WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN · WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN. ... •...

140
WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN

Transcript of WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN · WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN. ... •...

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WATER INFRASTRUCTURE ASSET MANAGEMENT PLAN

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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

$0

$500

$1,000

$1,500

$2,000

$2,500

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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.

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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.

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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.

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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.

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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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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.

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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.

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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).

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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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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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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.

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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%

20%

40%

60%

80%

100%

120%

Planning Period

5 Year

102% 102%

51%

10 Year Long Term Average(using 10 year planned outlays)

Comparison of LTFP outlays as a % of projected requirements

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Figure 7-1B: Asset Management Financial Indicators – River Torrens and Watercourses

ThegraphindicatesthatlifecyclecostsforRiverTorrensandwatercourseassetsarefullyfundedoverthefirst10yearsoftheplanhoweveritappearsthattheplanproposestooverfundlifecyclecostsinthelongterm.Thelongtermratio(181%)isinvalidinthiscaseasitdoesnottakeintoaccountthetimingofrequiredrenewals.Unlikethestormwaterdrainagenetworkgroup,thisassetgrouphasadisproportionateofrenewalsfallingdueoverthetermofthisplanthereforeexpenditurewellabove(181%)theaveragerequiredlifecyclecostswillbeneededoverthetermoftheplan.Despitethiselevatedexpenditure,wewillstillonlymeet95%ofalllifecyclecostsasthereisasmallamountofunfundedadditionaloperationsandmaintenanceresultingfromtheacquisitionofnewassetsoverthefirst10yearsoftheplan.

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Planning Period

5 Year

100% 99%

181%

10 Year Long Term Average(using 10 year planned outlays)

Comparison of LTFP outlays as a % of projected requirements

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Figure 7-1C: Asset Management Financial Indicators – Environmental and Wastewater

Thegraphindicatesthatlifecyclecostsforenvironmentalandwastewaterassetsshowagradualreductionoffundingofrequiredexpenditure.AllrenewalsarefullyfundedovertheshortandlongtermhoweverdisproportionateadditionaloperationsandmaintenancecostsresultingfromsignificantacquisitionofnewassetsoverthetermoftheplanarenotfundedandthisunfundedamountincreasesasCouncilacquiresmoreassetsthroughYear1toYear10oftheplanresultinginadecliningsustainabilityindicator.Itisproposedtoaddresstheshortfallinoperationsandmaintenancecostsforthisassetgroupasdiscussedelsewhereintheplan.

0%

20%

40%

60%

80%

100%

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

20

40

60

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120

Planning Period

5 Year

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.

$0

$100

$200

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Projected Renewals Planned Renewals

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Figure 8B: Projected and LTFP Budgeted Renewal Expenditure – River Torrens and Watercourses

Figure8BindicatesaconsistentlevelofelevatedrenewalofRiverTorrensandwatercourseassetsoverthefirst15yearsoftheplanwhichisareflectionofthetimingofrequiredrenewalsforthisassetgroup.Budgetexpenditurehasbeenallocatedforthemajorityofrenewals,particularlyinthefirst10yearsoftheplan.RequiredrenewalsrevertbacktoaverageexpenditureafterYear15.

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Budgeted Expenditure

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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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Projected Renewals Planned Renewals20

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Budgeted Expenditure

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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.

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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.

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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

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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.

$0

$10,000

$20,000

$30,000

$40,000

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$90,000

$100,000

CR

C ($

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Year

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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.

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Figure 10B: Projected Depreciation Expense – River Torrens and Watercourses

Figure10BindicatesaslightgradualincreaseinprojecteddepreciationexpenseforRiverTorrensandwatercourseassetsduetotheadditionaldepreciationfromthemodestacquisitionnewassets(temporarywaterstoragesintheSouthParkLands)overthefirst10yearsoftheplan.Projecteddepreciationexpensenormalisesat$530,000afterYear10oftheplan.

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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.

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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.

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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.

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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.

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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

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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.

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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

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Appendix A MaintenanceResponseLevelsofService

Appendix B Projected10-yearCapitalRenewalandReplacementWorksProgram

Appendix C Projected10-yearCapitalUpgrade/NewWorksProgram

Appendix D LTFPBudgetedExpendituresAccommodatedinAMPlan

Appendix E Abbreviations

Appendix F Glossary

9. APPENDICES

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Appendix A: Maintenance Response Levels of Service

Headwalls

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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.

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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

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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

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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.

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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.

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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.

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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.

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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.

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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

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TABLE DATA NOT SUPPLIED

TABLE DATA NOT SUPPLIED

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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

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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

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Appendix D: Budgeted Expenditures Accommodated in LTFP

TABLE DATA NOT SUPPLIED

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TABLE DATA NOT SUPPLIED

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TABLE DATA NOT SUPPLIED

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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

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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.

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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.

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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.

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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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