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best PAPEr NQ: natasha murray IRNS TRANSPORT C AREVALUATION
CAIRNS REGIONAL COUNCIL – KEY FACTS:
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Area - 1700km2 Population - 160,000 2 million visitors per annum Total asset base - $4.7 billion Transport asset base - $1.5 billion • Road network – 1360km BACKGROUND In accordance with local government accounting standards Council is required to undertake a comprehensive revaluation of its assets on a 5 year cycle. For transport assets, this process has traditionally been contracted to an external consultant. However for the first time in 2014/15 Council undertook the majority of this assessment in-house. PROJECT PLAN The project plan considered staff resourcing, project risks, project schedule and governance. Council’s Internal Audit Committee and the Queensland Audit Office were supportive of the approach. The process involved four basic steps: 1. Asset inventory update; 2. Condition assessment; 3. Review of asset useful life and
remaining life; and 4. Unit rate review and revaluation of the existing asset. PROJECT METHODOLOGY A detailed methodology was developed to ensure that it not only met accounting requirements but also supported day-to- day asset management practices. The methodology manual outlined the processes to be followed for the following asset classes (sample sizes adopted shown in brackets) • • • •
Road wearing course (100%) Road pavement (20%) Kerb and channel (10%) Roundabouts, medians, traffic Islands and LATM’s (10% of each class) • Footpaths (100%). The methodology focused on the standard to which an asset provided its required level of service. The assessment was therefore based on function with little regard given to aesthetics. Where only a sample was assessed a relationship was established between the new condition data and the old data for extrapolation over the full data set. PROJECT SUCCESSES In addition to direct cost savings achieved by delivering this process in-house, there were many other additional benefits that are not easily quantified. These included:
Engineering for Public Works | September 2016
• Level of staff ownership lead to a high degree of confidence in the data captured; • Increased staff motivation and commitment in moving forward; • Improved staff knowledge of Council assets and processes; • Knowledge sharing and relationship building within various teams; • Identification of improvements to current processes to advance asset management practices; • Retention of knowledge within the organisation; and • Innovation in data collection, for example camera’s mounted on street sweepers to record kerb and channel condition. CONCLUSION Overall, conducting the revaluation process in-house was extremely successful, beneficial and rewarding for both the organisation and staff involved. Council aims to continue undertaking future processes this way and will continue building on it through day-to-day asset management practices. Natasha is a Senior Transport Engineer with Cairns Regional Council leading a team of engineers and senior technical officers responsible for all matters in relation to transport and traffic planning and asset management.