovewaterqualityinTorrensLaketosupportrecreationandtheRiverbankPrecinctredevelopment(RiverTorrensandwatercourseassets).
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Table 3.4: Community Level of Service
Service attribute Service objective Performance measure process
Current performance Expected position in 10 years based on current LTFP
COMMUNITYLEVELSOFSERVICE
Quality SAFETY–TorrensLakeandwatercoursesaresafeforthepublictobenear.
CustomersatisfactionsurveysrelatingtoTorrensandwatercoursesafety.
Communitysatisfiedwithperformance.
Confidencelevel–Low.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
PathwayservicerequestsrelatingtosafetyofwatercoursesintheParkLands.
3-5reportedincidentsofwatercoursesafetyperannum.
Confidencelevel–High.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
AMENITY–TorrensLakeandParkLandswatercoursesarewellmaintained.
CustomersatisfactionsurveysrelatingtohowwellTorrensLakeandParkLandswatercoursesaremaintained.
Communitysatisfiedwithperformance.
Confidencelevel–Low.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
AMENITY–Council’sstormwatermanagementsystemismaintainedinafunctioningconditionwithminimumblockagesofpipesandpits.
PathwayservicerequestsrelatingtoCatchpitgutterisblocked–floodingorCatchpitgutterdrain–smellyorCatchpitproblem–damaged.
81Pathway‘Catchpitgutterisblocked’requestsperannum(averagelast3years).
26Pathway‘Catchpitgutterdrain–smelly’requestsperannum(averagelast3years).
31Pathway‘Catchpitproblem–damaged’requestsperannum(averagelast3years).
Confidencelevel–High.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
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Table 3.4: Community Level of Service continued
Service attribute Service objective Performance measure process
Current performance Expected position in 10 years based on current LTFP
COMMUNITYLEVELSOFSERVICE
Function WaterqualityinTorrensLakemeetsminimumstandardforrecreationaluse.
Monthly(winter)andtwiceweekly(summer)waterqualitymeasurementsinTorrensLakeandrecreationallakes.
TorrensLakehasmetsecondarycontactrecreationaluseoverthelast3years.
Confidencelevel–High.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
AMENITY–Council’sstormwatermanagementsystemprovidingaccessforpedestrians,cyclists,andmotoriststoCouncilfootpaths,cyclepaths,androadwaysduringminorrainfallevents.
Customersatisfactionsurveysrelatingtohowwellaccesstofootpaths,cyclepaths,androadwaysismaintainedduringminorrainfallevents.
65%communitysatisfiedwithperformance.
Confidencelevel–High.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
Capacity/utilisation
Council’sstormwatermanagementsystemprotectspropertiesfromfloodingduringmajorrainfallevents.
CustomersatisfactionsurveysrelatingtohowwellCouncil’sstormwatermanagementsystemprotectspropertiesfromfloodingduringmajorrainfallevents.
39%communitysatisfiedwithperformance.
Confidencelevel–Low.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
ProvideanappropriatelevelofwatersensitiveurbandesignfacilitiesinthecityandNorthAdelaide.
CustomersatisfactionsurveysrelatingtohowwellCouncilisdeliveringwatersensitiveurbandesignservices.
CommunitynotsatisfiedwiththenumberofwatersensitiveurbandesignfacilitiesinthecityandNorthAdelaide.
Confidencelevel–High.
Assessmentonlowestlifecyclecostandagreedsustainablelevelofserviceyettobecarriedout.
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3.5 Technical Levels of Service
Technicallevelsofservice-supportingthecommunityservicelevelsareoperationalortechnicalmeasuresofperformance.Thesetechnicalmeasuresrelatetotheallocationofresourcestoserviceactivitiesthattheorganisationundertakestobestachievethedesiredcommunityoutcomesanddemonstrateeffectiveorganisationalperformance.
Technicalservicemeasuresarelinkedtoannualbudgetscovering:
• Operations–theregularactivitiestoprovideservicessuchasopeninghours,cleansing,mowinggrass,energy,inspections;
• Maintenance–theactivitiesnecessarytoretainanassetasnearaspracticabletoanappropriateservicecondition(e.g.roadpatching,unsealedroadgrading,buildingandstructurerepairs);
• Renewal–theactivitiesthatreturntheservicecapabilityofanassetuptothatwhichithadoriginally(e.g.frequencyandcostofroadresurfacingandpavementreconstruction,pipelinereplacement,andbuildingcomponentreplacement);and
• Upgrade–theactivitiestoprovideahigherlevelofservice(e.g.wideningaroad,sealinganunsealedroad,replacingapipelinewithalargersize)oranewservicethatdidnotexistpreviously(e.g.anewlibrary).
ServiceandAMPlan,implementandcontroltechnicalservicelevelstoinfluencethecustomerservicelevels.4
Table3.5showsthetechnicallevelofserviceexpectedtobeprovidedunderthisAMPlan.TheagreedsustainablepositioninthetabledocumentsthepositionagreedbytheCouncil/Boardfollowingcommunityconsultationandtrade-offofservicelevelsperformance,costs,andriskwithinresourcesavailableintheLTFP.
Table 3.5: Technical Levels of Service
Service attribute
Service objective Activity measure process
Current performance *
Desired for optimum lifecycle cost **
Agreed sustainable position ***
TECHNICALLEVELSOFSERVICE
Operations Stormwaterinletpitsarefreeofsedimentanddebris.
Reviewofperformanceofinletpitcleaningprogramreports.
Notcurrentlymeasured.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
Grosspollutanttrapsareemptiedatoptimumfrequency.
Reportedcleaningfrequencyandmassofmaterialremoved
Cleaningfrequencybelowscheduledmaintenanceprogramfrequency.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
MaximiseoperatingtimesofTorrensLakewatermixersoverthesummerperiod.
Reportedoperationaltimesforall17TorrensLakewatermixers.
Currentlymeetsperformancerequirements.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
Budget$487,203year.
4.IPWEA,2011,IIMM,p2.22
Note:*Currentactivitiesandcosts(currentlyfunded).**Desiredactivitiesandcoststosustaincurrentservicelevelsandachieveminimumlifecyclecosts(notcurrentlyfunded).***Activitiesandcostscommunicatedandagreedwiththecommunityasbeingsustainable(fundedpositionfollowingtrade-offs,managingrisks,anddelivering
agreedservicelevels).
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Table 3.5: Technical Levels of Service continued
Service attribute
Service objective Activity measure process
Current performance *
Desired for optimum lifecycle cost **
Agreed sustainable position ***
TECHNICALLEVELSOFSERVICE
Maintenance InspectionandmaintenanceofwaterinfrastructureassetsisundertakenasperMaintenancePlan.
Reviewofperformancewaterinfrastructureinspectionandmaintenanceprogramreports.
Notcurrentlymeasured.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
TorrensLakewaterbodyismanagedtomeetadequatewaterqualityandwaterlevels,minimisesedimentandpollutantstopreservefloraandfauna,andsuitabilityforsecondaryrecreationaluses.
TorrensLakeWeircontrolsystemandelectricalsystemweekly,monthly,andquarterlyinspectionandmaintenanceiscarriedout.
TorrensLakewaterqualitylevelsaresuitableforrecreationalsecondarycontact.
TorrensLakeWeircontrolsystemandelectricalsystemmaintenanceprogramisimplemented.
TorrensLakewaterqualitydoesnotmeetminimumstandardsduringsomeperiodsoverthesummermonths.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
Budget$307,759year.
Renewal Renewalofassetsisundertakenattheoptimaltimeinthelifecycle.
AssetsarerenewedwhenrequiredundertheLTFP.
Notcurrentlymeasured.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
Renewalassetsaredeliveredefficientlyandfitforpurpose.
Projecthandovercostsarewithin15%ofprojectedassetrenewalcostsintheLTFP.
80%ofprojectscompletedoverthelast5years-doesnotmeetperformancestandard.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
Budget$1,444,000year.
Upgrade/new
Newassetsaredeliveredefficientlyandfitforpurpose.
Projecthandovercostsarewithin15%ofprojectedassetrenewalcostsintheLTFP.
20%ofprojectsoverthelast5years-doesnotmeetperformancestandard.
Assessmenthasnotbeencarriedout.
Assessmenthasnotbeencarriedout.
Budget$797,000year.
Note:*Currentactivitiesandcosts(currentlyfunded).v**Desiredactivitiesandcoststosustaincurrentservicelevelsandachieveminimumlifecyclecosts(notcurrentlyfunded).***Activitiesandcostscommunicatedandagreedwiththecommunityasbeingsustainable(fundedpositionfollowingtrade-offs,
managingrisks,anddeliveringagreedservicelevels).
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4.1 Demand Drivers
Driversaffectingdemandincludepopulationchange,changesindemographics,seasonalfactors,vehicleownershiprates,consumerpreferencesandexpectations,technologicalchanges,economicfactors,agriculturalpractices,andenvironmentalawareness.
4.2 Demand Forecast
ThepresentpositionandprojectionsfordemanddriversthatmayimpactfutureservicedeliveryandutilisationofassetswereidentifiedandaredocumentedinTable4.3.
4.3 Demand Impact on Assets
TheimpactofdemanddriversthatmayaffectfutureservicedeliveryandutilisationofassetsareshowninTable4.3.FurtherresearchwillberequiredtodeterminethefullimpactofthesedemanddriversontheservicesdeliveredbywaterinfrastructureassetsandthisworkwillbeundertakenduringthenextrevisionofthisAMPlan.
Table 4.3: Demand Drivers, Projections, and Impact on Services
Demand drivers Present position Projection Impact on services
Populationgrowth 22,750persons. 38,300persons(2034). LittleimpactonCouncil’sexistinglevelsofserviceforstormwatermanagementhowevergreaterdemandonprovidingservicesaroundwatersensitiveurbandesignandenvironmentalinitiatives.IncreaseddemandonParkLandsfacilitieswillrequiresomeareasoftheParkLandswhichdonotmeetCouncil’s10-yearARIminorstormtobeprovidedwithadditionalinfrastructure.
Infilldevelopment HighdensitycommercialandresidentialdevelopmentthroughouttheCentralBusinessDistrictwithmediumdensitydevelopmentinNorthAdelaide.
SignificantincreaseinhighdensityresidentialdevelopmentinthecentralbusinessdistrictandNorthAdelaidetoaccommodatepopulationandresidentialdwellingdensitygrowthtargets.Whilethiswillresultinincreasedoverallstormwaterrun-offvolumesandflowrates,itwillbeoffsetbyotherCouncilinitiativessuchasconstructionofgreenspace.
LittleimpactofCouncil’sstormwaterinfrastructurewhichhasbeendesignedforanassumedhighlevelofrun-off.Togetherwithinfilldevelopmentinupstreamcatchmentareas,willresultinincreasedflowsinreceivingwatercoursesincreasingerosionanddamagetohabitats.
4. FUTURE DEMAND
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Table 4.3: Demand Drivers, Projections, and Impact on Services continued
Demand drivers Present position Projection Impact on services
Environmentalinitiatives FocusoninterceptionofgrosspollutantsandsedimentsintheRiverTorrens,watercoursesandotherwaterbodies.Managementofwaterqualityriskthroughaccessibilitycontrols.
CommunityfocusonimprovedwaterqualityinCouncil’swaterstoragesandwatercoursesthroughimplementationofwaterqualityinitiativestoimprovethequalityofwaterinwaterstoragesandwatercoursesbothatsourceandin-linetreatment.ImplementationofnumerouswaterqualityinitiativesforTorrensLake.GrosspollutantinterceptiononstormwaterdrainsdischargingtothePatawalongaCatchment.
Provisionofnewinfrastructureandmonitoring/treatmentprocessestoachievewaterqualitytargetsinwaterstoragesandwatercourseswhichmeetcommunitydemandincludingconstructionofwetlands.Supporttheimplementationofgreeninfrastructurethroughwatersensitiveurbandesigninitiativesinroadsandopenspace.
Catchmentwidefloodmitigationinitiatives
SignificantnumberofpropertiesandinfrastructureatriskoffloodingintheFirsttoFifthCreeks,BrownHillCreek,andKeswickCreekcatchmentsincludingareasoftheSouthandEastParkLands.
Workwithothercatchmentcouncilstoimplementcatchmentwidefloodmitigationinitiatives.ImplementationwillincludethestructuralworksintheCitiesofAdelaide,Campbelltown,Burnside,Norwood/Payneham/StPeters,Mitcham,Unley,andWestTorrens.
TemporaryfloodstoragesaretobeconstructedintheSouthParkLandstomitigatethecontributionofonein100yearARIflowsinParkLandsCreektotheKeswickCreekdownstreamwatercourse.
RiverbankPrecinct CompletionofAdelaideOvalredevelopment,RiverTorrenspedestrianbridgeandcommencementoftheAdelaideConventionCentreexpansion,SAHMRIbuilding,andthenewRoyalAdelaideHospital.MorethanonemillionpeopleattendedfootballgamesatAdelaideOvalduring2014.
SignificantinvestmentintheRiverbankprecinctwithredevelopmentoftheAdelaideFestivalCentreprecinct,AdelaideCasinoexpansion,completionofAdelaideConventionCentre,RoyalAdelaideHospital,UniversityofAdelaideMedicalSchool,andUniversityofSouthAustraliaMedicalResearchfacilities.
SignificantincreaseindemandforrecreationalopportunitiesalongtheRiverTorrenscorridorandhighwaterqualityinTorrensLake.DemandwilldriveincreasedservicesinservicesprovidedbyRiverTorrensinfrastructureandenvironmentalinfrastructure(waterquality).
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Table 4.3: Demand Drivers, Projections, and Impact on Services continued
Demand drivers Present position Projection Impact on services
Environmentalsustainability CouncilcurrentlyreusesstormwatertoirrigatesignificantareasoftheParkLandsunderamultipleextraction,410MLwaterlicensefromtheWesternMountLoftyRangesprescribedwatercourses.ThereareasmallnumberofwatersensitiveurbandesignfacilitiesincityroadsandParkLands.
Community and SA Strategic Plan/30-year Plan for Greater AdelaidedemandsforgreaterreuseofstormwaterandwastewaterintheCouncilarea.WorkjointlywiththeStateGovernmenttorestoredepletedwaterresourcessuchasgroundwaterresourcesbeneaththeAdelaidePlains.
Provisionofnewinfrastructuretocapture,treatandreusecollectedstormwaterandwastewater.Developpartnershipswithwaterusersinthecommunitytojointlyexploitwaterreuseopportunities.
Climatechange Waterinfrastructurecurrentlydesignedforhistoricalrainfallregimeandenvironmentsincludingdesignofstormwatermanagementsystemandpollutantinterceptioninfrastructure.
Climatechangewillimpacttheperformanceofexistinginfrastructureinmanagingservicelevelsassociatedwithdecreasedrainfalleventfrequencyandoverallstormwaterrun-offvolumesandhigherstormwaterrun-offflowrates.GreaterdemandforgreeninfrastructureinthePublicRealmtoaddresshigheraveragetemperaturesandtheheatislandeffectsoncitystreetsandopenspaces.
Higherstormwaterrun-offflowswillreducecurrentlevelsofservicewithrespecttofloodprotectionandaccessibilityduringminorandmajorrainfallevents.Greaterdemandforwatersensitiveurbandesigninfrastructuretoprovideirrigationwatertogreeninfrastructure.
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4.4 Demand Management Plan
Demandfornewserviceswillbemanagedthroughacombinationofmanagingexistingassets,upgradingofexistingassets,andprovidingnewassetstomeetdemandanddemandmanagement.Demandmanagementpracticesincludenon-assetsolutions,mitigatingrisks,andmanagingfailures.
Non-assetsolutionsfocusonprovidingtherequiredservicewithouttheneedfortheorganisationtoowntheassetsandmanagementactionsincludingreducingdemandfortheservice,reducingthelevelofservice(allowingsomeassetstodeterioratebeyondcurrentservicelevels)oreducatingcustomerstoacceptappropriateassetfailures5.Examplesofnon-assetsolutionsincludeprovidingservicesfromexistinginfrastructuresuchasaquaticcentresandlibrariesthatmaybeinanothercommunityareaorpublictoiletsprovidedincommercialpremises.
OpportunitiesidentifiedtodatefordemandmanagementareshowninTable4.4.FurtheropportunitieswillbedevelopedinfuturerevisionsofthisAMPlan.
Table 4.4: Demand Management Plan Summary
Demand driver Impact on services Demand Management Plan
Populationnumbers Increasedresidentialandvisitornumberstothecityrequirehigherstormwaterdrainagenetworklevelsofserviceinsomeareas.
AreasoftheParkLandswillbesubjectedtohigherusagefromresidentsandvisitorstothecityrequiringhigherlevelsofprotectionfromfloodingduringminorandmajorrainfallevents.
Customerpreferences DemandforhigherlevelsofserviceintheareasofenvironmentandamenityofRiverTorrensandwatercourseassets,waterconservation,andwatersensitiveurbandesign(RiverbankPrecinct).
ImprovedwaterqualitylevelsinTorrensLakeparticularlyduringthesummerperiodutilisingdilutionflows,algaecidetreatment,andmacrophytereplanting.GreaterreuseofstormwaterincludingmanagedaquiferrechargeschemesandgreateruseofTorrensLakewaterduringthewintermonths.Watersensitiveurbandesigninitiativesincitystreetsandopenspacestopassiveirrigationtolandscapedareas.
Governmentpolicy Emphasisplacedonwaterquality,integratedstormwatermanagementplans,reuseofstormwaterandwastewater,andimplementationofwatersensitiveurbandesign.
Implementationofcatchmentwidefloodprotectioninitiatives(Brown Hill Keswick Creek Stormwater Management PlanandEastern Region Stormwater Management Plan).PartnerwithFederalandStateGovernmenttodeliverwatersensitiveurbandesignandstormwaterreuseoutcomes.
Weatherpatterns/climatechange
Lessfrequentrainfalleventshowevergreaterprevalenceofhighintensityrainfallevents.
Higherlevelsoffloodprotectionwillberequiredatcriticalareasofthecity.Greateremphasisonwatersensitiveurbandesignprovidingpassiveirrigationtolandscapedareas.
Developmentintensity SomeareasofhighdensityresidentialdevelopmentwithinthecityandNorthAdelaidewillincreasedemandonopenspace.
Higherlevelsofservicewillberequiredforpublicsafety,amenity,andenvironmentalstandardsprovidedbyRiverTorrensandwatercourseassetsintheParkLands.Implementationofcatchmentwidefloodprotectioninitiatives(Brown Hill Keswick Creek Stormwater Management PlanandEastern Region Stormwater Management Plan).
5.IPWEA,2011,IIMM,Table3.4.1,p3|58.
Water Infrastructure Asset Management Plan32
4.5 Asset Programs to meet Demand
Thenewassetsrequiredtomeetgrowthwillbeacquiredfreeofcostfromlanddevelopmentsandconstructed/acquiredbytheorganisation.Newassetsconstructed/acquiredbytheorganisationarediscussedinSection5.5.ThecumulativevalueofnewcontributedandconstructedassetvaluesaresummarisedinFigure1Ato1C.
Figure 1A: Upgrade and New Assets to meet Demand – Stormwater Drainage Network
NewassetsrequiredforCouncil’sstormwaterdrainagenetworkinfrastructurealloccurinYear1andYear2oftheplanandinvolvetheprovisionundergroundstormwaterinfrastructure(inletpits,pipesandmanholes)inJeffcottStreet,NorthAdelaideandtheopenspaceareasofCouncil’sERGOResidentialDevelopmentinFrewStreetandSturtStreettoprovidetherequiredlevelofserviceforfloodprotectionandaccessibilityduringminorandmajorrainfallevents.
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Figure 1B: Upgrade and New Assets to meet Demand – River Torrens and Watercourses
ThenewassetsrequiredforCouncil’sRiverTorrensandwatercourseassetsalloccurinthefirst10yearsoftheplanaspartofthetemporarywaterstoragestobeconstructedintheSouthParkLandsaspartofthestructuralcomponentsoftheBrown Hill Keswick Creek Stormwater Management Plan 2012.TemporaryfloodstoragesintheSouthParkLandsareproposedinPark16andPark20.
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Figure 1C: Upgrade and New Assets to meet Demand – Environmental and Wastewater
ThenewassetsrequiredforCouncil’senvironmentalandwastewaterinfrastructureassetspredominantlyoccurinfirst10yearswiththeconstructionoftheVictoriaParkWetlandinPark16aspartoftheVictoria Park Master PlanandassociatedstructuralcomponentoftheBrown Hill Keswick Creek Stormwater Management Plan 2012.Eachyearofthe20-yearplanincludesconstructionofnewwatersensitiveurbandesigninfrastructureandtheplanalsoincludesconstructionofnewgrosspollutanttrapsonstormwaterdrainsinthesouthofthecity.
Acquiringthesenewassetswillcommittheorganisationtofundongoingoperations,maintenance,andrenewalcostsfortheperiodthattheserviceprovidedfromtheassetsisrequired.Operationsandmaintenancecostswillincreaseonaverageby$65,000perannumoverthenext10years.Thesefuturecostsareidentifiedandconsideredindevelopingforecastsoffutureoperations,maintenance,andrenewalcostsinSection5.
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Water Infrastructure Asset Management Plan 35
5. LIFECYCLE MANAGEMENT PLAN
Thelifecyclemanagementplandetailshowtheorganisationplanstomanageandoperatetheassetsattheagreedlevelsofservice(definedinSection3)whileoptimisinglifecyclecosts.
5.1 Background Data
5.1.1 Physical parameters
TheassetscoveredbythisAMPlanareshowninTable2.1.
