Asset Conditions

In 2015 an Asset Management Audit Preparedness Assessment was performed by Council’s Auditor on behalf of the Office of Local Government. The assessment identified areas for improvement and an action plan has been implemented to address these.

Condition assessments for assets are undertaken using the Institute of Public Works Engineering Australasia’s (IPWEA) International Infrastructure Management Manual (IIMM) recommended 5-point scale:

Condition 1 Very Good Condition – No work required (normal maintenance) Condition 2 Good Condition – Only minor maintenance work required Condition 3 Fair or Moderate Condition – Maintenance work required Condition 4 Poor Condition – Renewal/Replacement required Condition 5 Very Poor Condition – Urgent Renewal/Replacement required

The graph following demonstrates that most Council’s assets are in good to fair or moderate condition.

To define what condition ratings are acceptable, Council will take into consideration the following:

• Community views/acceptance • Establishing asset standards necessary to provide and support desired levels of service now and into the future • Determining appropriate and sustainable levels of maintenance and renewals/upgrades • Risk hazard and risk reduction requirements

Management strategies for assets in ‘poor’ condition (rating 4 and 5) are detailed in each individual Asset Management Plan. There are considerable costs associated with the renewal and/or upgrade of these assets noting that not all will necessarily be required to be renewed. Any that should have already been renewed but due to funding limitation have not, are deemed as backlog works. Any delay in carrying out these works could result in increased annual operation and maintenance cost as well as increased risks and consequences of failure.

The Table below is an extract from the Report on Infrastructure Assets included in the Special Schedules of the Annual Financial Statements for 2020/21. This indicates the cost to bring councils infrastructure assets to a satisfactory standard is currently $87.7M.

Asset Group 2020/21 Cost to Bring to Satisfactory

2020/21 Required Annual Maintenance

2020/21 Actual Maintenance

2020/21 Asset Maintenance Gap

Buildings

$ 4,488,000 $ 715,000 $ 1,490,000 ($ 775,000) Other Structures $492,000 $363,000 $346,000 $17,000 Roads $21,845,000 $8,496,000 $8,248,000 $248,000 Water Supply Network $ 13,023,000 $ 2,197,000 $ 2,704,000 ($ 507,000) Sewerage Network $31,667,000 $2,606,000 $2,574,000 $32,000 Stormwater Drainage $14,222,000 $1,284,000 $863,000 $421,000 Open Space & Facilities $ 1,176,000 $ 3,281,000 $ 3,234,000 $ 47,000 Floodplain $765,000 $411,000 $523,000 ($112,000)

Total $ 87,678,000 $ 19,353,000 $ 19,982,000 ($ 629,000)

Council currently endeavours to maintain its assets at a condition rating between 1 and 3, any assets rated 4 or 5 will be assessed for risk and managed through a replacement/renewal program or alternatively disposed of. Current conditions scores have been established through previous inspections and revaluation processes. As such it is imperative that current assigned scores, inspection processes and procedures are reviewed and where necessary adjusted on an annual basis.