Council’sWaterInfrastructureAssetClasscontainsadiversecollectionofwaterrelatedinfrastructureassetsprovidingawiderangeofservicesovertheentireCouncilarea.Takingintoaccounteconomiclife,condition,capacity,age,function,purpose,andassetconsumptionrates,theseassetsarebestmanagedinthreedistinctassetgroups:stormwaterdrainagenetwork,RiverTorrensandwatercourseassets,andenvironmentalandwastewaterinfrastructure.
Thelargestgroupbytotalassetreplacementcost(73%)isthestormwaterdrainagenetworkwhichconsistsofanetworkofundergroundpipes,interceptionpits,inspectionmanholes,andjunctions.ThestormwaternetworkservicesalmostallstreetsandlanewaysinAdelaideandNorthAdelaideaswellassomeareasoftheParkLandsandtogetherwithstreetkerbandgutter,providesfloodprotectiontopropertiesduringmajorrainfalleventsandaccessiblestreetsandfootpathsduringminorrainfallevents.Stormwaterdrainagenetworkassetsgenerallyhaveeconomiclivesinexcessof120years,areonaverageinfairconditionacrosstheageprofile,andprovidingadequatelevelofservice.
TheRiverTorrensandwatercourseassetgroupareagroupofwaterbodieslocatedexclusivelyintheParkLandsandmakeup23%ofthetotalreplacementcostforwaterinfrastructureassets.Thisgroupprovidesearthlinedandstone/concretelinedwatercoursesandtemporarywaterstoragesthroughtheParkLandswhicharesafe,accessible,andsupportnaturalecosystemsandpromotebiodiversity.ThegroupalsocontainstheTorrensLakewaterbody’sandtheirsystemsofweirs,boatlandings,andearthretainingstructureswhichprovideaccessiblewater-bodieswithwaterqualityfitforsecondaryrecreationalcontactanduse.Theinfrastructureassetscontainedinthegrouphavesimilarassetlivesof100yearsforweirsandchannels,howeverearthretainingstructuresinTorrensLakehaveaneconomiclifeoflessthan50years.
Thethirdcategoryofassetsaretheenvironmentalandwastewaterinfrastructuregroupwhichcompriseofadiversegroupofassetscontributingtoonly4%ofthetotalWaterInfrastructureAssetClassreplacementcost.Thisgroupofassetstypicallyhaveshorteconomiclivesorcontaincomponentswithshorteconomiclives.TheassetsincludewastewaterinfrastructureintheParkLandstosupportthestagingofeventswiththeremainderofthegroupconsistingofequipmentandfacilitiesprovidingwaterqualityimprovementsorassociatedwiththesustainableuseofwater.Assetsincludegrosspollutanttraps,biologicalfiltrationplant,watermixersandaerators,biologicalretentionbasins,sedimentationbasins,wetlands,floatingislands,watermonitoringequipment,andwatersensitiveurbandesignfacilities.ThegroupprovideswaterqualityimprovementservicestowaterbodiesintheParkLandsandexternalreceivingwatersandsustainablereuseofstormwaterandwastewaterinaccordancewithprescribedwatermanagementplansforgroundandsurfacewaterthroughAdelaide.
Water Infrastructure Asset Management Plan36
TheageprofileoftheassetsincludeinthisAMPlanisshowninFigures2Ato2C.Ageprofileshavebeendevelopedfromactualacquisitiondatesfromallassetgroups.
Figure 2A: Asset Age Profile – Stormwater Drainage Network
TheageprofileshowninFigure2Aindicatesthattheplannedinstallationstormwaterdrainagenetworkcommencedinthemid1920’safteramajorfloodinundatedAdelaide,withconstructioncurtailedduringtheGreatDepressionsandWarYearsduetolackofresourcesandmaterials.Themajorityofthenetworkwasconstructedbetween1953and1983.
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Figure 2B: Asset Age Profile – River Torrens and Watercourses
TheageprofileshowninFigure2Bindicatesthatasignificantproportionoftheassetgroupwasconstructedpriorto1928whichincludedTorrensLakeWeirandParkLandswatercourses.TheinstallationofearthretainingstructuresinTorrensLakecommencedinthelate1950’sandcontinueduntiltheearly1990’sanditisthisgroupofassetswhichmustbemanagedcarefullyinthefuture.Thesignificantassetacquisitionsof1992and1999aretemporarywaterstoragesintheWesternParkLands.
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Figure 2C: Asset Age Profile – Environmental and Wastewater
TheageprofileshowninFigure2Cindicatesthatthemajorityofassetsinthisgroupwereacquiredinthelast20yearswithmorethan50%oftheassetsacquiredinthelastsixyears.Manyoftheseassetsandcomponentshaveeconomiclivesoflessthan10yearsthereforemanysecondandthirdgenerationassetswillberenewedintheLTFP.ThemajorityofnewservicesfortheWaterInfrastructureAssetClasssuchaswetlands,watersensitiveurbandesignfacilities,grosspollutanttraps,andwaterqualitytreatmentequipmentwillbemanagedwithinthisgroup.
Plansshowingthewaterinfrastructureassetsare:
• Council’sGISLayerforstormwaterassetsshowingstormwaterdrainagenetworkinfrastructureincludinginlets,manholes,nodes,andmains
• Council’sGISLayerforstormwaterassetsshowingRiverTorrensandwatercoursesassetinfrastructureincludingchannels,storagebasins,stormwatermiscellaneous(watermixers,grosspollutanttraps)
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5.1.2 Asset capacity and performance
TheCouncil’sservicesaregenerallyprovidedtomeetdesignstandardswheretheseareavailable.
LocationswheredeficienciesinserviceperformanceareknownaredetailedinTable5.1.2.
Table 5.1.2: Known Service Performance Deficiencies
Location Service deficiency
TorrensLakewaterbody(TorrensLakeWeirtoAlbertBridge)
ExcessivelevelsofCyanobacteriaduringsummerandEscherichiaColiafterrainfalleventspreventaccesstotheTorrensLakewaterbodyforrecreationalandcommercialuse.
MelbourneStreetstormwaterdrain(LowpointadjacentNewlandsLane)
Undergrounddrainagenetworkhaslessthanonein10-yearARIcapacitycausingexcessivepondingontheroadwaysurfaceduringminorrainfallevents.
JeffcottStreetstormwaterdrainage(BartonTerracetoMontefioreHill)
Lackofstormwaterrun-offinterceptioninfrastructure(WardStreettoMontefioreHill)andliftedstonekerbandgutter(treeroots)resultinexcessivepondingofwaterintheJeffcottStreetroadcarriagewayduringminorrainfallevents.
ParkLandsCreek(Park16toPark20)
Existingcreekchannelhasinsufficientcapacitytoconveydesignflows,hasdeepverticalsidesatsomelocations,erosionhasunderminedtreerootsinPark16,17,and20,hasexposedservicestraversingthechannel,transportslargesedimentloadsandispronetoblockagebydebrisfromupstreamcatchmentsandtheParkLands.
BotanicCreek(Park15toPark13)
Existingcreekchannelhasinsufficientcapacitytoconveydesignflowstotheonein10-yearARIstandardandsedimentfromPark15andPark15continuestodepositinPark13andPark14.LargevisitornumberstotheseParksatvarioustimesoftheyearrequiresahigherleveloffloodprotectionparticularlyinPark13.
TorrensLakeWeir WeirgatesealscontinuetoleakwaterfromTorrensLakeduringthesummermonthsresultinginfallingwaterlevelsduringtimesoflittleinflowintoTorrensLakefromupstreamcatchments.
Theaboveservicedeficiencieswereidentifiedfromstormwatercatchmentanalysis(MelbourneStreetandJeffcottStreet)andfloodplainanalysis(BotanicCreek–First to Fifth Creeks Flood Plain Study,ParkLandsCreek–Brown Hill Keswick Creek Stormwater Management Plan).WaterqualityintheTorrensLakewaterbodyandleakageofwaterthroughtheTorrensLakeWeirgatesealswereidentifiedthroughnormaloperationoftheinfrastructure.
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5.1.3 Asset condition
ConditionismonitoredforthemostcriticalassetswithintheWaterInfrastructureAssetClasswhichareCouncil’sstormwaterdrainagenetwork,TorrensLakeweirs,andsomeenvironmentalequipmentwhichaccountsformorethan80%oftotalwaterinfrastructurereplacementcosts.Council’sstormwaterdrainagenetworkassetsareinspectedbyCCTVusingConduit Inspection Reporting Code of Australia WSA 05-2013underIPWEA-NAMS.AU Practice Note 5 – Stormwater Drainage.TorrensLakeWeirhasweekly,monthly,andquarterlyconditionassessmentsaswellasrealtimediagnosticsmonitoringthehealthofwaterlevelmonitoringsensorsandgatemovementsensorsandproximityswitches.
Conditionassessmentofstormwaterdrainagenetworkassetswasundertakenin2014.TheassessmentinvolvedCCTVvideoinspectionofmorethan35kmofstormwatermainsidentifyingandinventoryofdefectsanddeterminingaserviceabilityandstructuralconditionindexscoreforeachsegmentofstormwatermain.Alargesampleoftrunkmainswereinspectedwhichwererepresentativeoftheageprofileoftheassetclass.Around75%ofthenetworkwasfoundtohaveConditionGrade3undertheConduit Inspection Reporting Code WSA 05-2013withtheremaininginfrastructureequallygradedatConditionGrade2andConditionGrade4.TheconditionassessmentfoundthatnewstormwaterdrainagenetworkinfrastructureconditiondeclinesfromConditionGrade1throughtoConditionGrade3fairlyquicklyandoperatesforthemajorityofitslifecycleatConditionGrade3beforerapidlydepreciatingtoConditionGrade4andConditionGrade5.
TheconditionoftheremainingenvironmentalandwastewaterinfrastructureandRiverTorrensandwatercourseassetshavebeencalculatedusingstraightlinedepreciationbasedonAssetAge.ItisproposedthatwatercoursechannelsandTorrensLakesubmergedearthretainingstructureswillundergoconditionassessmentaspartofthisAMPlan.
Conditionismeasuredusingaonetofivegradingsystem6asdetailedinTable5.1.3.
Table 5.1.3: Simple Condition Grading Model
Condition grading Description of condition
1 Very Good:onlyplannedmaintenancerequired.
2 Good:minormaintenancerequiredplusplannedmaintenance.
3 Fair:reactivemaintenanceplusplannedmaintenancerequired.
4 Poor:significantrenewal/rehabilitationrequired.
5 Very Poor:physicallyunsoundand/orbeyondrehabilitation.
6.IPWEA,2011,IIMM,Sec2.5.4,p2|79.
Water Infrastructure Asset Management Plan 41
TheconditionprofileofourassetsisshowninFigures3Ato3C.
Fig 3A: Asset Condition Profile – Stormwater Drainage Network
Fig 3B: Asset Condition Profile – River Torrens and Watercourses
ThemajorityofConditionRatingforRiverTorrensandwatercourseassetsareinConditionGrade3toConditionGrade5withthelargestgroupofassetsbyreplacementcost(34%)havingConditionGrade5.Graph3BreflectstheverypoorconditionofwatercoursesobservedintheParkLands,particularlythesouthParkLands,andtheuncertaintyoftheconditionofthesubmergedearthretainingstructuresinTorrensLake,manyofwhich,basedonage,areapproachingtheendoftheireconomiclives.AlthoughtheconditionoftheseassetshavebeeninterpretedasConditionGrade5,theassetsarestillperformingtheirprimaryfunctionandtheconditionratingismoreatriggerforundertakingathoroughconditionassessmentoftheseassetsduring2015.IftheconditionassessmentreflectstheageprofilethentheconditionprofileindicatessignificantinvestmentinrenewalofRiverTorrensandwatercourseassetsoverthenextfewyears.
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Fig 3C: Asset Condition Profile – Environmental and Wastewater
TheconditionprofileforenvironmentalandwastewaterinfrastructureisalmosttheinverseoftheprofileforRiverTorrensandwatercourseswiththemajorityoftheseassets(70%)havingConditionGrade1orConditionGrade2,reflectingthatalargeproportionofthisassetgrouphasbeenacquiredoverthelastsixyears.MostoftheseassetsortheircomponentshaveveryshortusefullivesincomparisonwiththeremainderoftheWaterInfrastructureAssetClassthereforethisconditionprofilewillrapidlychangeoverthenext10years.Indeed,thisassetgroupwillrequiresignificantongoingrenewalexpendituredespitethatamajorityofassetsareinverygoodconditionasmanyofthecomponentswillberenewedtwiceovertheLTFPduetoshorteconomiclives.
5.1.4 Asset valuations
Thevalueofassetsrecordedintheassetregisterasat30June2014coveredbythisAMPlanisshownbelow.AssetswerelastrevaluedatJune2014basedonunitratesforlinearandpointassetswithspecialisedfacilitiessuchasWeirsvaluedseparately.AssetsarevaluedatFairValueatcosttoreplaceservicecapacitybasedonbrownfieldreplacementcosts.
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ValuationdatafortheWaterInfrastructureAssetClassisshowninthetablebelowforthethreeassetgroups.
Valuation information Stormwater drainage network
River Torrens and watercourse assets
Environmental and wastewater infrastructure
TOTAL
Currentreplacementcost $92,700,000 $29,800,000 $4,660,000 $127,100,000
Depreciableamount $92,700,000 $29,800,000 $4,660,000 $127,100,000
Depreciatedreplacementcost7 $49,000,000 $10,000,000 $3,160,000 $62,300,000
Annualdepreciationexpense $760,000 $490,000 $250,000 $1,500,000
UsefullivesforthisassetgroupwereupdatedinSeptember2014bytheAssetSystemsTeamwithlittleinputorconsultationwiththerelevantAssetManagers.UsefullivesforthisassetgroupwerelastupdatedinFebruary2007,withthesevenandahalfyearperiodbetweenvaluationsduetoorganisationalchangeandalternativeleadershipdirection.ItisproposedtoupdateunitratesandvaluationsonatwotothreeyearfrequencyaspartofthisAMPlan.
Keyassumptionsmadeinpreparingthevaluationswere:
• Valuationshavebeenbasedontheassumptionthattherewaslittlechangeinunitratesbetween2007and2014;
• ValuationsofcriticalassetsfortheRiverTorrensandwatercoursessuchasWeirsandsubmergedearthretainingarebasedonapplicationofafinancialinflationaryindexabovethe2007valuationsforthoseassets;and
• Informationonactualprojecthandovercostsandprojectfeasibilityestimateswerenotusedinderivingthesevaluationsduetooperationalconstraints.
Thereappearstobeonlysmallchangesinvaluationsbetween2007valuesandthe2014valuations.Comparisonsbetweenactualprojecthandovercostsforsimilarassets(stormwaterpipes,inletpits,manholes,grosspollutanttraps,andwatercourses)between2009and2014andtheproposed2014valuationsindicatethatthe2014valuationsareunlikelytopredictfairvaluereplacementcosts.Furthermore,anumberofwaterinfrastructurerenewalprojectsoverthelasttwoyearsplannedwithbudgetsderivedbyindexed2007valuationshavebeenshowntobeshortoffundswhenpreconstructionestimatesandmarkettenderquotationsarereceived.RenewalcostsinthefirstthreeyearsoftheLTFPinthisdocumenthavebeeninflatedtoclosermatchtruereplacementcosts.
Itisproposedtoundertakeareviewofvaluationsandunitratesusedtodeterminewaterinfrastructureassetvaluationsin2016-17.
Variousratiosofassetconsumptionandexpenditurehavebeenpreparedtohelpguideandgaugeassetmanagementperformanceandtrendsovertime.
7AlsoreportedasWrittenDownCurrentReplacementCost(WDCRC).
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ValueStormwater
drainage networkRiver Torrens and
watercoursesEnvironmental and
wastewaterTOTAL
Asset Class
Rateofannualassetconsumption(depreciation/depreciableamount)
0.83% 1.7% 5.3% 1.2%
Rateofannualassetrenewal(capitalrenewalexpenditure/depreciableamount)
0.03% 2.8% 4.1% 0.83%
Rateofannualassetupgrade 0.04% 0.39% 6.8% 0.37%
Rateofassetupgrade(includingcontributedassets)
0.04% 0.39% 6.8% 0.37%
Assetrenewalsaspercentageofannualconsumption
3.23% 169% 76.4% 69.6%
Percentageincreaseinassetstock
0.04% 0.39% 6.8% 0.37%
In2015theorganisationplanstorenewoverallwaterinfrastructureassetsat69.6%oftheratetheyarebeingconsumedandwillbeincreasingitsassetstockby0.37%intheyear.Howeveritisimportantnotethattherateofrenewaliswellbelow100%duetoaverysmallamountofrenewalsrequiredwithinthestormwaterdrainagenetworkgroupduetoafavourableconditionassessmentwhichresultedinanextensionofusefullifeanddelayofrenewalsbeyondthe20-yearLTFP.Indeed,theassetrenewalsaspercentageofconsumptionisonly3.23%forthestormwaterdrainagenetworkwhichhasbyfarthelargestdepreciablevalue.Thiscalculationhighlightsthefallibilityofthisindicatorandreflectsanassetgroupinverygoodconditionwithlittlerenewalexpenditurerequiredintheimmediatefuturethereforethelevelofrequiredexpenditurefallswellshortoftheannualdepreciationcharge.AssetrenewalsaspercentageofconsumptionisverymuchdrivenbyRiverTorrensandWatercourseAssetClasswitharateof169%.Thiscalculationhighlightsthefallibilityofthisindicatorandreflectsanassetgroupinpoorconditionwithsignificantrenewalexpenditurerequiredintheimmediatefuturethereforethelevelofrequiredexpendituregreatlyexceedstheannualdepreciationcharge.
Thepercentageincreaseinassetstockduetodemandfornewservices(0.37%)isquitelowoverallandreflectsaverysmallgrowth(0.04%)instormwaterdrainagenetworkassets,thelargestproportionofthetotalassetclassbydepreciablevalue.Thegrowthgrateisverymuchdrivenbyincreasesinenvironmentalandwastewaterinfrastructuregroupassets(6.5%)reflectingdemandfornewservicesintheareasofwaterquality,watersensitiveurbandesign,andsupportforenvironmentalrebuildingandsustainability.
5.1.5 Historical Data
AdelaideCityCouncil,Australia’soldestLocalGovernmentorganisation,hasbeenanexemplaryrecorderofinformationandinparticular,historicalinformationontheacquisitionofinfrastructureassets.Thisinformationincludesfeasibilityassessments,designcalculations,drawings,andconstructionrecords.Theinformationisavailableinelectronicandpaperrecordsindexedunderassetcategory.Forwaterinfrastructureassets,thisinformationcommencesinthe1880’swiththeconstructionoftheoriginalTorrensLakesteppedweirhowevermostofthehistoricalinformationdatesbacktothe1910’s.
Councilcreateditsfirstassetregisterswithgeographicalattributesinthemid1990’sasarequirementofAustralian Accounting Standard 27whereassetattributeswererecordedelectronicallyforthefirsttimewithunitrates,usefullives,andestimatedremaininglivesappliedtoassetcomponentstodeterminefairvalue,consumptionrates,andthedepreciatedvalueofCouncil’sassetclass.TheseoriginalassetregistershaveevolvedintotheregistersinformingtheNAMSRegistertoday.Valuationsofwaterinfrastructureassetshavebeenupdatedin1997,2002,2007,andmorerecentlyin2014.
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CapitalrenewalhandoverinformationhasalsobeenrecordedbyCounciloverthelast17yearsandprovidesthebasisforassetregisterupgrade(acquisitionsanddisposals),reviewofunitratesandvaluations,andfinancialreconciliationwithCouncil’scapitalworksbudget.Assetcomponentcosthandoverisanimportantsourceofinformationastheyprovidecurrentunitratesandassetvaluationsthatcanbebenchmarkedwiththoseofthelastvaluationandofwhichwereusedtosettheprojectbudgetandtheycanrecordhistoricalactualconstructioncostsforassetswhicharedifficulttovalue.
WhileCouncilretainsexcellenthistoricalrecordsincapitalrenewalprojectsoverthelast100years,thesamecannotbesaidaboutoperationalandmaintenancecosts.MaintenanceandoperationalcostshaveonlyrecentlybeenrecordedforassetcategoryandassetlocationsmakingitextremelydifficultforAssetManagerstoquantifythemaintenancecostcomponentofassetlifecyclecostsandinturn,predicttheoptimalrenewaltimeforinfrastructureassets.ImprovementsinrecordingandallocationofmaintenancecostsforwaterinfrastructureassetswillformacriticalpartoftheAssetManagementImprovementPlanmovingforward.
CouncilhasmanagedwaterinfrastructureassetsunderIIMMAMplansforthelast16years.TheinfrastructurehasbeenmanagedunderpreviousAMplanscompiledin1998,2000,and2008.
5.2 Infrastructure Risk Management Plan
Anassessmentofrisks8associatedwithservicedeliveryfrominfrastructureassetshasidentifiedcriticalrisksthatwillresultinlossorreductioninservicefrominfrastructureassetsora‘financialshock’totheorganisation.Theriskassessmentprocessidentifiescrediblerisks,thelikelihoodoftheriskeventoccurring,theconsequencesshouldtheeventoccur,developsariskrating,evaluatestherisk,anddevelopsaRiskTreatmentPlanfornon-acceptablerisks.
Criticalrisks,beingthoseassessedas‘VeryHigh’-requiringimmediatecorrectiveactionand‘High’–requiringprioritisedcorrectiveactionidentifiedintheInfrastructure Risk Management Plan,togetherwiththeestimatedresidualriskaftertheselectedtreatmentplanisoperationalaresummarisedinTable5.2.TheserisksarereportedtomanagementandCouncil/Board.
Table 5.2: Critical Risks and Treatment Plans
Service or asset at risk
What can happen Risk rating (VH, H)
Risk Treatment Plan Residual risk *
Treatment costs
TorrensLakeWeir StructuralstabilityfailureofTorrensLakeWeir–maximumprobableflood.
High IncreasethestabilityofWeirusingrockbolts.
Low $550,000
TorrensLakeWeir StructuralstabilityfailureofTorrensLakeWeir–Weirgatefailure.
High IncreasethestabilityofWeirusingrockbolts.
Low $550,000
TorrensLakeWeir LossofTorrensLakewaterbody–Weirgatefailure.
High ReprogramPLCandrewirecircuitbreakers.Implementinspection/testingprogram.
Medium $30,000
TorrensLake Contaminatedwater/waterbodyclosedtousers–Cyanobacteria.
VeryHigh DevelopandimplementsodiumpercarbonatemanagementplanforTorrensLake.
Medium $40,000
TorrensLake TorrensLakesedimentbuildup/obstructiontolakeusers.
High DevelopandimplementastrategicsedimentmanagementplanforTorrensLake.
Medium $490,000
Note*TheresidualriskistheriskremainingaftertheselectedRiskTreatmentPlanisoperational.
8.TRIMRef2014/186350Infrastructure Risk Management Plan–WaterInfrastructure
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5.3 Routine Operations and Maintenance Plan
Operationsincluderegularactivitiestoprovideservicessuchaspublichealth,safety,andamenity,e.g.cleansing,streetsweeping,operatingwatermixersinTorrensLake,andemptyingofpollutantsinterceptedinCouncil’ssuiteofgrosspollutanttraps.
Routinemaintenanceistheregularon-goingworkthatisnecessarytokeepassetsoperating,includinginstanceswhereportionsoftheassetfailandneedimmediaterepairtomaketheassetoperationalagain.Forexample,stormwatergratedinletpitsormanholepitsthatfailandrequirereplacement,orsealsonTorrensLakeweirgateswhichfailtoprovideadequateleakageprotection.
5.3.1 Operations and maintenance plan
Operationsactivitiesaffectservicelevelsincludingqualityandfunctionthroughcleaningofstormwaterinletpits,removalofcollectedpollutantsfromCouncil’ssuiteofgrosspollutanttrapsandoperationofwatermixers,waterqualityequipment,andthecontrolofwaterlevelinTorrensLake.
Maintenanceincludesallactionsnecessaryforretaininganassetasnearaspracticabletoanappropriateserviceconditionincludingregularongoingday-to-dayworknecessarytokeepassetsoperatingsuchasstormwaterinletpitgrates,manholecovers,defectsinpipesystems,servicingofwatermixerunits,calibrationofwaterqualitymonitoringequipment,andmaintenanceoftheWeirgatecontrolandelectricalsystems.Maintenancemaybeclassifiedintoreactive,planned,andspecificmaintenanceworkactivities.
Reactivemaintenanceisunplannedrepairworkcarriedoutinresponsetoservicerequestsandmanagement/supervisorydirections.
Plannedmaintenanceisrepairworkthatisidentifiedandmanagedthroughamaintenancemanagementsystem(MMS).MMSactivitiesincludeinspection,assessingtheconditionagainstfailure/breakdownexperience,prioritising,scheduling,actioningthework,andreportingwhatwasdonetodevelopamaintenancehistoryandimprovemaintenanceandservicedeliveryperformance.
Specificmaintenanceisreplacementofhighervaluecomponents/sub-componentsofassetsthatisundertakenonaregularcycleincludingservicingofwatermixerpumpsandmotors,androtationofWeirGatemotors.Thisworkfallsbelowthecapital/maintenancethresholdbutmayrequireaspecificbudgetallocation.
ActualpastmaintenanceexpenditureisshowninTable5.3.1.
Table 5.3.1: Maintenance Expenditure Trends
YearMaintenance expenditure
Planned and specific Unplanned
2012 $142,401 $74,608
2013 $150,945 $79,084
2014 $207,933 $99,827
Plannedmaintenanceworkiscurrently67.6%oftotalmaintenanceexpenditure.
Improvementsintheaccountingofmaintenanceexpenditureoverthelast12monthshaveresultedinamoreaccuratecalculationofmaintenancecostsduring2014whencomparedtothelevelsofexpenditurein2012and2013.Althougha33%increaseinexpenditurelevelsarereportedbetween2013and2014,the2014expenditureisamoreaccuratelevelofmaintenancetomeetexistinglevelsofservice.
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Maintenanceexpenditurelevelsareconsideredtobeadequatetomeetprojectedservicelevels,whichmaybelessthanorequaltocurrentservicelevelsbasedonexistinglevelofserviceKPIs.Wheremaintenanceexpenditurelevelsaresuchthatwillresultinalesserlevelofservice,theserviceconsequencesandserviceriskshavebeenidentified,andserviceconsequenceshighlightedinthisAMPlanandservicerisksconsideredintheInfrastructure Risk Management Plan.
ItisproposedthatreactivemaintenancewillbecarriedoutinaccordancewithresponselevelsofservicedetailedinAppendixAwhenagreementontheseservicelevelsarereachedwithPublicRealm.CurrentlevelsofservicearelikelybelowthesetargetsgiventheincreaseinreactivemaintenancerequiredtoCouncil’sstormwaterdrainagenetworkinparticular.
5.3.2 Operations and maintenance strategies
Theorganisationwilloperateandmaintainassetstoprovidethedefinedlevelofservicetoapprovedbudgetsinthemostcost-efficientmanner.Theoperationandmaintenanceactivitiesinclude:
• Schedulingoperationsactivitiestodeliverthedefinedlevelofserviceinthemostefficientmanner;
• Undertakingmaintenanceactivitiesthroughaplannedmaintenancesystemtoreducemaintenancecostsandimprovemaintenanceoutcomes.Undertakecost-benefitanalysistodeterminethemostcost-effectivesplitbetweenplannedandunplannedmaintenanceactivities(50–70%planneddesirableasmeasuredbycost);
• MaintainacurrentInfrastructureRiskRegisterforassetsandpresentservicerisksassociatedwithprovidingservicesfrominfrastructureassetsandreporting‘VeryHigh’and‘High’risksandresidualrisksaftertreatmenttomanagementandCouncil/Board;
• Reviewcurrentandrequiredskillsbaseandimplementworkforcetraininganddevelopmenttomeetrequiredoperationsandmaintenanceneeds;
• Reviewassetutilisationtoidentifyunder-utilisedassetsandappropriateremedies,andover-utilisedassetsandcustomerdemandmanagementoptions;
• Maintainacurrenthierarchyofcriticalassetsandrequiredoperationsandmaintenanceactivities;
• Developandregularlyreviewappropriateemergencyresponsecapability;and
• ReviewmanagementofoperationsandmaintenanceactivitiestoensureCouncilisobtainingbestvalueforresourcesused.
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5.3.2.1 Asset hierarchy
Anassethierarchyprovidesaframeworkforstructuringdatainaninformationsystemtoassistincollectionofdata,reportinginformation,andmakingdecisions.Thehierarchyincludestheassetclassandcomponentusedforassetplanningandfinancialreportingandservicelevelhierarchyusedforserviceplanninganddelivery.
Theorganisation’sservicehierarchyforwaterinfrastructureassetsisshownisTable5.3.2.
Table 5.3.2: Asset Service Hierarchy – Water Infrastructure Assets
Service hierarchy Service level objective
TorrensLake–Weir/waterlevel
RetainstaticwaterlevelinTorrensLakeAHD20.85±0.10matalltimes.
TorrensLake–Waterquality
MinimisenumberofdaysthattheTorrensLakewaterbodyisclosedforrecreationaluseduetopoorwaterquality.
TorrensLake–Earthretainingstructures
EnsuresubmergedearthretainingstructuresinTorrensLakearemaintainedandrenewedtoavoidstructuralfailureandbankcollapse.
Stormwaterdrainagenetwork–Surfaceflowpaths
Ensureallsurfaceflowpathsincityroadreserves,easements,andParkLandsareretainedandunobstructedandprovidemaximumfloodprotectiontoproperties.
Stormwaterdrainagenetwork–Trunkmains
Ensureallstormwatertrunkmainsareoperatingatgreaterthan80%capacitytominimisefloodingtopropertiesandobstructiontoroadusers.
ParkLandswatercourses Minimisetheoccurrenceofobstructionsinwatercourseswhichdivertingcreekflowsontoadjacentroadwaysandopenspace.
Stormwaterdetentionbasins EnsureCouncil’sstormwaterdetentionbasinsremainfullyoperationalatalltimes.
Stormwaterdrainagenetwork–Majorcatchmentlowpoints
Operatepipes,inletpits,andmanholesatminimum80%capacitytominimisefloodingofroadwaysandprovidemaximumprotectiontopropertiesadjacentlowpointswithsignificantupstreamcatchmentarea.
Stormwaterdrainagenetwork–ParkLandsroads
MinimisevehicleandbicycleobstructionsonParkLandsroadwaysduetofloodingcausedbyfailedstormwaterdrainageinfrastructure.
Pollutantmanagement OperateCouncil’ssuiteofgrosspollutanttrapstomaximisetheinterceptionoflitterandorganicmaterialfromreceivingwatercourses.
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5.3.2.2 Critical Assets
Criticalassetsarethoseassetswhichhaveahighconsequenceoffailurebutnotnecessarilyahighlikelihoodoffailure.Byidentifyingcriticalassetsandcriticalfailuremodes,organisationscantargetandrefineinvestigativeactivities,maintenanceplans,andcapitalexpenditureplansattheappropriatetime.
Operationsandmaintenancesactivitiesmaybetargetedtomitigatecriticalassetsfailureandmaintainservicelevels.Theseactivitiesmayincludeincreasedinspectionfrequency,highermaintenanceinterventionlevels.CriticalassetsfailuremodesandrequiredoperationsandmaintenanceactivitiesaredetailedinTable5.3.2.1.
Table 5.3.2.1: Critical Assets and Service Level Objectives
Critical assets Critical failure mode Operations and maintenance activities
TorrensLakeWeir FailureofWeirControlSystemtomaintainwaterlevelinTorrensLake.
EnsureTorrens Lake Weir Maintenance PlanisexecutedandWeircontrolsystemisoperatedinaccordancewithoperationalmanual.
TorrensLakeearthretainingstructures
StructuralfailureofsectionofretainingwallresultinginpartialcollapseofTorrensLakebank.
EnsureregularstructuralandconditioninspectionsareundertakenonallearthretainingstructuresinTorrensLakeandappropriatemaintenanceandrenewalactivitiesarecarriedout.
Stormwaterdetentionbasins
WestParkLands
Structuresfailtorestrictflowtodownstreamreceivingnetworks.
EnsureregularinspectionandmaintenanceofDetentionBasinstructuresandwatercontrolinfrastructure.
ParkLandsCreek
SouthParkLands
ObstructioninwatercourseorculvertsunderroadwaysdivertcreekflowontoadjacentParkLandsandroadways.
EnsureregularinspectionandmaintenanceParkLandsCreekwatercoursechannelandremoveovergrownvegetationandbuild-upofsedimentanddebris.
Stormwatertrunkmains
Structuralcollapseofmajortrunkmain. EnsureregularCCTVinspectionandstructuralconditionratingofpipenetworkarecarriedoutandeachpipesegmentremainsaboveConditionGrade4(WSA05-2013)fornominatedcriticaltrunkmains.
Stormwaterdrainagenetwork–Majorlowpoints
Blockageoflowpointoutletdrains–floodingofadjacentpropertiesandroadway.
Increaseinspectionandcleaningofstormwaterinterceptionpitsatmajorlowpointstominimiselikelihoodofblockage.
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5.3.2.3 Standards and specifications
MaintenanceworkiscarriedoutinaccordancewiththefollowingStandardsandSpecifications:
• Adelaide City Council City Works Guidelines (ACC2012 / 166255);
• Adelaide City Council Urban Elements Catalogue (TRIM TBA);
• Adelaide City Council Water Infrastructure Customer and Technical Levels of Service Scheduled Maintenance Performance Guidelines April 2012 (ACC2015 / 109884);
• Adelaide City Council Water Infrastructure Reactive Maintenance Performance Guidelines (May 2015) (ACC2015 / 102146);
• Torrens Lake Weir Maintenance Plan (2009 / 02497-1);
• Torrens Lake Water Mixers – Otterbine Maintenance Manual http://www.otterbine.com/assets/main/extranet/2011SpecForms/SubTritonMixSpecForm.pdf;and
• Grosspollutanttrap–manufacturersmaintenancemanuals(various).
5.3.3 Summary of future operations and maintenance expenditures
FutureoperationsandmaintenanceexpenditureisforecasttotrendinlinewiththevalueoftheassetstockasshowninFigures4Ato4C.Notethatallcostsareshownincurrent2014-15dollarvalues(i.e.realvalues).
Figure 4A: Projected Operations and Maintenance Expenditure – Stormwater Drainage Network (Expenditureisbasedon2014operationsandmaintenanceexpenditurelevels)
Operationsandmaintenanceexpenditureforthestormwaterdrainagenetworktomaintainongoingservicelevelswillbemetbycurrentbudgetfundinglevelsasshownonthegraph.Maintenancelevelswillbereviewedaspartofthisplantoensurethatstormwaterdrainageassetsarerenewedattheoptimumtimeinthelifecycletoensureservicesaredeliveredatlowestlifecyclecosts.
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Figure 4B: Projected Operations and Maintenance Expenditure – River Torrens and Watercourses (Expenditureisbasedon2014operationsandmaintenanceexpenditurelevels)
Figure4BindicatesagradualshortfallofbudgetedexpenditureforoperationsandmaintenanceofRiverTorrensandwatercoursesassetsovertime.Thisshortfallisattributedtotheacquisitionofnewassetsoverthefirst10yearsoftheAMPlanandinparticulartheinstallationmaintenanceandoperationoftemporarywaterstoragesinthesouthParkLandsproposedundertheBrown Hill Keswick Creek Stormwater Management Plan.Overall,operationalandmaintenancecostsforthisassetgrouparequitelow(approximately$175,000perannum)anditisplannedtoaddressthislowshortfall($10,000perannum)througheitherdesignofinfrastructurebasedonloweroperationalandmaintenancecostsortolookatefficienciesinexistingmaintenancepractices.
Figure 4C: Projected Operations and Maintenance Expenditure – Environmental and Wastewater (Expenditureisbasedon2014operationsandmaintenanceexpenditurelevels)
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Figure4Cindicatesasignificantshortfallofbudgetedexpenditureforoperationsandmaintenanceofenvironmentalandwastewaterassetsovertime.Asayoungassetgroupwitharelativelylowreplacementcostandhighoperationandmaintenancetoreplacementcostratio(6%),thisshortfallisattributedtothesignificantincreaseinoperationandmaintenancecostsfromacquisitionofnewassetsovertheLTFPsuchasBrown Hill Keswick Creek Stormwater Management Plantemporarywaterstorages,watersensitiveurbandesignfacilities,andinstallationofnewgrosspollutanttraps.Thesignificantlyhighshortfallwillneedtobeaddressedthroughacombinationofincreasedbudgetallocation,designofinfrastructurebasedonloweroperation,andmaintenancecostsandachieveefficienciesinexistingmaintenancepracticessuchascombiningcontractsforemptyingofgrosspollutanttraps.
Deferredmaintenance,i.e.worksthatareidentifiedformaintenanceandunabletobefunded,aretobeincludedintheriskassessmentandanalysisintheInfrastructure Risk Management Plan.
Maintenanceisfundedfromtheoperatingbudgetwhereavailable.ThisisfurtherdiscussedinSection6.2.
5.4 Renewal / Replacement Plan
Renewalandreplacementexpenditureismajorworkwhichdoesnotincreasetheasset’sdesigncapacitybutrestores,rehabilitates,replacesorrenewsanexistingassettoitsoriginalorlesserrequiredservicepotential.Workoverandaboverestoringanassettooriginalservicepotentialisupgrade/expansionornewworksexpenditure.
5.4.1 Renewal plan
Assetsrequiringrenewal/replacementareidentifiedfromoneofthreemethodsprovidedinthe‘ExpenditureTemplate’:
• Method1usesAssetRegisterdatatoprojecttherenewalcostsusingacquisitionyearandusefullifetodeterminetherenewalyear;or
• Method2usescapitalrenewalexpenditureprojectionsfromexternalconditionmodellingsystems(suchasPavementManagementSystems);or
• Method3usesacombinationofaveragenetworkrenewalsplusdefectrepairsintheRenewalPlanandDefectRepairPlanworksheetsonthe‘Expendituretemplate’.
Method1wasusedforthemajorityofthisAMPlanhoweverconditionmodellingsystems(Method2)wasusedforCouncil’sstormwaterdrainagenetwork.TheusefullivesofassetsusedtodevelopprojectedassetrenewalexpendituresareshowninTable5.4.1.AssetusefulliveswerelastreviewedinJune20149.ManyassetscontainedwithintheWaterInfrastructureAssetClassconsistofcomponentswithvarioususefullives.Anindicativeusefullifehasbeennominatedforthoseassetsinthefollowingtable.
9.TRIMRefACC2014/1438012014StormwaterValuation
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Table 5.4.1: Useful Lives of Assets
Asset subcategory Useful life
Stormwaterdrainagenetwork–Concretepipesandpitstructures
Pipesandpits125years,gratesandpitlids70years
Stormwaterdrainagenetwork–uPVCpipes 50years
Stormwaterdrainagenetwork–Pumpstations 40years
RiverTorrensassets–Earthretainingstructures 50years
RiverTorrensassets–Weirs 80years
RiverTorrensassets–Boatlandings/ramps 40years
RiverTorrensassets–Detentionbasins 80years
Watercourses–Linedandunlinedchannels 100years
Environmental–Watermixers 20years
Environmental–Grosspollutanttraps 40years
Environmental–Biologicalfiltrationplant 15years
Environmental–Floatingislands 5years
Environmental–Bio-retentionbasins 50years
Environmental–uPVCsewerinfrastructure 50years
Environmental–Waterqualitymonitoringequipment 15years
Environmental–Sedimentationbasins 80years
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5.4.2 Renewal and replacement strategies
Theorganisationwillplancapitalrenewalandreplacementprojectstomeetlevelofserviceobjectivesandminimiseinfrastructureservicerisksby:
• Planningandschedulingrenewalprojectstodeliverthedefinedlevelofserviceinthemostefficientmanner;
• Undertakingprojectscopingforallcapitalrenewalandreplacementprojectstoidentify:
• theservicedelivery‘deficiency’,presentrisk,andoptimumtimeforrenewal/replacement,
• theprojectobjectivestorectifythedeficiency,
• therangeofoptions,estimatedcapital,andlifecyclecostsforeachoptionsthatcouldaddresstheservicedeficiency,
• andevaluatetheoptionsagainstevaluationcriteriaadoptedbytheorganisation,
• selectthebestoptiontobeincludedincapitalrenewalprograms;
• Using‘lowcost’renewalmethods(costofrenewalislessthanreplacement)whereverpossible;
• MaintainacurrentInfrastructureRiskRegisterforassetsandservicerisksassociatedwithprovidingservicesfrominfrastructureassetsandreporting‘VeryHigh’and‘High’risksandresidualrisksaftertreatmenttomanagementandCouncil/Board;
• Reviewcurrentandrequiredskillsbaseandimplementworkforcetraininganddevelopmenttomeetrequiredconstructionandrenewalneeds;
• Maintainacurrenthierarchyofcriticalassetsandcapitalrenewaltreatmentsandtimingsrequired;and
• ReviewmanagementofcapitalrenewalandreplacementactivitiestoensureCouncilisobtainingbestvalueforresourcesused.
Renewal ranking criteria
Assetrenewalandreplacementistypicallyundertakentoeither:
• Ensurethereliabilityoftheexistinginfrastructuretodelivertheserviceitwasconstructedtofacilitate(e.g.replacingasectionofstormwaterdrainwhichhasstructurallyfailedandcollapsed);or
• Toensuretheinfrastructureisofsufficientqualitytomeettheservicerequirements(e.g.sectionofwatercoursehaserodedsidesmakingitdangerousforthepublictoaccess)10.
Itispossibletogetsomeindicationofcapitalrenewalandreplacementprioritiesbyidentifyingassetsorassetgroupsthat:
• Haveahighconsequenceoffailure;
• Haveahighutilisationandsubsequentimpactonuserswouldbegreatest;
• Thetotalvaluerepresentsthegreatestnetvaluetotheorganisation;
• Havethehighestaverageagerelativetotheirexpectedlives;
• AreidentifiedintheAMPlanaskeycostfactors;
• Havehighoperationalormaintenancecosts;and
• Wherereplacementwithmodernequivalentassetswouldyieldmaterialsavings11.
10.IPWEA,2011,IIMM,Sec3.4.4,p3|60.11.BasedonIPWEA,2011,IIMM,Sec3.4.5,p3|66.
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TherankingcriteriawhichisproposedtobeusedtodeterminepriorityofidentifiedrenewalandreplacementproposalsisdetailedinTable5.4.2.
Table 5.4.2: Renewal and Replacement Priority Ranking Criteria
Criteria Weighting
Assetcondition(economiclife) 60%
Assetcapacity/utilisation 15%
Externalpartnership/costshare 15%
Counciljointproject(e.g.streetscape) 10%
TOTAL 100%
Renewal and replacement standards
RenewalworkiscarriedoutinaccordancewiththefollowingStandardsandSpecifications.
• Adelaide City Council City Works Guidelines;
• Adelaide City Council Urban Elements CatalogueandAdelaide Design Manualwhenendorsedforgeneraluse;
• Adelaide City Council Standard Drawings – Stormwater Elements Dwg No. A1/74/1;
• Australian Rainfall and Run-off 1999;
• RelevantAustralianStandards(e.g.AS3600-2009 Design of Concrete Structures);and
• National Construction Code 2012.
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5.4.3 Summary of future renewal and replacement expenditure
Projectedfuturerenewalandreplacementexpendituresareforecasttoincreaseovertimeastheassetstockincreasesfromgrowthofservicesanddonatedassets.TheexpenditureissummarisedinFigures5Ato5C.Notethatallamountsareshowninrealvalues.
TheprojectedcapitalrenewalandreplacementprogramisshowninAppendixB.
Fig 5A: Projected Capital Renewal and Replacement Expenditure – Stormwater Drainage Network
Althoughstormwaterdrainagenetworkassetscomprisemorethan70%ofthetotalWaterInfrastructureAssetClassreplacementcostandassetdepreciationinexcessof$760,000perannum,thereareveryfewassetsrequiringrenewaloverthenext20years.Thisanalysisisbasedonthe2014CCTVconditionassessmentwhichgradedthemajorityofassetsatconditiongradethreewithremaininglifeofallassetsinexcessof20yearsotherthanasmallassetcomponentgroupwitha10-yearusefullife.The$450,000renewalforthe2014-15financialyearisfortherenewalofa380metrelongfailedsectionofearthenwarestormwaterdrainandassociatedmanholesinRundleMall.Averageannualrenewalexpenditureforthisassetgroupisonly3%ofassetconsumption.
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Fig 5B: Projected Capital Renewal and Replacement Expenditure – River Torrens and Watercourses
Figure5BindicatesthatsignificantrenewalexpenditureisrequiredforRiverTorrensandwatercoursesassetstomeetalargenumberrenewalsfallingdueoverthenext15yearswithannualexpenditureexceeding169%ofannualassetconsumption.Indeed,themajorityofassetrenewalsfortheWaterInfrastructureAssetClassasawholewillbeRiverTorrensandwatercourseassets.ThemajorityofrenewalsinvolvethereplacementofFirstCreekCulvertearthretainingstructure(2015),renewalofwatercoursechannelsinthesouthandeastParkLands,andrenewalearthretainingstructuresinTorrensLake(AlbertBridgetoUniversityFootbridge).RenewalsdecisionsfortheseassetshavebeenbasedonMethod2assessmentsoftheFirstCreekCulvertandwatercoursechannelsintheEastandSouthParkLands.ConditionofearthretainingstructuresinTorrensLakeisbasedonage.ThegraphalsoindicatesanumberofsecondgenerationrenewalsrequiredwhicharethereplacementofcomponentsoftheTorrensLakeWeirgatecontrolsystemandelectricalsystem.
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Fig 5C: Projected Capital Renewal and Replacement Expenditure – Environmental and Wastewater
Giventherelativeshortusefullivesofenvironmentalandwastewaterinfrastructure,Figure5CisdominatedbyGeneration2andGeneration3renewals.Comparedtotheothertwoassetcategories,thisgroupwillrequirefairlyconsistentannualrenewalexpenditureasevidencedfromthisgraphwhereonaverage,annualrenewalexpenditurewillaccountfor76%ofannualdepreciationexpensedespitedepreciatedreplacementcostremainingatcloseto70%ofcurrentreplacementcost.Itisimportanttonotethatthisassetgroupwillundergosignificantgrowthofnewassetsoverthenext20years,somecomponentsofwhichwillrequirerenewalbefore2034.
Deferredrenewalandreplacement,i.e.thoseassetsidentifiedforrenewaland/orreplacementandnotscheduledincapitalworksprograms,aretobeincludedintheriskanalysisprocessintheRiskManagementPlan.
Renewalsandreplacementexpenditureintheorganisation’scapitalworksprogramwillbeaccommodatedintheLTFP.ThisisfurtherdiscussedinSection6.2.
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5.5 Creation / Acquisition / Upgrade Plan
Newworksarethoseworksthatcreateanewassetthatdidnotpreviouslyexist,orworkswhichupgradeorimproveanexistingassetbeyonditsexistingcapacity.Theymayresultfromgrowth,socialorenvironmentalneeds.Assetsmayalsobeacquiredatnocosttotheorganisationfromlanddevelopment.TheseassetsfromgrowthareconsideredinSection4.4.
5.5.1 Selection criteria
Newassetsandupgrade/expansionofexistingassetsareidentifiedfromvarioussourcessuchasCouncillor/Directororcommunityrequests,proposalsidentifiedbystrategicplansorpartnershipswithotherorganisations.Candidateproposalsareinspectedtoverifyneedandtodevelopapreliminaryrenewalestimate.Verifiedproposalsarerankedbypriorityandavailablefundsandscheduledinfutureworksprograms.Theproposedfuturepriorityrankingcriteriaisdetailedbelow.
Table 5.5.1: New Assets Priority Ranking Criteria
Criteria Weighting
Publicsafety 30%
Legislativerequirement 15%
ExternalpartnershipState/LocalGovernment(RiverbankPrecinct,StormwaterManagementPlans) 15%
Communitydemand 25%
City of Adelaide Strategic Plan 2016 - 20 15%
TOTAL 100%
5.5.2 Capital investment strategies
Theorganisationwillplancapitalupgradeandnewprojectstomeetlevelofserviceobjectivesby:
• Planningandschedulingcapitalupgradeandnewprojectstodeliverthedefinedlevelofserviceinthemostefficientmanner;
• Undertakeprojectscopingforallcapitalupgrade/newprojectstoidentify:
– theservicedelivery‘deficiency’,presentrisk,andrequiredtimelinefordeliveryoftheupgrade/newasset,
– theprojectobjectivestorectifythedeficiencyincludingvaluemanagementformajorprojects,
– therangeofoptions,estimatedcapital,andlifecyclecostsforeachoptionsthatcouldaddresstheservicedeficiency,
– managementofrisksassociatedwithalternativeoptions,
– andevaluatetheoptionsagainstevaluationcriteriaadoptedbyCouncil,
– selectthebestoptiontobeincludedincapitalupgrade/newprograms;
• Reviewcurrentandrequiredskillsbaseandimplementtraininganddevelopmenttomeetrequiredconstructionandprojectmanagementneeds;and
• ReviewmanagementofcapitalprojectmanagementactivitiestoensureCouncilisobtainingbestvalueforresourcesused.
Standardsandspecificationsfornewassetsandforupgrade/expansionofexistingassetsarethesameasthoseforrenewalshowninSection5.4.2.
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5.5.3 Summary of future upgrade / new assets expenditure
Projectedupgrade/newassetexpendituresaresummarisedinFigures6Ato6C.Theprojectedupgrade/newcapitalworksprogramisshowninAppendixC.Allamountsareshowninrealvalues.
Fig 6A: Projected Capital Upgrade / New Asset Expenditure – Stormwater Drainage Network
Council’sstormwaterdrainagenetworkisafullydevelopedstormwatermanagementsystemwhichprovidesadequateservicetotheAdelaideandNorthAdelaidecommunitieswithlittledemandforneworupgradedassets.ThisiscertainlyreflectedinFigure6Awithonly$700,000ofnewstormwaterdrainageinfrastructureproposedoverthe20-yearperiodandallinthefirsttwoyearsoftheplan.TheproposedupgradestotheassetgroupareJeffcottStreetDrainage(2014-15),VictoriaParkDrainage(2014-15,2015-16,2016-17),andCouncil’sErgoDevelopmentDrainage(2015-16).
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Fig 6B: Projected Capital Upgrade / New Asset Expenditure – River Torrens and Watercourses
RiverTorrensandwatercourseassetsaresimilartostormwaterdrainagenetworkassetsinthattheassetbaseisfullydevelopedinprovidingtheservicesrequired.Whiletherewouldbealowexpectationfornewassetstobeacquiredwithinthisgroup,thereareasignificantgroupofnewassetsproposedduringthefirst10yearsoftheplan.TheseassetsincludeexpenditurefortemporarywaterstoragesinthesouthParkLandsinPark16andPark20associatedwiththeBrown Hill Keswick Creek Stormwater Management Plan 2012.Thenewassetswillonlyresultina0.4%perannumgrowthoftheassetbaseoverthelongterm.
Fig 6C: Projected Capital Upgrade / New Asset Expenditure – Environmental and Wastewater
Figure6Chighlightsthesignificantgrowthofassetswithinthisgroup,particularlyoverthefirst10yearsoftheplan.Giventherelativelyyoungassetgroupandlowcurrentreplacementcost,thegrowthrateoftheassetgroupduetonewassetsisaround6.5%perannum.Growthofassetswithinthisgroupisduetothedemandfornewservicesintheareasofwatersensitiveurbandesign,wetlands,waterqualityimprovementandgrosspollutantinterception.ThelargestcontributiontothegrowthofnewassetsistheVictoriaParkwetland.
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Expenditureonnewassetsandservicesintheorganisation’scapitalworksprogramwillbeaccommodatedintheLTFP.ThisisfurtherdiscussedinSection6.2.
5.6 Disposal Plan
Disposalincludesanyactivityassociatedwithdisposalofadecommissionedassetincludingsale,demolitionorrelocation.Therearenowaterinfrastructureassetswhichhavebeenidentifiedforpossibledecommissioninganddisposal.Anyfutureassetsrequiringdisposalwillbefurtherreinvestigatedtodeterminetherequiredlevelsofserviceandseewhatoptionsareavailableforalternateservicedelivery,ifany.AnyrevenuegainedfromassetdisposalsisaccommodatedinCouncil’sLTFP.
Wherecashflowprojectionsfromassetdisposalsarenotavailable,thesewillbedevelopedinfuturerevisionsofthisAMPlan.Therearenoassetsproposedtobedisposedduringthelifeofthisplan.
5.7 Service Consequences and Risks
TheorganisationhasprioritiseddecisionsmadeinadoptingthisAMPlantoobtaintheoptimumbenefitsfromitsavailableresources.DecisionsweremadebasedonthedevelopmentofthreescenariosofAMplans.
Scenario 1–WhatwewouldliketodobasedonAssetRegisterdata.
Scenario 2–Whatweshoulddowithexistingbudgetsandidentifyinglevelofserviceandriskconsequences(i.e.whataretheoperationsandmaintenanceandcapitalprojectsweareunabletodo,whatistheserviceandriskconsequencesassociatedwiththisposition).ThismayrequireseveralversionsoftheAMPlan.
Scenario 3–WhatwecandoandbefinanciallysustainablewithAMplansmatchingLTFPs.
ThedevelopmentofScenario1andScenario2AMPlansprovidesthetoolsfordiscussionwiththeCouncilandcommunityontrade-offsbetweenwhatwewouldliketodo(Scenario1)andwhatweshouldbedoingwithexistingbudgets(Scenario2)bybalancingchangesinservicesandservicelevelswithaffordabilityandacceptanceoftheserviceandriskconsequencesofthetrade-offposition(Scenario3).
5.7.1 What we cannot do
Therearesomeoperationsandmaintenanceactivitiesandcapitalprojectsthatareunabletobeundertakenwithinthenext10yearsbasedonlittlechangetoexistingoperationalandmaintenancebudgets.Theseinclude:
• Additionaloperationsandmaintenanceofanumberofnewassetscreatedoverthenext10yearswithintheenvironmentalandwastewatergroup.Thiswillincludemaintenanceofwatersensitiveurbandesignfacilities(vegetation,filtermedia,andsurfaces),VictoriaParkWetlands(sedimentation,vegetation,andeducationalinfrastructure),grosspollutanttraps(frequencyofremovalofmaterialfromunits),andfloatingislands(vegetation).
Water Infrastructure Asset Management Plan 63
5.7.2 Service consequences
Operationsandmaintenanceactivities,andcapitalprojectsthatcannotbeundertaken,willmaintainorcreateserviceconsequencesforusers.Theseinclude:
• Lowerlevelofservicefornewassetscreatedoverthenext10yearswithintheenvironmentalandwastewatergroup.Thesecouldincludelossofamenity,habitat,andwaterquality(VictoriaParkWetlands),reducedwaterquality,andhigherriskofblockagefromdebrisinreceivingwatersfromreductioninfrequencyofcleaningofgrosspollutanttraps.
5.7.3 Risk consequences
Theoperationsandmaintenanceactivitiesandcapitalprojectsthatcannotbeundertakenmaymaintainorcreateriskconsequencesfortheorganisation.Theseinclude:
• Possibledamagetoreputationfromthemedia/communitybynotprovidingdesiredlevelofservicefromnewassetscreatedoverthenext10yearswithintheenvironmentalandwastewatergroup.Forexample,ifweedinvasionisnotmanagedoverthefirstfiveyearsoftheconstructionoftheVictoriaParkWetlands,orwatersensitiveurbandesignfacilitiesincitystreetswhicharedevoidofvegetationduetolackofmaintenance.
TheseriskshavebeenincludedwiththeInfrastructure Risk Management PlansummarisedinSection5.2andRiskManagementPlan’sactionsandexpendituresincludedwithinprojectedexpenditures.
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6. FINANCIAL SUMMARY
ThissectioncontainsthefinancialrequirementsresultingfromalltheinformationpresentedintheprevioussectionsofthisAMPlan.Thefinancialprojectionswillbeimprovedasfurtherinformationbecomesavailableondesiredlevelsofserviceandcurrentandprojectedfutureassetperformance.
6.1 Financial Statements and Projections
ThefinancialprojectionsareshowninFigures7Ato7Cforprojectedoperating(operationsandmaintenance)andcapitalexpenditure(renewalandupgrade/expansion/newassets).Notethatallcostsareshowninrealvalues.
Fig 7A: Projected Operating and Capital Expenditure – Stormwater Drainage Network
Figure7Aindicatesthatrenewal,new/upgrade,operations,andmaintenanceofstormwaterdrainagenetworkassetsarefullyfundedovertheLTFPtoensurethatservicelevelsforstormwaterfloodingandaccessibilitytopropertiesandpublicspacesaremaintainedoverthelengthoftheplan.AdditionalrenewalandnewassetsinYear1andYear3oftheplanarefortheinstallationofundergroundstormwaterinfrastructureinVictoriaPark,JeffcottStreet,andtheErgoApartmentsaspreviouslynoted.
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Fig 7B: Projected Operating and Capital Expenditure – River Torrens and Watercourses
Figure7Bindicatesthatrenewal,new/upgrade,operations,andmaintenanceofRiverTorrensandwatercourseassetsaremorethan95%fundedovertheLTFPtoensurethatservicelevelsforrecreationandamenityintheRiverTorrenscorridorandsafetyandenvironmentalsustainabilityofwatercoursesandtemporaryfloodstoragesintheParkLandsaremaintainedoverthelengthoftheplan.Additionalnewassetsoverthefirst10yearsoftheplanarefortheinstallationoftemporaryfloodstoragesinthesouthParkLandsassociatedwiththeBrown Hill Keswick Creek Stormwater Management Planandthehighrateofrenewalsoverthefirst15yearsoftheplanreflecttherenewalsfallingdueforwatercoursesinthesouthandeastParkLandsaswellasearthretainingstructuresinTorrensLake.Therelativelysmallshortfallinbudgetfundingoverthefinal10yearsoftheplanreflectstheincreaseinmaintenanceandoperationscostsassociatedwiththecreationofnewassetsoverthefirstyearoftheplan.
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Operations Maintenance Capital Renewal Capital Upgrade
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Fig 7C: Projected Operating and Capital Expenditure – Environmental and Wastewater
Thegraphindicatesthatrenewal,new/upgrade,operations,andmaintenanceofenvironmentalandwastewaterinfrastructureassetsarearound90%fundedoverthefirstfiveyearsoftheplanhoweverthisratefallstojustover50%overthelast10yearsoftheplan.Itisimportanttonotethatrenewalsandcapitalupgrade/newassetsarefullyfundedoverthe20-yeartermoftheplanandthattheshortfallisduetounfundedoperationsandmaintenanceofnewassetscreatedinthefirst10yearsoftheplan.Unfortunatelythesecostsaresignificantbecauseacharacteristicofthisparticularassetgroupishighoperationsandmaintenancecostsasaproportiontocurrentreplacementcoststhereforeanyincreaseintheassetbasewillmagnifyadditionaloperationsandmaintenancecosts.Inadditiontothismultiplier,theassetgroupwillundergosignificantincreaseinreplacementcostoverthenext10yearswiththeadditionoftheVictoriaParkwetlands,watersensitiveurbandesignfacilities,andgrosspollutanttraps.
Actualincreasesinoperationsandmaintenancecostsfortheseassetsmayofcoursenotapplytotheexistingoperating/maintenancecosttoreplacementcostratioandpredictedincreasesinthesecostsmaybeexaggeratedhowevermethodsofreducingtheseforecastcostswillbeexploredduringthetermoftheplan.Asindicatedpreviously,iftheadditionaloperatingandmaintenancecostsarenotfundedthentherewillbeareductioninlevelsofserviceforamenityandenvironmentalsustainabilityofwaterbodiesinthecity.
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Water Infrastructure Asset Management Plan 67
6.1.1 Sustainability of service delivery
Therearefourkeyindicatorsforservicedeliverysustainabilitythathavebeenconsideredintheanalysisoftheservicesprovidedbythisassetcategory,thesebeingtheAssetRenewalFundingRatio,longtermlifecyclecosts/expenditures,andmediumtermprojected/budgetedexpendituresoverfiveand10yearsoftheplanningperiod.
Asset Renewal Funding Ratio
AssetRenewalFundingRatio12(stormwaterdrainagenetwork) 102%
AssetRenewalFundingRatio13(RiverTorrensandwatercoursesassets) 100%
AssetRenewalFundingRatio14(environmentalandwastewaterinfrastructure) 100%
TheAssetRenewalFundingRatioisthemostimportantindicatorandrevealsthatoverthenext10years,Councilisforecastingthatitwillhave:
• 100%ofthefundsrequiredfortheoptimalrenewalandreplacementofitsstormwaterdrainagenetworkassets;
• 100%ofthefundsrequiredfortheoptimalrenewalandreplacementofitsRiverTorrensandwatercoursesassets;and
• 100%ofthefundsrequiredfortheoptimalrenewalandreplacementofitsenvironmentalandwastewaterinfrastructureassets.
Long term - lifecycle cost
Lifecyclecosts(orwholeoflifecosts)aretheaveragecoststhatarerequiredtosustaintheservicelevelsovertheassetlifecycle.Lifecyclecostsincludeoperationsandmaintenanceexpenditureandassetconsumption(depreciationexpense).ThelifecyclecostfortheservicescoveredinthisAMPlanis:
• Stormwaterdrainagenetwork:$1,444,000peryear(averageoperationsandmaintenanceexpenditureplusdepreciationexpenseprojectedover10years);
• RiverTorrensandwatercourseassets:$662,000,peryear(averageoperationsandmaintenanceexpenditureplusdepreciationexpenseprojectedover10years);
• Environmentalandwastewater:$794,000,peryear(averageoperationsandmaintenanceexpenditureplusdepreciationexpenseprojectedover10years);and
• Totalwaterinfrastructureassets:$2,900,000,peryear(averageoperationsandmaintenanceexpenditureplusdepreciationexpenseprojectedover10years).
Lifecyclecostscanbecomparedtolifecycleexpendituretogiveaninitialindicatorofaffordabilityofprojectedservicelevelswhenconsideredwithageprofiles.Lifecycleexpenditureincludesoperations,maintenance,andcapitalrenewalexpenditure.Lifecycleexpenditurewillvarydependingonthetimingofassetrenewals.Thelifecycleexpenditureoverthe10-yearplanningperiodis
• Stormwaterdrainagenetwork:$740,000peryear(averageoperationsandmaintenancepluscapitalrenewalbudgetedexpenditureinLTFPover10years).Thisexpenditureiswellbelow(51%)averagecostsbecauseveryfewassetrenewalsforthisassetgroupfalldueoverthetermoftheplan;
• RiverTorrensandwatercoursesassets:$1,200,000peryear(averageoperationsandmaintenancepluscapitalrenewalbudgetedexpenditureinLTFPover10years).Thisexpenditureiswellabove(181%)averagecostsbecauseanumberofassetswithlargerenewalcostsfalldueoverthetermofthisplan;
• Environmentalandwastewaterinfrastructure:$557,000peryear(averageoperationsandmaintenancepluscapitalrenewalbudgetedexpenditureinLTFPover10years).Thisexpenditureiswellbelow(70%)averagecostsbecauseoperationsandmaintenancecostsoverthelast10yearsoftheplanareunfunded.Renewalcostsarefullyfunded;and
• Totalwaterinfrastructureassets:$2,497,000,peryear(averageoperationsandmaintenancepluscapitalrenewalbudgetedexpenditureinLTFPover10years).Overallexpenditureisbelow(86%)averagecostsandtheshortfallisclosetounfundedoperationsandmaintenanceforenvironmentalandwastewaterinfrastructurehoweverthisisonlybychance.Thedifference
12-14.AIFMG,2012,Version1.3,FinancialSustainabilityIndicator4,Sec2.6,p2.16
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inaveragecostandexpenditureismoreareflectionofwhenassetsfallduesoverthelifeoftheplanwhencomparedtotheaveragevaluesoverlifecyclesoftheassets.
Ashortfallbetweenlifecyclecostandlifecycleexpenditureisthelifecyclegap.ThelifecyclegapforservicescoveredbythisAMPlanis-$403,000peryear(-ve=gap,+ve=surplus).
• Stormwaterdrainagenetwork:-$704,000peryear(-ve=gap,+ve=surplus).Thisshortfallisnotvalidasalllifecyclecostsfallingdueoverthelifeoftheplanarefullyfundedandthedeficitisareflectionofwhentherenewalsfalldueoverthelifeoftheplancomparedtoaveragelifecyclecosts;
• RiverTorrensandwatercourseassets:$537,000peryear(-ve=gap,+ve=surplus).Thissurplusisnotvalidasalllifecyclecostsfallingdueoverthelifeoftheplanareonly95%fundedwithasmallshortfallduetoadditionaloperationsandmaintenancecostsofnewassetscreatedinthefirst10yearsoftheplan.Thesurplusisareflectionofwhentherenewalsfalldueoverthelifeoftheplancomparedtoaveragelifecyclecosts;
• Environmentalandwastewaterinfrastructure:-$237,000peryear(-ve=gap,+ve=surplus).Thisshortfallreflectstheunfundedadditionaloperationsandmaintenancecostsofnewassetscreatedoverthetermoftheplan;and
• Totalwaterinfrastructureassets:-$403,000peryear(-ve=gap,+ve=surplus).Thisoverallshortfallisnotvalidasalllifecyclecostsfallingdueoverthelifeoftheplanarefullyfundedandthedeficitisareflectionofthedifferenceinaveragecostandexpenditureandunfundedoperationsandmaintenancecosts.Thetrueshortfallisaround-$230,000reflectingtheunfundedadditionaloperationsandmaintenancecostsofnewenvironmentalandwastewaterassetscreatedoverthetermoftheplan.
Longtermlifecycleexpenditureis51%oflifecyclecostsforstormwaterdrainagenetworkassets,181%oflifecyclecostsforRiverTorrensandwatercoursesassets,and70%oflifecyclecostsforenvironmentalandwastewaterassetswhichresultin86%oflifecyclecostsforthetotalWaterInfrastructureAssetClass.Ideally,theseratiosshouldbe100%howeverasexplainedabove,thereasonsforthelargevarianceincost/expenditureratiosisthatlifecyclecostsfallingdueoverthelifeoftheplanvarysignificantlytotheaveragecostoverthelifecyclesoftheassets.
Thelifecyclecostsandlifecycleexpenditurecomparisonhighlightsanydifferencebetweenpresentoutlaysandtheaveragecostofprovidingtheserviceoverthelongterm.Ifthelifecycleexpenditureislessthanthatlifecyclecost,itismostlikelythatoutlayswillneedtobeincreasedorcutsinservicesmadeinthefuture.
Knowingtheextentandtimingofanyrequiredincreaseinoutlaysandtheserviceconsequencesiffundingisnotavailablewillassistorganisationsinprovidingservicestotheircommunitiesinafinanciallysustainablemanner.ThisisthepurposeoftheAMplansandLTFP.
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Medium term – 10-year financial planning period
ThisAMPlanidentifiestheprojectedoperations,maintenance,andcapitalrenewalexpendituresrequiredtoprovideanagreedlevelofservicetothecommunityovera10-yearperiod.Thisprovidesinputinto10-yearfinancialandfundingplansaimedatprovidingtherequiredservicesinasustainablemanner.
Theseprojectedexpendituresmaybecomparedtobudgetedexpendituresinthe10-yearperiodtoidentifyanyfundingshortfall.InacoreAMPlan,agapisgenerallyduetoincreasingassetrenewalsforageingassets.
Comparisonbetween10-yearoperational,maintenance,andcapitalrenewalexpenditurerequiredtothatbudgetedintheLTFPisoutlinedinthefollowingtableforeachassetgroupaswellasthetotalWaterInfrastructureAssetClasstomeetexistingservicelevels.
Stormwater drainage network
River Torrens and watercourse
assets
Environmental and wastewater
infrastructure
Total Water Infrastructure
Asset Class
10-yearoperational,maintenance,andcapitalrenewalexpenditurerequiredonaverageperyear
$727,000 $1,210,000 $743,000 $2,680,000
10-yearoperational,maintenance,andcapitalrenewalbudgetexpenditureonaverageperyear
$740,000 $1,200,000 $557,000 $2,497,000
10-yearfundingshortfallperyear
+$13,000 -$10,000 -$186,000 -$183,000
10-yearfinancingindicator–%ofprojected10-yearexpenditureneededtoprovideservices
102% 99% 75% 93%
Thecomparisonindicatesthatoverthe10-yearterm,Councilisfunding93%oflifecyclecostsacrosstheentireWaterInfrastructureAssetClasswithfullfundingoflifecyclecostsforstormwaterdrainagenetworkandRiverTorrensandwatercourseassetshoweveronly75%ofenvironmentalandwastewaterinfrastructureassets.Theaverageoverall$183,000peryearshortfallisfullyattributedtotheadditionalprojectedcostsforoperationsandmaintenanceofnewenvironmentalandwastewaterinfrastructure,themajorityofwhichareacquiredinthefirst10yearsoftheplan.
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Medium term – 5-year financial planning period
Comparisonbetweenfive-yearoperational,maintenance,andcapitalrenewalexpenditurerequiredtothatbudgetedintheLTFPisoutlinedinthefollowingtableforeachassetgroupaswellasthetotalWaterInfrastructureAssetClasstomeetexistingservicelevels.
Stormwater drainage network
River Torrens and watercourse
assets
Environmental and wastewater
infrastructure
Total Water Infrastructure
Asset Class
Five-yearoperational,maintenance,andcapitalrenewalexpenditurerequiredonaverageperyear
$769,000 $1,255,000 $478,000 $2,502,000
Five-yearoperational,maintenance,andcapitalrenewalbudgetexpenditureonaverageperyear
$781,000 $1,250,000 $416,000 $2,447,000
Five-yearfundingshortfallperyear
+$12,000 -$4,000 -$62,000 -$54,000
Five-yearfinancingindicator–%ofprojected10-yearexpenditureneededtoprovideservices
102% 100% 87% 98%
Thecomparisonindicatesthatoverthefive-yearterm,Councilisfunding98%oflifecyclecostsacrosstheentireWaterInfrastructureAssetClasswithfullfundingoflifecyclecostsforstormwaterdrainagenetworkandRiverTorrensandwatercourseassetshoweverover85%ofenvironmentalandwastewaterinfrastructureassets.Theaverageoverall$62,000peryearshortfallisfullyattributedtotheadditionalprojectedcostsforoperationsandmaintenanceofnewenvironmentalandwastewaterinfrastructure,witharound40%ofthosenewassetsacquiredoverthefive-yearperiod.
Water Infrastructure Asset Management Plan 71
Asset management financial indicators
Figures7-1Ato7-1Cshowstheassetmanagementfinancialindicatorsoverthe10-yearplanningperiodandforthelongtermlifecycle.
Figure 7-1A: Asset Management Financial Indicators – Stormwater Drainage Network
Thegraphindicatesthatlifecyclecostsforstormwaterdrainagenetworkassetsarefullyfundedoverthefirst10yearsofthe
planhoweveronly51%ofrequiredlifecyclecostsarefundedinthelongterm.Thelongtermratio(51%)isinvalidinthiscaseasitdoesnottakeintoaccountthetimingofrequiredrenewals.ThisassetgroupismostcertainlysubjectedtothesamerateofassetconsumptionhowevertherecentCCTVconditionsurveyhasresultedinonlyasmallnumberofrenewalsrequiredoverthetermoftheplan.Thereforeprojectedlongtermaveragelifecyclecostsaremorethandoublethanthatactuallyrequiredandbudgetedforoverthetermoftheplan.100%ofactualrequiredlifecyclecostsarefundedoverthetermoftheplan.
0%
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5 Year
102% 102%
51%
10 Year Long Term Average(using 10 year planned outlays)
Comparison of LTFP outlays as a % of projected requirements
Water Infrastructure Asset Management Plan72
Figure 7-1B: Asset Management Financial Indicators – River Torrens and Watercourses
ThegraphindicatesthatlifecyclecostsforRiverTorrensandwatercourseassetsarefullyfundedoverthefirst10yearsoftheplanhoweveritappearsthattheplanproposestooverfundlifecyclecostsinthelongterm.Thelongtermratio(181%)isinvalidinthiscaseasitdoesnottakeintoaccountthetimingofrequiredrenewals.Unlikethestormwaterdrainagenetworkgroup,thisassetgrouphasadisproportionateofrenewalsfallingdueoverthetermofthisplanthereforeexpenditurewellabove(181%)theaveragerequiredlifecyclecostswillbeneededoverthetermoftheplan.Despitethiselevatedexpenditure,wewillstillonlymeet95%ofalllifecyclecostsasthereisasmallamountofunfundedadditionaloperationsandmaintenanceresultingfromtheacquisitionofnewassetsoverthefirst10yearsoftheplan.
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100% 99%
181%
10 Year Long Term Average(using 10 year planned outlays)
Comparison of LTFP outlays as a % of projected requirements
Water Infrastructure Asset Management Plan 73
Figure 7-1C: Asset Management Financial Indicators – Environmental and Wastewater
Thegraphindicatesthatlifecyclecostsforenvironmentalandwastewaterassetsshowagradualreductionoffundingofrequiredexpenditure.AllrenewalsarefullyfundedovertheshortandlongtermhoweverdisproportionateadditionaloperationsandmaintenancecostsresultingfromsignificantacquisitionofnewassetsoverthetermoftheplanarenotfundedandthisunfundedamountincreasesasCouncilacquiresmoreassetsthroughYear1toYear10oftheplanresultinginadecliningsustainabilityindicator.Itisproposedtoaddresstheshortfallinoperationsandmaintenancecostsforthisassetgroupasdiscussedelsewhereintheplan.
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Planning Period
5 Year
87%
75%70%
10 Year Long Term Average(using 10 year planned outlays)
Comparison of LTFP outlays as a % of projected requirements
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Figure 7-1D: Asset Management Financial Indicators – Total Water Infrastructure Asset Class
ThegraphindicatesthatlifecyclecostsforthetotalWaterInfrastructureAssetClassshowagradualreductionoffundingofrequiredexpenditure.AllrenewalsarefullyfundedovertheshortandlongtermhoweverdisproportionateadditionaloperationsandmaintenancecostsresultingfromsignificantacquisitionofnewassetsoverthetermoftheplanforenvironmentalandwastewaterinfrastructureassetsandsomewatercourseassetsarenotfundedandthisunfundedamountincreasesasacquiremoreassetsthroughYear1toYear10oftheplanresultinginadecliningsustainabilityindicator.Itisproposedtoaddresstheshortfallinoperationsandmaintenancecostsforthisassetgroupasdiscussedelsewhereintheplan.
Providingservicesfrominfrastructureinasustainablemannerrequiresthematchingandmanagingofservicelevels,risks,projectedexpendituresandfinancingtoachieveafinancialindicatorofapproximately1.0forthefirstyearoftheAMPlanandideallyoverthe10-yearlifeoftheLTFP.
Figures8Ato8Cshowstheprojectedassetrenewalandreplacementexpenditureoverthe20yearsoftheAMPlan.Theprojectedassetrenewalandreplacementexpenditureiscomparedtorenewalandreplacementexpenditureinthecapitalworksprogram,whichisaccommodatedintheLTFP.
0
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98%93%
86%
10 Year Long Term Average(using 10 year planned outlays)
Comparison of LTFP outlays as a % of projected requirements
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Figure 8A: Projected and LTFP Budgeted Renewal Expenditure – Stormwater Drainage Network
ThegraphindicatesthatmajorityofrenewalexpenditureforstormwaterdrainagenetworkassetsoccursinYear1(RundleMallstormwaterdrainreplacement)andisfullyfunded.Anallocationof$20,000perannumhasbeenallocatedinthebudgetwhicharefundsthatCouncilappliestorenewalasmallnumberofstormwaterdrainageassetseachyearwhichareidentifiedthroughreportedservicefailuresandsubsequentidentificationofstructuralfailurenotidentifiedintheAssetRegisterforexample,replacementofcollapsedmanholeorreplacementofbrokencastironinletpitgrates.ThesmallamountofrenewalactivitybeyondYear1reflectsthetimingofrequiredrenewalsforthisassetgroupandthatrequiredrenewalscommencebeyondtheendoftheplantimeframe.
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Figure 8B: Projected and LTFP Budgeted Renewal Expenditure – River Torrens and Watercourses
Figure8BindicatesaconsistentlevelofelevatedrenewalofRiverTorrensandwatercourseassetsoverthefirst15yearsoftheplanwhichisareflectionofthetimingofrequiredrenewalsforthisassetgroup.Budgetexpenditurehasbeenallocatedforthemajorityofrenewals,particularlyinthefirst10yearsoftheplan.RequiredrenewalsrevertbacktoaverageexpenditureafterYear15.
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Figure 8C: Projected and LTFP Budgeted Renewal Expenditure – Environmental and Wastewater Infrastructure
Figure8Cshowsthatoverthefirst10yearsoftheplan,budgetedrenewalexpenditureforenvironmentalandwastewaterinfrastructuretypicallymeetsthemajorityofrequiredrenewalexpenditure.Thisgroupconsistsofassetswithrelativelyshorterusefullivesthanthatoftheothertwogroupsandsuch,therenewalplancontainsGeneration2andGeneration3renewalsoverthetimeframeoftheplan.
Tables6.1.1Ato6.1.1CshowstheshortfallbetweenprojectedrenewalandreplacementexpendituresandexpenditureaccommodatedinLTFP.BudgetexpendituresaccommodatedintheLTFPorextrapolatedfromcurrentbudgetsareshowninAppendixD.
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16
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Table 6.1.1A: Projected and LTFP Budgeted Renewals and Financing Shortfall – Stormwater Drainage Network
Year Projected renewals ($,000)
LTFP renewal budget ($,000)
Renewal financing shortfall ($,000)
(-ve gap, +ve surplus)
Cumulative shortfall ($,000)
(-ve gap, +ve surplus)
2015 $450 $450 $0 $0
2016 $0 $20 $20 $20
2017 $0 $20 $20 $40
2018 $0 $20 $20 $60
2019 $0 $20 $20 $80
2020 $0 $20 $20 $100
2021 $0 $20 $20 $120
2022 $0 $20 $20 $140
2023 $10 $30 $20 $160
2024 $10 $30 $20 $180
2025 $0 $20 $20 $200
2026 $0 $20 $20 $220
2027 $0 $20 $20 $240
2028 $0 $20 $20 $260
2029 $0 $20 $20 $280
2030 $0 $20 $20 $300
2031 $0 $20 $20 $320
2032 $0 $20 $20 $340
2033 $10 $30 $20 $361
2034 $10 $30 $20 $380
Note:Anegativeshortfallindicatesafinancinggap,apositiveshortfallindicatesasurplusforthatyear.
Thecumulativesurplus($380,000)isaresultofanannual$20,000expenditurebudgetallocatedtointhebudgettorenewalasmallnumberofstormwaterdrainagenetworkassetseachyearwhichareidentifiedthroughreportedservicefailuresandsubsequentidentificationofstructuralfailurenotidentifiedintheAssetRegister.
Water Infrastructure Asset Management Plan 79
Table 6.1.1B: Projected and LTFP Budgeted Renewals and Financing Shortfall – River Torrens and Watercourses
Year Projected renewals ($,000)
LTFP renewal budget ($,000)
Renewal financing shortfall ($,000)
(-ve gap, +ve surplus)
Cumulative shortfall ($,000)
(-ve gap, +ve surplus)
2015 $1,162 $1,162 $0 $0
2016 $1,141 $1,141 $0 $0
2017 $943 $943 $0 $0
2018 $1,066 $1,066 $0 $0
2019 $1,139 $1,126 -$12 -$12
2020 $759 $759 $0 -$12
2021 $1,255 $1,232 -$22 -$35
2022 $746 $734 -$12 -$47
2023 $993 $991 -$2 -$49
2024 $1,215 $1,215 $0 -$49
2025 $1,102 $1,018 -$84 -$133
2026 $1,194 $1,172 -$22 -$155
2027 $1,150 $1,150 $0 -$155
2028 $1,019 $1,005 -$14 -$169
2029 $944 $702 -$242 -$411
2030 $55 $55 $0 -$411
2031 $145 $55 -$90 -$501
2032 $212 $141 -$71 -$572
2033 $124 $67 -$57 -$629
2034 $336 $324 -$12 -$641
Note:Anegativeshortfallindicatesafinancinggap,apositiveshortfallindicatesasurplusforthatyear.
ThetableshowsthatrequiredrenewalexpenditureforRiverTorrensandwatercourseassetsisgenerallyfundedbybudgetexpenditureoverthefirst15yearsoftheplan.Thereisasmallaccumulateddeficitof$169,000overthis15-yearperiodhoweverthisfigureiswellwithintheconfidencelevelsoftheforecastexpenditureoverthatperiodoftime.
Water Infrastructure Asset Management Plan80
Table 6.1.1C: Projected and LTFP Budgeted Renewals and Financing Shortfall – Environmental and Wastewater
Year Projected renewals ($,000)
LTFP renewal budget ($,000)
Renewal financing shortfall ($,000)
(-ve gap, +ve surplus)
Cumulative shortfall ($,000)
(-ve gap, +ve surplus)
2015 $16 $16 $0 $0
2016 $89 $89 $0 $0
2017 $289 $289 $0 $0
2018 $156 $156 $0 $0
2019 $107 $107 $0 $0
2020 $477 $477 $0 $0
2021 $25 $25 $0 $0
2022 $454 $453 $0 $0
2023 $321 $321 $0 $0
2024 $54 $54 $0 $0
2025 $136 $136 $0 $0
2026 $32 $7 -$25 -$25
2027 $221 $82 -$139 -$164
2028 $253 $151 -$102 -$266
2029 $137 $75 -$62 -$328
2030 $91 $91 $0 -$328
2031 $125 $100 -$25 -$353
2032 $537 $332 -$205 -$558
2033 $244 $133 -$112 -$669
2034 $41 $21 -$20 -$690
Note:Anegativeshortfallindicatesafinancinggap,apositiveshortfallindicatesasurplusforthatyear.
Thetableshowsthatrequiredrenewalexpenditureforenvironmentalandwastewaterinfrastructureassetsisfullyfundedbybudgetexpenditureoverthefirst10yearsoftheplan.AccumulateddeficitscommenceafterYear11oftheplanwhensecondandthirdgenerationrenewalsinflatetheaccumulateddeficittoalmost$700,000.Reallocationofrenewalexpenditurebudgetwillberequiredtoeliminatethisgap.
ProvidingservicesinasustainablemannerwillrequirematchingofprojectedassetrenewalandreplacementexpendituretomeetagreedservicelevelswiththecorrespondingcapitalworksprogramaccommodatedintheLTFP.
Agapbetweenprojectedassetrenewal/replacementexpenditureandamountsaccommodatedintheLTFPafterYear11indicatesthatfurtherworkisrequiredintheAssetManagementImprovementPlanonreviewingservicelevelsintheAMPlantomanagerequiredservicelevelsandfundingtoeliminateanyfundinggap.
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6.1.2 Projected expenditures for LTFP
Table6.1.2showstheprojectedexpendituresforthe10-yearLTFP.
Expenditureprojectionsarein2014-15realvalues.
Table 6.1.2A: Projected Expenditures for LTFP ($,000) – Stormwater Drainage Network
Year Operations ($,000)
Maintenance ($,000)
Projected capital renewal
($,000)
Capital upgrade / new ($,000)
Disposals ($,000)
2015 $504 $171 $450 $460 $0
2016 $505 $171 $0 $258 $0
2017 $505 $171 $0 $0 $0
2018 $505 $171 $0 $0 $0
2019 $505 $171 $0 $0 $0
2020 $505 $171 $0 $0 $0
2021 $505 $171 $0 $0 $0
2022 $505 $171 $0 $0 $0
2023 $505 $171 $10 $0 $0
2024 $505 $171 $10 $0 $0
2025 $505 $171 $0 $0 $0
2026 $505 $171 $0 $0 $0
2027 $505 $171 $0 $0 $0
2028 $505 $171 $0 $0 $0
2029 $505 $171 $0 $0 $0
2030 $505 $171 $0 $0 $0
2031 $505 $171 $0 $0 $0
2032 $505 $171 $0 $0 $0
2033 $505 $171 $10 $0 $0
2034 $505 $171 $10 $0 $0
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Table 6.1.2B: Projected Expenditures for LTFP ($,000) – River Torrens and Watercourses
Year Operations ($,000)
Maintenance ($,000)
Projected capital renewal
($,000)
Capital upgrade / new ($,000)
Disposals ($,000)
2015 $93 $70 $1,162 $35 $0
2016 $93 $70 $1,141 $72 $0
2017 $93 $70 $943 $363 $0
2018 $94 $71 $1,066 $329 $0
2019 $95 $72 $1,139 $331 $0
2020 $96 $72 $759 $331 $0
2021 $97 $73 $1,255 $336 $0
2022 $99 $74 $746 $288 $0
2023 $99 $75 $993 $140 $0
2024 $100 $75 $1,215 $124 $0
2025 $100 $75 $1,102 $0 $0
2026 $100 $75 $1,194 $0 $0
2027 $100 $75 $1,150 $0 $0
2028 $100 $75 $1,019 $0 $0
2029 $100 $75 $944 $0 $0
2030 $100 $75 $55 $0 $0
2031 $100 $75 $145 $0 $0
2032 $100 $75 $212 $0 $0
2033 $100 $75 $124 $0 $0
2034 $100 $75 $336 $0 $0
Water Infrastructure Asset Management Plan 83
Table 6.1.2C: Projected Expenditures for LTFP ($,000) – Environmental and Wastewater
Year Operations ($,000)
Maintenance ($,000)
Projected capital renewal
($,000)
Capital upgrade / new ($,000)
Disposals ($,000)
2015 $194 $79 $16 $305 $0
2016 $211 $85 $89 $175 $0
2017 $221 $89 $289 $714 $0
2018 $260 $112 $156 $851 $0
2019 $339 $141 $107 $656 $0
2020 $405 $165 $477 $656 $0
2021 $472 $184 $25 $864 $0
2022 $549 $207 $454 $575 $0
2023 $611 $225 $321 $299 $0
2024 $658 $236 $54 $469 $0
2025 $699 $251 $136 $40 $0
2026 $701 $252 $32 $40 $0
2027 $703 $253 $221 $40 $0
2028 $705 $254 $253 $240 $0
2029 $719 $259 $137 $40 $0
2030 $721 $260 $91 $40 $0
2031 $723 $261 $125 $40 $0
2032 $725 $262 $537 $240 $0
2033 $739 $267 $244 $40 $0
2034 $741 $268 $41 $40 $0
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6.2 Funding Strategy
Afterreviewingservicelevels,asappropriatetoensureongoingfinancialsustainabilityprojectedexpendituresidentifiedinSection6.1.2willbeaccommodatedintheCouncil’s10-yearLTFP.
6.3 Valuation Forecasts
AssetvaluesareforecasttoincreaseasadditionalassetsareaddedtotheassetstockfromconstructionandacquisitionbyCouncilandfromassetsconstructedbylanddevelopersandothersanddonatedtoCouncil.Figures9Ato9Cshowstheprojectedreplacementcostassetvaluesovertheplanningperiodinrealvalues.
Figure 9A: Projected Asset Values – Stormwater Drainage Network
Figure9Aindicatesuniformprojectedassetvaluesforstormwaterdrainagenetworkassetsasexpectedgiventhatminimalnew/upgradedassetsareproposedoverthetermoftheplan.FutureendorsementandimplementationoftheAdelaideDesignManualmayresultinfutureincreasesininfrastructurevaluesasadditionalstormwatercapturemayberequiredtoaccommodatesurfacematerialswhichmaynotprovidesimilarhydrauliccharacteristicstoexistingroad,kerb,andwatertableinfrastructure.
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Figure 9B: Projected Asset Values – River Torrens and Watercourses
Figure9BindicatesaslightgradualincreaseinprojectedassetvaluesforRiverTorrensandwatercourseassetsduetothemodestacquisitionnewassets(temporarywaterstoragesinthesouthParkLands)overthefirst10yearsoftheplan.Projectedassetvaluesnormaliseat$34millionafterYear10oftheplan.
$0
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Figure 9C: Projected Asset Values – Environmental and Wastewater
Figure9Cindicatesarapidincreaseinprojectedassetvaluesforenvironmentalandwastewaterinfrastructureassetsoverthefirst10yearsoftheplanfollowedbyamoremodestincreaseinvaluesafterYear10.ThegraphreflectstherapidincreaseinoverallreplacementcostsastheVictoriaParkWetlands,newwatersensitiveurbandesignfacilities,andnewgrosspollutanttrapsareacquiredatanaccumulatedreplacementcostoverthe10-yearperiodwhichisequivalenttothetotalreplacementcostinYear1.AfterYear10,modestacquisitionnewassets(newgrosspollutanttrapsandwatersensitiveurbandesignfacilities)resultingradualincreaseinprojectedassetvaluesoverthefinal10yearsoftheplan.Overall,projectedassetvaluesmorethandoublesoverthetermoftheplanatanaverageannualgrowthrateof6.5%.
DepreciationexpensevaluesareforecastinlinewithassetvaluesasshowninFigures10Ato10C.
$0
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Figure 10A: Projected Depreciation Expense – Stormwater Drainage Network
Figure10Aindicatesauniformprojecteddepreciationexpenseforstormwaterdrainagenetworkassetsasexpectedgiventhatminimalnew/upgradedassetsareproposedoverthetermoftheplan.
$0
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Figure 10B: Projected Depreciation Expense – River Torrens and Watercourses
Figure10BindicatesaslightgradualincreaseinprojecteddepreciationexpenseforRiverTorrensandwatercourseassetsduetotheadditionaldepreciationfromthemodestacquisitionnewassets(temporarywaterstoragesintheSouthParkLands)overthefirst10yearsoftheplan.Projecteddepreciationexpensenormalisesat$530,000afterYear10oftheplan.
$0
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Figure 10C: Projected Depreciation Expense – Environmental and Wastewater
Figure10Cindicatesarapidincreaseinprojecteddepreciationexpenseforenvironmentalandwastewaterinfrastructureassetsoverthefirst10yearsoftheplanfollowedbyamoremodestincreaseinvaluesafterYear10.Thegraphreflectstherapidincreaseinadditionaldepreciationexpenseasoverallreplacementcostsrapidlyincreaseduetotheacquisitionofnewassetsinthefirst10years(VictoriaParkWetlands,newwatersensitiveurbandesignfacilities,andnewgrosspollutanttraps).AfterYear10,modestacquisitionnewassets(newgrosspollutanttrapsandwatersensitiveurbandesignfacilities)resultingradualincreaseindepreciationexpenseoverthefinal10yearsoftheplan.Overall,projecteddepreciationexpensemorethandoublesoverthetermoftheplanatanaverageannualgrowthrateof6.5%.
Thedepreciatedreplacementcostwillvaryovertheforecastperioddependingontheratesofadditionofnewassets,disposalofoldassets,andconsumptionandrenewalofexistingassets.Forecastoftheassets’depreciatedreplacementcostisshowninFigure11Ato11C.Thedepreciatedreplacementcostofcontributedandnewassetsisshowninthedarkercolourandinthelightercolourforexistingassets.
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Figure 11A: Projected Depreciated Replacement Cost – Stormwater Drainage Network
Thegraphindicatesasteadydeclineofprojecteddepreciatedreplacementcostforstormwaterdrainagenetworkassetsoverthetimeframeoftheplanfrom52%inYear1toaround40%inYear20withlittlecontributionfromnewassets.Thedeclineinprojecteddepreciatedcostisaresultofcontinuedassetconsumptionoverthelifeoftheplanwithlittleassetrenewalactivityandhasbeenbroughtaboutbythetimingoftherequiredrenewalsfallingbeyondthetimeframeoftheplan.Renewalofwaterinfrastructureassetsisbasedoneconomiclivesdeterminedbyoptimalrenewalatlowestlifecyclecosts,thereforetheprojecteddepreciatedreplacementcostwillcontinuetodeclineuntilsuchtimethatrenewalsfalldueafterYear20.
Whiletheshapeofthegraphissimilartoanassetbasewhichisdepreciatingwithinsufficientrenewalexpenditure,thereasonsforadecliningdepreciatedreplacementcostinthiscaseisnotexpenditurefundinglevelsbutmorerelatedtotimingofprojectedcapitalrenewals.DepreciatedReplacementCostwilldeclinetoalevelwhereitismostefficienttoimplementcapitalrenewal.
$0
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Figure 11B: Projected Depreciated Replacement Cost - River Torrens and Watercourses
Figure11BindicatesasteadyincreaseofprojecteddepreciatedreplacementcostforRiverTorrensandwatercourseassetsoverthetimeframeoftheplanfrom35%inYear1tomorethan55%inYear15duetoanelevatedlevelofrenewalofassetsfallingduewithinthefirst15yearsoftheplan.Thereisalsoamodestcontributiontodepreciatedreplacementcostfromnewassetsaccumulatedoverthefirst10yearsoftheplan(temporaryfloodstoragesintheSouthParkLands).Theincreaseinprojecteddepreciatedcostisaresultofcontinuedassetconsumptionoverthelifeoftheplanwithelevatedassetrenewalandhasbeenbroughtaboutbythetimingofasignificantvalueofrequiredrenewalsfallingwithinthefirst15yearsoftheplan.ProjectedDepreciatedReplacementcostdeclinesafterYear15asrequiredrenewallevelsfallbelowaverageannualrenewallevels.
Whiletheinitialshapeofthegraphissimilartoanassetbasewhichisdepreciatingwithexcessiverenewalexpenditure,thereasonsforanincliningdepreciatedreplacementcostinthiscaseisnotexcessiveexpenditurefundinglevelsbutmorerelatedtotimingofprojectedcapitalrenewals.
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Figure 11C: Projected Depreciated Replacement Cost - Environmental and Wastewater
Figure11Cindicatesasteadyincreaseinoverallprojecteddepreciatedreplacementcostforenvironmentalandwastewaterinfrastructureassetsoverthefirst10yearsoftheplanhoweverallofincreasesarearesultoftheacquisitionofahighvaluenewinfrastructureoverthisperiodwhichfloodtheassetbasewithhighvalue,newundepreciatedassets.Thereasonwhythesenewassetshavesuchanimpactonoveralldepreciatedreplacementcostisthatthereplacementcostofthenewassetsinthefirst10yearsoftheplanismorethaninitialreplacementcostoftheoriginalassetbaseinYear1wheredepreciatedreplacementcostmorethandoublesfrom$3,150,000inYear1toalmost$7,000,000inYear10.DepreciatedreplacementcostdeclinesafterYear10astherateofnewassetacquisitionsslowinthelast10yearsoftheplan.
DepreciatedreplacementcostoftheexistingassetbaseinYear1actuallydeclinesoverthetimeframeoftheplanfromaround$2,900,000inYear1to$1,200,000inYear20.Thedeclineinthisprojecteddepreciatedcostisaresultofcontinuedassetconsumptionoverthelifeoftheplanwiththecorrectlevelofrenewalactivityreflectsthattheinitialassetbaseisrelativelyyoungandstartingfromhighlevelofdepreciatedreplacementcost(68%ofreplacementcost).Depreciatedreplacementcostwillcontinuetodeclinetoalevelwhereitismostefficienttoimplementcapitalrenewalatoptimalrenewaltime.
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6.4 Key Assumptions Made in Financial Forecasts
ThissectiondetailsthekeyassumptionsmadeinpresentingtheinformationcontainedinthisAMPlanandinpreparingforecastsofrequiredoperatingandcapitalexpenditureandassetvalues,depreciationexpense,andcarryingamountestimates.Itispresentedtoenablereaderstogainanunderstandingofthelevelsofconfidenceinthedatabehindthefinancialforecasts.
KeyassumptionsmadeinthisAMPlanandrisksthatthesemaychangeareshowninTable6.4.
Table 6.4: Key Assumptions Made in AM Plan and Risks of Change
Key assumptions Risks of change to assumptions
Expenditureforecastsbasedonaccuratevaluationsofassets.
Expenditureforecastsarelikelytobeunderestimatedgiventheintegrityoftheassetvaluationprocessandconfidenceofassetvaluesforwaterinfrastructure.
Usefullivesofindividualassetshavebeenbasedontheassumptionthateconomiclifeisequivalenttophysicallife.
Optimalrenewaldecisionmakinganalysisanddeterminationoftheoptimalrenewal/maintenancemixforsomewaterinfrastructureassetsmaydetermineeconomicliveswhicharemuchshorterthanassumedusefullivesresultinginrequiredrenewalexpendituresbeingbroughtforwardintheLTFP.
Renewal,operations,andmaintenanceexpenditurebudgetsremainconstantinrealtermsoverthetimeframeoftheplan.
Areductioninrenewal,operations,andmaintenanceexpenditurebudgetswillresultinreductioninreliabilityandlevelsofservicefromwaterinfrastructureassets.
MaintenancePlanforwaterinfrastructureassetswillbeexecutedbyPublicRealmandexternalserviceproviders.
IfPublicRealmdonotimplementaMaintenancePlanthencurrentservicelevelswillnotbeachievedandassetsmayhaveconsumptionrateshigherthanthatassumedintheplan.
Water Infrastructure Asset Management Plan94
6.5 Forecast Reliability and Confidence
TheexpenditureandvaluationsprojectionsinthisAMPlanarebasedonbestavailabledata.Currencyandaccuracyofdataiscriticaltoeffectiveassetandfinancialmanagement.Dataconfidenceisclassifiedonafivelevelscale15inaccordancewithTable6.5.
Table 6.5: Data Confidence Grading System
Confidence grade Description
AHighlyreliable Databasedonsoundrecords,procedures,investigations,andanalysis,documentedproperlyandrecognisedasthebestmethodofassessment.Datasetiscompleteandestimatedtobeaccurate±2%.
BReliable Databasedonsoundrecords,procedures,investigations,andanalysis,documentedproperlybuthasminorshortcomings,forexamplesomeofthedataisold,somedocumentationismissing,and/orrelianceisplacedonunconfirmedreportsorsomeextrapolation.Datasetiscompleteandestimatedtobeaccurate±10%.
CUncertain Databasedonsoundrecords,procedures,investigations,andanalysiswhichisincompleteorunsupported,orextrapolatedfromalimitedsampleforwhichgradeAorBdataareavailable.Datasetissubstantiallycompletebutupto50%isextrapolateddataandaccuracyestimated±25%.
DVeryUncertain Dataisbasedonunconfirmedverbalreportsand/orcursoryinspectionsandanalysis.Datasetmaynotbefullycompleteandmostdataisestimatedorextrapolated.Accuracy±40%.
EUnknown Noneorverylittledataheld.
15.IPWEA,2011,IIMM,Table2.4.6,p2|59.
Water Infrastructure Asset Management Plan 95
TheestimatedconfidencelevelforandreliabilityofdatausedinthisAMPlanisshowninTable6.5.1.
Table 6.5.1: Data Confidence Assessment for Data used in Asset Management Plan
Data Confidence assessment
Comment
Demanddrivers Reliable DemanddrivershavebeensourcedfromanumberofCouncilstrategicplansandpoliciesincludingPark Lands Management Strategy,communitylandmanagementplans,Active City,City of Adelaide Strategic Plan 2016 - 20andStateGovernment30-year Plan for Greater Adelaide.
Growthprojections Reliable ProvidedbyCouncil’sStrategicPlanand30-year Plan for Greater Adelaide.Reflectsgrowthprojectionsoverlastfiveyears.
Operationsexpenditures
Reliable OperationsexpendituresfortheWaterInfrastructureAssetClassprovidedbyPublicRealmhavebeenidentifiedreviewedandquantified/justified.
Maintenanceexpenditures
Uncertain MaintenanceexpendituresfortheWaterInfrastructureAssetClassprovidedbyPublicRealmhaveinsufficientinformationtobeidentifiedforeachassettype,typeofworkcarriedout,andjustificationofcostsasrequiredintheMaintenancePlanforwaterinfrastructureassets.
Projectedrenewalexpenditures-Assetvalues
VeryUncertain Lowconfidenceinassetvaluesduetounknownmethodsofrevaluationresultinginsimilarassetvaluestothosecarriedoutsevenyearspreviously.Assetvaluesarelikelytobeundervaluedwhencomparedtocurrentassethandovervaluesandvaluations(economicanalysis)carriedoutaspartoffeasibilityinvestigationsforfutureassetrenewals.
-Assetresidualvalues NA Therearenoassetresidualvaluesusedinthisplan.
-Assetusefullives Reliable Usefullivesfor80%ofwaterinfrastructureassetsbyreplacementcostbasedondetailedconditionanalysisanddeterminationofremaininglife.AllassetswithintheassetclasshaveaccurateacquisitiondatesderivedfromCouncildesignandconstructionrecords.
-Conditionmodelling HighlyReliable Modellingofconditionofstormwaterdrainagenetwork(80%ofwaterinfrastructureassetsbyreplacementcost)undertakenbyCCTVInspectiontoWSA05-2013andIPWEA:NAMSPracticeNote5.
-Networkrenewals Reliable Highconfidenceofconditionandpredictedrenewaldate.Inspectionandinvestigationofnetworkrenewalsinthisplanconfirmedassetsinverypoorconditionanddueforrenewal.
-Defectrepairs NA Therearenospecificdefectrepairsidentifiedaspartofthisplan.
Upgrade/newexpenditures
Reliable Valuesbasedonsoundeconomicanalysisfromfeasibilityandconceptdesigninvestigationsandrecentconstructioncostsfromprojecthandovers.
Disposalexpenditures NA Therearenodisposalexpendituresusedinthisplan.
Water Infrastructure Asset Management Plan96
7.1 Status of Asset Management Practices
7.1.1 Accounting and financial systems
Council’scorporatefinancesystemisTechnologyOneEnterpriseSuiteFinanceSystem.Financetransactionsrelatingtoassetmanagementincludingoperations,maintenance,andrenewalandcapitalisationexpendituresareallmanagedbythissystem.FinancialforecastingincludingcompilationofLTFPsareundertakenbyCouncil’sFinanceandRiskProgram.
Accountabilities for financial systems
ResponsibilityforCouncil’sTechnologyOneEnterpriseSuiteFinanceSystemisCouncil’sFinanceandRiskProgram.AssetManagersareresponsibleforfinancialdatainputandfinancialforecastsoffuturecapitalrenewalexpenditure.
Accounting standards and regulations
Thefollowingaccountingstandardsandregulationshavebeenusedincompilingthisplan:
• Australian Infrastructure Financial Management Guidelines 2010;
• Australian Accounting Standard AASB-113 Fair Value Measurement;and
• Australian Accounting Standard AASB-116 Property Plant and Equipment.
Capital / maintenance threshold
Corporatepolicyforcapitalisationthresholdis$5,000.Thispolicyiscurrentlyunderreview.
Required changes to accounting financial systems arising from this AM Plan
Accuraterecordingofoperationsandmaintenancecostsagainstassets.
7.1.2 Asset management system
ThereisuncertaintyonthecurrentfocusofassetmanagementsystemsatCouncilwithHansenIMSandRoadAssessmentandMaintenanceManagement(RAMM)systemsbothusedforrecordingassetregistersandmanagingassetrenewal,depreciation,andmaintenance.NeitherofthesesystemscouldprovideuptodateassetinformationrequiredtoprovideaccurateAssetRegisterdataforthisAMPlan.
Intheinterim,waterinfrastructureassetregistershavebeentransferredtoanexcelspreadsheetTRIMRefACC2015/102170.
Asset registers
AcompletesetofwaterinfrastructureassetregistersforundertakingtherenewalforecastingforthisAMPlanwascompiledin2013-14inanExcelspreadsheet.
TheseassetregistersweremodifiedwithacquisitionsanddisposalsfrommostofthecapitalhandoverinformationincompilingtheAssetRegisterforthisplan.Corporateassetregisterswillstillberequireupdatingwithprojecthandoverinformationinthefuture.
Linkage from asset management to financial system
SelectionofaCorporateAssetManagementSystemwillneedtoincorporatelinkagewithCouncil’sTechnologyOneFinancialSystemparticularlyintheareaofcapturingactualoperations,maintenance,andrenewalexpenditurestologagainstassetsintheproposedCorporateAssetManagementSystem.
7. PLAN IMPROVEMENT AND MONITORING
Water Infrastructure Asset Management Plan 97
Accountabilities for asset management system and data maintenance
Council’sAssetSystemsTeamisresponsibleformanagementoftheAssetManagementSystemanddatamaintenance.AssetManagersandPublicRealmstaffareresponsibleforprovidingdataandinformationforthissystemincludingassethandoverinformationforupdatingassetregisters,financialandworksinformationforoperationsandmaintenance,andplanningoffuturerenewalexpenditures.
Required changes to asset management system arising from this AM Plan
AcleardirectiononafutureCorporateAssetManagementSystemframeworkiscurrentlybeingdevelopedanditisunderstoodthatthiswilllikelybeagroupofintegratedsystemsratherthanasingleCorporateAssetManagementSystem.Itwillbeveryimportanttoconsultwiththeendusers(AssetManagersandPublicRealm)duringtheselectionprocess.
7.2 Improvement Plan
TheAssetManagementImprovementPlangeneratedfromthisAMPlanisshowninTable7.2.
Table 7.2: Improvement Plan
Task no. Task Responsibility Resources required Timeline
1 ReviewofunitratesandassetvaluationsforWaterInfrastructureAssetClass.
AssetConsultantWater/AssetSystemsTeam
Internal 6months
2 UndertakeconditionassessmentofsubmergedearthretainingstructuresinTorrensLake.
AssetConsultantWater SpecialisedConsultant 12months
3 ReviewAMPlanforWaterInfrastructureAssetClass.
AssetConsultantWater/PublicRealm
Internal 9months
4 Analyserenewal/maintenancemixforwaterinfrastructureassetstodetermineeconomiclifeofassetsbasedonoptimalrenewalatlowestlifecyclecosts.
AssetConsultantWater/PublicRealm
Internal 12months
5 UndertakeCCTVconditionassessmentofotherstormwaterdrainagenetworkassetssuchasinletpitsandmanholes.
AssetConsultantWater SpecialisedConsultant 24months
6 UndertakeconditionassessmentofRiverTorrensandwatercourseassetsotherthansubmergedearthretainingstructuresinTorrensLake.
AssetConsultantWater SpecialisedConsultant 24months
7 Analysewaterinfrastructureassetregisters,correct2014RAMMconversiondataerrors,lostdataandensure2009-14handoverdataispresent.
AssetConsultantWater/AssetSystemsTeam
Internal 3Months
8 FinaliseconversionofHansenIMSassetregisterstoARC-ViewGISdatabases.
AssetConsultantWater/AssetSystemsTeam
Internal 3Months
9 Undertakecustomersatisfaction/communitylevelsofserviceassessmentsurveyforinfrastructureassets,buildingassets,andopenspaceassetsusingIPWEA Practice Note 8.
InfrastructureManagementTeam
External 12months
10 AgreeonandimplementReactive and Scheduled Maintenance Plan’sKPIsincludingcompilationofcustomercomplaintsandreactivemaintenanceactivitiescarriedout.
PublicRealm,CustomerService,AssetConsultantWater
Internal 12months
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7.3 Monitoring and Review Procedures
ThisAMPlanwillbereviewedduringannualbudgetplanningprocessesandamendedtorecogniseanymaterialchangesinservicelevelsand/orresourcesavailabletoprovidethoseservicesasaresultofbudgetdecisions.
TheAMPlanwillbeupdatedannuallytoensureitrepresentsthecurrentservicelevel,assetvalues,projectedoperations,maintenance,capitalrenewalandreplacement,capitalupgrade/newandassetdisposalexpenditures,andprojectedexpenditurevaluesincorporatedintotheorganisation’sLTFP.
TheAMPlanhasalifeoffouryears(Councilelectioncycle)andisdueforcompleterevisionandupdatingwithin12monthsofeachCouncil/Boardelection.
7.4 Performance Measures
TheeffectivenessoftheAMPlancanbemeasuredinthefollowingways:
• ThedegreetowhichtherequiredprojectedexpendituresidentifiedinthisAMPlanareincorporatedintoCouncil’sLTFP;
• Thedegreetowhichonetofiveyeardetailedworksprograms,budgets,businessplans,andorganisationalstructurestakeintoaccountthe‘global’worksprogramtrendsprovidedbytheAMPlan;
• Thedegreetowhichtheexistingandprojectedservicelevelsandserviceconsequences(whatwecannotdo),risks,andresidualrisksareincorporatedintotheCouncil’sStrategicPlanandassociatedplans;and
• TheAssetRenewalFundingRatioachievingthetargetof1.0.
Water Infrastructure Asset Management Plan 99
8. REFERENCES
TheCityofAdelaide,2012,Adelaide City Council - The Corporation Plan 2012 - 16,www.adelaidecitycouncil.com/assets/Policies-Papers/docs/PLAN-Corporation-Plan-2012-16.pdf
TheCityofAdelaide,2012,The City of Adelaide Strategic Plan 2012 - 16,www.adelaidecitycouncil.com/assets/Policies-Papers/docs/STRATEGY-strategic-plan-july-2012-16.pdf
TheCityofAdelaide,2011,Active City Policy,www.adelaidecitycouncil.com/assets/Policies-Papers/docs/POLICY-active-city.pdf
TheCityofAdelaide,2012,The City of Adelaide Smart Move Transport and Movement Strategy 2012 - 22,www.adelaidecitycouncil.com/assets/Policies-Papers/docs/STRATEGY-smart-move-2012-22.pdf
TheCityofAdelaide,2014,Adelaide Park Lands Management Strategy – Towards 2020,www.adelaideparklands.com.au/assets/parklands_management_strategy.pdf
TheCityofAdelaide,ParkLandcommunitylandmanagementplans(various)
TheCityofAdelaide,2014,Development Plan Adelaide (City),www.adelaidecitycouncil.com/assets/acc/Business/docs/30_January_2014_-_Adelaide_Council_Development_Plan.PDF
WaterServicesAssociationofAustralia,2013,WSA 05-2013 Conduit Inspection Reporting Code of Australia Version 3.1, www.wsaa.asn.au/shop/product/5646
IPWEA,2015,Condition Assessment and Asset Performance Guidelines – Stormwater Drainage – Practice Note 5,www.ipwea.org/publications/bookshop/ipweabookshop/practicenotes/practicenote5
IPWEA,2006,International Infrastructure Management Manual,InstituteofPublicWorksEngineeringAustralia,Sydney,www.ipwea.org.au/IIMM
IPWEA,2008,NAMS.PLUS Asset Management,InstituteofPublicWorksEngineeringAustralia,Sydney,www.ipwea.org.au/namsplus
IPWEA,2009,Australian Infrastructure Financial Management Guidelines,InstituteofPublicWorksEngineeringAustralia,Sydney,www.ipwea.org.au/AIFMG
IPWEA,2011,International Infrastructure Management Manual,InstituteofPublicWorksEngineeringAustralia,Sydney,www.ipwea.org.au/IIMM
Water Infrastructure Asset Management Plan100
Appendix A MaintenanceResponseLevelsofService
Appendix B Projected10-yearCapitalRenewalandReplacementWorksProgram
Appendix C Projected10-yearCapitalUpgrade/NewWorksProgram
Appendix D LTFPBudgetedExpendituresAccommodatedinAMPlan
Appendix E Abbreviations
Appendix F Glossary
9. APPENDICES
Water Infrastructure Asset Management Plan 101
Appendix A: Maintenance Response Levels of Service
Headwalls
Water Infrastructure Asset Management Plan102
Appendix A: Maintenance Response Levels of Service continued
Stormwater Manholes
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Appendix A: Maintenance Response Levels of Service continued
Activity specification
Stormwatermanholes.
Activity objectives (What work is included?)
Tomaintainstormwatermanholechambersandpitcoversensuringasafestandardoffootpath/roadandtonotifyexternalassetowners(i.e.Telstra)ofhazardouspitcovers.
Activity definition (What we do?)
Dangerouspitcoversmaintenanceincludes:
• Replacingmissingpitcovers;
• Realignmisalignedpitcovers;
• Removingtripandsliphazards;and
• Notificationofhazardouspitcoverstoassetowner.
Performance defects (What do we look for?)
• Missingpitcovers;
• Horizontalandverticalmisalignedpitcovers;
• Triphazard;and
• Sliphazard.
Key performance indicators (What do we look for?)
80%compliancewithperformancestandards.
Water Infrastructure Asset Management Plan104
Appendix A: Maintenance Response Levels of Service continued
Performance standards – dangerous pit covers intervention levels and required response time
Defect – Broken / Missing Pit Covers
Area Any
Highrisk 1day
Mediumrisk 3days
Lowrisk 7days
Defect – Horizontal Misalignment
Area Step height >50 mm Step height 25 - 50 mm Step height < 25 mm
Highrisk 1week 1month 3months
Mediumrisk 1month 3months 6months
Lowrisk 3months 6months 12months
Defect – Vertical Misalignment
Area Misalignment >50 mm Misalignment 25 - 50 mm Misalignment < 25 mm
Highrisk 1week 1month 3months
Mediumrisk 1month 3months 6months
Lowrisk 3months 6months 12months
Defect – Trip Hazard
Area Height > 30mm Height 10 - 30mm Height < 10mm
Highrisk 3day 2weeks Monitor
Mediumrisk 1week 1month Monitor
Lowrisk 1month 2months Monitor
Defect – Slip Hazard
AreaSurface > 25% by area for the 20m length
Surface 5 - 25% by area for the 20m length
Surface <5% by area for the 20m length
Highrisk 1week 1month 3months
Mediumrisk 2weeks 2months 6months
Lowrisk 1month 3months 12months
Water Infrastructure Asset Management Plan 105
Appendix A: Maintenance Response Levels of Service continued
Stormwater Inlet Pits
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Appendix A: Maintenance Response Levels of Service continued
Activity specification
Stormwaterinletpits.
Activity objectives (What work is included?)
Tomaintainthestormwaternetworktoensureeffectivemovementofstormwaterrun-offthroughoutthecityofAdelaide.
Activity definition (What we do?)
Stormwatermaintenanceincludes:
• Replacemissingdangerousinletgrate;
• Repairmisaligned,collapsedorbrokenpitcovers/lids;and
• Repairbroken,collapsedpipes.
Performance defects (What do we look for?)
• Missing,collapsedorbrokenpitcovers;
• Broken/collapsedpipes;and
• Misalignedinletgrate.
Key performance indicators (What do we look for?)
80%compliancewithperformancestandards.
Performance Standards – Stormwater Intervention Levels and Required Response Time
Defects Intervention level Action to be takenResponse time
Hazardous Non hazardous
Missing,collapsedorbrokenpitcovers/grate
Any Replace 1day 1week
Broken/collapsedpipes Any Replace 1day 1week
Misalignedinletgrate Any Repair 1day 1week
Water Infrastructure Asset Management Plan 107
Appendix A: Maintenance Response Levels of Service continued
Torrens Lake Water Mixers (Aerators)
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Appendix A: Maintenance Response Levels of Service continued
Activity specification
TorrensLakewatermixers(aerators).
Activity objectives (What we do?)
CouncilaimstoeffectivelymaintainTorrensLakeaeratorstoensuretheyremainoperational.
Activity definition (What work is required?)
Thereare14aeratorsinstalledintheTorrensLakethatareinoperationbetweenSeptemberandMay.
Workunderthisactivityincludes:
• Maintainingthepowersupplytoaerators;
• Removalofaeratorsforrepairs;
• Servicing/oilchanges;
• Respondtoaeratordisruptionaftermajorstorms;
• Cleardebrisfromaerators;and
• Replacementofanywornorbrokenparts.
Performance defects (What do we look for?)
• Powersupplydefects:
– Lossofpowersupply;
– Thepowersupplyisnotadequateand/orisfaulty;or
– Thepowerlinetotheaeratorhasbeencut.
• Motordefects:
– Aeratormotorisnotoperating;or
– Motorisnotoperatingatfullcapacity.
Performance standards (What is required?)
Power Supply Defects
Referstothesupplyofpowertotheaerator.
In standard Compulsory intervention
Thepowersupplyisactiveattherequiredlevel. Thepowersupplyisfaultyornotactive.
Motor Defects
Referstotheoperationofthemmotor.
In standard Intervention
Themotorisoperatingatmanufacturer’sspecification. Themotorisnotoperatingatrequiredcapacity.
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Appendix A: Maintenance Response Levels of Service continued
Defects and interventions (What is required?)
Power supply defects High
Withinstandard Nointervention.
Intervention Within10workingdaysoffirstreport.
Compulsoryintervention Within5workingdaysoffirstreport.
Motor defects High
Withinstandard Nointervention.
Intervention Within10workingdaysoffirstreport.
Compulsoryintervention Within5workingdaysoffirstreport.
Structural defects High
Withinstandard Nointervention.
Intervention Within10workingdaysoffirstreport.
Compulsoryintervention Within5workingdaysoffirstreport.
Performance standards (What is required?)
• Electricalinspectionsshouldbecarrieddailyduringoperatingmonths(SeptembertoMay)toensureaeratorsareoperating;
• Scheduledpreventativemaintenanceonaeratorsshouldbecarriedoutevery12months;
• Recordsofrepairsandmaintenancetobedocumentedandrecordskept;
• ‘Firstreport’isthetimewhenCouncilbecomesawareofanissue;and
• Aeratorsdeemedasignificantriskmustbeattendedtowithinonehouroffirstreportduringbusinesshours,orwithinonehourofthenextworkingdayifreportedoutsideofbusinesshours(7.00amto6.00pm).
Key performance indicators (What do we look for?)
• 90%compliancewiththeperformancestandard;and
• Anannualreductionincomplaintsandinjuries.
Water Infrastructure Asset Management Plan110
Appendix A: Maintenance Response Levels of Service continued
Torrens Lake Earth Retaining Structures
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Appendix A: Maintenance Response Levels of Service continued
Torrens Lake Boat Landings
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Appendix A: Maintenance Response Levels of Service continued
Gross Pollutant Traps
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Appendix A: Maintenance Response Levels of Service continued
Activity specification
Grosspollutanttraps.
Activity objectives (What we do?)
Councilaimstoeffectivelymaintaingrosspollutanttrapstoensuretheyremainsufficientlycleartoenablepollutantstobetrapped.
Activity definition (What work is required?)
Worksunderthisactivityinclude:
• Scheduledinspections;
• Removalofsilt,vegetationrubbish,anddebris;and
• Reinforceandorrepairdeterioratingstructures/nets.
Performance defects (What do we look for?)
• Debrisbuild-updefects:
– Buildofsilt,vegetationrubbish,anddebris.
• Structuraldefects:
– Netiswornorripped;
– Netispartiallyorcompletelyremovedfromtrap;or
– Thenetmountingsareloose,ordamaged.
Performance standards (What is required?)
Debris Build-up Defects
Referstothebuild-upofdebrisingrosspollutanttraps.
In standard Intervention Compulsory intervention
Pollutantnetis0%-20%full. Pollutantnetis20%-40%full. Pollutantnetismorethan40%full.
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Appendix A: Maintenance Response Levels of Service continued
Defects and interventions (What is required?)
Debris build-up defects High
Withinstandard Nointervention.
Intervention Within20workingdaysoffirstreport.
Compulsoryintervention Within5workingdaysoffirstreport.
Structural defects High
Withinstandard Nointervention.
Intervention Within15workingdaysoffirstreport.
Compulsoryintervention Within5workingdaysoffirstreport.
Performance standards (What is required?)
• Scheduledemptyingofgrosspollutanttrapsmustbecarriedouteverysixmonths;
• Recordsofrepairsandmaintenancetobedocumentedandrecordskept;
• ‘Firstreport’isthetimewhenCouncilbecomesawareofanissue;
• Grosspollutanttrapsthatposeasignificantriskmustbecordonedoffusingbarriermeshforrepairs;and
• Unsafegrosspollutanttrapsmustbeattendedtowithinonehouroffirstreportduringbusinesshours,orwithinonehourofthenextworkingdayifreportedoutsideofbusinesshours(7.00amto6.00pm).
Key performance indicators (What do we look for?)
• 90%compliancewiththeperformancestandard;and
• Anannualreductionincomplaintsandinjuries.
Water Infrastructure Asset Management Plan 115
Gross Pollutant Traps - Full - Compulsory Intervention
Gross Pollutant Traps - Full - Compulsory Intervention
Appendix A: Maintenance Response Levels of Service continued
Gross Pollutant Traps - Full
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Appendix A: Maintenance Response Levels of Service continued
Torrens Lake Weir
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Appendix A: Maintenance Response Levels of Service continued
Activity specification
TorrensLakeWeir.
Activity objectives (What we do?)
CouncilaimstomaintaintheTorrensLakeWeirtoensureitremainsoperational.
Activity definition (What work is required?)
Workunderthisactivityincludes:
• Scheduledinspections;
• MaintainingthepowersupplytoWeir;
• Servicing/oilchanges;
• Replacementofanywornorbrokenparts;and
• Maintenanceofpedestrianbridge.
Performance defects (What do we look for?)
• Electricaldefects:
– ThereisnopowerattheWeir;
– Thepowersupplyisnotadequateand/orisfaulty;
– Electroniccontrolsystemisnotoperating;and
– Electronicgaugesandwarningsysteminnotoperating.
• Mechanicaldefects:
– Watergatesarenotclosedcorrectly;
– Watergateswillnotfreelyopenandclose;and
– Manualopeningandclosingmechanismisnotmovingfreely.
• Structuraldefects:
– Significantcracksincement;
– Debrisbuild-upaffectingwaterflow;and
– HandrailisnotsecurelyfixedtoWeir.
• Structuraldefects(pedestrianbridge):
– Worn,broken,looseormissingparts;
– Looseormissingboltssecuringtimberplanks;
– Timberrotorvisiblecracking,warping,bowingorsplittingoftimber;
– Bent,missingordamagedrailguards;and
– Vandalism.
Water Infrastructure Asset Management Plan118
Appendix A: Maintenance Response Levels of Service continued
Performance standards (What is required?)
• ScheduledpreventativemaintenanceontheTorrensLakeWeirshouldbecarriedoutmonthlyorasscheduledduetomechanicsorelectronics;
• Recordsofrepairsandmaintenancetobedocumentedandrecordskept;
• ‘Firstreport’isthetimewhenCouncilbecomesawareofanissue;and
• IftheTorrensLakeWeirisdeemedasignificantrisk,itmustbeattendedtowithinimmediately(onehour)offirstreportinoroutofbusinesshours.
Performance standards (What is required?)
Electrical Defects
ReferstotheelectronicgaugesandcontrolsthatoperatetheWeir.
In standard Compulsory intervention
Gaugesandcontrolsareoperating. Gaugesandcontrolsarenotoperating.
Mechanical Defects
ReferstogatesthatregulatetheflowofwaterthroughtheWeir.
In standard Intervention Compulsory intervention
Watergatesopenandclosefreelyandcorrectly.
Watergatesdonotfullyopenorclose. Watergatesarenotopeningorclosing.
Structural Defects
ReferstothestructuralintegrityoftheWeir.
In standard
Weirhasnocracksordebrisbuildup.
Defects and interventions (What is required?)
Electrical defects High
Withinstandard Nointervention.
Intervention Within12hoursoffirstreport.
Compulsoryintervention Within6hoursoffirstreport.
Water Infrastructure Asset Management Plan 119
Appendix A: Maintenance Response Levels of Service continued
Mechanical defects High
Withinstandard Nointervention.
Intervention Within2workingdaysoffirstreport.
Compulsoryintervention Within1workingdaysoffirstreport.
Structural defects High
Withinstandard Nointervention.
Intervention Within15workingdaysoffirstreport.
Compulsoryintervention Within5workingdaysoffirstreport.
Key performance indicators (What do we look for?)
• 90%compliancewiththeperformancestandard;and
• Anannualreductionincomplaintsandinjuries.
Water Infrastructure Asset Management Plan120
Appendix A: Maintenance Response Levels of Service continued
Weirs Below Torrens Lake
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Appendix A: Maintenance Response Levels of Service continued
Stormwater Detention Basins
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Appendix A: Maintenance Response Levels of Service continued
Watercourses
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Appendix B: Projected 10-year Capital Renewal and Replacement Works Program
TABLE DATA NOT SUPPLIED
Water Infrastructure Asset Management Plan124
TABLE DATA NOT SUPPLIED
TABLE DATA NOT SUPPLIED
Water Infrastructure Asset Management Plan 125
TABLE DATA NOT SUPPLIED
TABLE DATA NOT SUPPLIED
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Appendix C: Projected Upgrade / New 10-year Capital Works Program
Stormwater Drainage Network
Year Description Estimate ($,000)
2015 JeffcottStreetdrainage $135
VictoriaParkdrainageimprovements $325
2015 TOTAL $460
2016 ErgoApartmentsstormwater $108
VictoriaParkdrainageimprovements $150
2016 TOTAL $258
River Torrens and Watercourse Assets
Year Description Estimate ($,000)
2015 BrownhillKeswickCreek $35
2016 BrownhillKeswickCreek $72
2017 BrownhillKeswickCreek $363
2018 BrownhillKeswickCreek $329
2019 BrownhillKeswickCreek $331
2020 BrownhillKeswickCreek $331
2021 BrownhillKeswickCreek $336
2022 BrownhillKeswickCreek $288
2023 BrownhillKeswickCreek $140
2024 BrownhillKeswickCreek $124
2015 - 24 TOTAL $2,349
Environmental and Wastewater Infrastructure
Year Description Estimate ($,000)
2015 BrownhillKeswickCreek $65
Watersensitiveurbandesign $40
Grosspollutanttrap $200
2015 TOTAL $305
Water Infrastructure Asset Management Plan 127
Appendix C: Projected Upgrade / New 10-year Capital Works Program continued
Environmental and Wastewater Infrastructure continued
Year Description Estimate ($,000)
2016 BrownhillKeswickCreek $135
Watersensitiveurbandesign $40
2016 TOTAL $175
2017 BrownhillKeswickCreek $674
Watersensitiveurbandesign $40
2017 TOTAL $305
2018 BrownhillKeswickCreek $611
Watersensitiveurbandesign $40
Grosspollutanttrap $200
2018 TOTAL $851
2019 BrownhillKeswickCreek $616
Watersensitiveurbandesign $40
2020 BrownhillKeswickCreek $616
Watersensitiveurbandesign $40
2019 - 20 TOTAL $1,312
2021 BrownhillKeswickCreek $624
Watersensitiveurbandesign $40
Grosspollutanttrap $200
2021 TOTAL $864
2022 BrownhillKeswickCreek $535
Watersensitiveurbandesign $40
2023 BrownhillKeswickCreek $535
Watersensitiveurbandesign $40
2022 - 23 TOTAL $1,150
2024 BrownhillKeswickCreek $229
Watersensitiveurbandesign $40
Grosspollutanttrap $200
2024 TOTAL $469
Water Infrastructure Asset Management Plan128
Appendix D: Budgeted Expenditures Accommodated in LTFP
TABLE DATA NOT SUPPLIED
Water Infrastructure Asset Management Plan 129
TABLE DATA NOT SUPPLIED
Water Infrastructure Asset Management Plan130
TABLE DATA NOT SUPPLIED
Water Infrastructure Asset Management Plan 131
Appendix E: Abbreviations
AAAC Averageannualassetconsumption
AM Assetmanagement
AM Plan Assetmanagementplan
ARI Averagerecurrenceinterval
ASC Annualservicecost
BOD Biochemical(biological)oxygendemand
CRC Currentreplacementcost
CWMS Communitywastewatermanagementsystems
DA Depreciableamount
DRC Depreciatedreplacementcost
EF Earthworks/formation
IRMP Infrastructureriskmanagementplan
LCC Lifecyclecost
LCE Lifecycleexpenditure
LTFP Longtermfinancialplan
MMS Maintenancemanagementsystem
PCI Pavementconditionindex
RV Residualvalue
SoA Stateoftheassets
SS Suspendedsolids
vph Vehiclesperhour
WDCRD Writtendowncurrentreplacementcost
Water Infrastructure Asset Management Plan132
Appendix F: Glossary
Annual service cost (ASC)
1) Reportingactualcost
Theannual(accrual)costofprovidingaserviceincludingoperations,maintenance,depreciation,finance/opportunity, anddisposalcostslessrevenue.
2) Forinvestmentanalysisandbudgeting
Anestimateofthecostthatwouldbetendered,perannum,iftenderswerecalledforthesupplyofaservicetoa performancespecificationforafixedterm.Theannualservicecostincludesoperations,maintenance,depreciation, finance/opportunity,anddisposalcosts,lessrevenue.
Asset
Aresourcecontrolledbyanentityasaresultofpasteventsandfromwhichfutureeconomicbenefitsareexpectedtoflowtotheentity.Infrastructureassetsareasub-classofproperty,plant,andequipmentwhicharenon-currentassetswithalifegreaterthan12monthsandenableservicestobeprovided.
Asset category
Sub-groupofassetswithinaclasshierarchyforfinancialreportingandmanagementpurposes.
Asset class
Agroupofassetshavingasimilarnatureorfunctionintheoperationsofanentity,andwhich,forpurposesofdisclosure,isshownasasingleitemwithoutsupplementarydisclosure.
Asset condition assessment
Theprocessofcontinuousorperiodicinspection,assessment,measurement,andinterpretationoftheresultantdatatoindicatetheconditionofaspecificassetsoastodeterminetheneedforsomepreventativeorremedialaction.
Asset hierarchy
Aframeworkforsegmentinganassetbaseintoappropriateclassifications.Theassethierarchycanbebasedonassetfunctionorassettypeoracombinationofthetwo.
Asset management (AM)
Thecombinationofmanagement,financial,economic,engineering,andotherpracticesappliedtophysicalassetswiththeobjectiveofprovidingtherequiredlevelofserviceinthemostcosteffectivemanner.
Asset renewal funding ratio
Theratioofthenetpresentvalueofassetrenewalfundingaccommodatedovera10-yearperiodinaLongTermFinancialPlanrelativetothenetpresentvalueofprojectedcapitalrenewalexpendituresidentifiedinanAssetManagementPlanforthesameperiod[AIFMGFinancialSustainabilityIndicatorNo8].
Average annual asset consumption (AAAC)*
Theamountofanorganisation’sassetbaseconsumedduringareportingperiod(generallyayear).Thismaybecalculatedbydividingthedepreciableamountbytheusefullife(ortotalfutureeconomicbenefits/servicepotential)andtotalledforeachandeveryassetORbydividingthecarryingamount(depreciatedreplacementcost)bytheremainingusefullife(orremainingfutureeconomicbenefits/servicepotential)andtotalledforeachandeveryassetinanassetcategoryorclass.
Water Infrastructure Asset Management Plan 133
Borrowings
Aborrowingorloanisacontractualobligationoftheborrowingentitytodelivercashoranotherfinancialassettothelendingentityoveraspecifiedperiodoftimeorataspecifiedpointintime,tocoverboththeinitialcapitalprovidedandthecostoftheinterestincurredforprovidingthiscapital.Aborrowingorloanprovidesthemeansfortheborrowingentitytofinanceoutlays(typicallyphysicalassets)whenithasinsufficientfundsofitsowntodoso,andforthelendingentitytomakeafinancialreturn,normallyintheformofinterestrevenue,onthefundingprovided.
Capital expenditure
Relativelylarge(material)expenditure,whichhasbenefits,expectedtolastformorethan12months.Capitalexpenditureincludesrenewal,expansion,andupgrade.Wherecapitalprojectsinvolveacombinationofrenewal,expansion,and/orupgradeexpenditures,thetotalprojectcostneedstobeallocatedaccordingly.
Capital expenditure - expansion
Expenditurethatextendsthecapacityofanexistingassettoprovidebenefits,atthesamestandardasiscurrentlyenjoyedbyexistingbeneficiaries,toanewgroupofusers.Itisdiscretionaryexpenditure,whichincreasesfutureoperationsandmaintenancecosts,becauseitincreasestheorganisation’sassetbase,butmaybeassociatedwithadditionalrevenuefromthenewusergroup,e.g.extendingadrainageorroadnetwork,theprovisionofanovalorparkinanewsuburbfornewresidents.
Capital expenditure - new
Expenditurewhichcreatesanewassetprovidinganewservice/outputthatdidnotexistbeforehand.Asitincreasesservicepotentialitmayimpactrevenueandwillincreasefutureoperationsandmaintenanceexpenditure.
Capital expenditure - renewal
Expenditureonanexistingassetoronreplacinganexistingasset,whichreturnstheservicecapabilityoftheassetuptothatwhichithadoriginally.Itisperiodicallyrequiredexpenditure,relativelylarge(material)invaluecomparedwiththevalueofthecomponentsorsub-componentsoftheassetbeingrenewed.Asitreinstatesexistingservicepotential,itgenerallyhasnoimpactonrevenue,butmayreducefutureoperationsandmaintenanceexpenditureifcompletedattheoptimumtime,e.g.resurfacingorresheetingamaterialpartofaroadnetwork,replacingamaterialsectionofadrainagenetworkwithpipesofthesamecapacity,resurfacinganoval.
Capital expenditure - upgrade
Expenditure,whichenhancesanexistingassettoprovideahigherlevelofserviceorexpenditurethatwillincreasethelifeoftheassetbeyondthatwhichithadoriginally.Upgradeexpenditureisdiscretionaryandoftendoesnotresultinadditionalrevenueunlessdirectuserchargesapply.Itwillincreaseoperationsandmaintenanceexpenditureinthefuturebecauseoftheincreaseintheorganisation’sassetbase,e.g.wideningthesealedareaofanexistingroad,replacingdrainagepipeswithpipesofagreatercapacity,enlargingagrandstandatasportingfacility.
Capital funding
Fundingtopayforcapitalexpenditure.
Capital grants
Moniesreceivedgenerallytiedtothespecificprojectsforwhichtheyaregranted,whichareoftenupgradeand/orexpansionornewinvestmentproposals.
Capital investment expenditure
See‘capitalexpenditure’definition.
Water Infrastructure Asset Management Plan134
Capitalisation threshold
Thevalueofexpenditureonnon-currentassetsabovewhichtheexpenditureisrecognisedascapitalexpenditureandbelowwhichtheexpenditureischargedasanexpenseintheyearofacquisition.
Carrying amount
Theamountatwhichanassetisrecognisedafterdeductinganyaccumulateddepreciation/amortisationandaccumulatedimpairmentlossesthereon.
Class of assets
See‘assetclass’definition.
Component
Specificpartsofanassethavingindependentphysicalorfunctionalidentityandhavingspecificattributessuchasdifferentlifeexpectancy,maintenanceregimes,riskorcriticality.
Core asset management
Assetmanagementwhichreliesprimarilyontheuseofanassetregister,maintenancemanagementsystems,jobresourcemanagement,inventorycontrol,conditionassessment,simpleriskassessment,anddefinedlevelsofservice,inordertoestablishalternativetreatmentoptionsandlong-termcashflowpredictions.Prioritiesareusuallyestablishedonthebasisoffinancialreturngainedbycarryingoutthework(ratherthandetailedriskanalysisandoptimiseddecision-making).
Cost of an asset
Theamountofcashorcashequivalentspaidorthefairvalueoftheconsiderationgiventoacquireanassetatthetimeofitsacquisitionorconstruction,includinganycostsnecessarytoplacetheassetintoservice.Thisincludesone-offdesignandprojectmanagementcosts.
Critical assets
Assetsforwhichthefinancial,businessorservicelevelconsequencesoffailurearesufficientlyseveretojustifyproactiveinspectionandrehabilitation.Criticalassetshavealowerthresholdforactionthannon-criticalassets.
Current replacement cost (CRC)
Thecosttheentitywouldincurtoacquiretheassetonthereportingdate.Thecostismeasuredbyreferencetothelowestcostatwhichthegrossfutureeconomicbenefitscouldbeobtainedinthenormalcourseofbusinessortheminimumitwouldcost,toreplacetheexistingassetwithatechnologicallymodernequivalentnewasset(notasecondhandone)withthesameeconomicbenefits(grossservicepotential)allowingforanydifferencesinthequantityandqualityofoutputandinoperatingcosts.
Deferred maintenance
Theshortfallinrehabilitationworkundertakenrelativetothatrequiredtomaintaintheservicepotentialofanasset.
Depreciable amount
Thecostofanasset,orotheramountsubstitutedforitscost,lessitsresidualvalue.
Depreciated replacement cost (DRC)
Thecurrentreplacementcost(CRC)ofanassetless,whereapplicable,accumulateddepreciationcalculatedonthebasisofsuchcosttoreflectthealreadyconsumedorexpiredfutureeconomicbenefitsoftheasset.
Water Infrastructure Asset Management Plan 135
Depreciation / amortisation
Thesystematicallocationofthedepreciableamount(servicepotential)ofanassetoveritsusefullife.
Economic life
See‘usefullife’definition.
Expenditure
Thespendingofmoneyongoodsandservices.Expenditureincludesrecurrentandcapitaloutlays.
Expenses
Decreasesineconomicbenefitsduringtheaccountingperiodintheformofoutflowsordepletionsofassetsorincreasesinliabilitiesthatresultindecreasesinequity,otherthanthoserelatingtodistributionstoequityparticipants.
Fair value
Theamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingparties,inanarm’slengthtransaction.
Financing gap
Afinancinggapexistswheneveranentityhasinsufficientcapacitytofinanceassetrenewalandotherexpenditurenecessarytobeabletoappropriatelymaintaintherangeandlevelofservicesitsexistingassetstockwasoriginallydesignedandintendedtodeliver.Theservicecapabilityoftheexistingassetstockshouldbedeterminedassumingnoadditionaloperatingrevenue,productivityimprovements,ornetfinancialliabilitiesabovelevelscurrentlyplannedorprojected.Acurrentfinancinggapmeansservicelevelshavealreadyorarecurrentlyfalling.Aprojectedfinancinggapifnotaddressedwillresultinafuturediminutionofexistingservicelevels.
Heritage asset
Anassetwithhistoric,artistic,scientific,technological,geographicalorenvironmentalqualitiesthatisheldandmaintainedprincipallyforitscontributiontoknowledgeandcultureandthispurposeiscentraltotheobjectivesoftheentityholdingit.
Impairment loss
Theamountbywhichthecarryingamountofanassetexceedsitsrecoverableamount.
Infrastructure assets
Physicalassetsthatcontributetomeetingtheneedsoforganisationsortheneedforaccesstomajoreconomicandsocialfacilitiesandservices,e.g.roads,drainage,footpaths,andcycleways.Thesearetypicallylarge,interconnectednetworksorportfoliosofcompositeassets.Thecomponentsoftheseassetsmaybeseparatelymaintained,renewedorreplacedindividuallysothattherequiredlevelandstandardofservicefromthenetworkofassetsiscontinuouslysustained.Generallythecomponentsandhencetheassetshavelonglives.Theyarefixedinplaceandareoftenhavenoseparatemarketvalue.
Investment property
Propertyheldtoearnrentalsorforcapitalappreciationorboth,ratherthanfor:
a) Useintheproductionorsupplyofgoodsorservicesorforadministrativepurposes;or
b) Saleintheordinarycourseofbusiness.
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Key performance indicator
Aqualitativeorquantitativemeasureofaserviceoractivityusedtocompareactualperformanceagainstastandardorothertarget.Performanceindicatorscommonlyrelatetostatutorylimits,safety,responsiveness,cost,comfort,assetperformance,reliability,efficiency,environmentalprotection,andcustomersatisfaction.
Level of service
Thedefinedservicequalityforaparticularservice/activityagainstwhichserviceperformancemaybemeasured.Servicelevelsusuallyrelatetoquality,quantity,reliability,responsiveness,environmentalimpact,acceptability,andcost.
Lifecycle cost (LCC) *
1. Total LCCThetotalcostofanassetthroughoutitslifeincludingplanning,design,construction,acquisition,operation,maintenance,rehabilitation,anddisposalcosts.
2. Average LCC TheLCCisaveragecosttoprovidetheserviceoverthelongestassetlifecycle.Itcomprisesaverageoperations,maintenanceexpenditureplusassetconsumptionexpense,representedbydepreciationexpenseprojectedover10years.TheLCCdoesnotindicatethefundsrequiredtoprovidetheserviceinaparticularyear.
Lifecycle expenditure
Thelifecycleexpenditure(LCE)istheaverageoperations,maintenance,andcapitalrenewalexpenditureaccommodatedintheLong Term Financial Planover10years.LCEmaybecomparedtoaveragelifecyclecosttogiveaninitialindicatorofaffordabilityofprojectedservicelevelswhenconsideredwithassetageprofiles.
Loans / borrowings
See‘borrowings’.
Maintenance
Allactionsnecessaryforretaininganassetasnearaspracticabletoanappropriateservicecondition,includingregularongoingday-to-dayworknecessarytokeepassetsoperating,e.g.roadpatchingbutexcludingrehabilitationorrenewal.Itisoperatingexpenditurerequiredtoensurethattheassetreachesitsexpectedusefullife.
• Planned maintenance Repairworkthatisidentifiedandmanagedthroughamaintenancemanagementsystem(MMS).MMSactivitiesincludeinspection,assessingtheconditionagainstfailure/breakdown,criteria/experience,prioritisingscheduling,actioningthework,andreportingwhatwasdonetodevelopamaintenancehistoryandimprovemaintenanceandservicedeliveryperformance.
• Reactive maintenanceUnplannedrepairworkthatiscarriedoutinresponsetoservicerequestsandmanagement/supervisorydirections.
• Specific maintenanceMaintenanceworktorepaircomponentsorreplacesub-componentsthatneedtobeidentifiedasaspecificmaintenanceiteminthemaintenancebudget.
• Unplanned maintenanceCorrectiveworkrequiredintheshort-termtorestoreanassettoworkingconditionsoitcancontinuetodelivertherequiredserviceortomaintainitslevelofsecurityandintegrity.
Maintenance expenditure *
Recurrentexpenditure,whichisperiodicallyorregularlyrequiredaspartoftheanticipatedscheduleofworksrequiredtoensurethattheassetachievesitsusefullifeandprovidestherequiredlevelofservice.Itisexpenditure,whichwasanticipatedindeterminingtheasset’susefullife.
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Materiality
Thenotionofmaterialityguidesthemarginoferroracceptable,thedegreeofprecisionrequired,andtheextentofthedisclosurerequiredwhenpreparinggeneralpurposefinancialreports.Informationismaterialifitsomission,misstatementornon-disclosurehasthepotential,individuallyorcollectively,toinfluencetheeconomicdecisionsofuserstakenonthebasisofthefinancialreportoraffectthedischargeofaccountabilitybythemanagementorgoverningbodyoftheentity.
Modern equivalent asset
Assetsthatreplicatewhatisinexistencewiththemostcost-effectiveassetperformingthesamelevelofservice.Itisthemostcostefficient,currentlyavailableassetwhichwillprovidethesamestreamofservicesastheexistingassetiscapableofproducing.Itallowsfortechnologychanges,andimprovementsandefficienciesinproductionandinstallationtechniques.
Net present value (NPV)
Thevaluetotheorganisationofthecashflowsassociatedwithanasset,liability,activityoreventcalculatedusingadiscountratetoreflectthetimevalueofmoney.Itisthenetamountofdiscountedtotalcashinflowsafterdeductingthevalueofthediscountedtotalcashoutflowsarisingfrome.g.thecontinueduseandsubsequentdisposaloftheassetafterdeductingthevalueofthediscountedtotalcashoutflows.
Non-revenue generating investments
Investmentsfortheprovisionofgoodsandservicestosustainorimproveservicestothecommunitythatarenotexpectedtogenerateanysavingsorrevenuetotheorganisation,e.g.parksandplaygrounds,footpaths,roadsandbridges,andlibraries.
Operations
Regularactivitiestoprovideservicessuchaspublichealth,safety,andamenity,e.g.streetsweeping,grassmowing,andstreetlighting.
Operating expenditure
Recurrentexpenditure,whichiscontinuouslyrequiredtoprovideaservice.Incommonusethetermtypicallyincludes,e.g.power,fuel,staff,plantequipment,on-costs,andoverheadsbutexcludesmaintenanceanddepreciation.Maintenanceanddepreciationisontheotherhandincludedinoperatingexpenses.
Operating expense
Thegrossoutflowofeconomicbenefits,beingcashandnon-cashitems,duringtheperiodarisinginthecourseofordinaryactivitiesofanentitywhenthoseoutflowsresultindecreasesinequity,otherthandecreasesrelatingtodistributionstoequityparticipants.
Operating expenses
Recurrentexpensescontinuouslyrequiredtoprovideaservice,includingpower,fuel,staff,plantequipment,maintenance,depreciation,on-costs,andoverheads.
Operations, maintenance, and renewal financing ratio
Ratioofestimatedbudgettoprojectedexpenditureforoperations,maintenance,andrenewalofassetsoveradefinedtime(e.g.five,10,and15years).
Operations, maintenance, and renewal gap
DifferencebetweenbudgetedexpendituresinaLongTermFinancialPlan(orestimatedfuturebudgetsinabsenceofaLongTermFinancialPlan)andprojectedexpendituresforoperations,maintenance,andrenewalofassetstoachieve/maintainspecifiedservicelevels,totalledoveradefinedtime(e.g.five,10,and15years).
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Pavement management system (PMS)
Asystematicprocessformeasuringandpredictingtheconditionofroadpavementsandwearingsurfacesovertimeandrecommendingcorrectiveactions.
PMS score
Ameasureofconditionofaroadsegmentdeterminedfromapavementmanagementsystem.
Rate of annual asset consumption *
Theratioofannualassetconsumptionrelativetothedepreciableamountoftheassets.Itmeasurestheamountoftheconsumablepartsofassetsthatareconsumedinaperiod(depreciation)expressedasapercentageofthedepreciableamount.
Rate of annual asset renewal *
Theratioofassetrenewalandreplacementexpenditurerelativetodepreciableamountforaperiod.Itmeasureswhetherassetsarebeingreplacedattheratetheyarewearingoutwithcapitalrenewalexpenditureexpressedasapercentageofdepreciableamount(capitalrenewalexpenditure/DA).
Rate of annual asset upgrade / new *
Ameasureoftherateatwhichassetsarebeingupgradedandexpandedperannumwithcapitalupgrade/newexpenditureexpressedasapercentageofdepreciableamount(capitalupgrade/expansionexpenditure/DA).
Recoverable amount
Thehigherofanasset’sfairvalue,lesscoststosellanditsvalueinuse.
Recurrent expenditure
Relativelysmall(immaterial)expenditureorthatwhichhasbenefitsexpectedtolastlessthan12months.Recurrentexpenditureincludesoperationsandmaintenanceexpenditure.
Recurrent funding
Fundingtopayforrecurrentexpenditure.
Rehabilitation
See‘capitalrenewalexpenditure’definitionabove.
Remaining useful life
Thetimeremaininguntilanassetceasestoprovidetherequiredserviceleveloreconomicusefulness.Ageplusremainingusefullifeisusefullife.
Renewal
See‘capitalrenewalexpenditure’definitionabove.
Residual value
Theestimatedamountthatanentitywouldcurrentlyobtainfromdisposaloftheasset,afterdeductingtheestimatedcostsofdisposal,iftheassetwerealreadyoftheageandintheconditionexpectedattheendofitsusefullife.
Revenue generating investments
Investmentsfortheprovisionofgoodsandservicestosustainorimproveservicestothecommunitythatareexpectedtogeneratesomesavingsorrevenuetooffsetoperatingcosts,e.g.publichallsandtheatres,childcarecentres,sportingandrecreationfacilities,touristinformationcentres.
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Risk management
Theapplicationofaformalprocesstotherangeofpossiblevaluesrelatingtokeyfactorsassociatedwithariskinordertodeterminetheresultantrangesofoutcomesandtheirprobabilityofoccurrence.
Section or segment
Aself-containedpartorpieceofaninfrastructureassetclass.
Service potential
Thetotalfutureservicecapacityofanasset.Itisnormallydeterminedbyreferencetotheoperatingcapacityandeconomiclifeofanasset.Ameasureofservicepotentialisusedinthenot-for-profitsector/publicsectortovalueassets,particularlythosenotproducingacashflow.
Service potential remaining
Ameasureofthefutureeconomicbenefitsremaininginassets.Itmaybeexpressedindollarvalues(FairValue)orasapercentageoftotalanticipatedfutureeconomicbenefits.Itisalsoameasureofthepercentageoftheasset’spotentialtoprovideservicesthatisstillavailableforuseinprovidingservices(DepreciatedReplacementCost/DepreciableAmount).
Specific maintenance
Replacementofhighervaluecomponents/sub-componentsofassetsthatisundertakenonaregularcycleincludingrepaintingorreplacementofairconditioningequipment.Thisworkgenerallyfallsbelowthecapital/maintenancethresholdandneedstobeidentifiedinaspecificmaintenancebudgetallocation.
Strategic Longer-Term Plan
Aplancoveringthetermofofficeofcouncillors(fouryearsminimum)reflectingtheneedsofthecommunityfortheforeseeablefuture.ItbringstogetherthedetailedrequirementsintheCouncil’slonger-termplanssuchastheAsset Management PlanandtheLong Term Financial Plan.TheplanispreparedinconsultationwiththecommunityanddetailswheretheCouncilisatthatpointintime,whereitwantstogo,howitisgoingtogetthere,mechanismsformonitoringtheachievementoftheoutcomes,andhowtheplanwillberesourced.
Sub-component
Smallerindividualpartsthatmakeupacomponentpart.
Useful life
Either:
a)Theperiodoverwhichanassetisexpectedtobeavailableforusebyanentity,or
b)Thenumberofproductionorsimilarunitsexpectedtobeobtainedfromtheassetbytheentity.
Itisestimatedorexpectedtimebetweenplacingtheassetintoserviceandremovingitfromservice,ortheestimatedperiodoftimeoverwhichthefutureeconomicbenefitsembodiedinadepreciableasset,areexpectedtobeconsumedbytheorganisation.
Value in use
Thepresentvalueoffuturecashflowsexpectedtobederivedfromanassetorcashgeneratingunit.Itisdeemedtobedepreciatedreplacementcost(DRC)forthoseassetswhosefutureeconomicbenefitsarenotprimarilydependentontheasset’sabilitytogeneratenetcashinflows,wheretheentitywould,ifdeprivedoftheasset,replaceitsremainingfutureeconomicbenefits.
Source:IPWEA,2009,AIFMGGlossary
Additional and modified glossary items shown *
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